New SV Clean Energy
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Subtitle
Item 2
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
FY 24-25 Proposed
Operating Budget Review
Amrit Singh
Finance and Administration Committee
August 6, 2024
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Item 2
Purpose
PRESENTATION
1. Review: Proposed budget
2. Action: Recommend approval to the
Board, with any suggested changes:
a) Proposed budget
b) Staff benefits upgrades
c) Reserve policy target levels
1. Review key highlights
2. Proposed budget forecast
3. Revenue forecast uncertainty
4. Power supply cost review
5. Other operating expenses
Merit/Cola adjustment
Transfer to programs
6. Review reserve targets
7. Office space update
8. Benefits upgrades
Item 2
PRESENTATION
FY24-25 Budget will be ready for Review in August
May 13 June 12 August 6 August 14
Discuss the high-level
budget framework with
the Finance and Admin
Committee
Discuss the high-level
budget framework with
the BOD
Review the draft
budget with the
Finance & Admin
Committee
December 11 February (tbd)
Present the draft
budget to the BOD
March 12, 2025
Present the
recommended budget
to the BOD for approval
Review adjustments to the
budget to reflect updates
to PCIA and PG&E gen
rate assumptions with the
Finance and Admin
Present the Review the mid¬
adjusted budget year budget with
to the BOD for the Finance and
approval Admin Committee
Present the mid¬
year budget to the
BOD for approval
Committee 3
1. Positive financial year with upside for a very
favorable year; Results highly uncertain
• Forecast year-over-year (YOY) revenues decrease
~$112 million
• Results highly dependent on CPUC’s adoption of Market Price Benchmarks (MPBs) in the fall
• Staff estimates for fall MPB update indicate results could improve by about $145 million if CPUC’s prices align with staff estimates
• Modest increase in Power Supply Costs of about 6%
• Increase driven by higher cost of clean resources, RA products, and higher load partially offset by lower energy forward prices. • Contribution to reserves remains positive at $14 million
2. Customer Discount
• Continue 4% discount with an additional 1%
directed to low-income customers as bill credits
• Revisit in December once there’s more certainty
on PG&E rates
3. Other Changes
• No additional full-time positions; Adjustment
of employee compensation for the cost of
living and merit (~6%)
• Delay decision on any additional spending until
the December budget refresh
Item 2
PRESENTATION
® Key Highlights of the Draft Budget
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SILICON VALLEY CLEAN ENERGY
FY 2024-25 OPERATING BUDGET
($ in thousands)
FY 2023-24 FY 2024-25
MID-YEAR
ADJUSTED PROPOSED
DESCRIPTION BUDGET BUDGET $ %
Energy Revenues 552,864 441,050 (111,814) -20.2%
Power Supply Expense 365,617 387,145 21,528 5.9%
Operating Margin 187,247 53,905 (133,342) -71.2%
Operating Expenses 32,116 36,433 4,318 13.4%
Non-Operating Revenue (Expense) 12,864 16,275 3,411 26.5% Annual Transfers and Other Expenses
Capital Outlay 50 1,002 952 1904.0%
Building Fund 20,000 (20,000)
Program Fund 28,874 8,821 (20,053) -69.5%
Nuclear Allocation 2,188 3,708 1,520 69.5%
Customer Bill Relief 4,300 4,411 111 2.6%
Hanford Emissions Mitigation Fund 1,800 1,800
BALANCE AVAILABLE FOR RESERVES 112,584 14,005 (98,579) -87.6% Change
Item 2
PRESENTATION
Proposed FY 24 vs. FY 23 Mid-Year Adjusted Budget
Margins Highly Uncertain •
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Item 2
PRESENTATION
PG&E has reduced gen
rates for the 2nd half of
2024 (effective July 1st,
2024)
PG&E Gen Rate
decreased -11.3% vs first
half of 2024
PCIA was slightly
increased in March from
1.01 c/kWh to 1.05 C/kWh
SVCE margin decreased
"12%
PG&E proposed to use last
year’s RA MPBs for setting
2025 rates
Current market prices for RA
and RPS are significantly
above last year’s MPB levels
Using last year’s MPBs,
SVCE margin dropped -28%
Y-o-Y
Current 2024 Rate Projected 2025 Rate -
Last Year RA/RPS*
Jul-Dec 2024
Rate***
PG&E Gen Rate:
Blended Jan-Dec Jan-Dec 2025 Rate*
2024 Rate
Jan-Jun 2024
Rate**
PG&E Gen Rate:
16.99 c/kWh
* Source: CaICCA NewGen Model analysis using market data as of 6/28/2024 and CPUC attribute benchmarks adopted for CY 2024 (Weighted for SVCE Portfolio Load) " PG&E Jan-Jun 2024 Average Rate, effective January 1, 2024 (Weighted for SVCE Portfolio Load) *** PG&E Jul-Dec 2024 Average Rate, effective July 1, 2024 (Weighted for SVCE Portfolio Load) Above margin analyses ignores minor reductions for franchise fees (0.09 <t/kWh) 6 Margins Highly Uncertain
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Item 2
PRESENTATION
Current market prices for RA
and RPS are significantly
above last year’s MPB levels.
Staff’s estimate of 2025
forecast RPS MPB is ~95%
higher than 2024 MPB
Staff’s estimate for 2025
system RA MPB is "120%
above 2024 MPB
CPUC uses a historical
volume-weighted average of
all IOU, CCA, and ESP market
transactions executed in a
specific time frame to set next
year’s MPBs.
Current 2024 Rate**
Blended Jan-Dec
2024 Rate
Projected 2025 Rate -
Last Year RA/RPS*
Jan-Dec 2025 Rate*
Projected 2025 Rate -
Estimated CPUC RA/RPS
MPBs***
Jan-Dec 2025 Rate
PG&E Gen Rate:
16.00 c/kWh
4% SVCE discount
•G&E Gen Rate:
16.69 <r/kWh
•G&E Gen Rate:
PCIA 0.06 <t/kWh
13.76 <t/kWh
4% SVCE discount
4% SVCE discount
* Source: CaICCA NewGen Model analysis using market data as of 6/28/2024 and CPUC MPBs (Market Price Benchmark) adopted for CY 2024 (Weighted for SVCE Portfolio Load) " Blended PG&E Jan-Jun 2024 & Jul-Dec 2024 Average Rate (Weighted for SVCE Portfolio Load) CaICCA NewGen Model analysis using market data as of 6/28/2024 and estimated CPUC MPBs for CY 2025 (Weighted for SVCE Portfolio Load) Above margin analyses ignores minor reductions for franchise fees (0.09 <t/kWh) 7 Item 2
PRESENTATION
Power Supply Costs
FY 2025 Cumulative Delta to FY2024 Mid-Year-Budget Over/(Under) ThroughSeptember 30,2025 ($MM) Increase Decrease Total
$450.00
$400.00 $52.6 $387.3
$9.3 $365.6
$350.00 $11.4 $4.5 ($3.9)
$300.00 ($62.9)
$250.00
$200.00
$150.00
$100.00
$50.00
FY 2024-25 Costs, forecasted at $387M, are
estimated to be ^$22M higher than FY23-24
at Mid-Year Budget
This is primarily driven by increased
costs for clean resources and RA
products and a projected increase in
customer load of 1.6%, partially offset by
lower forward energy market prices.
8 Item 2
PRESENTATION
1 Operating Expenses and Transfers
Sources of Operating Expense, Capital Outlay, and Transfer Amount Changes Operating Expenses Change (000s)* Implications/Reasons
Personnel Costs*
Staffing
Annualized Positions
COLA
Merit
$2,570
$0
$1,845
$363
$363
0 additional FTE positions
Vacancy Savings from MY budget; Promotions/Position Upgrades 3% COLA
3% budgeted for merit increases (avg)
Other Expenses $1,745 Add’l Data Management, PG&E fees, Marketing, G&A, and Professional Services ★Amounts include 5% operating expense contingency
Capital Outlay Amount (000s) Implications/Reasons
Office Building Expenses $1,002 Estimated renovation and furniture cost for new office space, in preparation for potential office move when current office lease ends in Oct’25.
Transfers Amount (000s) Implications/Reasons
Programs Transfer $8,821 2% of projected revenues
Nuclear Allocation $3,708 2023 PG&E Carbon Free Allocation Customer Bill Credit $4,411 1% of projected revenues
Hanford Emissions Mitigation Fund $1,800 Jun’24 BOD approved new program fund 9 •
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Item 2
PRESENTATION
Staff Recommendation:
Round upper target to 500
1 Review Reserve Targets
Stress test analysis was updated to reflect power
portfolio positions and assumptions consistent with
those used to develop the proposed budget as
well for corrections for some modeling errors.
Upper Reserve Target stays above 90
DCOH over the next 5 fiscal years
Set reserve targets such that if the
stress scenario were to occur:
Ensure SVCE maintains sufficient
reserves to manage risks such as
those modeled in the Stress Test
analysis.
Target threshold stays above 120 Days
Cash On Hand (DCOH) for the next two
fiscal years
Higher implied targets are driven by conservative RA
and RPS price assumptions
Increase target reserves to 350
Considerable market price uncertainty, especially for
Resource Adequacy (RA) and clean energy resources
Aligns with credit rating agency’s guidance that
DCOH in excess of 300 is credit positive
Reserve Targets (DCOH) Current Implied
Targets
Proposed
Minimum 120 120 120
Goal (Target) 300 342 350
Maximum (Upper Target) 490 713 500
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200
300
400
500
600
700
800
900
1,000
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 $ in Millions Total Adjusted Ending Reserves Target Reserves Max Reserves Min Reserves 547 Days
of Cash
on Hand
365 Days
of Cash
on Hand
350 Days
120 Days
500 Days
Reserves Forecast
Item 2
PRESENTATION
O Reserve Projection
Projected End of FY Reserves:
$442 Million
365 Days of Cash on Hand
Includes Unspent Program
Funds and Building Fund
If all Approved Programs Dollars
and Building Fund were Spent:
$346 Million in Reserves
285 Days of Cash on Hand
Reserve Projection shown with updated proposed FY24-25 reserve targets 11 •
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Item 2
PRESENTATION
SVCE New Office Space Update
At the June 28, 2024, meeting the Executive Committee concurred with the following strategy:
Staff to continue to research office building leasing options, as follows:
3-to-5-year lease term, flexible lease terms
Will explore the option to opt out early
Staff to target office space around 11,000 to 14,000 to accommodate growing staff and Board/Community room Target Sunnyvale, Mountain View, Campbell and Cupertino Allow for reasonable initial capital expenditure cost on renovation and furniture Estimated capital expenditure has been incorporated into FY24-25 proposed budget May need to consider a temporary extension of the current lease to accommodate the new lease agreement Revisit office building purchase options in 2028
Likely to enter an office building purchase agreement in FY28-29 The Board allocated funds for purchasing a building will remain in the Building Fund.
Proposed FY24-25 Budget includes the above considerations Actual lease and terms will be brought to the Board for consideration and approval in a closed session before the end of 2024
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Item 2
PRESENTATION
CD FY24-25 Proposed Benefit Changes
Add Cesar Chavez Day to the Holiday Schedule
Majority of CCAs and half of our member agencies provide the holiday With this addition, SVCE holidays will remain competitive but not excessive in comparison Increase Paid Parental Leave to 240 hours from 120 (within the first year for eligible employees) Most CCAs of similar size had much stronger parental leave As our agency and our workforce matures, parental leave is important for retention Increase Bereavement to 5 days (state compliance)
State law requires us to give 5 days (3 must be paid) but almost all mature organizations pay 5 Allow staff to accrue the annual $600 fitness reimbursement up to $3,000 Without adding dollars, allows for larger purchases and potentially better retention over the years Hybrid work reimbursable: $500/one-time home office set up (previously approved during COVID, but not added as ongoing)
With ongoing hybrid/remote work being one of our employees’ favorite benefits, we want to continue to boost comfortability by supporting home office initial setup for new employees as we did for all during COVID * Full Benefits Summary in Appendix 13
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• Delay decisions on additional expenditures
• More funding for programs is needed over time but is
currently well funded to engage staff fully.
• In the near term, pursue office building leasing options and revisit purchasing building around 2028
Item 2
PRESENTATION
Summary -Positive Year But
Results are Highly Uncertain
Biggest risks include late-year adjustments to PCIA
/ PG&E Gen Rate and significant price volatility for
RA and clean energy resources
Keep the current customer discount rate of 4% and
an additional 1% towards bill credits for low-income
customers.
Revisit once there’s more certainty on PG&E and
PCIA rates.
Many Risks can Deplete Reserves
Market Prices
Reduced Revenues
via Higher PCIA and
Lower PG&E Rates;
IncreasedPower
Supply Expense
SUPPLY
Project delays;
PPAs Default or
Renegotiate for
Higher Pnces
L&R ISSUES
IRP. RPS, RA
Reform/Penalties,
PCIA. POLR
PAYMENTS LOAD LOSS CYBER-RISK
Customer Defaults Direct Access Hardware, Software,
and Potential for and Training to combat
Expansion Ransomware and
Phishing
Rate Increasesdue
to socialized wildfire
costs.Energy Price
Increaseswill
ultimately impact
usage and
electrification
14 Recommend that the Board of Directors approve the
proposed:
• FY 2024-25 operating budget
• Benefits changes
• Reserve policy target and upper target levels
Item 2
PRESENTATION
Recommendation
15 Item 2
PRESENTATION
Thank you! / Questions?
16 ($ in Thousands)
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Operating Revenue (Budget) (Forecast) (Forecast) (Forecast) (Forecast) Electricity Sales, Net1 $438,837 $573,975 $608,968 $558,344 $537,314 GreenPrime Electricity Premium $2,213 $2,234 $2,260 $2,296 $2,340 Total Operating Revenues $441,050 $576,209 $611,228 $560,640 $539,654 Operating Expense
Power Supply $387,145 $436,863 $446,138 $434,784 $436,707 Operating Margin $828,195 $1,013,072 $1,057,366 $995,425 $976,361 Data Management $3,734 $3,920 $4,116 $4,322 $4,538
PG&E Service Fees $1,516 $1,592 $1,672 $1,755 $1,843
Salaries and Retirement $17,388 $18,258 $19,171 $20,129 $21,136 Professional Services $9,370 $9,838 $10,330 $10,846 $11,389 Marketing & Promotions $1,617 $1,698 $1,783 $1,872 $1,965 General and Administration $2,808 $3,844 $4,036 $4,238 $4,450 Transfers to Programs Fund $18,740 $11,524 $12,225 $11,213 $10,793 Total Operating Expenses $442,318 $487,538 $499,471 $489,161 $492,822 Operating Income $(1,268) $88,671 $111,757 $71,480 $46,832 Nonoperating Revenue
Investment Income $16,299 $14,651 $15,820 $15,440 $13,182 Total Non-Operating Revenues $16,299 $14,651 $15,820 $15,440 $13,182 Nonoperating Expense
Financing Cost $24 $24 $24 $24 $24
Capital Outlay $1,002 $50 $50 $50 $50
Total Non-Operating Expense $1,026 $74 $74 $74 $74
Non-Operating Income $15,273 $14,577 $15,746 $15,366 $13,108 Change in Net Position/Available for Reserves $14,005 $103,247 $127,503 $86,846 $59,940 Begin, Net Position $473,838 $469,996 $551,765 $658,068 $731,141 Adjustment for Program Expenditure and Building Fund2
$(17,847) $(21,478) $(21,201) $(13,773) $(24,600)
End, Net Position $469,996 $551,765 $658,068 $731,141 $766,481
Days Cash On Hand (DCOH) at Year End $441,975 $523,744 $630,047 $703,119 $738,460 Days of cash on hand 365 392 460 525 547
Each year the Board transfers funds from the Operating Budget to the Decarbonization Programs Fund as shown in the above forecast under line item Transfers to Programs Fund. The line item Adjustment for Program Expenditure accounts for the difference between forecasted spend for programs versus the amount transferred to the fund. This adjustment is needed because program spending to date has been less than the amount transferred to the programs fund. The $20 million in building Fund is assumed to be spent in FY28-29.
Assumptions: 4% overall discount relative to comparable PG&E rates for FY 24-25 and FY 25-26. FY 24-25 includes additional bill credit to low income customers totaling $4.4 million. 1% discount for FY26-27, FY27-28 and FY28-29.
Item 2
PRESENTATION
5-Year Forecast
2 17
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Item 2
PRESENTATION
PG&E filed its forecast of
2025 Rates on 5/15/24
Two methodologies were
proposed for calculating
ERRA, using existing and
revised common cost
allocations.
PG&E used energy forward
market prices as of March
28, 2024.
PG&E Gen Rate down
"10.1% (A) and 12.8% (B).
PCIA up significantly.
PG&E proposes to cap the
RAMPBs at the 2024 RA
MPB
The projected 2025 Rate,
used in the FY2025
Budget deteriorated
further due to weaker
energy market prices
Current Blended
2024 Rate
Projected 2025
Rate- PG&E
ERRA A
Projected 2025
Rate- PG&E
ERRAB
Projected 2025 Rate -
Last Year RA/RPS
Blended Jan-Dec
2024 Rate*
Jan-Dec 2025
Rate**
Jan-Dec 2025
Rate**
Jan-Dec 2025
Rate***
PG&E Gen Rate:
18 ‘ Source: Blended PG&E Jan-Jun 2024 & Jul-Dec 2024 Average Rate (Weighted for SVCE Portfolio Load) " Estimated rate, based on PG&E ERRA filings (Weighted for SVCE Portfolio Load) *** CaICCA NewGen Model analysis using market data as of 6/28/2024 and CPUC attribute benchmarks adopted for CY 2024 (Weighted for SVCE Portfolio Load) Above margin analyses ignores minor reductions for franchise fees (0.09 <t/kWh) PG&E Gen Rate:
16.00 <r/kWh
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Item 2
PRESENTATION
Power Supply Costs
FY 2025Cumulative Delta to Mid-Year-Budget Over/(Under) Through September 30,2025 ($MM) Increase Decrease Total
FY 2024-25 Costs, forecasted at $387M, are
$30M less than forecasted at the mid-year
budget.
Favorable Drivers
Drop in forward prices
More favorably priced PPAs coming
online, resulting in a lower need for
energy supply and environmental
products
Lowered Clean target to 90% per board
directive 6/12/2024
19 Forward Energy Prices (NP15)
2024 2025 2026 2027 2028 2029
6/28 (Budget run)
On-Peak 50.75 64.77 67.00 65.72 62.99 62.12
Off-Peak 47.95 63.78 70.23 72.97 74.48 72.80
ATC (Around-the-Clock) 49.52 64.34 68.42 68.90 68.05 66.81 3/28 (PG&E ERRA run)
On-Peak 56.13 65.73 66.45 64.68 61.75 61.10
Off-Peak 51.24 63.24 71.59 72.85 73.97 70.72
ATC (Around-the-Clock) 53.98 64.64 68.71 68.26 67.14 65.33 ATC Price % change
-8% 0% 0% 1% 1% 2%
45 50
55 60
65 70
75 2024 2025 2026 2027 2028 2029
6/28/2024 (2025 Budget run) 3/28/2024 (PG&E ERRA run)
Item 2
PRESENTATION
Forward Energy Price Comparison
Budget Run (6/28/2024) vs ERRA Forecast Run (3/28/2024) Forward Energy Prices (NP15)
20 Forward Energy Prices (NP15)
2024 2025 2026 2027 2028 2029
6/28/2024 (2025 Budget run)
On-Peak 50.75 64.77 67.00 65.72 62.99 62.12
Off-Peak 47.95 63.78 70.23 72.97 74.48 72.80
ATC (Around-the-Clock) 49.52 64.34 68.42 68.90 68.05 66.81 3/28/2024 (PG&E ERRA run)
On-Peak 56.13 65.73 66.45 64.68 61.75 61.10
Off-Peak 51.24 63.24 71.59 72.85 73.97 70.72
ATC (Around-the-Clock) 53.98 64.64 68.71 68.26 67.14 65.33 2/10/2024 (2024 Mid-Year Budget run)
On-Peak 68.51 72.56 71.33 70.45 64.51 66.47
Off-Peak 59.25 68.00 73.49 74.69 75.88 76.25
ATC (Around-the-Clock) 64.45 70.56 72.28 72.31 69.52 70.77 ATC Price % change
2025 Budget vs ERRA -8% 0% 0% 1% 1% 2%
2025 Budget vs 2024 MY Budget -23% -9% -5% -5% -2% -6%
45 50
55 60
65 70
75 2024 2025 2026 2027 2028 2029
6/28/2024 (2025 Budget run)
3/28/2024 (PG&E ERRA run)
2/10/2024 (2024 Mid-Year Budget run)
Item 2
PRESENTATION
O Forward Energy Price Comparison
2025 Budget Run (6/28/2024) vs ERRA Forecast Run (3/28/2024) vs 2024 Mid-Year Budget Run Forward Energy Prices (NP15)
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3000
3500
4000
4500
5000
5500
6000
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 GWh
Total Retail Sales Forecast
2022 IEPR 2024 IEPR 2023 OF 2024 OF Actual
Item 2
PRESENTATION
Medium-Term Load Forecast
Since 2023, SVCE began forecasting
load in-house after using a third-party
service since inception.
2024 IEPR is lower than 2022 IEPR
due to lower population forecast.
2024 Operating Forecast (“OF”)
begins to grow slower than 2024 IEPR
from year 2025 due to more realistic
BE forecast.
EVs will drive growth, especially near
term. However, SVCE territory should
lag the state average, since it already
has higher % of Evs.
By 2030 BE begins to play larger role
in growth trajectory due to
widespread heat pump adoption.
“OF” -Operating Forecast 22
Item 2
PRESENTATION
Long-Term Load Forecast by Sector
Share of SVCE Sales by Class
2024 2030 2035 2045
Residential 32% 35% 40% 41% Load Modifiers
Small
Medium
24% 20% 19% 23% Near-term: BTM PV, Long-term: public EV charging Large 37% 35% 32% 28% Economy
Agriculture 1% 1% 1% 1% Held Constant
Lighting 0% 0% 0% 0% Change in Residential Customers, but minimal impact Item 2
PRESENTATION
Gwh
Medium-Term Load Forecast by Sector
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
Annual Retail Sales Forecast by Class
4,271 4,111 4,186 4,007 4,055
43% 43% 42%
22% 22% 22%
33% 33% 34%
FY2026 FY2027 FY2028
Residential
Large Commercial
mmLight
Small/Medium Commercial
mm Agriculatural
Total
24 Item 2
PRESENTATION
GWh
Medium-Term Load Forecast
Monthly Retail Sales Forecast ComparedtoHistoricals
450
400
350
300
250
200
150
100
50 0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
— — -
FY2018
— — — FY2019— — -
FY2020
— -— FY2021
— — — FY2022 FY2023—FY2024
—FY2025 25
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500
600
700
800
900
1,000
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 $ in Millions Total Adjusted Ending Reserves Target Reserves Max Reserves Min Reserves 547 Days
of Cash
on Hand
365 Days
of Cash
on Hand
300 Days
120 Days
490 Days
Reserves Forecast
Item 2
PRESENTATION
Reserve Projection (FY23-24 Reserve Targets)
Projected End of FY Reserves:
$442 Million
365 Days of Cash on Hand
Includes Unspent Program
Funds and Building Fund
If all Approved Programs Dollars
and Building Fund were Spent:
$346 Million in Reserves
285 Days of Cash on Hand
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Item 2
PRESENTATION
Staffing-No New Positions To Request in Proposed FY24-25 Budget Current Staffing
62 Authorized FTE
56 filled FTE
6 current vacancies
3 Intern positions
3 Part-time employees
3 Climate Corps Fellows
1 Long-term independent consultant
Personnel Authority
CEO can approve job titles, salary ranges,
and org chart positions
Positions can be swapped/changed and
added within Board-approved budget
Additions will not exceed 10% of
authorized number shown in budget
Changes/hires communicated in next CEO
report to Board
No additional FTE request in Proposed FY24-25 budget
Previous FY FTE Request Summary FTE
Authorized in the FY23-24 Annual Budget 58
Feb’24 CEO Personnel Authority +3
Authorized in the Midyear 23-24 Budget +1
Current Authorized FTE Total 62
27 14
21 25 25 27 27
31 32
38 39
49 49
58 62 62
0 10
20 30
40 50
60 70
0 2
4 6
8 10
12 14
16 18
Sep-17 Jan-18 May-18Sep-18 Jan-19 May-19Sep-19 Jan-20 May-20Sep-20 Jan-21 May-21Sep-21 Jan-22 May-22Sep-22 Jan-23 May-23Sep-23 Jan-24 May-24Sep-24 $MM / FTE
Rev ($MM) / FTE Cost ($MM) / FTE FTEs
Item 2
PRESENTATION
CD Revenues/FTE; Energy/FTE
Revenue and Energy Costs / FTE have remained fairly flat over time.
Accounts Revenue
($MM)
Net Position
($MM) FY 22-23 FY 23-24 FY 24-25 Budget Revenue ($MM/FTE) FY23-24 Silicon Valley Clean Energy 280,000 $512.9 $324.5 49 58 62 $8.8 Peninsula Clean Energy 310,000 $431.2 $307.6 39 50 63 $8.6 Central Coast Community Energy 450,000 $461.3 $241.9 43 52 59 $8.9 Clean Power Alliance 1,071,800 $1,169.5 $211.6 69 75 Unavailable $15.6 Ava Community Energy 640,000 $824.0 $361.6 68 78 Unavailable $10.6 MCE 500,550 $644.8 $244.2 76 84 Unavailable $7.7
CCA Comparisons
CCA Name
FY 23-24 Staffing
Data is based on information available and reported online or from peer agency feedback; the timeline for comparisons may not align because each organization has a different budgeting and planning cycle, but they are meant to provide general patterns for comparison.
Item 2
PRESENTATION
O CCA Staffing Comparisons
Item 2
PRESENTATION
Cost-of-Living & Adjustment (COLA) & Merit Increase
Proposals
Current 3.00% COLA based on SF Bay Area CPI; smoothed over trailing months; Additional Merit/promotional increases at CEO discretion Chart 1. Over-the-year percent change in CPI-U, San Francisco-Oakland-Hayward, CA, June 2021-June 2024
Source: U.S. Bureau of Labor Statistics.
Year COLA
FY17-18 3.00%
FY18-19 4.00%
FY19-20 4.00%
FY20-21 0.00%
FY21-22 5.00%
FY22-23 5.30%
FY23-24 4.33%
FY24-25 3.00%
Source: Consumer Price Index, San Francisco Area — U.S. Bureau of Labor Statistics (bls.gov) 30 SVCE PG&E SVCE PG&E SVCE PG&E SVCE PG&E
Rate Schedule (eff. July 1, 2024) E-TOUC E-TOUC B-1 B-1 B-10 B-10 B-19S B-19S Average Usage (kWh/month) 491 491 1,851 1,851 22,540 22,540 148,625 148,625 Annual Peak Demand (kW) 499 499
PG&E Electric Delivery $ 124.84 $ 124.84 $ 482.30 $ 482.30 $ 4,755.94 $ 4,755.94 $ 25,884.53 $ 25,884.53 Electric Generation $ 68.34 $ 77.36 $ 246.10 $ 278.69 $ 3,169.39 $ 3,588.37 $ 19,964.14 $ 22,570.19 PG&E Added Fees (PCIA, Franchise) $ 5.93 $ 21.43 $ 275.44 $ 1,703.24 Average Total Cost $ 199.10 $ 202.20 $ 749.84 $ 760.98 $ 8,200.77 $ 8,344.31 $ 47,551.91 $ 48,454.72 Average Monthly Savings $ 3.09 $ 11.15 $ 143.53 $ 902.81 Residential Small Commercial Medium Commercial Large Commercial Item 2
PRESENTATION
(^) Typical Customer Bill Savings
(Current Rates)
Item 2
PRESENTATION
1 CCA Comparison - Reserve Targets
Reserve Targets Min Goal Max
Silicon Valley Clean Energy 120 300 490
Peninsula Clean Energy n/a 180 250
Clean Power Alliance 72 120 144
Ava Community Energy 90 180 270
MCE - 240 -
Sonoma Clean Power 180 280 280
32 Spent,
$22M
Available Now,
$56M
Available
Soon, $26M
Future/Still
Planning, $12M
Programs Fund Availability
Item 2
PRESENTATION
Programs capacity is increasing
$116M allocated over the last
"5 years
~$60M allocated within last 2
years
FY24 program spending on
track to be almost 2x higher
than FY23
Some programs are open
multiple years so may take
time to ramp up spending
SILICON VALLEY
CLEAN ENERGY
Available Now: Open to customers -includes available and reserved customer incentives (e.g. FutureFit Homes), or funds contracted with a vendor (e.g. eHub, fleet electrification support) Available Soon: In a planning phase, but will launch by "December 2024 Future/Still Planning: Won’t launch until after December 2024 and funds not currently earmarked for a program 33 Item 2
PRESENTATION
Health Insurance
Employer Premium Contribution SVCE provides up to $1,500 per month to cover the employee and dependent insurance premiums - health, dental and vision. 1 J LJ 11 11lo
Overview
Medical Coverage is provided through the CdJChpice marketplace, and currently includes the following options:
Kaiser — HMO plans
Sutter Health — HMO plans
Anthem Blue Cross — PPO plans
Cigna -EPO G
2024/2025
Proposed benefits overview
-includes changes noted in
Slide 17, in red.
Dental Delta Dental PPO
Vision Vision PPO Plan
Retirement
401 (a) Plan Mandatory 10% employee contribution matched by 1 0% employer contribution in lieu of Social Security. Fully vested from date of hire. 457 (b) Deferred Compensation Voluntary pre-tax employee contributions up to annual IRS limits.
HRA -or- has
Health Reimbursement Account SVCE contributes $500 / month towards a Health Reimbursement Account that the employee can use for qualified health care expenses. Unused balances can be carried over to the next year.
Health Savings Account
(only with eligible High Deductible
Health Plans)
SVCE contributes up to $400 / month towards a Health Savings Account that the employee can use for qualified health care expenses. Balance can be invested and stays with employee after separation.
FSA — Health / Dependent Care /
Transportation / Parking
Employer Contribution SVCE contributes $200 / month towards flexible spending accounts that can be used for qualified expenses in the categories below. Employee can contribute additional funds up to the IRS limits.
Health Spending Account Employee can annually contribute up to $3,200 pre-tax to their Health FSA. A maximum of $640 rolls over for 2024.
Dependent (Child / Elder) Care
Assistance
Employee can annually contribute up to $5,000 pre-tax to their Dependent Care account. Funds do no roll over.
Transit / Parking Plan Non-taxable reimbursement of up to $315 per month for qualified transit and parking expenses.
34 Item 2
PRESENTATION
Health / Wellness
(continued)
Employee Rebate Reimbursement 2024/2025
Proposed benefits overview
-includes changes noted in
Slide 17...
Benefits
Overview
Fitness Reimbursement Program SVCE will reimburse up to $600 / year
(class / program / equipment) per yearjlhis reimbursement will accrue| | annually up to $3000. J
Professional Development
Tuition Reimbursement Program SVCE will reimburse up to $5,000 / year for qualified educational
advancement that supports the organization’s mission.
SVCE Employees are eligible to
receive the same rebate benefits as
its customers
SVCE rebates are available for single-family homes, accessory dwelling units (ADUs), and multi-family homes (4 dwelling units or fewer) swapping out existing equipment, not for completely new building construction. Each dwelling unit is eligible for one rebate per appliance type.
Miscellaneous
Short Term Disability Insurance STD provided at 60% of weekly earnings subject to terms of STD insurance carrier and cap based on salary.
Long Term Disability Insurance LTD provided at 60% of monthly earnings subject to terms of LTD insurance carrier and cap based on salary.
Term Life Insurance 1 00% Employer-paid $200,000 life and AD&D coverage (guaranteed at $50,000).
Employee Assistance Program (EAP) 1 00% Employer-paid confidential counseling for you and your immediate family member and work/life services assistance.
Hybrid Work Set up |One time $500 reimbursable for home Technology Stipend $120 monthly stipend for phone and internet connection costs Voluntary Term Life and AD&D Rates |
Voluntary term life monthly rate Voluntary term life rates do not include the AD&D rate. The spouse is charged based upon his/her individual age.
Child(ren) monthly rate: $10,000 of coverage for $2.00 per family Voluntary Accidental Death and
Dismemberment (AD&D) monthly rate
Employee and spouse $.039
35 Item 2
PRESENTATION
Benefits Overview
2024/2025
Proposed benefits overview
-includes changes noted in
Slide 17...
(continued)
Leave
Vacation Leave SVCE offers 1 60 hours of Paid Time Off (PTO) that is accrued bi-weekly for the first year. PTO includes vacation, sick, etc.
After the first-year anniversary date, an additional 8 hours will be granted per year up to the tenth year of employment.
All unused PTO at the end of the year can be carried over to a maximum of twice the annual accrual.
Exempt employees receive an additional 40 hours of Management Leave at the beginning of each calendar year, which does not carry over to the next year.
Holidays 1 2 days (88 hours) per year.
New Year’s Day
Martin Luther King Jr.’s Birthday
Presidents’ Day
^Cesa^C^^^^^^^^j
Memonanjay
Juneteenth
Independence Day
Labor Day
Veteran’s Day
Thanksgiving (2 days)
Christmas Day
Administrative Shut-Down Leave Christmas Day though New Year’s Day Bereavement Leave Up to 5 days paid bereavement leave in the event of a death in your immediate family.
Parental Leave If you have worked at least 1 2 months and for at least 1,250 hours in the previous 1 2 months you will be eligible for1240 hours of paid parental 1 |
leave in the first 1 2 months
Item 2
PRESENTATION
CD CCA Parental Leave
CCA Parental leave data is based on CCA
input to survey questions, not all CCAs
provided input or refreshed data
CCA #
employees:
Do you provide Paid Parental Leave in addition to
Mandated CA Pregnancy Disability Leave, If so how
many hours?
SDCP 55 6 weeks or 240 Hours. Benefit reduced for Reg PT employees on prorated basis.
Sonoma
Clean Power
44 SCP employees eligible for up to 160 hours of paid bonding leave.
Marin Clean
Energy
94 Yes, 30 days (240 hours)
Peninsula
Clean Energy
50 We follow state regulations.
Additional supplemental leave of 240 hours to FT EES employe 6+ months.
-The first 120 hours of which are 100% paid, (or 120/8
hours=15 days for FT EE)
AVA 77 16 weeks (640 hrs)
Silicon
Valley
Clean
Energy
58 Yes: 120 hours (current FY 23/24 approval)
37 Item 2
PRESENTATION
CD Holiday
Cesar Chavez Day
Agency Comparitor #of agencies observing # of agencies NOT observing CCA 8 5
Member Agency 5 5
Indigineous People Day
Agency Comparitor #of agencies observing # of agencies NOT observing CCA 7 6
Member Agency 4 6
indigenous People Day is another holiday that many agencies have added and was under consideration, but it was not requested in this budget cycle. The data is based on online availability in June. 38 Item 2
PRESENTATION
O Holiday Comparison Among CCAs
Holiday VCE 3CE SCP CPA MCE AVA RCEA SVCE Pioneer
Martin Luther King Jr.'s Birthday X X X X X X X X X
Lincoln's Birthday X
President's Day X X X X X X X X X
Cesar Chavez Day X X X X X
Good Friday
Memorial Day X X X X X X X X X
Juneteenth X X X X X X X
Independence Day X X X X X X X X X
Labor Day X X X X X X X X X
Indigenous peoples day X X
Veterans Day X X X X X X X X X
Thanksgiving X X X X X X X X X
Day after Thanksgiving X X X X X X X X X
Day before Christmas X X
Christmas Day X X X X X X X X X
New Year's eve X X X X X
10 12 11 14 13 14 13 12 13
*Data is based on CCA input to survey question, not all CCAs input or refreshed data 39 Item 2
PRESENTATION
1Holiday VCE 3CE SCP CPA MCE AVA RCEA SVCE Pioneer
Floating Holidays 2 3 2 3 3 3 1
Shut down 4 3 3 3
Admin or Management Leave (various levels) 10 5 10
12 15 13 17 13 17 16 12 14
Regular, full-time employees accrue 6.67 hours of PTO
per pay period (24 pay periods per year) in your first
year
of eligibility -160 hours.
20 20 20 15 15 15 15 20 10
Total PTO 32 35 33 32 28 32 31 32 24
Total Sick Leave 10 0 0 12 12 12 12 0 12
Total Combined Paid Leave 42 35 33 44 40 44 43 32 36
*Data is based on CCA input to survey question, not all CCAs input or refreshed data 40 •
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Item 2
PRESENTATION
(rj Recap: Revenue Forecast Depends on PG&E Generation and PCIA Rates
Issue: Rate Uncertainty Staff Recommendation Implications/Reasons PG&E issued the 2024 ERRA forecast
on May 15 with preliminary 2025
PG&E generation and PCIA rate
forecasts
PG&E will update this forecast in the
fall. CPUC normally adopts the rate in
December based on this update
Update the Cal-CCA NewGen model
using lasted energy price data after
calibrating the model to PG&E’s
forecasted rates and making any
adjustments to account for potential
modeling errors
Likely aligns revenues closer to
rates that PG&E will update in
October
Better aligns revenues with power
supply costs
Primarily for budget setting
purposes
Additional expenditures based on
headroom projections can be
made by the Board in December
when there’s more information on
likely 2025 PG&E gen and PCIA
rates
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PRESENTATION
Power Supply Expenses
(>90% of Expenses)
Issue: Volatile Power Prices Staff Recommendation Implications/Reasons Power prices are very volatile and have
declined significantly.
In addition to power price volatility, recent
volatility in RA and RPS prices makes
budget projections highly uncertain
Budget has been developed based on a
snapshot of market prices in July 2024
Contract delays/renegotiations further add
uncertainty
Continue hedging to current ERM (Energy
Risk Management) targets
Staff to develop additional analysis
to revisit the hedging targets to
account for impacts from PCIA and
PG&E Gen Rate
The BOD has authorized 90% clean
energy target for calendar year 2025
The budget projection for power supply
costs reflects the updated clean energy
target for FY24-25
Resource adequacy requirements are
changing, and costs are high. Slice of Day
methodology is expected to be
implemented in January 2025, and the
portfolio is well positioned for its
implementation.
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Item 2
PRESENTATION
0^ Other Costs
(Staffing, Cost of living/Merit, Building)
Status Staff Recommendation Implications/Reasons
Review and assess staffing in all areas
of the organization
13 new budgeted positions added in
FY23-24
14 new staff hired since Sept 2023
9 vacancies
Adjust employee salaries for cost-of-living and merit/promotions Review existing employee benefits to
remain competitive with peer CCAs
Finalize office lease with authorized
parameters by Oct 2024.
Current budgeted headcount of 62
Expect staffing levels to stabilize
Adjustment for COLA
Propose to continue using the 6-month (Jan -
June 2024) rolling average of SF Bay Area CPI -
current trailing 6-mo average is 3.0%
CEO discretion applied depending on employee
pay relative to market range, performance, and
date of hire
Any additional increases for merit and
promotions based on CEO discretion
Budgeted at 3%
Employee benefits -
Adding Cesar Chavez holiday
Increasing paid Parental Leave from 120 hrs to
240 hrs
5 days of Bereavement to adhere to state
compliance
Make $600 fitness reimbursement an accrual up
to $3000
Re-engage the $500 (one time) reimbursement for
remote work set-up
Evaluate staffing levels to:
Scale up decarbonization programs
Reduce the high level of existing employee
workload
Advance strategic focus area goals
Create organizational depth for business
continuity
Sustained investments in cybersecurity
preparedness and business process
optimization projects continue
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Item 2
PRESENTATION
Additional Funding for Programs, Customer Discounts,
and Building Reserves
1% customer discount over 12 months of
2024 is ~$5.02 million*
1% discount over 9 months (Jan -Sep
2025) ~$3.84 million*
Monthly Average Bill Savings of 1%*
Discount:
Residential - ~$0.71
Small Commercial - ~$2.53
Medium Commercial -~$27.91
Issue: Balancing
Priorities
Staff Recommendation Implications/Reasons
Continue to provide competitively-priced and high-valued services to SVCE customers
Funds not needed to cover cost-of-service flow to customers via lower SVCE rates (discount to
comparable PG&E rates)
Continue with 4% discount with an
additional 1% towards bill credits for
low-income customers.
Board can change the budgeted
discount rate once actual PG&E rates
are known towards the end of the
year
Keeping reserves at or above
target levels ensures SVCE can
withstand adverse risk scenarios
and helps maintain/improve
credit ratings
Keeping the discount rate at a
reasonable level
Cost-of-service includes funds
needed to cover operations, meet
reserve targets, and fund
decarbonization programs
Enables additional
funding for valued
customer programs such
as decarbonization efforts
Ensures there’s more
organizational resiliency
to respond to risks over
the 5-yr planning horizon
Based on 6/28/24 Forward prices 44
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Item 2
PRESENTATION
Ensure SVCE maintains sufficient
reserves to manage risks such as
those modeled under the stress test
analyses
Staff updated the stress test analyses
in July using market prices consistent
with those used to develop the annual
budget
Target to keep reserves above 120 Days
of Cash On Hand (DCOH) for FY 2024-
2025 and FY 2025-2026 under the
modeled stress scenario
Reset upper reserve target such that
over the next 5 fiscal years, reserves do
not fall below 90 DCOH under the
modeled stress scenario
FY 25 margins not guaranteed
given true-up in 2024 for PCIA and
PG&E Gen rate
If adverse conditions materialize,
need 120 days to reshape strategy
and secure additional liquidity
The upper reserve target enables
the agency to take advantage of
good margin years to manage risks
over a 5-year period
45 Item 2
PRESENTATION
0 SVCE Planning & Budgeting Process
Budget
Comprehensive assessment of risks and
opportunities to optimally achieve mission
SVCE Mission: Reduce dependence on fossil fuels by
providing carbon-free, affordable, and reliable electricity and innovative programs for the SVCE community.
Funding in alignment with achieving
the strategic focus areas
Organization-wide priorities and
alignment toward achieving the mission
46