Silicon Valley Clean Energy Board of Directors
March 12, 2025

Staff Report – Item 1g
Item 1g: Authorize the Chief Executive Officer to Enter a Midterm Agreement to Purchase Small Hydroelectric Qualifying for Renewable Portfolio Standard Energy from East Bay Municipal Utilities District for a Five-Year Term and Amount Not to Exceed $30,000,000
From: Monica Padilla, CEO
Prepared by: Kris Van Vactor, Director of Power Resources Britta Bradshaw, Power Resource Manager
Date: 03/12/2025

RECOMMENDATION
Staff recommends that the Silicon Valley Clean Energy (SVCE) Board of Directors (Board) delegate authority to the Chief Executive Officer (CEO) to finalize and execute an agreement with East Bay Municipal Utilities District (EBMUD) for small hydroelectricity (“Agreement”), with the following provisions:

1. Purchase of 2025-2030 RPS Hydro Energy from EBMUD
a. Approximately 38,000 to 200,000 megawatt hours (MWh) per year of Renewable Portfolio Standard (RPS) Portfolio Category Content One (“PCC1”) eligible resources from existing small hydroelectric facilities located in Northern California; b. 5-Year term with delivery term from July 1, 2025, through June 30, 2030; c. Contract form to be used is the WSPP PCC1 Confirmation; Purchase price reflected as indexed energy plus Renewable Energy Certificate (REC) price per MWh; and d. Total amount not-to-exceed $30,000,000.

Execution of the Agreement will help SVCE meet SVCE Board-directed clean energy targets and California’s RPS and clean procurement mandates. The Agreement is provided in substantive form (Attachment 1).

Delegation of authority is needed as the CEO does not have the authority to transact with EBMUD.

BACKGROUND
In February, EBMUD launched a Request for Offers (RFO) to sell PCC1 Renewable Energy Credits (RECs) from small hydroelectric and biogas facilities owned and operated by EBMUD, with deliveries starting July 1, 2025.

EBMUD is a publicly owned water and wastewater utility in Alameda and Contra Costa counties. The PCC1 volumes offered by EBMUD in this sale are those in excess of what is needed to power its own operations.

SVCE’s offer for a five-year contract was accepted, contingent upon SVCE board approval.

As a load serving entity (LSE), SVCE is subject to clean energy and RPS targets under Senate Bill 100 (“SB 100”) which set a goal of achieving a 60% RPS by 2030 and a 100% clean energy grid by 2045 with interim targets of 90% by 2035 and 95% by 2040 as provided for under Senate Bill 1020.

Additionally, SVCE’s Board-directed clean energy goals establishes a 100% clean energy on an annual basis and to achieve a 75% RPS in 2030-2034 (with a 10% margin of error) as approved by the Board in the November 13, 2024 SVCE Board of Directors Meeting, Item 4.

Item 1g
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1g Agenda Date: 03/12/2025

ANALYSIS & DISCUSSION
SVCE has made significant progress towards its RPS and clean energy targets. For 2025, SVCE’s expected clean position is expected to be approximately 97% and its RPS position is expected to be approximately 50%. The EBMUD hydro volumes can improve the RPS and clean positions by approximately 1-4 percent annually. While SVCE expects to meet its clean targets in 2026-2027, the EBMUD hydro can provide an additional buffer to both RPS and clean positions, and can help SVCE’s positions in 2028-2030 where SVCE has additional procurement need.

Table 1: Impact to SVCE RPS and Clean Energy Targets
Calendar
Year
SB 100 RPS
Target
Board
RPS Target
Expected
SB 100
Position
(without
EBMUD
Volumes)
SB
100 Position
with
average
expected
EBMUD
Volumes
Clean
Position
(expected)
Clean
Position
with
average
expected
EBMUD
Volumes
2025 47% 52% 50% 51% 97% 99%
2026 50% 52% 62% 65% 100% 103%
2027 52% 54% 69% 72% 108% 111%
2028 55% 57% 73% 76% 84% 87%
2029 57% 59% 75% 77% 84% 87%
2030 60% 65-75% 73% 74% 78% 79%
Table 2: Summary of Proposed Resources
Counterparty East Bay Municipal Utilities
District
Product PCC1 energy and RECs
from existing small
hydroelectric facilities
Need and/or
Compliance Obligation
SVCE’s 100% Clean
energy goal and RPS
target
SB100
Expected Delivery
Term
5 years, July 1, 2025 – June 30,
2030.

Contract Quantity 38,000 – 200,000 MWh per year,
unit contingent
Locations Pardee Power Plant (30 MW) in
Valley Springs, CA – Calaveras
County
Camanche Power Plant (9.99 MW)
in Clements, CA – San Joaquin
County
Percentage of Retail
Load Served/RPS
1-4%
Item 1g
Agenda Item: 1g Agenda Date: 03/12/2025

RPS Compliance & Clean Energy
SB100 sets annual RPS targets starting in 2020 growing to 60% in 2030 and further sets a 100% clean energy goal by 2045. SVCE’s board-approved RPS Target sets an RPS target of 75% by 2030. EBMUD hydro will provide an estimated 38,000-200,000 MWh of RPS eligible energy per year from two in-state small hydroelectric facilities, bringing SVCE’s expected RPS in 2030 to an expected 74-75%. The annual cost will not exceed approximately $6 million.

SVCE works towards a 100% clean energy goal measured annually. This will be achieved through a mix of RPS-eligible resources including wind, solar and geothermal combined with non-RPS eligible, but carbon-free resources such as large hydroelectricity and nuclear energy. Strategically, resources which can deliver clean energy in all hours of the day, such as geothermal, will best help SVCE balance its objectives, however, such resources are scarce. Small hydro, while intermittent, can complement SVCE’s existing renewable energy portfolio by providing generation outside of hours when solar energy is at its peak. These types of resources are necessary to meeting current retail product needs including GreenStart, GreenPrime and GreenPrime Direct in addition to helping us build a pathway to 24/7 clean energy.

ALTERNATIVE
While the EBMUD RPS purchase can help SVCE meet overall RPS and clean goals, the Board may decide not to approve this resource and instead seek other short-term resources or seek no additional clean or RPS-eligible resources at this time. Staff does not recommend seeking other short-term resources, as market prices for PCC1 RPS resources may be higher than the those associated with the EBMUD hydro. Additionally, staff does not recommend forgoing the purchase of this additional RPS-eligible, clean energy, as SVCE would be left with an expected clean position of only 97% in 2025 and very small buffer to its RPS compliance; if planned clean and renewable resources are delayed or produce lower volumes than expected, it may be difficult for SVCE to meet its targets.

STRATEGIC PLAN
Board approval to delegate authority to the CEO to enter into a midterm agreement to purchase PCC1 RECs from EBMUD will enable staff to meet the current board directed clean targets and California RPS requirement, consistent with goals and objective as outlines in SVCE’s Strategic Plan, in particular, Goal #4: Acquire power supply resources in a cost-effective manner to meet legislative and regulatory obligations, Board directives and customer specific products.

FISCAL IMPACT
Execution of the EBMUD Hydro Agreement will result in deliveries starting in July 2025. The Board-approved Fiscal Year 2024-25 Budget includes sufficient funds to meet SVCE’s RPS and clean targets. Funds for resources delivered in 2026-2030 would be included in the respective future budgets.

ATTACHMENTS

1. EBMUD-SVCE WSPP PCC1 Confirmation – redacted version Item 1g
{00651937;3} 1

CONFIRMATION

BUNDLED RENEWABLE ENERGY
PCC1
This confirmation agreement (“Confirmation”) confirms the Transaction between Silicon Valley Clean Energy Authority, a California joint powers authority (“Purchaser”) and East Bay Municipal Utility District (“Seller”), each individually a “Party” and together the “Parties,” dated as the last dated signature on the signature page (“Effective Date”) regarding the purchase and sale of the Product pursuant to the terms and conditions contained herein. The Master Agreement, WSPP Service Schedule R and this Confirmation shall be collectively referred to herein as the “Agreement” and supersede and replace any prior oral or written confirmation regarding the Transaction (as defined below). Terms capitalized but not defined herein shall have the meaning as set forth in the Master Agreement, WSPP Service Schedule R or the CAISO Tariff.

Contact Information:

Seller: East Bay Municipal Utility District Purchaser: Silicon Valley Clean Energy Authority
Master Agreement: WSPP Agreement effective October 21, 2024, including; WSPP Service Schedule R. Any conflicts between the Master Agreement and the Confirmation shall be resolved in the following order of control: first, the Confirmation; and second, the Master Agreement.

Transaction: Seller owns or procures Seller’s Entitlement Interest in the output of certain generating facilities, which are identified in this Confirmation, each of which qualifies as an eligible renewable energy resource (“ERR”) during the Delivery Term (as defined below) under the California RPS (as defined below), as codified at California Public Utilities Code Section 399.11, et seq., and Seller desires to sell to Purchaser, and Purchaser desires to accept from Seller, Product produced by such generating facilities pursuant to the terms and conditions set forth herein.

Product: “Product” means (a) electricity along with the associated Green Attributes and Renewable Energy Certificates (“RECs”) that meets the RPS compliance requirements of California Public Utilities Code Section 399.16(b)(1) and CPUC Decision 11-12-052(“Portfolio Content Category Product 1” or “PCC1”), produced during the Delivery Term by the Projects {00651937;3} 2
listed herein, each of which is: (i) certified as an ERR for the California RPS and registered with WREGIS, and (ii) from which Seller is entitled, pursuant to its agreements, to Seller’s Entitlement Interest of the output of the Energy and associated Green Attributes, and such output is used to source the Product delivered hereunder during the Delivery Term (collectively, the “Generating Facilities”) and, to the extent not inconsistent with the foregoing, (b) Facility As-Run Bundled REC as such is described under Section R-2.3.6 of the WSPP Service Schedule R. The Product does not include any other non-renewable and environmental attributes (e.g., Ancillary Services or Resource Adequacy Capacity).

Seller: East Bay Municipal Utility District
Purchaser: Silicon Valley Clean Energy Authority
Delivery Term:

Generating Facilities: Each Project is identified below and further described in Exhibit A.

Facility
Name CAISO Resource ID WREGIS ID
CEC
Certification
No.

Estimated Annual
Generation
(MWh)1
Pardee Power
Plant PARDEB_6_UNITS W233, W241, W242 60536
Camanche
Power Plant CAMCHE_1_PL1X3 W243 60535
1 Delivery Points: CAISO Balancing Authority Area at each Project’s point of interconnection.

Scheduling: Seller or Seller’s designee shall schedule and deliver the Energy portion of the Product, on behalf of Purchaser, from the Projects listed herein to the Delivery Points in the CAISO Balancing Authority Area, in accordance with the requirements and the prevailing protocols of the WECC and CAISO Tariff. Seller may, according to its sole discretion, schedule generation to comply with its Operating Constraints, to meet on-site energy demands, and for any other purpose that is consistent with the performance of the Seller’s obligations under the Agreement.

Contract
Quantity: All of the available Product generation from of Seller’s Entitlement Interest generated from the Generating Facilities. The amount of Product delivered from Seller to Purchaser during any applicable dispatch interval during the Delivery Term of the Transaction shall be limited to the available quantity {00651937;3} 3
of Seller’s Entitlement Interest in the output of each Generating Facility listed herein. Available quantity of Product generation from the Pardee and Camanche Power Plants is dependent on release rates, determined at Seller’s sole discretion, to meet storm events, water rights obligations, the needs of the Camanche Fish Hatchery, or other needs or obligations of Seller. Seller has provided Purchaser with historical information for the estimation of available Product during the Term, but Seller expressly disclaims any obligation to deliver a minimum Contract Quantity, and the Parties understand that future availability of Contract Quantity may be different from historical records.

Contract Price: The Contract Price for Energy (“Energy Contract Price”) shall be equal to the CAISO Locational Marginal Price calculated at the Delivery Point PNode per megawatt hour (as the same may be netted in accordance with the Payment section below).

The Contract Price for each REC produced and transferred from Seller to Purchaser (“REC Contract Price”) shall be equal to .

Eligibility: Seller, and, if applicable, its successors, represents and warrants that throughout the Delivery Term of this Agreement: (i) the Projects qualify and are certified by the CEC as an Eligible Renewable Energy Resource (“ERR”) as such term is defined in Public Utilities Code Section 399.12 or Section 399.16; and (ii) the Projects’ output delivered to Buyer qualifies under the requirements of the California Renewables Portfolio Standard.

To the extent a change in law occurs after execution of this Agreement that causes this representation and warranty to be materially false or misleading, it shall not be an Event of Default if Seller has used commercially reasonable efforts to comply with such change in law. [STC 6, Non-Modifiable. (Source: D.07-11-025, Attachment A.) D.08-04-009] The aggregate “commercially reasonable efforts” expenditures for Eligibility, Transfer of RECS, and Change of Law Provisions (Section R-5.2.2(b)) are limited to the Capped Amount.

Transfer of RECs: Transfer of Renewable Energy Credits. Seller and, if applicable, its successors, represents and warrants that throughout the Delivery Term of this Agreement the Renewable Energy Credits transferred to Buyer conform to the definition and attributes required for compliance with the California Renewables Portfolio Standard, as set forth in California Public Utilities Commission Decision 08-08-028, and as may be modified by subsequent decision of the California Public Utilities Commission or by subsequent legislation. To the extent a change in law occurs after execution of this Agreement that causes this representation and warranty to be materially false or misleading, it shall not be an Event of Default if Seller has used commercially reasonable efforts to comply with such change in law. [STC REC-1, Non-modifiable. D.11-01-025]
{00651937;3} 4
Tracking of RECs in WREGIS. Seller warrants that all necessary steps to allow the Renewable Energy Credits transferred to Buyer to be tracked in the Western Renewable Energy Generation Information System will be taken prior to the first delivery under the contract. [STC REC-2, Non-modifiable. D.11-01-025] Purchaser warrants that all necessary steps to allow the Renewable Energy Credits transferred to Purchaser to be tracked in the Western Renewable Energy Generation Information System will be taken prior to the first delivery under the contract.

The Transfer of RECs shall be made in accordance with the rules and regulations of WREGIS. For each month during the Delivery Term, Seller shall transfer RECs from its WREGIS account to Purchaser’s WREGIS account within ten (10) Business Days of creation of the RECs. If Purchaser’s WREGIS account ID is not available as of the Effective Date, Purchaser will provide it to Seller promptly once Purchaser receives the WREGIS account ID.

Vintage: Calendar Year(s):

Payment: Energy: To simplify the scheduling and settlement process based on the current CAISO market scheduling and settlement protocols, whereby CAISO will pay the Seller for the value of the Energy produced and delivered by the Generating Facilities at the Delivery Point on behalf of Purchaser, the Parties agree that Seller shall schedule and deliver an amount of Energy consistent with the Contract Quantity during the Delivery Period with and to the CAISO at the Delivery Point(s), and Seller shall receive payment for the Energy from the CAISO for such delivery based on the CAISO Locational Marginal Price. Consequently, and consistent with applicable netting provisions of the Master Agreement, Purchaser and Seller hereby agree to net the payment for Energy Seller receives from the CAISO against the Contract Price, such that the net payment Seller shall receive from Purchaser shall be calculated as follows:

Payment Due from Purchaser to Seller = Delivered and Accepted Contract Quantity * REC Contract Price.

Such payments received by Seller from the CAISO will be credited in full satisfaction of Purchaser’s payment obligation for Project Energy under this Transaction.

RECs: Purchaser shall pay Seller for transferred RECs within ten (10) Business Days of receipt of Seller’s invoice subsequent to the transfer of RECs, or the 20th day of the month, whichever is later. If the 20th day is not {00651937;3} 5
a Business Day, then the next Business Day. The invoices issued by Seller hereunder shall include a statement detailing the RECs conveyed via WREGIS (i.e., Project Name, Vintage Month, CEC RPS ID, Contract Quantity and REC Contract Price).

Environmental
Attributes: All Attributes. The Product is a Facility As-Run Bundled REC sourced from the Generating Facilities. The Parties agree that the Product will be sourced only from the specific Generating Facilities identified in the Confirmation with no substitutions.

Applicable
Program: State of California Renewable Portfolio Standard Program (herein referred to as “California RPS”, “Renewables Portfolio Standards” or “RPS Program”), as codified at California Public Utilities Code Section 399.11, et seq., and requiring that a specified percentage of a load-serving entity’s retail sales should be supplied with electricity generated by eligible ERRs.

Tracking System: RECs associated with the Product shall be tracked using WREGIS. In addition to any audit rights that Purchaser may have under the Master Agreement, Seller shall, upon Purchaser’s reasonable request, provide documentation, which may include meter data as recorded by a CAISO certified meter, sufficient to demonstrate that the Product has been conveyed and delivered, in accordance with the terms of this Confirmation.

Representations
and Warranties: Each Party represents and warrants to the other (i) that it is an “eligible commercial entity” and “eligible contract participant” within the meaning of the Commodity Exchange Act; (ii) this transaction has been subject to individual negotiation by the Parties; and, (iii) all necessary steps have been taken to allow the Green Attributes to be transferred to Purchaser to be tracked in WREGIS.

Seller further represents and warrants to Purchaser that:
(i) Seller has the right to sell the Product and holds the rights to Seller’s Entitlement Interest in all Product from the Generating Facilities; (ii) Seller has not sold the Product or any Green Attribute of the Product to be transferred to Purchaser to any other person or entity; (iii) Energy and Green Attributes to be purchased and sold pursuant to this Confirmation are not committed to another party;
(iv) Seller represents and warrants that electricity from the Generating Facilities is available to be procured by Purchaser, and Seller is not {00651937;3} 6
currently selling and will not sell the electricity produced by the Generating Facilities back to the Generating Facilities; (v) the Product is free and clear of all liens or other encumbrances; and (vi) it will cooperate and work with Purchaser, the CEC, and/or the CPUC to provide any documentation required by the CPUC or CEC to support the Product’s classification as a Portfolio Content Category 1 Product as set forth in California Public Utilities Code Section 399.16(b)(1).

Furthermore, Seller hereby sells and conveys all Green Attributes associated with the Product produced from the Generating Facilities (other than resource adequacy attributes and ancillary services) to Purchaser as part of the Portfolio Content Category 1 Product being delivered.

Change in Law
Provisions: The Product shall be Regulatorily Continuing requiring that Seller make commercially reasonable efforts to obtain compliance with Changes in Law in the California RPS, provided that such costs should not be greater than in the aggregate each year of
the Term (“Compliance Expenditure Cap”) between the Execution Date and the last day of the Term. (the “Capped Amount”). This provision shall not apply to any Product that was Delivered and Accepted prior to any Change in Law if such Product complies with the California RPS that existed when it was Delivered and Accepted.

This Confirmation is executed for the express purposes of complying with the California RPS and Section 399.16(b)(1) of the California Public Utilities Code. The Parties acknowledge that the CEC and/or CPUC may be modifying mandatory contract language, altering the procurement and product qualification rules, and updating the relevant RPS Eligibility Guidebook in a manner consistent with that legislation. If any statutes, rules, regulations, permits or authorizations are enacted, amended, granted or revoked which have the effect of changing the transfer and sale procedure set forth in this Confirmation so that the implementation of this Transaction becomes impossible or impracticable, or otherwise revokes or eliminates the California RPS or language required to conform to the California RPS, the Parties hereto agree to negotiate in good faith to amend this Confirmation to conform with such new statutes, regulations, or rules in order to maintain the original intent of the Parties under this Agreement.

Reporting
Obligation: Purchaser shall have no responsibility (whether regulatory or financial) for greenhouse gas emissions associated with the Product, and any such obligation shall be fulfilled by or at the direction of Seller at its own cost. {00651937;3} 7
Review: To monitor compliance with this Confirmation, each Party reserves the right to review during normal business hours and at its own expense, for up to two (2) years following delivery of the Product under this Confirmation, and with reasonable advance notice to the other Party, and to the extent that such other Party is in possession of such information, information required to verify that the Product sold under this Confirmation was not otherwise sold by Seller to a third party.

Confidentiality: The Parties acknowledge and agree that the Agreement is subject to the requirements of the California Public Records Act (Government Code Section 7920 et seq.). Each Party (a “Receiving Party”) acknowledges that the other Party (a “Disclosing Party”) may submit information to the Receiving Party that the Disclosing Party considers confidential, proprietary, or trade secret information pursuant to the Uniform Trade Secrets Act (Cal. Civ. Code section 3426 et seq.), or otherwise protected from disclosure pursuant to an exemption to the California Public Records Act. In order to designate information as confidential, the Disclosing Party must clearly stamp and identify the specific portion of the material designated with the word “Confidential”. The Parties agree not to over-designate material as confidential. Over-designation would include stamping whole agreements, entire pages or series of pages as confidential that clearly contain information that is not confidential. Upon request or demand of any third person or entity not a party to this Agreement (“Requestor”) for production, inspection and/or copying of information designated by a Party as confidential information (such designated information, the “Confidential Information”), the Receiving Party shall notify the Disclosing Party as soon as practical that such request has been made. The Disclosing Party shall be solely responsible for taking whatever legal steps are necessary to protect information deemed by it to be Confidential Information and to prevent release of information to the Requestor by the Receiving Party. If the Disclosing Party takes no such action after receiving the foregoing notice from the Receiving Party, the Receiving Party shall be permitted to comply with the Requestor’s demand and is not required to defend against it.

If required by any law, statute, ordinance, a court, Governmental Authority or agency having jurisdiction over a Party, including the California Public Records Act, that Party may release Confidential Information, or a portion thereof, as required by the Applicable Law, statute, ordinance, decision, order or regulation. A Party may disclose Confidential Information to accountants in connection with audits. In the event a Party is required to release Confidential Information, such Party shall notify the other Party of the required disclosure, such that the other Party may attempt (if such Party so chooses), at its sole cost, to cause the recipient of the Confidential Information to treat such information in a confidential manner, and to prevent such information from being disclosed or otherwise becoming part {00651937;3} 8
of the public domain. Parties acknowledge that Purchaser may be obligated to provide Confidential Information to the CPUC and CEC for regulatory compliance purposes for the California RPS program, and Seller waives the prior notice requirement and authorizes such disclosures to the CPUC and CEC.

Except as provided in this Confidentiality section and the California Public Records Act, and subject to and without limiting Section R-7, neither Party shall publish, disclose, or otherwise divulge Confidential Information to any person at any time during or after the term of this Agreement, without the other Party’s prior express written consent. Each Party shall permit knowledge of and access to Confidential Information only to those of its affiliates and to their respective attorneys, accountants, representatives, agents and employees who have a need to know such Confidential Information related to this Agreement.

Applicable Law/
Governing Law: This Agreement and the rights and duties of the Parties hereunder shall be governed by and construed, enforced and performed in accordance with the laws of the state of California, without regard to principles of conflicts of law. To the extent enforceable at such time, each Party waives its respective right to any jury trial with respect to any litigation arising under or in connection with this Agreement. [STC 17].

No Recourse to
Members of Purchaser: Purchaser is organized as a Joint Powers Authority in accordance with the Joint Exercise of Powers Act of the State of California (Government Code Section 6500, et seq.) and is a public entity separate from its constituent members. Purchaser will solely be responsible for all debts, obligations and liabilities accruing and arising out of this Confirmation. Seller will have no rights and will not make any claims, take any actions or assert any remedies against any of Purchaser's constituent members, or the officers, directors, advisors, contractors, consultants or employees of Purchaser or Purchaser's constituent members, in connection with this Confirmation.

FERC Standard of
Review; Mobile-Sierra Waiver: (a) Absent the agreement of all Parties to the proposed change, the standard of review for changes to any rate, charge, classification, term or condition of this Agreement, whether proposed by a Party (to the extent that any waiver in subsection (b) below is unenforceable or ineffective as to such Party), a non-party or FERC acting sua sponte, shall solely be the “public interest” application of the “just and reasonable” standard of review set forth in United Gas Pipe Line Co. v. Mobile Gas Service Corp., 350 U.S. 332 (1956) and Federal Power Commission v. Sierra Pacific Power Co., 350 U.S. 348 (1956) and clarified by Morgan Stanley Capital Group, Inc. v. {00651937;3} 9
Public Util. Dist. No. 1 of Snohomish, 554 U.S. 527 (2008), and NRG Power Marketing LLC v. Maine Public Utility Commission, 558 U.S. 527 (2010).
(b) In addition, and notwithstanding the foregoing subsection (a), to the fullest extent permitted by applicable law, each Party, for itself and its successors and assigns, hereby expressly and irrevocably waives any rights it can or may have, now or in the future, whether under §§ 205 and/or 206 of the Federal Power Act or otherwise, to seek to obtain from FERC by any means, directly or indirectly (through complaint, investigation or otherwise), and each hereby covenants and agrees not at any time to seek to so obtain, an order from FERC changing any section of this Agreement specifying the rate, charge, classification, or other term or condition agreed to by the Parties, it being the express intent of the Parties that, to the fullest extent permitted by applicable law, neither Party shall unilaterally seek to obtain from FERC any relief changing the rate, charge, classification, or other term or condition of this Agreement, notwithstanding any subsequent changes in applicable law or market conditions that may occur. In the event it were to be determined that applicable law precludes the Parties from waiving their rights to seek changes from FERC to their market-based power sales contracts (including entering into covenants not to do so) then this subsection (b) shall not apply, provided that, consistent with the foregoing subsection (a), neither Party shall seek any such changes except solely under the “public interest” application of the “just and reasonable” standard of review and otherwise as set forth in the foregoing section (a).

Forward Contract: This Confirmation constitutes a sale of a nonfinancial commodity for deferred shipment or delivery that the parties intend to be physically settled and is excluded from the term “swap” as defined in the Commodity Exchange Act under 7 U.S.C. § 1a(47) and the regulations of the Commodity Future Trading Commission and Securities and Exchange Commission, with further reference to 77 Fed. Reg. 48233-35.

Amendments
To The Master
Agreement: Assignment. Section 14, Transfer of Interest in Agreement, of the WSPP Agreement shall for purposes of this Confirmation be deleted in its entirety and replaced with the following: “Neither Party shall transfer, assign or sell its rights as set forth in this Confirmation, to any third party without first obtaining the prior written consent of the other Party. Notwithstanding the foregoing, no such consent shall be required to the extent that the transfer or sale occurs (i) to an affiliate of a Party by operation of law, through merger or acquisition, or as the result of the sale or transfer of all or substantially all of the transferring Party’s assets, and the resulting entity’s creditworthiness is equal to or higher than that of such Party as of the Effective Date of this Confirmation, or (ii) the obligations of such Affiliate are guaranteed by such Party or its Guarantor, if any, in accordance with a {00651937;3} 10
guaranty agreement in form and substance satisfactory to the other Party, and (iii) transfer or assign this Confirmation is to any person or entity succeeding to all or substantially all of the assets of such Party whose creditworthiness is equal to or higher than that of such Party or its Guarantor, if any, as of the Effective Date of this Confirmation.” Creditworthiness. Section 27. Notwithstanding any other provision of the Agreement, Section 27 of the Master Agreement is not applicable to, and credit support is not required for either Party under this Confirmation.

Confidentiality. Section 30, Confidentiality, of the WSPP Agreement is amended for purposes of this Confirmation by inserting at the end of Section

30.1(6) prior to the semicolon the following: “or to Deliver RECs pursuant to the requirements of WREGIS”.

Counterparts: This Confirmation may be signed in any number of counterparts with the same effect as if the signatures to the counterparty were upon a single instrument. Delivery of an executed signature page of this Confirmation by electronic mail transmission (including PDF) shall be the same as delivery of a manually executed signature page.

Entire Agreement;
No Oral Agreements
Or Modifications: This Confirmation sets forth the terms of the Transaction into which the Parties have entered and shall constitute the entire Agreement between the Parties relating to the contemplated purchase and sale of the Product.

Notwithstanding any other provision of the Agreement, this Confirmation may be entered into only by a Documentary Writing executed by both Parties, and no amendment or modification to this Confirmation shall be enforceable except through a Documentary Writing executed by both Parties.

Purchaser Limited
Assignment: Purchaser may make a limited assignment of Purchaser’s right to receive all or a portion of the Product that would otherwise be delivered to Purchaser hereunder to an entity (“Limited Assignee”) that has, or provides a parent guaranty, in form and substance reasonably acceptable to Seller from an entity with, an investment grade credit rating. In connection with any such assignment, Purchaser and Seller agree to execute a limited assignment agreement substantially in a similar form of agreement that is reasonably acceptable to Purchaser and Seller. For the avoidance of doubt, Purchaser will remain responsible for all its obligations under this Agreement related to such assigned Product, including (i) the obligation to pay for such Product to the extent the Limited Assignee does not do so and (ii) any damages associated with such Limited Assignee’s failure to take any such Product.

Notwithstanding anything to the contrary in Section 30.1 of the WSPP {00651937;3} 11
Agreement, the Parties agree that Purchaser may disclose a copy of this Confirmation to Limited Assignee, who shall comply with the Section 30.1 of the WSPP Agreement as if it were a signatory thereto.

Definitions/
Interpretations: For purposes of the Confirmation, the following definitions and rules of interpretations shall apply:
“Applicable Law” means all legally binding constitutions, treaties, statutes, laws, ordinances, rules, regulations, orders, interpretations, permits, judgments, decrees, injunctions, writs and orders or any Governmental Authority or arbitrator that apply to RPS or any one or both of the Parties or the terms hereof.
“Buyer” as used herein shall have the same meaning as “Purchaser” under the WSPP Agreement. “CAISO” means the California ISO.
“CAISO Tariff” means the CAISO FERC Electric Tariff.
“CEC” means the California Energy Commission.
“CPUC” means the California Public Utilities Commission. “Green Attributes” means any and all credits, benefits, emissions reductions, offsets, and allowances, howsoever entitled, attributable to the generation from the Generating Facilities, and its avoided emission of pollutants. Green Attributes include but are not limited to RECs, as well as: (1) any avoided emission of pollutants to the air, soil or water such as sulfur oxides (SOx), nitrogen oxides (NOx), carbon monoxide (CO) and other pollutants; (2) any avoided emissions of carbon dioxide (CO2), methane (CH4), nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride and other greenhouse gases (GHGs) that have been determined by the United Nations Intergovernmental Panel on Climate Change, or otherwise by law, to contribute to the actual or potential threat of altering the Earth's climate by trapping heat in the atmosphere; (3) the reporting rights to these avoided emissions, including but not limited to Green Tag Reporting Rights. Green Tag Reporting Rights are the right of a Green Tag Purchaser to report the ownership of accumulated Green Tags in compliance with federal or state law, if applicable, and to a federal or state agency or any other party at the Green Tag Purchaser's discretion, and include without limitation those Green Tag Reporting Rights accruing under Section 1605(b) of The Energy Policy Act of 1992 and any present or future federal, state, or local law, regulation or bill, and international or foreign emissions trading program. Green Tags are accumulated on a MWh basis and one Green Tag represents the Green Attributes associated with one (1) MWh of Energy. Green Attributes do not include (i) any energy, capacity, reliability or other power attributes from the Generating Facilities, (ii) production tax credits associated with the construction or operation of the Generating Facilities and other financial incentives in the form of credits, reductions, or allowances associated with the project that are applicable to a state or federal income taxation obligation, (iii) fuel-related subsidies or "tipping fees" that may be paid to Seller to accept certain fuels, or local subsidies received by the generator for the destruction of particular preexisting {00651937;3} 12
pollutants or the promotion of local environmental benefits, or (iv) emission reduction credits encumbered or used by the Generating Facilities for compliance with local, state, or federal operating and/or air quality permits. If the Generating Facilities are biomass or biogas facility and Seller receives any tradable Green Attributes based on the greenhouse gas reduction benefits or other emission offsets attributed to its fuel usage, it shall provide Purchaser with sufficient Green Attributes to ensure that there are zero net emissions associated with the production of electricity from the Generating Facilities.
“Operating Constraints” means the factors that affect the amount of water available for release through the hydroelectric facilities at the Projects’ reservoirs. Such factors include without limitation, fuel availability, water release requirements and obligations, water rights, water needs, water supply obligations, fisheries requirements, flood control requirements, storage constraints, environmental restrictions, water quality restrictions, safe operation of Seller’s facilities, good utility practice, forecast uncertainty, and any other constraints, limitations, or restrictions all determined in Seller’s sole discretion, and subject to Seller’s compliance with applicable existing settlement agreements, decrees, and contracts, all relevant existing and future federal, state, and local legislation, rules, regulations, and administrative orders, and Seller’s policies and procedures for complying with the above constraints.
“Seller’s Entitlement Interest” mean Seller’s right and interest to the output and production attributes associated with each generating facility set out in Appendix A, whether established through ownership or contractual rights.
“WECC” means the Western Electricity Coordinating Council or its successor organizations. “WREGIS” mean the Western Renewable Energy Generation Information System, or its successor organization.
[SIGNATURE PAGE FOLLOWS]
{00651937;3}
35428298v3
ACKNOWLEDGED AND AGREED TO AS OF THE EFFECTIVE DATE:

SILICON VALLEY CLEAN ENERGY
Authority, a California joint powers
authority

EAST BAY MUNICIPAL UTILITY

DISTRICT

By: By:

Name: Name:

Title: Title:

Date: Date:

Approved as to form:

By:

Name:

Title:

Date:
{00651937;3} Exhibit A-1
35428298v3

EXHIBIT A

PROJECTS
Unit Name: Pardee Power Plant
CAISO RESID: PARDEB_6_UNITS
CEC RPS ID: 60536
WREGIS IDs: W233, W241, W242
Facility Location: Valley Springs, CA
Facility Location:

Facility Location:

Facility Location:

Facility(ies) Directly Interconnected to a CBA: Yes
CBA’s of Interconnection: CAISO
Facility Generation Capacity: 30 MW (PMAX)
Facility Fuel Type: Small Hydro
Unit Name: Camanche Power Plant
CAISO RESID: CAMCHE_1_PL1X3
CEC RPS ID: 60535
WREGIS ID: W243
Facility Location: Clements, CA
Facility Location:

Facility Location:

Facility Location:

Facility Directly Interconnected to a CBA: Yes
CBA’s of Interconnection: CAISO
Facility Generation Capacity: 9.99 MW (PMAX)
Facility Fuel Type: Small Hydro

Staff Report – Item 1h
Item 1h: Adopt Resolution to Establish Rate Stabilization Fund Under Government Accounting Standard Board (GASB) Standard 62
From: Monica Padilla, CEO
Prepared by: Amrit Singh, CFO and Director of Administrative Services Date: 3/12/2025

RECOMMENDATION
Staff recommends that the SVCE Board of Directors (Board) adopt resolution 2025-06 to establish a Rate Stabilization Fund under the Government Accounting Standard Board (GASB) Standard 621.

FINANCE AND ADMINISTRATION COMMITTEE and AUDIT COMMITTEE RECOMMENDATION Staff first reviewed the proposal to establish a rate stabilization fund under GASB 62 with the Finance and Administration Committee (F&A Committee) at the November 25, 2024, meeting. The F&A Committee was supportive of the proposal, and staff committed to finalizing the proposal and returning to review it with the F&A Committee prior to seeking Board approval. At the February 26th, 2025, meeting, the F&A Committee reviewed the staff’s proposal and voted unanimously that the Board of Directors approve the establishment of a Rate Stabilization fund under GASB standard 62 and agreed with staff to submit the proposal via the consent calendar.

Staff also presented the proposal to create a rate stabilization fund under GASB 62 to the Audit Committee at the February 28th, 2025, meeting as an informational item.

BACKGROUND
GASB 62 is an accounting method available to government entities, allowing SVCE to recognize revenues set aside for certain costs in the same period as expenses occur under Generally Accepted Accounting Principles (GAAP). Currently, the Board directs funding for programs and other earmarked projects, such as purchasing an SVCE office building, in each fiscal year’s budget. While these funds are transferred from the respective fiscal year’s operating budget (non-GAAP accounting), the financial statements (GAAP accounting) do not recognize these expenditures until they are incurred. Under GASB 62, revenues can be deferred to account for these earmarked funds to a Rate Stabilization Fund. When expenditure occurs, the deferred revenues can be recognized from the Rate Stabilization Fund.

Ava Community Energy, Clean Power Alliance, Marin Clean Energy, Orange County Power Authority, and Sonoma Clean Power have implemented GASB 62.

ANALYSIS & DISCUSSION
GASB 62 accounting will enable SVCE to defer revenues to future periods and recognize those revenues in periods when expenditures occur for projects that the Board directed those revenues toward. For example, for Fiscal Year 2023-2024, the Board directed $20 million toward purchasing an SVCE office building. With GASB 62, staff could have deferred revenues of $20 million, reducing the addition to the net position by $20 million. 1 The Governmental Accounting Standards Board (GASB) is the organization that determines and updates generally accepted accounting principles (GAAP) for government entities.

Item 1h
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1h Agenda Date: 03/12/2025

When SVCE completes purchasing the office building, SVCE could recognize the $20 million in deferred revenues, thereby not impacting that fiscal year's addition to net position or net revenues.

This accounting provision impacts the reporting of SVCE’s net position in the financial statements. It lowers the net position for the fiscal year, when revenues are deferred, and increases it for the fiscal year when those revenues are recognized. The deferred revenues create a corresponding liability in the Statement of Net Position. Staff’s assessment of the impact on readers of financial statements is likely positive because the net position can now account for unspent funds that are earmarked for projects, either not fully implemented or not yet started.

The criterion staff proposes to defer or recognize revenues to and from the rate stabilization fund will attempt to keep GAAP recognized net revenues positive to the extent possible. At the end of the fiscal year, staff working with SVCE’s Accountant may defer revenues such that total deferred revenues do not exceed the balance of unspent earmarked funds and the addition to net position does not fall below 2% of the revenues.

If the addition to the GAAP net position falls below 2% of revenues for any fiscal year, revenues may be recognized from the rate stabilization fund to the extent balance exists such that the GAAP addition to the net position is at or above 2% of the revenues and/or to adjust the rate stabilization balance to be consistent with the outstanding balance of all earmarked budgeted funds.

STRATEGIC PLAN
Prudently managing SVCE’s financial position is supported by Strategic Plan Goal 6 – “Maintain healthy financial position; avoid failures in the management of market risk, credit risk, liquidity risk, operational risks, and enterprise risks.”

FISCAL IMPACT
Implementing a Rate Stabilization Fund is an accounting change without direct financial impact. The fiscal year in which revenues are deferred would show a commensurate reduction in net revenues, and the fiscal year in which revenues are recognized would show a commensurate increase in net revenues in the financial statements.

ATTACHMENTS

1. Resolution 2025-06 to Establish a Rate Stabilization Fund Under GASB 62 for Silicon Valley Clean Energy

2. Presentation: Create an Accounting Rate Stabilization Fund Under GASB 62 Item 1h
1 RESOLUTION 2025-06

SILICON VALLEY CLEAN ENERGY AUTHORITY RESOLUTION
NO. 2025-06

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SILICON VALLEY

CLEAN ENERGY AUTHORITY TO ESTABLISH A RATE STABILIZATION FUND UNDER GASB 62 FOR SILICON VALLEY CLEAN ENERGY
WHEREAS, the Silicon Valley Clean Energy Authority (“Authority”) was formed on March 31, 2016, pursuant to a Joint Powers Agreement to study, promote, develop, conduct, operate, and manage energy programs in Santa Clara County; and WHEREAS, the Board of Directors deems it prudent to establish, designate, and maintain a Rate Stabilization Fund under Governmental Accounting Standards Board (GASB) Standard 62 to defer revenues to future periods and recognize those revenues in periods when expenditures occur that the Board of Directors designated those revenues toward;
WHEREAS, as determined by staff, revenues may be deferred to the Rate Stabilization Fund, provided that the amount deferred does not cause the Rate Stabilization Fund balance to exceed the outstanding balance of all earmarked budgeted funds, and the Generally Accepted Accounting Principles (GAAP) recognized addition to the net position does not fall below two percent of the revenues; WHEREAS, as determined by staff, revenues may be recognized from the Rate Stabilization Fund if the GAAP recognized net position falls below two percent of revenues and/or to adjust the Rate Stabilization balance to be consistent with the outstanding balance of all earmarked budgeted funds;
WHEREAS, the Rate Stabilization Fund shall be recognized in accordance with GASB 62;
NOW, THEREFORE, the Board of Directors hereby establishes a Rate Stabilization Fund under GASB 62 and authorizes the Chief Executive Officer or the Chief Financial Officer to transfer in or transfer out, from time to time, such amount as each such officer may determine as prudent and appropriate into or out of the Rate Stabilization Fund.

PASSED AND ADOPTED this 12th day of March 2025, by the following vote:

JURISDICTION NAME AYE NO ABSTAIN ABSENT
City of Campbell Director Scozzola
City of Cupertino Director Fruen
City of Gilroy Director Hilton
Item 1h
Attachment 1
2 RESOLUTION 2025-06
City of Los Altos Director Meadows
Town of Los Altos Hills Director Tyson
Town of Los Gatos Director Rennie
City of Milpitas Director Barbadillo
City of Monte Sereno Director Mekechuk
City of Morgan Hill Director Martinez Beltran
City of Mountain View Director Showalter
County of Santa Clara Director Lee
City of Saratoga Director Walia
City of Sunnyvale Director Klein
Chair
ATTEST:

Andrea Pizano, Board Secretary
Item 1h
Attachment 1
New SV Clean Energy
PowerPoint Template
Subtitle
Item 1h
Attachment 2
Create an Accounting Rate
Stabilization Fund Under
GASB 62
Amrit Singh
Board of Directors Meeting
March 12, 2025
M'SSILICON VALLEY <3/ CLEAN ENERGY
Item 1h
Attachment 2

1. Accounting Rule -GASB 62

2. 3. Financial Statement Illustration

4. 5.

6. Adopt resolution 2025-06 to establish a
Rate Stabilization Fund under GASB 62
Other CCA’s Using Rate Stabilization
Fund
Comparison of Reserves and Rate
Stabilization Fund
Criteria for Deferring and Recognizing
Revenues to and from the Rate
Stabilization Fund
Impact on Reader’s of Financial
Statement
•
•
•
•
•
•
Item 1h
Attachment 2
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 establish the fund 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 end 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 1h
Attachment 2
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 1h
Attachment 2
Financial Statement Impact Illustration

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 1h
Attachment 2
Potential Impact on Readers of Financial Statement
Readers Pros Cons Staff’s Overall
Assessment
Public Net position statement reflects
unspent but earmarked funds.

Shows unspent funds
as liabilities but the
Board can redirect to
other uses inthefuture.

Positive
Credit RatingAgencies
(S&P and Moody’s)
Demonstrates greater Board
commitment to separately set
aside funds to promote rate
stability.

Potential confusionthat
these liabilities reduce
financial liquidity.

CCAs, staff consulted
with have not
experienced this.

Positive
Counterparties(Energy
Suppliers,Financial
Institutions)
More stableyearly financial
statement of Revenues and
Expenses (Income Statement).

Potential confusionthat
these liabilities reduce
financial liquidity.

Positive
6 •
•
•
•
•
•
•
•
Item 1h
Attachment 2
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 1h
Attachment 2
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 the balance of earmarked funds and the GAAP 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, was about $100 million at the beginning of the fiscal year 2024-25.

If the addition to the GAAP net position falls below 2% of the revenues for any fiscal year and/or to adjust the Rate Stabilization balance to the outstanding balance of all earmarked budgeted funds, revenues may be recognized from the rate stabilization fund.
8 Item 1h
Attachment 2
® Recommendation
Adopt resolution 2025-06 to establish a rate stabilization fund under GASB 62
9 Item 1h
Attachment 2
Thank you! / Feedback / Questions?
10

Staff Report – Item 1i
Item 1i: Adopt Resolution Establishing the Silicon Valley Clean Energy Community Fund From: Monica Padilla, CEO
Prepared by: Zoe Elizabeth, Director, Decarbonization Policy and Community Strategies Date: 3/12/2025

RECOMMENDATION
Staff recommends the Silicon Valley Clean Energy (SVCE) Board of Directors (Board) adopt Resolution 2025- 07 (Attachment 1) establishing the Silicon Valley Clean Energy Community Fund (“the Fund”).

EXECUTIVE COMMITTEE AND FINANCE AND ADMINISTRATION COMMITTEE RECOMMENDATION Staff first brought the Fund proposal to the November 22, 2024 Executive Committee meeting and the November 25, 2024 Finance and Administration Committee meeting. The Executive Committee suggested expanding staff’s priorities to include affordability in addition to rate stabilization, which is reflected in the proposal presented to the Board of Directors in December 2024 for discussion only. The two committees agreed on the importance of establishing the fund to support long-term strategic priorities to meet SVCE’s mission and supported the proposal.

BACKGROUND
Meeting SVCE’s mission to, reduce dependence on fossil fuels by providing carbon-free, affordable, and reliable electricity and innovative programs for the SVCE community, requires delivering services and benefits to our customers today and developing strategic initiatives that enable us to deliver the long-term benefits to our community. The Silicon Valley Clean Energy Community Fund sets aside funding, when available, to fund initiatives and services in the following mission-aligned priority areas:

1. Rate Stabilization and Bill Affordability

2. Scalable Support for Pollution Free Appliances

3. Local and Emerging Power Supply Technology.

Staff brought the proposal for the Fund to the Board for discussion on December 11, 2024 (Item 4: SVCE Board of Directors Meeting, 12/11/24). At that meeting, Board members noted the importance of this proposal to meeting the SVCE mission and indicated agreement with the establishment of the Fund including the priorities.

ANALYSIS & DISCUSSION
At this time, staff requests that the Board adopt Resolution 2025-07 to establish the Fund, which will allow staff to begin planning. The amount to be transferred will be determined within SVCE’s budgeting process.

This process includes identifying funds available above the Reserve Policy Targets and how much is recommended to be transferred to the Fund.

How the Fund Would Work
If the Board approves an annual transfer, funding would be directed to each priority in the following percentages:

Item 1i
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1i Agenda Date: 3/12/2025

40% Rate Stabilization and Bill Affordability
40% Scalable Support for Pollution Free Appliances
20% Local and Emerging Power Supply Technology.

The Board will have the opportunity to approve an annual transfer, and in addition to approving annual allocations, when available, the Board will review and approve all detailed plans for use of the funds, e.g. the affordability measures and any potential appliance rebate programs. Finally, the Board retains its authority to alter or end the Fund at any time.

Rationale for the Fund
SVCE’s mission is bold: “Reduce dependence on fossil fuels by providing carbon-free, affordable, and reliable electricity and innovative programs for the SVCE community.” Meeting this mission will require long-term, sustained, and strategic investments. Without the Fund any funds that exceed reserve targets would automatically roll into reserve, possibly exceeding the maximum threshold or staff would need to bring new plans and priorities to the Board each year. Planning, designing, and preparing for such initiatives takes time.

Establishing the Fund will enable staff to prepare and design initiatives that better serve customers and meet the SVCE mission.

Priority Areas and Targets
By investing in the following three priority areas, SVCE will do its best to ensure that the energy transition is affordable and accessible for all customers in the short, medium, and long term.

1. Rate Stabilization and Bill Affordability – This funding would go towards ensuring rate discounts compared to PG&E, even in difficult years, and to provide other affordability measures such as emergency bill relief and/or increased rate discounts. Funds could be used for immediate and short-term bill relief measures during high-rate periods as well as long-term stable discounts. SVCE’s current discount target of 5% costs the agency approximately $30M/year.

2. Scalable Support for Pollution-Free Appliances – Gas appliances are responsible for approximately 40% of regional emissions in SVCE territory. In addition to climate impacts, these appliances emit health-harming nitrous oxide (NOx) and cost residents and businesses more about $3120 to operate over their lifetime than modern heat pumps. Ensuring all customers can upgrade to clean and efficient heat pumps is central to meeting the SVCE mission. The current program budget will fund about 700 heat pump water heaters (HPWHs) annually. However, in 2027 when the Bay Area Air District’s zero-NOx appliance rules go into effect, staff estimates there will be 10,000 HPWH installations per year in SVCE territory. The upfront cost of a HPWH is about $4500 more than replacing a gas water heater with another gas water heater.

Providing sufficient rebates and/or financing is important to lower this upfront cost for as many customers as possible. Staff estimates the need for support in SVCE territory is approximately $30M per year for HPWHs alone. Setting aside funding for this priority area would help SVCE support all customer segments to make necessary upgrades for these new rules and other forthcoming requirements.

3. Local and Emerging Power Supply Technology – Meeting long-term clean targets will require investing in new power supply technology that can provide 24/7 clean electricity all year and in local resources that bring added community value. This initiative would fund the above market costs for local and emerging power supply technologies. This includes load flexibility technology and services.

Next Steps
Staff will bring a recommendation for initial funding of the Fund for Board approval in December 2025.

Item 1i
Agenda Item: 1i Agenda Date: 3/12/2025

STRATEGIC PLAN
The proposal supports SVCE’s Strategic Focus Area One, “Expand Affordability Efforts,” SVCE’s Strategic Focus Area Two, “Expand Clean and Reliable Grid Actions,” and SVCE’s Strategic Focus Area Four “Prepare Region for Electrification at Scale.”

FISCAL IMPACT
No fiscal impact at this time. If the Board moves forward and approves this fund, staff would propose the annual set aside amount based on available funding above the reserve target each year as available. This funding would be separate from the program’s fund and would not impact other areas of SVCE operations.

ATTACHMENT

1. Resolution 2025-07 Establishment of the Clean Energy Community Fund Resolution Item 1i
1 RESOLUTION 2025-07

SILICON VALLEY CLEAN ENERGY AUTHORITY
RESOLUTION NO. 2025-07

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SILICON

VALLEY CLEAN ENERGY AUTHORITY TO ESTABLISH THE

CREATION OF THE SILICON VALLEY CLEAN ENERGY

COMMUNITY FUND
WHEREAS, the Silicon Valley Clean Energy Authority (“Authority”) was formed on March 31, 2016 pursuant to a Joint Powers Agreement to study, promote, develop, conduct, operate, and manage energy and energy-related climate change programs in Santa Clara County; and
WHEREAS, the cost of electricity has consistently increased with an overall increase of 80% over the past six years, making energy bills less affordable for our customers;
WHEREAS: while the total electricity rate has increased, the Authority is only responsible for the generation component of the rate, which represents roughly 33% of the total retail rate and has seen much less of a dramatic change; WHEREAS, the Authority adopted a Decarbonization Strategy and Roadmap on December 12, 2018, by Resolution No. 2018-20 that established regional goals for reducing greenhouse gas emissions and recognized the link between energy affordability and greenhouse gas reductions and the key role that innovation will play in the Authority reaching its emission reduction goals; and WHEREAS, the Bay Area Air District Board (The Air District) adopted amended rules on March 15, 2023, that will require Authority customers to transition to Zero NOx water heaters beginning in 2027; and
WHEREAS, transitioning a building to Zero NOx water heating typically requires electrical appliances and adds cost to the replacement that will create further financial challenges for Authority customers; and
WHEREAS, the Authority Board recognizes that decarbonization with electrical appliances using clean electricity both serves to meet the Authority’s mission to reduce fossil fuel use and increases the demand for clean electricity, expanding SVCE’s electricity service and improving economies of scale for customers; and WHEREAS, investing in local energy generation facilities, innovative energy management systems, and emerging technologies may enhance the reliability of SVCE’s electricity service, help meet SVCE procurement obligations, and improve Item 1i
Attachment 1
2 RESOLUTION 2025-07
energy resiliency and affordability for the Authority’s customers; and WHEREAS, in some fiscal years, the Authority’s revenues exceed the Authority’s expenses resulting in revenue that may exceed reserve targets; and WHEREAS, given that in some fiscal years, the Authority’s operational expenses exceed the Authority’s revenues resulting in a revenue deficit, the Authority Board has adopted a Reserve Policy to insulate the Authority’s customers from rate instability and ensure that the Authority can continue to serve its customers; and.

WHEREAS, having guidelines adopted by the Authority Board will ensure that revenues generated in excess of the Authority’s reserve targets are directed to the highest strategic uses that are designed to best serve the Authority’s customers and generate beneficial impacts; and
WHEREAS, adopting guidelines now will enable staff to plan and build the capacity to make community investments that will enhance energy affordability and meet the Authority’s mission; and.

NOW THEREFORE, the Board of Directors of the Silicon Valley Clean Energy Authority does hereby resolve that:

1. The foregoing recitals are true and correct.

2. When revenues exceed the Authority’s target contribution to the Authority’s reserves per the Authority’s adopted Reserve Policy, the following guidelines shall be used by staff to allocate funds while preparing the Authority’s annual budget and budget revisions:
• Priority 1: Discount Stabilization and Bill Affordability – Funding to ensure competitive discount is stable and to provide support that increases affordability for all customers; 40% of annual allocation • Priority 2: Scalable Support for Pollution-Free Appliance Installations – Funding to help ensure all customers have support when transitioning to zero emissions water and space conditioning equipment by setting aside funding for pollution-free appliances to help all customers meet forthcoming requirements; 40% of annual allocation
• Priority 3: Local and Emerging Power Supply Technology– Funding to invest in generation and power supply technologies and local projects that help meet our needs today and into the future; 20% of annual allocation

3. Staff will bring individual program design proposals to the Board for review and approval prior to any expenditures for each priority. The Board will approve any potential transfers each year as part of the budgeting process and retains the authority to make changes to the process at any time.

Item 1i
Attachment 1
3 RESOLUTION 2025-07
ADOPTED AND APPROVED this 12
th day of March 2025, by the following vote:

JURISDICTION NAME AYE NO ABSTAIN ABSENT
City of Campbell Director Scozzola
City of Cupertino Director Fruen
City of Gilroy Director Hilton
City of Los Altos Director Meadows
Town of Los Altos Hills Director Tyson
Town of Los Gatos Director Rennie
City of Milpitas Director Barbadillo
City of Monte Sereno Director Mekechuk
City of Morgan Hill Director Martinez Beltran
City of Mountain View Director Showalter
County of Santa Clara Director Lee
City of Saratoga Director Walia
City of Sunnyvale Director Klein

Chair
ATTEST:

Andrea Pizano, Board Secretary
Item 1i
Attachment 1

Staff Report – Item 1j
Item 1j: Approve Assignment of Auditor Contract to Kosmatka Donnelly & Co. LLP From: Monica Padilla, CEO
Prepared by: Michael Callahan, General Counsel
Date: 3/12/2025

RECOMMENDATION
Staff requests that the Silicon Valley Clean Energy (SVCE) Board of Directors (Board) approve the assignment of the auditor contract from Pisenti & Brinker to Kosmatka Donnelly & Co., LLP.

AUDIT COMMITTEE RECOMMENDATION
At the February 28, 2025 meeting of the Audit Committee, committee members received an update that SVCE’s current auditor, Pisenti & Brinker (P&B), announced they have merged with Kosmatka Donnelly & Co., LLP (KDP). Committee members inquired whether staff feels confident with the assignment and staff responded that there are no concerns as the current audit partner will remain the same for the remainder of the contract, and that the contract terms are not changing. Committee members also asked if staff has the right of termination and staff confirmed that contract does allow that, and that staff will continue to re-evaluate on an on-going basis.

BACKGROUND
Our current auditor, P&B, announced they have merged with Kosmatka Donnelly & Co., LLP (KDP). The Board is responsible for selecting the auditor and may determine whether to accept the assignment of the current contract to KDP.

ANALYSIS & DISCUSSION
The Audit Committee and Board had previously selected our current auditor P&B. On January 29, 2025, P&B informed Silicon Valley Clean Energy (SVCE) that it has merged with KDP and intends to continue to perform under the agreement. Section 12 of SVCE’s agreement with P&B defines a change of ownership as an assignment and SVCE must consent to assign the agreement.

Currently, the audit is effectively complete, and staff sees no value in refusing to accept the assignment at this time. Staff recommends that the contract continue to its current term of September 30, 2027 because the services and terms of the original contract will remain the same under the assignment.

STRATEGIC PLAN
N/A – SVCE is required by law to perform an audit.

ALTERNATIVE
An alternative would result in terminating the auditor agreement and likely initiating a new audit which would incur additional costs. Staff recommends against this alternative, given the audit is effectively complete.

FISCAL IMPACT
No fiscal impact from accepting the assignment of the P&B contract to KDP.

Item 1j
SILICON VALLEY \3/ CLEAN ENERGY

Staff Report – Item 1k
Item 1k: Receive Executive Committee Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Yvonne Martinez Beltran, Executive Committee Chair Date: 3/12/2025
The Executive Committee met February 28, 2025 and heard a request from staff to recommend support of a proposed Power Purchase Agreement Project Selection Policy, a request to recommend the SVCE Board of Directors approve amendments to SVCE’s Energy Risk Management Policy, and received an informational update on SVCE’s eHub.

Bena Chang, Director of Government and Legislative Affairs, presented a proposed Power Purchase Agreement (PPA) Project Selection Policy for the Committee’s consideration. The policy, which was first discussed with the Executive Committee in May of 2023 and a first draft presented in June of 2024, aims to maximize regulatory and market value for best fit and value while balancing risk mitigation and reliability goals. Staff engaged with various stakeholder groups in drafting the policy, reflected in the draft that was included in packet materials.

Public comment was received prior to the meeting with requested changes to the policy in redline, which the Committee reviewed and discussed during the meeting. Six members of the public commented on the item, including members representing Acterra and Working Partnerships USA. The Committee was in strong agreement that the goals within the policy were preferred. Following a very robust discussion, the Committee voted unanimously to support presenting the policy to the Board of Directors for approval after staff has addressed the local hire, targeted hire, and apprentice pieces of the policy to evaluate the definitions and proposed percentage goals. The evaluation would also include additional communication with external stakeholders. The Committee expressed gratitude to both staff and external stakeholders for their partnership in this effort.

Scott Wrigglesworth, Director of Risk Management and Analytics, presented a request for the Committee’s support for the Board of Directors to approve the proposed amendments to SVCE’s Energy Risk Management Policy. Staff reviewed the key revisions to the policy, with the key proposed change being the inclusion of the Power Charge Indifference Adjustment (PCIA) and Pacific Gas & Electric (PG&E) Generation Rate hedge when assessing the overall position. The Committee voted to unanimously support the revisions that were presented by staff, and including the item on the Consent Calendar for the March Board of Directors meeting.

Pamela Leonard, Deputy Director of Marketing and Communications, and Leslie Madarang, Senior Marketing Specialist, presented an informational item on SVCE’s award winning eHub: a one-stop website which helps community members find personalized rebates, incentives, and tips to power their homes, cars and appliance with clean energy.

Materials from this meeting can be found on SVCE’s website: SVCE Executive Committee Meeting, February 28, 2025
The next meeting of the Executive Committee will be March 28, 2025 at 10:00 a.m.; materials will be posted no later than 72 hours in advance of the meeting.

Item 1k
SILICON VALLEY \3/ CLEAN ENERGY

Staff Report – Item 1l
Item 1l: Receive Finance and Administration Committee Report To: Silicon Valley Clean Energy Board of Directors
Prepared by: Murali Srinivasan, Finance and Administration Committee Chair Date: 3/12/2025
The Finance and Administration Committee (Committee) met for its first meeting of the year on Wednesday, February 26, 2025 with all five members present; the Committee selected me as Chair and Director Pat Showalter as Vice Chair. Staff presented the following items: SVCE’s Planning and Budgeting Process and Proposed Financial Stress Test Scenarios, Mid-Year Update on the 2024-25 Fiscal Year Operating Budget, and a request for the Committee to recommend that the SVCE Board of Directors Approve Establishing a Rate Stabilization Fund under GASB 62.

Amrit Singh, SVCE’s CFO and Director of Administrative Services, provided an overview of SVCE’s planning and budgeting process and future committee meetings, and proposed 2025 financial stress test scenarios. The information presented included a budgeting and planning process timeline, an overview of Enterprise Risk Management (ERM) and Stress Test, key components of the ERM framework. review of the key financial risk drivers, and an outline of the 2025 Financial Stress Tests. The four stress tests outlined for 2025 included: 1) Forward energy prices collapse to the one percentile level; 2) Economic recession creates load loss; 3) Customer un-collectables increase; and 4) reduction in financial liquidity. The financial stress test scenario analysis results are expected to be presented to the Finance and Administration Committee in May and the full Board of Directors in June 2025.

CFO and Director of Administrative Services Singh presented a request for the Committee to recommend the SVCE Board of Directors adopt the mid-year 2024-2025 adjusted operating budget. Staff reviewed the budget timeline, highlighted changes since the adoption of the budget in December, reviewed five-year reserve projections, and provided a staffing update. Highlights from the report included:
• An increase of ~ $36.4 million from $96.8 million at the budget that was approved in December; • Operating expenses increased by ~$2.8 million, due to a request for five additional positions and the addition of professional services, marketing expenses and general and administrative costs; and • A negative contribution to reserves forecasted for the upcoming two fiscal years.

Due to the improved financial position identified since the December budget, staff proposed two options for the additional spending: 1) Increase the general customer discount in calendar year 2025 to 10%, or 2) direct $35 million to the Clean Community Fund. The Committee discussed these two options in great detail, ultimately agreeing that an increased discount to customers would be the best use of the additional funds for the year.

The Committee agreed that staff could propose how these funds would be distributed, either monthly in a rate discount, or as a one-time check. The Committee voted unanimously to recommend that the Board of Directors adopt the proposed mid-year 2024-2025 Adjusted Operating Budget with adjustments for additional funding for a 10% general customer discount. This item will be presented to the Board of Directors at the March Board meeting.

CFO and Director of Administrative Services Singh presented a request for the Committee to support recommending that the Board of Directors approve establishing a rate stabilization fund under the Government Accounting Standard Board (GASB) Standard 62, which is an accounting method available to government entities that would allow SVCE to recognize revenues set aside for certain costs in the same period as expenses Item 1l
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1l Agenda Date: 3/12/2025

occur under Generally Accepted Accounting Principles. The Committee voted unanimously to recommend the Board of Directors approve the request, and were in agreement that the item could be included on the Consent Calendar at the March Board of Directors meeting.

Materials from this meeting can be found at the following link: SVCE Finance and Administration Committee Meeting, 2/26/25.

The next Finance and Administration Committee meeting is anticipated for May 2025 and will be determined by Finance and Administration Committee member availability; materials will be posted 72 hours before the meeting.

Item 1l

Staff Report – Item 1m
Item 1m: Receive Audit Committee Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Bryan Mekechuk, Chair, Audit Committee
Date: 3/6/2025
On behalf of the Audit Committee, I am submitting this report to the Board of Directors.

SVCE’s year end is September 30 and Maher Accountancy prepared the financial statements for the year ended September 30, 2024. Kosmatka Donnelly & Co., LLP opined on the financial statements with their audit report dated January 31, 2025. Note that Pisenti & Brinker LLP merged into Kosmatka Donnelly & Co., LLP in January 2025.

The Audit Committee held its first meeting of 2025 on Friday, February 28, 2025. Returning members to the committee included Alternate Director Sergio Lopez (City of Campbell), Committee member Harjot Sangha (City of Gilroy) and me (City of Monte Sereno); Board Chair George Tyson (Town of Los Altos Hills) is the committee’s new member. Three Committee members participated in person, and one was remote.

The Audit Committee selected me to continue serving as Chair and Alternate Director Lopez to serve as Vice Chair for 2025.

As the 2024 Chair of the Audit Committee, on January 9, 2025 I met with CFO Amrit Singh, Karen Chang, Manager of Finance and Mike Maher (Maher Accountancy) and walked through the financial statements in detail during that meeting.

After the audit report was issued, I met with Amrit Singh and Mike Maher on February 12, 2025 and walked through the audited financial statements again. At that time, without the auditors present, I asked about issues related to the accounting, subsequent events and the audit itself.

On February 14, 2025, I met over Zoom with Kellin Gilbert, the partner with Kosmatka Donnelly & Co., LLP that is responsible for auditing SVCE, regarding the financial accounting and disclosure, and the audit itself without management present.

During the Audit Committee meeting on February 28, 2025, Mr. Gilbert presented the results of the Fiscal Year 2023-24 financial audit to the group and reported the audit was completed on January 31, 2025 when Kosmatka Donnelly & Co. issued an unmodified audit opinion (a “clean audit opinion”). Mr. Gilbert noted Kosmatka Donnelly & Co. did not find any significant deficiencies in internal controls, and did not have any disagreements with financial accounting or disclosure. The Committee voted unanimously to receive the financial audit report and recommend the SVCE Board of Directors accept the audit findings. These findings will be presented to the Board of Directors at the March Board meeting.

Mr. Gilbert also announced Pisenti & Brinker LLP joined practices with Kosmatka Donnelly & Co., LLP as of January 2025, with a new unified name anticipated in the summer of 2025. No changes to staffing, costs or timing of the services provided to SVCE are anticipated. Due to this change, staff presented an item to the Audit Committee to request approval of the assignment of the auditor contract to Kosmatka Donnely & Co. LLP; the Audit Committee voted unanimously in favor.

Item 1m
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1m Agenda Date: 3/6/2025

Amrit Singh, CFO and Director of Administrative Services, gave an overview of SVCE’s primary in-house finance functions and accounting services provided by Maher Accountancy, reviewed the purpose of the Committee and the audits covered, and the timing of future meetings.

The last regular calendar item discussed at the Audit Committee meeting was an informational item on establishing a rate stabilization fund under the Government Accounting Standard Board (GASB) Standard 62.

CFO Singh explained that GASB 62 accounting will enable SVCE to defer revenues to future periods and recognize those revenues in periods when expenditures occur for projects that the Board of Directors has directed those revenues toward. CFO Singh discussed this item with the Finance and Administration Committee earlier in the week.

The Audit Committee held a Closed Session to discuss a threat to public services or facilities; there was no reportable action taken.

Materials from the Audit Committee meeting can be found at the following link: SVCE Audit Committee Meeting, 2/28/25.

The next meeting of the Audit Committee is anticipated to be in September 2025, prior to SVCE’s fiscal year end of September 30, and the exact date will be determined by Audit Committee member availability; materials will be posted no later than 72 hours in advance of the meeting.

Item 1m

Staff Report – Item 1n
Item 1n: Receive 2025 Legislative Response to Industry Transition Ad Hoc Committee Report To: Silicon Valley Clean Energy Board of Directors
Prepared by: Andrea Pizano, Sr. Executive Assistant and Board Clerk Date: 3/12/2025
There is no report for the 2025 Legislative Response to Industry Transition Ad Hoc Committee as the committee has not yet met.

The committee is expected to have its first meeting in March or April, based on member availability.

Item 1n
SILICON VALLEY \3/ CLEAN ENERGY

Staff Report – Item 1o
Item 1o: Receive California Community Power Report
To: Silicon Valley Clean Energy Board of Directors
From: Monica Padilla, CEO
Date: 3/12/2025
Per direction from the SVCE Board on December 9, 2020 for the CEO to provide a report of the ongoing activities of California Community Power (CC Power) after each of its meetings.

There is no report this month as the regularly scheduled meeting on February 19, 2025 was adjourned.

The next meeting of the board will be March 19, 2025 at 1:00 p.m.; meeting materials can be found on the CC Power website: https://cacommunitypower.org/meetings/
Item 1o
SILICON VALLEY \3/ CLEAN ENERGY

Staff Report – Item 2
Item 2: CEO Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Monica Padilla, CEO
Date: 3/12/2025
REPORT
Staff Updates
Phillip Wang joined Silicon Valley Clean Energy (SVCE) March 4, 2025 as Information Technology (IT) Support Specialist. Phillip has over nine years of IT experience supporting over 500 plus employees. He has a strong customer service background and looks forward to providing the high-quality service SVCE staff is accustomed to.

Personnel Officer Update
Recruitment efforts continue for an Energy Services Specialist/Senior Energy Specialist and Senior Financial Operations Analyst. Job descriptions and applications can be found on SVCE’s website: Current Job Openings Clean Energy Update
Staff continues its procurement efforts to source clean energy for calendar year 2025 and beyond. Recently SVCE was awarded in a solicitation from East Bay Municipal Utility District, pending Board-approval to proceed (see item 1g of current Board packet). The award will give the attribute output of two hydro facilities to SVCE over the next five years with an expected range of 38,000 to 200,000 megawatt hours per year of Portfolio Category Content One (PCC1) Renewable Energy Credits (RECs). This expected results from this transaction, once approved by the board, will bring the 2025 Clean percentage to just over 99% and the 2026 Clean Percentage to 103%, without this transaction SVCE will be at 97% for 2025 and 100% for 2026.

Please see Attachment 1 for a summary of SVCE’s clean energy efforts including progress on meeting mandates, on-boarding of new power purchase agreements and a summary of utility-scale storage contracts.

Customer Success Department Updates
A list of recent media mentions and prior or upcoming community engagement events are listed below.

Press and Media
• Media Mentions
o Cupertino city buildings get greener with solar, San Jose Spotlight, 2-11-25 o Santa Clara County Balances Progress and Sustainability, InformationWeek, 2-13-25 Recent & Upcoming Events
Staff are gearing up for another busy spring with regional and industry conferences, and many Earth Day events. Board members are welcome to support SVCE at its outreach booth in your community. If interested, please reach out to the board clerk for coordination.

March 7 – 2025 State of the Valley
Conference
- 8:30 a.m. – 12:30 p.m.

March 17 – City of Campbell Business
Incentives Lunch and Learn
- 12 – 1 p.m.

Item 2
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 2 Agenda Date: 3/12/2025

- Sponsorship and attendance
- Diaz Compean Student Union, 2nd Floor
Ballroom, 211 South 9th Street, San Jose,
CA 95112
- Presentation and attendance
- Campbell Community Center 1 W.

Campbell Ave. (Roosevelt Redwood Room)
March 22 – Sunshine Gardens Earth Hour
- 10 a.m. – 2 p.m.
- Attendance
- 132-150 Dana St, Mountain View, CA
94041
March 29 – Catalyze Silicon Valley
Electrification Event
- 4 – 5:30 p.m.
- Sponsorship, tabling, and attendance
- Milpitas Library, 160 N Main St, Milpitas,
CA 95035
April 5 – Cupertino Earth Day
- 11 a.m. – 3 p.m.
- Dream Home and tabling
- Cupertino Library Green, 10800 Torre Ave,
Cupertino, CA 95014
April 5 – Sunnyvale Earth Day
- 11 a.m. – 2 p.m.
- Tabling
- Sunnyvale City Hall, 456 W Olive Ave,
Sunnyvale, CA 94086
April 5 – Santa Clara County Office of
Education Environmental Literacy Summit
- 8 a.m. – 2 p.m.
- Sponsorship and tabling
- SCCOE, 1290 Ridder Park Dr, San Jose, CA
95131
April 12 – Milpitas Earth Day
- 10 a.m. – 12 p.m.
- Dream Home and tabling
- Rengstorff Park, 201 S Rengstorff Ave,
Mountain View, CA 94040
April 19 – Mountain View Earth Day
- 10 a.m. – 2 p.m.
- Dream Home and tabling
- Rengstorff Park, 201 S Rengstorff Ave,
Mountain View, CA 94040
April 25 — Saratoga Elementary Earth Day
- Time TBA
- Tabling
- 14592 Oak St, Saratoga, CA 95070
The latest Quarterly Report on Decarbonization Strategy and Programs can be viewed in Attachment 3.

Regulatory & Legislative Update
February 21, 2025, was the bill introduction deadline for the state legislature. Staff is reviewing and analyzing several bills related to energy, climate change, and affordability. An early priority bill is SB 504 (Becker, Stern) on regional energy markets. The bill would allow the formation of a new Regional Organization to enable California to participate in energy markets with other western states. These west-wide markets will help reduce costs while improving reliability and making it easier to achieve the state's clean energy goals. SVCE looks forward to working with Senator Becker to secure the bill's passage.

SVCE Office Space Update
Great news to share on our efforts to purchase a building: all documents were signed and we received the keys to our new office at 298 South Sunnyvale Avenue. With the purchase of the building behind us, we have shifted our efforts to selecting an external project manager to help with the interior design and buildout of the space. The building is 28,000 sq ft, which will be more than enough space to accommodate staff, our own boardroom, on-site storage and still have space to create a place which reflects the needs of our community. Staff will seek input from the Board on their collective vision for the space.

SVCE issued an RFP to select a consultant to serve as an in-house project manager and expert for the development of the building. Proposals are due March 26th.

We look forward to developing a great space not only for staff, but for our community to enjoy as well.

Item 2
Agenda Item: 2 Agenda Date: 3/12/2025

Look Ahead Update
Staff continues to plan for Board and committee meetings through the end of the year. Below is a preview of what’s ahead for the Board from April through June 2025:

ATTACHMENTS

1. Clean Power Update, March 2025

2. Regulatory and Legislative Update, March 2025

3. December 2024 Decarbonization Strategy and Programs Quarterly Report Item 2
CD Agenda Look Ahead: April - June 2025
April
9th: BOD Meeting
• Approve Power Purchase Agreement
Project Selection Policy - Action
• Regionalization (Part 1) - Discussion
May
14th: BOD Meeting
• Regionalization (Part 2) - Discussion
• Marketing and Outreach Deep Dive -
Informational
• PPA Approvals
June
11th: BOD Meeting
• Stress Test Analyses -Discussion
• FY 25-26 Budget Framework -Discussion
• Intro to 2026 Strategic Plan and Strategic
Focus Areas - Discussion
• IRP Preview -Discussion
• Authorize Energy Prepay Transaction #4 -
Action
*Please note the items on this schedule may change
depending on priorities
Agenda Item: 2 Agenda Date: 3/12/2025

Exhibit 1 - CEO Agreements Executed Under Delegated Authority The following agreements have been executed by the CEO, consistent with the authority delegated by the Board:

Type Consultant Description Compensation Term Authority Amendment Granicus Communications
Cloud and
Communications
Cloud Advanced
Package and related
services
NTE - $26,304.09 Extends term
to 6/30/2025
CEO
Spending
Authority
Agreement Nixon Peabody Intellectual Property
Legal Services
NTE - $15,000 1/28/25 –
12/31/25
CEO
Spending
Authority
Agreement Environmental
Innovations
Commercial
Customer Outreach
Services
NTE - $25,000 1/30/2025–
11/30/2025
CEO
Spending
Authority
Agreement Colantuono
Highsmith Whatley,
PC
Special Counsel for
Proposition 26 and
218 Matters
NTE - $20,000 2/3/25 – no
term end
date
CEO
Spending
Authority
Agreement Cost Sharing
Agreement with
AVA Community
Energy Authority
S&P Global Market
Intelligence LLC
Services
NTE- $36,000 2/3/25 – no
term end
date
CEO
Spending
Authority
Agreement Cost Sharing
Agreement with CC
Power
RA Report NTE - $7,333.33 2/3/25 – will
terminate
upon the later
of termination
of the
Contract with
Gridwell
Consulting
and five years
CEO
Spending
Authority
Amendment Optony, Inc. Fleet Electrification
Technical Assistance
NTE - $512,000 1/3/2023-
1/2/2027
Board
Approved
(2/12/25)
Agreement G &E Real Estate
Management
Services, INC
Property
Management
Services
NTE- $60,000 2/25/25 –
2/24/26
CEO
Spending
Authority
Item 2

Exhibit 2 - CEO Power Supply Agreements Executed Under Delegated Authority Counterparty Name
Execution/Effective
Date
Transaction Type Product Start Date End Date Notional Value Shell 2/5/2025 Sale Resource Adequacy 4/1/2025 4/30/2025 $24,000.00 High Desert Power Project, LLC 2/20/2025 Sale Resource Adequacy 4/1/2025 4/30/2025 $408,000.00 TransAlta 2/20/2025 Purchase Hedge Energy 7/1/2025 7/31/2025 $2,062,740.00 TransAlta 2/20/2025 Purchase Hedge Energy 9/1/2025 9/30/2025 $2,447,172.00 TransAlta 2/20/2025 Purchase Hedge Energy 10/1/2025 10/31/2025 $2,081,340.00 Morgan Stanley Capital Group 2/20/2025 Purchase Hedge Energy 8/1/2025 8/31/2025 $2,844,728.64 Morgan Stanley Capital Group 2/20/2025 Purchase Hedge Energy 9/1/2025 9/30/2025 $1,004,940.00 Morgan Stanley Capital Group 2/20/2025 Purchase Hedge Energy 10/1/2025 10/31/2025 $2,439,739.68 Item 2
0 SILICON VALLEY

CLEAN ENERGY
• Subtitle
New SV Clean Energy
PowerPoint Template
CEO Report
Clean Power Update
SVCE Board Meeting
March 12, 2025
Item 2
Attachment 1
Clean Power Update, March 2025
Clean Long-term Power Agreements
• $3.8B+ in commitments
• 22 PPAs signed
• 19 new build projects
• 1,045 MW of Renewable Power
• 2,045 MWh of Battery Storage
9 Projects now delivering to SVCE:
• COSO geothermal - January 2022
• Slate Solar + Storage – January 2022
• Casa Diablo geothermal – July 2022
• Mountain View wind – July 2022
• Rabbitbrush Solar + Storage – October 2022
• Terra-Gen Wind – January 2023
• Yellow Pine Solar + Storage – July 2023
• Victory Pass Solar + Storage – March 2024
• Baldy Mesa Storage (RA-only) – June 2024
Item 2
Attachment 1
Clean Power Update, March 2025

GEOTHERMAL

BATTERY STORAGE

SOLAR STORAGE

SACRAMENTO

SOLAR POWER

WIND GENERATION

LONG DURATION STORAGE
•

SAN JOSE NEVADA
•
RAk FR'r.F F D % KINGMAN
%
-OS ANGELES

ARIZONA
SANTA

BARBARA
LAS
VEGAS
Long-Term Contracts: Online
Victory Pass Solar + Storage
Casa Diablo Geothermal
Seller Project Name Technology Generation MW Storage MW Storage MWh Term
(years)
SVCE Board
Approval
1 MN8 Slate Solar + Storage 93 46.5 186 17 Oct-18
2 Ormat Casa Diablo Geothermal 7 10 Feb-20
3 Atlantica Coso Geothermal 43.8 15 Mar-20
4 Leeward Rabbitbrush Solar + Storage 40 8 20 15 Apr-20 5 NextEra Yellow Pine Solar + Storage 50 26 104 20 May-20 6 AES Mountain View Wind 33.3 20 Apr-21
7 Clearway Victory Pass Solar + Storage 100 25 100 15 May-21 8 Terra-Gen Cameron Crest Wind 77.7 15 May-21
9 AES Baldy Mesa (RA-only) Storage 0 75 300 10 Sep-22
Item 2
Attachment 1
Clean Power Update, March 2025
Long-Term Contracts: In Development
SunZia Wind &
Transmission
Seller Project Name Technology Generation MW Storage MW Storage MWh Term (years) SVCE Board
Approval Status
1 Avantus Aratina Solar + Storage 80 50 200 20 Jun-20 Pre-construction 2 174 Power Global Atlas Solar 50 10 Jan-21 Pre-construction 3 SB Energy Angela Solar + Storage 20 10 40 15 Mar-21 Pre-construction 4 Origis San Luis West Solar + Storage 62.5 15.625 62.5 15 Apr-21 Pre-construction 5 Rev Renewables Tumbleed Long Duration Storage 15.9375 127.5 15 Feb-22 Construction 6 Onward Goal Line Long Duration Storage 14.2 113.6 15 Mar-22 Pre-construction 7 Ormat Geothermal Portfolio Geothermal 16.75 20 Jun-22 Pre-construction 8 OME Fish Lake Geothermal 1.82 20 Jun-22 Pre-construction 9 Middle River Power Hanford Thermal + BESS 99.4 131.4 131.4 12 Apr-23 Construction 10 NextEra Grace Solar 120 15 Aug-23 Pre-construction
11 NextEra Yellow Pine III Storage 0 115 460 15 Aug-23 Pre-construction 12 Pattern SunZia Wind 100 15 Nov-23 Construction
13 VCI Energy Glossy Garlic Solar + Storage 50 50 200 10 Oct-24 Pre-construction Item 2
Attachment 1
Clean Power Update, March 2025
SVCE’s Contracted Batteries
Overview of SVCE’s battery storage portfolio:

Victory Pass Solar + Storage
• 13 storage sites under contract
• 5 in operation (180 MW)
• 8 in development (402 MW)
• All are outdoor and containerized
• All permitted and compliant to NFPA 855
/ UL 9540 standards
• 11 Lithium-ion Phosphate (LFP)
• 2 Lithium Nickel Manganese Cobalt
Oxide (NMC)
• SVCE has further discussed additional safety
protocols with developers for NMC sites
Item 2
Attachment 1
Clean Power Update, March 2025
Clean Energy Resources Online Progress
as of February 28, 2025
• Hanford BESS on Peaker: Construction mode
• Goal Line Long Duration Storage: Pre-construction
• San Luis West Solar + Storage: Pre-construction - delayed 2025 – H1
• Atlas Solar: Pre-construction – delayed 2025 – H2 • Yellow Pine III Storage: Pre-construction • Tumbleweed Long Duration Storage: Construction mode
• Fish Lake Geothermal: Pre-construction
• Aratina Solar + Storage: Pre-construction
2026 – H1
• Ormat Geothermal Portfolio: Pre-construction
• SunZia Wind: Construction mode
• Angela Solar + Storage: Pre-construction – delayed
• Grace Solar: Pre-construction
• Glossy Garlic: Pre-construction
2026 – H2+
Item 2
Attachment 1
Clean Power Update, March 2025
SVCE is Making Significant Progress Toward
Meeting Long-Term RPS Requirements
9%
7%
1%
3%
3%
5%
4%
8%
5% 45%
31%
Coso Slate Casa Diablo Mountain View Rabbitbrush Cameron Crest Yellow Pine Victory Pass Other Total Supply SB350 Target % of Retail Sales
CY 2025 Expected Long-Term RPS
Item 2
Attachment 1
Clean Power Update, March 2025
Projected Clean Position for 2025/2026
Item 2
Attachment 1
Clean Power Update, March 2025
RPS
Volumes
IMWhsI

2.5M

2.0M

1.5M

1.0M

0.5M
O.OM
2025 2026
Compliance Year
•
RPS Volumes *CA RPS Standard % SSVCE RPS % SSVCE Clean % 100%
80%
60%
40%
20%
'3%
Percent
of
Retail
Load
THANK YOU!
9 Item 2
Attachment 1
Clean Power Update, March 2025
• Subtitle
New SV Clean Energy
PowerPoint Template
Item 2
Attachment 2
SVCE Leg and Reg Update, March 2025
March 12, 2025

SILICON VALLEY

CLEAN ENERGY
SVCE Legislative and
Regulatory Update
Item 2
Attachment 2
SVCE Leg and Reg Update, March 2025
CD Policy Updates
Regulatory Update:

1. Application of PG&E for Approval of Electric
Rule No. 30 for Transmission-Level Retail
Electric Service
Legislative Update:

1. State Legislation

2. 2025 Legislative Calendar
2 Item 2
Attachment 2
SVCE Leg and Reg Update, March 2025
Regulatory
Update
Item 2
Attachment 2
SVCE Leg and Reg Update, March 2025
Key Regulatory Activities
Activity Purpose Status
Application of Pacific Gas
and Electric Company for
Approval of Electric Rule No.
30 for Transmission-Level
Retail Electric Service
A.24-11-007
To establish new rules for
interconnection of some large
customer loads.

On November 21, 2024 PG&E filed application A.24-11-007. This application would streamline rules for customers to interconnect large loads, such as data centers. Under the proposal, a customer could pay up front costs via a loan to PG&E and could contribute land, equipment or in-kind services to the project. To protect other customers, PG&E would only repay this loan and make the costs part of general T&D rates once the majority of the expected load is online. PG&E is seeking interim implementation of the application while the CPUC reviews the proposal.

A joint group of CCAs including SVCE is participating in the case to ensure, among other things, the proposal does not negatively impact competitiveness, energization of other customers or result in any cost shifts between customers.
4 Item 2
Attachment 2
SVCE Leg and Reg Update, March 2025
Legislative Update
5 •
•
Item 2
Attachment 2
SVCE Leg and Reg Update, March 2025
O 2025 CaICCA Lobby Day
Director Martinez Beltran, the 2024
Legislative Ad Hoc Committee
Chair, attended along with CCAs
from across California. Collectively,
CaICCA members met with more
than 50 legislative offices.

Major themes from legislators
included concern about energy
affordability and impact of Federal
Administration changes.
6 Item 2
Attachment 2
SVCE Leg and Reg Update, March 2025
0 Bill Update
SVCE is reading and analyzing several bills this session. Preliminary bills of interest include:

Bill Number Summary
SB 332 (Wahab) Caps IOU rate increases to the Consumer Price Index, restricts disconnections, ties IOU executive compensation to safety metrics, and increases shareholder contributions to the Wildfire Fund, among other measures.

SB 57 (Padilla) Would require CPUC to establish a rate for data centers with the goal of ratepayer protections.

SB 239 (Arreguin) Allows advisory bodies of Boards to teleconference with a 2/3 vote of the Board every 12 months.

AB 303 (Addis) Changes permitting approval from CEC to local governments for siting of battery storage facilities. Prohibits facilities from being placed within 3,200 feet of a sensitive receptor.
7 Item 2
Attachment 2
SVCE Leg and Reg Update, March 2025
0 SVCE Bill Positions
SVCE has taken the following positions on legislation
Bill Number Summary SVCE Position
SB 540
(Becker/Stern)
Allows the formation of a new Regional
Organization to enable California to
participate in energy markets with other
western states.

Support
AB 306
(Schultz/Rivas)
Would prohibit local governments from
adopting new reach codes as of January 1,
2025, unless the reach codes were related to
emergency health and safety or home
hardening.

Concerns and offered amendment
suggestions to clarify that local governments
can adopt the 2025 state building code and
to narrow bill to new construction only.
8 •
•
•
•
•
•
•
•
•
•
Item 2
Attachment 2
SVCE Leg and Reg Update, March 2025
1 Key 2025 State Legislative Milestones
January 6—Legislature Reconvenes
February 21—Last day for bills to bo introduced
May 2 - Last day for policy committees to hear fiscal bills May 23 - Last day for fiscal committees to hear bills introduced in that house June 6 - Last day for each house to pass bills introduced in that house June 15 -Budget bill must pass by midnight
July 18 -Last day for policy committees to vote on bills August 29 -Last day for fiscal committees to vote on bills September 12 - Last day for each house to pass bills
October 12 - Last day for Governor to sign bills
9 288
contractors
complete
Contractor
Training

DECARBONIZATION PROGRAMS
& MARKETING HIGHLIGHTS
December 2024 Milestones
Quarterly Report
511
L1/L2 ports
installed through
EV Charging
programs
1,700
completed
electrification
projects through
Home Rebates
Item 2
Attachment 3
Decarb Programs Quarterly Report
SILICON VALLEY <3/ CLEAN ENERGY
Name Budget Potential Impact
Cumulative Impact To-Date
Last Quarter (Update) Next Quarter (Target)
Multifamily
Retrofits (TE and
BE)
$12.5M
300 to 1,000 MF AH
units electrified
2 multifamily sites enrolled
Completed 2 site
assessments. Issued RFP for
General Contractor.

Reissue Contractor RFP to
select contractor with
better pricing. Start
construction at 2 sites.

EV Charging
Incentives
$11.4M
80 MUDs with EVI
(720 ports)
4,000 L1/L2
chargers at
affordable housing
21 MUD active
reservations (166 ports)
16 sites completed
(166 L1/L2)
Processed 3 new MUD claims
for 17 additional EV ports.

Raised per site maximum to
$100k (from $50k).

Continue to expand
enrollment and ways to
help connect customers to
vendors.

Full-Service
Home Upgrades
$11.4M
600 single-family
homes electrified
Soft launched program in
November 2024
Soft launched program in
November 2024.

Complete installations for
10 projects.

Home Rebates $10.05M
2,800 homes
fully/partially
electrified
1,700 homes fully/partially
electrified
Cumulative results: 654
HPWH, 1073 HVAC, 70
Induction, 532 prewiring.

Applications launched in
Salesforce.

Hit 2,000 claims. Update
requirements for
appliances. Launch rebate
adders for Milpitas and
Mountain View.

Electrification
Rate Discount
$9.5M
5,000 customers
enrolled
4,200 enrolled
Significant enrollment
growth. NEM analysis
completed. Synthesized
learnings to-date.

Finalize proposals for E-ELEC design revision.

Create timeline for board
presentation.

Member Agency
Grants
$6.5M
13- 18 new member
agency projects
focused on
community
engagement and
capital decarb project
Received 1 noncompetitive
grant application
Launched the
noncompetitive and
competitive grants.

Hold pre-application
webinar for competitive
grant solicitation.

Community
Energy
Resilience
$5.15M
13 agencies complete
projects
5 completed agency
projects
Cupertino received two off-grid EV chargers and trailer to rotate chargers to
different community
locations.

Monitor and reimburse
agencies as projects are
completed.

C&I
Decarbonization
Program
$5M
8,000 metric tons of
CO2e removed
through carbon saving
measures
5 customers enrolled in the
program, 7 “warm” leads
reviewing Agreement
3 onsite energy audits
completed, reports in
development.

Continue on-site energy
audits. First cohort-wide
workshop scheduled for
March 14.

Decarbonization
Demonstration
Grants
$3.2M
8 local public facing
electric projects
1 project complete
Worked with several
agencies to execute grant
extensions to accommodate
project delays.

Support grantee
community engagement
efforts and grant
extensions.

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

Quarterly Report
View our active rebates here. 1
DEC 24
Item 2
Attachment 3
Decarb Programs Quarterly Report

MSSILICON VALLEY

CLEAN ENERGY
Name Budget Potential Impact Cumulative Impact To-Date Last Quarter (Update) Next Quarter (Target) Permit
Modernization
$3.2M
13 member agencies
improve
electrification
permitting
Permitting agencies are
briefed and have action
plans in place
Action plans were finalized
in 12 of 13 jurisdictions.

Resources actively deployed
in at least five agencies.

Emergency
Water Heater
Replacement
$2.6M
700 emergency
water heaters
upgraded
Launched program in
November 2024
Launched program in
November 2024.

Complete installations for 10
projects.

CALeVIP 1.0 $2.5M
85 DCFC installed
1,100 L2 installed
10 DCFC installed
319 L2 installed
Continued processing
incentive payments as
installations were
completed.

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

Customer
Resource Center
(eHub)
$2.1M

1.5M email opens
350K unique web
visits
1M email opens (54%
open rate)
393K web visits
Sent emails promoting:

Solar + Battery Assistant
New eHub in PCL
Launched new eHub Nov 18.

Launch EV Finder. Develop
Appliance Marketplace
rebate promotions. Prepare
Go Electric Campaign.

Fast Charger
Incentives
$1.875M
10 DCFC installations
near MUD hotspots
10 of 10 ports are live now (4
sites)
All sites now energized.

Explored ways to support
one site through ownership
transition.

Complete ownership
transition for one site.

Existing Building
Policy
Experiment
$1.9M
Spur action on
building
electrification and
reduce building gas
combustion
Concepts have been
introduced and are no longer
“foreign” and momentum is
building for incorporation
into 2025 Reach Code efffort
Action plans were finalized
in 12 of 13 jurisdictions.

Convene initial regional
workshop for staff on Reach
Code options and
developments.

Contractor
Training
$1.7M
300 contractors
trained
500 graduate
incentives
288 contractors
completed training
187 approved graduate
incentive claims
Significant growth in
registrations and
incentive claims.

Achieve 300 completed
contractor trainings.

EV Rebates $1.5M
600 EV purchase
incentives for income
qualified customers
4 claims paid
Launched program on Oct
19, 2024. Held 2 community
events with CBO partners.

Increase marketing and
education efforts. Hold 2
additional community
education events. Continue
to grow dealership network.

Programs
Marketing Fund
$1M
4,500 new program
participants
Marketing provided for 10
programs. 1,880 program
participants added.

Google Analytics setup
phase 1 completed. See
individual programs for more
detailed updates.

Large Go Electric umbrella
campaign planning with
School of Thought (vendor).

Complete allocation of
marketing fund for 2025.

GridShift EV
Charging and
Rebates
$973K
Bill/emissions savings
and load shifting
capacity
1,601 EVs enrolled (incl.

ChargeWise pilot
participants)
58 charger rebates
Launched ChargeWise pilot
and recruited pilot
participants.

Monitor ChargeWise results
and customer savings. Adjust
dynamic rate adders as
needed.

PROGRAMS PORTFOLIO
Active Programs
View our active rebates here.
2 DEC 24
Item 2
Attachment 3
Decarb Programs Quarterly Report

MSSILICON VALLEY

CLEAN ENERGY
Name Budget Potential Impact
Cumulative Impact
To-Date
Last Quarter (Update) Next Quarter (Target)
Go Electric
Advisor
$892K
3,600 customers use
hotline, 1,200 use tech
assistance, 350 use
electrification plans
714 customers use
service
Record participation in Q4.

Contacts largely driven by
FutureFit Homes participants
with questions on available
incentives and upgrade process.

Increase marketing
campaigns and aim for 400
new contacts.

Business
Rebates
$750K 20-30 SMBs electrified
7 SMBs
fully/partially
electrified
Presented at Cupertino Business
Incentives workshop. Drafted
Consultant Agreement for site
assessment pilot. Processed first
two rebate claims in Salesforce.

Determine project rebate
caps. Award 2 to 4 new
rebates. Present at another
chamber event. Launch site
assessment pilot program.

EV Charging
Planning
$725K
60 assessments,
36 projects done,
250 ports installed
73 applications
(49 completed)
Prepared 4 new site solutions.

Enrolled 1 new property
Expand enrollment through
email and other marketing
channels. Determine and
execute wind-down
strategy.

EM&V $640K
Evaluate 80% of SVCE
programs within 2 years of
launch
11 reports completed
Completed TO6 (EVI) and TO15
(Home Rebate) reports. Set up
new TO for Member Agency
Grants.

Set up TOs for 5 additional
programs.

SV Building
Electrification
Stronger
Together
$600K
Educate stakeholders
about building
electrification
35 new stakeholders
engaged to date
Completed RFP process for
contractor bench. Completed
design of CBO programs bench.

Hold the first contractor
bench focus group. Release
community partnership
grant and conduct
information session.

Decarbonization
Engagement
Grants
$442K
5 communities engage
residents on climate action
topics
1 project complete
Worked with several agencies to
execute extensions to
accommodate project delays.

Monitor and reimburse
agencies as projects move
to completion.

Natural Gas
Phaseout
Feasibility
$300K
Complete 2 whitepapers
to inform local, regional,
and statewide policies
1 whitepaper
(funding
requirements)
completed
Assessed the most challenging
home electrification
configurations and developed
solutions for each.

Finalize technical solutions
analysis report.

Fleet
Electrification
$300K
Complete fleet
electrification and charger
installation planning for 10
fleets
10 fleets in progress
Three (3) agencies have
completed the planning program.

Remaining 7 agencies are
actively proceeding.

Finalize 2 additional agency
engineered plans and
recruit new fleets into the
program.

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

Continued delivery and
adjustments to dispatch as
needed.

PROGRAMS PORTFOLIO
Active Programs
View our active rebates here. 3
DEC 24
Item 2
Attachment 3
Decarb Programs Quarterly Report

MSSILICON VALLEY

CLEAN ENERGY
Name Budget Potential Impact Last Quarter (Update) Next Quarter (Target) Tariffed On Bill
(TOB) Financing
$5.2M
200 customers finance
electrification
Ongoing pilot design with focus on
billing implementation.

Launch OBF pilot and begin
enrollment.

Community Grants $3.5M
Fund resiliency, engagement, and
decarbonization projects for
schools, community groups, and
non-profits
Divided the larger $10M allocation
into three different program areas.

Explore adding fellow to assist with
program design.

Neighborhood
Electrification
$1.5M
Test model to electrify buildings
within a community. Electrify 15
homes and set plans for 24 homes
Continued pilot program design. Release RFP for vendor.

Workforce
Development
Partnerships
$1.3M
Increase capacity to coordinate
and train skilled workforce for
residential electrification jobs
Continued program design and met
with stakeholders.

Complete program design.

Demand Flexibility
and Virtual Power
Plant programs
$1M
Connectivity to flexible, customer-sided loads to enable bill savings, avoided generation and capacity
costs, reliability and carbon
benefits
Completed competitive solicitation
for demand flexibility services.

Received 16 proposals, reviewed 8 in
depth. Completed 2 rounds of
interviews with 4 firms.

Select firm(s). Develop scopes of work
and program design. Execute
contracts with selected firm(s) for
capacity, flexibility and associated
services.

Innovation Onramp
(EV Charging Pilot)
$1M
Demonstrate innovative and
scalable solutions to reduce the
cost of EV charging for MF
residents.

Received 11 proposals in this grant
cycle. Applications are currently
under review.

Launch 3-4 projects with the selected
vendors.

E-Bike Rebates $500K 450 e-bikes
Program paused due to staffing
constraints.

Determine new timeline and next
steps for program launch.

Innovation Onramp
(Rock Rabbit)
$190K
Pilot an innovative web app to
assist homeowners and contractors
to apply for multiple incentives
simultaneously.

Continued integration of Rock Rabbit
app with SVCE’s internal data tools
and systems.

Soft Launch to small group of
residential customers and contractors
planned for February 2025. Full launch
to all residential customers in late
March/April 2025.

PROGRAMS PORTFOLIO
Planning
View our active rebates here. 4
DEC 24
Item 2
Attachment 3
Decarb Programs Quarterly Report

MSSILICON VALLEY

CLEAN ENERGY
10/2
12/2
2/23
4/23
6/23
8/23
10/23
12/23
2/24
4/24
6/24
8/24
10/24
12/24
$0.0
$1,000.0
$2,000.0
$3,000.0
$4,000.0
$5,000.0
Rebates claimed:

Current Level of $ Funds Reserved (in 000s)
0 10 20 30 40 50 60
Commercial business
Government
Multifamily
School/Nonprofit
Incentive program for L1 and L2 EV charging
infrastructure at multifamily properties
0 200 400 600 800 1000 1200
HPWH

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

Funds Claimed:

Ports Installed:

Home Rebates
Provide incentives to residents for heat pump
water heaters (HPWH), heat pump HVAC systems,
service panel upgrades, induction cooktops, and
pre-wiring to replace gas appliances.

EV Charging Planning
Assistance in site assessment, preliminary
design, and applying to rebates for charging at
multifamily housing and small and medium
workplace properties.

EV Charging Incentives
Number of Claims

PROGRAMS HIGHLIGHTS
5 $1.6M
$4.5M
$789K
166 L1/L2
Rebates reserved:
= 10 Installed EVSE Ports
Cumulative $ Funds Claimed to Date (in 000s)
Cumulative Applications
Completed Assessments
$650k
DEC 24
SILICON VALLEY <3/ CLEAN ENERGY
Item 2
Attachment 3
Decarb Programs Quarterly Report
CALeVIP
Level 2 DCFC

0.000

1.000

2.000

3.000

4.000

5.000

6.000
12/21 6/22 12/22 6/23 12/23 6/24 12/24
0 100
200
300
400
500
Reserved
Provide incentives for electric vehicle (EV) chargers
as part of a regional program.
= 25 Level 2 Installations
300 Participants Complete
the Course (Phase 2)
Goal:

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

Funding: $11.58M
= 10 Participants Complete Course
Funds Issued = 5 DCFC Installations
456
Remaining Funds
Registrations
288
$3.34M
$700K
$1.52M
$380K
$84K
6 PROGRAMS HIGHLIGHTS
$1.96M
$84K
DEC 24
Item 2
Attachment 3
Decarb Programs Quarterly Report
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CDCLEAN ENERGY
1/23/25/2
7/29/2
1 /2
1/23
3/23
5/23
7/23
9/23
4/24
10/24
0 500
1000
1500
2000
9/23
10/23
1 /23
12/23
1/24
2/24
3/24
4/24
5/24
6/24
7/24
8/24
9/24
10/24
1 /24
12/24
0 100,000
200,000
300,000
400,000
GridShift EV Charging
Managed EV charging app that optimizes charging
to reduce associated costs and emissions.

Charger Rebates Issued: 58
Number of Enrolled EVs
1,601
Rebate Goal: $30K
Goal:
120 EV Chargers
added to fleet
eHub Report
Online customer resource center to enable
engagement, education and action related to clean
electricity, EVs and home electrification.
393,740
34,579
Unique Visits Return Visits
7 PROGRAMS HIGHLIGHTS DEC 24
Item 2
Attachment 3
Decarb Programs Quarterly Report

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CDCLEAN ENERGY
MARKETING HIGHLIGHTS DEC 24
Contractor Lunch and Learns
Goal: To engage and reach local contractors who have not heard of SVCE offers and services or those who are aware of our programs but rarely engage.

Results: 41 contractors from our service territory attended our events in Mountain View and Morgan Hill, which were designed as small, intimate lunch-and-learn sessions. We reached our target audience via email, phone calls, and brochures.

Launch of the New and Improved eHub
Goal: Increase accessibility and remove barriers to going electric by improving the user experience (UX).

Tactics: Launched the new eHub mid-November, published a press release, and updated customers via our monthly newsletter and the annual Power Content Label. 8 Item 2
Attachment 3
Decarb Programs Quarterly Report

CONTRACTOR LUNCH & LEARN
Incentives,Networking and New Tools
NOVEMBER 14 & 19
12:00 - 1:30 P.M. REGISTER BELOW
Hello Contractors,
We sincerely appreciate your ongoing support of
and your commitment to staying informed about our
programs. We invite you to join one of two upcoming lunch-and-leam events where you can explore current incentives and innovative tools to boost your productivity, save time, and benefit your business with streamlined quotes and rebates. This is also a great opportunity to network with other professionals and engage with leaders in all-electric technologies. Don't miss out on valuable insights to help grow your business and stay up-to-date.

Event Benefits:

1. Complimentary lunch

2. Learn about SVCE and other incentives

3. Network with fellow contractors
(Contractors can only sign up for one of the two events.) Homeowners Renters
Upgrade your home with Enhance your space with
electric appliances for electric appliances for
comfort, efficiency, and better comfort, efficiency.
health—claim up to $8,750 and a healthier
in rebates. environment.

Find Incentives— Find Incentives—
Futu
Discov
eligibili
saving-incenti
credits
Find In
Go Electric for a healthier ho
eHub simplifies your upgrade to all-electric living. Find personalized rel appliances with clean energy.

Explore our
Incentives F
Discover rebates and
home safer and more
electric equipment. Fi
D

SILICON VALLEY

CLEAN ENERGY
MARKETING HIGHLIGHTS DEC 24
Dream Home at Community Events
Goal: Promote a hands-on, interactive experience with modern electric equipment to demonstrate why customers should replace fossil fuel appliances.

Tactics: SVCE partnered with the San Jose Conservation Corps to design and build the Dream Home, a demonstration trailer featuring a heat pump mini-split, induction cooking, heat pump water heater, and more. In 2024, SVCE brought the Dream Home to ten community events. 9 Item 2
Attachment 3
Decarb Programs Quarterly Report
©

SILICONVALLEY

CLEAN ENERGY
Built Environment
Community Energy Resilience: Resources (grants) and tools for member agencies to increase individual and collective capacity to adapt to future power outages. Electric Showcase Awards 2.0: Award program to recognize residential, commercial, and non-profits who are early adopters of existing building electrification. Decarbonization Demonstration Grants: Grants to encourage member agencies and other key groups an opportunity to electrify their facilities. Focus on projects with public visibility for education/awareness purposes. Decarbonization Engagement Grants: Grants for member agencies and other key groups to work on smaller electrification engagement initiatives to engage their communities. Electrification Rate Discount: Custom rate to promote building electrification. Existing Building Policy Experimentation: Assess and support potential policy levers that member agencies can explore to mitigate emissions from existing buildings. Feasibility Assessment of Natural Gas Phase Out by 2045: Feasibility study to identify technical, legal, and economic barriers and opportunities for phasing out natural gas service by 2045 in SVCE's service territory. Contractor Training: Training and financial incentive program for contractors to expand their knowledge and installation of electrification technologies. Go Electric Advisor: Comprehensive one-on-one phone or web assistance to SVCE customers to assist them in applying for electrification incentives, technical assistance, or developing a whole-home electrification plan. Home Rebates: Incentives for various building electrification technologies for single- and small multi-family residential customers. Includes major appliances as well as eventual gas meter removal. Business Rebates: Incentives for projects at a handful of small and medium business properties. Multifamily Retrofits (BE Direct Install): Comprehensive building electrification retrofits with a direct installer for multifamily affordable housing sites. Permit Modernization: Benchmark and streamline member agency permitting and inspection processes to identify barriers and opportunities to electrification. Reach Codes 2.0: Provide model building energy codes supportive of all-electric design and EV infrastructure to member agencies along with consultant support. 10 GLOSSARY DEC 24
Item 2
Attachment 3
Decarb Programs Quarterly Report

SILICON VALLEY

CLEAN ENERGY
CALeVIP: Incentives for L2 and DCFC publicly-accessible EV chargers funded by California Energy Commission and SVCE as part of a regional collaboration. EV Charging Incentives: Incentive program for L1 and L2 EV charging at hard-to-reach multifamily properties. Fleet Electrification Program: Competitive application for SVCE’s fleet electrification planning support and funding for site upgrades targeting a broad set of fleet types. EV Charging Planning: Technical assistance for preliminary site design and pertinent rebates for charging at multifamily housing and small and medium workplace properties. Multifamily Retrofits (TE Direct Install): Comprehensive transportation electrification retrofits with a direct installer for multifamily affordable housing sites. Fast Charger Incentives: Competitive grant application for DCFC installations in “priority zones” that support designated multifamily housing clusters. SVTEC: Regular regional stakeholder meetings focused on information sharing, solving critical issues, and attracting external funding to the SVCE community in support of EV infrastructure deployment.

GLOSSARY
Lights On Silicon Valley: Provide incentives for enrolling solar and battery systems in the SVCE grid services program. Medical Battery Program: Pilot program to deploy ~50 portable batteries to qualified customers who rely on power for medical equipment.

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

Mobility
Power Supply
Education & Outreach
Built Environment
SVBEST: Regular regional stakeholder convenings to coordinate program alignment across building decarbonization workstreams. Tariffed On Bill (TOB) Financing: Equitable financing pilot program for electrification for low- moderate income residents focusing cost recovery through on-bill charges that are lower than bill savings.

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

Grid Integration
11 DEC 24
Item 2
Attachment 3
Decarb Programs Quarterly Report

SILICON VALLEY

CLEAN ENERGY

Staff Report – Item 3
Item 3: Receive Audit Results and Accept the Findings from Independent Auditor From: Monica Padilla, CEO
Prepared by: Amrit Singh, CFO and Director of Administrative Services Karen Chang, Manager of Finance
Date: 3/12/2025

RECOMMENDATION
Receive the Year-End Financial Statements and the Independent Auditor’s Report for the Fiscal Year 2023-24.

AUDIT COMMITTEE RECOMMENDATION
At the February 28, 2025, meeting of the Audit Committee, committee members received a presentation by the Independent Auditor discussing the status of the audit and the preliminary auditor’s opinion. The Audit Committee also received the draft Annual Audited Financials and the draft Letter of Significant Deficiencies or Material Weaknesses Identified.

BACKGROUND
In accordance with Financial Policy #1 (FP1), Accounting Policy, the annual audit of the financial statements has been completed, and the report prepared by Kosmatka Donnelly & Co., LLP (formerly Pisenti & Brinker, LLP) has been issued to the Agency. The auditors have rendered a clean opinion and found “the financial statements referred to above present fairly, in all material respects, the financial position of SVCE as of September 30, 2024 and 2023 and the changes in financial position and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.” Basic Financial Statements
The Statement of Net Position presents information about assets and liabilities with the difference between the two reported as net position. The change in net position over time is an indicator of whether the financial position of the Agency is improving or deteriorating.

The Statement of Revenues, Expenses and Changes in Net Position reports how net position changed during the year and present a comparison between operating and non-operating revenues and operating and non-operating expenses. Operating revenues and expenses are related to the Agency’s principal business of providing carbon-free electricity.

The Statement of Cash Flows reports the cash provided and used by operating activities, as well as other sources and uses, such as financing and investing activities.

Notes to the Financial Statements
Various notes provide additional information that is essential to a full understanding of the information provided in the basic financial statements. These are found immediately following the financial statements to which they refer.

Item 3
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 3 Agenda Date: 3/12/2025

ANALYSIS & DISCUSSION
The following represents highlights as of September 30, 2024:
• As of September 30, 2024, total assets were $571.2 million, with $420.4 million of current assets.

Current assets are mostly comprised of $261.5 million of cash and cash equivalents, $43.1 million in accounts receivable, $29.6 million in accrued revenue, $710 thousand in deposits, and $375 thousand in restricted cash held for supplier security deposits. The total of current assets increased during the fiscal year as a result of SVCE’s operating surplus.
• As of September 30, 2024, total liabilities were $86.0 million. Current liabilities consist mostly of the cost of electricity delivered to customers that is not yet due to be paid by SVCE. Other components include taxes and surcharges due to other governments and various other accrued liabilities.

Noncurrent liabilities of $15.3 million consist of mostly supplier security deposits provided as cash, rather than letters of credit.
• As of September 30, 2024, total revenues were $534.5 million, primarily from the sale of carbon-free electricity. Operating revenues exceeded the cost of electricity by $173 million resulting in an operating margin of 32.4%.
• As of September 30, 2024, total expenses were $397.2 million. Expenses for staff compensation, consulting, and other general and administrative expenses increased in 2024 as the organization grew operations and responded to the challenges of a changing business landscape.

STRATEGIC PLAN
This report supports Strategic Plan Goal 6 – “Maintain healthy financial position; avoid failures in the management of market risk, credit risk, liquidity risk, operational risks, and enterprise risks.”

ALTERNATIVE
There is no alternative to this recommendation, as the financial audit is a requirement of Board Policy FP1.

FISCAL IMPACT
During Fiscal Year 2023-24, SVCE’s total expenses exceeded total revenues, resulting in an increase to Net Position of $160.7 million.

SVCE’s Auditors, Kosmatka Donnelly & Co., LLP (formerly Pisenti & Brinker, LLP) issued an unqualified (“clean”) opinion on the Agency’s financials for the fiscal year ended September 30, 2024.

ATTACHMENTS

1. Audited Financials for the fiscal year ended September 30, 2024

2. SVCE Representation Letter

3. Letter of Significant Deficiencies or Material Weaknesses Item 3
Financial Statements
Years Ended:

September 30, 2024
September 30, 2023
With Report of Independent Auditors
Silicon Valley Clean Energy Authority
Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY
YEARS ENDED SEPTEMBER 30, 2024 AND 2023

TABLE OF CONTENTS
Independent Auditor’s Report ……………………………………………………....... 1 Management’s Discussion and Analysis ……………………………………………... 4 Basic Financial Statements:

Statements of Net Position …………………………………………………… 11
Statements of Revenues, Expenses and Changes in Net Position …................. 12 Statements of Cash Flows …………………………………………………….. 13
Notes to the Basic Financial Statements ……………………………………… 15 Item 3
Attachment 1
Pisenti & Brinker LLP has joined practices with Kosmatka, Donnelly & Co., LLP (dba, KDP Certified Public Accountants, LLP). The former Pisenti & Brinker LLP Partners are now Partners of KDP Certified Public Accountants, LLP (KDP). KDP Certified Public accountants, LLP is a licensed CPA firm that provides attest services to its clients. Pisenti & Brinker Management LLC provides professional tax and business consulting services to its clients. Pisenti & Brinker Management, LLC and KDP Certified Public Accountants, LLP practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations, and professional standards. 3562 Round Barn Circle, Suite 200
Santa Rosa, CA 95403
(707) 542-3343  Office
(707) 527-5608  Fax
Independent Auditor’s Report
To the Board of Directors
Silicon Valley Clean Energy Authority
Opinion
We have audited the accompanying financial statements of Silicon Valley Clean Energy Authority (SVCE), which comprise the statements of net position as of September 30, 2024 and 2023, the related statements of revenue, expenses and changes in net position, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of SVCE as of September 30, 2024 and 2023, and the results of its operations and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of SVCE and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about SVCE’s ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued, including any currently known information that may raise substantial doubt shortly thereafter.

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Attachment 1
KOSMATKA DONNELLY & CO., LLP
@+ 00
Independent Auditor’s Report (continued)
Auditor’s Responsibilities for the Audits of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audits. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audits in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of SVCE’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about SVCE’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters that we identified during the audits.

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Attachment 1
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s discussion and analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Kosmatka, Donnelly & Co., LLP
Santa Rosa, California
January 31, 2025
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SILICON VALLEY CLEAN ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
4 The purpose of management’s discussion and analysis (MD&A) is to help stakeholders and other readers understand what the financial statements and notes in this report say about Silicon Valley Clean Energy Authority’s (SVCE) financial health and why it has changed since last year. It contains information drawn from other parts of the report, accompanied by explanations informed by the finance staff’s knowledge of SVCE’s finances.

Overview of the Financial Statements
SVCE’s financial report contains basic financial statements, which include:
o The Statements of Net Position include all of SVCE’s assets, liabilities, and net position and provides information about the nature and amount of resources and obligations at a specific point in time.
o The Statements of Revenues, Expenses, and Changes in Net Position report all of SVCE’s revenue and expenses for the years shown.
o The Statements of Cash Flows report the cash provided and used by operating activities, as well as other sources and uses, such as capital and investing activities. o The notes to the Basic Financial Statements provide additional details and information related to the basic financial statements.

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Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
5 Financial Summary
SVCE’s Net Position
2024 2023 2022
Current assets $ 420,352,985 $ 376,699,458 $ 270,632,455 Noncurrent assets:

Capital assets, net 761,171 1,259,365 1,681,871
Other noncurrent assets 150,052,998 56,864,643 45,330
Total noncurrent assets 150,814,169 58,124,008 1,727,201 Total assets 571,167,154 434,823,466 272,359,656
Current liabilities 70,667,155 86,003,663 51,733,663
Noncurrent liabilities 15,303,125 24,283,988 7,942,472
Total liabilities 85,970,280 110,287,651 59,676,135
Net position
Net Investment in capital assets 358,431 348,144 287,728 Unrestricted 484,838,443 324,187,671 212,395,793
Total net position 485,196,874 $ $ 324,535,815 $ 212,683,521 As of September 30, 2024, SVCE’s total net position was approximately $485,000,000, an increase of $161,000,000 or 50% as compared to September 30, 2023. Most of the increase in net position was a result of SVCE’s operating surplus discussed below.

SVCE’s Changes in Net Position
2024 2023 2022
Operating revenues $ 534,489,788 $ 503,675,151 $ 363,521,534 Nonoperating revenues 23,348,067 9,262,831 1,870,954
Total revenues 557,837,855 512,937,982 365,392,488
Operating expenses 397,162,572 401,057,113 318,708,488
Nonoperating expenses 14,224 28,576 36,126
Total expenses 397,176,796 401,085,689 318,744,614
Change in net position 160,661,059 $ $ 111,852,293 $ 46,647,874 Increases in electricity sales accounted for most of the increase in total income. The cost of electricity, a component of operating expenses, decreased approximately 4% from fiscal year 2023 to fiscal year 2024 due to changes in volume and market prices.

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Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
6 Detailed Analysis
Current assets increased from $377,000,000 at the end of fiscal year 2023 to $420,000,000 at the end of fiscal year 2024. This increase was due to operating surpluses as well as the timing in paying operating expenses. Current assets at the end of fiscal year 2024 were primarily comprised of cash and investments of $330,000,000, accounts receivable of $43,000,000, and accrued revenue of $30,000,000.

Capital assets are reported net of depreciation and amortization. Each year, the change is mostly due to capital asset acquisitions, less depreciation and amortization expense. Capital assets include leasehold improvements, furniture and equipment, a vehicle, and a lease asset related to SVCE’s office premises.

Other noncurrent assets include investments of $150,000,000 and $57,000,000 at the end of fiscal years 2024 and 2023, respectively.

The largest component of current liabilities is the cost of electricity delivered to customers that was not yet paid by SVCE by the end of the fiscal year. Current liabilities for the cost of energy fluctuated each year due to changes in payment terms of certain energy products, as well as the prices of those products. Accrued cost of electricity was approximately $64,000,000 and $79,000,000 at the end of fiscal years 2024 and 2023, respectively.

Noncurrent liabilities consist of supplier security deposits held by SVCE as collateral.

Operating revenues increased each year from fiscal years 2022 to 2024, primarily from increases in rates charged to customers. SVCE also receives revenues from sources other than retail customer sales. These sources include liquidated damage revenue resulting from electricity suppliers’ noncompliance with contract provision and grant income used to assist with various customer programs.

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Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
7 Detailed Analysis (continued)
Grant income from the California Arrearage Payment Plan (CAPP) was included in nonoperating revenues for fiscal years 2022 and 2023. This grant was applicable for two years and did not recur in fiscal year 2024. Investment income increased each year due to changes in market interest rates as well as increases in invested assets.

Operating expenses fluctuated each year primarily due to market forces that affect the cost of electricity, SVCE’s largest expense. SVCE procures energy from a variety of sources to reduce market risk and to maintain a balanced renewable power portfolio. The primary driver of the decrease in energy costs from 2023 to 2024 was decrease in certain market prices.

Significant Capital Asset and Long-Term Financing Activity SVCE does not own assets used for electric generation or distribution. Included in capital assets are office equipment, such as computers, furniture, a vehicle, leasehold improvements and a leased asset.

Assets that are leased by SVCE, such as office premises, are recorded in the Statement of Net Position with a related liability for future obligations.

Currently Known Facts, Decisions, or Conditions
SVCE serves approximately 96% of all eligible customers in the service area, and that participation rate is expected to remain stable in 2025.

SVCE procures energy consistent with its Board-approved Energy Risk Management Policy that aligns customer demand for clean energy with short and long-term purchases of clean energy resources. SVCE complies with state laws and its own targets for renewable and greenhouse gas (GHG) free energy. California’s Renewable Portfolio Standard (RPS) requires load-serving entities such as SVCE to supply their retail sales with minimum quantities of eligible renewable energy annually and through long-term commitments of more than ten years. The state has also directed load-serving entities (LSEs) to procure new clean energy and capacity resources by 2026 to meet grid reliability goals. Senate Bill 100 directs all LSEs to procure 60% of their portfolios from RPS-eligible resources by 2030 and 100% of their retail sales from GHG-free resources (or eligible renewable resources) by 2045. Senate Bill 1020 sets interim clean targets of 90% and 95% by 2035 and 2040. SVCE’s current policy is to procure 100% of retail sales, adjusted for transmission and distribution losses, from GHG-free resources. SVCE has executed 18 RPS contracts of ten years or more and has met its RPS requirements for long-term procurement. SVCE is on the path to meeting its requirements as ordered by the CPUC under the Mid-term Reliability Procurement decision (R.20-05-003).

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Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
8 Currently Known Facts, Decisions, or Conditions (Continued) SVCE uses a portfolio risk-management approach in its power purchasing program, seeking low-cost supply and diversity among technologies, production profiles, project sizes and locations, counterparties, length of the contract, and timing of market purchases. SVCE’s procurement strategy through 2030 includes regularly procuring new and existing California renewables by 2030 via contracts with terms of 10 years or more. The strategy also includes investing in storage paired with solar, stand-alone storage, long-duration storage, geothermal, and large hydroelectric resources. SVCE continually manages its forward load obligations and supply commitments to balance cost stability and minimization. SVCE closely monitors its open positions for Portfolio Content Category 1 (PCC 1) renewable energy and carbon-free, non-RPS eligible, based on calendar-year targets. SVCE maintains its clean portfolio coverage targets of up to 100% in the near term and leaves a greater portion open in the medium- to long-term, consistent with generally accepted industry practice.

SVCE also procures electric capacity or Resource Adequacy (RA), a California program jointly administered by the California Public Utilities Code (CPUC), the California Energy Commission (CEC), and California Independent System Operator (CAISO). The RA resources ensure enough supply in the right locations and sufficient ramping capability to meet the load in the CAISO market.

In the fiscal year ending September 30, 2024, SVCE’s retail load increased by about 2% from the prior fiscal year to 3.93 Terrawatt-hours (TWhrs). SVCE expects retail load to grow to 4.01 TWhrs for the Fiscal Year ending September 30, 2025, resulting primarily from residential load increase due to transportation and building electrification load growth. Over the next ten years, SVCE expects the load to grow by about 2% per year. The forecast also incorporates load-modifying effects of increasing electric vehicle adoption and charging, behind-the-meter solar and/or storage (via net energy metering), and energy efficiency. SVCE’s long-term load forecast is driven primarily by the number and types of customers. SVCE’s planning accounts for the expected load growth from the transportation, data center (including artificial intelligence), and building electrification sectors.

In 2019, the Board of Directors approved a Commercial Pricing Policy that allows SVCE to offer innovative customized contract offerings to customers that support long-term customer retention.

SVCE has signed long-term arrangements with two major customers for customized power supply offerings and is working with additional prospective customers.

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Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
9 Currently Known Facts, Decisions, or Conditions (Continued) SVCE expects to continue to provide competitive electric rates. Volatile energy prices and the variability of the power charge indifference adjustment (PCIA) can be barriers to providing stable rates. The PCIA is an accounting mechanism to ensure indifference between bundled and unbundled customers to pay for assets procured by IOUs on behalf of their customers before unbundled customers departed (for a CCA or ESP, e.g.). For SVCE, the PCIA is calculated by determining the market value of Pacific Gas and Electric Company’s (PG&E) portfolio for assets procured in 2017 or prior. SVCE’s customers pay a proportionate share of the costs incurred for that legacy portfolio. As of January 2023, SVCE has increased its discount relative to PG&E’s generation service to 4 percent. SVCE continues to advocate for legislation and regulatory proceedings that impact rates (e.g., procurement mandates, load management standards, and reliability proceedings).

SVCE’s commitment to building healthy cash reserves has placed SVCE in a stable position to manage volatile energy prices and future regulatory and legislative risks. SVCE sets aside funds, known as reserves, to ensure it can continue serving customers even during times of financial stress, such as when energy costs are highly volatile. SVCE’s analyses of the reserves required to withstand plausible risk events indicate a reserve target to cover 350 days of operation or about $430 million. Risk event analyses, also called stress tests in the industry, evaluate how extreme but plausible scenarios could deplete reserves. These tests provide valuable insight for shaping fiscal year budgets and reserve targets to help mitigate the impact of potential risks. They can also ensure that SVCE remains resilient in different scenarios and help guide the development of the agency’s strategic plan. Risks include market price, revenue, counterparty credit and performance, load and generation fluctuations, operational and financial liquidity, and regulatory and legislative changes.

SVCE is committed to investing funds not needed for operations or to meet reserve requirements into our communities via lower rates and customer and community decarbonization programs that disperse funds through rebates, scholarships, services, and grants. As of the fiscal year ending September 30, 2024, SVCE has remaining earmarked funds of about $95 million towards these decarbonization programs. Most of these programs have been implemented and are currently available to customers. SVCE is working to market and increase customer adoption, which takes time and can stretch out the disbursement of these funds across many years. Yearly fund disbursements are expected to increase in the coming years with accelerated customer adoption of these programs. In addition to continued baseline funding for decarbonization programs, SVCE plans to implement a policy directing any additional funds to support future customer rate stability, further scaling adoption of pollution-free appliances, and investments in local clean power supply technology.

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Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
10 Currently Known Facts, Decisions, or Conditions (Continued) SVCE strongly focuses on building credit capacity through increased cash reserves, complying with the energy risk management policy and credit guidelines, and entering into favorable energy purchase commitments. SVCE received a “Baa1” credit rating in the Summer of 2023 from Moody’s and an ‘A’ credit rating from S&P Global in May 2023, both affirmed a stable outlook for SVCE.

Request for Information
This financial report is designed to provide SVCE’s board members, stakeholders, customers, and creditors with a general overview of SVCE’s finances and to demonstrate SVCE’s accountability for the funds under its stewardship.

Please address any questions about this report or requests for additional financial information to the finance department at 333 W. El Camino Real, #330, Sunnyvale, CA 94087 or contact [email protected].

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Attachment 1

BASIC FINANCIAL STATEMENTS
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Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENTS OF NET POSITION
SEPTEMBER 30, 2024 AND 2023
The accompanying notes are an integral part of these financial statements. 11 2024 2023
ASSETS
Current assets
Cash and cash equivalents $ 261,473,872 $ 230,694,505
Accounts receivable, net of allowance 43,061,445 49,889,393 Accrued revenue 29,579,485 30,432,122
Other receivables 16,224,969 4,396,286
Prepaid expenses 843,135 1,353,177
Deposits 709,798 25,602,479
Investments 68,460,281 34,331,496
Total current assets 420,352,985 376,699,458
Noncurrent assets
Deposits 45,130 45,130
Investments 150,007,868 56,819,513
Capital assets, net of depreciation and amortization 761,171 1,259,365 Total noncurrent assets 150,814,169 58,124,008
Total assets 571,167,154 434,823,466

LIABILITIES
Current liabilities
Accrued cost of electricity 64,433,952 78,604,532
Accounts payable 1,770,065 2,857,744
Other accrued liabilities 2,006,073 1,286,104
User taxes and energy surcharges due to other governments 1,679,325 1,726,800 Supplier security deposits 375,000 1,020,000
Lease liability 402,740 508,483
Total current liabilities 70,667,155 86,003,663
Noncurrent liabilities
Supplier security deposits 15,303,125 23,881,250
Lease liability - 402,738
Total noncurrent liabilities 15,303,125 24,283,988
Total liabilities 85,970,280 110,287,651

NET POSITION
Net investment in capital assets 358,431 348,144
Unrestricted 484,838,443 324,187,671
Total net position $ 485,196,874 $ 324,535,815
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Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENTS REVENUES, EXPENSES

AND CHANGES IN NET POSITION
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
The accompanying notes are an integral part of these financial statements. 12 2024 2023

OPERATING REVENUES
Electricity sales, net $ 530,672,320 $ 500,150,468
GreenPrime electricity premium 2,498,428 1,456,427
Liquidated damages 1,291,500 2,019,600
Other income 27,540 48,656
Total operating revenues 534,489,788 503,675,151

OPERATING EXPENSES
Cost of electricity 361,542,484 375,015,282
Contract services 14,235,827 10,228,607
Staff compensation and benefits 12,525,043 9,682,535
Other operating expenses 8,219,946 5,509,407
Depreciation and amortization 639,272 621,282
Total operating expenses 397,162,572 401,057,113
Operating income 137,327,216 102,618,038

NONOPERATING REVENUES (EXPENSES)
Investment income 23,348,067 8,546,278
Grant income - 716,553
Finance costs (14,224) (28,576)
Nonoperating revenues (expenses), net 23,333,843 9,234,255 CHANGE IN NET POSITION 160,661,059 111,852,293
Net position at beginning of year 324,535,815 212,683,522 Net position at end of year $ 485,196,874 $ 324,535,815 Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENTS OF CASH FLOWS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
The accompanying notes are an integral part of these financial statements. 13 2024 2023

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 549,801,243 $ 511,002,951
Receipts of liquidated damages 1,216,500 2,019,600
Receipts of security deposits 34,632,586 15,470,000
Other operating receipts 15,290 38,633,263
Payments to suppliers for electricity (386,298,737) (359,547,762) Payments of security deposits (18,875,780) (28,151,765) Payments for other goods and services (22,723,427) (14,469,068) Payments of staff compensation and benefits (12,352,507) (9,393,101) Payments of taxes and surcharges to other governments (8,997,384) (8,512,842) Net cash provided by operating activities 136,417,784 147,051,276

CASH FLOWS FROM NON-CAPITAL

FINANCING ACTIVITIES
Grant revenue received - 716,553

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments of lease obligation (522,705) (536,056)
Payments to acquire capital assets (151,584) (188,270)
Net cash used by capital and related
financing activities (674,289) (724,326)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 22,096,463 6,946,208
Proceeds from investment sales 54,494,824 -
Purchase of investments (181,555,415) (91,130,973)
Net cash used by investing activities (104,964,128) (84,184,765) Net change in cash and cash equivalents 30,779,367 62,858,738 Cash and cash equivalents at beginning of year 230,694,505 167,835,767 Cash and cash equivalents at end of year $ 261,473,872 $ 230,694,505 Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENTS OF CASH FLOWS (CONTINUED)
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
The accompanying notes are an integral part of these financial statements. 14 2024 2023
Operating income $ 137,327,216 $ 102,618,038
Adjustments to reconcile operating income to net
cash provided by operating activities
Depreciation and amortization expense 639,272 621,282
(Increase) decrease in:

Accounts receivable, net of allowance 6,827,948 5,773,835 Accrued revenue 852,637 (4,923,424)
Other receivables (10,833,628) (2,734,538)
Prepaid expenses 510,042 (375,249)
Current deposits 24,892,681 (5,037,158)
Increase (decrease) in:

Accrued cost of electricity (14,170,580) 42,549,670
Accounts payable (1,077,173) 1,839,430
Other accrued liabilities 719,969 216,587
User taxes and energy surcharges due to other governments (47,475) 32,803 Supplier security deposits (9,223,125) 6,470,000
Net cash provided by operating activities $ 136,417,784 $ 147,051,276 2024 2023

NONCASH INVESTING ACTIVITIES
Unrealized appreciation and
timing differences in investment income $ 1,251,604 $ 1,600,070

RECONCILIATION OF OPERATING INCOME TO NET

CASH PROVIDED BY OPERATING ACTIVITIES
Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
15 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY
Silicon Valley Clean Energy Authority (SVCE) is a Joint Powers Authority created on March 31, 2016. As of September 30, 2024, parties to its Joint Powers Agreement consist of the following local governments:

Unincorporated areas of Santa Clara County Milpitas
Campbell Monte Sereno
Cupertino Morgan Hill
Gilroy Mountain View
Los Altos Saratoga
Los Altos Hills Sunnyvale
Los Gatos
SVCE is separate from and derives no financial support from its members. SVCE is governed by a Board of Directors whose membership is composed of elected officials representing the member governments.

SVCE was formed to study, promote, conduct, operate, and manage energy and energy-related climate change programs, and to exercise all other powers necessary and incidental to accomplishing these objectives. A core function of SVCE is to provide electric service that includes the use of renewable sources under the Community Choice Aggregation Program under California Public Utilities Code Section 366.2.

SVCE began its energy delivery operations in April 2017. Electricity is acquired from commercial and municipal suppliers and delivered through existing physical infrastructure and equipment managed by Pacific Gas and Electric Company (PG&E).

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Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
16 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

BASIS OF ACCOUNTING
SVCE’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements.

SVCE’s operations are accounted for as a governmental enterprise fund and are reported using the economic resources measurement focus and the accrual basis of accounting – similar to business enterprises. Accordingly, revenues are recognized when they are earned, and expenses are recognized at the time liabilities are incurred. Enterprise fund type operating statements present increases (revenues) and decreases (expenses) in total net position. Reported net position is segregated into three categories – net investment in capital assets, restricted and unrestricted.

When both restricted and unrestricted resources are available for use, it is SVCE’s policy to use restricted resources first, and then unrestricted resources as they are needed.

CASH AND CASH EQUIVALENTS
For purposes of the Statements of Cash Flows, SVCE defines cash to include cash on hand, demand deposits money market funds, and short-term investments with an original maturity of three months or less.

INVESTMENTS
Investments are stated at fair value based on prices listed on a national exchange for debt securities. Certificates of deposits are stated at cost. While SVCE intends to hold its securities to maturity, all investments could readily be converted to cash should SVCE choose to do so.

Investments with a maturity of less than one year are shown as current assets in the Statement of Net Position. Investments with a maturity of one year or more are shown as noncurrent assets in the Statement of Net Position.

SVCE’s Investment Policy permits the following types of investments:

U.S. Treasury obligations Medium term notes
U.S. Agency obligations Negotiable certificates of deposits Municipal obligations Asset-backed securities
Deposits at banks Supranational obligations
Local Agency Investment Fund Joint power authority pool Commercial paper Money market funds

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Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
17 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

PREPAID EXPENSES
Payments made to vendors that will benefit periods beyond the end of the current fiscal year are recorded as prepaid expenses.

DEPOSITS
Contracts to purchase energy may require SVCE to provide the supplier with advanced payments or security deposits. Deposits are generally held for the term of the contract and are classified as current or noncurrent assets depending on the length of time the deposits will be outstanding. The balance in current deposits decreased significantly from 2023 to 2024 due to changes collateral requirements with certain counterparties, including changing credit risk and the completion of certain contracts.

LEASE ASSET AND LEASE LIABILITY
SVCE recognizes an asset and liability when it enters into certain leasing arrangements. The cost of the leased asset is amortized over the term of the lease. The lease liability is the present value of payments expected to be paid to the lessor during the lease term. SVCE’s only leased asset and liability relate to its office premises.

CAPITAL ASSETS AND DEPRECIATION
SVCE’s policy is to capitalize furniture and equipment valued over $1,000 that is expected to be in service for over one year. Depreciation is computed according to the straight-line method over estimated useful lives of three years for electronic equipment, five years for automobiles and seven years for furniture and leasehold improvements. SVCE does not own any electric generation assets.

SUPPLIER SECURITY DEPOSITS
Various energy contracts require the supplier to provide SVCE with a security deposit. These deposits are generally held for the term of the contract or until the completion of certain benchmarks. Deposits are classified as current or noncurrent depending on the length of time the deposits will be held.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
18 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

NET POSITION
Net position is presented in the following components:

Net Investment in capital assets: This component of net position consists of capital assets, net of accumulated depreciation and amortization and reduced by outstanding borrowings that are attributable to the acquisition, construction, or improvement of those assets.

Unrestricted: This component of net position consists of net position that does not meet the definition of “investment in capital assets” or “restricted”.

OPERATING AND NONOPERATING REVENUE
Operating revenues include energy sales to retail and wholesale customers, and liquidated damages from suppliers that fail to meet delivery commitments.

Investment income and grants that are not earned from the delivery of program activities are considered “nonoperating revenues”.

REVENUE RECOGNITION
SVCE recognizes revenue according to the accrual basis. This includes invoices issued to customers during the reporting period and electricity estimated to have been delivered, but not yet billed. Management estimates that a portion of the billed amounts will be uncollectible.

Accordingly, an allowance for uncollectible accounts has been recorded. Revenue is presented net of estimated uncollectible amounts.

OPERATING AND NONOPERATING EXPENSES
Operating expenses include the costs of electricity and services, administrative expenses, and amortization and depreciation of capital assets. Expenses not meeting this definition are reported as nonoperating expenses.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
19 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

COST OF ELECTRICITY
During the normal course of business SVCE purchases electrical power from numerous suppliers.

Electricity costs include the cost of energy and capacity arising from bilateral contracts with energy suppliers and for generation credits, load and other charges arising from SVCE’s participation in the CAISO’s centralized market. The cost of electricity and capacity is recognized as “Cost of Electricity” in the Statements of Revenues, Expenses and Changes in Net Position.

To comply with the State of California’s Renewable Portfolio Standards (RPS) and self-imposed benchmarks, SVCE acquires RPS eligible renewable energy evidenced by Renewable Energy Certificates (Certificates) recognized by the Western Renewable Energy Generation Information System. SVCE obtains Certificates with the intent to retire them and does not sell or build surpluses of Certificates with a profit motive. An expense is recognized at the point that the cost of the Certificate is due and payable to the supplier.

SVCE purchases capacity commitments from qualifying electricity generators to comply with the California Energy Commission’s Resource Adequacy Program. The goals of the Resource Adequacy Program are to provide sufficient resources to CAISO to ensure the safe and reliable operation of the electricity grid in real-time and to provide appropriate incentives for the siting and construction of new resources needed for reliability in the future.

STAFFING COSTS
SVCE pays employees bi-weekly and fully pays its obligation for health benefits and contributions to its defined contribution retirement plan as they come due. SVCE is not obligated to provide post-employment healthcare or other fringe benefits and, accordingly, no related liability is recorded in these financial statements. SVCE provides compensated time off, and the related liability is recorded in these financial statements.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
20 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

RECLASSIFICATIONS
Certain amounts in the prior-year financial statements may have been reclassified for comparative purposes to conform to the presentation of the current-year financial statements. These reclassifications did not result in any change in previously reported net position or change in net position.

2. CASH AND CASH EQUIVALENTS
SVCE maintains its cash in both interest-bearing and non-interest-bearing accounts. SVCE’s deposits are subject to California Government Code Section 16521, which requires banks to provide 110% collateralization on public funds in excess of the Federal Deposit Insurance Corporation limit of $250,000. Certain short-term investments with original maturities of less than three months are classified as cash and cash equivalents, which are not subject to the collateral requirement or FDIC coverage previously mentioned. Accordingly, the amount of risk is not disclosed. SVCE monitors its risk on an ongoing basis.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
21 3. ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

ACCOUNTS RECEIVABLE
Accounts receivable were as follows as of September 30:
2024 2023
Accounts receivable from customers 45,861,445 $ $ 52,689,393 Allowance for uncollectible accounts (2,800,000) (2,800,000) Net accounts receivable 43,061,445 $ $ 49,889,393
The majority of account collections occur within the first few months following the issuance of customer invoices. SVCE estimates that a portion of the invoiced accounts will not be collected.

SVCE continues collection efforts on accounts in excess of de minimis balances regardless of the age of the account. Although collection success generally decreases with the age of the receivable, SVCE continues to be successful in collecting older accounts. The ending allowance for uncollectible accounts reflects the remaining balance after certain accounts were fully written off.

OTHER RECEIVABLES
Other receivables consist primarily of amounts due from energy counterparties, generally as a result of certain wholesale transactions for energy products. The receivable balance at September 30, 2024 increased from the prior year as a result of a large resale agreement that was not in place during the prior year.

4. INVESTMENTS
During the years ended September 30, 2024 and 2023, SVCE purchased investments with original maturities of three months or more. As of September 30, investments, presented at fair value, were as follows:
2024 2023
U.S. Treasury bonds and notes $ 85,082,906 $ 50,243,069 Supranational obligations 862,521 -
Federal agency commercial 10,539,032 1,336,930
Corporate notes 42,194,852 9,893,896
Commercial paper 37,181,428 18,981,723
Certificate of deposits 9,228,478 7,429,188
Bank note 646,226 -
Asset-backed securities 32,732,706 3,266,203
Total investments $ 218,468,149 $ 91,151,009
Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
22 4. INVESTMENTS (CONTINUED)

FAIR VALUE MEASUREMENT
GASB Statement No. 72, Fair Value Measurement and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are significant other observable inputs, and Level 3 inputs are significant unobservable inputs.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. SVCE’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.

As of September 30, 2024 and 2023, SVCE’s investments are considered Level 1 inputs, except for certificates of deposits, which are based on the nominal value. Quoted prices in active markets were used for determining fair value measurement.

CREDIT RISK
Credit risk is the risk an issuer or other counterparty to an investment will not fulfill its obligations. Certain investments, such as obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government, are not considered to have credit risk.

As of September 30, 2024 and 2023, credit risk for other investments were rated as follows:

Moody's Investors Service 2024 2023
Supranational Agency Bond and Notes AAA -
Corporate Notes BBB+ to AA1 BBB+ to AA1
Commercial Paper A-1 to A+ A-1 to A-1+
Certificate of Deposits A-1 to A+ A to A-1+
Asset-Backed Securities NR to AAA AAA
S&P Rating
SVCE’s investment policy addresses this risk. SVCE limits investments to those allowed by Section 53601 of the California Government Code that addresses the risk allowable for each investment.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
23 4. INVESTMENTS (CONTINUED)
CUSTODIAL CREDIT RISK – CASH AND CASH EQUIVALENTS
Custodial credit risk is the risk that in the event of a financial institution failure, SVCE’s deposits may not be returned to SVCE. SVCE’s deposits are subject to California Government Code Section 16521, which requires banks to collateralize public funds in excess of the Federal Deposit Insurance Corporation (FDIC) limit of $250,000 by 110%.

As of September 30, 2024 and 2023, none of SVCE’s bank balances are known to be individually exposed to custodial credit risk.

CUSTODIAL CREDIT RISK - INVESTMENTS
Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, SVCE would not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. All of SVCE’s investments are exposed to custodial credit risk.

SVCE’s investment policy addresses this risk. All investments owned by SVCE shall be held in safekeeping by a third-party custodian, acting as an agent for SVCE under the terms of a custody agreement.

INTEREST RATE RISK
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Duration is a measure of the price sensitivity of a fixed income portfolio to changes in interest rates. Duration is calculated as the weighted average time to receive a bond’s coupon and principal payments. The longer the duration of a portfolio, the greater its price sensitivity to changes in interest rates. SVCE manages its exposure to declines in fair values by limiting the weighted average maturity of its investments.

Following is a summary of the percentages of investments by maturity date as of September 30, 2024 and 2023:
2024 2023
0 - 6 months 11.99% 32.48%
6 - 12 months 19.36% 15.89%
1 - 2 years 28.88% 32.50%
2 - 3 years 31.02% 15.43%
3 - 4 years 5.27% 1.38%
4 - 5 years 3.48% 2.32%
Over 5 years 0.00% 0.00%
Total 100.00% 100.00%
Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
24 5. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2024 was as follows:

Beginning
balance Increases Decreases
Ending
balance
Capital assets being depreciated and amortized:

Furniture and equipment $ 758,883 $ 129,051 $ (3,674) $ 884,260 Leasehold improvements 134,273 15,701 - 149,974
Lease asset 2,287,125 - - 2,287,125
Total capital assets being depreciated and amortized 3,180,281 144,752 (3,674) 3,321,359 Less accumulated depreciation and amortization:

Furniture, equipment and leasehold improvements (476,416) (157,772) - (634,188) Lease asset (1,444,500) (481,500) - (1,926,000)
Total accumulated depreciation and amortization (1,920,916) (639,272) - (2,560,188) Total capital assets, net of depreciation and amortization 1,259,365 $ $ (494,520) $ (3,674) $ 761,171 Capital asset activity for the year ended September 30, 2023 was as follows:

Beginning
balance Increases Decreases
Ending
balance
Capital assets being depreciated and amortized:

Furniture and equipment $ 567,107 $ 198,776 $ (7,000) $ 758,883 Leasehold improvements 134,273 - - 134,273
Lease asset 2,287,125 - - 2,287,125
Total capital assets being depreciated and amortized 2,988,505 198,776 (7,000) 3,180,281 Less accumulated depreciation and amortization:

Furniture, equipment and leasehold improvements (343,634) (139,782) 7,000 (476,416) Lease asset (963,000) (481,500) - (1,444,500)
Total accumulated depreciation and amortization (1,306,634) (621,282) 7,000 (1,920,916) Total capital assets, net of depreciation and amortization 1,681,871 $ $ (422,506) -$ 1,259,365 $

6. LEASE
A lease asset is reported in accordance with Governmental Accounting Standards Board No. 87 Leases (GASB 87).

In February 2024 SVCE amended its non-cancelable lease for its office premises, extending the lease through October 31, 2025.

Rental payments under this lease were $529,000 and $519,000 for the years ended September 30, 2024 and 2023, respectively.

As of September 30, 2024, future minimum lease payments under the lease were projected as approximately $403,000.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
25 7. GRANT REVENUE
SVCE administered a grant from the California Arrearage Payment Program (CAPP) that offers financial assistance for California energy utility customers to help reduce past due energy account balances that increased during the COVID-19 pandemic. This program concluded in 2023.

8. DEFINED CONTRIBUTION RETIREMENT PLAN
SVCE provides retirement benefits through the Silicon Valley Clean Energy Authority Public Agency Retirement System Defined Contribution Plan (Plan). The Plan is a defined contribution 401(a) Retirement Plan established to provide benefits at retirement to employees of certain qualified employers admitted by the Plan. The Plan is administered by Public Agency Retirement System (PARS). At September 30, 2024 and 2023, SVCE had 62 and 48 plan participants, respectively. SVCE is required to contribute 10% of covered payroll as a match to required employee contributions. SVCE contributed approximately $981,000 and $758,000 during the years ended September 30, 2024 and 2023, respectively. Plan provisions and contribution requirements as they apply to SVCE are established and may be amended by the Board of Directors.

9. RISK MANAGEMENT
SVCE is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; and errors and omissions. During the year, SVCE purchased insurance policies from investment-grade commercial carriers to mitigate risks that include those associated with earthquakes, theft, general liability, errors and omissions, and property damage. SVCE has general liability coverage of $2,000,000 with a deductible of $500.

SVCE maintains risk management policies, procedures and systems that help mitigate credit, liquidity, market, operating, regulatory and other risks that arise from participation in the California energy market.

Credit guidelines include a preference for transacting with investment-grade counterparties, evaluating counterparties’ financial condition and assigning credit limits as applicable. These credit limits are established based on risk and return considerations under terms customarily available in the industry. In addition, SVCE enters into netting arrangements whenever possible and, where appropriate, obtains collateral and other performance assurances from counterparties.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
26 10. PURCHASE COMMITMENTS

POWER AND ELECTRIC CAPACITY
In the ordinary course of business, SVCE enters into various power purchase agreements to acquire renewable and other energy and electric capacity. The price and volume of purchased power may be fixed or variable. Variable pricing is generally based on the market price of either natural gas or electricity at the date of delivery. Variable volume is generally associated with contracts to purchase energy from as-available resources such as solar, wind and hydro-electric facilities.

SVCE enters into power purchase agreements in order to comply with state law and voluntary targets for renewable and greenhouse gas (GHG) free products and to ensure stable and competitive electric rates for its customers.

The following table represents the expected, undiscounted, contractual obligations outstanding as of September 30, 2024:

Years ending September 30,
2025 276,000,000$
2026 197,000,000
2027 205,000,000
2028 207,000,000
2029 203,000,000
2030-2046 1,975,000,000
Total $ 3,063,000,000

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
27 11. JOINT VENTURE
The SVCE participates in a joint powers agreement (JPA) through the California Community Choice Financing Authority (CCCFA). CCCFA was formed to assist its members by undertaking the financing or refinancing of energy prepayments through tax-advantaged bonds on behalf of one or more of the members by issuing or incurring bonds and entering into related contracts with its members. Any debt or liability incurred by CCCFA on behalf of a member to prepay for renewable energy is not a debt or liability of that member. Furthermore, the assets of CCCFA in the form of prepaid energy or reserves held by the respective bond trustees for any prepayment transaction undertaken on behalf of a member does not constitute an asset or reserve of that member.

CCCFA issued the following bonds, excluding original issue premium, which are to be used to finance energy purchases that will be delivered to SVCE. No debt, liability, or obligation of CCCFA is a debt, liability, or obligation of SVCE.

Deal Date issued Amount
2021B September 2021 1,234,720,000 $
2023B January 2023 841,550,000
2024A January 2024 1,101,625,000
$ 3,177,895,000
SVCE will purchase energy from CCCFA in the same manner as it purchases energy from other suppliers. SVCE purchased approximately $46,622,000 and $29,081,000 from CCCFA during fiscal years 2024 and 2023, respectively. The outstanding purchase commitments related to these financing facilities of $251,143,000 are included in Note 10. This amount represents executed energy contracts assigned to CCCFA at September 30, 2024. Additional contracts will be assigned throughout the full bond period.

Each member of CCCFA is responsible for paying an equal portion of CCCFA’s general and administrative operating costs as determined by its board. During the years ended September 30, 2024, and 2023, SVCE contributed approximately $30,000 and $87,000, respectively, to CCCFA to assist in its operating activities.

The financial statements of CCCFA are available online at http://www.cccfa.org/key-documents.html.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
28 12. FUTURE GASB PRONOUNCEMENTS
The requirements of the following GASB Statements are effective for years ending after September 30, 2024:

GASB has approved GASB Statement No. 102, Certain Risk Disclosures, and GASB No. 103, Financial Reporting Model Improvements.

Management is evaluating the effect of implementation of these statements.

Item 3
Attachment 1
Pisenti & Brinker LLP has joined practices with Kosmatka, Donnelly & Co., LLP (dba, KDP Certified Public Accountants, LLP). The former Pisenti & Brinker LLP Partners are now Partners of KDP Certified Public Accountants, LLP (KDP). KDP Certified Public accountants, LLP is a licensed CPA firm that provides attest services to its clients. Pisenti & Brinker Management LLC provides professional tax and business consulting services to its clients. Pisenti & Brinker Management, LLC and KDP Certified Public Accountants, LLP practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations, and professional standards. 3562 Round Barn Circle, Suite 200
Santa Rosa, CA 95403
(707) 542-3343  Office
(707) 527-5608  Fax
January 31, 2025
To Management and the Board of Directors
Silicon Valley Clean Energy Authority
333 W. El Camino Real, Suite 330
Sunnyvale, California
In planning and performing our audits of the financial statements of Silicon Valley Clean Energy Authority (SVCE) as of and for the years ended September 30, 2024 and 2023, in accordance with auditing standards generally accepted in the United States of America, we considered SVCE’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of SVCE’s internal control.

Accordingly, we do not express an opinion on the effectiveness of SVCE’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A deficiency in design exists when (a) a control necessary to meet the control objective is missing, or (b) an existing control is not properly designed so that, even if the control operates as designed, the control objective would not be met. A deficiency in operation exists when a properly designed control does not operate as designed or when the person performing the control does not possess the necessary authority or competence to perform the control effectively.

A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, we did not identify any deficiencies in internal control during our audits that we consider to be material weaknesses or significant deficiencies. However, material weaknesses or significant deficiencies may exist that were not identified.

This communication is intended solely for the information and use of management and the Board of Directors and is not intended to be, and should not be, used by anyone other than these specified parties.

Kosmatka Donnelly & Co., LLP
Kellin Gilbert
Partner
Item 3
Attachment 2
KOSMATKA DONNELLY & CO., LLP
@+ CIO
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 January 31, 2025
Kosmatka Donnelly & Co., LLP
3562 Round Barn Circle, Suite 200
Santa Rosa, CA 95403
This representation letter is provided in connection with your audit of the basic financial statements of Silicon Valley Clean Energy Authority (SVCE) as of and for the years ended September 30, 2024 and 2023 for the purpose of expressing an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).

We confirm, to the best of our knowledge and belief, that as of January 31, 2025:

Financial Statements

1. We have fulfilled our responsibilities, as set out in the terms of the audit arrangement letter dated November 4, 2024 for the preparation and fair presentation of the financial statements referred to above in accordance with U.S. GAAP.

2. We acknowledge our responsibility for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

3. We acknowledge our responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud.

4. The methods, data, and significant assumptions used by us in making accounting estimates and their related disclosures are appropriate to achieve recognition, measurement, or disclosure that is reasonable in the context of U.S. GAAP, and reflect our judgment based on our knowledge and experience about past and current events, and our assumptions about conditions we expect to exist and courses of action we expect to take.

5. Related-party transactions have been recorded in accordance with the economic substance of the transaction and appropriately accounted for and disclosed in accordance with the requirements of U.S.

GAAP.

6. All events subsequent to the date of the financial statements, and for which U.S. GAAP requires adjustment or disclosure, have been adjusted or disclosed.

7. The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.

8. Management has followed applicable laws and regulations in adopting, approving and amending budgets.

9. We have reviewed, approved, and taken responsibility for the financial statements and related notes.

DocusignEnvelopeID:2E9EBB2B-429C-4F28-B006-7D240DB733E6 Item 3
Attachment 3
SILICON VALLEY \3/ CLEAN ENERGY
333 W El Camino Real, Suite 330 | Sunnyvale, CA 94087 | 1-844-474-SVCE (7823) | SVCleanEnergy.org Kosmatka Donnelly & Co., LLP
January 31, 2025

Campbell | Cupertino | Gilroy | Los Altos | Los Altos Hills | Los Gatos | Milpitas | Monte Sereno | Morgan Hill | Mountain View | Saratoga | Sunnyvale | Unincorporated Santa Clara County

10. Risk disclosures associated with deposit and investment securities and derivative transactions are presented in accordance with GASB requirements.

11. Provisions for uncollectible receivables have been properly identified and recorded.

12. Capital assets, including infrastructure, intangible assets, and right of use assets are properly capitalized, reported and, if applicable, depreciated.

13. The government properly separated information in debt disclosures related to direct borrowings and direct placements of debt from other debt and disclosed any unused lines of credit, collateral pledged to secure debt, terms in the debt agreements related to significant default or termination events with finance-related consequences and significant subjective acceleration clauses in accordance with GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placement s.

14. Components of net position (net investment in capital assets, restricted, and unrestricted) and classifications of fund balance (nonspendable, restricted, committed, assigned, and unassigned) are properly classified and, if applicable, approved.

15. The SVCE policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available and appropriately disclosed and that net position is properly recognized under the policy.

16. We have no direct or indirect legal or moral obligation for any debt of any organization, public or private, that is not disclosed in the financial statements.

17. We have complied with all aspects of laws, regulations and provisions of contracts and agreements that would have a material effect on the financial statements in the event of noncompliance.

18. We have no knowledge of any uncorrected misstatements in the financial statements.

Information Provided

19. We have provided you with:
a. Access to all information of which we are aware that is relevant to the preparation and fair presentation of the basic financial statements such as records, documentation and other matters. b. Additional information that you have requested from us for the purpose of the audit. c. Unrestricted access to persons within SVCE from whom you determined it necessary to obtain audit evidence.
d. Minutes of the meetings of the governing board and committees, or summaries of actions of recent meetings for which minutes have not yet been prepared.

20. All transactions have been recorded in the accounting records and are reflected in the basic financial statements.

DocusignEnvelopeID:2E9EBB2B-429C-4F28-B006-7D240DB733E6 Item 3
Attachment 3
SILICON VALLEY \3/ CLEAN ENERGY
333 W El Camino Real, Suite 330 | Sunnyvale, CA 94087 | 1-844-474-SVCE (7823) | SVCleanEnergy.org Kosmatka Donnelly & Co., LLP
January 31, 2025

Campbell | Cupertino | Gilroy | Los Altos | Los Altos Hills | Los Gatos | Milpitas | Monte Sereno | Morgan Hill | Mountain View | Saratoga | Sunnyvale | Unincorporated Santa Clara County

21. We have disclosed to you the results of our assessment of risk that the basic financial statements may be materially misstated as a result of fraud.

22. It is our responsibility to establish and maintain internal control over financial reporting. One of the components of internal control is risk assessment. We hereby represent that our risk assessment process includes identification and assessment of risks of material misstatement due to fraud.

23. We have no knowledge of allegations of fraud or suspected fraud affecting SVCE’s basic financial statements involving:
a. Management.
b. Employees who have significant roles in internal control. c. Others where the fraud could have a material effect on the basic financial statements.

24. We have no knowledge of any allegations of fraud or suspected fraud affecting SVCE’s basic financial statements received in communications from employees, former employees, analysts, regulators, short sellers or others.

25. We have no knowledge of noncompliance or suspected noncompliance with laws and regulations.

26. We have disclosed to you all known actual or possible litigation, claims or assessments; unasserted claims or assessments whose effects should be considered when preparing the financial statements.

27. We have disclosed to you the identity of all of SVCE’s related parties and all the related-party relationships and transactions of which we are aware.

28. We are aware of no significant deficiencies in internal control over financial reporting, including significant deficiencies or material weaknesses, in the design or operation of internal controls that could adversely affect SVCE’s ability to record, process, summarize and report financial data.

29. There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices.

30. It is our responsibility to inform you of all current and potential affiliates of SVCE as defined by the “State and Local Government Client Affiliates” interpretation (ET sec. 1.224.020). Financial interests in, and other relationships with, affiliates of SVCE may create threats to independence. We have:
a. Provided you with all information we are aware of with respect to current and potential affiliates, including degree of influence assessments and materiality assessments. b. Notified you of all changes to relevant considerations that may impact our determination of the existence of current or potential affiliates involving (i) changes in the determination of the materiality of an entity to SVCE’s financial statements as a whole, (ii) the level of influence SVCE has over an entity’s financial reporting process or (iii) the level of control or influence SVCE or a potential or current affiliate has over an investee that is not trivial or clearly inconsequential, sufficiently in advance of their effective dates to enable SVCE and Kosmatka Donnelly & Co., LLP DocusignEnvelopeID:2E9EBB2B-429C-4F28-B006-7D240DB733E6 Item 3
Attachment 3
SILICON VALLEY \3/ CLEAN ENERGY
333 W El Camino Real, Suite 330 | Sunnyvale, CA 94087 | 1-844-474-SVCE (7823) | SVCleanEnergy.org Kosmatka Donnelly & Co., LLP
January 31, 2025

Campbell | Cupertino | Gilroy | Los Altos | Los Altos Hills | Los Gatos | Milpitas | Monte Sereno | Morgan Hill | Mountain View | Saratoga | Sunnyvale | Unincorporated Santa Clara County to identify and eliminate potential impermissible services and relationships between Kosmatka Donnelly & Co., LLP.
c. Made you aware, to the best of our knowledge and belief, of any nonaudit services that SVCE or any of our affiliates has engaged Kosmatka Donnelly & Co., LLP.

31. During the course of your audit, you may have accumulated records containing data that should be reflected in our books and records. All such data have been so reflected. Accordingly, copies of such records in your possession are no longer needed by us.

32. There are no:
a. Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations. b. Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB 62.
c. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB

62. Required Supplementary Information

33. With respect to the Management’s Discussion and Analysis presented as required by GAAP and the Governmental Accounting Standards Board to supplement the basic financial statements:
a. We acknowledge our responsibility for the presentation of such required supplementary information.
b. We believe such required supplementary information is measured and presented in accordance with guidelines prescribed by U.S. GAAP.
c. The methods of measurement or presentation have not changed from those used in the prior period.

Amrit Singh, Chief Financial Officer & Director of Administrative Services Silicon Valley Clean Energy Authority
Mike Maher, Accountant
DocusignEnvelopeID:2E9EBB2B-429C-4F28-B006-7D240DB733E6 Item 3
Attachment 3
SILICON VALLEY <3/ CLEAN ENERGY
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Staff Report – Item 4
Item 4: Adopt Resolution Approving the Mid-Year 2024-25 Adjusted Operating Budget From: Monica Padilla, CEO
Prepared by: Amrit Singh, CFO and Director of Administrative Services Scott Wrigglesworth, Director of Risk and Analytics
Karen Chang, Manager of Finance
Date: 3/12/2025

RECOMMENDATION
Staff recommends that the Silicon Valley Clean Energy (SVCE) Board of Directors (Board) adopt Resolution 2025-08, approving the Mid-year 2024-2025 (MY 2025)1 Adjusted Operating Budget that projects depositing $98.1 million into the reserves and grants the Chief Executive Officer (CEO) the authority to issue a one-time customer bill credit that, in the aggregate, will amount to no more than $35 million.

FINANCE AND ADMINISTRATION COMMITTEE RECOMMENDATION
Staff presented the proposed MY 2025 Adjusted Operating Budget to the Finance and Administration Committee (F&A Committee) at its meeting on February 26th, 2025. The F&A Committee reviewed the staff’s proposed budget and engaged in robust discussions to understand the budget, including drivers contributing to the increased net contribution, changes to reserve projections, future risks posed by declining prices, and requests for five additional positions. The F&A Committee unanimously supported staff’s request for additional positions and noted that it was an opportune time for hiring given general labor market conditions and agreed with staff to build organizational resiliency and continue bringing in-house some core functions that are currently outsourced.

The F&A Committee also reviewed staff’s proposed approaches to returning some additional funds directly to customers on top of the existing 4% discount relative to comparable PG&E generation rates. The F&A Committee supported either lowering the SVCE rate such that customers see a 10% discount relative to the comparable PG&E generation rates or finding a way to disburse equivalent funds to customers through a bill credit(s) approach. The F&A Committee instructed staff to propose the discount to the Board of Directors either as a volumetric rate discount or through bill credit(s), based on staff’s consideration of F&A Committee feedback, expertise, and consideration of logistical simplicity. After discussing the proposal with staff, the F&A Committee unanimously recommended that the Board of Directors approve the proposed MY 2025 Adjusted Operating Budget with adjustments for providing customers with the return of additional funds.

BACKGROUND
The Board first adopted the annual budget for the fiscal year 2024-25 (FY25) at the September 11th, 2024, meeting. Because of great uncertainty regarding PG&E’s January 2025 rate changes, the adopted budget was factored in with conservative Market Price Benchmark (MPBs) assumptions, and staff committed to updating the budget in December 2024. At the December 11
th
, 2024 Board meeting, the Board approved the adjusted
budget to reflect the updated market and regulatory information regarding PG&E’s 2025 generation rate 1 The fiscal year 2024-25 started on October 1, 2024, and ends on September 30, 2025.

Item 4
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 4 Agenda Date: 3/12/2025

changes and Power Charge Indifference Adjustment2 (PCIA) charges, effective January 1st, 2025. Due to an improved financial outlook, the Board adopted the adjusted budget that maintained a 4% general customer discount rate relative to comparable PG&E generation rates, provided an additional $0.96 million towards bill credits for low-income (CARE/FERA) customers such that the bill credit was equivalent in total dollars to a 1% rate discount for all customers, and transferred an additional $1.7 million to the Program Fund to account for improved revenue projections.

At midyear, staff is updating the budget to account for energy supply expenses using the latest market price data and portfolio positions, revenue estimations to reflect the final rate changes that went into effect starting January 1st, 2025, additional return of funds to customers, and other minor adjustments and projected increases in operating expenses and investment income.

ANALYSIS & DISCUSSION
The MY 2025 Adjusted Operating Budget is balanced and presents SVCE in stable financial condition.

The projected available balance for reserves of $98.1 million is an increase of $1.3 million from the $96.8 million presented in the December 2024 adjusted FY25 Budget. The improvement in contribution to reserves primarily results from decreased energy costs resulting from lower realized and forward energy, renewable portfolio standard (RPS) and resource adequacy (RA) market prices and changes to the power supply portfolio positions, an improvement in SVCE margins from the California Public Utilities Commission’s (CPUC) adoption of the 2025 PG&E generation and PCIA rates, slightly increased investment income, and lower capital expenses as a result of not increasing and updating the current office space. Other minor revenue adjustments, power supply portfolio position updates, additional return of funds to customers, and increases in operating expenses from additional staffing, professional services, marketing, and general and administrative expenses partially offset these improvements.

The table below illustrates the $1.3 million increase:

Description Variance Mid-Year Budget vs.

December 2024 Adjusted Budget
Revenues -$2.98M
Power Supply Cost -$40.6M
Other Operating Expenses +$2.8M
Investment Income +$0.5M
Capital Transfers -$0.95M
Additional One-Time Bill Credit -$35.0M
Reserve Balance +$1.3M
Energy Revenues
Energy revenues are slightly lower by about $2.98 million from the December adjusted budget. While CPUC’s final adopted PG&E generation rates and PCIA charges improved overall SVCE’s margins by about 0.5% (to

13.55 ¢/kWh) or about $2 million, as shown in the illustration below, adjustments for the franchise fee and decrease in actual realized sales from October to December 2024 due to mild weather more than offset the increase.
2 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
Agenda Item: 4 Agenda Date: 3/12/2025

Power Supply Expenses
Power supply expenses have decreased significantly by about $41 million since the December update. The reduction primarily results from much lower market prices for meeting SVCE’s load obligations and staff’s reduced assessment of RA resources needed to comply with the newly implemented RA market framework.

The market prices, including actual/observed prices for October 2024 to December 2024 and forward prices for the remaining forecast period, for energy and RPS have declined significantly. Since the December 2024 budget update, the FY25 energy prices have dropped about 13%, and the 5-year average energy prices have dropped by about 9%. FY25 RPS prices fell by about 45%, and the 5-year average dropped by about 30% as compliance period 4 (January 2021 to December 2024) ended in December 2024. The recent record run-up in RPS prices seems partly driven by load-serving entities' rush to meet RPS period 4 compliance obligations3.

The drop in RPS price does not contribute to lower power supply costs for FY25 as it does for the remainder of the 5-year forecast period because SVCE has already procured its RPS need for the current fiscal year. While RA prices for FY25 have not changed, the 5-year average has dropped about 11%. Market price changes, along with updated portfolio positions, lower retail realized retail sales volume of about 2% for October 2024 to December 2024 due to mild weather, and other minor reductions in California Independent System Operator (CAISO) charges, contribute to about $17.5 million decrease in power supply expenses.

The remaining reduction of about $23.5 million results from a decrease in staff’s assessment of additional resources needed to meet RA obligations from the implementation of the new Slice of Day (SOD) RA market in 2025, where RA obligations moved from a simple monthly target to a 12-month 24-hour target. Under SOD, load serving entities such as SVCE need to demonstrate that they have the resources (capacity) to meet CAISO’s worst day of the month or the day with the highest resource need. Now that the staff has a better understanding of the new market framework and has successfully met the initial requirements, staff has reassessed the resources needed to meet new compliance requirements, which has led to a significant reduction in the need for additional RA resources.
3 For compliance period 4, load serving entities had to meet 40% of their load from RPS resources. SVCE exceeded its compliance period 4 obligation, serving 44% of its load with RPS resources.

Item 4
PG&E Gen Rate:

PG&E Gen Rate: 15.17 C/kWh

14.76 C/kWh
4% SVCE discount
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One-time Bill Credit for All Eligible Customers
Based on the F&A Committee’s feedback on staff’s proposal for returning additional funds to customers, the proposed budget recommends that the Board provide a one-time bill credit to all eligible4 customers. The total amount of these bill credits will be targeted to be about $33 million. The main alternative for disbursing this money discussed with the F&A Committee is to reduce SVCE’s rate – this $33 million would be equivalent5 on average to SVCE moving from the current 4% discount to a 10% volumetric discount relative to comparable PG&E generation rates. As explained later in this report, the budgeted amount for these bill credits is $35 million to account for the fluctuations in customer accounts after the per-account credit is calculated.

Staff proposed the additional discount based on a forecast showing SVCE exceeding its target days of cash on hand (DCOH) of 350 at the end of the current fiscal year and remaining at or close to the 350 target DCOH over the remaining 5-year forecast period, as illustrated in the chart below that includes the expense of the $35 million for the bill credits. With declining energy prices, future year customer rates are expected to be lower, as illustrated in the table below. As a result, rather than setting aside additional funds in the Clean Energy Community fund,6 where a portion is saved towards future customer rate relief, staff recommends that customers receive the rate relief this year.

The F&A Committee agreed with staff’s proposal to provide customers with additional bill relief this year and asked the staff to recommend to the Board either moving to a 10% volumetric rate discount relative to the comparable PG&E rates or issuing checks or bill credit(s) to customers. The F&A Committee and staff believe that a one-time return to customers will be the more impactful approach – even moving to a 10% discount relative to PG&E’s generation rate may not be very apparent to customers, given that the generation charges 4 Customers under any custom pricing arrangements are not eligible for these bill credits, which is consistent with the terms of those arrangements.
5 The calculations are based on a forecast of 2025 revenues, and the actual amount may vary from $33 million based on fluctuations in actual customer usage relative to the forecast. 6 The Clean Energy Community Fund was discussed with the Board at the December 11th, 2024, meeting and is separately discussed in Item 1i on the March Board of Directors meeting Consent Calendar. 396
350 345 361 341
0 100
200
300
400
500
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Days
Days Cash on Hand (DCOH)
DCOH (Excl. Unspent Earmarked Funds)* Max Reserves
Target Reserves Min Reserves
* Earmarked funds are unspent SVCE Program Funds and Building Funds. 2025 2026 2027 2028 2029 2030
Forecast Rates* 15.17 10.45 11.96 12.16 12.22 12.49
YoY Change -31.2% 14.5% 1.6% 0.5% 2.2%
* Customer effective rates before applying any discounts Item 4
Agenda Item: 4 Agenda Date: 3/12/2025

make up a fraction of the total electricity bill. Consolidating all those smaller monthly reductions into a single, one-time payment will increase the likelihood of customer awareness and attention to the value SVCE is providing. Upon further discussion, staff determined that deploying the funds through checks to all customers would be logistically challenging and introduce a myriad of issues that could be sidestepped by deploying via the bills. To help ensure that recipients notice the credit on their bills, staff intends to run a campaign using direct mail and other channels. Staff recommends issuing the one-time bill credit during the August billing cycle because the bill credit would more meaningfully offset the costs of the month when most customers receive their highest electricity bills.

Because of the normal fluctuations in the number of customer accounts and the need to set the bill credit amounts at the start of the billing cycle, staff will not know the exact expenditure until after the bill credits are issued. To account for this fluctuation, staff requests an additional $2 million above the targeted disbursement of about $33 million. The remaining funds at the end of the billing cycle will be transferred to the operating reserves.

Shortly before the August billing cycle, staff will compute the bill credits for each customer segment based on share of total SVCE load, such that the credits sent to every customer add up to the targeted disbursement of about $33 million. The table below illustrates the bill credits for each service agreement or customer meter within a customer class if calculated today. As illustrated below, every account within a segment would receive the same flat bill credit (e.g., every Residential customer account would receive a $48 bill credit) rather than varying within the segment based on each customer’s usage – this is to simplify the administration of the credits and to make the communication around the credits consistent (e.g., otherwise SVCE’s outreach on the credit will have to reflect a variable amount, and word-of-mouth between neighbors could be frustrating to some who received a lower amount than the person next door). However, for non-residential customers, instead of providing each customer within a class the same flat amount, staff may instead (based on additional analyses) provide a bill credit that is aligned with the customer’s proportionate share of the historical usage of that class.

Segment ILLUSTRATIVE Bill Credit Amount per
Service Agreement ID (SAID)
Residential $48
Small Commercial $165
Medium Commercial $2,200
Large Commercial $7,500
Agricultural Sm/Med $110
Agricultural Large $1,200
Business Electric Vehicles $9,600
Standby $3,700
Street Lighting $80
Traffic Control $43
The customer designation illustrated above may change or be further delineated based on additional staff analysis of customers and customer classes.

Operating Expenses
Operating expenses have increased by about $2.85 million from December 2024's adjusted budget. The increase in projected operating expenses is mainly comprised of costs associated with increased staffing.

About $1.42 million of the $2.85 million increase in operating expenses is associated with the request for five new positions across the organization. These positions are described in the next section of this report. These Item 4
Agenda Item: 4 Agenda Date: 3/12/2025

positions will enable the expansion of customer programs and cost-effectively build bench strength in various parts of the organization. The agency has successfully filled key roles in its current phase of operations. Now, the focus is to ensure that there’s staffing at different levels behind critical positions to enhance business continuity and to efficiently create a learning and development opportunity for skilled employees to move into advanced roles, which also reduces some costly external sourcing of key functions and promotes retention of critical institutional knowledge.

The professional services increase by $0.66 million. Some cost increases are due to additional vendor support and expertise needed to comply with various tax employment requirements for out-of-state employees, additional support on decarbonization initiatives, and some increases in legislative and legal consulting services. In addition, SVCE currently has business data in various systems or spreadsheets. To reduce operating risks, enhance data security, and automate costly and manual time-consuming data collection and processing, SVCE is creating an integrated organization-wide central data repository, internally called RADaR (Repository for Analytics, Data and Reporting). This project will also automate the preparation of some of the recurring monthly and quarterly reports and provide greater data-driven insights for making key business decisions. SVCE plans to source a vendor to help develop the central data repository. The RADaR project is budgeted at $0.8 million. There were also decreases due to the expiration of some contracts, which offset some of these increases, resulting in a net increase of $0.66 million.

There is a slight increase of $0.27 million in marketing and promotions to implement Board-approved educational non-profit grants and scholarships and additional overall marketing outreach materials to promote SVCE services.

Staff renewed the Data management services agreement, and final costs were lower by about $0.19 million than the amount included in the December budget update.

The General Administration (G&A) costs increased by about $0.69 million due to additional administrative costs associated with the request for five new positions, increases in membership renewals to professional trade associations, and additional insurance costs due to the new office building purchase.

While not an increase in cost, $1.5 million of the costs from the professional services category were re-categorized to G&A to align with the accounting cost categories.

Additional Staffing
In the Customer Success department, staff requests two new positions. The first is an Energy Lead to take charge of the upcoming demand flex program (deploying and controlling batteries, HVAC, EVs, etc.), which requires specific expertise and increases the department’s workload. This new position will also increase the capacity to engage with various dynamic rate pilots and implement CPUC-required load management standards. Without this additional support, other programs will need to be deprioritized.

The second role identified to support the Customer Success department is a Senior Energy Specialist. For staff to pursue the ability to administer energy efficiency program funding from the state, a skilled resource to manage the application and ongoing reporting for the funds is required to access and deploy significant new funding sources (if pursued, this funding would also eventually be able to pay for this resource).

In the Regulatory, Policy, Planning, and Legislative (RPPL) department, an additional Resource Planner is requested. Bringing more of SVCE’s energy resource planning in-house will improve efficiency and effectiveness for long-term planning, strategic policy development, and gaining long-term market insights.

Bringing more core resource planning functions in-house is more cost-effective. It provides a better approach to this critical function because internal staff will retain and use the institutional knowledge needed for this strategic function.

Item 4
Agenda Item: 4 Agenda Date: 3/12/2025

SVCE has recently consolidated Data and Analytics functions across the organization. To achieve business maturity goals (what staff calls “SVCE 3.0”) in data and modeling, SVCE requires expanded staffing at a lower level to ensure existing data needs are met while allowing experienced staff to meet new data and modeling goals. The department requests an Associate Data Scientist to address the continued need for data requests, data analyses, and quantitative energy portfolio risk analyses. Without this resource, higher-level staff will continue to be inundated with basic data query and analysis work and would be unable to address the more challenging work associated with building more efficient automated work processes and addressing sophisticated energy portfolio risk analytics. While consultants are available for project work at a higher level, having senior staff work toward these goals is more cost-effective, promotes staff development, enhances business continuity through cross-training, and enables retention of core institutional knowledge.

The Power Resources team requests a rotational Power Program Analyst to promote long-term business continuity while enabling existing staff to develop and reduce reliance on some externally sourced core functions, for example, in the area of portfolio valuation. The Power Program Analyst will be trained to support front, middle, back office, and regulatory areas, allowing for cross-training, coverage, and succession planning in key roles. After the two-year training period, the incumbent can move into any of the four functions. The cost of turnover (from a recruitment/consultant/training perspective) and the risks associated with future promotion, attrition, and other staff movement will be mitigated by creating this essential role.

During fiscal year 2025, staff assessed the agency’s overall functional needs. The assessment resulted in the realignment of several departments and the identification of the need to add the aforementioned five positions. The table below is a summary of full-time equivalent (FTE) positions.

Budget Process Existing FTEs New FTEs Requested Total FTEs FY 2025 62 0 62 (3 vacancies)
Mid-Year 2025 62 5 67 (8 vacancies)
In addition to the FTE positions, SVCE employs three part-time employees and six Climate Corp Fellows and/or part-time interns.

Programs Budget
SVCE will continue incorporating projected Decarbonization Programs spending over the 5-year forecast into the reserve balance projections. For the current fiscal year, Program spending is projected to be $19.8 million, with an additional spend of $620 thousand from the Customer Relief and Community Resilience Program (CRCR)
7 Fund, and $300 thousand in E-Elec (all electric) Fund, the all-electric rate discounts.

Non-Operating Revenues
Investment income is projected to increase by $0.5 million, resulting from higher returns from SVCE’s investments.

STRATEGIC PLAN
The recommendation supports all of the Board's adopted strategic plan goals. Specifically, this budget update supports SVCE Strategic Plan Goal 6 – “Maintain healthy financial position; avoid failures in the management of market risk, credit risk, liquidity risk, operational risks, and enterprise risks.” The requested positions align with Strategic Focus Area 5 – Attract and Retain Employees. 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: 3/12/2025

ALTERNATIVE
Staff is open to feedback and suggestions from the Board. At a strategic level, the Board can change the discount to PG&E, reduce the power supply portfolio's carbon-free and/or renewable percentages, and cut the expenditure on the Decarbonization Programs.

Staff does not recommend any specific reductions given a sufficient projected reserve balance that maintains SVCE’s stable financial condition.

FISCAL IMPACT
The MY 2025 Adjusted Operating Budget includes $523.5 million in revenues and $425.5 million in expenses, non-operating revenues, and transfers, contributing to reserves of $98.1 million.

ATTACHMENT

1. MY 2024-25 Adjusted Operating Budget

2. Resolution 2025-08 Approving the Mid-Year 2024-2025 Adjusted Budget for SVCE Item 4
Attachment: MY 2024-25 Adjusted Operating Budget

SILICON VALLEY CLEAN ENERGY
FY 2024-25 OPERATING BUDGET
($ in thousands)
FY 2024-25

MID-YEAR

ADJUSTED

DESCRIPTION BUDGET

ENERGY REVENUES
Energy Sales 521,650
Green Prime 1,884
TOTAL ENERGY REVENUES 523,534

ENERGY EXPENSES
Power Supply 349,478
OPERATING MARGIN 174,056

OPERATING EXPENSES
Data Management 3,549
PG&E Fees 1,516
Salaries and Retirement 18,805
Professional Services 7,797
Marketing & Promotions 1,885
General & Administrative 5,733
TOTAL OPERATING EXPENSES 39,284
OPERATING INCOME (LOSS) 134,771

NON-OPERATING REVENUES
Interest Income 19,756
TOTAL NON-OPERATING REVENUES 19,756

NON-OPERATING EXPENSES
Financing 12
TOTAL NON-OPERATING EXPENSES 12
TOTAL NON-OPERATING INCOME (EXPENSES) 19,743
CHANGE IN NET POSITION 154,515

CAPITAL EXPENDITURES, INTERFUND

TRANSFERS & OTHER
Capital Outlay 50
Program Fund 10,530
Nuclear Allocation 3,708
Customer Bill Relief (Existing CARE/FERA) 5,370
Additional One-Time Bill Credit for All Customers 35,000 Hanford Emissions Mitigation Fund 1,800
Other

TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER 56,458
BALANCE AVAILABLE FOR RESERVES 98,057
Item 4
Attachment 1
1 RESOLUTION 2025-08

SILICON VALLEY CLEAN ENERGY AUTHORITY RESOLUTION
NO. 2025-08

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SILICON VALLEY CLEAN ENERGY AUTHORITY TO APPROVE THE MID-YEAR 2024-2025

ADJUSTED BUDGET FOR SILICON VALLEY CLEAN ENERGY
WHEREAS, the Silicon Valley Clean Energy Authority (“Authority”) was formed on March 31, 2016, pursuant to a Joint Powers Agreement to study, promote, develop, conduct, operate, and manage energy programs in Santa Clara County; and WHEREAS, the Authority operates on a fiscal year budget cycle from October 1st through September 30th;
WHEREAS, a mid-year adjusted version of the Authority’s budget for each fiscal year is generally presented to the Board of Directors at the midpoint of the fiscal year in March;
WHEREAS, staff has incorporated direction from recent Board and Finance and Administration Committee discussions around rates, programs, and customer relief and has prepared an adjusted budget, set forth in Exhibit A (the “Adjusted Budget”); NOW THEREFORE, the Board of Directors of the Silicon Valley Clean Energy Authority does hereby resolve that:

1. The foregoing recitals are true and correct.

2. The Board of Directors hereby approves and adopts the Mid-Year Adjusted Budget, as set forth in Exhibit A, as the Authority’s fiscal year 2024-2025 budget.

PASSED AND ADOPTED this 12
th day of March 2025, by the following vote:

JURISDICTION NAME AYE NO ABSTAIN ABSENT
City of Campbell Director Scozzola
City of Cupertino Director Fruen
City of Gilroy Director Hilton
City of Los Altos Director Meadows
Town of Los Altos Hills Director Tyson
Town of Los Gatos Director Rennie
City of Milpitas Director Barbadillo
City of Monte Sereno Director Mekechuk
City of Morgan Hill Director Martinez Beltran
City of Mountain View Director Showalter
County of Santa Clara Director Lee
Item 4
Attachment 2
2 RESOLUTION 2025-08
City of Saratoga Director Walia
City of Sunnyvale Director Klein
Chair
ATTEST:

Andrea Pizano, Board Secretary
Exhibit A: Mid-Year Adjusted Budget
Item 4
Attachment 2
Exhibit A: MY 2024-25 Adjusted Operating Budget

SILICON VALLEY CLEAN ENERGY
FY 2024-25 OPERATING BUDGET
($ in thousands)
FY 2024-25

MID-YEAR

ADJUSTED

DESCRIPTION BUDGET

ENERGY REVENUES
Energy Sales 521,650
Green Prime 1,884
TOTAL ENERGY REVENUES 523,534

ENERGY EXPENSES
Power Supply 349,478
OPERATING MARGIN 174,056

OPERATING EXPENSES
Data Management 3,549
PG&E Fees 1,516
Salaries and Retirement 18,805
Professional Services 7,797
Marketing & Promotions 1,885
General & Administrative 5,733
TOTAL OPERATING EXPENSES 39,284
OPERATING INCOME (LOSS) 134,771

NON-OPERATING REVENUES
Interest Income 19,756
TOTAL NON-OPERATING REVENUES 19,756

NON-OPERATING EXPENSES
Financing 12
TOTAL NON-OPERATING EXPENSES 12
TOTAL NON-OPERATING INCOME (EXPENSES) 19,743
CHANGE IN NET POSITION 154,515

CAPITAL EXPENDITURES, INTERFUND

TRANSFERS & OTHER
Capital Outlay 50
Program Fund 10,530
Nuclear Allocation 3,708
Customer Bill Relief (Existing CARE/FERA) 5,370
Additional One-Time Bill Credit for All Customers 35,000 Hanford Emissions Mitigation Fund 1,800
Other

TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER 56,458
BALANCE AVAILABLE FOR RESERVES 98,057
Item 4
Attachment 2
Exhibit A

Staff Report – Item 5
Item 5: Affordability Strategic Focus Area Update
From: Monica Padilla, CEO
Prepared by: Justin Zagunis, Director of Customer Success Date: 3/12/2025

REQUEST
In Sept. 2024 the Silicon Valley Clean Energy (SVCE) Board of Directors (Board) adopted affordability as an SVCE FY 24’-25’ strategic focus area. Staff will provide an informational presentation on the activities staff have identified under this focus area to pursue. This presentation encompasses the categories of energy- and rate-related education, legislative and regulatory advocacy, and rate-setting principles and programs to address the strategic focus area. The presentation includes a recap of some underlying rate elements and affordability challenges for SVCE customers from what staff presented to the Board at the Affordability Study Session in August 2024. The presentation includes work that has already been completed, is in progress, is in the planning phase, and is being explored for the immediate future.

This an informational discussion item. No action requested.

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

Item 5
SILICON VALLEY \3/ CLEAN ENERGY