Silicon Valley Clean Energy Board of Directors
June 12, 2024

Staff Report – Item 1g
Item 1g: Approve July 2024 Rates Update in Alignment with SVCE’s 4% Budgeted Discount Rate for All Retail Rates
From: Monica Padilla, CEO
Prepared by: Peyton Parks, Energy Services Lead
Kaley Dodson, Energy Services Specialist
Date: 6/12/2024

RECOMMENDATION
Staff requests the Board of Directors (Board) approve a July 2024 rate update to maintain a four percent (4%) discount to all corresponding PG&E rates, established per the discount approved by the Board on December 13, 2023 by the adoption of Resolution 2023-20, Resolution Approving Customer Generation Rates and Additional Fiscal Year 2023-2024 Budget Funding Items.

BACKGROUND
At the December 13, 2023 meeting of the SVCE Board of Directors, the Board adopted a 4% generation rate discount relative to PG&E for calendar year 2024. Following this direction, SVCE staff provided a full accompaniment of final SVCE generation rates for the Board’s approval at the January 10, 2024 meeting.

Since then, PG&E recently amended peak versus off-peak price (POPP) rate differentials for generation components of E-TOU-C and EM-TOU rate schedules. Additionally, the California Public Utilities Commission (CPUC) is set to vote on several proposals from PG&E on June 20, 2024 which may impact PG&E’s generation rates beginning July 1, 2024. The July rate change in PG&E’s generation rates were expected, discussed with the Board, and accounted for in the current fiscal year budget.

ANALYSIS & DISCUSSION
PG&E is expected to publish new rates on June 29, 2024, which will become effective as of July 1, 2024. Staff anticipates a decrease in generation rates, which were incorporated in the budget analysis and discussion provided to the Board in December 2023. Staff will not receive PG&E’s final rates until after CPUC voting on June 20. Once received, SVCE staff will calculate generation rates based on a BOD-directed 4% discount to comparable PG&E generation rates and begin billing customers under these rates starting July 1, 2024. Staff will come back to the Board with these amended rates when the Board reconvenes in August as has been standard practice with other generation rate changes.

STRATEGIC PLAN
Alignment of rates is reflected in SVCE Strategic Plan Goal 12: “Enact and maintain competitive service offerings for SVCE customers that deliver measurable economic and environmental benefits.”

FISCAL IMPACT
The fiscal impact of this rate change relative to the existing budget is likely to be negligible, as this rate change has been modeled and accounted for in the existing FY 23-24 Operating Budget. Staff will present to the Board the full accompaniment of rates at the August 2024 meeting for adoption.

Item 1g
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Staff Report – Item 1h
Item 1h: Executive Committee Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Larry Klein, Executive Committee Chair
Date: 6/12/2024
The Executive Committee met May 24, 2024 with all members present and discussed a recommendation to the SVCE Board of Directors to authorize payments for the California Community Choice Association (CalCCA) and California Community Power (CC Power) membership costs; heard 2025 clean power supply recommendation offerings; received an introduction on the 2025 Strategic Plan; and received information on the Community Energy Resilience program.

CEO Monica Padilla and Zak Liske, Deputy Director of Power Resources, presented a request to the Executive Committee to recommend the SVCE Board authorize payments in the amount of $502,455 to the CalCCA for fiscal year ending 2025 and approve and ratify all such payments made for previous fiscal years; and $712,149 to CC Power for FY ending 2025 and approve and ratify all such payments made for previous fiscal years. CEO Padilla explained authority to approve above $100,000 per fiscal year for these memberships was not explicitly granted when the Board approved SVCE’s membership, and staff is taking a conservative approach to ratifying past payments in addition to upcoming membership fees. The Executive Committee unanimously supported the recommendation.

Kris Van Vactor, Director of Power Resources, presented a request for the Executive Committee to support a recommendation to the Board of Directors to authorize the Chief Executive Officer to approve guidance in seeking carbon-free resources for 2025, specifically if carbon-free resources are not available to adjust the 100% Clean goal for 2025 to ~78% to 85% clean, depending on carbon-free allocations from PG&E. The Executive Committee had a robust discussion, which included suggestions to staff on additional information to research and present at the Board of Directors meeting when considering approval. The Executive Committee unanimously voted to support the following:

1. Continue to seek carbon-free resources within Board parameters approved for 2024 for calendar year 2025

2. If carbon-free resources are not available, adjust 100% Clean goal for 2025 to current position of ~78% to 85% Clean, depending on carbon-free allocations from PG&E

3. For FY 2024-2025 proposed Operating Budget, assume 85% Clean position. Board to consider Budget in September 2024
This item will be considered at the June 12, 2024 Board of Directors meeting.

CEO Padilla presented an overview of the 2025 Strategic Planning process, including review of the Board approved five Strategic Focus Areas for FY 2024, progress to-date and what’s to come, and a summary of staff’s input on the 2025 Strategic Focus Areas which included dropping SFA4: Implement Innovative Financing Solutions and the creation of a new SFA focused on Affordability. The Executive Committee provided comments and feedback, and were in consensus to support the suggested changes for the upcoming fiscal year.

Item 1h

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Agenda Item: 1h Agenda Date: 6/12/2024

Zoe Elizabeth, Deputy Director of Decarbonization Programs and Policy, and Jessica Cornejo, Senior Programs Specialist, presented an information item highlighting SVCE’s Community Resilience Grant program, which provides grants to each agency to invest in capital projects that support municipal and community resilience.

Materials from this meeting can be found on SVCE’s website: SVCE Executive Committee Meeting, May 24, 2024
The next meeting of the Executive Committee will be June 28, 2024 at 10:00 a.m.; materials will be posted no later than 72 hours in advance of the meeting.

Item 1h

Staff Report – Item 1i
Item 1i: Finance and Administration Committee Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Hung Wei, Finance and Administration Committee Chair Date: 6/12/2024
The Finance and Administration Committee met May 13, 2024 with all four committee members present and heard two discussion items from staff: 1) Results of the Stress Test Analyses, and 2) Fiscal Year (FY) 2024-25 Budget Framework.

Amrit Singh, SVCE’s CFO and Director of Administrative Services, provided information on the findings of the stress test analyses, which provided background information that staff will use in developing recommendations for the Board of Directors for reserve levels for next fiscal year and discussed portfolio procurement risks stemming from long-term load growth uncertainty. Staff will be presenting the analyses results to the Board of Directors at the June meeting.

CFO and Director of Administrative Services Singh presented an item outlining the budget framework for FY 24-

25. Information presented included current rate projections (which staff noted are highly uncertain), methodology for setting reserve targets, power supply cost uncertainties, and other cost drivers. This item will also be brought to the Board of Directors at the June meeting.

Materials from this meeting can be found at the following link: SVCE Finance and Administration Committee Meeting, 5/13/24.

The next Finance and Administration Committee meeting is anticipated for August 2024 and will be determined by Finance and Administration Committee member availability; materials will be posted 72 hours before the meeting.

Item 1i
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Staff Report – Item 1j
Item 1j: California Community Power Report
To: Silicon Valley Clean Energy Board of Directors
From: Monica Padilla, CEO
Date: 6/12/2024
Per direction from the SVCE Board on December 9, 2020 for the CEO to provide a report of the ongoing activities of California Community Power (CC Power) after each of its meetings, this is to report CC Power held a regular board meeting on Wednesday, May 15, 2024.

Attached is a summary report from General Manager Alex Morris; materials from the April board meeting can be found here on the CC Power website: CC Power Meeting, 5/15/24 The next meeting of the board will be June 18, 2024 at 1:00 p.m.; meeting materials can be found on the CC Power website: https://cacommunitypower.org/meetings/
ATTACHMENTS:

1. CA Community Power Board Meeting Summary from General Manager Alex Morris, May 15, 2024 Item 1j
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California Community Power
901 H St, Ste 120 PMB 157, Sacramento, CA 95814 | cacommunitypower.org A Joint Powers Agency whose members are:

Central Coast Community Energy | CleanPowerSF | East Bay Community Energy | MCE | Peninsula Clean Energy | Redwood Coast Energy Authority | San José Clean Energy | Silicon Valley Clean Energy | Sonoma Clean Power | Valley Clean Energy
TO: CC Power Board of Directors and Alternates DATE: 5/20/24 FROM: Alex Morris – General Manager
SUBJECT: Report on CC Power Regular Board of Directors Meeting – May 20, 2024 The CC Power Board of Directors held its regularly scheduled meeting on May 20, 2024, via Zoom.

Details on the Board packet, presentation materials, and public comment letters can be found under the Meetings tab at the CC Power website: Meetings and Agendas – ca community power Highlights of the meeting included the following:
• Matters subsequent to posting the Agenda. None.
• Public Comment. None.
• Consent Agenda - The Board approved the following items:
o Minutes of the Regular Board Meeting held on April 24, 2024. • Regular Agenda Items:
o General Manager Report – the Board heard updates on implementation of file-sharing improvements for CC Power member-access, a planned invoice for the Build-Transfer (BTA) Project Phase 2a project, a planned blog to further explain CC Power’s considerations of offshore wind, and CC Power policy operating policy progress and implementations.
o 2024-2025 Recommended Budget Discussion – The Board reviewed and discussed how the CC Power Strategic Plan (2022) as well as member interviews and surveys have informed a 2024-2025 work-plan and related Recommended Budget. Based on Board Discussion, additional changes to the proposed budget will be considered prior to a planned Board vote at the June 2024 Board Mtg. The Recommended Budget reflects anticipated growth in CC Power value-add for members and in core capabilities, as well as resourcing for the four contracts (Long-Duration Storage and Firm Clean Resources) and the BTA Phase 2a project (ongoing). Lastly, the recommended budget includes estimated or expected Phase 2 and Phase 3 work, a.k.a. project work, to better inform members of likely full-year costs. This estimation approach differs from past approaches where estimated new project work was not reflected in the budget, and mid-year ‘cash-calls’ were used outside of budget approval processes to fund new projects.

Item 1j
Attachment 1
2 • Closed Session Items:
o The Board heard updates on CC Power’s contracts, with specific updates and status considerations on one firm-clean resources contract and one long-duration storage contract. No Board action occurred.

Item 1j
Attachment 1

Staff Report – Item 1k
Item 1k: Additional Committee Reports
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Andrea Pizano, Sr. Executive Assistant and Board Clerk Date: 6/12/2024
There are no reports for the Audit Committee and 2024 Legislative Response to Industry Transition Ad Hoc Committee as they have not met since the last report.

The next meeting of the Audit Committee will be scheduled in September; the 2024 Legislative Response to Industry Transition Ad Hoc Committee will meet as needed based on member availability.

Item 1k

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Staff Report – Item 2
Item 2: CEO Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Monica Padilla, CEO
Date: 6/12/2024
REPORT
Staff Updates
Simon Steiner
SVCE welcomed Simon Steiner, Wholesale Energy Market Planner, on 6/3/24. In this role Simon will oversee the management of SVCE’s contracted resources in CAISO’s market and report to Kris Van Vactor, Director of Power Resources. Simon has been working for the past few years at the San Franciso Public Utilities Commission helping to optimize their hydro and co-located assets. Previously, Simon was an advisor at TransnetBW in Germany (the local ISO), where he managed various projects supporting the integration and maturation of resources and markets. Simon has an M.Sc. in Mechanical Engineering & Business Administration with focus in Energy Engineering from RWTH Aachen University, Germany.

Scott Wrigglesworth
Staff is excited to welcome Scott Wrigglesworth to the team as the new Director of Risk Management and Analytics reporting to CFO Amrit Singh. Scott comes to us from one of our key consultants and software providers, Ascend Analytics where he spent six years. At Ascend, Scott was responsible for managing the SVCE contract and provided support in integrating Ascend’s PowerSimm platform into SVCE’s power and risk management operations. At SVCE, Scott will lead the risk management functions and, in collaboration with other departments, the quantitative analytics functions, which include customer rate analyses, portfolio and deal valuations, and custom rate offerings. Scott earned his MBA from the University of Dayton and holds a bachelor’s degree in Global Economics from Cedarville University.

Colton Heath
SVCE welcomed another addition to the Power Resources team on 6/10/24 with Colton Heath, Energy Trading Planner. In this role, Colton will be leading the solicitation of short-term products needed to meet SVCE’s goals and compliance obligations, and will report to Britta Bradshaw, Power Resources Manager. Colton comes to SVCE from SCE where he was an Energy Trader, Sr. Specialist, managing short-term natural gas procurement and interfacing with various other SCE trade floor functions. Colton holds a Bachelor of Arts in Mathematical Economics from Pacific Lutheran University.

Rebecca Dawson
Rebecca Dawson, Decarbonization Data Analyst summer intern, joined SVCE on 6/10/24 and will report to Sangeetha Kumar, SVCE Data Engineer. Rebecca is a senior at the University of California at Berkeley studying Data Science with an emphasis in Applied Mathematics and Modeling. Rebecca brings project management, organizational, and leadership skills through her involvement with student organizations. She also brings strong quantitative skills in data science, statistics, and machine learning. At SVCE, Rebecca will be working on updating our SEVI scores and rethinking equity metrics we may want to track as part of putting our DEIB framework into practice.

Item 2
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Agenda Item: 2 Agenda Date: 6/12/2024

Jesse Park
On May 20, 2024, SVCE lost a colleague and friend Jesse Park to an untimely death. Jesse started with SVCE in April 2023 and worked in the Power Resources Department supporting settlements. Jesse was more than willing to work beyond his role and pitch in where needed utilizing his decades of energy industry experience. In the short time that Jesse was with SVCE he managed to make connections throughout the organization. He enjoyed mentoring some of his younger teammates and was a member of the SVCE Connections Team. His joyful laugh and easy demeanor made him a pleasure to work with always. He will be missed by all who knew him at SVCE.

Personnel Officer Update
SVCE welcomed four new employees this month, as noted above. We are currently interviewing for the positions of Deputy Board Clerk/Administrative Assistant and Senior Quantitative Analyst, which were added under the Personnel Authority.

Job descriptions and applications can be found on SVCE’s website: Current Job Openings CCCFA Award
The California Community Choice Financing Authority (CCCFA), of which SVCE is a founding member, received international recognition as a recipient of a Climate Bond Award for Largest US Green Municipal Issuer of 2023.

CCCFA was established in 2021 with the goal to reduce the cost of power purchases for member community choice aggregators (CCAs) through pre-payment structures. CCCFA has to date issued nearly $10 billion in prepayment bonds on behalf of CCAs, saving participating community choice ratepayers roughly $60 million annually or nearly $2 billion over the life of prepaid energy contracts. SVCE has issued bonds with total proceeds of about $2.7 billion on its behalf, saving SVCE customers about $14.3 million annually.

Climate Night with the San Jose Giants, 6/13
SVCE is welcoming the summer season with the minor league baseball team San Jose Giants at our first-ever Climate Night at Excite Ballpark on Thursday, 6/13. Before the game, SVCE will host a resource fair with community partners giveaways, and family-friendly activities. The event is open to the public; please let Andrea know if you’re interested in attending and we will reserve a ticket for you.

SVCE Policy Review Project
Staff is working together to streamline and mature SVCE’s policies. These changes are intended to maintain appropriate oversight by the Board while improving operational capabilities and accessibility of policies for staff.

We are planning to: (1) update the policies where needed; (2) streamline and consolidate the policies where possible; and (3) move a portion of the policies into standards that can be maintained and revised by staff. These changes are expected to make SVCE’s policies and staff guidance stronger and easier to follow and give SVCE an opportunity to develop standards that contain commercially sensitive information without disclosing them publicly.

We are planning to accomplish this work in two phases. Both will start at the Executive Committee and make recommendations to the Board that will be put on consent. Phase 1 will go to the Executive Committee in September and the Board in October and will include the recommended policies to convert to staff-level standards. Phase 2 will go to the Executive Committee in November and the Board in December and include the necessary revisions to the remaining policies. We will also include a process for continuous updates to and trainings on the policies. We are looking forward to discussing this with the Executive Committee and making these important improvements to SVCE’s policies.

EmPower Silicon Valley Short-Film Competition
Silicon Valley Clean Energy awarded $18,000 in scholarships to local students for their original, impactful, and creative video submissions to the annual EmPower Silicon Valley competition. This year, nine middle and high school students were recognized for their videos promoting the benefits of clean electric technology. Students submitted videos including catchy pop song remixes about heat pump water heaters, compelling advertisements for EV charging equipment, and a presidential debate advocating for induction cooktops as the superior cooking method. All winning films will be announced in an SVCE press release and posted to the website.

Item 2
Agenda Item: 2 Agenda Date: 6/12/2024

Clean Energy Update
The SVCE Board of Directors voted at the February 10, 2021 meeting to authorize the Chief Executive Officer (CEO) to execute the United States Department of Energy (DOE) Western Area Power Administration (WAPA), Sierra Nevada Region Contract (“Western Contract”) for Electric Service Base Resource (“Base Resource or WBR”) with SVCE and any necessary ancillary agreements and documents.

A key feature of the Base Resource contract is the ability to opt-out of the agreement on or before June 30, 2024 ahead of delivery term start on January 1, 2025. Staff performed analysis on whether to opt-out of the Base Resource contract and determined it prudent to not opt-out and to take SVCE’s share of the hydroelectric resource given expected long-term value. The contract has a 30-year term and will help SVCE make progress toward SB100 goals of getting to 100% clean energy by 2045.

Attachment 1 provides an update of SVCE’s clean energy efforts through long-term power purchase agreements.

Decarbonization Programs and Policy Updates
The Multifamily Retrofits program went live on May 31, 2024. Staff worked with stakeholders in the housing community earlier this year to gather input that informed this program’s design. This new full-service offering will help existing affordable multifamily properties transition to all-electric construction. Participants can receive comprehensive assessments, energy- and water-saving appliances, and electric vehicle charging stations at no-cost. Our team of energy experts led by the Association for Energy Affordability will provide participants with customized guidance and start-to-finish installation services. Property owners can submit their interest and learn more at svcleanenergy.org/multifamily-retrofits.

Please see Attachment 2 for a quarterly programs update.

Energy Services & Community Relations Updates
We are excited to share that the Masten Fire Station's solar battery and storage project is nearing completion. To celebrate the SVCE grant-funded project, SVCE is jointly hosting a ribbon cutting with the South Santa Clara County Fire District on July 10th, 4:30 pm- 6 pm at the Masten Fire Station (10810 No Name Uno, Gilroy, CA 95020). This event is open to the community with food and dessert provided for attendees.

The project received $100,000 in funding through the Silicon Valley Clean Energy Community Resilience Grant.

With these upgraded electric technologies, the Masten Fire Station is no longer reliant on polluting diesel standby generators and is better equipped to serve the community in times of crisis or emergency.

Please see Attachment 3 for a recap of our community engagement and marketing efforts this past month.

Regulatory & Legislative Update
On the regulatory front, SVCE staff intends to begin coverage of a new proceeding opened by the CPUC to address safety, reliability and resiliency of the distribution system. Additionally, staff expects a decision in the IRP proceeding regarding use of the Central Procurement Entity prior to SVCE’s August board meeting. It appears probable that this will include a procurement order for offshore wind. Staff has provided further regulatory updates in the board package.

On the legislative side, AB 1999 (Irwin) that would have repealed Income Graduated Fixed Charge in 2028 has died. The CPUC adopted its proposed decision on Income Graduated Fixed Charge in May, and PG&E will roll out this change to our customers in 2026.

Attachment 4 provides highlights of key regulatory and legislative activities.

Look Ahead Update
Staff continues to plan for Board and committee meetings through the end of the year. To provide the Board with a preview of what’s ahead for the Board from August 2024 through November 2024, please refer to Attachment 5.

Item 2
Agenda Item: 2 Agenda Date: 6/12/2024

External Presentations & Relevant Meetings Attended by CEO - 05/16/24 Participated in CalCCA Monthly board meeting; - 5/22/24, Participated in CC Power Board Meeting (meeting report included on Consent Calendar) - 6/02/24, attended NosTerra’s The Future of California Grid as a panelist - 6/06/24, attended TURN’s 50th Anniversary celebration

ATTACHMENTS

1. Clean Power Update, June 2024

2. Decarbonization Programs Quarterly Report, FY24 Q2 Milestones

3. Energy Services & Community Relations Update, June 2024

4. Regulatory and Legislative Update, June 2024

5. Agenda Look Ahead, August 2024 – November 2024
Item 2
Agenda Item: 2 Agenda Date: 6/12/2024

Exhibit 1 - CEO Agreements Executed
The following agreements have been executed by the CEO, consistent with the authority delegated by the Board:
1) Thompson Coburn, LLP, Agreement: Representation before the CAISO Corp and the FERC on related matters, not to exceed $25,000
2) Wood Mackenzie Subscription, Agreement: Subscription, not to exceed $18,532, 1/19/24 – 1/18/25 3) San Jose Conservation Corps, Amendment: Mobile Demonstration Home, not to exceed $241,466.76, initial contract approved at the June 14, 2023 Board of Directors meeting 4) Hall Energy Law, Agreement: Legal Services, not to exceed $180,00, 7/1/24 – indefinitely. Authority approved at the May 8, 2024 Board of Directors meeting. 5) Make Media Studios, Amendment: Photography and Videography Services, not to exceed $290,000, 10/1/22 – 9/30/26.
6) Rock Rabbit, Inc., Agreement: Vendor will partner with SVCE to deploy solution to enable SVCE customers and local installers to easily find, stack, and claim incentives from SVCE and non-SVCE sources for home electrification projects, not to exceed $190,000, 5/17/24 – 11/16/25. Authority approved at the May 8, 2024 Board of Directors meeting
7) CLEAResult Consulting, Agreement: Commercial and Industrial Decarbonization Strategic Energy Management Program Implementation Services, not to exceed $2,489,087, 5/18/24 – 12/31/27. Authority approved at the May 8, 2024 Board of Directors meeting. 8) SMUD, Task Order: Electric Vehicle (EV) Rebate Program Implementation, not to exceed $227,815, 12/20/23 – 4/31/26
9) Strategic Energy Innovations, Agreement: Climate Corps Fellow Hosting Services, not to exceed $216, 750, 9/2/24 – 6/30/25. Authority approved at the May 8, 2024 Board of Directors meeting. 10)Meyers & Nave, Agreement: Litigation legal services, not to exceed $750,000 Item 2

Exhibit 2 - CEO Power Supply Agreements Executed
Counterparty Name Execution/Effective
Date Transaction Type Product Start Date End Date Notional Value Edsan 4/26/2024 Purchase Resource Adequacy 5/1/2024 5/31/2024 $44,000 Calpine 5/22/2024 Purchase Resource Adequacy 6/1/2024 6/30/2024 $64,000 These agreements are included in the Board packet as Appendix A.

Item 2
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• Subtitle
New SV Clean Energy
PowerPoint Template
Item 2
Attachment 1

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CEO Report
Clean Power Update
SVCE Board Meeting
June 12, 2024
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Item 2
Attachment 1
CD Clean Long-term Power Agreements
SACRAMENTO Q g GEOTHERMAL

BATTERY STORAGE
X SOLAR + STORAGE
X. SOLAR POWER
• WIND GENERATION
$3.7B+ in commitments
21 PPAs signed
18 new build projects
896 MW of Renewable Power
1,845 MWh of Battery Storage
8 Projects now delivering to SVCE:

COSO geothermal - January 2022
Slate Solar + Storage - January 2022
Casa Diablo geothermal-September 2022
Mountain View wind - July 2022
Rabbitbrush Solar + Storage -October 2022
Terra-Gen Wind - January 2023
Yellow Pine Solar + Storage - July 2023
Victory Pass Solar + Storage -March 2024
Seller Project Name Technology Generation MW
Storage
MW Storage MWh
Approximate % of Annual
load in 2030
Term
(years)
Lifetime Not to
Exceed Authority
(MM$)
SVCE Board
Approval Status
1 MN8 Slate Solar + Storage 93 46.5 186 6.2% 17 $198 Oct-18 Online 2 Ormat Casa Diablo Geothermal 7 1.4% 10 $43 Feb-20 Online 3 Atlantica Coso Geothermal 43.8 6.1% 15 $331 Mar-20 Online 4 Leeward Rabbitbrush Solar + Storage 40 8 20 2.9% 15 $64 Apr-20 Online 5 NextEra Yellow Pine Solar + Storage 50 26 104 3.8% 20 $128 May-20 Online 6 Avantus Aratina Solar + Storage 80 50 200 6.3% 20 $368 Jun-20 Pre-construction 7 174 Power
Global Atlas Solar 50 3.6% 10 $32 Jan-21 Pre-construction 8 SB Energy Angela Solar + Storage 20 10 40 1.4% 15 $35 Mar-21 Pre-construction 9 AES Mountain View Wind 33.3 3.1% 20 $128 Apr-21 Online 10 Origis San Luis West Solar + Storage 62.5 15.625 62.5 3.9% 15 $132 Apr-21 Pre-construction 11 Clearway Victory Pass Solar + Storage 100 25 100 7.6% 15 $173 May-21 Online 12 Terra-Gen Cameron Crest Wind 77.7 4.6% 15 $150 May-21 Online 13 Rev Renewables Tumbleweed
Long Duration
Storage 15.9375 127.5 15 $100 Feb-22 Construction
14 Onward Goal Line
Long Duration
Storage 14.2 113.6 15 $100 Mar-22 Pre-construction
15 Ormat Geothermal Portfolio Geothermal 16.75 4.2% 20 $256 Jun-22 Pre-construction 16 OME Fish Lake Geothermal 1.82 0.4% 20 $30 Jun-22 Pre-construction 17 AES Baldy Mesa (RA-only) Storage 0 75 300 10 $81 Sep-22 Construction 18 MRP Hanford Thermal + BESS 99.4 131.4 131.4 12 $280 Apr-23 Construction 19 NextEra Grace Solar 120 0 8.3% 15 $286 Aug-23 Pre-construction 20 NextEra Yellow Pine III Storage 0 115 460 15 $420 Aug-23 Pre-construction 21 Pattern SunZia Wind 100 0 0 7.6% 15 $361 Nov-23 Construction Item 2
Attachment 1
O SVCE Long-Term Clean Energy Contracts
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Item 2
Attachment 1
Clean Energy ResourcesOnline Progress
as of 6/5/2024
2024 - H1 •Victory Pass Solar + Storage: Online and Operating in CAISO Market •Baldy Mesa (RA-Only Storage): Operating in CAISO Market 2024 -H2 Hanford BESS on Peaker: Construction mode
2025 - H1 •Goal Line Long Duration Storage: Pre-construction •Aratina Solar + Storage: Pre-construction - delayed
•San Luis West Solar + Storage: Pre-construction - delayed Atlas Solar: Pre-construction - delayed
Yellow Pine III Storage: Pre-construction
Angela Solar + Storage: Pre-construction - delayed
Tumbleweed Long Duration Storage: Construction mode
Fish Lake Geothermal: Pre-construction
Ormat Geothermal Portfolio: Pre-construction
SunZia Wind: Construction mode
Grace Solar: Pre-construction
2025 -H2
2026+
Item 2
Attachment 1
SVCE is Making Significant Progress Toward
Meeting Long-Term RPSRequirements
Item 2
Attachment 1
174contractors
complete
FutureFit
training

DECARBONIZATION PROGRAMS
FY24 Q2 Milestones
Quarterly Report
100
customers use Go
Electric Concierge
service
826
completed
electrification
projects for
FutureFit Homes
Item 2
Attachment 2
DPP Quarterly Update

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Name Budget Potential Impact Cumulative Impact
To-Date Last Quarter (Update) Next Quarter (Target)
Electrification Rate
Discount $9.5M 5,000 customers enrolled 1,600 enrolled
Sent custom savings emails
to customers, and revising
tracking system setup
Explore adding as an easy
step in other programs we
offer. Enroll 2K customers
CHIIP, including
Affordable Housing
EVI Incentives
$8.9M
25 MUDs with EVI
4,000 L1/L2 chargers at
affordable housing
21 reservations
(180 ports)
6 completed
(27 L2 and 32 L1)
Processed 3 new MUD claims
for 21 additional EV ports.

Expand enrollment, focus
on more affordable housing
developers
FutureFit Homes -
Residential
Incentives
$7.05M 2,800 homes fully/partially
electrified
826 homes
fully/partially
electrified
Continued to see strong
uptake with ~$1M in claims
Integrate program into
Salesforce and develop
project/equipment list as a
reference on the website
CALeVIP 1.0 $6M 85 DCFC installed
1,100 L2 installed
10 DCFC installed
227 L2 installed
Monitored installation
progress. Tracked dropouts
and investigated reason.

Continue making payments
to DCFC and L2 projects as
they are completed.

Community Energy
Resilience $5.15M 13 agencies completeprojects
3 agencies
completed projects
Sunnyvale and Cupertino
used grants to install mobile,
off-grid, EV chargers
throughout the jurisdictions
Monitor and reimburse
agencies as projects move
to completion
Decarbonization
Demonstration
Grants
$3.2M 8 local public facing
electric projects 1 project complete
Staff developed grant
resources in preparation of
grant closeout (Dec 2024)
Support grantee
community engagement
efforts
Permit
Modernization $3.2M
13 member agencies
improve electrification
permitting
Data gathered for all
13 agencies. Program
just began rolling out
Launched and began
outreach to member
agencies
Prepare draft action plan
for each agency’s input.

Work with staff to fine tune
actions and connect actions
to SVCE resources.

C&I
Decarbonization
Program
$2.5M
7,500 metric tons of CO2e
removed through carbon
saving measures
9 customer leads, 1
pilot participant
(evaluating 13
projects)
Completed solicitation for
fully funded program.

Contract expected at May 8
Board meeting
Program to launch in early
June, recruit 3-6 new C&I
participants
Customer Resource
Center (eHub) $2.1M 1.5M email opens350K unique web visits 517K email opens,
333K web visits,
312 induction
cooktop rebates
Sent emails about induction
cooktops, and posted social
media posts
700K email opens,
345K web visits,
Launch Yard Care
promotion
Existing Building
Policy Experiment $1.9M
Spur action on building
electrification and reduce
building gas combustion
Needs assessment
for all 13 agencies
Completed conversations
with all 13 agency directors
and staff to understand
priorities
Prepare draft action plan
for each agency for staff
input; fine tune actions and
utilize SVCE resources

PROGRAMS PORTFOLIO
Active Programs
See Glossary for program descriptions. Title links to program homepage (if available).

Quarterly Report
View our active rebates here. 1
FY24 Q2
Item 2
Attachment 2
DPP Quarterly Update
Name Budget Potential Impact Cumulative Impact
To-Date Last Quarter (Update) Next Quarter (Target)
FutureFit
Fundamentals
Contractor
Training
$1.7M
300 contractors
trained
500 graduate
incentives
174 contractors
completed training
Continued online video
trainings, 36 completions since
last quarter
Increase program marketing
Go Electric
Advisor $892K
3,600 customers use
hotline, 1,200 use tech
assistance, 350 use
electrification plans
100 customers use
service
(8 electrification
plans done)
User testing, website updates,
and soft launched service
Marketing kicking off and
aiming for 200 new contacts
Priority Zone DC
Fast Charger
(PZDCFC) 2.0
$875K 10 DCFC installations
near MUD hotspots
8 of 10 ports are
live now (3 of 4
sites)
Received 2 of 3 remaining
claims from sites (currently
under review). Tracking
progress of final project site.

Finalize all sites; begin nearby
resident outreach.

FutureFit SMB
Incentives $750K 20-30 SMBs electrified
3 SMBs
fully/partially
electrified
Released non-profit rebates;
onboarded fellow to lead SMB
outreach; released induction
rebates
Begin visiting businesses in our
communities, increase program
awareness, create non-profit
testimonial video
FutureFit Assist $725K
60 assessments
36 projects done
250 ports
54 applications
Launched new marketing and
outreach campaigns to increase
participation; enrolled 4 new
properties
Expand enrollment
GridShift EV
Charging $850K
Bill/emissions savings
and load shifting
capacity
1,354 EVs
enrolled
37 charger
rebates
Explored REDWDS dynamic
rates pilot with ev.energy.

Launched referral program.

Finalize REDWDS scope.

Expand enrollment
Reach Codes

2.0 $600K
Require all new
buildings to be
emissions-free
13 agencies adopt
electrification
ordinances
Monitor and support agencies
as the Berkeley legal case
evolved (BAAQMD)
Present alternative reach codes
to member agencies and
provide legal/technical support
SV Building
Electrification
Stronger
Together
$600K
Educate stakeholders
about building
electrification
30 new
stakeholders
engaged to date
Conducted focus group for
direct install programs,
reaching a new audience of
renters and renter advocates
Launch engagement incentive
program to invite new feedback
from members of workforce,
housing, and LMI groups on
SVCE programs
Programs
Marketing Fund $500K 2,500 new programenrollments
Setup systems to
track expenses and
enrollments
Setup tracking systems,
completed first enrollment
forecast
Complete digital tracking setup,
analyze first few months of
expense/enrollment data
Decarbonization
Engagement
Grants
$442K
5 communities engage
residents on climate
action topics
In progress
Mountain View finalizing
Community Needs Assessment.

The report “Existing Building
Electrification: Resources and
Messaging” will be done July
Monitor and reimburse agencies
as projects move to completion

PROGRAMS PORTFOLIO
Active Programs
View our active rebates here. 2
FY24 Q2
Item 2
Attachment 2
©
DPP Quarterly Update

SILICONVALLEY

CLEAN ENERGY
1 Name Budget Potential Impact Cumulative
Impact To-Date Last Quarter (Update) Next Quarter (Target) Natural Gas
Phaseout
Feasibility
$300K
Complete 2 whitepapers
to inform local, regional,
and statewide policies
External
stakeholder
meetings on 2
whitepaper topics
BOD approval of contract, kick-off technical solutions analysis, first round of CCA engagement
Complete additional analysis
tasks, host second round of
CCA engagement
Fleet
Electrification $300K
Complete fleet
electrification and
charger installation
planning for 10 fleets
8 fleets in
progress
The following agencies are now
participants: Cupertino, Gilroy,
Los Altos, Los Gatos, Morgan
Hill, Morgan Hill Unified School
District, Mountain View
Whisman School District,
Purissima Hills Water District
2-3 agencies anticipate
completing the planning
process
EM&V $250K
Evaluate 80% of SVCE
programs within 1 year
of launch
2 reports
completed, 2 in
progress
Completed Data Hive EM&V
final report and customer
awareness survey final report.

Close 1 report, stay on track to
complete 2 more by Q4
SV
Transportation
Electrification
Clearinghouse
$150K Create cohort to enable
equitable electrification. In progress Semi-launched program, metwith 7 stakeholders Continue to meet with key
stakeholders biannually to
maintain relationships. Original
program goals have matured
into formal initiatives.

Lights On
Silicon Valley
Power
Supply
Budget
750 SFH and 5 MF
projects
657 enrolled SFH
at outset of
delivery period
Capacity from behind-the-meter solar and storage
projects was delivered to SVCE.

Continued delivery and
adjustments to dispatch as
needed.

PROGRAMS PORTFOLIO
Active Programs
View our active rebates here. 3
FY24 Q2
Item 2
Attachment 2
DPP Quarterly Update

SILICON VALLEY

CLEAN ENERGY
Name Budget Potential Impact Last Quarter (Update) Next Quarter (Target) Single-family
Installation $14M
600 single-family homes
electrified; 700 emergency water
heater replacements
Contract with Franklin Energy
approved at March 2024 BOD
Meeting
Continue program design with PCE
and launch program by FY24 Q4 (Jul-Sep)
Multifamily Direct
Install (TE and BE) $12.5M 300 to 1,000 MF AH unitselectrified Hosted 2 stakeholder meetings with
20 attendees to gather feedback on
initial program design
Continue program design and launch
program by FY24 Q3 (Apr-Jun)
Resiliency,
Engagement, and
Decarbonization
(RED) Grants
$10M
Fund resiliency, engagement, and
decarbonization projects for
Member Agencies, schools,
community groups, and non-profits
Staff created initial design for the
new grant program
Conduct community engagement on
program design for the grants
Tariffed On Bill
(TOB) Financing $5.2M 200 customers financeelectrification Continued supporting CPUC TOB
Working Group
Submit joint proposal to CPUC &
contract for pilot
Innovation Onramp $2.4M
1-2 pilot projects per year that
advance electrification programs
and strategies
Selected vendor for customer
incentive and contractor selection
pilot program
Execute contract with vendor. Scope
next cycle and release call for
proposals.

Neighborhood
Electrification $1.5M
Test model to electrify buildings
within a community. Electrify 15
homes and set plans for 24 homes.

Began program design, identified
geography and three approaches for
pilot scope
Complete pilot design and identify key
partners to execute project
EV Education &
Incentives $1.5M 600 EV purchase incentives forincome qualified customers Identified implementer and initiated
stakeholder engagement
Develop dealer network and integrate
stakeholder feedback into program
design to prepare for Fall launch
Workforce
Development
Partnerships
$1.3M
Increase capacity to coordinate
and train skilled workforce for
residential electrification jobs
Secured funding for program in
March
Identify initiatives that recruit and
train residential electrification
contractors and develop partnership
structure
Demand Flexibility
and Virtual Power
Plants
$500K
Connectivity to flexible, customer-sided loads to enable bill savings, avoided generation and capacity
costs, reliability and carbon
benefits
Collaborated with PG&E on
development of RTP pilots,
regulatory and legislative
engagement, grant evaluations
Confirm SVCE participation in PG&E
pilots and high level program design,
pursue grant application submission
w/joint CCAs, SVCE demand flexibility
road map
E-Bikes $500K 450 e-bikes Secured funding for program in March
Begin program design for launch in
2024
Portable Heat
Pumps $500K 100 portable heat pumps Secured funding for program inMarch Begin program design for launch in
2024

PROGRAMS PORTFOLIO
Planning
View our active rebates here. 4
FY24 Q2
Item 2
Attachment 2
DPP Quarterly Update

SILICON VALLEY

CLEAN ENERGY
$0.00
$500.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
10/2
12/2
2/23
4/23
6/23
8/23
10/23
12/23
2/24
Rebates claimed:

Total $ Funds Reserved (in 000s)
0 10 20 30 40
Commercial business
Government
Multifamily
School/Nonprofit
Incentive program for L1 and L2 EV charging
infrastructure at multifamily properties
0 100 200 300 400 500
HPWH

HP HVAC
Panel Upgrades
Pre-wiring
Meter Removals
Funds Reserved:

Funds Claimed:

Goal:

FutureFit Homes
Provide incentives to residents for electric heat
pump water heaters (HPWH), heat pump HVAC
systems, service panel upgrades, and pre-wiring
upgrades to replace gas appliances.

Future Fit Assist
Assistance in site assessment, preliminary
design, and applying to rebates for charging at
multifamily housing and small and medium
workplace properties.

Charging Installation
Incentive Program (CHIIP)
Number of Claims
PROGRAMS HIGHLIGHTS FY24 Q2
5 $1.4M
$2.1M
$763K
35 Sites, 150 ports
Rebates reserved:
= 5 Installed EVSE Ports
Total $ Funds Claimed (in 000s)
Cumulative Applications
Completed Assessments
$212K
Item 2
Attachment 2
DPP Quarterly Update

SILICON VALLEY

CLEAN ENERGY
TO&>0W
EWEWEW
CALeVIP

0.000

1.000

2.000

3.000

4.000

5.000

6.000
Level 2 DCFC
0 50
100
150
200
250
300
1 /21
1/23/25/2
7/29/2
1 /2
1/23
3/23
5/23
7/23
9/23
1 /23
1/24
3/24
5/24
Reserved
Provide incentives for electric vehicle (EV) chargers
as part of a regional program.
= 25 Level 2 Installations
300 Participants Complete
the Course (Phase 2)
Goal:

Funding: $1.5M
Completions
FutureFit Fundamentals
Provide financial relief to contractors by
expanding their knowledge of electrification
technologies.
1K Level 2 + 85 DC Fast
Chargers by 2023
Goal:

Funding: $11.58M
= 10 Participants Complete Course
Funds Issued = 5 DCFC Installations
174
Remaining Funds
Registrations
294
$4.2M
$700K $1.1M
$1.1M
$3.4M
6 PROGRAMS HIGHLIGHTS FY24 Q2
Item 2
Attachment 2
DPP Quarterly Update
**********
**********
**********
**********
S
•fir
0 200
400
600
800
1000
1200
1400
1/23/25/2
7/29/2
1 /2
1/23
3/23
5/23
7/23
9/23
4/24
0 50,000
100,000
150,000
200,000
250,000
300,000
350,000
9/23
10/23
1 /23
12/23
1/24
2/24
3/24
GridShift EV Charging
Managed EV charging app that optimizes charging
to reduce associated costs and emissions.

Charger Rebates Issued: 37
Number of Enrolled EVs
1,354
Rebate Goal: $30K
Goal: 120 EV Chargers
eHub Report
Online customer resource center to enable
engagement, education and action related to clean
electricity, EVs and home electrification.
= 1 email campaign completed
333,291
29,182
Unique Visits Return Visits
FY 22-23
7 PROGRAMS HIGHLIGHTS FY24 Q2
Website Visit Goal:

Reach 350K Unique Visitors
Conduct 6 email campaigns
Email Goal:

Item 2
Attachment 2
DPP Quarterly Update

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Built Environment
Community Energy Resilience: Resources (grants) and tools for member agencies to increase individual and collective capacity to adapt to future power outages.

Electric Showcase Awards 2.0: Award program to recognize residential, commercial, and non-profits who are early adopters of existing building electrification.

Decarbonization Demonstration Grants: Grants to encourage member agencies and other key groups an opportunity to electrify their facilities. Focus on projects with public visibility for education/awareness purposes.

Decarbonization Engagement Grants: Grants for member agencies and other key groups to work on smaller electrification engagement initiatives to engage their communities.

Electrification Rate Discount: Custom rate to promote building electrification.

Existing Building Policy Experimentation: Assess and support potential policy levers that member agencies can explore to mitigate emissions from existing buildings.

Feasibility Assessment of Natural Gas Phase Out by 2045: Feasibility study to identify technical, legal, and economic barriers and opportunities for phasing out natural gas service by 2045 in SVCE's service territory.

FutureFit Fundamentals Contractor Training: Training and financial incentive program for contractors to expand their knowledge and installation of electrification technologies.

FutureFit Homes - Concierge: Comprehensive one-on-one phone or web assistance to SVCE customers to assist them in applying for electrification incentives, technical assistance, or developing a whole-home electrification plan.

FutureFit Homes - Residential Incentives: Incentives for various building electrification technologies for single- and small multi-family residential customers. Includes major appliances as well as eventual gas meter removal.

FutureFit Homes and Buildings - C&I Incentives: Incentives for demonstration projects at a handful of small and medium business properties.

Multifamily BE Direct Install: Comprehensive building electrification retrofits with a direct installer for multifamily affordable housing sites.

Permit Modernization: Benchmark and streamline member agency permitting and inspection processes to identify barriers and opportunities to electrification.

Reach Codes 2.0: Provide model building energy codes supportive of all-electric design and EV infrastructure to member agencies along with consultant support. 8 GLOSSARY FY24 Q2
Item 2
Attachment 2
©
DPP Quarterly Update

SILICONVALLEY

CLEAN ENERGY
CALeVIP 1.0: Incentives for L2 and DCFC publicly-accessible EV chargers funded by California Energy Commission and SVCE as part of a regional collaboration.

CHIIP: Incentive program for L1 and L2 EV charging at hard-to-reach multifamily properties.

Fleet Electrification Program: Competitive application for SVCE’s fleet electrification planning support and funding for site upgrades targeting a broad set of fleet types.

FutureFit Assist: Technical assistance for preliminary site design and pertinent rebates for charging at multifamily housing and small and medium workplace properties.

Multifamily TE Direct Install: Comprehensive transportation electrification retrofits with a direct installer for multifamily affordable housing sites.

Priority Zone DC Fast Charger (PZDCFC) 2.0: Competitive grant application for DCFC installations in “priority zones” that support designated multifamily housing clusters.

SVTEC: Regular regional stakeholder meetings focused on information sharing, solving critical issues, and attracting external funding to the SVCE community in support of EV infrastructure deployment.

GLOSSARY
Lights On Silicon Valley: Provide incentives for enrolling solar and battery systems in the SVCE grid services program.

Medical Battery Program: Pilot program to deploy ~50 portable batteries to qualified customers who rely on power for medical equipment.

Customer Resource Center (eHub): Online customer resource center and marketplace to enable engagement, education, and action related to clean electricity, EVs, and home electrification.

Mobility
Power Supply
Education & Outreach
Built Environment
SVBEST: Regular regional stakeholder convenings to coordinate program alignment across building decarbonization workstreams.

Tariffed On Bill (TOB) Financing: Equitable financing pilot program for electrification for low-moderate income residents focusing cost recovery through on-bill charges that are lower than bill savings.

GridShift EV Charging: Managed EV charging phone app that optimizes charging to reduce associated costs and emissions. Includes incentives for reducing grid peak demand.

Grid Integration
9 FY24 Q2
Item 2
Attachment 2
©
DPP Quarterly Update

SILICONVALLEY

CLEAN ENERGY
1 Energy Services & Community
Relations
June 2024 Updates
Item 2
Attachment 3
ESCR Update, June 2024
2 1. Outreach Events & Sponsorships
Date Sponsorship/Event Location
6/5/2024 –
6/6/2024
Inaugural CalMatters Ideas Festival
Sponsorship and staff attendance
Sheraton Grand Sacramento Hotel
1230 J St
Sacramento, CA 95814
6/8/2024 Saratoga Blossom Festival
Tabling
Heritage Orchard & Civic Center
13777 Fruitvale Ave
Saratoga, CA 95070
6/13/2024 SJ Giants Climate Night with SVCE
Gates open at 5:30 p.m.

Sponsorship, staff outing, tabling
Excite Ballpark
588 E Alma Ave
San Jose, CA 95112
6/15/2024 Milpitas Juneteenth – Unity In Community
11 a.m. – 5 p.m.

Sponsorship & tabling
Sunnyhills Park
Cortez St & Coelho St, 400 Roger St
Milpitas, CA 95035
6/21/2024 SVLG Sustainable Growth Summit
Time TBA
Sponsorship
Oracle
350 Oracle Pkwy
Redwood City, CA 94065
7/3/2024 -
7/4/2024
Morgan Hill Freedom Fest
Sponsorship
Downtown Morgan Hill
Morgan Hill, CA 95038
Item 2
Attachment 3
ESCR Update, June 2024
3 Participation Rate
Overall Participation
Rate
Residential 96.11%

96.15%
Commercial 96.56%

2. Customer Participation
Item 2
Attachment 3
ESCR Update, June 2024

SILICON VALLEY

CLEAN ENERGY
4 3. EmPowerSV Competition
Four grand prizes of $3,000 each awarded to videos that captured the core of each prompt with exceptional editing and creative messaging:

Presidential Induction Award:

Clean Cooking 2.0 by
Reena Boddukuri from Prospect High
School
Heat Pump Hit Award:

SVCE Short Music Video Entry: Heat
Pumps by Jeremy Brosnan from Saint
Francis High School
Iconic Commercial Award:

EV Chargers: The Pulse of the
Future by Jyothiswaroop Makala from
Prospect High School
Nobel Technology Award:

Heat Pump Water Heater Parody by
Elspeth & Audrey Luu from Monta Vista
High School
Item 2
Attachment 3
ESCR Update, June 2024
PARODYOFED SHEERAN’S
“PERFECT”
By Audrey and ElspethLuu
5 3. EmPowerSV Competition
Three Creative Presentation Awards for $2,000 each to videos from any prompt that demonstrated strong visions of a clean energy future and/or creative communications:

Creative Presentation Award:

Got Charge? EmPowerSV Student
Video by Maple Fan and Clarabelle Wang
from Cupertino High School
Creative Presentation Award:

Clean Energy Empowers the Future by
Ramya Makala from Prospect High School
Creative Presentation Award:

Go Green - Starting With EV Chargers by
Sanvi Bharadwaj from Cupertino Middle
School
Item 2
Attachment 3
ESCR Update, June 2024
6 July 10th, 4:30 – 6 p.m. RSVP using QR code or at svce.info/MastenStation

4. South County Fire Station Ribbon Cutting
The project:
- Received $100,000 in SVCE grant funding
- Installed solar panels and a battery backup
at a critical facility, the Masten Fire Station
(serving all of South County)
Item 2
Attachment 3
ESCR Update, June 2024
MASTEN HRt$ RibonCutt

SILICON VALLEY

CLEAN ENERGY
7 5. Social Media: May Highlights
We made 61 posts across social media platforms. Top posts are highlighted:

Yardcare Rebate
Promotion
Victory Pass Solar
Storage Launch
Earth Month Recap Reel
Environmental Literacy
Summit
Item 2
Attachment 3
ESCR Update, June 2024
Clean. Quiet.

Powerful
Transform your landscaping
experience with emission-free, quiet, low-maintenance
electric equipment.

SILICON VALLEY

CLEAN ENERGY
Visit appliances.svcleanenergy.org >
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ENVIRONMENTAL LITERACY SUMMIT

SILCON VALI CLEAN ENER,
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SILICON VALLEY VL/ CLEAN ENERGY
8 To provide easier access to updates for customer programs, community events and marketing activities, these quarterly board reports are now available on the Member Agency Resources webpage. svcleanenergy.org/member-agencies/#program-updates

6. Programs Updates Now Online
Item 2
Attachment 3
ESCR Update, June 2024
Additional Information
Grant Funding Local Policies Working Groups Impact Reports Program Updates Quarterly Program Reports
A Q1 2024 Programs Update
A Q1 2024 Energy Services & Community
Relations Update
9 The most recent MAWG meeting was held on May 23, 2024 and was attended by 9 different agencies and organizations with a total of 21 participants and 2 guest speakers.

The following agenda items were presented and discussed:
• Equity Initiative Mapping Tool presented by Berkeley's Center for Law, Energy & the Environment (CLEE)
• PG&E's Multifamily & Small Business EV Charger Program presented by Ecology Action
• Clean & Healthy Affordable Multifamily Properties (CHAMP) Program Prelaunch • Member Agency Grant Support
• Standing Item: Policy & Permitting Updates
• Summer Readiness

5. Member Agency Working Group – May
Update
Item 2
Attachment 3
ESCR Update, June 2024
10 6. Press Releases & Media
Press Releases
• Victory Pass Solar and Storage Project Begins Generation for Central Coast Community Energy and Silicon Valley Clean Energy Customers, Press Release, 05-07-24 Media Mentions
• Real-Life Lessons for Thriving in the Energy Transition, POWER Magazine, 05-01-24 • Stem Announces First Quarter 2024 Results, Benton Courier, 05-02-24 • Q&A: Climate change solution can carry environmental costs, Mercury News, 05-10-24 • Mercury News Letters to the Editor for May 14, 2024, East Bay Times, 05-13-24 Item 2
Attachment 3
ESCR Update, June 2024
11 6. Press & Media
• Electrify Your Home San Bruno: It’s Easier than Ever, Patch.com, 05-19-24 • This VP helps turn clean energy into high heat to decarbonize industry, Canary Media, 05-23-24 • Bay Area cities suspend natural gas bans on new buildings, The Mercury News, 05-27-24 • 新建築天然氣禁令 灣區各縣市紛紛喊停 (Counties and cities in the Bay Area have called for an end to the natural gas ban on new construction), World Journal, 05-28-24 • Solar project to destroy thousands of Joshua trees in the Mojave Desert, LA Times, 05-31-24 Item 2
Attachment 3
ESCR Update, June 2024
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 2
Attachment 4
SVCE Leg/Reg Update, June 2024
Item 2
Attachment 4
SVCE Leg/Reg Update, June 2024
CD Policy Updates
Regulatory Update:

1. Integrated Resource Planning

2. New Order Instituting Rulemaking on
Distribution Grid Resiliency and Reliability

3. Resource Adequacy

4. PG&E's 2025 Energy Resource Recovery
Account (ERRA) Forecast Application

5. Update on the Joint Rate Mailer
Legislative Update:

1. Governor’s May Revise

2. SVCE and CaICCA Bill Positions

3. Climate Bond Update

4. 2024 Legislative Calendar
2 Item 2
Attachment 4
SVCE Leg/Reg Update, June 2024
Regulatory
Update
•
•
•
•
Item 2
Attachment 4
SVCE Leg/Reg Update, June 2024
Key Regulatory Activities
*+
Activity Purpose Status
Integrated Resource
Planning (R.20-05-003)
Electric Integrated Resource
Planning and Related
Procurement Processes.

A ruling was issued requesting party feedback on a number of issues related to the use of AB 1373, allowing the Department of Water Resources (DWR) to procure long-lead time resources via a Central Procurement Entity (CPE) mechanism. The initial ruling suggested potential resources for CPE include Offshore Wind (OSW), Out of State Wind, Geothermal and Long-Duration Energy Storage. Of these four, OSW was the only one with a cost-benefit analysis provided.

On May 24th parties filed responses to the ruling's 31 questions. Sentiments of CPE usage was mixed with developers broadly supporting it, some ratepayer advocates group opposing and load serving entities (LSEs) generally suggesting it be approached with caution.

Under AB 1373 the Commission must determine need by September 1, 2024. A PD is therefore expected in July.

New Order Instituting
Rulemaking on Distribution
Grid Systems (Rulemaking
number not yet assigned)
Update Rules for the Safety,
Reliability, and Resiliency of
Electrical Distribution Systems.

On May 30, 2024 the California Public Utilities Commission (CPUC) voted to adopt a new proceeding that will examine the safety, reliability, and resiliency of electrical distribution systems.

The CPUC has opened this proceeding because of various risks and new priorities the distribution grid is facing: (1) aging equipment; (2) extreme, climate-driven weather events; (3) evolving wildfire mitigation practices; (4) increased prioritization of equity; and (5) increased prioritization of electrification. The proceeding will be scoped to examine the following four key issues:

The reliability of electrical distribution service
Outage transparency for customers
Supporting actions for short term reliability, safety, and system resilience The reasonableness of costs and cost allocation
SVCE plans to engage with the new proceeding and will provide updates as the record is developed.

Application of PG&E for
Adoption of Electric Revenue
Requirements and Rates
Item 2
Attachment 4
SVCE Leg/Reg Update, June 2024
Key Regulatory Activities
Activity Purpose Status
Resource Adequacy (R.23-
10-011)
Oversee the Resource
Adequacy program, consider
program reforms and
refinements, and establish
forward resource adequacy
procurement obligations.

On May 17th a Proposed Decision (PD) was issued in Track One of the RA proceeding. The PD rejects delaying implementation of the new Slice of Day (SOD) RA program and rejects proposals from several parties, including CaICCA, to grant temporary system waivers. It also rejected party proposals to allocate the RA capacity from both the Strategic Reliability Reserve and the lOU's "effective PRM" - both measures to procure capacity outside of the normal RA process -to LSEs.

Additionally, the PD sets the Planning Reserve Margin (PRM) to 17% for 2025 and clarifies several accounting rules for the SOD framework.

PG&E's 2025 ERRA
Application (A.24-05-009)
On May 15, PG&E submitted its 2025 ERRA Forecast Application, which starts the year-long process for approval of its generation rates for 2025.

CCA Code of Conduct
(R.12-02-009)
Rules of Conduct for CCAs,
including Joint Rate Comparison
Mailers
On May 28, SVCE requested a 60-day extension until September 1 to distribute the annual Joint Rate Comparison ("JRC") mailers. PG&E is in agreement with the request, which stems from ongoing technical issues at the Western Electricity Coordinating Council resulting in delayed issuance of Renewable Energy Certificates ("RFCs"). Without the accurate number of RFCs issued, the JRC would be inaccurate. SVCE will request further deadline delays if the issues persist.

Item 2
Attachment 4
SVCE Leg/Reg Update, June 2024
Legislative
Update
6 Item 2
Attachment 4
SVCE Leg/Reg Update, June 2024
May Revise of State Budget
Additional $7B reduction for total shortfall of $27.6B. Highlights for energy/climate:

Program Funding Amount
ZEV programs $475M shift from Cap and Trade
Clean Energy Reliability Investment Plan $100M delay from early budget action, $900M fund shift from General Fund to Cap and Trade
in May Revise
Distributed Energy Backup Assets Program $75M fund shift from General Fund to Cap and Trade
7 Item 2
Attachment 4
SVCE Leg/Reg Update, June 2024
Additional Potential Cuts/Fund Shifts
Currently under debate between the legislature and Governor. Legislative deadline to pass budget by June 15th.

Workforce Programs -Women in Construction, Governor proposing roughly $70M in cuts.

CA Youth Apprenticeship, CA Youth Leadership
Corps, and High Road Training Partnerships
Program Funding Amount
Equitable Building Decarb Governor proposing cuts of $53 M in FY ‘24 and $77M in FY ‘25.
8 Item 2
Attachment 4
SVCE Leg/Reg Update, June 2024
0 SVCE and CaICCA Bill Positions
Bill Sumary CaICCA or SVCE
Position
Status
SB 1095 (Becker) Prohibits mobile home parks and
homeowner associations from
instituting barriers to electric
appliances.

SVCE
Support/CaICCA
Support
Died
AB 2513 (Pellerin) Requires health warning labels
on gas stoves.

SVCE Support Senate Env Quality
SB 1221 (Min) Creates a neighborhood zonal
decarbonization pilot at the
CPUC.

SVCE Support Assembly Energy
9 Item 2
Attachment 4
SVCE Leg/Reg Update, June 2024
0 SVCE and CaICCA Bill Positions
Bill Sumary CaICCA or SVCE
Position
Status
SB 1130 (Bradford) Allows households with less than 3
people to enroll in the FERA low-income bill assistance program.

CaICCA Support Assembly Energy
AB 817 (Pacheco) Would allow Board Committees that are
purely advisory to use pandemic-era
teleconferencing rules.

CaICCA Support Assembly
Appropriations
AB 2779 (Petrie-Norris) Requires CAISO to report on any use of grid enhancing technologies to the
CPUC and legislature.

CaICCA Support Senate Energy
SB 1165 (Padilla) Allows transmission projects to go
through the permitting process at the
CEC instead of the CPUC.

CaICCA Support Died
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Item 2
Attachment 4
SVCE Leg/Reg Update, June 2024
O Additional Updates on Notable Bills
AB 1999 (Irwin) on income graduated fixed charge, failed to pass Assembly Appropriations.

AB 2619 (Connolly) which would require the CPUC to
reopen the Net Billing Tariff proceeding also died.
11 Item 2
Attachment 4
SVCE Leg/Reg Update, June 2024
CD Climate Bond Update
The Assembly and Senate released updated proposals for a climate bond.

There are multiple scenarios for funding based on size of total bond.

Program Senate Proposal Assembly Proposal
Transmission $50M - 500M $500M under all scenarios
Electric Grid Expansion/Modernization N/A $500M under all scenarios Equitable Building Decarbonization $50M - $100M $0M - $150M Offshore Wind Port Infrastructure $200M - $300M $750M - $1B ZEV $0M - $500M $33M - $75M for ag vehicles
Battery Storage $0M - $500M N/A
Offshore Wind Port Infrastructure $200M - $300M $750M - $1B 12 •
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Item 2
Attachment 4
SVCE Leg/Reg Update, June 2024
1 Key 2024 State Legislative Milestones
January 3—Legislature Reconvenes
January 12—Last day for policy committees to hoar fiscal bills from their house last year January 19—Last day to submit bill requests to Legislative Counsel; last day for committees to hoar and report to the floor bills introduced last year
January 31—Last day for each house to pass bills introduced last year February 16—Last day for bills to bo introduced
April 26—Last day for policy committees to vote on fiscal bills May 17—Last day for fiscal committees to hoar bills introduced in that house May 24—Last day for each house to pass bills introduced in that house June 15 -Budget bill must pass by midnight
July 3 - Last day for policy committees to vote on bills August 16 - Last day for fiscal committees to vote on bills August 31- Last day for each house to pass bills
September 30 - Last day for Governor to sign bills
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Item 2
Attachment 5
Agenda Look Ahead: August -Nov 2024
August
14th: BOD Meeting
Workforce Policy & Strategy
- Action
FY 24-25 Budget -
Discussion
On-Bill Financing Pilot
Program Contract -
Action
Clean Pathways and 24x7
study - Information
September
1th: BOD Meeting
FY 24-25 Budget -Adopt
FY 24-25 Strategic Focus
Areas -Adopt
FY25 Programs Budget -
Action
Affordability Discussion -
Information
October
9th: BOD Meeting
FY 24-25 Strategic Plan and
Workplan (TBD) - Adopt
Agency Policies Streamlining
Project Update &
Recommendation Parti -
Action
Clean Pathways Update &
Recommendation - Action
Regionalization Discussion -
Information
November
13th: BOD Meeting
2025 Legislative Policy
Platform - Adopt
GreenPrime Product
Offering & Rate -Action
Programs Budget and
Impact Summary
Discussion - Information
*Please note the items on this
schedule may change depending on
priorities

Staff Report – Item 3
Item 3: Consider Staff’s Recommendation to Modify 2025 Clean Power Supply Offering for GreenStart
From:

Prepared by:

Monica Padilla, CEO
Kris Van Vactor, Director of Power Resources
Date: 6/12/2024

RECOMMENDATION
Approve changes to Silicon Valley Clean Energy’s (SVCE) standard retail rate product, GreenStart, for 2025 as follows:

1. Relax the 100 percent clean target to reflect current portfolio clean position and market conditions; and

2. Authorize the Chief Executive Office to procure nuclear, carbon-free, attributes if available.

The above recommendation is reflective of the continuation of market conditions observed in 2024 to 2025.

Staff intends to return to the Board in August or September of 2024 with a broader discussion on SVCE’s pathway towards meeting long-term 100% clean requirements.

EXECUTIVE COMMITTEE RECOMMENDATION
At the May 24th, 2024 Executive Committee meeting, staff led a discussion about the continued challenges of procuring carbon free to meet 100% clean designation for GreenStart. Staff presented a recommended change to relax the GreenStart product offering. The Executive Committee discussed the two options that were provided by staff and while supportive of moving the discussion to the board the Executive Committee had several questions for staff including:

1. Can staff provide more context for discussion at the board meeting?

2. Can staff provide chart of costs to achieve different percentage levels of clean percentage?

3. Can staff provide sense of future direction?
Staff has pulled together the relevant information and will provide it in this staff report and at the board meeting.

BACKGROUND
SVCE offers two clean product offerings for its customers, GreenStart and GreenPrime. SVCE has historically procured its carbon-free energy needs for its standard product, GreenStart,via large-hydro and both short-term and long-term Renewable Portfolio Standard (RPS) eligible resources such as geothermal, wind and solar.

Approximately 95% of SVCE customers are on the GreenStart product. SVCE’s premium product, GreenPrime, is comprised of 100% renewable energy. The product has been backed by ‘Green-e Certified’ renewable energy credits (RECs) which are verified voluntary RECs from newer built projects. GreenPrime customers make up approximately 5% of SVCE’s overall load. GreenPrime customers pay a a premium to cover the incremental cost to SVCE of GreenPrime supply.

Roughly 50% of the GreenStart product is sourced from RPS resources from both long-term Power Purchase Agreements (PPAs) and short-term RPS products with the balance coming from carbon-free energy. SVCE has achieved 100 to 106% clean power supply for GreenStart since 2017. For 2024, at the direction of the Board, SVCE relaxed its target given market conditions. Specifically, the Board directed staff to procure additional clean energy only if sufficient supply could be procured to achieve 100% clean and the price for attributes was Item 3
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 3 Agenda Date: 6/12/2024

consistent with the Board approved budget. Staff issued subsequent RFOs as directed, however did not find the resources. Currently, the projected clean portfolio for 2024 is 84%. The approximate savings associated with not filling the open position for 2024 is $20M. These dollars have not been allocated to programs or any other type of fund, but rather go towards SVCE’s net position.

The market prices for carbon-free energy have increased dramatically due to the increased demand from corporate buyers, poor hydro conditions in the Pacific Northwest, and increasing climate targets in both California and the Pacific Northwest. Carbon-free prices have increased by approximately 16.5x since SVCE’s inception in 2017 to today rising from $1.75 per MWh to $291 per MWh. Carbon-free procurement costs were $4.1 million in 2017 and if the same volumes were procured with today’s current market prices, the cost could be up to $67.6 million just for 2025.

Chart 1: Historical and Forward Carbon Free prices
Both GreenStart and GreenPrime rely on RPS products. RPS prices have also seen dramatic increases over the past few years, largely due to increased demand from corporate buyers, on-going delays for new projects, and the end of a RPS Compliance Period Four (CP4) 2increasing demand. As recently as 2022, SVCE paid approximately $12 per RECs but in recent solicitations have seen prices from $70-85 per REC generated and delivered in California.
1 This is equivalent to $67.75/metric tonne of CO2
2 RPS Compliance Period Four sets a 40% overall RPS target for 2021 through 2024 and requires at least 65% of RPS resources come from contracts of ten years or greater in term. Failure to meet both requirements may result in penalties as assessed by the California Public Utilities Commission.
$4.50 $5
$20
$25
$29 $29
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
2021 2022 2023 2024 2025 2026
Change in CF Market Prices
(2021 – 2026)
Item 3
Agenda Item: 3 Agenda Date: 6/12/2024

In June 2023, the California Public Utilities Commission (CPUC) issued D.23-06-006 which determined that PG&E is no longer obligated to offer allocations of nuclear and large hydro resources to load serving entities (LSEs) such as SVCE. The decision requires that if PG&E does not offer hydro allocations, LSE customers should be compensated for the hydro portfolio via the Power Cost Indifference Adjustor (PCIA) based on a calculated Market Price Benchmark (MPBR). Recently as part of the 2025 ERRA Forecast Application A. 24-05-009, PG&E announced that it will be providing hydro allocations for the years 2025-2027 for any load serving entity within their service territory. That allocation in combination with the reduced share allocations from Diablo Canyon (roughly half), resulting from the decision to extend the life of the nuclear power plant, will account for ~880 GWh or 22% of SVCE’s projected retail sales. This lower allocation for Diablo Canyon is due to the resources being allocated to all of CAISO and not just to PG&E’s system. In addition, SVCE will receive the same prorated percentage of RA from both Diablo facilities. Staff believes these resources will continue to provide value to SVCE’s portfolio and help meet compliance requirements and therefore will indicate interest in full allocation of the hydro and nuclear allocations.

California passed Senate Bill 100 (SB100) which set an ambitious target for the electric power supply sector to achieve carbon neutrality by 2045. Additionally, SB1020 set interim clean targets to be achieved of 90% and 95% by 2035 and 2040, respectively. All load serving entities in California are subject to these requirements and as such the demand for clean resources, both RPS and non-RPS eligible, has increased significantly and is anticipated to continue to grow.

ANALYSIS & DISCUSSION
The market and policy changes combined are impacting carbon free resources and have created a supply deficit.

This is further demonstrated based on recent Requests for Offers (RFO) results issued by staff. As such, staff is not certain sufficient carbon free supply is available on the market to meet the 100% Clean requirements for GreenStart at any price. Staff believe the high spike in price is is likely a short-term situation and may levelize over time however as noted above demand for clean products will continue to grow to meet climate policies.

Additionally, as SVCE continues to on-board long-term RPS resources from PPAs, the structural clean deficit will decrease significantly, thus reducing SVCE’s reliance on short-term market resources which are sourced mainly from existing RPS resources and/or hydro from the Pacific Northwest.

Chart 1 below provides an overview of SVCE’s historical (2020 -2023) and expected (2024 – 2028) clean percentage.

Chart 2: Historical and Projected RPS and Clean
Item 3
SVCE RPS and Clean Percentages

3.00 120%
100%
80%
£
60% 2c
CD
U
O
Q-40%
20%
0%
RPS Volume -^SVCERPS% -•-SVCEClean% California RPSStandard% Agenda Item: 3 Agenda Date: 6/12/2024

GreenStart
With the return of Diablo Canyon (at a lower percentage allocation) and the commitment of PG&E to provide hydro attributes to SVCE for calendar year (CY) 2025, SVCE expects a portfolio that is approximately 80% clean for its GreenStart product. The cost of procuring the remaining up to 20% deficiency with hydro resources is estimated at ~$29 per carbon-free attribute, or twenty-four million dollars ($24 million) total. Given responses to recent solicitations, SVCE is uncertain that sufficient Carbon Free resources can be procured, even at high prices. SVCE’s ability to procure these resources diminishes as time goes by, since the resources must be delivered in CY 2025 in order to show up as countable clean resources on the power content label (PCL).

During the Executive Committee there was a request to provide an estimate of hitting certain pre-determined tranches. The table below uses high level estimates to provide more context to the Board of Directors on the potential costs of trying to procure each additional tranche including a minimum compliance scenario, which represents SVCE’s obligations to meet RPS under SB100 for 2025, which is currently 50%. Under this scenario, SVCE is significantly surplus.

These estimates use a fixed price to calculate achieving the next tranche and while this is indicative of how much it would cost, if the resources existed, there is a very real possibility that prices could end up higher as you layer in procurement. The cost of procuring sufficient resources to achieve 100% clean and reduce CO2 by 335,882 metric tonnes is $24 million with an equivalent cost of abatement of $67.75 per metric tonne of CO2 reduced.

Table 1: 2025 Cost for Various Levels of Clean and Resulting Emissions* • The emissions associated with SVCE’s open position as shown in the table above are based on the CAISO’s historical average grid emissions of 944 lbs/CO2, as provided through the Power Source Disclosure form.

Even if SVCE could achieve a 100% clean portfolio, current PCL accounting rules require emissions be reported for energy output from the associated with one of SVCE’s PPAs, Coso geothermal. While this resource is RPS-eligible and clean, it produces anthropogenic emissions measured at 74 lbs/CO2 for SVCE’s portfolio. Through effective advocacy at the California Energy Commission (CEC), SVCE along with several other load serving entities were able to convince the CEC to remove the emission reporting requirements for all geothermal. This is likely to take effect in 2028 however SVCE will continue to advocate for an earlier implementation.

GreenStart Clean Options
Because of the lack of clean supply and time to procure resources for 2025, SVCE focused on two clean portfolio alternatives to meet the GreenStart product offering as noted in Table 2. The only other viable alternatives to reduce or neutralize emissions is to procure carbon offsets and/or low carbon resources from the Pacific Northwest known as Asset Controlling Supplier (ACS). Staff is unsure of the availability of quality offset products at a reasonable price and reportable emissions on the PCL will remain the same.

Portfolio
Percentage Clean
Cost for each additional
Tranche of clean ($/m)
Aprox. PCL Emmission
Intensity (Lbs/CO2)
Metric Tonnes of
Carbon
50% (36) M 472 861,609
80% 0 M 248 452,710
85% 6 M 211 385,168
90% 12 M 164 299,373
95% 18 M 117 213,577
100% 24 M 64 116,828
106% 31 M 60 109,527
Item 3
Agenda Item: 3 Agenda Date: 6/12/2024

Table 2: GreenStart Bookend Alternatives
Option #1
Current Policy
Option #2
No Additional Purchases
Description Maintain 100% Carbon Free for 2024 –
assumes SVCE can purchase additional CF
resources
Stick with current Carbon Free position of
~80% in 2025
Expected Reportable
Emissions on Power
Content Label
74 lbs of Co2* ~248 lbs of Co2, includes grid emissions Benefits Maintains SVCE’s historic product offering Reduces costs Drawbacks • May not be feasible
• Expensive
• Limited emissions reductions for
grid
• Could impact GreenStart customers
with Climate Action Plans
• Increases reportable emissions
*emissions associated with Coso Geothermal renewable resources Option 1, to maintain existing policy and attempt to purchase sufficient hydro or nuclear resources to cover the net open clean position, is expected to increase power supply costs by roughly ~$24m. However, as mentioned above this option may not be feasible as supply is limited. Should SVCE meet its 100% Clean goal in 2025, it would expect an emissions reporting of 64 to 74 lbs carbon dioxide (Co2) per MWh. This option would maintain the organization’s historic product offering.

Option 2 would reduce expected power supply costs however increases reportable emissions for the organization, which may be of concern to GreenStart customers and our member agencies with aggressive climate action plans. If the organization is not able to procure additional carbon-free energy and maintains an 80% clean position, it is estimated that the PCL reportable emissions would increase to approximately ~248 lbs Co2/MWh in 2025.

Staff recommends Option 2, with the understanding that market conditions are such that this is the only viable alternative. Staff will attempt to procure up to 100 percent of carbon free attributes provided sufficient attributes are available at a reasonable cost. Given recent market activity, staff does not believe there are sufficient resources to achieve 100% clean and as such, the likely result is that SVCE’s clean supply for GreenStart will stay at approximately 80%. This recommendation aligns with SVCE’s desire to balance its clean, reliable and affordable goals.

NEXT STEPS
Staff will evaluate the avoided cost resulting from the lower clean targets for both 2024 and 2025 and return to the Board with a recommendation for how to allocate these savings including funding additional decarbonization programs, investing in local generation and/or passing savings to customers in the form of a greater rate discount.

Additionally, SVCE staff are planning on returning to the Board later this year to discuss the Clean Energy Pathways initiative. This work will look at ways to adjust SVCE’s clean product offerings. Among the topics that will be reviewed are the 24/7 hourly matching portfolio options, shift in focus from rapid portfolio expansion to incremental clean projects. Potential exists for a Carbon Abatement Policy and new programs that tie into our rate structure. Part of this work will define the long-term value proposition that SVCE can provide through its programs and rates.

Finally, SVCE staff plan to bring the GreenPrime rate to the board for discussion in November or December 2024.

Item 3
Agenda Item: 3 Agenda Date: 6/12/2024

STRATEGIC PLAN
Board approval to purchase carbon-free attributes will enable staff to meet the current board directed clean targets while maintaining cost and rate objective goals as outlined in SVCE’s Strategic Plan, including:

G7: Acquire clean and reliable electricity in a cost effective, equitable and sustainable manner; and G8: Manage and optimize power supply resources to meet affordability, GHG reduction and reliability objectives.

Staff believes the proposed solutions best balance affordability in the current market conditions while maintaining overall clean targets.

ALTERNATIVES
Staff has provided various alternatives to changes for GreenStart as described in Table 2 and recommends Option #2. The Board may decide not to support staff’s recommendation and instead maintain the status quo for GreenStart or direct staff to procure any carbon-free attributes available to achieve a greater percent of clean supply than 80% with the understanding that 100% may not be achievable.

FISCAL IMPACT
Adoption of the proposed changes to GreenStart will not change the cost of procuring resources for the current fiscal year (FY 24) and will be incorporated in the proposed FY 25 Budget for Board consideration in September 2024.

Item 3

Staff Report – Item 4
Item 4: Results of Stress Test Analyses
From: Monica Padilla, CEO
Prepared by: Amrit Singh, CFO and Director of Administrative Services Date: 6/12/2024

RECOMMENDATION
Receive the results of the Stress Test analyses. This report provides background information that staff will use in developing recommendations for the Board to adjust reserve levels for the next fiscal year (2024-2025) and discusses portfolio procurement risks stemming from long-term load growth uncertainty.

FINANCE AND ADMINISTRATION COMMITTEE REVIEW
Staff presented the stress test analyses to the Committee at its May 13, 2024, meeting. The Committee reviewed the results of the analyses and asked the staff clarifying questions to understand the modeled risks.

The Committee also requested additional information on new power generation technologies on the horizon.

BACKGROUND
At the February 26
th, 2024, Finance and Administration Committee meeting, staff reviewed the Enterprise Risk Management (ERM) framework for comprehensively assessing and managing the organization’s risks and opportunities. SVCE’s fiscal year planning begins using the ERM framework that attempts to assess risks and opportunities that impact SVCE’s mission. Staff explained that stress tests are an essential component of the ERM because of the inherent weakness in standard market risk measures in assessing “black swans” or extreme but plausible events such as market disruptions caused by, for example, an economic recession. Staff proposed a financial stress scenario that can have severe and direct financial consequences for the organization and whose mitigations are prudent to account for in developing the fiscal year budget. Staff also proposed assessing the risks of longer-term load growth uncertainty. The other risks and opportunities identified from the ERM process shape the next fiscal year’s strategic focus areas and department work plans.

ANALYSIS & DISCUSSION
Staff used lessons and insights from past analyses to construct the stress test scenarios. The past analyses included both increase and collapse of market prices, insufficient financial liquidity, load losses, and loss or delay of resources under Power Purchase Agreements. The key finding from these analyses is that the most significant financial risk facing SVCE over the next 5 years is a collapse in energy prices. A collapse in energy prices will significantly reduce SVCE’s revenues because of higher PCIA1 and lower PG&E generation rates.

However, this price drop will not substantially reduce SVCE’s energy purchase costs because the prices for most of the forward energy purchases are locked because of existing hedges, with more hedges in the earlier years aligned with the Energy Risk Management Policy hedging targets. The hedges also include contracts for 1 Public Utility Code Sections 366.1 and 366.2 require the CPUC to make sure that customers leaving PG&E do not burden remaining PG&E customers with costs that were incurred to serve them. To ensure customer indifference, CCAs and Direct Access or departing load customers are required to pay a power charge indifference adjustment (PCIA).

Item 4
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 4 Agenda Date: 6/12/2024

the fixed-price purchase of renewable energy. The impact of price collapse overwhelms all other stress factors.

This year’s analysis assesses price collapse risks over the next five years.

In this year’s analyses, staff has also started to assess the risks associated with load growth uncertainty. If load growth is higher than anticipated, SVCE can face difficulty meeting procurement and compliance targets, among other risks. On the other hand, if load growth is lower than expected, SVCE can face stranded cost risks that can erode its competitiveness and ability to carry out its mission.

The 5-yr Price Collapse Financial Stress Scenario
The 5-year financial stress test scenarios include these fundamental assumptions. 1) Energy price drop to statistical one percentile level To provide customers with competitive rates, SVCE sets its generation rates such that customers receive an effective discount, currently set at four percent for 2024 and 1% after that, to comparable PG&E rates. Because CCA customers must pay PCIA charges to provide the effective discount rate, SVCE reduces its rate by the PCIA amount. As a result of the price collapse, PCIA will increase, and PG&E generation rates will likely decrease, thereby reducing SVCE’s generation rates. 2) Price drop stresses financial liquidity
The standard credit risk management practice, except for long-term Power Purchase Agreements (PPAs), is the requirement to post collateral, usually cash or letters of credit, when the exposure to the counterparty reaches the negotiated credit limit. The stress test models how much SVCE’s collateral posting requirements can increase with price collapse. The results show that price collapse does not significantly impact liquidity because of SVCE’s active management of collateral posting requirements, including placing key counterparties in a lockbox mechanism in return for not having posting requirements and long-term PPAs not being subject to this requirement. 3) Other business operating and regulatory risks
In the past stress test analyses, staff modeled regulatory uncertainty from the potential changes to the Financial Security Requirement (FSR) that, under some proposals, would have required SVCE to post collateral equivalent to the cost of procuring energy over the two highest calendar months. The recently issued CPUC decision significantly mitigates this risk. This year’s stress test continues to model the requirement of a one-time cash draw equivalent to the two highest months of procurement under the very low-price scenario as a proxy for other potential business operating and regulatory risks.
4) Increased bad debt and load loss due to a recession.

Economic recession often entails contraction of load and an increase in bad debt losses. The analyses assume a 5% load loss for 12 months of the forecast. The 5% estimate is derived from the average load loss experienced at Covid. The bad debt assumption is 1% of the revenues.

The attachments to this report provide the summary tables with financial results under the current base case scenario and the modeled stress case scenario. The base case shows that reserves fall from the forecast level of $420 million at the end of the current fiscal year (September 30, 2024) to $368 million at the end of the next fiscal year. Reserves continue to fall in subsequent years and then rise to $360 million towards the end of the 5-year forecast period.

There’s considerable uncertainty in developing the base case scenario. While energy prices have always been volatile, resource adequacy (RA), carbon-free, and renewable portfolio standard (RPS) prices have recently become highly volatile. Energy prices, including those for the forward months, have declined significantly, and this decline has reduced SVCE’s financial margin projections because of the resulting increase in PCIA.

However, recent record-high RA and RPS prices are helping offset and potentially more than offset the Item 4
Agenda Item: 4 Agenda Date: 6/12/2024

declining margins from lower energy prices. The actual impact of these prices will not be known until the CPUC issues its market price benchmarks (MPBs) in the fall. Unlike energy prices for which the CPUC uses forward prices, RA and RPS are based on load serving entities (LSEs) actual transactions, thus making forecasting more difficult. Staff developed the following three RA and RPS price scenarios for forecasting MPBs:

1. Using incremental market observed RA and RPS prices

2. Adjusting market-observed RA and RPS prices using an adjustment factor staff imputed by comparing last year’s MPB RA and RPS prices published by the CPUC with those then observed in the market.

3. Using RA and RPS prices in the NewGen consultant’s model, based on last year’s MPBs.

The revenue forecast using the above three scenarios results in a range from $385 million (scenario 3) to $600 million (scenario 1)2. Given that this is a stress test analysis, staff used scenario 3 assumptions.

If the stress scenario were to occur and SVCE maintained a 1% customer discount to comparable PG&E rates, reserves would be drawn down by about $128 million. The resulting days cash on hand (DCOH) in fiscal years ending from 2026 to 2029 would fall below the minimum threshold of 120, and in the fiscal year ending 2029, SVCE would run out of cash.

The modeled results are based on the highly uncertain MPB price assumptions. PCIA and PG&E generation portfolio assumptions are based on public data as best modeled by the California Community Choice Association (CalCCA) consultant NewGen Strategies and are also highly uncertain. In addition to not knowing the contents of the PCIA portfolio and PG&E’s generation portfolio, PG&E’s portfolio management strategy may change from those modeled, and the California Public Utilities Commission (CPUC) may moderate future PG&E generation rate increases. All these uncertainties make the absolute value of the results highly unreliable.

Nevertheless, the relative differences between the base case and the modeled stress test scenario are more pertinent to understanding our strategic risks.

Like last year, the stress test analysis, updated for market prices in alignment with those used to develop the next fiscal year’s budget, will be used to update the reserve monitoring and reporting thresholds. The proposed methodology for updating the reserves thresholds is to build reserves such that if the modeled stress scenario were to occur, reserves do not fall below the minimum reserve threshold of holding 120 Days of Cash on Hand (DCOH) over the next two fiscal years and 90 DCOH over the remaining five fiscal years.

The table below summarizes what the update would look like if we were to do so at the current prices:

Current Illustrative New Targets
Minimum 120 120
Goal (Target) 300 315
Maximum (Upper Target) 490 420
Portfolio Management with Long-Term Load Growth Uncertainty In the past, per capita electricity consumption in California has remained relatively stable, mainly due to the state’s energy efficiency measures. We anticipate that the future will be unlike the past, and over the longer term, significant load growth is expected from drivers such as electric vehicles, building electrification, and data centers, including those resulting from growth in artificial intelligence. As shown in the chart below, SVCE’s load growth scenarios range from cumulative base case growth of 46% to a high of 86% from 2024 to 2050.
2 SVCE’s current fiscal year comparable revenue forecast is $552.9 million.

Item 4
Agenda Item: 4 Agenda Date: 6/12/2024

The attachment to this report summarizes the load forecast scenarios.

To manage the long-term load growth uncertainty, SVCE built an internal team to develop and monitor load growth in the agency's service territory.

One key risk is procuring long-term resources at prices that later become above-market. This is a similar risk to that of Investor Owned Utilities (IOUs) with load departure to CCAs. However, the PCIA mechanism protects the IOUs, but CCAs do not have such protection.

SVCE’s current portfolio risk management strategy includes 5-yr board-approved laddered hedges and longer-term hedges with power purchase agreements (PPAs). The long-term PPA strategy is designed to meet SVCE’s internal target of procuring 75% RPS by 2030, comply with CPUC procurement orders for reliability, and comply with legislative mandates from SB 350 and SB100, which require a 100% clean portfolio by 2045 with 65% of RPS from long-term contracts of 10 years or longer.

SVCE is continuously assessing longer-term risks and devising longer-term risk management strategies accordingly. These efforts include working with consultant Energy Environmental Economics (E3) to develop long-term clean targets. Staff plans to present results from this study in late summer or early fall. SVCE will continue with laddered procurement of long-term resources to reduce risks from technological advances and load uncertainty. To further diversify its portfolio of PPA risks, SVCE is working with CC Power to assess the economics and risks of direct ownership of resources and to take advantage of Inflation Reduction Act (IRA) benefits.

In addition to the above activities, SVCE will revisit the hedging targets in the Energy Risk Management Policy.

As illustrated in the financial stress test scenario, impacts from PCIA and PG&E generation rates on SVCE’s revenues depend on the same market prices as SVCE’s power procurement costs. Accounting for this financial impact will reduce the amount of hedges and overall financial risks. Because PCIA and PG&E generation rates are essentially black boxes, quantifying their level of hedge impact is difficult.

STRATEGIC PLAN
The analyses support SVCE Strategic Plan Goal 19 – “Commit to maintaining a strong financial position” and Goal 20 – “Avoid failures in the management of market risk, credit risk, liquidity risk, operational risks, and enterprise risks.”
Item 4
Total Load Forecast
Basecase IGFC High Electrification
Low Load High Load Actual
Agenda Item: 4 Agenda Date: 6/12/2024

FISCAL IMPACT
The stress test analyses show that the key financial risk facing SVCE in the near term is a collapse in energy prices that can significantly reduce revenues and require a substantial draw of funds from the reserves. The best mitigation of this risk is to hold sufficient funds in reserves. Staff will use the results of these analyses to recommend reserve levels for the Board to consider in setting the Fiscal Year 2024-25 budget.

ATTACHMENT

1. Summary of Base Case Results & Stress Test Results

2. Load Forecast Scenario Descriptions
Item 4
Agenda Item: 4 Agenda Date: 6/12/2024

Attachment 1 – Summary of Base Case and Stress Test Results Base Case Results
Stress Test Results
The 2025 numbers are slightly different due to a modeling error than the results presented at the 5/13/2024 Finance and Administration Committee meeting. The results for 2025 are higher by about $3 million.

Operating Load | Mean Costs| Old Revenue Components 2025 2026 2027 2028 2029 Revenues $ 384 $ 459 $ 416 $ 450 $ 438
Power Supply Costs $ 397 $ 485 $ 360 $ 370 $ 360
Operating Margin $ (13) $ (26) $ 56 $ 80 $ 78
Other Costs $ 40 $ 66 $ 47 $ 41 $ 43
Net Contribution to Reserves $ (53) $ (91) $ 9 $ 39 $ 35 Reserve Balance $ 368 $ 277 $ 286 $ 325 $ 360
Days Cash on Hand 307 183 257 289 326
Item 4
2025 2026 2027 2028 2029
Revenues $ 167 $ 225 $239 $288 $308
Power Suply Costs $ 274 $ 308 $249 $282 $309
Operating Margin $ (97) $ (73) $ (10) $ 6 $ (1)
Other Costs $ 40 $ 66 $ 47 $ 41 $ 43
Counterparty Collateral Outflow $ (lOf $ (H? $ - $ - $ - Net Contribution to Reserves $(137) $(138) $ (57) $ (35) $ (43) Reserve Balance $ 295 $ 156 $ 99 $ 64 $ 21
Reserve after Risk Adjustment $ 240 $ 101 $ 44 $ 9 $ (34) Days Cash on Hand 279 99 55 10 (36)
Agenda Item: 4 Agenda Date: 6/12/2024

Attachment 2 – Load Forecast Scenario Descriptions
Base Case Results
The 2024 stress scenario load forecasts are based on the Operating Forecast presented to the Board at the April Meeting. All changes described below are relative to that forecast. The scenarios include income-graduated fixed charge (IGFC), high electrification, high load, and low load.

1. The IGFC scenario is based on the possible impacts of the “income-graduated fixed charge.” Under AB 205 (2022), policymakers directed the CPUC to adopt an “income-graduated fixed charge” that reduces power bills for lower-income customers as well as benefits households' transition to electric vehicles (EV), water heaters, and more. This scenario accounts for the possible impacts on the load, with higher building electrification (BE) and EV growth and lower behind-the-meter photovoltaic (PV) growth. The total load under this scenario is projected to grow by 2.8% per year to 2035, compared to

2.0% under the base case.

2. The High Electrification scenario assumes customers in SVCE’s territory replace all equipment on burnout with electric technologies, following proposed Bay Area Quality Management District (BAAQMD) rules. This scenario also assumes an accelerated EV adoption trajectory relative to the operating forecast, with 90% of the vehicles in SVCE’s service territory as EVs by 2035 in response to the state’s ban on internal combustion engine sales starting in 2035. The total load is projected to grow by 3.7% annually by 2035.

3. The High Load scenario assumes data center load coming in 2028 in response to the high growth of artificial intelligence (AI) development on top of the High Electrification scenario. It assumes 11% of SVCE’s load is from the new data center, which is likely a high target given development time. The total load is projected to grow by 5.0% annually by 2035.

4. The Low Load scenario combines several factors that could lower SVCE’s load growth. First, it assumes electrification policies will get rolled back, resulting in an 11% decrease by 2035. Additionally, it assumes 12% of SVCE’s load is lost to new direct access (DA) load opening and additional customer opt-out by 2035. This scenario is considered as the lower bound of load growth. The total load is projected to grow by 0.4% annually by 2035.

Item 4
Scenario

BTM PV EV EE
Load Modifier
BE BTM ESS Opt-Out Others
Base 12% CAGR 61% by 2035 12% CAGR 68% space heating
and 19% water
heater by 2035
13% CAGR No No
IGFC 11% 67% by 2035 Base 75% space heating
and 55% water
heater by 2035
Base No No
High
Electrification
Base 90% by 2035 Base 86% space heating
and 81% water
heater by 2035
Base No No
High Load Base 90% by 2035 Base 86% space heating
and 81% water
heater by 2035
Base No Data Center
3*Current large
sized load by 2035
Low Load Base 30% by 2035 Base 53% space heating
and 14% water
heater by 2035
Base 4% DA Open ~400
GWh by 2035

Staff Report – Item 5
Item 5: FY 24-25 Budget Framework
From: Monica Padilla, CEO
Prepared by: Andrea Pizano, Sr. Executive Assistant/Board Clerk Date: 6/12/2024
This item will be addressed in the form of a presentation to the Board of Directors regarding the preliminary framework for the FY 2024-25 operating budget.

ATTACHMENT
The presentation for this item is posted to SVCE’s website.

Item 5

SILICON VALLEY

CLEAN ENERGY

Staff Report – Item 6
Item 6: Intro to 2025 Strategic Plan and Strategic Focus Areas From: Monica Padilla, CEO
Prepared by: Andrea Pizano, Sr. Executive Assistant and Board Clerk Date: 6/12/2024
As in previous years, staff is in the process of an annual review to update SVCE’s Strategic Plan and Strategic Focus areas. On May 24, 2024, the Executive Committee received a presentation with an introduction to the FY 25 Strategic Plan; feedback from that meeting has been incorporated into the presentation for the Board of Directors.

The remaining timeline for the 2025 Strategic Plan and Strategic Focus areas follows:
• June 12, 2024, Board of Directors Meeting: SVCE Strategic Plan FY 25 Update (Discussion) • August 23, 2024, Executive Committee: Strategic Focus Areas Update (Discussion) • September 11, 2024, Board of Directors Meeting: Update on Strategic Plan and Adopt FY25 SVCE Strategic Focus Areas (Action)

ATTACHMENT
The presentation for this item is posted to the SVCE website.

Item 6
SILICON VALLEY \3/ CLEAN ENERGY

Staff Report – Item 7
Item 7: Local Agency Action Planning
From: Monica Padilla, CEO
Prepared by: Zoe Elizabeth, Deputy Director of Decarbonization Programs and Policy Date: 6/12/2024

RECOMMENDATION
Staff requests that the SVCE Board of Directors (Board) receive an update on the Local Agency Action Planning initiative that supports member agency efforts to electrify existing buildings and modernize permitting.

BACKGROUND
In late 2023, SVCE launched two complementary programs to help member agencies sensibly expand the decarbonization of local buildings and prepare for upcoming rules that will limit the sale of gas appliances. The two programs, Permit Modernization and Policy Experimentation provide $4M in technical resources and support to help member agencies adopt local policies and improve permit practices that enable the adoption of local policies that support the transition to fossil-free buildings.

Staff is supporting member agencies with core technical assistance and developing customized plans that meet each jurisdiction's unique needs and goals. These efforts will be discussed in more detail at the Board meeting.

ANALYSIS & DISCUSSION
SVCE staff will address the analysis as a presentation to the Board.

STRATEGIC PLAN
The proposal supports SVCE’s Strategic Plan Goal 14, “coordinate development of decarbonization and resilience strategy, lead design of local policy and programs, and design and deploy programs.”

FISCAL IMPACT
N/A

ATTACHMENTS
The presentation for this item is posted to the SVCE website.

Item 7
SILICON VALLEY \3/ CLEAN ENERGY
Appendix A

Silicon Valley Clean Energy
Board of Directors Meeting
June 12, 2024
Appendix A
Power Resource Contracts Executed by CEO

SILICON VALLEY

CLEAN ENERGY
1 Confidential

MASTER POWER PURCHASE AND SALE AGREEMENT

SUBSTITUTION

RESOURCE ADEQUACY CONFIRMATION LETTER

BETWEEN
SILICON VALLEY CLEAN ENERGY AUTHORITY (“PARTY A”)
AND
EDSAN 1B GROUP 1 EDWARDS, LLC (“PARTY B”)
This confirmation letter (“Confirmation”) confirms the Transaction between Party A and Party B, which becomes effective on the date fully executed by both Parties (the “Confirmation Effective Date”), in which Seller agrees to provide to Buyer the right to the Product, as such term is defined in this Confirmation. This Transaction shall be deemed to have been entered into pursuant to, and shall supplement, form a part of, and be governed by the terms and conditions of the form of Master Power Purchase and Sale Agreement published by the Edison Electric Institute and the National Energy Marketers Association (version 2.1 dated 4/25/00) (the “EEI Agreement”) with a Cover Sheet containing the elections and other changes contained in Appendix D as if the Parties have executed the EEI Agreement (with such Cover Sheet the “Master Agreement”). The Parties agree that the only transactions to be concluded pursuant to such Master Agreement shall be the Transaction documented in this Confirmation. The Master Agreement and this Confirmation shall be collectively referred to herein as the “Agreement”. Capitalized terms used but not otherwise defined in this Confirmation have the meanings ascribed to them in the Master Agreement or, if not defined therein, the Tariff (defined herein). To the extent that this Confirmation is inconsistent with any provision of the Master Agreement, this Confirmation shall govern the rights and obligations of the Parties hereunder.

ARTICLE 1

TRANSACTION TERMS
Seller: Party B
Buyer: Party A
Product: The Product is the Capacity Attributes of the Unit(s) as defined in Appendix B. The Product does not include any right to the energy or ancillary services of the Unit(s).

Delivery Period:

Contract Quantity and Contract Price: The Contract Quantity and Contract Price for each day during the Delivery Period shall be set forth in Appendix B.

ARTICLE 2

DELIVERY OBLIGATIONS AND ADJUSTMENTS

2.1 Firm RA Product
Seller’s obligation to deliver the Contract Quantity of Product for each day included in the Delivery Period is firm and will not be excused for any reason.

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2.2 Intentionally Omitted

2.3 Intentionally Omitted

2.4 Delivery of Product
(a) Seller shall provide Buyer with the Contract Quantity of Product for each day during the Delivery Period consistent with the following:
(i) Seller shall, on a timely basis with respect to each day in the Delivery Period, cause each Unit’s Scheduling Coordinator to approve all Substitution Capacity corresponding to the Contract Quantity of Product in the CAISO’s Customer Interface for Resource Adequacy system (“CIRA”) within one (1) Business Day following the later of the Confirmation Effective Date or the date of notification by Buyer that the Substitution Capacity has been entered into CIRA, in accordance with the Tariff to identify and confirm the Product provided to Buyer for each day in the Delivery Period.
(ii) Seller will be deemed to have delivered the Product on each day to the extent that (A) Buyer receives credit from CAISO for such day for Product identified and confirmed as Substitution Capacity in CIRA submitted for the Unit or (B) Seller complies with its obligations in Section 2.4(a)(i) above, but Buyer does not receive credit from CAISO for such day due to Buyer’s failure to perform its obligations hereunder.
(iii) Hold-Back Capacity, if any, is deemed Contract Quantity delivered for all purposes hereunder.
(b) Seller shall, to the extent required by CAISO, cause the information listed in Appendix B to be completed in conformance with the requirements of the Tariff.

In addition, if during the Delivery Period, there are changes to the information included in Appendix B, the Parties agree to communicate such changes to each other promptly.

2.5 Damages for Failure to Provide Product
If Seller fails to deliver to Buyer the Contract Quantity of Product for any day during the Delivery Period in accordance with Section 2.4, then with respect to each such day, Seller is liable for damages pursuant to Section 4.1 of the Master Agreement.

2.6 Indemnities for Failure to Deliver Contract Quantity (a) Seller agrees to indemnify, defend and hold harmless Buyer from any penalties, fines or costs assessed against Buyer by the CPUC or CAISO resulting from any of the following:

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(i) Seller’s failure to deliver any portion of the Contract Quantity of Product for any portion of the Delivery Period and such failure results in the imposition of penalties, fines or costs assessed against Buyer; or (ii) A Unit’s Scheduling Coordinator’s failure to timely or accurately approve all Substitution Capacity in CIRA that identifies Buyer’s right to the Contract Quantity purchased hereunder for each day of the Delivery Period. (b) With respect to the foregoing, the Parties shall use commercially reasonable efforts to minimize such penalties, fines and costs; provided, that in no event shall Buyer be required to use or change its utilization of its owned or controlled assets or market positions to minimize these penalties, fines, and costs.

2.7 Buyer’s Re-Sale of Product
(a) Buyer may re-sell all or a portion of the Product purchased under this Confirmation (“Resold Product”); provided that such re-sell right does not include the ability to offer any portion of Product into the Competitive Solicitation Process. If Buyer re-sells Product, Seller agrees, and agrees to cause the Unit’s Scheduling Coordinator, to follow Buyer’s instructions with respect to providing such Resold Product to subsequent purchasers of such Resold Product to the extent such instructions are consistent with Seller’s obligations under this Confirmation. Seller further agrees, and agrees to cause the Unit’s Scheduling Coordinator, to take all commercially reasonable actions and execute any and all documents or instruments reasonably necessary to allow such subsequent purchasers to use such Resold Product in a manner consistent with Buyer’s rights under this Confirmation. If Buyer incurs any liability to any subsequent purchaser of such Resold Product due to the failure of Seller or the Unit’s Scheduling Coordinator to comply with the terms of this Confirmation, then Seller shall be liable to Buyer for any liabilities Seller would have incurred under this Confirmation if Buyer had not resold the Product, including without limitation, pursuant to Sections 2.5 and 2.6. (b) If Buyer exercises its right to re-sell the Product, Buyer shall notify Seller in writing that such sale has occurred by providing to Seller the information described in Appendix C (“Re-sale Plan”). The Re-sale Plan shall be provided within (1) Business Day following the Confirmation Effective Date. Buyer shall notify Seller of any subsequent changes or further resale of the Resold Product, and such notice shall include all updates to the information in Appendix C in accordance with the deadlines described in this Section 2.7(b).

ARTICLE 3

PAYMENT

3.1 One-Time Payment
Buyer shall make a payment (a “One-Time Payment”) to Seller as follows:

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1,000 × ܦ × ܲ × ܳ = ݐ݉݁݊ݕܲܽ ܶ݅݉݁ − ܱ݊݁
where:

Q = The Contract Quantity of Product delivered by Seller to Buyer pursuant to Appendix B and consistent with Section 2.4 for each day in the Delivery Period
P = The Contract Price for each day in the Delivery Period, expressed in dollars per kW-Day
D = The total number of calendar days in the Delivery Period The One-Time Payment calculation shall be rounded to two (2) decimal places.

3.2 Allocation of Other Payments and Costs
(a) Seller is entitled to retain any revenues it may receive from, and shall pay all costs charged by, CAISO or any other third party with respect to the Unit for (i) start-up, shutdown, and minimum load costs, (ii) capacity revenue for ancillary services, (iii) energy sales, (iv) revenue for flexible ramping product, and (v) any revenues for black start or reactive power services. All Seller revenues described in this Section

3.2(a) and received by Buyer or a purchaser of Resold Product must be remitted to Seller and Buyer shall pay such revenues to Seller if received by Buyer or if a subsequent purchaser of Resold Product fails to remit those revenues to Seller.

If Buyer fails to pay such revenues to Seller, Seller may recoup any amounts owing to it for such revenues against any future amounts it may owe to Buyer.

Seller shall indemnify, defend and hold Buyer harmless from and against all liabilities, damages, claims, losses, costs or expenses (including, without limitation, attorneys’ fees) incurred by or brought against Buyer in connection with Environmental Costs.
(b) In order to verify the accuracy of such revenues, Buyer has the right, at its sole expense and during normal working hours after reasonable prior notice, to hire an independent third party reasonably acceptable to Seller to audit any documents, records or data of Seller associated with the Contract Quantity and in accordance with Section 3.1 of this Confirmation and Article Six of the Master Agreement. (c) If CAISO or CPUC develops a centralized capacity market, Buyer will have exclusive rights to tell the Seller or the Unit’s Scheduling Coordinator to offer, bid, or otherwise submit the applicable Contract Quantity of Product for each day during the Delivery Period provided to Buyer pursuant to this Confirmation for re-sale in such market, and retain and receive all revenues from such re-sale. (d) Buyer and Seller agree that the Unit is subject to the terms of the Availability Standards, Non-Availability Charges, and Availability Incentive Payments as contemplated under Section 40.9 of the Tariff. Any Availability Incentive Payments or Non-Availability Charges are for the account, or are the responsibility of, the Seller, as applicable.

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ARTICLE 4

CAISO OFFER REQUIREMENTS
Seller is responsible for, as applicable, scheduling or causing the applicable Unit’s Scheduling Coordinator to schedule with, or make available to, CAISO the Product delivered to Buyer for each day during the Delivery Period in compliance with the Tariff, and performing all, or causing the Unit’s Scheduling Coordinator, owner, or operator, as applicable, to perform all obligations under the Tariff that are associated with the Product sold hereunder. Buyer is not liable for the failure of Seller or the failure of any Unit’s Scheduling Coordinator, owner, or operator to comply with such Tariff provisions or any penalties or fines imposed on Seller or the Unit’s Scheduling Coordinator (unless Seller is the Scheduling Coordinator), owner, or operator for such noncompliance.

ARTICLE 5

OTHER BUYER AND SELLER COVENANTS

5.1 Seller’s and Buyer’s Duty to Take Action to Allow the Utilization of the Product Buyer and Seller shall, throughout the Delivery Period, take commercially reasonable actions (including the execution of documents or instruments) reasonably necessary to ensure Buyer’s right to the use of the Contract Quantity on each day during the Delivery Period for the sole benefit of Buyer or any applicable subsequent purchaser pursuant to Section 2.7. The Parties shall make commercially reasonable changes to this Confirmation necessary to conform this Transaction to subsequent clarifications, revisions, or decisions rendered by the CPUC, FERC, CAISO or other Governmental Body having jurisdiction to administer Compliance Obligations.

5.2 Representations, Warranties and Covenants
(a) Seller represents and warrants to Buyer throughout the Delivery Period that:
(i) no portion of the Contract Quantity for any day during the Delivery Period has been committed by Seller to any third party in order to satisfy Compliance Obligations or analogous obligations in any CAISO or non-CAISO markets; (ii) the Unit is connected to the CAISO Controlled Grid, is within the CAISO Control Area, and is under the control of CAISO;
(iii) each Unit’s Scheduling Coordinator, owner and operator is obligated to comply with applicable laws, including the Tariff, relating to the Product; (iv) if Seller is the owner of the Unit, the aggregation of all amounts of Capacity Attributes that Seller has sold, assigned or transferred for the Unit for each day included in the Delivery Period does not exceed the Unit NQC for the delivery month and, if applicable, the Unit EFC for the delivery month, for that Unit; and
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(v) Seller has notified either the Scheduling Coordinator of the Unit or the entity from which Seller purchased the Product of the fact that Seller has transferred the Contract Quantity for each day of the Delivery Period to Buyer, or, if applicable, to a subsequent purchaser.
(b) Seller represents and warrants to Buyer as of the Confirmation Effective Date, that Seller owns or has the exclusive right to the Product sold under this Confirmation from the Unit;
(c) Seller covenants as follows:
(i) Seller shall not offer, and shall ensure that the Unit’s Scheduling Coordinator does not offer, any portion of the Contract Quantity for any day during the Delivery Period to CAISO as CPM Capacity. However, if CAISO designates any portion of the Contract Quantity as CPM Capacity, then Seller shall promptly notify Buyer, or shall cause the Unit’s Scheduling Coordinator to promptly notify Buyer within one (1) Business Day of the time Seller receives notification from CAISO. If CAISO makes such a designation, Seller shall not accept, and shall ensure that the Unit’s Scheduling Coordinator does not accept, any such designation by CAISO unless and until Buyer has agreed to accept such designation; and (ii) Seller shall, upon request, furnish Buyer, CAISO, CPUC or other applicable Governmental Body evidence that its representation made in Section

5.2(c)(i) is true and correct.
(d) Each Party covenants to the other Party throughout the Delivery Period to comply with the Tariff, relating to the Product.

5.3 Counterparts
This Confirmation may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered by electronic mail (including pdf or any electronic signature complying with the federal ESIGN Act of 2000, California’s Uniform Electronic Transactions Act (Cal. Civ. Code Section 1633.1, et seq.) or other applicable law) or other transmission method and any other counterpart so delivered shall have the same legal effect as an original.

ARTICLE 6

CONFIDENTIALITY
Notwithstanding Section 10.11 of the Master Agreement, the Seller may disclose the transfer of the Contract Quantity for each day during the Delivery Period under this Transaction to the Scheduling Coordinator of the Unit in order for such Scheduling Coordinator to timely submit accurate Supply Plans. The Seller shall use reasonable efforts to limit, to the extent possible, the ability of the Scheduling Coordinator to further disclose information disclosed pursuant to this Article. In addition, if Buyer resells all or any portion of the Contract Quantity for any day during the Delivery Period to another party, Buyer shall be permitted to disclose to the purchaser of the DocuSignEnvelopeID:AC876ABC-2673-407A-B132-89278D0990DC Appendix A Edsan
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Resold Product all such information necessary to effect such resale transaction, other than the Contract Price.

ARTICLE 7

HOLD-BACK CAPACITY
No later than one (1) Business Days before the relevant deadline for entering the Substitute Capacity in accordance with Section 2.4 (a)(i), Buyer may request in writing that it will not be entering a portion or all of the Contract Quantity for any portion of the Delivery Period (“Hold-Back Capacity”). The amount of Contract Quantity that is the subject of Buyer’s request for Hold-Back Capacity shall be deemed Contract Quantity delivered consistent with Section 2.4 for purposes of calculating the One-Time Payment pursuant to Section 3.1 and calculating any amounts due pursuant to Section 2.5 or 2.6. Seller shall, or shall cause the Unit’s Scheduling Coordinator to, comply with Buyer’s request under this Article 7.

ARTICLE 8

COLLATERAL REQUIREMENTS

8.1 Party A Collateral Requirements
Notwithstanding anything herein or in the Master Agreement to the contrary, Performance Assurance shall not be required from either Party in connection with this Transaction.

8.2 Party B Collateral Requirements
Notwithstanding anything herein or in the Master Agreement to the contrary, Performance Assurance shall not be required from either Party in connection with this Transaction.

ARTICLE 9

ADDITIONAL MASTER AGREEMENT AMENDMENTS

9.1 Declaration of an Early Termination Date and Calculation of Settlement Amounts The Parties shall determine the Settlement Amount for this Transaction in accordance with Section

5.2 of the Master Agreement using the defined terms contained in this Confirmation and with respect to this Transaction only, the following language is to be added at the end of Section 5.2 of the Master Agreement:
“If Buyer is the Non-Defaulting Party and Buyer reasonably expects to incur or be liable for any penalties, fines or costs from the CPUC, CAISO, or any Governmental Body having jurisdiction, because Buyer or a purchaser of Resold Product is not able to include the applicable Contract Quantity as Substitute Capacity to meet Buyer’s substitution obligation, due to Seller’s Event of Default, then Buyer may, in good faith, estimate the amount of those penalties, fines or costs and include this estimate in its determination of the Termination Payment, subject to accounting to Seller when those penalties, fines or costs are finally ascertained. If this accounting establishes that Buyer’s estimate exceeds the actual amount of penalties, fines or costs, Buyer shall promptly remit to Seller the DocuSignEnvelopeID:AC876ABC-2673-407A-B132-89278D0990DC Appendix A Edsan
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excess amount. The rights and obligations with respect to determining and paying any Termination Payment, and any dispute resolution provisions with respect thereto, survive the termination of this Transaction and continue until after those penalties, fines or costs are finally ascertained.”
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ACKNOWLEDGED AND AGREED TO AS OF THE CONFIRMATION EFFECTIVE DATE.

Silicon Valley Clean Energy Authority EdSan 1B Group 1 Edwards, LLC By: By:

Name: Name:

Title: Title:

Date: Date:

APPROVED as to legal form _____
April 26, 2024
Darren Kelly
VP, Asset Management
DocuSignEnvelopeID:AC876ABC-2673-407A-B132-89278D0990DC MonicaPadilla
CEO
4/26/2024
Appendix A Edsan
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573FC104110B4C0.—
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APPENDIX A

DEFINED TERMS
For purposes of this Confirmation, the following terms have the following meanings:
“Advice Letter” means (1) an informal request by a CPUC jurisdictional entity for Commission approval, authorization, or other relief, including an informal request for approval to furnish service under rates, charges, terms or conditions other than those contained in the utility’s tariffs then in effect, and (2) a compliance filing by a load-serving entity pursuant to Public Utilities Code Section 380.
“CAISO” means the California Independent System Operator Corporation or any successor entity performing substantially the same functions.
“Capacity Attributes” means, with respect to a generating unit, any and all of the following, in each case which are attributed to or associated with the generating unit at any time throughout the Delivery Period:
(a) Resource Adequacy Capacity attributes of the generating unit, as may be identified from time to time by the CPUC, CAISO, or other Governmental Body having jurisdiction, that can be counted toward RAR;
(b) Resource Adequacy Capacity attributes or other locational attributes of the generating unit related to a Local Capacity Area, as may be identified from time to time by the CPUC, CAISO or other Governmental Body having jurisdiction, associated with the physical location or point of electrical interconnection of the generating unit within the CAISO Control Area, that can be counted toward a Local RAR; and (c) other current or future defined characteristics, certificates, tags, credits, or accounting constructs of the generating unit, howsoever entitled, including any accounting construct counted toward any Compliance Obligations;
provided that, notwithstanding the foregoing, Capacity Attributes exclude all certificates, tags, credits, or accounting constructs that are not counted toward any Compliance Obligations, howsoever entitled associated with the generating unit, as such characteristics, certificates, tags, credits, or accounting constructs are described in the CPUC Decisions and Tariff. “Compliance Obligations” means the RAR and Local RAR, and if applicable FCR. “Compliance Showings” means the monthly, annual, or multi-year (a) Local RAR compliance or advisory showings (or similar or successor showings), (b) RAR compliance or advisory showings (or similar or successor showings), and (c) if applicable, FCR compliance or advisory showings (or similar or successor showings), in each case, an LSE is required to make to the CPUC (and, to the extent authorized by the CPUC, to CAISO) pursuant to the CPUC Decisions, to CAISO pursuant to the Tariff, or to any Governmental Body having jurisdiction. “Confirmation” is defined in the introductory paragraph of this Confirmation.

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“Confirmation Effective Date” is defined in the introductory paragraph of this Confirmation. “Contract Price” means, for any period during the Delivery Period, the price, expressed in dollars per kW-Day, specified for such period set forth in the Contract Quantity and Contract Price Table in Appendix B.
“Contract Quantity” means, with respect to any day during the Delivery Period, the amount of Product, expressed in MW, set forth in the Contract Quantity table in Appendix B for such day. “CPUC” means the California Public Utilities Commission. “CPUC Decisions” means CPUC Decisions 04-01-050, 04-10-035, 05-10-042, 06-04-040, 06-06- 064, 06-07-031, 07-06-029, 08-06-031, 09-06-028, 10-06-036, 11-06-022, 12-06-025, 13-06-024, 14-06-050, 15-01-063, 15-06-063, 16-06-045, 17-06-027, and any other existing or subsequent decisions, resolutions, or rulings related to resource adequacy, including, without limitation, the CPUC Filing Guide, in each case as may be amended from time to time by the CPUC. “CPUC Filing Guide” means the annual document issued by the CPUC which sets forth the guidelines, requirements and instructions for LSE’s to demonstrate compliance with the CPUC’s resource adequacy program.
“Delivery Period” is defined in Article 1 of this Confirmation. “Emission Reduction Credits” or “ERC(s)” means emission reductions that have been authorized by a local air pollution control district pursuant to California Division 26 Air Resources; Health and Safety Code Sections 40709 and 40709.5, whereby such district has established a system by which all reductions in the emission of air contaminants that are to be used to offset certain future increases in the emission of air contaminants shall be banked prior to use to offset future increases in emissions.
“Environmental Costs” means costs incurred in connection with acquiring and maintaining all environmental permits and licenses for the Product, and the Product’s compliance with all applicable environmental laws, rules and regulations, including capital costs for pollution mitigation or installation of emissions control equipment required to permit or license the Product, all operating and maintenance costs for operation of pollution mitigation or control equipment, costs of permit maintenance fees and emission fees as applicable, and the costs of all Emission Reduction Credits or Marketable Emission Trading Credits (including any costs related to greenhouse gas emissions) required by any applicable environmental laws, rules, regulations, and permits to operate, and costs associated with the disposal and clean-up of hazardous substances introduced to the site, and the decontamination or remediation, on or off the site, necessitated by the introduction of such hazardous substances on the site. “FCR” means the flexible capacity requirements established for LSEs by the CPUC pursuant to the CPUC Decisions, or by a Local Regulatory Authority or other Governmental Body having jurisdiction.

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“FCR Attributes” means, with respect to a generating unit, any and all resource adequacy attributes of the generating unit, as may be identified from time to time by the CPUC, CAISO, or other Governmental Body having jurisdiction, that can be counted toward an LSE’s FCR. “FERC” means the Federal Energy Regulatory Commission.
“Governmental Body” means any federal, state, local, municipal or other government; any governmental, regulatory or administrative agency, commission or other authority lawfully exercising or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power; and any court or governmental tribunal. This definition does not include “market participants” as defined in the CAISO’s Business Practice Manual for Definitions and Acronyms as published on the CAISO website. “Hold-Back Capacity” is defined in Article 7 of this Confirmation. “Local RAR” means the local resource adequacy requirements established for LSEs by the CPUC pursuant to the CPUC Decisions, by CAISO pursuant to the Tariff, or by any other Governmental Body having jurisdiction. Local RAR may also be known as local area reliability, local resource adequacy, local resource adequacy procurement requirements, or local capacity requirement in other regulatory proceedings or legislative actions.
“LSE” means “Load Serving Entity” as such term is defined in the Tariff. “Marketable Emission Trading Credits” means without limitation, emissions trading credits or units pursuant to the requirements of California Division 26 Air Resources; Health & Safety Code Section 39616 and Section 40440.2 for market based incentive programs such as the South Coast Air Quality Management District’s Regional Clean Air Incentives Market, also known as RECLAIM, and allowances of sulfur dioxide trading credits as required under Title IV of the Federal Clean Air Act (see 42 U.S.C. § 7651b.(a) to (f)). “Master Agreement” is defined in the introductory paragraph of this Confirmation. “MW” means megawatt.
“One-Time Payment” is defined in Section 3.1.
“Path” refers to the Path 26 transmission constraint which is surrounded by two zones; North of Path 26 (PG&E’s TAC) and South of Path 26 (SCE and SDG&E’s TACs), as identified by the Commission in D.07-06-029.
“Procurement Review Group” has the meaning set forth in CPUC Decision D. 02-08-071. “Product” is defined in Article 1 of this Confirmation. “RAR” means the resource adequacy requirements established for LSEs by the CPUC pursuant to the CPUC Decisions, by CAISO pursuant to the Tariff, or by any other Governmental Body having jurisdiction.

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“Re-sale Plan” is defined in Section 2.7(b) of this Confirmation. “Resold Product” is defined in Section 2.7 of this Confirmation. “SCID of Benefitting LSE” means the Scheduling Coordinator ID Code (SCID) of the Load Serving Entity (LSE) that will be using the Product toward meeting their RAR in the given Showing Month.
“Showing Month” means the calendar month that is the subject of the related Compliance Showing, as set forth in the CPUC Decisions and outlined in the Tariff. For illustrative purposes only, pursuant to the Tariff and CPUC Decisions in effect as of the Confirmation Effective Date, the monthly Compliance Showing made in June is for the Showing Month of August. “Shown Unit” means a Unit specified by Seller, but not necessarily identified by Seller to Buyer on the Confirmation Effective Date.
“Substitute Capacity” means “RA Substitute Capacity” as defined in the Tariff. “System RAR” means the system resource adequacy requirements established for LSEs by the CPUC pursuant to the CPUC Decisions, by CAISO pursuant to the Tariff, or by any other Governmental Body having jurisdiction.
“Tariff” means the Fifth Replacement FERC Electric Tariff and the associated CAISO protocol provisions, including any current CAISO-published “Operating Procedures” and “Business Practice Manuals,” in each case as amended or supplemented from time to time. “Unit” means any generation unit provided by Seller pursuant to Section 2.2 and any Shown Unit. “Unit EFC” means, with respect to a Unit on any date of determination, the lesser of the Effective Flexible Capacity of the Unit as set by CAISO as of (x) the Confirmation Effective Date and (y) such date of determination.
“Unit NQC” means, with respect to a Unit on any date of determination, the lesser of Net Qualifying Capacity of the Unit as set by CAISO as of (x) the Confirmation Effective Date and (y) such date of determination.

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APPENDIX B

PRODUCT AND PRICE INFORMATION
Product means Capacity Attributes with the following characteristics.

Contract Quantity and Contract Price
Showing Day,
Month, and
Year
Path
(North,
South)
RAR
Quantity
(MW)
Capacity
Area*
FCR
Quantity,
if any
(MW)
Flexible
Capacity
Category
(1,2,3)
Contract
Price
($/kW-Day)
SCID of
Benefitting
LSE

Resource Name Sanborn Solar 2 Edwards 5
Physical Location Mojave, CA
CAISO Resource ID EDWARD_2_ESSSB1
SCID of Resource TGEM
Unit NQC by month (e.g., Jan=50,Feb=65): Varies
Unit EFC by month (e.g., Jan=30, Feb=50) N/A
Minimum Qualified Flexible Capacity
Category (Flex 1, 2 or 3)
N/A
TAC Area (e.g., PG&E, SCE) SCE
Prorated Percentage of Unit Factor N/A
Prorated Percentage of Unit Flexible Factor N/A
Capacity Area (CAISO System, Fresno,
Sierra, Kern, LA Basin, Bay Area, Stockton,
Big Creek-Ventura, NCNB, San Diego-IV or
Humboldt )
System
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APPENDIX C

SUBSEQUENT SALE INFORMATION
Contract Key ID:

Benefitting LSE SCID:

Generic Volume (in MW):

Local Volume (in MW and by
local area):

Flexible Volume (in MW):

Term:

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APPENDIX D

NOTICE INFORMATION
Name: Party A / Buyer Name: Party B / Seller

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The Parties hereby agree that the General Terms and Conditions are incorporated herein, and to the following provisions as provided for in the General Terms and Conditions:

Party A Tariff: N/A
Party B Tariff: Dated Docket Number
Article Two
Transaction Terms and
Conditions
x Optional provision in Section 2.4. If not checked,
inapplicable.

Article Four
Remedies for Failure
to Deliver or Receive
o Accelerated Payment of Damages. If not checked,
inapplicable.

Article Five
Events of Default; Remedies x Cross Default for Party A: Not Applicable o Party A: Cross Default Amount $
o Other Entity: Cross Default Amount $
x Cross Default for Party B: Not Applicable
o Party B: Cross Default Amount $____
o Other Entity: Cross Default Amount $____

5.6 Closeout Setoff
x Option A (Applicable if no other selection is made.)
o Option B (as amended pursuant to this Cover Sheet)
o Option C (No Setoff)
Article Eight 8.1 Party A Credit Protection:

Credit and Collateral
Requirements
(a) Financial Information:
o Option A <if there is no Guarantor>
o Option B Specify: [Name of Guarantor]
<Guarantor, when there is one>
x Option C Specify: None

(b) Credit Assurances:
x Not Applicable
o Applicable
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(c) Collateral Threshold:
x Not Applicable
o Applicable

(d) Downgrade Event:
x Not Applicable
o Applicable
If applicable, complete the following:
o It shall be a Downgrade Event for Party B if
[Party B’s][Party B’s Guarantor’s] Credit
Rating falls below BBB- from S&P or Baa3
from Moody’s or if [Party B’s][Party B’s
Guarantor’s] is rated by neither S&P nor
Moody’s.
o Other:

Specify:

(e) Guarantor for Party B: N/A

8.2 Party B Credit Protection:
(a) Financial Information:
o Option A <if there is no Guarantor>
o Option B Specify: [Name of Guarantor]
<Guarantor, when there is one>
x Option C Specify: None

(b) Credit Assurances:
x Not Applicable
o Applicable

(c) Collateral Threshold:
x Not Applicable
o Applicable

(d) Downgrade Event:
x Not Applicable
o Applicable
If applicable, complete the following:

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o It shall be a Downgrade Event for Party A if
[Party A’s][Party A’s Guarantor’s] Credit
Rating falls below BBB- from S&P or Baa3
from Moody’s or if [Party A’s][Party A’s
Guarantor’s] is rated by neither S&P nor
Moody’s.
o Other:

Specify:
(e) Guarantor for Party A: None
Guarantee Amount:

Article Ten
Confidentiality x Confidentiality Applicable. If not checked, inapplicable.

Schedule M
x Party A is a Governmental Entity or Public Power System o Party B is a Governmental Entity or Public Power System o Add Section 3.6. If not checked, inapplicable
o Add Section 8.6. If not checked, inapplicable
Other Changes

1. The modifications to Section 1.12, 1.50 and 5.2 of the Master Agreement specified in that certain Errata published by the Edison Electric Institute (version 1.1, July 18, 2007) are hereby incorporated herein as if set forth in full.

2. Section 2.3 is amended by deleting in its entirety and replacing with the following:
“2.3 Confirmation. A Transaction shall be entered into only by a written confirmation in a form mutually agreeable to both Parties and signed by both Parties (“Confirmation”).

Notwithstanding anything to the contrary in this Master Agreement, this Master Agreement and any and all Confirmations may not be amended or modified except by an instrument in writing signed by both of the Parties.”

3. Section 2.5 is amended by (i) inserting the phrase “the scheduling and trading representatives of” immediately prior to the phrase “the Parties” in the third line, and (ii) adding the following sentence to the end: “To the extent that one Party records telephone conversations (the "Recording Party") and the other Party does not (the "Non-Recording Party"), the Recording Party shall, in the event of any dispute, make a complete and unedited copy of the Recording Party’s tape(s) of all conversations with the Non-Recording Party’s personnel relating to the relevant dispute available to the Non-Recording Party.”

4. In Section 10.6, delete “NEW YORK” and replace with “CALIFORNIA”.

5. The following shall be added as a new Section 10.12:

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“No Recourse Against Constituent Members of Party A. Party A is organized as a Joint Powers Authority in accordance with the Joint Exercise of Powers Act of the State of California (Government Code Section 6500, et seq.) and is a public entity separate from its constituent members. Party A will solely be responsible for all debts, obligations and liabilities accruing and arising out of this Agreement. Party B will have no rights and will not make any claims, take any actions or assert any remedies against any of Party A’s constituent members, or the officers, directors, advisors, contractors, consultants or employees of Party A or Party A’s constituent members, in connection with this Agreement.” DocuSignEnvelopeID:AC876ABC-2673-407A-B132-89278D0990DC Appendix A Edsan
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MASTER POWER PURCHASE AND SALE AGREEMENT

SUBSTITUTION RA CONFIRMATION LETTER
This confirmation letter (‘'Confirmation”) confirms the Transaction agreed to on the last dated signature on the signature page hereto (the “Confirmation Date”), between Calpine Energy Services, L.P., a Delaware limited partnership (“CES”). and Silicon Valley Clean Energy Authority, a California joint powers authority (“SYCEA”), each individually a “Party” and collectively the “Parties”, by which Seller agrees to sell and deliver, and Buyer agrees to purchase and receive, the Product, and is governed by the Edison Electric Institute Master Power Purchase and Sale Agreement between the Parties, and that certain Cover Sheet, effective as of March 9, 2018, and any other annexes and amendments thereto (collectively, as amended, restated, supplemented, or otherwise modified from time to time, the “Master Agreement”).

Capitalized terms not otherwise defined in this Confirmation or the Master Agreement are defined in the Tariff. References to Sections are references to Sections of this Confirmation unless stated to be references to Sections of the Master Agreement or a statute.

ARTICLE 1

TRANSACTION TERMS
Buyer: SVCEA
Seller: CES
Product, Resource Attributes, Delivery Period, Contract Quantity, Contract Price and other specifics of the Product are in Appendix B. Appendices A, B, C, and D are incorporated into this Confirmation.

ARTICLE 2

DELIVERY OBLIGATIONS

2.1 Sale and Delivery of Product
Seller shall deliver to Buyer the Product from the Unit(s) in the amount of Contract Quantity in accordance with Section 2.2 and subject to the Product Type requirements, as set forth below:
(a) If Firm Product is selected in Appendix B, then, subject to Section 2,4. if: (i) any portion of the Delivered Generic Capacity or the Delivered Flexible Capacity is less than the Generic Capacity or the Flexible Capacity, respectively; or (ii) the Delivered Generic Capacity or the Delivered Flexible Capacity fails to satisfy the Resource Attributes, in each case, for any reason, including without limitation any adjustment to a Unit NQC or Unit EFC or any Outage, then Seller shall be liable for damages and shall indemnify Buyer for penalties, fines or costs pursuant to Section 2.5(a) and Section 2.5(b).
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(b) If Unit Contingent Product is selected in Appendix B, then, subject to Section 2,4. if: (i) any portion of the Delivered Generic Capacity or the Delivered Flexible Capacity is less than the Generic Capacity or the Flexible Capacity, respectively; or (ii) the Delivered Generic Capacity or the Delivered Flexible Capacity fails to satisfy the Resource Attributes, in each case, for any reason, including without limitation any adjustment to a Unit NQC or Unit EFC or any Outage, except for Force Majeure or a Forced Outage associated with a Unit identified in the Transaction, then Seller shall be liable for damages and shall indemnify Buyer for penalties, fines or costs pursuant to Section 2.5(a) and Section 2.5(b).

2.2 Delivery of Product
Seller shall deliver to Buyer the Contract Quantity of Product consistent with the following and in accordance with the Product Type requirements set forth in Section 2.1:
(a) for each day of the Delivery Period, Seller shall cause the Unit(s) (including any Alternate Units) to be approved in the CIRA Tool and in the Day-Ahead Market for the next Trading Day. in each case: (i) prior to the CAISO deadline for submitting requests for RA Substitute Capacity in the Day-Ahead Market in accordance with the Tariff (the "RA Substitute Deadline'’); and (ii) in an amount sufficient to satisfy the Flexible Capacity, the Generic Capacity, and the Resource Attributes. For illustrative purposes only, as of the Confirmation Date, the RA Substitute Deadline for each day of the Delivery Period in connection with a Forced Outage is eight (8:00) am Pacific Time the day prior to each applicable day of the Delivery Period. The Parties acknowledge and agree that the RA Substitute Deadline may be modified by the CAISO from time to time throughout the Delivery Period;
(b) for each day of the Delivery Period, if Seller does not: (i) cause approval of the Unit(s) in the CIRA Tool; (ii) cause approval of the Unit(s) by the CAISO as RA Substitute Capacity and for inclusion in the Day-Ahead Market for the next Trading Day; or (iii) if the Unit(s) Seller is delivering from fail to satisfy the Resource Attributes, each in accordance with Section 2.2(a), then any such amount shall not be deemed Delivered Generic Capacity or Delivered Flexible Capacity, as applicable, and Seller shall not receive payment for such Product under this Confirmation; and
(c) if Seller is delivering Product to Buyer from more than one Unit, Seller shall deliver such Product to Buyer from each Unit in accordance with the Contract Quantity Unit Allocation, as set forth in Appendix B; provided. Seller may modify the Contract Quantity Unit Allocation (but not the Contract Quantity) from time to time by providing email notice to Buyer’s CIRA Tool contact, as set forth in Appendix C, no later than one (1) hour prior to the RA Substitute Deadline.
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2.3 Delivery of Product from Alternate Units
For each day of the Delivery Period, Seller has the right to deliver to Buyer all or any portion of the Contract Quantity of Product from one or more Units that meet the Product requirements specified in Appendix B (“Alternate Units’’’), provided Seller delivers email notice to Buyer’s CIRA Tool contact, as set forth in Appendix C, and such notice:
(a) indicates Seller’s intent to provide Product from one or more Alternate Units; and (b) includes a revised Contract Quantity Unit Allocation, if applicable, in each case no later than one (1) hour prior to the RA Substitute Deadline.

2.4 Buyer Obligations
For each day of the Delivery Period, Buyer shall: (a) cause the Unit(s) (including any Alternate Units) to be entered in the CIRA Tool and in the Day-Ahead Market for the next Trading Day, in each case no less than thirty (30) minutes before the RA Substitute Deadline, in an aggregate amount equal to the Contract Quantity and in accordance with the Contract Quantity Unit Allocation, if applicable, including the amount of Generic Capacity, Flexible Capacity, and Resource Attributes; and (b) email notice to Seller’s CIRA Tool contact, as set forth in Appendix C, immediately after Buyer causes the Unit(s) to be entered in the CIRA Tool.

If Buyer fails to cause the Unit(s) to be entered in the CIRA Tool or fails to notify Seller of such CIRA Tool entry, each in accordance with this Section 2.4. then: (i) Seller will be deemed to have delivered the Contract Quantity, including the Generic Capacity, Flexible Capacity, and Resource Attributes, in an amount (in MW) associated with such failure (the “Deemed Delivered Contract Quantity”); (ii) Buyer shall be obligated to pay Seller the Monthly Payment for such Deemed Delivered Contract Quantity; and (iii) Seller shall have no obligation under Section 2.5(a) and Section 2.5(b) with respect to such Deemed Delivered Contract Quantity.

2.5 Buyer’s Remedies for Seller’s Failure to Deliver Contract Quantity (a) Subject to Section 2,4. if: (i) the Delivered Generic Capacity or the Delivered Flexible Capacity provided by Seller to Buyer in accordance with Section 2.2 is less than the Generic Capacity or the Flexible Capacity, respectively, or does not satisfy the Resource Attributes, for any portion of the Delivery Period for any reason; or (ii) due to the actions or inactions of Seller the CAISO does not approve all or any portion of the Delivered Generic Capacity or the Delivered Flexible Capacity as RA Substitute Capacity for all or any portion of the Delivery Period, in accordance with the Tariff, then Seller shall pay to Buyer, at the time set forth in Section 4.1 of the Master Agreement, the damages specified in Section

4.1 of the Master Agreement.
(b) Subject to Section 2.4, Seller agrees to indemnify, defend and hold harmless Buyer from any penalties, fines or costs assessed against Buyer by the CPUC or the CAISO, resulting from the Delivered Generic Capacity or Delivered Flexible 3 DocuSign Envelope ID: FA6E368F-F783-45F1-823B-0640C9623E90 Appendix A Calpine
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Capacity is less than the Generic Capacity or Flexible Capacity, respectively, or does not satisfy the Resource Attributes, for any portion of the Delivery Period.

The Parties shall use commercially reasonable efforts to minimize such penalties, fines and costs; provided, Buyer shall not be required to use or change its utilization of its owned or controlled assets or market positions to minimize these penalties, fines and costs.

2.6 Resold Product
Buyer may resell all or any portion of the Product or any associated rights, in each case, acquired under this Confirmation, in accordance with Applicable Laws, including the Tariff and CPUC Decisions ("‘Resold Product”); provided, Buyer agrees to: (a) notify Seller that such a sale has occurred; (b) provide Seller with the information described in Appendix D; and (c) notify Seller of any subsequent changes to the information in Appendix D with respect to any particular sale; in each case, promptly following such sale and in no event later than two (2) hours before the RA Substitute Deadline. Buyer acknowledges and agrees that with respect to any Resold Product, Buyer shall cause subsequent purchasers to comply with the requirements of this Transaction, including but not limited to Buyer’s obligations in Section 2,4.

With respect to Resold Product, Seller agrees, and agrees to cause each Unit’s SC, to approve each Unit (including any Alternate Units) in CAISO’s CIRA Tool (or successor platform) and in the Day-Ahead Market for the next Trading Day, in accordance with Section 2.2 and as if such subsequent purchaser were Buyer under this Confirmation.

ARTICLE 3

PAYMENTS

3.1 Payment
In accordance with the terms of Article Six of the Master Agreement, Buyer shall make a Monthly Payment to Seller, after the applicable Showing Month, as follows:

Monthly Payment = A*(B+C)
where:

A = applicable Contract Price
C= 1
)
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D = Delivered Generic Capacity provided by Seller to Buyer pursuant to and consistent with Section 2.2 and subject to Section 2.4 for each applicable day of the Delivery Period; provided, in no event may the Delivered Generic Capacity be greater than the Generic Capacity
E = Delivered Flexible Capacity provided by Seller to Buyer pursuant to and consistent with Section 2.2 and subject to Section 2.4 for each applicable day of the Delivery Period; provided, in no event may the Delivered Flexible Capacity be greater than the Flexible Capacity
i = each day of the Delivery Period
n = number of days in the Delivery Period
The Monthly Payment calculation shall be rounded to two decimal places.

3.2 Allocation of Other Payments and Costs
(a) Seller will receive any revenues from, and must pay all costs charged by, CAISO or any other third party with respect to the Unit for (i) start-up, shutdown, and minimum load costs, (ii) capacity for ancillary services, (iii) energy sales, (iv) flexible ramping product, and/or (v) black start or reactive power services. (b) Seller agrees that each Unit is subject to the terms of the Availability Standards, Non-Availability Charges, and Availability Incentive Payments as contemplated under Section 40.9 of the Tariff. Furthermore, the Parties agree that any Availability Incentive Payments are for the benefit of the Seller and for Seller’s account, and that any Non-Availability Charges are the responsibility of the Seller and for Seller’s account.
(c) In accordance with Section 3.1 of this Confirmation and Article Six of the Master Agreement, all such Seller, Unit SC, owner or operator revenues described in this Section 3.2 received by Buyer or a Subsequent Buyer shall be remitted to Seller.

Buyer must promptly report receipt of any such revenues to Seller. Without prejudice to its other rights and remedies, Seller may setoff and recoup any such amounts that are not paid to it against any amounts owed to Buyer under the Master Agreement.

ARTICLE 4

OTHER BUYER AND SELLER COVENANTS

4.1 CAISO Requirements
Seller must schedule or cause the Unit’s SC to schedule or make available to CAISO the Contract Quantity of the Product in accordance with the Contract Quantity Unit Allocation, if applicable, including the amount of Generic Capacity, Flexible Capacity and Resource Attributes 5 DocuSign Envelope ID: FA6E368F-F783-45F1-823B-0640C9623E90 Appendix A Calpine
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for each Unit in compliance with the Tariff and CPUC Decisions, and shall perform all, or cause the Unit’s SC, owner, or operator to perform all. obligations under Applicable Law and the Tariff that are required for the sale and delivery of the Product hereunder. Buyer is not liable for, and Seller will indemnify and hold Buyer harmless from, the actions or inactions of Seller or the Unit’s SC, owner, or operator that fail to comply with the Tariff, and for any penalties, fines or costs imposed on Seller or the Unit’s SC, owner, or operator for any such noncompliance.

4.2 Seller’s and Buyer’s Duties to Take Actions to Allow Product Utilization Buyer and Seller shall, throughout the Delivery Period: (a) take all commercially reasonable actions and execute any and all documents or instruments reasonably necessary to ensure Buyer’s right to the use of the Contract Quantity, including the Generic Capacity, Flexible Capacity, and Resource Attributes, for the sole benefit of Buyer; (b) cause all bids to be submitted and approved in the CIRA Tool and in the Day-Ahead Market in conformance with the requirements of the CPUC Filing Guide and the Tariff; and (c) comply with the Tariff and CPUC Decisions. If during the Delivery Period, there are changes to the benefiting load serving entity’s capacity contract identifier number, the contract key identification number, or other information necessary to identify a Unit or a Unit SC by the CAISO or the CPUC, the Parties agree to communicate such changes to each other promptly.

4.3 Seller’s Representations and Warranties
Seller represents and warrants to Buyer throughout the Delivery Period that:
(a) no part of the Contract Quantity, including the Generic Capacity, Flexible Capacity and Resource Attributes, has been committed by Seller to any third party to satisfy Compliance Obligations or analogous obligations in any CAISO or non-CAISO markets; (b) the Unit qualifies under the Tariff for the Product, and the Unit and Seller are capable of delivering the Product;
(c) the aggregation of all amounts of Resource Attributes that Seller has sold, assigned, or transferred for the Unit during the Delivery Period does not exceed the Unit NQC and. if applicable, the Unit EFC, for that Unit; (d) if applicable, Seller has notified either the Unit's SC or the entity from which Seller purchased the Product that Seller has transferred the Contract Quantity, including the amount of Generic Capacity, Flexible Capacity and Resource Attributes, with respect to each day of the Delivery Period, to Buyer, and such SC is obligated to deliver the Contract Quantity for each day of the Delivery Period in accordance with Applicable Laws and this Confirmation; and (e) Seller owns or has the exclusive right to the Product sold under this Confirmation from each Unit in accordance with the Contract Quantity Unit Allocation, if applicable, and Seller shall furnish Buyer, the CAISO, the CPUC or other 6 DocuSign Envelope ID: FA6E368F-F783-45F1-823B-0640C9623E90 Appendix A Calpine
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Governmental Body having jurisdiction with such evidence as may be reasonably requested to demonstrate such ownership or exclusive right.

ARTICLE 5
ADDITIONAL MASTER AGREEMENT AMENDMENTS; GENERAL PROVISIONS

5.1 Termination Payment
For this Transaction, the following is added to the end of Section 5.3 of the Master Agreement:
“If Buyer is the Non-Defaulting Party and Buyer reasonably expects to incur or be liable for any penalties, fines or costs from CAISO, or any Governmental Body, because Buyer or a Subsequent Buyer is not able to include the applicable Contract Quantity in a Compliance Showing due to Seller’s Event of Default, then Buyer may, in good faith, estimate the amount of those penalties, fines or costs and include the estimate in its determination of the Termination Payment, subject to accounting to Seller when those penalties, fines or costs are finally ascertained. If this accounting establishes that Buyer’s estimate exceeds the actual amount of penalties, fines or costs, Buyer must promptly remit to Seller the excess amount with interest in accordance with Section 6.2 of the Master Agreement. The rights and obligations with respect to determining and paying any Termination Payment, and any dispute resolution provisions with respect thereto, survive the termination of this Transaction and continue until after those penalties, fines or costs are finally ascertained.”

5.2 Confidentiality
Notwithstanding Section 10.11 of the Master Agreement, (i) Buyer may disclose information in order to support its Compliance Showings or otherwise show it has met its Compliance Obligations; (ii) Seller may disclose to a Unit’s SC in order for such SC to timely deliver the Product; (iii) each Party may disclose information to the independent evaluator or other administrator of any competitive solicitation process of Buyer, which in turn may disclose such information to CAISO or any Governmental Body; and (iv) Buyer may disclose information to any Subsequent Buyer.

5.3 Collateral Requirements
Notwithstanding anything herein or in the Master Agreement to the contrary, Performance Assurance shall not be required from either Party in connection with this Transaction.

5.4 Governing Law
Nothing contained in this Confirmation shall be construed as a grant of CPUC jurisdiction over a Party not otherwise subject to such jurisdiction by law. 7 Calpine Energy Services, L.P.

By:
__________________________
Name: William Stokes
Title: Vice President
05/22/2024
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AGREED AS OF THE CONFIRMATION DATE:

Calpine Energy Services, L.P.

Title:

Date:

Name: Monica Padilla
Title:

Date:

CEO
5/22/2024
Silicon Valley Clean Energy Authority
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APPENDIX A

DEFINED TERMS
“Alternate Unit(s)” has the meaning set forth in Section 2.3. “Applicable Laws’" means any constitutions, treaties, laws, ordinances, rules, regulations, interpretations, permits, judgements, decrees, injunctions, writs and orders of any Governmental Body having jurisdiction over one or both Parties or this Transaction. “Availability Incentive Payments” has the meaning set forth in the Tariff. “Availability Standards” has the meaning set forth in the Tariff. “CAISO” means the California Independent System Operator Corporation, or any successor entity performing the same functions.
“CIRA Tool” means the CAISO’s Customer Interface for Resource Adequacy application, or successor platform.
“Compliance Obligations” means, as applicable, RAR, Local RAR and FCR. “Compliance Showings” means the applicable LSE’s compliance with the resource adequacy requirements of the CPUC for an applicable Showing Month. “Contract Price” means the price for the Product specified in the “Contract Price” column of the table set forth in Appendix B.
“Contract Quantity” means the amount (in MW) of Product that is either Generic Capacity, Flexible Capacity, or both Generic Capacity and Flexible Capacity, for each day of each applicable Showing Month as specified in the table set forth in Appendix B; provided that (i) Generic Capacity and Flexible Capacity are not duplicative, (ii) Contract Quantity is Generic Capacity only in the amount (in MW) identified in the ‘Generic Capacity’ column of the table set forth in Appendix B, (iii) Contract Quantity is Flexible Capacity only in the amount (in MW) identified in the ‘Flexible Capacity' column of the table set forth in Appendix B and (iv) Contract Quantity is both Generic Capacity and Flexible Capacity only in the amount (in MW) that is identified as both Generic Capacity and Flexible Capacity in the ‘Generic Capacity’ and ‘Flexible Capacity’ columns of the table set forth in Appendix B. “Contract Quantity Unit Allocation” means, if Seller is delivering Product to Buyer from more than one Unit, the allocation of Contract Quantity Seller will deliver from each Unit, as set forth in Appendix B and as modified by Seller from time to time in accordance with Section 2.2(c). “CPUC” means the California Public Utilities Commission. “CPUC Decisions” means any currently effective or future decisions, resolutions, or rulings related to resource adequacy.
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“CPUC Filing Guide” is the document maintained by the CPUC and published on its website which sets forth the guidelines, requirements and instructions for load serving entities to demonstrate compliance with the CPUC’s resource adequacy program, as modified, amended, supplemented or updated from time to time.
“Da\ -Ahead Market” has the meaning set forth in the Tariff. “Deemed Delivered Contract Quantity” has the meaning set forth in Section 2.4. “Delivered Flexible Capacity” means the Contract Quantity of Product that is Flexible Contract Capacity actually delivered by Seller to Buyer consistent with Sections 2.2 and 2.3. “Delivered Generic Capacity” means the Contract Quantity of Product that is Generic Contract Capacity actually delivered by Seller to Buyer consistent with Sections 2.2 and 2.3. “Delivery Period” means the period for delivery of Product specified in Appendix B. “FCR” means the Flexible Capacity requirements established for LSEs by the CPUC pursuant to the CPUC Decisions, the CAISO pursuant to the Tariff, or other Governmental Body having jurisdiction over Compliance Obligations and includes any non-binding advisory showing which an LSE is required to make with respect to flexible capacity. “Firm Product” means Product in which the delivery obligations are not subject to any conditions, as set forth in Section 2.1(a).
“Flexible Capacity” means, with respect to any particular Showing Month of the Delivery Period, the number of MWs set forth in the table in Appendix B under the heading ‘Flexible Capacity’, which Seller has agreed to provide to Buyer from the Unit(s) as part of the Contract Quantity for each day of such Showing Month, and which such MWs of Product are eligible to satisfy a load serving entity’s FCR and are part of the applicable Unit EFC. Flexible Capacity includes: (a) any changes made by the CAISO, the CPUC, or other Governmental Body that defines new or re-defines existing FCR, or attributes related to FCR, resulting in a decrease or increase in the amount of MWs associated with the Unit(s) that can be counted toward FCR; and (b) any and all current or future defined resource adequacy attributes, characteristics, certificates, tags, credits, ancillary service attributes, or accounting constructs, howsoever entitled, including any accounting construct associated with FCR, attributed to or associated with the Unit(s) throughout the Delivery Period.
“Forced Outage” has the meaning set forth in the Tariff. “Generic Capacity” means, with respect to any particular Showing Month of the Delivery Period, the number of MWs set forth in the table in Appendix B under the heading ‘Generic Capacity’, which Seller has agreed to provide to Buyer from the Unit(s) as part of the Contract Quantity for each day of such Showing Month, and which such MWs of Product: (a) are eligible to satisfy a load serving entity’s RAR and Local RAR (if applicable); (b) are part of the applicable Unit NQC; (c) are not eligible to satisfy a load serving entity’s FCR; and (d) are not part of the 10 DocuSign Envelope ID: FA6E368F-F783-45F1-823B-0640C9623E90 Appendix A Calpine
applicable Unit EFC. Generic Capacity includes: (i) any changes made by the CAISO, the CPUC, or other Governmental Body that defines new or re-defines existing Local Capacity Areas resulting in: (1) the applicable Unit subsequently qualifying for a Local Capacity Area; or (2) a decrease or increase in the amount of MWs associated with the applicable Unit that can be counted toward RAR or Local RAR (excluding FCR); and (ii) any and all current or future defined resource adequacy attributes, characteristics, certificates, tags, credits, ancillary service attributes, or accounting constructs, howsoever entitled, including any accounting construct associated with RAR or Local RAR (excluding FCR), in each case attributed to or associated with each Unit throughout the Delivery Period.
“Governmental Body” means any federal, state, local, municipal or other government; any governmental, regulatory or administrative agency, commission or other authority lawfully exercising or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power; and any court or governmental tribunal. “Local RAR” means the local resource adequacy requirements established for LSEs by the CPUC pursuant to the CPUC Decisions, by CAISO pursuant to the Tariff, or by any other Governmental Body having jurisdiction over Compliance Obligations. “LSE” means “Load Serving Entity” as such term is used in Section 40.9 of the Tariff. “Monthly Payment” means Buyer’s monthly payment obligation as described in Section 3.1. “MW” means megawatt.
“Net Qualifying Capacity” has the meaning set forth in the Tariff. “Non-Availability Charges” has the meaning set forth in the Tariff. “Outage” has the meaning set forth in the Tariff.
“Product” means the Generic Capacity, Flexible Capacity and the Resource Attributes of the Unit(s), in the amount of the Contract Quantity and in accordance with the Product Type for the Delivery Period, all as specified in Appendix B.
“Product Type” means either Firm Product or Unit Contingent Product, as specified in Appendix B.
“RAR” means the resource adequacy requirements established for LSEs by the CPUC pursuant to the CPUC Decisions, by CAISO pursuant to the Tariff, or by any other Governmental Body having jurisdiction over Compliance Obligations.
“RA Substitute Capacity” has the meaning set forth in the Tariff. “RA Substitute Deadline” has the meaning set forth in Section 2.2(a). 11 DocuSign Envelope ID: FA6E368F-F783-45F1-823B-0640C9623E90 Appendix A Calpine
“Resold Product” has the meaning set forth in Section 2.6. “Resource Attributes” means the locational, geographical and Unit characteristics of the Product, as specified in Appendix B.
“Showing Month” means the calendar month of the Delivery Period that is the subject of the related Compliance Showing, as set forth in the CPUC Decisions and outlined in the Tariff. For illustrative purposes only, pursuant to the Tariff and the CPUC Decisions in effect as of the Confirmation Date, the monthly Compliance Showing made in June is for the Showing Month of August.
“Subsequent Buyer” means the buyer of Product from Buyer in a re-sale of Product by Buyer. “Tariff’ means the CAISO Tariff, including any current CAISO-published “Operating Procedures” and “Business Practice Manuals,” in each case as amended or supplemented from time to time.
“Trading Day” has the meaning set forth in the Tariff.
“Unit” means the generation unit(s) described in Appendix B and any Alternate Unit, in each case from which Product is provided by Seller to Buyer. “Unit Contingent Product” means Product in which the delivery obligations are subject to the conditions set forth in Section 2.1(b).
“Unit EFC” means the effective flexible capacity (in MWs) of the applicable Unit pursuant to the counting conventions set forth in the CPUC Decisions and which such flexible capacity may be used to satisfy a load serving entity’s FCR. The Parties agree that if the effective flexible capacity of a Unit is adjusted pursuant to the CPUC Decisions after the Confirmation Date, then for the period in which the adjustment is effective, the Unit EFC shall be deemed the lesser of (i) the Unit EFC as of the Confirmation Date, or (ii) the effective flexible capacity of the Unit as adjusted by such subsequent CPUC Decisions.
“Unit NQC” means the Net Qualifying Capacity set by the CAISO for the applicable Unit. 12 DocuSign Envelope ID: FA6E368F-F783-45F1-823B-0640C9623E90 Appendix A Calpine

APPENDIX B

PRODUCT AND UNIT INFORMATION
Product:

KI RAR Local RAR Q Flexible Capacity
and all Resource Attributes related to such Product.

Product Type:

KI Firm O Unit Contingent
Resource Attributes:

Local Capacity Area (if any, as of the Confirmation Date): N/A Flexible Capacity (1, 2 or 3): N/A
Delivery Period:

Contract Quantity, Contract Price and Unit Allocation:

Showing
Month and
Day
Contract
Price
$/MW-day
Unit 1 Unit 2
Generic
Capacity
(MW/day)
Flexible
Capacity
(MW/day)
Generic
Capacity
(MW/day)
Flexible
Capacity
(MW/day)
Unit 1
Unit Specific Information
Unit Name Delta Energy Center Aggregate
Location Pittsburg, CA
CAISO Resource ID DELTA_2_PL1X4
Unit NQC (MW as of the Confirmation Date) 873
Unit EFC (MW as of the Confirmation Date)
Deliverability restrictions, if any, as described
in most recent CAISO deliverability
assessment
None
Run hour restrictions None
13 DocuSign Envelope ID: FA6E368F-F783-45F1-823B-0640C9623E90 Appendix A Calpine

APPENDIX C

CIRA TOOL CONTACT INFORMATION
Buyer’s Scheduling Coordinator CIRA
Tool Contact Information:

Seller’s Scheduling Coordinator CIRA
Tool Contact Information:
14 DocuSign Envelope ID: FA6E368F-F783-45F1-823B-0640C9623E90 Appendix A Calpine

APPENDIX D

RESOLD PRODUCT INFORMATION
Contract key identification:

Benefitting load serving entity SC identification number:

Resold Product contract quantity (in MW):

Resold Product generic capacity (in MW):

Resold Product flexible capacity (in MW):

Resold Product delivery period:

Resold Product purchaser's CIRA Tool name:

Resold Product purchaser’s CIRA Tool email:

Resold Product purchaser’s CIRA Tool phone number:

Confidential
15