New SV Clean Energy
PowerPoint Template
Subtitle
Item 2
PRESENTATION
Item 2
PRESENTATION
Purpose
1. Review updated budget projections
2. Recommend the Board approve the
updated budget
Main Areas of Discussion
1. Recap of assumptions used in setting
the adopted budget and an update on
the budget forecast using the recent
rate forecasts
2. Comparison of adopted and updated
Budget
3. Updated reserve projection
4. Proposal on funding long-term
strategic priorities
5. Additional uncertainty in budget
projections
Item 2
PRESENTATION
FY24-25 Budget Development Timeline
May May/June August August
BOD adopts the budget and
agrees to revisit additional
expenditures later in the
year when there would be
more certainty on PG&E
rates
Executive Committee and
Finance and Admin Committee
review the updated budget
based on the revised PG&E rate
filing and provide feedback on
any additional expenditures
BOD reviews and adopts
amendments to the budget
incorporating any additional
expenditures
Mid-Year Budget
Review / Adjustment
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Item 2
PRESENTATION
Key Messages
Recap of Adopted Budget Assumptions
Conservative assumptions used in estimating revenues
CPUC’s fall updating of RA and RPS prices used for setting the Market Price Benchmark (MPB) was highly uncertain Budget conservatively showed contribution to reserves of $14 million using prior year’s RA and RPS MPBs Staff estimated an additional increase in revenues of $145 million if higher RPS and RA MPB prices were adopted Budget provided a 4% customer discount and an additional 1% offered as bill credits to low-income customers Highlights of the Updated Budget
SVCE’s forecasted revenues are higher by about $85 million using CPUC’s updated MPB prices Revenues are $60 million lower than staff anticipated primarily because of the recent decline in energy prices Updating for revenues and power supply expenses, the net contribution to reserves increases from $14.0 million to $96.7 million Trues up the budget to fund transfers to programs at 2% of updated revenues and to fund the “1%” low-income customer bill credits Reserves slightly exceed the target days of cash on hand of 350 but remain below the maximum target of 500 (excluding earmarked funds) Due to several delays in PG&E’s ERRA update process, the budget update contains more uncertainty than in the past Staff may update the budget further if additional material ERRA updates are received in time for the December Board meeting 4 SILICON VALLEY CLEAN ENERGY
FY 2024-25 OPERATING BUDGET
($ in thousands)
FY 2024-25 FY 2024-25
ADOPTED ADJUSTED
DESCRIPTION BUDGET BUDGET $ %
Energy Revenues 441,050 526,513 85,463 19.4%
Power Supply Expense 387,145 390,091 2,946 0.8%
Operating Margin 53,905 136,422 82,516 153.1%
Operating Expenses 36,433 36,433 0 0.0%
Non-Operating Revenue (Expense) 16,275 19,168 2,893 17.8% Annual Transfers and Other Expenses
Capital Outlay 1,002 1,002 0 0.0%
Building Fund 0 0 0 0.0%
Program Fund 8,821 10,530 1,709 19.4%
Nuclear Allocation 3,708 3,708 0 0.0%
Customer Bill Relief 4,411 5,370 959 21.7%
Hanford Emissions Mitigation Fund 1,800 1,800 0 0.0%
BALANCE AVAILABLE FOR RESERVES 14,005 96,746 82,741 590.8% Change
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Item 2
PRESENTATION
FY 24-25 Adopted and Updated Budget
Higher RA and RPS MPBs
increase revenues
Power Supply Costs increase
slightly
Portfolio updates, including those
for additional clean resources and
Power Purchase Agreement
changes and resulting higher RPS
and RA costs, more than offset
declines in energy prices.
Program fund is trued up for
updated revenues
Customer bill relief, low-income
bill credit, also trued up
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Item 2
PRESENTATION
Market Price Benchmarks (MPB)
reflect higher RPS and RA prices
RPS prices for 2024/2025 have
increased 72%/125%.
RA prices for 2024/2025 have
increased 55%/179%.
Energy prices for 2024/2025 have
decreased -13%/-16%.
Updated budget rate forecast,
incorporating latest MPB prices,
shows PG&E gen rates in January
decreasing on average by 8% from
2024 blended rates.
Relative to adopted budget
assumptions, SVCE’s margins, on
average, improved by ~31%. Resulting
in a ~$85 million increase in
revenues.
Rates are not final until late
December
PG&E continues to challenge CPUC
MPB methodology, proposing to
utilize last year’s MPBs.
The adoption of one of PG&Es
proposals could reduce SVCEs
projected FY2025 revenue by $20 to
$134 Million.
Current Blended
2024 Rate
Adopted Budget Estimated Budget Updated Budget
Blended Jan-Dec
2024 Rate* 2025 Rate** 2025 Rate*** 2025 Rate
4% SVCE discount PCIA 0.06 <t/kWh 4% SVCE discount
4% SVCE discount
4% SVCE discount
6 PCIA 1.04 C/kWh
PCIA 0.7 C/kWh
PCIA 2.92 <t/kWh
in in
in CN CO tn
tn Revenue upswing +$85M
CN
CO
* Source: Blended PG&E Jan-Jun 2024 & Jul-Dec 2024 Average Rate (Weighted for SVCE Portfolio Load) " CaICCA NewGen Model analysis using market data as of 6/28/2024 and CPUC attribute benchmarks adopted for CY 2024 (Weighted for SVCEWortfolio Load) cd
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PG&E Gen Rate
16.00 e/kWh
PG&E Gen Rate
16.69 <r/kWh
>G&E Gen Rate:
13.76 <r/kWh
»G&E Gen Rate
14.76 4/kWh
"* CaICCA NewGen Model analysis using market data as of 6/28/2024 and market RA and RPS prices (Weighted for SVCE Portfolio Load) Above margin analyses ignore minor reductions for franchise fees (0.09 <t/kWh) Item 2
PRESENTATION
If Forecasted Rates Prevail, SVCE Customer Rates on
Average will Decline Slightly
PG&E’s generation rate
in July 2024 decreased
on average by 11% from
January 2024 levels (svce
portfolio weighted).
Forecast of 2025 Rate
PG&E Gen Rate:
15.08 <t/kWh
PG&E Gen Rate:
14.76 <t/kWh
Current Jul-Dec
2024 Rate
Above margin analyses ignore minor franchise fees (0.09 c/kWh) 7 •
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450 436 447
491 471
382 389
418
470 474
0 100
200
300
400
500
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Days Cash on Hand (DCOH)
DCOH (Inc. Unspent Earmarked Funds)* DCOH (Excl. Unspent Earmarked Funds)* Max Reserves Target Reserves
Min Reserves
Item 2
PRESENTATION
Reserve Projection
Projected End of FY Reserves:
382 Days of Cash on Hand
(DCOH)
Excludes Unspent Program
Funds and Building Fund
450 Days of Cash on Hand
(DCOH)
If unspent Program Funds and
Building Fund were included
in the reserve calculation
* Earmarked funds are unspent SVCE Program Funds and Building Fund. 8 •
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Item 2
PRESENTATION
Funds Above Projected SVCE Reserve Target
5-yr reserve forecast shows reserves above target levels and approaching the maximum reserve levels
Financial projection enables SVCE to consider funding longer-term key SVCE mission-aligned strategic priorities
These strategic priorities are addressed in the next agenda item For fiscal year 2024-25, the forecast ending DCOH is 382, which is 32 DCOH above the target DCOH of 350 and equates to $40 million.
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Item 2
PRESENTATION
Funding Criteria for Strategic Priorities
Generally, direct funds above target DCOH
During the December budget update or the mid-year budget update, staff will propose the funding level after reviewing the available information on prior fiscal year financial results and accounting for the level of uncertainty in the budget forecast For fiscal year 2024-25, Staff does not recommend any funding yet There’s greater uncertainty on rates the CPUC will approve in December Staff may recommend funding during the mid-year budget update 10 •
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Item 2
PRESENTATION
Additional Uncertainty In this Fiscal Year’s Budget
PG&E continues to propose capping RA MPBs at last year’s levels CPUC judge ruled earlier that PG&E’s arguments were out of scope but could be considered in a new proceeding or a reopening of the PCIA proceeding
PG&E now argues that high MPBs create a cost shift
SVCE with CaICCA will continue to make the case in this proceeding that PG&E’s arguments are out of scope Uncertain how the CPUC will rule
CPUC’s Energy Division released MPBs on October 4th but subsequently made two corrections, with the latest correction on November 5th
As a result of these delays, staff does not have all PG&E ERRA updates and NewGen Consultant model updates Final rates are expected to be published at the end of December, after PG&E updates ERRA account balances, incorporates CPUC decision likely on Dec. 15, and files its Annual Electric True-up advice letter. 11 Recommend that the Board of Directors approve the
updated Fiscal Year 2024-25 operating budget.
Item 2
PRESENTATION
Recommendation
12 Item 2
PRESENTATION
Thank you! / Questions?
13 2024 2025 2024 2025* 2024 2025 2024 2025 2024 2025
Rate Schedule (as of Oct, 2024) E-TOUC Est. Avg E-TOUCL Est. Avg B-1 Est. Avg B-10S Est. Avg B-19S Est. Avg PG&E Bundled Gen Rate ($/kWh) $ 0.1501 $ 0.1553 $ 0.1503 $ 0.1553 $ 0.1499 $ 0.1469 $ 0.1581 $ 0.1541 $ 0.1442 $ 0.1459 SVCE Gen Rate ($/kWh) $ 0.1320 $ 0.1407 $ 0.1323 $ 0.1407 $ 0.1324 $ 0.1330 $ 0.1395 $ 0.1396 $ 0.1270 $ 0.1322 PG&E Delivery Rate ($/kWh)** $ 0.2807 $ 0.2807 $ 0.1242 $ 0.1242 $ 0.2830 $ 0.2830 $ 0.2108 $ 0.2108 $ 0.1613 $ 0.1613 PG&E PCIA/FF ($/kWh) $ 0.0121 $ 0.0084 $ 0.0121 $ 0.0084 $ 0.0116 $ 0.0080 $ 0.0122 $ 0.0084 $ 0.0115 $ 0.0079 Total Electricity Cost ($/kWh)** $ 0.4248 $ 0.4298 $ 0.2685 $ 0.2733 $ 0.4270 $ 0.4240 $ 0.3625 $ 0.3588 $ 0.2998 $ 0.3014 SVCE CARE/FERA Monthly Credit* $ (12.50) $ (16.94)
Est. Average Usage (kWh/month) 491 491 491 491 1,851 1,851 22,540 22,540 148,625 148,625 SVCE Gen Rate Discount vs PG&E 4% 4% ~21%* ~26%* 4% 4% 4% 4% 4% 4% Est. Av. Monthly Savings vs PG&E $ 3.09 3.05 $ 15.59 19.99 $ 11.16 10.87 $ 143.54 138.97 $ 902.81 867.53 *Estimated, based on PG&E October 2024 ERRA update and average historic residential usage and number of CARE/FARE customers as of September 27, 2024. ** The 2025 PG&E delivery charges at current levels (as of October 2024) because 2025 rates are not yet available.
Residential Res CARE/FERA* Small Commercial Medium Commercial Large Commercial Item 2
PRESENTATION
Estimated Customer Billing Rate Breakdown and
Comparison Y-o-Y
Total CARE/FERA bill discount (including T&D) vs average residential customer, assuming the same usage (491 kWh/month) is about 44%.
On average, CARE/FERA usage is about 12% lower than that of an average E-TOUC customer. 14 SVCE PG&E SVCE PG&E SVCE PG&E SVCE PG&E SVCE PG&E
Rate Schedule (eff. July 1, 2024) E-TOUC E-TOUC B-1 B-1 B-10 B-10 B-19S B-19S Average Usage (kWh/month) 491 491 491 491 1,851 1,851 22,540 22,540 148,625 148,625 Annual Peak Demand (kW) 499 499
PG&E Electric Delivery $ 124.84 $ 124.84 $ 55.22 $ 55.22 $ 482.30 $ 482.30 $ 4,755.94 $ 4,755.94 $25,884.53 $25,884.53 Electric Generation $ 68.34 $ 77.36 $ 68.34 $ 77.36 $ 246.10 $ 278.69 $ 3,169.39 $ 3,588.37 $19,964.14 $22,570.19 CARE/FERA monthly bill credit $ (12.50)
PG&E Added Fees (PCIA, Franchise)$ 5.93 $ 5.93 $ 21.43 $ 275.44 $ 1,703.24 Average Total Cost $ 199.11 $ 202.20 $ 116.99 $ 132.58 $ 749.83 $ 760.99 $ 8,200.77 $ 8,344.31 $47,551.91 $48,454.72 Average Monthly Savings $ 3.09 $ 15.59 $ 11.16 $ 143.54 $ 902.81 *Estimated based on average residential customer usage, PG&E delivery charges and number of CARE/FERA customers as of July 25, 2024.
Residential Res CARE/FERA* Small Commercial Medium Commercial Large Commercial Item 2
PRESENTATION
(^) Typical Customer Bill Savings
(Current Rates)
15 MPB Impact on Rate Projections •
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2023 2024 2025
Forecast RPS
Transacted in
09/2021 - 08/2022
for CY 2023
Transacted in
09/2022 - 08/2023
for CY 2024
Transacted in
09/2023 - 08/2024
for CY 2025
Final RPS
Transacted in
12/2021 - 08/2023
for CY 2023
Transacted in
12/2022 - 08/2024
for CY 2024
Transacted in
12/2023 - 08/2025
for CY 2025
Forecast RA - system & flex
Transacted in
09/2021 - 08/2022
for CY 2023
Transacted in
09/2022 - 08/2023
for CY 2024
Transacted in
09/2023 - 08/2024
for CY 2025
Forecast RA - local
Transacted in
09/2019 - 08/2022
for CY 2023
Transacted in
12/2020 - 08/2023
for CY 2024
Transacted in
09/2021 - 08/2024
for CY 2025
Final RA - system & flex
Transacted in
12/2021 - 08/2023
for CY 2023
Transacted in
12/2022 - 08/2024
for CY 2024
Transacted in
12/2023 - 08/2025
for CY 2025
Final RA- local
Transacted in
12/2019 - 08/2023
for CY 2023
Transacted in
12/2020 - 08/2024
for CY 2024
Transacted in
12/2021 - 08/2025
for CY 2025
Set by CPUC in October 2023
Will be set by CPUC in October 2024
Item 2
PRESENTATION
2025 Rate
Estimated FY2025 Revenue 2025 Rate
Estimated FY2025 Revenue
$525M
Estimated FY2025 Revenue
$441M 4% SVCE discount PCIA 0,06 $/kWh
4% SVCE discount
4% SVCE discount
PCIA 0.7 <t/kWh
PCIA 2.92 <t/kWh
CM 0
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CPUC uses a historical volume-weighted average of all IOU, CCA, and ESP market transactions
executed in a specific time frame to
set next year’s MPBs.
Updated 2025 system RA MPB is r
165% / 54% above 2024 forecast /
actual MPBs
Energy
RA
RPS
>G&E Gen Rate:
13.76 C/kWh
>G&E Gen Rate:
14.76 C/kWh
Energy
System RA
Local/Flex RA
RPS
2025 Rate*
MPBs for RA and RPS are significantly
above last year’s levels, while energy
prices have declined.
Updated 2025 forecast RPS MPB is
~125% / 31% higher than 2024
forecast/actual MPBs Adopted Budget
2025 $586M
*G&E Gen Rate:
16.69 e/kWh
* Source: CaICCA NewGen Model analysis using market data as of 6/28/2024 and CPUC MPBs (Market Price Benchmark) adopted for CY 2024 (Weighted for SVCE Portfolio Load) " Blended PG&E Jan-Jun 2024 & Jul-Dec 2024 Average Rate (Weighted for SVCE Portfolio Load) "* CaICCA NewGen Model analysis using market data as of 6/28/2024 and estimated CPUC MPBs for CY 2025 (Weighted for SVCE Portfolio Load) Above margin analyses ignores minor reductions for franchise fees (0.09 <t/kWh) 2025 Forecast On Peak Energy MPB 64.77 64.77 55.02 -15.1% -15.1% 2025 Forecast Off Peak Energy MPB 63.78 63.78 53.18 -16.6% -16.6% 2024 Actual On Peak Energy MPB 50.75 50.75 44.08 -13.1% -13.1% 2024 Actual Off Peak Energy MPB 47.95 47.95 42.22 -11.9% -11.9% 2025 Forecast RPS MPB 31.73 62.00 71.24 124.5% 14.9% 2.4% 2024 Actual RPS MPB 31.73 50.00 54.56 72.0% 9.1% 0.8%
2025 Forecast System RA MPB 15.23 33.50 42.54 179.3% 27.0% -0.6% 2025 Forecast Local RA MPB 9.52 20.94 13.29 39.6% -36.5% -7.3% 2025 Forecast Flex RA MPB 9.12 20.06 14.16 55.3% -29.4% -3.0% 2024 Actual System RA MPB 15.23 21.40 28.65 88.1% 33.9% 4.0% 2024 Actual Local RA MPB 9.52 13.38 12.22 28.4% -8.6% -1.1% 2024 Actual Flex RA MPB 9.12 12.81 12.89 41.3% 0.6% 0.0% Impact on the headroom
(gen rate - PCIA) - Est.
Budget vs Upd. Budget
-6.5%
-4.2%
Estimated
Budget
6/28
% Change
from
Budget
% Change
from Est.
Budget
Adopted
Budget 6/28
Updated
Budget
10/25
Item 2
PRESENTATION
O Updated Market Price Benchmark
New SV Clean Energy
PowerPoint Template
• Subtitle
Item 3
PRESENTATION
November 25, 2024
SILICON VALLEY
CLEAN ENERGY
Affordable Clean Community
Fund
Finance and Administration Committee
Meeting
Item 3
PRESENTATION
Discussion Item
Proposal to establish an Affordable Clean Community Fund
SILICON VALLEY
CLEAN ENERGY 2
Item 3
PRESENTATION
Discussion Structure
1. Why we need this fund
2. Funding priorities and targets
3. Funding allocations and FY24/25 budget estimates
4. Implementation process and accounting overview
SILICON VALLEY <3/ CLEAN ENERGY
Item 3
PRESENTATION
Why We Need This Fund
Strategic direction from the Board will enable staff to plan for and grow the impact of SVCE’s strategic
community investments.
Item 3
PRESENTATION
SVCE Mission
Reduce dependence on fossil fuels by providing
carbon free, affordable, and reliable electricity and
innovative programs for the SVCE community.
SILICON VALLEY
CLEAN ENERGY
Item 3
PRESENTATION
SVCE is at an inflection point that requires strategic
direction.
1. As reserves reach target levels, SVCE can fund longer-term mission-aligned strategic priorities.
2. Increasing electric bills underscore the need for SVCE to have consistent discounts.
3. New air district policies will exponentially increase the demand for heat pumps and the need for support to ensure affordability for all.
4. Evolving market conditions make it more difficult to hit clean targets and amplify the need for new technologies and local developments to supply affordable and reliable clean energy.
SILICON VALLEY
CLEAN ENERGY 6
Item 3
Board
PRESENTATION
direction will enable staff to plan for large investments & grow impact.
1. Instead of making decisions every year, we need multi-year strategic direction.
2. Staff has proposed three priority areas for funding.
3. Board retains authority to shift direction if circumstances change.
SILICON VALLEY
CLEAN ENERGY
Item 3
PRESENTATION
Funding Priorities and Targets
By investing in three priority areas, SVCE will be doing its best to ensure the energy transition is affordable
and accessible for all in the short, medium and long
term.
Item 3
PRESENTATION
Determining the Availability of Funds & Allocations
1. Funds above Reserve Policy Targets will be identified as part of budget process.
2. For FY 24-25, based on the updated December 2024 budget estimate, ~$40M is available to establish the ACC Fund.
3. At mid-year Budget, March 2025, staff will confirm estimates and make a recommendation to fund the ACC Fund.
Allocations are based on Board set priorities. The following examples assume $40M available in total.
SILICON VALLEY
CLEAN ENERGY 9
Item 3
PRESENTATION
This three-pronged approach can help clean energy be
affordable for all-today and in the future.
1. Discount Stabilization -
SVCE discount should be secure amid changing
conditions.
2. Scalable Support for Pollution-Free Appliances -Everyone must be able to upgrade to a heat pump.
3. Local and Emerging Power Supply Technology -We need new solutions for a long-term clean supply.
SILICON VALLEY
CLEAN ENERGY 10
Item 3
PRESENTATION
Discount Stabilization
Recommendation Customer Benefit Cost to SVCE
Build a fund to ensure a
rate discount even in
bad years.
Each 1% discount:
^60 cents/month/residential
customer
~$3/month for average non-res
customer
Larger monthly savings for large C&l
who have more usage
Upto $75M
Stabilizes discount three years
Each 1% discount costs
~$5M/year
5% is about $25M/year
11 Item 3
PRESENTATION
Scalable Support for Pollution-Free Appliances
Recommendation Customer Benefit Cost to SVCE
Build a fund to
provide scalable rebates
and financing for heat
pump water heaters
(HPWH) installed after
regulation.
Rebates and/or financing to lower upfront cost.
Customers with the greatest need get the
greatest support.
Aim design of programs to provide support for up
to 100% of HPWH installations.
Consistent funding, not come-and-go state
programs.
Up to $90M
Estimate needed for three years.
Actual programs deployed will
depend on funding available and
learnings from ongoing programs.
Program timing would align with
regulations going into effect.
- Staff ran several scenarios to
estimate funding needed for three
years of support-example in
appendix.
Note: SVCE will also continue to consider external funding sources such as energy efficiency program dollars, to better ensure sufficient support coverage. •
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Item 3
PRESENTATION
Local & Emerging Power Supply Technology
Recommendation Customer Benefit Cost to SVCE
Upto $100M
This fund would be set aside for:
Build a fund to
invest in the above
market costs of local
and emerging
power supply
technologies.
Local projects
Demand flexibility
Emerging technologies
Staff will develop investment
recommendations based on
level of funding.
Investments in emerging technology can
bring down costs long term and help to
stabilize emissions.
13 Item 3
PRESENTATION
Discussion: Summary of Proposed Priorities & Targets
Priority Investment Cap Key Risks
Discount Stabilization
$75M
- Customers don’t notice or feel
Estimate needed to secure three
years of a 5% discount
value
Scalable Support for Pollution-Free Appliances
$90M
Estimate needed to provide
support the first three years of
BAAQMD. Example in appendix.
- Low demand (BAAQMD
changes)
- Programs scaling challenges
Local and Emerging Technology
$100M
Estimate needed to catalyze a
combination of demand flex, local
and emerging technologies.
- Technology doesn’t work
- Costs are much higher
- Technology not available
Item 3
PRESENTATION
Funding Allocations and FY24/25 Budget
Estimates
15 Item 3
PRESENTATION
Option A: Strict Waterfall- Discount Funded First
This option would fund each target fully, in order of priority, starting with the discount. Thus, the preceding priorities wouldn’t be funded untilthe preceding priority was 100%.
Priority Allocation FY 24/25-Estimated $40M
Discount Stabilization 100% ~$40M or 53% of target
Scalable Support of Pollution-Free
Appliances 0% until discount funded $0
Power Supply Emerging Technology 0% until discount and appliances funded $0
Item 3
PRESENTATION
Option B: Strict Waterfall- Appliances Funded First
This option would fund each target fully, in order of priority, starting with appliances. Thus, the preceding priorities wouldn’t be funded until the preceding priority was 100%.
Priority Allocation FY 24/25-Estimated $40M
Scalable Support of Pollution-Free
Appliances 100% ~$40M or 44% of target
Rate Discount 0% until appliances are funded $0
Power Supply Emerging Technology 0% until appliances and rate are funded $0
Item 3
PRESENTATION
RECOMMENDED Option C: Percent Allocation
In this option, each priority would receive a portion of funding starting in FY 24/25. Once the discount and appliances allocations are at their targets, all remaining funds would go towards emerging tech.
Priority Allocation FY 24/25-Estimated $40M
Scalable Support of Pollution-Free
Appliances 40% ~$16M or 18% target
Power Supply Emerging Technology 20% ~$8M or 8% of target Item 3
PRESENTATION
Discussion: Staff Recommends Option C
Priority Option Allocation Options
FY 24/25
FY 24/25 -
Estimated $40M
A 100% $40M - 53% target
Discount Stabilization B 0% $0 - 0% target
C 40% $16M - 21% target
A 0% $0 - 0% target
Universal Support of
Pollution-Free Appliances
B 100% $40M - 44% target
C 40% $16M - 18% target
A 0% $0 - 0% target
Power Supply Emerging
Technology B 0% $0 - 0% target
C 20% $8M - 8% target
19 Item 3
PRESENTATION
Implementation Process and Accounting Overview
Item 3
PRESENTATION
Proposed ACC Fund Process and Guidelines
1. Board adopts a resolution to establish the ACC Fund, with threshold to determine funding level available, set funding priorities, targets, and allocations.
2. As part of budgeting process, if funds are available, Board approves the annual transfers to each fund based on the predetermined allocations.
3. Staff will bring spending proposals for ACC Fund priorities to the Board for review and approval as necessary.
4. Each ACC Fund priority is capped based on recommended maximums. Total ACC Fund set at $265M. NOTE: This fund is distinct from the programs fund.
5. The Board may adopt changes to the allocation percentages and/or targets at any time.
SILICON VALLEY
CLEAN ENERGY 21
Item 3
PRESENTATION
Appendix M svcleanenergy.org
|^| [email protected]
SILICON VALLEY
CLEAN ENERGY 22
•
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Item 3
PRESENTATION
Heat pump water heater demand will exceed
current budget
SVCE has budget for
2,145 new water heaters
through FY 26-27.
In 2027, heat pump
water heater demand is
expected to increase
about 10,000 per year
due to local policies.
O 30000
co
co
“
25000
CD
co
20000
<D
toj 15000
Q.
E
10000
T
5000
FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
23 •
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Item 3
PRESENTATION
Current programs budget spend is ramping up; will
mostly be deployed by Fiscal Year 2026-2027
Demonstrating approaches,
learning, gathering data, and
informing how to scale.
Actual spend depends on
program uptake, so forecast
has large uncertainty.
Budget used for all decarb
programs (buildings and
transportation), resilience,
C&l decarb, E-ELEC, etc.
Cumulative spend doubled
over two years prior to FY
23-24.
"Total budget is not inclusive of any additional funding added.
Major Variables
% Customer Participation 85%
% BAAQMD Compliance 75%
SVCE Admin Cost (%) 20%
Income Group AMI Range ($ for family of 4) Offering
% SVCE
Housing
Annual
HPWHs
through
SVCE
SVCE Annual
Rebate &
Finance Cost
Annual
Admin Cost
Total Annual
SVCE Cost
Very Low <60% (<$84,960) Full cost coverage 1% 50 $0.4M $0.08M $0.5M Low 60-80% ($84,960 - $113,280) $4,500 rebate 9% 790 $3.6M $0.7M $4M Median 80-150% ($113,280 - $212,400) $2k + 0% financing 49% 4,285 $12.4M $2.5M $15M High >150% ($212,400) $1k or 0% financing 41% 3,560 $4.6M $0.9M $6M SMB - $2k + 0% financing - 300 $0.9M $0.2M $1M
TOTAL 100% 8,685 $21M $4M $26M
Item 3
PRESENTATION
Appliance Support Needed - Example
Item 3
PRESENTATION
Community Advocates Ranking Recommendations
26 Item 3
PRESENTATION
Thank you! M svcleanenergy.org
|^| [email protected]
SILICON VALLEY
CLEAN ENERGY 27
New SV Clean Energy
PowerPoint Template
Subtitle
Item 4
PRESENTATION
Create Rate Stabilization
SILICON VALLEY
CLEAN ENERGY
Amrit Singh
Finance and Administration Committee
November 25, 2024
Item 4
PRESENTATION
Purpose
1. 2.
3. 4.
5. 6.
Other CCA’s Using Rate Stabilization
Fund
Financial Statement Illustration
Impact on Reader’s of Financial
Statement
Comparison of Reserves and Rate
Stabilization Fund
Criteria for Directing and Recognizing
Revenues to and from the Rate
Stabilization Fund
Seek the Committee’s feedback on an
accounting change to create a rate
stabilization fund
Accounting Rule -GASB 62
•
•
•
•
•
•
Item 4
PRESENTATION
Direct Earmarked Funds to a Rate Stabilization Fund
GASB* 62 Enables Creation of a Rate Stabilization Fund
Defer Revenues to Future Period
Enables SVCE’s Board to adopt a policy to defer revenue recognition to future periods Impacts the Net Position in the Financial Statements
Lowers net position for the year revenues are deferred and increases it for the future year when revenues are recognized
Revenues for the applicable fiscal year are reduced, and a corresponding liability is created in the Statement of Net Position (balance sheet)
Can record after the close of the fiscal year and can start with FY 2024-2025 *The Governmental Accounting Standards Board (GASB) is the organization that determines and updates generally accepted accounting principles (GAAP) for government entities.
3 Item 4
PRESENTATION
0 Other CCAs Are Using GASB 62
CCA Fund Amount ($ Million)
Clean Power Alliance (CPA) 135
Ava Community Energy (East Bay) 79.2
Marin Clean Energy (MCE) 70
Peninsula Clean Energy (PCE) 68
Sonoma Clean Power (SCP) and Orange County Power Authority (OCPA) plan to contribute to a rate stabilization fund.
4 Item 4
PRESENTATION
Financial Statement Impact
MARIN CLEAN ENERGY
STATEMENTS OF REVINUIS, EXPENSES
AND CHANGES IN NET POSITION
Y EARS ENDED MARCH 31, 2024 AND 2023
2024 2023
OPERATING REVENUES
Ilcctrkity safes, net $ 770,344,682 $ 633.836,160
| Rale stabilization (40,000,000) (19,000.0001)1
Grunt revenue 11,360,450 10,532,421
liquidated damages 26,074,259 7,219,945
Total operating revenues 767,779,391 636,588,526
OPERATING EXPENSES
Cost of electricity 571,404,901 559,107,368
Contract services 21,157,869 19.389,252
Stall'compensation 20,936,409 17,193,096
Other operating expenses 9,002,600 6.935,136
Depreciation and amortisation 955,278 996,241
Total operating expenses 623,457,057 603,621,093
()perating income 144,322,334 32,967,433
NONOPERATING REVENUES (EXPENSES)
(irunt revenue • 4,226,302
Interest and investment returns 15,420,160 4,007,603
Finance costs (228,825) (236,468)
Nonoperating revenues (expenses), net 15,191,335 7,997,437 CHANGE IN NET POSITION 159,513,669 40,964,870
Net position at beginning of year 244,171,846 203,206,976 Nel position at end of year $ 403,685,515 $ 244,171,846
MARIN CLEAN ENERGY
STATEMENTS OF NET POSITION
MARCH 31, 2024 AND 2023
2024 2023
ASSETS
Current assets
Cash and cash equivalents - lairvstnctcd S 101.027.404 $ 73.348.263 Accounts receivable. net ol'aloxvancc 61.447.640 66,401.473 Accrued revenue 31.912.468 31.180.447
Other receivables 5,822.709 1.985.508
Prepaid expenses 972.203 651.310
Restricted cash 40.322.101 33.782.947
Investments 115.763.550 68.841.532
DcposMs 14.108.352 10.924.834
Total current assets 371.376.427 287.116.314
Noncurrent assets
Cash and cash equivalents - unrcstnclcd 70.000.000 30.000.000 Investments 149.588.819 45,538.694
CapMal assets, net ofdeprecation and amortizauon 863.432 1.818,709 DcposMs 203.498 203.499
Total noncurrcnt assets 220,655.749 77.560.902
Total assets 592,032.176 364.677.216
LIABILITIES
Current kibihtics
Accrued cost ofclectricty 67.950.289 45.803.423
Accomts pavablc 4.552.442 4.071.832
Other accrued labthtcs 2,713.413 1.845,922
User taxes and energy surcharges due to other governments 1.288.372 3.112.581 Securlv deposits - energx suppers 983.400 578.400
Lease habiiocs 536.644 773.620
Advances from grantors 40.322.101 33.782.947
Total current kibihlics 118.346.661 89.968.725
Noncurrvnt kibibues
Lease habtlurs - 536.645
Total habites 1 18,346,661 90.505.370
DEFERRED INHXM'S OF RESOURCES
Operating Reserve Fund 70,000.000 30.000.000
NET POSITION
Net posuon
Net investment n capital assets 326.788 508.444
Univsineled 403.358.727 243.663.402
Total net position $ 403.685,515 $ 244.171.846
Item 4
PRESENTATION
Potential Impact on Readers of Financial Statement
Readers Pros Cons Staff’s Overall
Assessment Note
Public Net position statement reflects
unspent but earmarked funds.
Shows unspent funds
as liabilities but the
Board can redirect to
other uses in thefuture.
Positive
Add footnotesthat the
Board can direct
revenue from the Rate
Stabilization Reserve.
Credit RatingAgencies
(S&P and Moody’s)
Demonstrates greater Board
commitment to separately set
aside funds to promote rate
stability.
Potential confusion that
these liabilities reduce
financial liquidity.
CCAs, staff consulted
with have not
experienced this.
Positive
Add footnotes that the
Board can direct
revenue from the Rate
Stabilization Reserve.
Counterparties(Energy
Suppliers,Financial
Institutions)
More stableyearly financial
statement of Revenues and
Expenses (Income Statement).
Potential confusion that
these liabilities reduce
financial liquidity.
Positive
Add footnotesthat the
Board can direct
revenue from the Rate
Stabilization Reserve.
6 •
•
•
•
•
•
•
•
Item 4
PRESENTATION
Reserves and Rate Stabilization Fund
Reserves (Internally tracked balance; Non-GAAP)
Board adopts Reserve targets in the Financial Reserves Policy Reserve targets are designed to withstand plausible risk events Board reviews the reserves policy each year along with the operating budget Staff recommends reserve targets based on risk analyses following the agency’s Enterprise Risk Management process
Not impacted by the creation of a Rate Stabilization Fund Rate Stabilization Fund (GAAP)
Can use this GAAP accounting to defer revenues on the financial statements and recognize them later when expenditures occur that correspond to the Board’s direction on the utilization of those revenues
7 •
•
•
Item 4
PRESENTATION
Potential Criteria for Deferring & Recognizing Revenues At the end of the fiscal year, staff working with SVCE’s Accountant may defer Revenues such that total deferred revenues do not exceed unspent earmarked funds and the addition to net position does not fall below 2% of the revenues.
Unspent or unutilized Program Dollars, along with funds set aside to purchase an SVCE office building, is about $100 million at the beginning of the fiscal year 2024-25.
If the addition to the net position falls below 2% of the revenues for any fiscal year, revenues will be recognized from the rate stabilization fund to the extent balance exists such that the addition to the net position is at or above 2% of the revenues.
8 •
•
•
•
Item 4
PRESENTATION
O Next Steps
Receive the committee’s feedback
Work with SVCE’s Accountant to draft a board policy/resolution Seek the Committee’s review and recommendation for Board approval, likely at the February 2025 meeting
Seek Board approval, likely in March 2025, along with approval of the mid-year budget
9 Item 4
PRESENTATION
Thank you! / Feedback / Questions?
10 • Subtitle
New SV Clean Energy
PowerPoint Template
Policy Streamlining
Project
Michael Callahan
Demarie Weber
November 25, 2024
Item 5
PRESENTATION
Amended
2 Recommendation for FAC
Adopt staff’s proposed revisions to policies including the following:
Policies for Adoption Policies for Retirement
• Finance Accounting Policy
• Finance Budget Policy
• Finance Purchasing and
Spending Policy
• Finance Investment Policy
• Finance Delinquent
Accounts & Collections
Policy
• Finance Capitalization
Policy
• Finance Customer
Generation Rates
• IT Information
Technology Policy
• Finance Capital Projects Policy
• IT Information Systems Use
Policy
• IT Email Use Policy
• IT Asset Management Policy
• IT Internet Usage Policy
• IT Security Plan Policy
• IT Access Control Policy
• IT Password Protection Policy
• IT Malware Defense Policy
• IT Security Audit Policy
• IT Disaster Recovery Policy
• IT Threat-Risk Assessment
Policy
• IT Satisfaction Policy
• IT Data Breach Policy
• IT Workstation Security for
HIPPA Policy
• IT Clean Desk Policy
Item 5
PRESENTATION
Amended
3 Recommendation for FAC
Adopt staff’s proposed revisions to policies including the following:
Policies for Adoption Policies for Retirement
• G&A Files and Records
Management Policy
• HR Personnel and
Reimbursement Policy
• G&A Travel and Meeting Expense Reimbursements Policy
• HR Smartphone Stipend Policy
• HR Recruitment Incentive Policy
• HR Volunteer Time Off Policy
• HR Unpaid Leave Policy
• HR Paid Time Off Cash Out
• HR Tuition Assistance Policy
• HR Cash in Lieu of Health Benefits Policy
• HR Fitness Reimbursement Benefit Policy
Item 5
PRESENTATION
Amended
4 Framework
2024 Policy Refresh
November 2023: Discussion with
Finance and Administration
Committee
Review all policies for needed
updates
Ensure right level of detail
November 22, 2024:
Executive
Committee
Reviewing Changes
General and
Administrative
Human Resources
2024: Internal staff work
to recommended
changes
Update and reduce
language
Eliminate
redundancies
Transfer extensive or
sensitive details to
standards
Keep key policy details
at the Board
November 25, 2024:
Finance and
Administration
Committee
Reviewing Changes
Finance
Information
Technology
December 11, 2024:
Board Meeting
Adopt Changes
Retire policies
Adopt new
policies
December 2024:
After Board
decision
Staff Adopts all
finalized
standards
Near-term Post
Adoption
Roll out to staff
Long-term Post
Adoption
Regular reviews
Regular trainings
Item 5
PRESENTATION
Amended
O
November 2023: Discussion with
Finance and Administration
Committee
• Review allpolicies for needed
updates
• Ensure right levelof detail
November 22, 2024:
Executive
Committee
ReviewingChanges
• General and
Administrative
• Human Resources
2024: Internalstaff work
to recommended
changes
• Update and reduce
language
• Eliminate
redundancies
• Transfer extensive or
sensitive details to
standards
• Keep key policy details
at theBoard
November 25, 2024:
Finance and
Administration
Committee
ReviewingChanges
• Finance
• Information
Technology
December 11,2024:
Board Meeting
Adopt Changes
• Retire policies
• Adopt new
policies
Near-term Post
Adoption
• Roll outtostaff
December 2024:
After Board
decision
• StaffAdopts all
finalized
standards
Long-term Post
Adoption
• Regular reviews
• Regulartrainings
5 RECORDS BY TYPE (%)
STANDARD
30 (37%)
POLICY
21 (26%)
RETIRED
30 (37%)
SVCE
82 DOCUMENTS
TAKEAWAYS
63% (52 of 82 records) are existing records.
• 26% (21 of 82 records) are policies.
• 37% (30 of 82 records) are standards.
• 1% (1 of 82 records) is a handbook that includes
information found in policies and standards.
37% (30 of 82 records) are retired policies.
• 10% (3 of 30 retired policies) fall under General and Administrative
• 13% (4 of 30 retired policies) fall under Finance
• 27% (8 of 30 retired policies) fall under Human
Resources
• 50% (15 of 30 retired policies) fall under Information Technology
Policy
HANDBOOK
1 (1%)
Standard
Handbook
Retired
Status Summary
2024 Policy Refresh
Item 5
PRESENTATION
Amended
6 KEY TAKEAWAYS
1) Delegates $250k
CEO signing
authority
2) Removes Fossil Fuel
Investments
3) Increases
capitalization limits
to $5K
• Clarified the F&A Committee doesn’t need to be five members • Clarified the capital projects and debt limit rules will be standards • Added delegations of purchasing authority and solicitation requirements • Investment policy migrated several detailed sections to a standard • Clarified SVCE does not have the power of disconnection for delinquent accounts
• Moved Customer Generations Rates and Chart of Accounts policies to a standard
Other Finance Revisions
Finance Policy Takeaways
2024 Policy Refresh
Item 5
PRESENTATION
Amended
7 Finance
2024 Policy Refresh
SUMMARY GRAPHIC – FINANCE
FP-01 FP-02 FP-04 FP-06 FP-08 FP-09 FP-10 FP-11
FS-07 FS-01 FS-03 FS-06 FS-08 FS-04
FP-03 FP-05 FP-07 FP-13
FP01 – Accounting
FP01A01 – Establish Audit Committee
FP01A02 – Establish Finance and Administrative
Committee
FP02 - Budget
FP04 - Debt Limitations
FP06 - Purchasing
FP08 - Investment
FP09 - Financial Reserves
FP10 - Delinquent Accounts & Collections Policy
FP11 - Capitalization Policy
ERMP - Energy Risk Management Policy
FS01 - Capital Projects
FS03 - Customer Generation Rates
FS04 - Investment
FS06 - Purchasing Card Standard
FS07 - Chart of Accounts
FS07A01 - Chart of Accounts
FS-08 - Purchasing and Spending
ERMS - Energy Risk Management Standard
[Retired] FP03 - Capital Projects Policy
[Retired] FP05 - Customer Generations Rates
[Retired] FP07 - Purchasing Card Policy
[Retired] FP13 - Chart of Accounts
[Transferred] FP12 - Files and Records Management
Policy to GAP-10 - Files and Records Management Policy
ERMP
ERMS
9 Policies
7 Standards
4 Retired
Item 5
PRESENTATION
Amended
8 KEY TAKEAWAYS
1) Replaced previous
IT policies with new
model policy and
standards
2) Transferred
language of former
policies (15 retired
policies) to
standards
• Adopted a new model IT policy and associated standards • Staff undertook a review to ensure the key provisions in SVCE’s former policies were included in the new policy and standards • Content moved to standards is either operational-level detail or sensitive from an IT or data security perspective
• Retired IT Satisfaction Policy to allow staff more discretion to determine the means to ensure satisfaction with IT systems
• Migrated policies related to Information Systems Use, Email Use, IT Asset Management, Internet Usage, IT Security Plan, Access Control, Password Protection, Malware Defense, Security Audit, Disaster Recovery, Threat-Risk Assessment, Data Breach, Workstation Security for HIPAA, and the Clean Desk Policy into new IT standards
Other Information Technology Revisions
Information Technology Policy Takeaways
2024 Policy Refresh
Item 5
PRESENTATION
Amended
9 Information Technology
2024 Policy Refresh
SUMMARY GRAPHIC – INFORMATION TECHNOLOGY
ITP-01
ITS-01 ITS-02 ITS-03
ITP-01 ITP-02 ITP-03
ITP01 – Information Technology
ITS01 - Vehicle and Charger Use
ITS02 - Data Management
ITS03 - Asset Management
ITS04 - Information Security
ITS05 - Identity and Access Management
Network Management
ITS06 - Physical Security
ITS07 - Vulnerability Management
ITS08 - Business continuity Disaster Recovery
ITS09 - Incident Response
ITS09A01 - Incident Response Plan
[Retired] ITP-01 Information Systems Use Policy
[Retired] ITP-02 Email Use Policy
[Retired] ITP-03 IT Asset Management Policy
[Retired] ITP-04 Internet Usage Policy
[Retired] ITP-05 It Security Plan Policy
[Retired] ITP-06 Access Control Policy
[Retired] ITP-07 Password Protection Policy
[Retired] ITP-08 Malware Defense Policy
[Retired] ITP-10 Disaster Recovery Policy
[Retired] ITP-11 Threat-Risk Assessment Policy
[Retired] ITP-12 IT Satisfaction Policy
[Retired] ITP-13 Data Breach Policy
[Retired] ITP-14 Workstation Security for HIPAA Policy
[Retired] ITP-15 Clean Desk Policy
ITP-08 ITP-09 ITP-10
ITP-04 ITP-05 ITP-06
ITP-11 ITP-12 ITP-13
ITP-07
ITP-14
ITS-04 ITS-05 ITS-06 ITS-07 ITS-08 ITS-09
ITP-15
1 Policy
9 Standards
15 Retired
Item 5
PRESENTATION
Amended
10 KEY TAKEAWAYS
1) Delegates rules for
staff travel and
reimbursement to
CEO
2) Records retention
was refreshed to
streamline the
information
• Established reimbursement rules for the Board in the Purchasing and Spending Policy
• Delegated to CEO the ability to develop different standards for staff • Files and Records Management document categories and retention timelines were consolidated and reformatted for clarity
• Created new standards for Files and Records Management with operational details
Other General and Administrative Revisions
General and Administrative Policy Takeaways
2024 Policy Refresh
Item 5
PRESENTATION
Amended
11 General and Administrative
2024 Policy Refresh
SUMMARY GRAPHIC – GENERAL AND ADMINISTRATIVE
GAP-01 GAP-04 GAP-05 GAP-06 GAP-07 GAP-08 GAP-09 GAP-10 GAS-01 GAS-03*
GAS-02
GAP-01 GAP-02 GAP-03
GAP01 - Vehicle and Charger Use
GAP04 - California Public Records Act
GAP05 - Code of Ethics
GAP06 - Chair and Vice Chair Vacancy
GAP07 - CEO Absence
GAP08 - Ticket and Pass Distribution
GAP09 - Hybrid Meetings
GAP10 - Files and Records Management
GAS01 - Vehicle and Charger Use
GAS02 - Files and Records Management
GAS02A01 - Files and Records Management - Retention
Periods
GAS03 - Travel and Meeting Expense Reimbursements
[Retired] GAP01 - Travel and Meeting Expense
Reimbursements
[Retired] GAP02 - Vehicle Use Policy
[Retired] GAP03 - Charging Station Policy
8 Policies
3 Standards
3 Retired
*GAS-03 falls under HRP-01 Personnel and Reimbursement
Item 5
PRESENTATION
Amended
12 KEY TAKEAWAYS
1) Consolidated
personnel authority
in a new policy
2) Transferred
language of former
policies (8 retired
policies) to
standards
• Created new policy for Personnel and Reimbursement from existing authority • Resolution 2021-22 on personnel authority
• Budget Policy with overhire authority
• Travel and Reimbursements policy absorbed
• Refreshed HR Handbook standards to remain consistent with changes in law and SVCE practices
• Moved Smartphone Stipend, Recruitment Incentive, Volunteer Time Off, Unpaid Leave, Paid Time Off Cash Out, Tuition Assistance, Cash in Lieu of Health Benefits, and Fitness Reimbursement Benefit policies to standards Other Human Resources Revisions
Human Resources Policy Takeaways
2024 Policy Refresh
Item 5
PRESENTATION
Amended
13 Human Resources
2024 Policy Refresh
SUMMARY GRAPHIC – HUMAN RESOURCES
HRP01 – Personnel and Reimbursement
HR Handbook
HRS01 – Technology Stipend
HRS02 - Recruitment Incentive
HRS03 - Volunteer Time Off
HRS04 – Unpaid Leave
HRS05 – Paid Time Off Cash Out
HRS06 – Tuition Assistance
HRS07 – Cash in Lieu of Health Benefits
HRS08 – Fitness Reimbursement Benefits
HRS09 – Flexible Work
[Retired] HRP-01 Smartphone Stipend Policy
[Retired] HRP-02 Recruitment Incentive
[Retired] HRP-03 Volunteer Time Off
[Retired] HRP-04 Unpaid Leave
[Retired] HRP-05 Paid Time Off Cash Out
[Retired] HRP-06 Tuition Assistance
[Retired] HRP-07 Cash in Lieu of Health Benefits
[Retired] HRP-08 Fitness Reimbursement Benefits
HRP-01
HR
Handb
ook
HRS-01
HRS-02
HRP-01HRP-02HRP-03HRP-08
HRP-04HRP-05HRP-06HRP-07
HRS-03
HRS-04
HRS-05
HRS-06
HRS-07
HRS-09
1 Policy
9 Standards
1 Handbook
8 Retired
Item 5
PRESENTATION
Amended
14 Next Steps
• (Previous Step) Nov 22 – Executive Committee
• General and Administration Policies
• Human Resources Policies
• Dec 11 – Board Meeting
• All policies
• ~Dec 12 – Staff adopts standards
• Q1 2025 – Roll out policy changes to staff & train incoming Board members
• Continuous improvement with regular reviews and trainings Item 5
PRESENTATION
Amended
15 Thank you! Questions?
Item 5
PRESENTATION
Amended
16 Appendix A: ExCom Policies
Item 5
PRESENTATION
Amended
17 Recommendation for ExCom
Adopt staff’s proposed revisions to policies including the following:
Policies for Adoption Policies for Retirement
• G&A Vehicle and Charger Use Policy
• G&A California Public Records Act Policy
• G&A CEO Absence Policy
• G&A Hybrid Meetings Policy
• G&A Vehicle Use Policy
• G&A Charging Station Policy
Item 5
PRESENTATION
Amended
18 Appendix B: Controls
Item 5
PRESENTATION
Amended
19 Name Controls
FP01 - Accounting Policy
Purpose: Methods and standards for
accounting
Cadence: Review every five (5) years
1) CPAs perform an annual financial audit and an official annual financial report shall be issued no later than six months following the fiscal year end.
2) Audit and Finance and Administrative Committees are formed for financial oversight. 3) The Board of Directors has final approval of the audit.
FP02 - Budget Policy
Purpose: Adoption and reporting
requirements
Cadence: Review every five (5) years
1) The Board of Directors approves and adopts the budget. In the event the Board does not adopt the budget by the end of the fiscal year, the Board may adopt a continuing appropriations resolution until such time as the budget is adopted.
2) Customer generation rates are set through the Board-approved budget for the corresponding fiscal year or as designated by the Board after establishing the budget.
FP04 - Debt Limitations Policy
Purpose: Maximum thresholds for debt
Cadence: Review every five (5) years
1) Capital projects funded through the issuance of bonds or other forms of debt instruments shall be financed for a period not to exceed the expected useful life of the project and in no event shall it exceed 30 years.
2) All professional service providers (underwriters, financial advisors, bond insurers, etc.) shall be competitively bid and will require a request for proposal process unless waived by the Board of Directors.
3) Total annual debt service expense shall not exceed ten percent of operating revenue.
Finance Controls
2024 Policy Refresh
Item 5
PRESENTATION
Amended
20 Name Controls
FP06 - Purchasing and Spending
Policy
Purpose: Delegation and parameters
for spend
Cadence: Review every five (5) years
1) Delegated CEO authority must be documented.
2) Limits CEO contracting authority to $250,000/fiscal year. 3) Maximum emergency authority requires 2 ExCom Members. 4) CFO must approve all ACH and wire transfers.
5) Established solicitation options and requirements for different sizes of vendor agreements.
FP08 - Investment Policy
Purpose: Requirements for
investments
Cadence: Review every five (5) years
1) No more than 5% of SVCE's total investment portfolio will be invested in a single security type with a single financial institution.
2) Various limitations on the types of investments possible to manage risk.
FP09 - Reserves Policy
Purpose: Establishes reserve targets
Cadence: Review every one (1) year
1) Annual Board review of reserve levels.
2) Periodic review of reserve goals (minimum operating reserve, operating reserve, and maximum operating reserve targets).
Finance Controls
2024 Policy Refresh
Item 5
PRESENTATION
Amended
21 Name Controls
FP10 - Delinquent Accounts &
Collections Policy
Purpose: Process for past-due
customer bills
Cadence: Review every five (5) years
1) Three notices are sent to customers that meet delinquent customer criteria. 2) Closed accounts may be written-off with approval by the CFO.
FP11 - Capitalization Policy
Purpose: Capitalization thresholds &
guidance
Cadence: Review every five (5) years
1) All assets with value above $5,000 must be capitalized. 2) There is a lifespan table guide for financial reporting and depreciation: 3 years for computer software, hardware, and office machinery; 5 years for automobiles; 7 years for office furniture and fixtures.
FS01 - Capital Projects
Purpose: Process for capital projects
Cadence: Review every one (1) year
1) Board reviews Capital Projects Report twice a year.
Finance Controls
2024 Policy Refresh
Item 5
PRESENTATION
Amended
22 Name Controls
FS03 - Customer Generation
Rates
Purpose: Requirements for ratesetting
Cadence: Review every five (5) years
1) A rate adequacy review shall be completed every five years at a minimum through a cost-of-service study.
FS04 – Investment
Purpose: Requirements for
investments
Cadence: Review every five (5) years
1) Director of Administration and Finance shall be responsible for preparing a monthly report of transactions for the Board of Directors.
FS06 - Purchasing Card Standard
Purpose: Authorizing SVCE credit
cards
Cadence: Review every five (5) years
1) Each P-card shall not exceed $20,000 monthly, subject to the CEO's discretion. 2) CEO, CFO or Director of Finance and Administration must approve P-card issuance. 3) All P-cards and their limits must be approved on the P-Card Per Cardholder Limit form prior to being issued.
4) Delegated use of P-Cards must be requested in writing via the P-Card Delegation Form. 5) Outlines allowable and unauthorized P-Card use in the policy. 6) Any missing documentation requires written explanation and signed affidavit on the Missing Supporting Documentation Affidavit.
Finance Controls
2024 Policy Refresh
Item 5
PRESENTATION
Amended
23 Name Controls
FS07 - Chart of Accounts
Purpose: Descriptions for ledger
accounts
Cadence: Review every five (5) years
1) Specifying accounts in advance enables funds to be accounted for properly. 2) Design of accounts and arrangement is based on the sequence they appear in the financial statements.
FS07A01 - Chart of Accounts
Purpose: List of ledger accounts
Cadence: Review every five (5) years
1) Qualitative description is transferred to an easier quantitative format to improve visibility and act as a quick reference.
FS08 - Purchasing and Spending
Purpose: Delegation and parameters
for spend
Cadence: Review every five (5) years
1) Sets requirements to seek multiple bids to ensure low cost for SVCE. 2) Directs award to be made to vendor in the agency's best interest. 3) Larger projects (+$50k) must be awarded following an RFP/RFQ process. 4) Sole source purchasing must be justified without relying on personal preference, cost, vendor performance, local service, features that exceed minimum requirements, explanations of the need for the equipment or service unless it is a unique case.
5) Cooperative purchasing must satisfy SVCE bidding requirements. 6) Disposal of property will be reported to the Board and may only be disposed of by specified methods.
Finance Controls
2024 Policy Refresh
Item 5
PRESENTATION
Amended
24 Name Controls
ITP-01 [Information Technology]
Purpose: Unified IT policy directing
standards
Cadence: Review every one (1) year
1) All staff and designated parties that have access to SVCE IT are personally responsible for exercising the proper control over information according to operational standards and are informed of security measures through ongoing required training.
2) IT resources are tracked and monitored through established tools. 3) All operational standards will be reviewed on an annual basis.
ITS-01 [Data Management]
Purpose: Data classifications and
protections
Cadence: Review every one (1) year
1) Defines classification of data types: public, restricted, and confidential where access is restricted to users on a "need-to-know" basis determined by business requirements. The data owner is responsible for identifying additional requirements for specific data or exceptions to data handling. 2) Data transfer to people or outside entities shall be done with a non-disclosure agreement or a data-sharing vendor agreement with approval from their manager, the IT department, and the General Counsel.
3) Includes specific limitations from rules related to data privacy.
ITS-02 [Asset Management]
Purpose: Protect & manage IT assets
Cadence: Review every one (1) year
1) Hardware, software, and application inventories must be maintained and reviewed no less than annually.
2) SVCE assets must be maintained and repaired based on the manufacturer's recommended guidelines. 3) Employees are responsible for ensuring agency equipment is secured and properly attended to. 4) Assets must be returned to SVCE upon termination of employment or end of the asset's useful life.
Information Technology Controls
2024 Policy Refresh
Item 5
PRESENTATION
Amended
25 Name Controls
ITS-03 [Information Security]
Purpose: Protect data systems
Cadence: Review every one (1) year
1) All hardware must be formally approved by IT Management before being connected to SVCE networks. 2) Software must be approved and installed by SVCE IT and be properly licensed. 3) All mobile devices connecting to SVCE's resources must be setup to use strong encryption and are required to use the approved tools and solutions, defined by SVCE IT. 4) All personnel must review and acknowledge the IT standards and complete assigned security awareness trainings by assigned due dates.
ITS-04 [Identity and Access
Management]
Purpose: Managing users and access
to data
Cadence: Review every one (1) year
1) Accounts created must have an associated, and documented, request and approval. 2) Accounts and access rights for all Silicon Valley Clean Energy information resources must be reviewed and reconciled at least annually, and actions must be documented. 3) The level of access required to perform authorized tasks may be approved. 4) Remote access connections to SVCE networks will be made through the approved remote access methods employing data encryption and multi-factor authentication.
ITS-05 [Network Management]
Purpose: Best practices for networks
Cadence: Review every one (1) year
1) Connections to the SVCE internal network must be authorized by IT. 2) Wireless access points or devices that provide access to SVCE's wireless network must be approved by IT management.
3) SVCE IT must approve connections of the network infrastructure to external third-party networks. 4) Network equipment and distribution racks must be located in a secure room only accessible by the SVCE IT team.
Information Technology Controls
2024 Policy Refresh
Item 5
PRESENTATION
Amended
26 Name Controls
ITS-06 [Physical Security]
Purpose: Practices to physically guard
data
Cadence: Review every one (1) year
1) Secure areas shall be protected by appropriate entry controls to ensure that only authorized personnel are allowed access.
2) Physical security for offices, rooms and facilities shall be designed and applied to protect from theft, misuse, environmental threats, unauthorized access, and other threats to the confidentiality, integrity, and availability of classified data and systems.
3) Secure areas shall be monitored through the use of intrusion detection systems, alarms, and/or video surveillance systems where feasible.
4) Supporting infrastructure shall be regularly serviced and maintained in accordance with the manufacturer’s recommendations.
5) Third parties shall sign in and out of a visitor log and shall be escorted or monitored by SVCE personnel.
ITS-07 [Vulnerability
Management]
Purpose: Methods to identify
vulnerabilities
Cadence: Review every one (1) year
1) SVCE-owned and/or managed Information Resources must use the Silicon Valley Clean Energy IT management-approved endpoint protection software and configuration. 2) Logs to record actions must be stored in a central log management solution and maintained for at least one year. A review of log files must be conducted regularly. 3) All files must be scanned for malware before use.
4) All Information Resources must be scanned regularly to identify missing updates. 5) Failed vulnerability scan results will be remediated based on a timeline: critical vulnerabilities remediated within 15 calendar days, high vulnerabilities remediated within 30 days, medium vulnerabilities remediated within 60 days, and low vulnerabilities remediated within 90 days of initial detection.
Information Technology Controls
2024 Policy Refresh
Item 5
PRESENTATION
Amended
27 Name Controls
ITS-08 [Business Continuity
Disaster Recovery]
Purpose: Plans for disruptive disasters
Cadence: Review every one (1) year
1) In the event of the loss or unavailability of the SVCE office, a natural disaster, or a scenario involving major disruption, the BC/DR plan shall be automatically activated. 2) The IT team will review the BC/DR standard on an annual basis. 3) Communications shall take place over IT-approved chats, email, phone, and online meeting tools.
ITS-09 [Incident Response]
Purpose: Practices for data breach
response
Cadence: Review every one (1) year
1) In the event of an information security incident, the Incident Management Plan will provide direction to address the incident with clear steps to prepare, identify, handle, and/or recover SVCE Information Resources.
2) The plan includes a description of roles and responsibilities, the establishment of an Incident Response Commander, and key contacts.
ITS-09A01 [Incident Response
Plan]
Purpose: Plan for data breach
response
Cadence: Review every one (1) year
1) Establishes a Cyber Security Incident Handling Team (IHT) consisting of legal experts, risk managers, and other department managers. The CFO, an IHT member, seeks approval from Executive Management (i.e., the CEO, also an IHT member) to administer the Incident Response Program. 2) Establishes a Cyber Security Incident Response Team (CSIRT) comprised of IT management and experienced personnel to move the incident to containment, investigation, and recovery. 3) Outlines detailed Incident Response Framework consisting of six phases - preparation, identification and assessment, containment and intelligence, eradication, recovery, and lessons learned with a summary of checklist items in Appendix III.
Information Technology Controls
2024 Policy Refresh
Item 5
PRESENTATION
Amended