Silicon Valley Clean Energy Board of Directors
August 14, 2024

Staff Report – Item 4
Item 4: Provide Feedback on the Fiscal Year 2024-25 Proposed Operating Budget, Staff Benefits Update, and Proposed Reserve Policy Targets
From: Monica Padilla, CEO
Prepared by: Amrit Singh, CFO and Director of Administrative Services Karen Chang, Manager of Finance
Date: 8/14/2024

RECOMMENDATION
In preparation for adopting the budget in September 2024, Staff recommends that the Board of Directors provide feedback on the fiscal year (FY) 2024-25
1 Proposed Operating Budget (“Proposed Budget”) which
includes at a high level the following:

1. Projects depositing $14.0 million into the reserves;

2. Updates SVCE’s staff benefits;

3. Maintains a four-percent (4%) discount to PG&E’s rates; and

4. Updates the Reserve Policy2 increasing the Target for Days Cash on Hand (DCOH) from 300 to 350 and the Maximum DCOH from 490 to 500.

FINANCE AND ADMINISTRATION, EXECUTIVE COMMITTEE & BOARD REVIEWs At the May 13, 2024, Finance and Administration Committee (“Committee”) meeting and the June 12, 2024, Board of Directors meeting, staff presented the methodology, framework, and key assumptions for developing the Proposed Budget and responded to the Committee's and Board members’ questions on the approach to developing the budget.

Staff discussed the high volatility in the energy markets and very high prices for Resource Adequacy (RA), Renewable Portfolio Standard (RPS), and Carbon Free (CF) products, which added additional uncertainty to budget projections. Staff also discussed that, like the last fiscal year, the prices that the California Public Utilities Commission (CPUC) will establish for RA and RPS in the Market Price Benchmarks (MPBs), issued in the fall and used to set PCIA3rates will substantially impact the budget. Pacific Gas and Electric (PG&E) is advocating that the CPUC use last year’s MPB RA prices instead of the higher levels observed in the market.

Staff proposed using last year’s RA and RPS MPB prices for this initial budget and updating the budget in December to incorporate the final CPUC-published MPB prices.

Staff also presented an analysis of leasing an office building versus buying a building to the Executive Committee at its June 28, 2024, meeting. Staff discussed potential future office space needs and proposed a 1 The fiscal year 2024-25 starts on October 1, 2024, and ends on September 30, 2025. 2 SVCE’s Financial Reserves Policy can be found here: FP9 Financial Reserves Policy 3 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: 8/14/2024

plan to lease office space in the near term and revisit the option to purchase in about 4 years. The Executive Committee unanimously concurred with the staff’s recommendations.

Staff presented the Proposed Budget to the Finance and Administration Committee on August 6, 2024. The Committee voted unanimously to recommend that the Board of Directors approve the staff’s Proposed Budget along with the proposed updates to staff benefits and reserves policy target thresholds. The Committee commented that it’s an opportune time to hire talent, especially from the technology sector. The Committee also discussed providing more than 240 hours of employee parental leave benefit but concurred with the staff’s recommendation of increasing it from 120 hours to 240 hours. The Committee noted that this change is moving in the right direction, employees can further supplement parental leave with accrued paid time off (PTO), and employees who give birth to children are also eligible for short-term disability.

ANALYSIS & DISCUSSION
The FY 2024-25 Proposed Operating Budget, shown in Attachment 1, is balanced and presents Silicon Valley Clean Energy (SVCE) in a stable financial condition. The projected balance available for reserves of $14.0 million is a decrease of $98.6 million below the $112.6 million presented in the FY 2023-24 Mid-Year Budget.

Energy Revenues
The Proposed budget shows a decrease in revenues of $111.8 million compared to the FY 2023-24 adjusted mid-year budget. The revenue decrease is primarily due to a forecasted increase in 2025 PCIA of about 178 percent (from 1.05 cents/kWh to 2.92 cents/kWh) and a drop in the 2025 PG&E generation rate of about 14 percent on average (from 16.00 cents/kWh blended average 2024 rate to 13.76 cents/kWh) because of declines in forward energy prices. From the mid-year budget update, the energy prices for the calendar year 2024
4 , which are used to calculate the MPB, are down about 23%, and the forward prices for the calendar year 2025 are down, on average, about 9%. The significant increase in PCIA combined with a drop in PG&E generation rates reduces SVCE margins by 28 percent on average for 2025.

Staff used the CalCCA’s NewGen Strategies & Solutions Model to forecast PCIA and PG&E generation rates with updated energy market prices after calibrating it with PG&E’s May Energy Resource Recovery Account (ERRA) forecast of 2025 rates. As discussed at the June Board meeting, given the high uncertainty in prices the CPUC will establish for RA and RPS prices when adopting the MPB in the fall, staff used last year’s MPB prices for RA and RPS and updated the energy price assumptions consistent with those used to develop the FY2024-25 budget. Like last year, RPS prices and RA costs are highly volatile compared to the past, creating an additional layer of uncertainty in forecasting PCIA and PG&E generation rates. Staff estimates that if the CPUC continued its methodology for establishing RA and RPS MPBs, these MPBs would be much higher than last year's.

Unlike energy prices, where there are readily available market-traded forward prices, the RA and RPS prices used in the PCIA and PG&E generation rate calculations are based on CPUC’s derived MPBs, published later in the fall. It’s challenging to forecast the CPUC’s MPB prices because CPUC calculates them using a volume-weighted average of load-serving entities’ (LSE) market transactions, which can span forward transactions entered by the LSEs during the prior two years. While energy prices have declined, RA and RPS prices have continued to increase. SVCE’s estimates of MPBs for RA and RPS are much higher than last year’s MPBs5. For example, staff’s estimate for 2025 forecast RPS MPB is about $62 MWh, and last year’s forecast MPB was $31.73 per MWh. Because these MPB prices will significantly impact PCIA, PG&E is actively advocating that the CPUC use last year’s forecast RA price to keep PCIA at a much higher level. In computing SVCE’s power supply costs, staff computed the open RA and RPS position costs at current market prices. Holding for other variables, this disparity in RA and RPS prices used for projecting costs versus PCIA and PG&E generations rate 4 Calendar year 2024 calculation includes actuals for past months and forwards for future months. 5 SVCE’s estimate for 2025 forecast RA MPB is about 120% higher than last year’s 2024 forecast MPB, SVCE’s 2024 estimate for final RPS is about 58% higher than last year's forecast 2024 RPS, and SVCE’s 2025 forecast RPS is about 95% higher than last year's 2024 forecast RPS.

Item 4
Agenda Item: 4 Agenda Date: 8/14/2024

tends to make the budget forecast conservative. Using staff’s estimate for RA and RPS MPBs in the NewGen model, the fiscal year 2024-25 revenues would be about $145 million higher for illustrative purposes.

PG&E’s forecast of 2025 rates in the ERRA filing made in May 2024 shows a higher PG&E Generation Rate of ~13.956 cents/kWh to 14.39 cents/kWh (based on two proposed methodologies for allocating common costs) and a PCIA of 2.51 cents/kWh to 2.79 cents/kWh. PG&E’s filing, however, is based on results using market prices in late March 2024, and market prices have decreased since then. Based on the ERRA filing schedule, PG&E will update its rate forecast in early fall, and the CPUC is expected to approve new rates in late December.

To test the accuracy of the NewGen model, staff calibrated the model to PG&E’s forecast using the same period market data PG&E used in developing its 2024 rate forecast. The calibration shows that the model results generally align with PG&E’s forecast.

Given the uncertainty on MPBs that CPUC will establish in the fall and PG&E’s update of its generation rates and PCIA using the MPBs, staff recommends that SVCE update the revenue projections in December 2024 when there’s more certainty on the 2025 PCIA and PG&E generation rates. Between now and when the rates are finalized, market prices will change, which can create less or more favorable results.

The Proposed Budget continues the current 4 percent overall discount relative to comparable PG&E generation rates for all customers. It provides an additional dollar bill credit to CARE & FERA customers (~26,500) that, in the aggregate, is equivalent to a 1 percent discount for all customers. This amounts to $4.4 million after the delivery of 12 monthly bill credits of ~$13.85 for each enrolled customer. The budget shows the bill credits as a separate cost item.

The Proposed Budget continues to reduce revenues to account for potential write-offs for unpaid bills that could occur. SVCE’s proposed revenues include a 0.75% write-off rate, or roughly $3.3 million.

Power Supply Expenses
The forecasted power supply expenses for FY2024-25 are higher by about $22 million relative to the mid-year budget for FY2023-24. This increase is primarily driven by increased costs for clean energy resources and a projected increase in load of 1.6%, partially offset by lower forward energy market prices.

The forecast expenses are lower than the mid-year budget forecast for FY2024-25, primarily due to a decrease in energy market prices and a decrease in the clean portfolio target from 100 to 90%. The cost of carbon-free attributes has risen to above $30/MWh. Additional Power Purchase Agreements (PPAs) coming online also further reduce costs.

Reserves Policy Target Levels
At the June 12th, 2024, Board of Directors meeting, staff presented the results of the stress test analyses.

Staff discussed the need to hold sufficient reserves to ensure SVCE can withstand risks such as those modeled in the analyses. The stress test modeled a collapse in energy, RA, and RPS prices that substantially reduce revenues, models a one-time cash draw equivalent to the two highest months of procurement under the low-price scenario as a proxy for business operating and regulatory risks, and increased customer bad debt to 1 percent of revenues. Staff has since updated the stress test scenario analysis with portfolio data consistent with those used to develop the proposed budget. Staff did not refresh the market prices because prices are generally comparable to the original stress-test assumptions. The more significant driver of results is uncertainty surrounding CPUC’s adoption of RA and RPS prices for MPBs. Given limited market data for these products, staff used the original stress test numbers. Staff also corrected the original stress test analyses for some modeling errors discovered when updating the results. 6 The rates shown in this report are SVCE load-weighted average rates.

Item 4
Agenda Item: 4 Agenda Date: 8/14/2024

As shown in the table below, the new implied targets, derived using the methodology discussed in the stress test analysis, are higher than the current targets. The method of deriving the targets is to set the target level such that if the modeled stress scenario were to occur, the DCOH would remain above 120 for the next two fiscal years and set the upper reserve target such that it would stay above 90 DCOH over the next five fiscal years.

Staff recommends increasing the target reserves to 350 DCOH, given the considerable market price uncertainty, especially for RA and clean energy resources. This level also aligns with the credit rating agency’s guidance that DCOH in excess of 300 is viewed as positive for credit ratings. Staff does not recommend the higher maximum implied target from the analyses but recommends rounding the upper target to 500 DCOH.

The higher implied targets result from conservative RA and RPS price assumptions. Staff will work with brokers and other market participants to gather more market data for RA and RPS products and continue to assess the ability to stochastically model these prices similarly to the modeling of energy prices. Staff monitors the variability in financial results almost every week and can quickly recommend any strategic policy changes to the Board. The proposed upper limit provides sufficient headroom to manage financial reserves without setting it too high, where it can limit SVCE’s advancement of its mission. A redlined version of the reserve policy reflecting the proposed new targets is shown in Attachment 2.

Operating Expenses
Operating expenses are expected to grow in the proposed budget, increasing by $4.3 million from the FY2023- 24 adjusted mid-year budget, including an overall 5 percent contingency, which amounts to about $1.75 million embedded in all operating expense category increases.

The increase in projected operating expenses is due to:

1. Data Management
The Current Data Management vendor contract will expire by the end of 2024. Staff has issued vendors a Request for Proposals (RFP) for a new contract. The budget accounts for a potential increase in Data Management fees, including for services that may be added to the scope of the new Data Management services contract.

2. PG&E Fees
Staff is expecting a modest increase due to inflation starting in 2025 for a new contract. The proposed budget reflects an increase for nine months in 2025.

3. Personnel Expenses
Personnel expenses are expected to increase by $2.5 million. Of the increase in personnel costs, $1.8 million is from lower vacancy savings than the Mid-Year budget, which was partially based on actual vacancy rates as opposed to the 5 percent annual vacancy rate assumed in the proposed budget. SVCE continues to work to fill positions and anticipates full staffing by the end of the calendar year but utilizes a 5% long-term vacancy rate in the personnel budget. The budget includes a 3.0% cost-of-living adjustment to salaries, based on a trailing six-month average for the Bay Area CPI, which adds $363 thousand in additional cost and a 3% average merit increase, as determined by management during the upcoming Item 4
Reserve Targets (DCOH) Current Implied
Targets
Proposed
Minimum 120 120 120
Goal (Target) 300 342 350
Maximum (Upper Target) 490 713 500
Agenda Item: 4 Agenda Date: 8/14/2024

annual review process, which contributes another $363 thousand in cost increases. The budget proposes no increase in headcount. The current focus is to fill the remaining vacancies and comprehensively assess overall organizational staffing needs. This report includes proposed salary tables (Attachment 3) and organization charts (Attachment 4).

4. Professional Expenses
Overall, Professional Expenses increased by about $1.16 million. These primarily resulted from anticipated increases in vendor contracts fees, including those from recently board-approved contracts, membership fees, legal fees, and IT support and services, including enhancements in cybersecurity. The increase also accounts for Human Resources support, including external recruiting and adding new modules to the Human Resources Information System to consolidate payroll, performance review, and employee learning tools into a single platform to improve effectiveness and efficiency.

5. Marketing and General and Administrative
These expenses increased by about $218 thousand, primarily from increased hardware, travel, training, and anticipated conference fees.

Updates to Employee Benefits
Staff recommends minimal employee benefit updates to remain competitive in the labor market. Staff proposes adding Cesar Chavez Day, celebrated by most of our member agencies and other CCAs, as an SVCE-approved holiday. The proposed changes include extending parental leave to 240 hours from 120 to better align with peer agencies, bereavement leave to 5 days from 3 days to align with state compliance, and a $500 one-time stipend for remote work setup, which was offered during COVID, to now be an ongoing benefit for new employees and to those who did not receive the benefit after its expiration. A redlined version of the staff benefits summary with these proposed updates is shown in Attachment 5.

Programs Budget
SVCE will continue incorporating projected programs spending over the 5-year forecast period into the reserve balance projections and forecasting the ending net position as shown in the 5-year financial forecast in Attachment 6. For this coming fiscal year, programs spending is projected to be $30.1 million, with an additional $825 thousand in CRCR7 spending, and $850 thousand in E-Elec (all electric) rate discounts.

The proposed budget transfers an additional $8.8 million, two percent of projected revenues, $3.7 million from the PG&E nuclear allocation savings, representing the portfolio’s savings from accepting the allocation, and $1.8 million for the Hanford Hybrid Plant Emissions Mitigation Guidelines, which the Board approved in May 2024.

Non-Operating Revenues
The proposed budget expects non-operating revenues to grow by about $3.4 million from the FY2023-24 adjusted midyear budget. This increase reflects the increase in interest earned on the growing reserve balance.

Non-Operating Expenses
The proposed budget expects non-operating expenses to increase by about $21 thousand from the FY2023-24 adjusted midyear budget. The increase reflects the newly CPUC-adopted method for Provider of Last Resort (POLR) collateral calculations and the bank fees associated with its respective Financial Security Requirement (FSR) posting amount.
7 CRCR, the ~$10 million Customer Relief and Community Resilience Program, was established in 2020 to provide COVID credit payments to income-qualified customers as bill assistance, support local workforce training, and fund resiliency planning and capital expenditures at SVCE member cities.

Item 4
Agenda Item: 4 Agenda Date: 8/14/2024

Office Building Initial Capital
Staff proposed an overall strategic direction on leasing or buying a new office building to the Executive Committee at its June 28th, 2024, meeting. SVCE’s current lease runs through September 2025. Before the current lease expires, staff must finalize a new lease or purchase an office building to allow enough time for renovation and office move.

The Executive Committee unanimously agreed with the following staff proposal:
• Enter a 3-to-5-year lease with a target start date of October 2025 • Seek 11,000 to 14,000 square feet of a Class A building located within SVCE’s service territory • If the start date of the new lease is after October 2025, authorize an extension of the current lease for up to 6 months
The actual lease and terms will be brought to the Board for consideration and approval in a closed session before the end of 2024. Initial estimates show roughly $1 million for renovation, including furniture costs. This cost has been included in this proposed budget as a capital expense. Staff also included an estimated high-level rental price for a new lease in the budget. The 5-year budget projection assumes a building purchase in the fiscal year 2028-29.

STRATEGIC PLAN
The recommendation supports all goals of the board's adopted strategic plan. Specifically, the recommendations strongly support Goal 19 - “Commit to maintaining a strong financial position” and the accompanying Measure, “Present balanced budget that achieves cash reserve targets, weighs tradeoffs between customer value proposition and contribution to reserves and maintains competitive rates.”

ALTERNATIVE
Staff is open to feedback and suggestions from the Board. At a strategic level, the Board can change the discount to comparable PG&E rates, reduce the carbon-free and renewable power supply percentages, and cut the program expenditures.

Considering any of the above options requires an extensive policy-level discussion. The board can consider them while finalizing SVCE’s strategic priorities during the coming months and revisit the customer discount rate when actual PCIA and PG&E generation rates are known. Given a sufficient projected reserve balance that maintains SVCE’s stable financial condition, staff does not recommend any specific reductions.

FISCAL IMPACT
The FY 2024-25 Proposed Operating Budget includes total revenues of $441 million and total expenses, non-operating revenues, and transfers of $427 million, resulting in a surplus/contribution to reserves of $14.0 million.

ATTACHMENTS

1. FY 2024-25 Proposed Operating Budget

2. Updated Financial Reserves Policy

3. FY 2024-2025 Proposed Salary Table

4. FY 2024-2025 Proposed Organization Chart

5. FY 2024-2025 Proposed Benefit Summary

6. 5-year Financial Forecast
Item 4
Attachment 1

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
Energy Sales 550,852 438,837 (112,015) -20.3%
Green Prime 1,962 2,213 251 12.8%
Other Income 50 0 (50) -100.0%
TOTAL ENERGY REVENUES 552,864 441,050 (111,814) -20.2%

ENERGY EXPENSES
Power Supply 365,617 387,145 21,528 5.9%
OPERATING MARGIN 187,247 53,905 (133,342) -71.2%

OPERATING EXPENSES
Data Management 3,413 3,734 321 9.4%
PG&E Fees 1,470 1,516 46 3.2%
Salaries and Retirement 14,818 17,388 2,570 17.3%
Professional Services 8,210 9,370 1,159 14.1%
Marketing & Promotions 1,565 1,617 52 3.4%
General & Administrative 2,643 2,808 166 6.3%
TOTAL OPERATING EXPENSES 32,118 36,433 4,315 13.4%
OPERATING INCOME (LOSS) 155,132 17,472 (137,659) -88.7%

NON-OPERATING REVENUES
Interest Income 12,867 16,299 3,432 26.7%
TOTAL NON-OPERATING REVENUES 12,867 16,299 3,432 26.7%

NON-OPERATING EXPENSES
Financing 3 24 21 696.7%
TOTAL NON-OPERATING EXPENSES 3 24 21 696.7%
TOTAL NON-OPERATING INCOME (EXPENSES) 12,864 16,275 3,411 26.5% CHANGE IN NET POSITION 167,996 33,747 (134,249) -79.9%

CAPITAL EXPENDITURES, INTERFUND

TRANSFERS & OTHER
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
Other

TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER 55,412 19,742 (35,670) -64.4%
BALANCE AVAILABLE FOR RESERVES 112,584 14,005 (98,579) -87.6% Change
Item 4
Attachment 1
Page | 1 Amended: 9/13/20238/14/2024
FP9
Category: FINANCE

FINANCIAL RESERVES
POLICY
I. PURPOSE
This Reserve Policy outlines the appropriate types and levels (minimum, goal, and maximum) of financial reserves as prescribed in the following policy. The primary reason for a reserve policy is to be prepared for contingencies, but other reasons also exist. Seven important purposes of a reserve policy are as follow:

1. Plan for contingencies. To maintain sufficient reserves to minimize rate increase due to market volatility(power supply shocks or maintain rate competitiveness), weather impacts on demands, economic downturns, emergencies
(such as natural disasters), and regulatory changes.

2. Maintain good standing with rating agencies. By
maintaining sufficient reserves, SVCE can preserve good credit ratings, allowing it to secure power at lower costs, that is, without posting credit enhancements, in the energy markets.

3. Avoid interest expense. To avoid interest expense to cover short-term cash shortfalls by having sufficient
reserves to use for this purpose, rather than debt.

4. Ensure cash availability when revenue is unavailable.

To bridge times of the year that normally see temporary low levels of cash.

5. Plan for anticipated future rate increases by gradually raising those rates, using reserves to cushion the full impact on customers over an extended time period. For
example, if it is expected that rates are highly likely to increase in 3 to 5 years, higher reserves on hand can cushion those rate increases over a more gradual timeframe by
drawing down on the accumulated funds that may be in
excess of the reserves’ goal.

6. Manage the risks identified in the Energy Risk
Management Policy, which are:

Item 4
Attachment 2
©

SILICONVALLEY

CLEAN ENERGY
Page | 2 Amended: 9/13/20238/14/2024
FP9
Category: FINANCE
• Market price risk,
• Net revenue risk,
• Counterparty credit and performance risk,
• Load and generation volumetric risk,
• Operational risk,
• Liquidity risk, and
• Regulatory/legislative risk.

7. Establish clear expectations between the Board of
Directors and staff. A formal reserve policy creates a
shared understanding of the proper level and use of reserves.

II. POLICY
Reserve Levels Established
Financial reserves shall be set aside as follows:

The Reserve targets cover the operations of SVCE over a number of days in the event of emergencies or other significant unforeseen events. Three levels are defined, with the first being baseline. Given the purposes stated above, the Reserve shall be maintained at no less than the minimum described in (a) below. The reserve level described in (b) is recommended as the goal. The Maximum reserve level described in (c) would provide solid reserves for significant fluctuations in revenue or unforeseen circumstances. The Board shall review its reserve levels annually in context of SVCE’s overall financial condition of the agency, as well as due to changes to the industry and/or risk factors as described in periodic review of targets below.
(a) Minimum Operating Reserve (baseline) shall be the minimum maintained to cover 120 days of operations of the annual operating budget;
(b) An Operating Reserve goal of covering 300 350 days of operations of the annual operating budget;
(c) Maximum Operating Reserve to cover 490 500 days of
operations of the annual operating budget.

Item 4
Attachment 2
©

SILICONVALLEY

CLEAN ENERGY
FP9
Category: FINANCE
Page | 3 Amended: 8/14/20249/13/2023
Conditions for Use of Reserves
For purposes of this policy, use of reserves is defined as a projected or estimated1reduction in reserves by fiscal year-end. A temporary reduction in cash consistent with the expected peaks or dips in revenues and expenditures are normal cyclical occurrences to be expected during the fiscal year, and do not constitute a use of reserves.

The reserves may be drawn down upon by the CEO during the year, up to the lesser of 10% of the year’s budgeted cost of power supply, or $30 million, to:

1. Cover increases in power supply expenses due to spikes in costs and/or due to higher customer demand;

2. Provide necessary funds to make up for unanticipated revenue shortfalls;

3. Meet any margin or collateral posting requirements under energy supply contracts; and,

4. Provide resources to meet emergency expenditures.

If further use of reserves are needed to manage the operations of the organization, or if the use of reserves would bring the balance below the Minimum Operating Reserve baseline, the CEO must present recommendations to the Board and the Board must authorize any such use.

Replenishment of Reserves
Should SVCE drawdown reserves below the Minimum Operating Reserve level, SVCE will implement plans to return reserves to their minimum targets within two (2) fiscal years. Such plans will be provided in subsequent budget and rate discussions with the Board. 1 It is not practical to wait the formal fiscal year end closing of the accounting records to determine if the reserves have been “used”. Therefore, it is appropriate for staff to estimate reserve levels, with the important amount being what is estimated for fiscal year end.

Item 4
Attachment 2
©

SILICONVALLEY

CLEAN ENERGY
FP9
Category: FINANCE
Page | 4 Amended: 8/14/20249/13/2023
Excess Reserves
If reserve funds are projected to exceed the maximum level, the CEO shall present options for consideration by the Board of Directors for proper disposition of those reserves during the next budget cycle.

Reserves between Minimum and Maximum
To the extent that reserves are above target and below the maximum, no other action by SVCE would be required.

Periodic Review of Reserve Goals
Reserve goals shall be periodically reviewed for consistency with industry standards. If significant risk factors are eliminated or significant new risks emerge as a result of changes in the industry, legislation, or economic conditions, the basis of the reserve policy shall be reviewed, and the funding level shall be adjusted accordingly.

Unless the Reserves are approaching minimum levels, formal Reserve funding discussions with the Board may await the next budget process.

Reporting
Reserve levels will be monitored during the fiscal year and reported in the quarterly financial reports. Reserve target levels (minimum and maximum) will be analyzed annually, and over/under reserve determination shall be made in conjunction with year-end financial results. These results will be reported to the Board of Directors as part of the year-end financial report presentation.

Item 4
Attachment 2
©

SILICONVALLEY

CLEAN ENERGY
Title Minimum Salary
(Annual $)
Maximum Salary
(Annual $)
Administrative Analyst $ 180,189 105,199 $
Administrative Assistant $ 111,308 70,132 $
Associate Data Analyst $ 165,215 105,199 $
Associate Data Scientist $ 180,399 125,343 $
Associate Legislative Analyst $ 142,352 87,664 $
Associate Manager of Decarbonization Programs and Policy $ 202,047 140,263 $ Associate Power Analyst $ 154,355 98,930 $
Associate Power Resources Planner $ 213,197 140,263 $
CFO & Director of Finance and Administration $ 370,338 222,084 $ Communication Specialist $ 139,242 91,655 $
Communications Manager $ 209,598 140,263 $
Community Outreach Specialist $ 124,166 75,976 $
Data Analyst $ 185,041 125,343 $
Data Engineer $ 192,863 132,326 $
Data Scientist $ 202,047 140,263 $
Deputy Board Clerk/Administrative Assistant $ 180,189 105,199 $ Deputy Director of Decarbonization Programs and Policy $ 283,479 180,397 $ Deputy Director of Marketing and Communications $ 283,479 180,397 $ Deputy Director of Power Resources $ 311,518 198,254 $
Director of Decarbonization Programs and Policy $ 293,885 187,033 $ Director of Energy Services & Community Relations $ 293,885 187,033 $ Director of Government and Legislative Affairs $ 293,885 187,033 $ Director of Human Resources $ 293,885 187,033 $
Director of Power Resources $ 318,000 212,000 $
Director of Regulatory and Legislative Policy $ 293,885 187,033 $ Director of Risk Management and Analytics $ 293,885 187,033 $ Director of Strategic Development $ 293,885 187,033 $
Energy Services Lead $ 214,131 140,263 $
Energy Services Manager $ 267,435 175,946 $
Energy Services Principal $ 238,781 157,095 $
Energy Services Specialist $ 139,243 91,655 $
Energy Trading Manager $ 256,631 173,984 $
Energy Trading Planner $ 238,781 151,952 $
Financial Analyst $ 180,189 105,199 $
General Counsel $ 293,885 187,033 $
Human Resources Analyst $ 180,189 105,199 $
Human Resources Generalist $ 202,047 128,575 $
Human Resources Manager $ 238,781 175,330 $
IT Analyst $ 202,047 128,575 $
Management Analyst/Admin $ 202,047 128,575 $
Manager of Data and Analytics $ 267,434 179,832 $
Manager of Decarbonization Programs and Policy $ 238,781 151,952 $ Manager of Finance $ 242,456 159,550 $
FY24-25 Salary Chart

Item 4
Attachment 3
Title Minimum Salary
(Annual $)
Maximum Salary
(Annual $)
FY24-25 Salary Chart
Manager of Technology and Admin Services $ 242,456 159,550 $ Marketing Lead $ 214,131 140,263 $
Marketing Specialist $ 124,166 75,976 $
Policy Analyst $ 180,189 105,199 $
Power Analyst $ 172,878 110,801 $
Power Contracts & Settlements Manager $ 275,517 175,330 $ Power Data Analyst $ 172,878 115,629 $
Power Resources Manager $ 275,517 175,330 $
Power Resources Planner $ 238,781 151,952 $
Power Settlements and Compliance Analyst $ 202,047 128,575 $ Principal Communications Specialist $ 174,665 106,367 $ Principal Data Engineer $ 241,927 151,952 $
Principal Data Scientist $ 253,447 170,186 $
Principal Policy Analyst $ 226,030 151,952 $
Principal Power Analyst $ 216,858 138,988 $
Program Marketing Manager $ 209,598 140,263 $
Programs Lead $ 214,131 140,263 $
Programs Specialist $ 142,352 87,664 $
Rates Manager $ 238,781 159,550 $
Regulatory & Compliance Manager $ 238,781 151,952 $
Regulatory Analyst $ 180,189 122,731 $
Senior Board Clerk/Executive Assistant $ 214,131 128,575 $ Senior Communications Specialist $ 155,951 91,655 $
Senior Data Analyst $ 207,246 140,263 $
Senior Data Engineer $ 216,006 148,205 $
Senior Data Scientist $ 226,292 151,952 $
Senior Energy Services Specialist $ 155,952 105,199 $
Senior Financial Analyst $ 202,047 140,263 $
Senior Government Affairs Manager $ 256,631 187,033 $
Senior Management Analyst $ 222,251 140,263 $
Senior Manager of Communications $ 253,107 161,069 $
Senior Manager of Decarbonization Programs and Policy $ 253,107 161,069 $ Senior Manager of Power Resources $ 293,885 187,033 $
Senior Manager of Technology and Administrative Services $ 270,682 178,696 $ Senior Marketing Specialist $ 139,242 91,655 $
Senior Policy Analyst $ 201,812 122,731 $
Senior Power Analyst $ 193,623 124,097 $
Senior Power Resources Planner $ 267,435 187,033 $
Senior Programs Specialist $ 159,434 105,199 $
Senior Public Sector Services Manager $ 253,107 161,069 $ Senior Quantitative Analyst $ 207,246 140,263 $
Senior Rates Analyst $ 202,047 140,263 $
Senior Regulatory Advisor $ 202,047 128,575 $

Item 4
Attachment 3
Title Minimum Salary
(Annual $)
Maximum Salary
(Annual $)
FY24-25 Salary Chart
Senior Regulatory Analyst $ 202,047 128,575 $
Wholesale Energy Markets Manager $ 173,984 $ 256,631
Wholesale Energy Markets Planner $ 238,781 151,952 $

Item 4
Attachment 3
Item 4
Organization Chart (F&A I PRO I RPPL )
Attachment 4
Chief Financial Officer/Director
of Administrative
Services
Director of
Strategic
Development
Director of Power
Resources
Manager of
Finance
Director of Human
Resources
Administrative
Analyst
Senior
Financial
Analyst
Project
Coordinator
HR/Office
Assistant
Director of Risk Management
and Analytics
Senior Manager of
IT and
Admistrative
Services
Senior
Financial
Analyst
i
Deputy
Director of
Power
Resrouces
Wholesale Market
Planner
Senior
Quantitative Analyst
Senior
Quantitative Analyst
Information
Technology
Analyst
Power
Settlements
and
Compliance
Analyst
Regulatory &
Compliance Manager
Data
Engineer
Power
Resources
Planner
Power
Resource Manager
Power
Resource Manager
Power
Supply
Program
Manager
Management
Analyst/Admin
Associate
Power
Analyst
Associate
Power
Analyst
Energy
Trading
Planner
Board
Clerk/Senior
Executive
Assistant
Director of Regulatory,
Policy and
Planning
Director of Government and
Legislative
Affairs
Board Clerk/
Deputy
Executive
Assistant
Senior Regulatory
Advisor
Power
Resource
Planner
Senior Regulatory
Analyst
Government
and
Legislative
Intern
FY24-25 Proposed Budget Organization Chart
Item 4
Organization Chart (ESCR I DPP)
Attachment 4
CEO
Director of
Energy
Services and Community
Relations
Director of Decarbonization
Programs and
Policy
General
Counsel
Communications
Consultant
Energy
Services
Specialist
Deputy Director
of Marketing and
Communications
Energy
Services
Principal
Energy
Services
Principal
Internal
Operations
Program
Manager
Deputy Director
of Decarbonization
Programs &
Policy
Decarbonization Management
Analyst
Manager of
Decarbonization
Programs and
Policy
Programs
Lead
Manager of
Data and
Analytics
Community Outreach
Specialist
Principal
Communications
Specialist
Climate Corp
Fellow
Program
Marketing Manager
Marketing
Lead
Energy
Services
Intern
Communications
Specialists
Marketing
Specialist
Marketing
Specialist
Senior Manager of
Public Sector
Services
Programs
Lead
Senior
Programs
Specialist
Senior Senior Senior Programs Climate Corp Data Anaylst Data Programs
Specialist
Programs
Specialist
Programs
Specialist
Lead Fellow Engineer
Climate Corp
Fellow
Decarbonization
Data Analyst
Intern
FY24-25 Proposed Budget Organization Chart
2024/25 Benefits
Summary
333 W El Camino Real, Suite 330 | Sunnyvale, CA 94087 | 1-844-474-SVCE (7823) | SVCleanEnergy.org Campbell | Cupertino | Gilroy | Los Altos | Los Altos Hills | Los Gatos | Milpitas | Monte Sereno | Morgan Hill | Mountain View | Saratoga | Sunnyvale | Unincorporated Santa Clara County Benefit Details
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.

Medical Coverage is provided through the CalChoice marketplace, and currently includes the following options:

Kaiser – HMO plans
Sutter Health – HMO plans
Anthem Blue Cross – PPO plans
Cigna –EPO G
Dental Delta Dental PPO
Vision Vision PPO Plan
Retirement
401 (a) Plan Mandatory 10% employee contribution matched by 10% 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.

Health / Wellness
Fitness Reimbursement Program SVCE will reimburse up to $600 / year for qualified fitness expenses (class / program / equipment) per year. This reimbursement will accrue annually up to $3000.

Professional Development
Tuition Reimbursement Program SVCE will reimburse up to $5,000 / year for qualified educational advancement that supports the organization’s mission.

Employee Rebate Reimbursement
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.

Item 4
Attachment 5
SILICON VALLEY \3/ CLEAN ENERGY
—
2024/25 Benefits
Summary
333 W El Camino Real, Suite 330 | Sunnyvale, CA 94087 | 1-844-474-SVCE (7823) | SVCleanEnergy.org Campbell | Cupertino | Gilroy | Los Altos | Los Altos Hills | Los Gatos | Milpitas | Monte Sereno | Morgan Hill | Mountain View | Saratoga | Sunnyvale | Unincorporated Santa Clara County 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 100% Employer-paid $200,000 life and AD&D coverage (guaranteed at $50,000).

Employee Assistance Program (EAP) 100% 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 office set up.

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
Leave
Vacation Leave SVCE offers 160 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 11 12 days (80 88 hours) per year.

New Year’s Day
Martin Luther King Jr.’s Birthday Presidents’
Day
Cesar Chavez Day
Memorial Day
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 53 days paid bereavement leave in the event of a death in your immediate family.

Parental Leave If you have worked at least 12 months and for at least 1,250 hours in the previous 12 months you will be eligible for 240 hours of paid parental leave in the first 12 monthswill be eligible of up to twelve (12) workweeks in a 12- month period.

Item 4
Attachment 5
SILICON VALLEY \3/ CLEAN ENERGY
—
Attachment 6
($ 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 4
Attachment 6
Appendix A

Silicon Valley Clean Energy
Board of Directors Meeting
August 14, 2024
Appendix A
Power Resource Contracts Executed by CEO

SILICON VALLEY

CLEAN ENERGY
Docusign Envelope ID: 068AA12B-F893-4259-A043-0B6470F990B2 1 PG&E Resource Adequacy (Log No. 33B230W03)
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MASTER POWER PURCHASE AND SALE AGREEMENT

RESOURCE ADEQUACY CONFIRMATION LETTER

BETWEEN
SILICON VALLEY CLEAN ENERGY AUTHORITY (“PARTY A”)
AND
PACIFIC GAS AND ELECTRIC COMPANY (“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 is governed by the Master Power Purchase and Sale Agreement between the Parties, effective as of October 25, 2017, together with the Cover Sheet, the Collateral Annex and Paragraph 10 to the Collateral Annex, and any other annexes thereto (collectively, as amended, restated, supplemented, or otherwise modified from time to time, the “Master Agreement”). The Master Agreement and this Confirmation are collectively referred to herein as the “Agreement”. Capitalized terms used but not otherwise defined in this Confirmation, have the meanings specified for such terms in the Master Agreement or the Tariff (defined below), as applicable. Section references herein are to this Confirmation unless otherwise noted.

ARTICLE 1

TRANSACTION TERMS
Buyer: Party A
Seller: Party B
Product: The Product is the Capacity Attributes of the Unit(s) as defined in Appendix B; provided that if Buyer does not specify the Local Capacity Area in Appendix B, when applicable, then Seller may provide Local RAR from any Local Capacity Area in the Seller’s local areas. The Product does not include any right to the energy, ancillary services, or MTR Attributes (if applicable) of the Unit(s) which shall all be retained by the seller.

Delivery Period: September 1, 2024 through September 30, 2024, inclusive.

Contract Quantity and Contract Price: The Contract Quantity and Contract Price for each day of each Showing Month 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.

Appendix A PG&E
Docusign Envelope ID: 068AA12B-F893-4259-A043-0B6470F990B2 2 PG&E Resource Adequacy (Log No. 33B230W03)
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2.2 Seller To Identify Shown Unit
(a) Seller shall identify the Shown Unit(s) that meet the Product characteristics and Contract Quantity specified in Appendix B by providing Buyer with the specific Unit information no later than:
(i) Fifteen (15) calendar days before the relevant deadlines for the corresponding Compliance Showings applicable to the relevant Showing Month, if the Confirmation Effective Date is at least fifteen (15) calendar days before such Compliance Showing deadline; or
(ii) One (1) business day from the Confirmation Effective Date if the Confirmation Effective Date is less than fifteen (15) calendar days from the Compliance Showing. Section 2.3 of this Confirmation does not apply when the Confirmation Effective Date is within fifteen (15) calendar days of the Compliance Showing.
(b) The Shown Unit should not have characteristics that would trigger the need for Buyer or Seller to file an Advice Letter to the CPUC.
(c) Seller’s notice under this Section 2.2 shall be deemed acceptable to and approved by Buyer upon receipt, unless Buyer, within three (3) Business Days of receipt of Seller’s notice and in writing, notifies Seller of any objections Buyer has to the proposed Shown Unit. If Buyer timely objects, Seller must identify another Shown Unit within five (5) Business Days. Provided such Shown Unit meets the requirements of this Confirmation, this second Shown Unit shall be deemed acceptable to and approved by Buyer upon receipt. This section does not apply if the Confirmation Effective Date is within fifteen (15) calendar days of the relevant Compliance Showing deadline.
(d) Once the Shown Unit designated by Seller is approved or deemed approved in accordance with Section 2.2(c), then any such Shown Unit will be automatically deemed the Unit from which the Product is delivered for purposes of this Confirmation for the affected Showing Month.

2.3 Seller To Provide Alternate Capacity
(a) If Seller desires to provide the Contract Quantity for any Showing Month during the Delivery Period from a different Unit(s) other than the Shown Unit(s) as designated in Section 2.2, then Seller may, at no additional cost to Buyer, provide Buyer with Product from one (1) or more Alternate Units in an amount such that the total amount of Product provided to Buyer from the Unit and Alternate Units for the Showing Month during the Delivery Period is equal to the Contract Quantity for the Delivery Period. If applicable, the Alternate Units shall have Flexible Capacity Categories and Maximum Cumulative Capacity Categories (MCC Buckets) that are reasonably acceptable to Buyer, if different than those listed in Appendix B.

Appendix A PG&E
Docusign Envelope ID: 068AA12B-F893-4259-A043-0B6470F990B2 3 PG&E Resource Adequacy (Log No. 33B230W03)
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(b) If Seller desires to provide Product from an Alternate Unit under Section 2.3(a), Seller must notify Buyer of its intent to provide Product from an Alternate Unit and identify the proposed Alternate Unit meeting the Product characteristics specified in Appendix B no later than five (5) calendar days before the relevant deadlines for the submission of Compliance Showings related to the applicable Showing Month. Seller’s notice under this Section 2.3(b) shall be deemed acceptable to and approved by Buyer upon receipt, unless Buyer, within one (1) Business Day of receipt of Seller’s notice and in writing, notifies Seller of any objections Buyer has to the proposed Alternate Unit. If Buyer timely objects, Seller must identify another Alternate Unit within two (2) Business Days.

Provided such Alternate Unit meets the requirements of a Shown Unit under this Confirmation, this second Alternate Unit is deemed acceptable to and approved by Buyer upon receipt.
(c) Once the Alternate Unit is approved or deemed approved in accordance with Section 2.3(b), then any such Alternate Unit will be automatically deemed the Unit from which Product is delivered for purposes of this Confirmation for the affected Showing Month.

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 applicable Showing Month, submit, or cause the Unit’s Scheduling Coordinator to submit, Supply Plans in accordance with the Tariff to identify and confirm the Product provided to Buyer for each day of such Showing Month that is included in the Delivery Period so that the total amount of Product identified and confirmed for each such day of such Showing Month equals the Contract Quantity for such day of such Showing Month.
(ii) Seller will be deemed to have delivered the Product on each day to the extent that Buyer receives credit from CAISO for such day for Product identified and confirmed in the Supply Plan submitted for the Unit. (iii) Hold-Back Capacity, if any, is deemed Contract Quantity delivered, unless utilized under Article 7 as Substitute Capacity, then Contract Quantity is delivered according to the timeline requirements therein. (b) In accordance with Sections 2.2 and 2.3 and subject to Article 7, Seller shall to the extent required by CAISO or the CPUC rules cause the information listed in Appendix B to be included in all applicable Supply Plans and shall cause all Supply Plans to be filed in conformance with the requirements of the CPUC Filing Guide and 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.

Appendix A PG&E
Docusign Envelope ID: 068AA12B-F893-4259-A043-0B6470F990B2 4 PG&E Resource Adequacy (Log No. 33B230W03)
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2.5 Damages for Failure to Provide Capacity
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 Showing Month, Seller is liable for damages pursuant to Section 4.1 of the Master Agreement, and provided that Buyer has prepaid for the Contract of Quantity in accordance with Section

3.1, Seller shall pay to Buyer the following:

For each applicable day during the Showing Month included in the Delivery Period in which the Buyer’s Monthly Payment has been received by Seller in accordance with Section 3.1 of this Confirmation only, the amount equal to (w) the applicable Contract Price divided by (x) the number of days included in the Showing Month multiplied by (y) the amount of Contract Quantity not delivered by Seller on such day, multiplied by (z) 1,000 kW per MW.

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:
(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 submit Supply Plans in accordance with the applicable Tariff that identify 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 Appendix A PG&E
Docusign Envelope ID: 068AA12B-F893-4259-A043-0B6470F990B2 5 PG&E Resource Adequacy (Log No. 33B230W03)
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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 no later than three (3) Business Days before the deadline for the Compliance Showings applicable to the relevant Showing Month, except where Buyer exercises its rights under Article 7, then Buyer shall notify Seller in accordance with deadlines described in Article 7. 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 Monthly Payment
Buyer shall make a payment (a “Monthly Payment”) to Seller, for the applicable Showing Month, as follows:
ܯonthly Payment=Q×P×CF
where:

Q = The Contract Quantity of Product to be delivered by Seller to Buyer pursuant to Appendix B and consistent with Section 2.4 for the Showing Month
P = The Contract Price for the Showing Month, expressed in dollars per kW-month, as stated in Appendix B CF = The conversion factor equal to 1,000 kW per MW
The Monthly Payment calculation shall be rounded to two decimal places.

If the Confirmation Effective Date is more than fifteen (15) calendar days prior to the deadline for the corresponding Compliance Showing applicable to the relevant Showing Month, payment shall be paid by Buyer and received by Seller no later than fifteen (15) calendar days prior to the deadlines for the corresponding Compliance Showings applicable to the Showing Month. If the Confirmation Effective Date is fifteen (15) calendar days or less from the deadline for the corresponding Compliance Showing applicable to the relevant Showing Month, the Monthly Payment shall be made by Buyer and received by Seller no later than five (5) Business days following the Confirmation Effective Date.

Appendix A PG&E
Docusign Envelope ID: 068AA12B-F893-4259-A043-0B6470F990B2 6 PG&E Resource Adequacy (Log No. 33B230W03)
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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) Buyer shall be entitled to receive and retain all revenues associated with the Contract Quantity (including any capacity revenues from RMR Contracts for the Unit, Capacity Procurement Mechanism, or its successor, RUC Availability Payments, or its successor, but excluding payments described in Section 3.2(a)(i)- (v)).
(c) 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. (d) 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. (e) 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.

Appendix A PG&E
Docusign Envelope ID: 068AA12B-F893-4259-A043-0B6470F990B2 7 PG&E Resource Adequacy (Log No. 33B230W03)
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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 and, if applicable, the Unit EFC, for that Unit; and (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 Appendix A PG&E
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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 date of the relevant Compliance Showing, 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 Capacity 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 Parties may disclose all terms and conditions of this Transaction to any Governmental Body, the CPUC, CAISO and the Procurement Review Group, and 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. Each disclosing Party shall use reasonable efforts to limit, to the extent possible, the ability of any such applicable Governmental Body, CAISO, or 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 Appendix A PG&E
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permitted to disclose to the purchaser of the Resold Product all such information necessary to effect such resale transaction, other than the Contract Price.

ARTICLE 7

HOLD-BACK AND SUBSTITUTE CAPACITY
No later than three (3) Business Days before the relevant deadline for the initial Compliance Showing with respect to a particular Showing Month, Buyer may request in writing that Seller not list, or cause the Unit’s Scheduling Coordinator not to list, in the Unit’s Supply Plan a portion or all of the Contract Quantity for any portion of such Showing Month included in the Delivery Period (“Hold-Back Capacity”). Along with such request, Buyer shall also provide updated Unit information reflecting the requested change. The updated Unit information shall be in the form of the Supply Plan. Following Buyer’s request for Hold-Back Capacity, Buyer may request, in writing, that Seller make the previously requested Hold-Back Capacity available for Buyer’s use as Substitute Capacity only for Planned Outages within the respective Showing Month. Such request shall be received by Seller no later than eight (8) Business Days prior to the first day of the Planned Outage for which Buyer seeks to use such Substitute Capacity as required by the CAISO. 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 a Monthly 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.

Notwithstanding anything to the contrary in Sections 2.6, Seller shall not be liable for any costs, penalties, or fines assessed against Buyer by the CAISO as a result of Seller’s failure to make Substitute Capacity available to Buyer if Buyer did not timely comply with the notification requirements of this Article 7.

ARTICLE 8

COLLATERAL REQUIREMENTS

8.1 Party A Collateral Requirements
(a) Notwithstanding anything to the contrary contained in the Master Agreement, Party A shall, within five (5) Business Days following the Confirmation Effective Date, provide to, and maintain with, Party B a Fixed Independent Amount as long as Party A or its Guarantor, if any, does not maintain Credit Ratings of at least BBB-from S&P and Baa3 from Moody’s. The “Fixed Independent Amount” shall be 20% of the sum of the Monthly Payments for all unpaid months of the Delivery Period. For the purposes of calculating the Collateral Requirement pursuant to Section 8.2 of the Master Agreement, entitled “Party B Credit Protection”, and all corresponding provisions to Section 8.2 of the Master Agreement, such Fixed Independent Amount for Party A shall be added to the Exposure Amount for Party B and subtracted from the Exposure Amount for Party A.
(b) If the conditions in subsections (i) and (ii) of this Section 8.1(b) are satisfied throughout the Delivery Period, then this Confirmation’s Fixed Independent Appendix A PG&E
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Amount shall not apply for that time period during which all such conditions are satisfied:
(i) Party A’s customers are PG&E’s distribution or transmission customers and PG&E is the billing agent for those customers; and
(ii) PG&E is the provider of last resort pursuant to Cal. Pub. Util. Code Section 451 et seq. and applicable law for Party A’s retail electric customers. (c) If at any time during the Delivery Period, one or more of the conditions in subsections (i) and (ii) of Section 8.1(b) is no longer satisfied, and Party B has provided Party A with written notice of such failure to satisfy (Condition Notice), then Party A shall comply with the credit requirements of Section 8.1(a), above by that date which is no later than thirty (30) calendar days following the date of the Condition Notice.

8.2 Party B Collateral Requirements
Section 8.1 of the Master Agreement, entitled “Party A Credit Protection”, and all corresponding provisions to Section 8.1 of the Master Agreement do not apply to this Confirmation.

8.3 Current Mark-to-Market Value
For the purposes of calculating Exposure pursuant to the Collateral Annex, the Current Mark-to-Market Value for this Transaction is deemed to be zero. If at any time prior to the expiration of the Delivery Period, a liquid market for the Product develops wherein price quotes for such a product can be obtained, the Parties agree to amend the Confirmation to include a methodology for calculating the Current Mark-to-Market Value for this Transaction, consequently affecting each Party's Exposure.

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 in any applicable 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 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 Appendix A PG&E
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or costs, Buyer shall promptly remit to Seller the 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.” Appendix A PG&E
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ACKNOWLEDGED AND AGREED TO AS OF THE CONFIRMATION EFFECTIVE DATE.

Silicon Valley Clean Energy Authority, a
California joint powers authority
Pacific Gas and Electric Company, a
California corporation, limited for all
purposes hereunder to its Electric
Procurement and Electric Fuels Functions
By: By:

Name:

Title:

Monica Padilla
CEO
Name:

Title:

Date: 7/15/2024 Date:

Fesseha Lakew
Portfolio Managment, Senior
7/15/2024
Appendix A PG&E
DocuSigned by:
—573FC104110D4C0...

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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.
“Alternate Unit” means a generating unit designated by the Parties in accordance with Section

2.3 and which includes the Product characteristics, if any, as set forth in Appendix B. “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.

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“Confirmation” is defined in the introductory paragraph of this Confirmation. “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-month, specified for such period set forth in the 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. “FERC” means the Federal Energy Regulatory Commission.

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“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.
“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. “FCR Contract Quantity” means, with respect to a day included in the Delivery Period, the amount of FCR Attributes, expressed in MW, equal to the Contract Quantity for such day. “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. “Maximum Cumulative Capacity Category”, also referred to as “MCC Bucket,” has the meaning set forth in the most recently published edition of the CPUC Filing Guide as of the Confirmation Effective Date.
“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. “Monthly Payment” is defined in Section 3.1 of this Confirmation. “MTR Attributes” means, with respect to a generating unit, the accounting, tagging, filing, or other reporting constructs associated with the generating unit that can be counted towards demonstrating compliance with an LSEs obligation to procure incremental resources as described in Ordering Paragraph 1 of CPUC Decision 21-06-035.” Appendix A PG&E
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“MW” means megawatt.
“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.
“Planned Outage” means any outage that was submitted to the CAISO for approval at least eight (8) calendar days prior to the outage start date.
“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.
“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 in a Supply Plan, 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 Alternate Unit or Shown Unit.

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“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 in Tables 1 and 2 below.

Table 1 – Product Attributes
Resource
reference
#
Showing Month
and Year
RAR
Quantity
(MW)
Capacity
Area*
FCR
Quantity
(MW)
Contract
Price ($/kW-month)
SCID of
Benefitting
LSE
* Please specify: System, Bay Area, Humboldt, Sierra, Stockton, Fresno, Kern, North Coast/North Bay, LA Basin, Big Creek/Ventura, or PG&E Other. PG&E Other means capacity coming from any combination of resources in the Humboldt, Sierra, Stockton, Fresno, Kern, and/or North Coast/North Bay Local Areas.

To the extent that Seller provides FCR Attributes from Unit(s) for which the total Unit EFC exceeds the total Unit NQC and the sale of the FCR Contract Quantity from the Unit would leave FCR Attributes unusable by either Party, then Seller shall provide those additional FCR Attributes associated with the Contract Quantity provided by such Unit to Buyer at no additional cost. The Parties acknowledge that this may result in the total FCR Attributes delivered exceeding the FCR Contract Quantity and Contract Quantity listed above in any given Showing Month.

Appendix A PG&E
1 1 1
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Table 2 – Resource Attributes
Resource reference #1
Maximum Cumulative Capacity
Category (1,2,3,4) 4
Flexible Capacity Category (1,2,3) 1
Path (North, South)
Resource Contract Quantity
Resource Category*
Region*
Battery Efficiency*
Daily Storage Cycles*
Resource reference #2
Maximum Cumulative Capacity
Category (1,2,3,4) 4
Flexible Capacity Category (1,2,3) N/A
Path (North, South)
Resource Contract Quantity
Resource Category*
Region*
Battery Efficiency*
Daily Storage Cycles*
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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: Silicon Valley Clean Energy Authority, a California joint powers authority
(“Party A”)
Name: Pacific Gas and Electric Company, a
California corporation, limited for all purposes
hereunder to its Electric Procurement and Electric
Fuels Functions
(“Party B”)
All Notices: All Notices:

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APPENDIX E

FORM OF LETTER OF CREDIT
Issuing Bank Letterhead and Address
STANDBY LETTER OF CREDIT NO. XXXXXXXX
Date: [Insert issue date]
Beneficiary: [Insert Beneficiary name] Applicant: [Insert Applicant name] [Insert Beneficiary address] [Insert Applicant address] Letter of Credit Amount: [Insert amount]
Expiry Date: [Insert date that is one (1) year from offer date] Ladies and Gentlemen:

By order of [Insert name of Applicant] (“Applicant”), we hereby issue in favor of [Insert name of Beneficiary] (the “Beneficiary”) our irrevocable standby letter of credit No. [Insert number of letter of credit] (“Letter of Credit”), for the account of Applicant, for drawings up to but not to exceed the aggregate sum of U.S. $ [Insert amount in figures followed by (amount in words)] (“Letter of Credit Amount”). This Letter of Credit is available with [Insert name of issuing or paying bank, and the city and state in which it is located] by sight payment, at our offices located at the address stated below, effective immediately, and it will expire at our close of business on [Insert expiry date] (the “Expiry Date”).

Funds under this Letter of Credit are available to the Beneficiary against presentation of the following documents (which may be presented by physical delivery or by facsimile, e-mail or other electronic transmission):

1. Beneficiary’s signed and dated sight draft in the form of Exhibit A hereto, referencing this Letter of Credit No. [Insert number] and stating the amount of the demand; and

2. One of the following statements signed by an authorized representative or officer of Beneficiary:

A. “The amount of the accompanying sight draft under Letter of Credit [Insert number of letter of credit] (the “Draft Amount”) is owed to [Insert name of Beneficiary] by [Insert name of Beneficiary’s counterparty under the RA Confirmation] (“Counterparty”) under Confirmation for Resource Adequacy Capacity Product for CAISO Resources dated [insert date of the Confirmation] between [Insert name of Beneficiary] and Counterparty, which entitles [Insert name of Beneficiary] to draw the Draft Amount under Letter of Credit No. [Insert number];” or Appendix A PG&E
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B. “Letter of Credit No. [Insert number] will expire in thirty (30) days or less and [Insert name of Beneficiary’s counterparty under the RA Confirmation] has not provided replacement security acceptable to [Insert name of Beneficiary].” Special Conditions:

1. Partial and multiple drawings under this Letter of Credit are allowed;

2. All banking charges associated with this Letter of Credit are for the account of the Applicant;

3. This Letter of Credit is not transferable;

4. A drawing for an amount greater than the Letter of Credit Amount is allowed, however, payment shall not exceed the Letter of Credit Amount; and

5. The Expiry Date of this Letter of Credit shall be automatically extended without amendment for a period of one year and on each successive Expiry Date, unless at least sixty (60) days before the then current Expiry Date, we notify you by registered mail or courier that we elect not to renew this Letter of Credit for such additional period.

We engage with you that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored upon presentation, on or before the Expiry Date (or after the Expiry Date as provided below), at [Insert bank’s address for drawings].

All demands for payment shall be made by presentation of copies or original documents, or by facsimile, e-mail, or other electronic transmission of documents to [Insert fax number, email or other electronic transmission], Attention: [Insert name of bank’s receiving department] or [Insert e-mail or other electronic transmission address]. If a demand is made by facsimile, e-mail or other electronic transmission, the originals or copies of documents must follow by overnight mail, and you may contact us at [Insert phone number(s)] to confirm our receipt of the transmission. Your failure to seek such a telephone confirmation does not affect our obligation to honor such a presentation.

Our payments against complying presentations under this Letter of Credit will be made no later than on the third (3rd) banking day following a complying presentation.

Except as stated herein, this Letter of Credit is not subject to any condition or qualification. It is our individual obligation, which is not contingent upon reimbursement and is not affected by any agreement, document, or instrument between us and the Applicant or between the Beneficiary and the Applicant or any other party.

Except as otherwise specifically stated herein, this Letter of Credit is subject to and governed by the Uniform Customs and Practice for Documentary Credits, 2007 Revision, International Chamber of Commerce (ICC) Publication No. 600 (the “UCP 600”); provided that, if this Letter of Credit expires during an interruption of our business as described in Article 36 of the UCP 600, we will honor drafts presented in compliance with this Letter of Credit within thirty (30) days after the resumption of our business and effect payment accordingly.

The electronic copy of this Letter of Credit shall be the operative instrument until such time as the original is received. This Letter of credit can be amended or terminated by facsimile, e-mail or other electronic transmission.

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The law of the State of New York shall apply to any matters not covered by the UCP 600.

For telephone assistance regarding this Letter of Credit, please contact us at [Insert number and any other necessary details].

Very truly yours,
[INSERT NAME OF ISSUING BANK]
By:

Name: [Print or type name]
Title: [Print or type title]
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EXHIBIT A

SIGHT DRAFT
TO:
[INSERT NAME AND ADDRESS OF PAYING BANK]
AMOUNT: $ DATE:

AT SIGHT OF THIS DEMAND PAY TO THE ORDER OF PACIFIC GAS AND ELECTRIC COMPANY THE AMOUNT OF U.S. $ ( U.S. DOLLARS)
DRAWN UNDER [INSERT NAME OF ISSUING BANK] LETTER OF CREDIT NO. [XXXXXX].

REMIT FUNDS AS FOLLOWS:
[INSERT PAYMENT INSTRUCTIONS]
DRAWER:

By:

Name: [Print or type name]
Title: [Print or type title]
Appendix A PG&E