• Subtitle
New SV Clean Energy
PowerPoint Template
Item 2
PRESENTATION
Prepay Transaction
Request for Approval
SILICON VALLEY <3/ CLEAN ENERGY
Amrit Singh
Finance and Administration Committee
August 4, 2025
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Item 2
PRESENTATION
Purpose
1. 2.
m
Main Areas of Discussion
Action: Recommend the Board
Authorize CEO to Execute or
Approve Prepay Agreements
3. 4.
Recap of Prepay Goal and
Structure
Board-authorized parameters for
execution of the deal
Next Steps
Appendix
Summary of
Transactional
Documents
Estimated Fees
Details of Prior Prepays and Cost
Breakdown
Overview of Prepay Structure and
Background Information
Goal
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How
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• California Community Financing
Authority (CCCFA)
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Minimal Risks
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Item 2
PRESENTATION
Recap of Prepay Goal and Structure
Substantial savings with minimal risks
Reduce the cost of power
purchases by leveraging SVCE’s
ability to fund low-cost tax-exempt
debt
Gain competitive advantage
relative to Investor Owned Utilities
(lOUs)
Benefit from the spread between taxable and tax-exempt
interest rates
Use of financially engineered prepay structure*
Bonds not guaranteed by SVCE or
Bonds secured by the contractual rights and transaction cashflows Seasoned team of professionals helps guide, negotiate, and structure the transactions.
"Refer to the appendix for a more detailed overview of prepay structure Fees (except rating agency) are contingent on the execution of the deal and paid from the bond proceeds Bonds issued are non-recourse to SVCE
SILICON VALLEY
CLEAN ENERGY 3
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• Execution Contingent on:
• Aggregate principal amount of bonds will not
exceed $1.25 billion
• Bonds issued by California Community Financing
Authority (CCCFA) are not guaranteed
obligations of SVCE
• Overall energy savings to SVCE shall be at least
8 percent during the initial term of the bonds
Item 2
PRESENTATION
' Request
Recommend the Board Authorize the CEO to Execute Prepay Transactional Agreements Contingent on Board-Authorized Parameters
Transaction expected to cover about 12%
of SVCE’s load and combined with first
three deals covers "51% of load
Actual realized discount will depend on
the spread between taxable and tax-exempt rates (net of transaction costs) Savings expected to be about $4 to $6
million during the initial term of the bonds
30-year bonds will reset after the initial
period expected to be 5-10 years and
discount on future reset periods will
depend on the then prevailing market
conditions.
Repricing agreement will set a minimum
discount threshold for future bond reset
periods, expected to be at energy savings
of about 4%.
4 •
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Item 2
PRESENTATION
O Next Steps
Seek SVCE Board of Directors Approval on August 13
Seek California Community Choice Financing Authority
(CCCFA) Board Approval thereafter
Target bond issuance for August/September 2025. Timing
will depend on market conditions.
Staff requests the Finance and Administration Committee recommend that the Board of Directors adopt a resolution authorizing the CEO to execute the Power Supply Contract with the California Community Choice Financing Authority (CCCFA) and execute or approve the related supporting agreements to enable SVCE to enter an approximately 30-year energy prepayment transaction with authority to make any minor clarifying modifications to the contracts and agreements as necessary that do not change the intent or economics of the transaction. Staff also requests the Finance and Administration Committee recommend the Board authorize the CEO to enter into agreements with credit rating agencies, generally, to provide a credit rating for the bonds.
The Board’s authorization will be subject to the following parameters.
Item 2
PRESENTATION
Committee Recommendation
1. The Bonds, issued by CCCFA, will not be guaranteed obligations of SVCE but will be limited obligations of CCCFA payable solely from the revenues and other amounts pledged under the Indenture as the Trust Estate, including amounts owed by SVCE under the Power Supply Contract.
2. The aggregate principal amount of the Bonds shall not exceed $1,250,000,000.
3. The energy savings to SVCE under the Power Supply Contract for the initial Bond Reset Period, including the Annual Refund (as defined in the Power Supply Contract), shall be at least 8 percent.
4. The energy Service Revenue fee in the transaction shall not exceed $1.10 per MWh.
5. The commodity swap counterparty fee in the transaction shall not exceed $0.50 per MWh.
6. If any floating rate bonds are issued, Morgan Stanley shall charge no more than six basis points on the interest rate swap spread to mid-market.
7. The 8 percent saving is relative to a fixed price for energy deliveries under the power supply contract that will be established at the time of the pricing of the bonds using available energy market prices and other information that will be reviewed and approved by SVCE’s financial advisor, PFM Financial Advisors LLC. 6 Item 2
PRESENTATION
Thank you! / Questions?
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Item 2
PRESENTATION
Summary of Transaction Documents
Agreements that will be executed by SVCE:
1. Power Supply Contract
Between SVCE and CCCFA
Provides for the sale of clean energy from CCCFA to SVCE
2. Assigned PPA Payments Custodial Agreement
Between SVCE, CCCFA, Morgan Stanley, MSCG and the Custodian Bank Specifies the terms on handling cashflows among the parties and making required payments to the Energy/PPA Supplier
3. Form of Limited Assignment Agreement
Between SVCE, Morgan Stanley, and Third-party Energy Supplier Details the terms of partially assigning SVCE’s energy contracts to Morgan Stanley Future PPAs will include this agreement
4. Letter Agreement Regarding PPA Assignments
Between SVCE, CCCFA, MSCG, and the Prepaid Supplier
Details the terms of assigning PPAs that SVCE has with a current of future energy Supplier
5. Project Administration Agreement
Between SVCE and CCCFA.
Sets the terms for SVCE to act on behalf of the CCCFA such as scheduling for the energy.
6. Memorandum of Understanding
Between SVCE, Morgan Stanley and CCCFA.
Indemnifies CCCFA against certain ratings fees should the transaction not close •
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Item 2
PRESENTATION
4. Summary of Transaction Documents - Cont’d
Agreements Executed by CCCFA
1. Trust Indenture
Between CCCFA and the Trustee
Sets forth the terms of bond issuance, the rights of bondholders, and secures the cashflows of CCCFA to ensure principal and interest payments to the bondholders
2. Prepaid Agreement
Between CCCFA and Morgan Stanley
Details the terms of the prepayment by CCCFA to Morgan Stanley and the flow of energy from Morgan Stanley to CCCFA
3. Re-pricing Agreement
Between CCCFA and Morgan Stanley
Sets the terms for remarketing and repricing of bonds at future bond repricing periods and the terms for calculation of future energy price discount that will be offered to SVCE.
4. Commodity Swap Agreement and Related Custodial Agreement Between CCCFA and Swap Counterparty (Morgan Stanley also executes a corresponding agreement with the same swap counterparty)
Converts any index payments by SVCE (variable or floating price) to a fixed price 9 •
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Item 2
PRESENTATION
4. Summary of Transaction Documents - Cont’d
Other Document
Preliminary Official Statement
Used to market the bonds
Provides information on the prepayment transaction including the key terms
Includes background information on SVCE
Formation of SVCE, service area, customers, and sources of clean energy Other information to inform bond holders on the financial and operational strength of the organization
10 Estimated Summary of Transaction Cost
($000)
85 Item 2
PRESENTATION
Firm Expected Cost ($000)
Bond and Tax Counsel: Ballard Spahr
Credit Rating: [Moody’s Investors Service/S&P Global Ratings] Issuer’s Counsel and Disclosure Counsel: Chapman & Cutler LLP Municipal Advisor: PFM Financial Advisors LLC
Swap Advisor: PFM Swap Advisors LLC
Investment Advisor
Trustee: Bank of New York (BNY)
Trustee Counsel: NY Counsel
CCCFA JPA Administrative Fee
Green Bond Second Party Opinion (Kestrel Verifiers)
Printing Cost
Contingency/Other
Total COI
Morgan Stanley Underwriting
Underwriters Counsel
Miscellaneous
Total
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Item 2
PRESENTATION
Leverage the Existing Prepay Structure
Benefit from several years of effort to execute prior three transactions Replicate the third transaction’s structure with the same counterparties plus addition of Special Purpose Vehicle (“SPV”) model to diversify third party funding recipient risk Other CCAs have taken or plan to take advantage of market opportunities to execute Prepays Since the execution of our first Prepay in partnership with Ava Community Energy:
3CE, Ava, CPA, MCE, Pioneer, SCP, SDCP, VCE have executed prepays Par Value of CCCFA transactions is over $18 Billion and savings of $100 million/year 12 Oct-2020 SVCE Board Authorizes CEO to enter legal service agreements to finalize Prepayment Transaction (Orrick, Herrington & Sutcliffe and Chapman & Cutler LLP)
Nov-2020SVCE provides Prepay Status Report to Finance and Admin Committee Mar-2021SVCE provides Prepay Status Report to Finance and Admin Committee SVCE provides Prepay Status Report to Executive Committee April-2021SVCE Board Approves Participation in the California Community Choice Financing Authority Joint Powers Authority
Aug-2021The Finance and Admin Committee reviews the Prepay Transaction and votes to recommend Board approval. Board authorizes execution of the first Prepay Transaction subject to parameters including that bonds are not obligations of SVCE, size of the bonds, and minimum savings target.
Sept-2021Sept 9, 2021 bonds priced
Jan-2022 Power delivery under Prepay begins
June-2019SVCE presents Prepay Structure Overview Presentation (developed by Goldman Sachs) to Finance and Admin Committee
Aug-2019 SVCE presents a brief verbal update on prepay process to Finance and Admin Committee
Sept-2019SVCE and PFM Financial Advisors provide update on the upcoming RFP process to Finance and Admin Committee
Nov-2019 SVCE provides Prepay RFP Overview to Executive Committee - PFM issues RFP to select Prepay Bank Supplier on behalf of EBCE and SVCE on Nov 12th
- RFP Proposals were due December 5th
Jan-2020 SVCE presents Prepay Structure Overview to Finance and Admin Committee Spring-2020SVCE and EBCE conduct RFP evaluations to select Prepay Bank Supplier July-2020SVCE and EBCE select Morgan Stanley as Prepay Bank Supplier Aug-2020 SVCE provides Prepay Status Report to Finance and Admin Committee Sept-2020SVCE provides Board with Prepay Overview on preparing for a Prepay Transaction
SVCE provides Prepay Status Report to Finance and Admin Committee Item 2
PRESENTATION
Timeline of SVCE’s First Prepay Transaction
Details of the First Prepay Transaction
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Item 2
PRESENTATION
Aggregate Principal Bond Amount $1,234,720,000 (SVCE and EBCE combined) Total Bond Proceeds $1,475,895,642.5 (SVCE and EBCE combined) Municipal Bond Rating A1
Green Certification Designated Green Bonds by Kestrel Verifiers Initial Bond Pricing Period
10 years.
After the initial period, bondswill be repriced per the negotiated repricing agreement, and a new discount will be established based on the then prevailing market conditions.
Final Bond Maturity Date February 1, 2052.
Discount Achieved
$4.38 per MWh, about 10% of the energy cost of SVCE’s 3-year transaction initially assigned into the Prepay.
~$1.9 million per year for SVCE during the initial bond pricing period of ten years.
Energy Volume Supported by Bond Proceeds
109 MW, of which SVCE’s share is 50 MW (about 11% of load) and EBCE’s share is 59 MW for approximately the first ten years of the transaction; after that, the same proportional volume split will be maintained between SVCE and EBCE.
14 First Prepay Transaction Cost Breakdown ($000)
Item 2
PRESENTATION
Bond and Tax Counsel: Orrick, Herrington & Sutcliffe 425 Credit Rating: Moody’s
Issuer’s Counsel and Disclosure Counsel: Chapman & Cutler LLP Municipal Advisor: Public Financial Management
Investment Advisor: Public Financial Management Asset Mgmt Trustee: Bank of New York (BNY)
Trustee Counsel: BNY Counsel
Printing Cost
Contingency/Other
Total COI
Morgan Stanley Underwriting
Total
15 Details of the Second Prepay Transaction
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Item 2
PRESENTATION
Aggregate Principal Bond Amount $841,500,000
Total Bond Proceeds $891,418,648.1
Municipal Bond Rating A1
Green Certification Designated Green Bonds by Kestrel Verifiers Initial Bond Pricing Period
6.5 years.
After the initial period, bondswill be repriced per the negotiated repricing agreement, and a new discount will be established based on the then prevailing market conditions.
Final Bond Maturity Date July 1, 2053.
Discount Achieved
$9.77 per MWh, about 10% of the price established for energy deliveries under the power supply contract.
~$4.7 million per year during the initial bond pricing period of 6.5 years.
Energy Volume Supported by Bond Proceeds
~55 MW (about 12% of load; a slight escalation in the latter half of the transaction)
16 300
232.5
200
175
35 30.9
30 3.3
22 16.8
1,045.5
4,359.2
5,404.7
Second Prepay Transaction Cost Breakdown ($000)
Item 2
PRESENTATION
Cost of Issuance (COI) $ in 000’s
Bond and Tax Counsel: Ballard Spahr
Credit Rating: Moody’s
Issuer’s Counsel and Disclosure Counsel: Chapman & Cutler LLP Municipal Advisor: PFM Financial Advisors LLC
Investment Advisor: PFMAM (US Bank)
Trustee: BNY Mellon Corporate Trust
Trustee Counsel: Ballard Spahr
Printing Cost: ImageMaster
Green Bond Second Party Opinion: Kestrel
Contingency/Other
Total COI
Morgan Stanley Underwriting
Total
17 Details of the Third Prepay Transaction
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Item 2
PRESENTATION
Aggregate Principal Bond Amount $1,101,625,000
Total Bond Proceeds $1,165,919,381.75
Municipal Bond Rating A1
Green Certification Designated Green Bonds by Kestrel Verifiers Initial Bond Pricing Period
~8 years.
After the initial period, bondswill be repriced per the negotiated repricing agreement, and a new discount will be established based on the then prevailing market conditions.
Final Bond Maturity Date May1, 2054
Discount Achieved
$11.32 per MWh, about 13.1% of the price established for energy deliveries under the power supply contract.
~$7.7 million per year during the initial bond pricing period of 8 years.
Energy Volume Supported by Bond Proceeds
~77 MW (about 17% of load; a slight escalation in the latter half of the transaction)
18 250
273
175
155
30 41.4
30 4
66 1,041.3
5,712.1
$6,753.4
Third Prepay Transaction Cost Breakdown ($000)
Item 2
PRESENTATION
Cost of Issuance (COI) $ in 000’s
Bond and Tax Counsel: Ballard Spahr
Credit Rating: Moody’s
Issuer’s Counsel and Disclosure Counsel: Chapman & Cutler LLP Municipal Advisor: PFM Financial Advisors LLC
Investment Advisor: PFMAM (US Bank)
Trustee: BNY Mellon Corporate Trust
Trustee Counsel: Ballard Spahr
Printing Cost: ImageMaster
Contingency/Other
Total COI
Morgan Stanley Underwriting
Total
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Item 2
PRESENTATION
Overview of Prepay Structure
Term: 30-year with bonds repricing every 5-10 years, depending on the optimal spread between taxable and tax-exempt interest rates.
1. SVCE partially assigns, using a Limited
Assignment Agreement, an energy contract to
Energy Supplier (ES). ES agrees to pay the
contract price to the PPA provider.
2. CCAs created CCCFA, a separate legal entity
that can issue tax-exempt debt.
3. CCCFA issues non-recourse tax-exempt bonds.
Bonds not guaranteed by SVCE or CCCFA.
Bonds secured by the contractual rights and
transaction cashflows; Bonds carry FR credit ratings.
4. CCCFA pays bond proceeds, net of transaction
fees, to as prepayment for energy and related
products that ES will provide over the 30-year
term. Executes Prepaid Agreement.
5. SVCE and CCCFA execute a Power Supply
Agreement, where SVCE pays CCCFA the
contract price less a discount for the energy
delivered by CCCFA.
6. CCCFA uses payments from SVCE to pay
interest and principal payments to bondholders.
7. ES and Funding Recipient (FR) execute a
funding agreement where FR receives upfront
funds and makes monthly payments to ES,
which they use to pay PPA provider.
Upfront Funds
Prepayment $$$
MWhs + RECs
MWhs+ RECs
MWhs4- RECs
SVCE CCCFA
Monthly
Payments
Existing PPA
Counterparty
Contract Price
Less Discount
Energy Supplier
(ES, Morgan
Stanley)
Non-Recourse
Tax-Exempt Bonds
Bond
Proceeds
Contract
Price
Debt
Service
Existing
PPA - Partially
Assigned
Funding
Recipient (FR)
20 • Subtitle
New SV Clean Energy
PowerPoint Template
2025 Customer Bill Credit
Status Update
Peyton Parks
August 4, 2025
Item 3
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
• Background
• Implementation plan
• Messaging
• Timeline
2 $33M
community
reinvestment via
on-bill customer
credits
Agenda:
Item 3
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
3 Background
• Bill credit to every active SVCE customer
• Credit means SVCE's effective rate discount to PG&E for 2025 is 10% (4% throughout the year, and then this one-time credit is equivalent to another 6% throughout the year) • Residential customers will receive a flat credit
• Non-Residential customers will receive a credit scaled to their usage
Item 3
PRESENTATION
ENERGY STATEMENT
- www.pge.com/MyEnergy
Account No: 2718590438-4
Statement Date: 02/05/2024
Due Date: 02/19/2024
Service For:
FIRST NAME LAST NAME
ADDRESS
CITY, STATE, ZIP CODE
Questions about your bill?
Monday-Friday 7 a.m.-9 p.m.
Saturday 8 a.m.-6 p.m.
Phone: 1-800-743-5000
www.pge.com/MyEnergy
Ways To Pay
www.pge.com/waystopay
Your Account Summary
Amount Due on Previous Statement $144.92
Payment(s) Received Since Last Statement -144.92
Previous Unpaid Balance $0.00
Current PG&E Electric Delivery Charges $40.82
Silicon Valley Clean Energy Electric Generation Charges $94.70 TotalAmount Dueby 02/19/2024 $135.52
Monthly Billing History Daly Usage Conpanson
2023 1/M 2X33 3/33 5X34 603 704 803 903 1003 1104 1204 0104 2024 Electric Gas GasThams/Day Visit www pqa conVMyEnergy for a detailed bill comparison Important Messages
The Family Electric Rate Assistance (FERA) Program provides a monthly discount on electric bills tor income-qualified households of three or more persons To see if you qualify, please call 1-800-PGE-5000 or apply online at www.pge com/fera El Programa FERA ofrece ahorros mensuales solo en las facturas de electricidad a hogares de ingresos econdmicos bajos y medianos con tres o mas personas Para determinar si callfica, por favor llame al 1-800-PGE-5000 o puede aplicar a traves de nuestra pagina web www.pge com/fera
Continued on page 2
Please return this portion with your payment. No staples or paper dips. Do not fold. Thank you.
Account Number: Due Date: Total Amount Due:
2718590438-4 02/19/2024 $135.52
FIRST NAME LAST NAME
ADDRESS
CITY, STATE, ZIP CODE
PG&E
80X 6018
LOS ANGELES, CA 90044
4 • Estimated $33M, plus a $2M contingency
• Credits to be delivered via customer bills in September, for August usage • Non-res credits determined by using trailing 12 months of customer usage • Customers under special supply agreements will be excluded from receiving credits, per the agreement language.
Implementation plan
All active SVCE customers will receive a bill-credit from SVCE on their Sept. bill Item 3
PRESENTATION
5 Determining customer credits
Residential
customers receive a
flat credit amount
regardless of usage.
Non-Residential
customers’ credits
will be prorated by
their rate class and
usage.
Step 1 Step 2
RES • Determine Residential
share of credit by load and
prorate $33M
~33% * $33M = $11M
• Divide total Residential
portion by number of eligible
customers.
$11M / ~253,000 = $43.47
Non-RES • Determine Non-Res share
of load by class.
• Determine per-kWh credit
amount per class share.
B1 (Small)
B10 (Med)
B19 (Large)
B20 (Ind)
Ag
Lighting
• Individually assess customer
credit by SAID for ~33,000
Non-RES customers based on
usage in the relevant period.
$/kWh * Usage = Bill Credit
Illustrative Estimate
Item 3
PRESENTATION
6 Key message: SVCE continues to deliver on its commitment to community reinvestment.
Letter to customers, separated by Res and Non-Res
Press release announcing that customers can expect the credit Highlighting this community reinvestment
Community reinvestment is core to the SVCE mission - this credit is one of many ways that SVCE reinvests.
Item 3
PRESENTATION
Timeline Title of the Page
July
August
September
Testing non-res. credit methodology (In Progress)
Finalize credits, press release goes out
Customer letters go out, credits processed and applied to customer bills
June Initiate billing request, determine non-res. credit methodology, determine customer messaging
Item 3
PRESENTATION
I
I
*
8 Questions
Item 3
PRESENTATION
New SV Clean Energy
PowerPoint Template
Subtitle
Item 4
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
FY 25-26 Proposed
Operating Budget Review
Amrit Singh
Finance and Administration Committee
August 4, 2025
Item 4
PRESENTATION
Purpose
Action: Recommend the Board approve,
with any suggested changes, the
proposed Fiscal Year 2025-2026 (FY
26) Annual Operating Budget
1. Budget Timeline and Key Highlights
2. Proposed Budget Forecast
3. Revenue Forecast
4. Reserves Projection
5. Reserve Management
6. Review Reserve Targets and Policy
7. Other Operating Expenses
Main Areas of Discussion
Item 4
PRESENTATION
FY 26 Annual Operating Budget Process
Budget Framework
June
Discuss the high-level
budget framework
and stress analysis
with the Finance and
Admin Committee
June
Present the stress test
analysis to the BOD
August
z
f Review the draft
budget with the
Finance & Admin
( Committee
Full-Year Update
August September
Present the draft Present to the BOD the
budget to the BOD budget, incorporating
for review and any feedback received
feedback in August
Fiscal Year Review adjustments to the Present the Review the mid-year Present the mid¬ Start budget to reflect updates to adjusted budget with the Finance year budget to PCIA and PG&E gen rate budget to the and Admin Committee the BOD for assumptions with the Finance BOD for 1
1 approval
and Admin Committee approval \
/ 3
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Item 4
PRESENTATION
Q) Fiscal Year 26 Annual Budget Highlights
1. Negative Margins over 5-yr Outlook
A negative contribution to reserves of $40.1 million for FY 26 Year-over-Year revenues decline significantly (~$165 million) from anticipated high PCIA and lower PG&E generation rates Results are highly uncertain and dependent on CPUC’s
adoption of Market Price Benchmarks (MPBs) in the fall
5-yr financial outlook largely consistent with results
presented in June 2025 as part of the stress test analyses
3. Customer Discount- Revisit in December
Maintain 4% discount through December 2025 and reduce
the discount to 1% starting next year
Continue to provide an additional 1% directed to low-income customers as bill credits
Revisit in December when setting 2026 customer rates
2. No Major Changes Recommended At This Time
Budget consistent with discussions in June
Adjust the budget in December when there’s more
certainty on next year’s rates
Staff will present financial levers in December
Reserves built over time enable SVCE to take
measured and strategic responses to changes in the
market and business operating environment
4. Relatively Minor Increases in Operating Expenses
Personnel: No additional positions; 3% adjustment for the cost of living
Slight increase in power supply expenses (~$19 million), largely from portfolio changes and increases in energy cost Other expenses: Increase by ~$4 million (updated vendor fees; anticipated legal expenses and other minor changes) 4 •
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SILICON VALLEY CLEAN ENERGY
FY25-26 OPERATING BUDGET
($ in thousands)
FY 2024-25 FY25-26
MID-YEAR
ADJUSTED ANNUAL
DESCRIPTION BUDGET BUDGET $ %
Energy Revenues 523,534 358,416 (165,118) -31.5%
Power Supply Expense 349,478 368,896 19,418 5.6%
Operating Margin 174,056 (10,480) (184,536) -106.0%
Operating Expenses 39,284 43,193 3,909 9.9%
Non-Operating Revenue (Expense) 19,743 21,384 1,641 8.3% Annual Transfers and Other Expenses
Capital Outlay 50 512 462 924.0%
Program Fund 10,530 7,251 (3,279) -31.1%
Nuclear Allocation 3,708 0 (3,708) -100.0%
Customer Bill Relief (Existing CARE/FERA) 5,370 0 (5,370) -100.0% Additional One-Time Bill Credit for All Customers 35,000 0 (35,000) -100.0% Hanford Emissions Mitigation Fund 1,800 0 (1,800) -100.0% Other 0 0 0.0%
TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER 56,458 7,763 (48,695) -86.2%
BALANCE AVAILABLE FOR RESERVES 98,057 (40,052) (138,109) -140.8% Change
Item 4
PRESENTATION
Proposed FY 26 vs. FY 25 Mid-Year Adjusted Budget
Lower revenue from
anticipated high PCIA and
lower PG&E Generation rates
Power Supply Cost increases
mainly due to portfolio position
changes, compliance
obligations, and increases in
energy cost
Program Fund allocation is
lower due to reduced revenue
Customer Bill Relief is shown
as a reduction in revenue
Capital Outlay adjusted for
anticipated new office furniture
Forecasted Margins Drop ~40%
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Item 4
PRESENTATION
Current 2025 Rate Projected 2026 Rate
4% SVCE discount
tn
in
in
in
6 PCIA 1.02 <t/kWh
PCIA 2.11 <t/kWh
5 cn
in
in
in
headroom
decrease
01 co
CD
+-<
CD
CC
Estimated 2025 final and 2026
forecast RPS MPBs are 10%
and 38% lower vs 2025
forecast RPS MPBs
CD
+-<
CD
or
CD
+-•
CD
DI CD
CD
or
CD
0 CD
0 V
01 CN
00 Prices for RA and RPS have
dropped significantly
PG&E 2026 Gen Rate is
estimated to decrease by
^30% Year over Year
SVCE margin is estimated to
decrease by ^40% YoY
Customer billing rates drop
on average by ^30%
Estimated 2025 final and 2026
forecast system RA MPBs are
65% and 64% lower vs 2025
forecast RA MPBs
CD
0 LU
0 CD
0 LU
0 CD
E
o
<n
0 LU
0 PG&E Gen Rate:
15.17 e/kWh
CD
E
o
cn
0 LU
0 PCIA estimated to increase
from 1.02 4/kWh to 2.11
(t/kWh (from ~$41M in CY2025
to over $81M in CY2026)
PG&E Gen Rate:
10.50 c/kWh
7l%SyCEdJscount
* Source: CaICCA NewGen Model analysis using market data as of 6/27/2025 and estimated CPUC attribute benchmarks for CY 2025-2026 (Weighted for SVCE Portfolio Load) ** PG&E 2025 Average Rate, effective January 1, 2025 (Weighted for SVCE Portfolio Load) Above margin analyses ignores minor reductions for franchise fees (0.1 cf/kWh) •
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430
345
271
218
149
366
303
245
204
148
0 100
200
300
400
500
600
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 DCOH Days Cash on Hand (DCOH)
DCOH (Inc. Unspent Earmarked Funds)* DCOH (Excl. Unspent Earmarked Funds)* Max Reserves (500 DCOH) Target Reserves (350 DCOH)
Min Reserves (120 DCOH)
* Earmarked funds are unspent SVCE Program Funds and Building Funds.
Item 4
PRESENTATION
Reserve Projection
Projected End of FY 26
Reserves:
366 Days of Cash on Hand
(DCOH)
Excludes Unspent Program Funds
and Building Fund
430 Days of Cash on Hand
(DCOH)
If unspent Program Funds and
Building Fund were included in the
reserve calculation
Relevant metric for assessing
financial liquidity
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Item 4
PRESENTATION
1 Reserve Management
5-yr outlook projects drawing ^$75
million a year on average from
reserves under the current
operating framework
All customer rates are at a competitive
advantage (1%) relative to PG&E Rates
Programs are funded at 2% of revenues
($37.5 million over 5 years)
The current earmarked funds, mostly for
programs, currently around ~$93 million, are
spent over the next 5 fiscal years
Financially, SVCE is well-positioned
DCOH above the minimum threshold of 120
over 5 years
DCOH at 345 is close to the target level of
350 through the end of Sept. 2027
Staff Recommendation (same as discussed in June 2025):
No major changes recommended yet
Adjust the budget in December when there’s more
certainty on next year’s rates
Staff will assess the financial levers
Reassess rate discounts and rate design along
with customer product offerings
Consider increasing financial liquidity
Bank Line of Credit
8 •
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Item 4
PRESENTATION
CD Review Reserve Targets and Policy
Ensure SVCE maintains sufficient
reserves to manage risks such as those
modeled in the Stress Test analysis.
Set the goal target such that if the
stress scenario were to occur, DCOH
stays above120 for the next two fiscal
years.
Set the maximum target (upper target)
such that over the next five fiscal years,
reserves do not fall below 90 DCOH
under the modeled stress scenario
Reserve Targets (DCOH) Current Implied
Targets*
Proposed
Minimum 120 120 120
Goal (Target) 350 380 350
Maximum (Upper Target) 500 800 500
Staff Recommendation:
No changes to reserve targets or policy
Changing the targets has no practical implication,
given that the financial outlook does not support
contributing to reserves
Current targets support guidance from credit rating
agencies
Implied targets based on the stress test analyses presented in June 2025. 9 Item 4
PRESENTATION
1 Operating Expenses and Transfers
Operating Expenses* Change (000s)* Implications/Reasons Personnel Costs** $66
No additional FTE positions requested, COLA 3%, accounting recategorization of consultant fees, other position adjustments, promotions, and actual vacancies.
Other Expenses $3,843 Add’l Data Management, PG&E fees, Professional Services, Marketing, and G&A ★Amounts include 5% operating expense contingency
** Proposes no changes to current benefits. Ongoing benefits include SVCE coverage for employees’ out-of-pocket premiums for dental and vision expenses. Staff informed the Board at the December 11, 2024, meeting to provide this benefit in 2025, which resulted from expected cost savings from lower rates for other benefits.
Capital Outlay Amount (000s) Implications/Reasons
New Office Furniture $462 Estimated furniture cost for new office space, in preparation for potential office move in FY25-26
Transfers Amount (000s) Implications/Reasons
Programs Transfer $7,251 2% of projected revenues
10 •
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•
Item 4
PRESENTATION
Summary -Negative Financial
Outlook; Results are Highly Uncertain
The biggest risks include:
late-year adjustments to PCIA / PG&E Gen Rate
significant price volatility, especially for RA and RPS resources
regulatory uncertainty on PCIA and balancing account
true-ups from 2025 in 2026
Revisit customer discounts for 2026 later in the year
when there’s more certainty on PG&E and PCIA rates
4% customer discount remains for the first three months of the fiscal year (Oct 2025 to Dec 2025)
An additional 1% towards bill credits remains for low-income customers Staff to assess additional financial levers for managing the 5-year reserve outlook
No changes to reserve targets or reserves policy
Many Risks can Deplete Reserves
Market Prices
Reduced Revenues
via Higher PCIA and
Lower PG&E Rates;
IncreasedPower
Supply Expense
SUPPLY
Project delays;
PPAs Default or
Renegotiate for
Higher Pnces
L&R ISSUES
IRP. RPS. RA
Reform/Penalties,
PCIA. POLR
PAYMENTS LOAD LOSS CYBER-RISK
Customer Defaults DirectAccess Hardware, Software,
and Potential for and Trainingto combat
Expansion Ransomware and
Phishing
Rate Increasesdue
to socialized wildfire
costs. Energy Price
Increaseswill
ultimately impact
usage and
electrification
11 Recommend that the Board of Directors approve the
Proposed FY 2025-26 operating budget and not change
the current reserve targets or the Reserves Policy.
Item 4
PRESENTATION
Recommendation
12 Item 4
PRESENTATION
Thank you! / Questions?
13 SILICON VALLEY CLEAN ENERGY
FY25-26 OPERATING BUDGET
($ in thousands)
FY25-26
ANNUAL
DESCRIPTION BUDGET
ENERGY REVENUES
Energy Sales 360,057
Green Prime 2,469
Customer Bill Relief (Existing CARE/FERA) (4,110)
Other Income 0
TOTAL ENERGY REVENUES 358,416
ENERGY EXPENSES
Power Supply 368,896
OPERATING MARGIN (10,480)
OPERATING EXPENSES
Data Management 3,764
PG&E Fees 1,569
Salaries and Retirement 18,870
Professional Services 10,902
Marketing & Promotions 2,347
General & Administrative 5,742
TOTAL OPERATING EXPENSES 43,193
OPERATING INCOME (LOSS) (53,673)
NON-OPERATING REVENUES
Interest Income 21,413
TOTAL NON-OPERATING REVENUES 21,413
NON-OPERATING EXPENSES
Financing 29
TOTAL NON-OPERATING EXPENSES 29
TOTAL NON-OPERATING INCOME (EXPENSES) 21,384
CHANGE IN NET POSITION (32,289)
CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER
Capital Outlay 512
Program Fund 7,251
Nuclear Allocation 0
Customer Bill Relief (Existing CARE/FERA) 0
Additional One-Time Bill Credit for All Customers 0
Hanford Emissions Mitigation Fund 0
Other 0
TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER 7,763
BALANCE AVAILABLE FOR RESERVES (40,052)
Item 4
PRESENTATION
Fiscal Year 2025-
2026 Annual
Operating Budget
14 ($ in Thousands)
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
Operating Revenue (Forecast) (Forecast) (Forecast) (Forecast) (Forecast) Electricity Sales, Net1 $360,057 $344,870 $373,562 $385,869 $399,386 GreenPrime Electricity Premium $2,469 $2,510 $2,336 $2,309 $2,361 Reduction in Revenue $(4,110) $0 $0 $0 $0
Other Income $0 $0 $0 $0 $0
Total Operating Revenues $358,416 $347,380 $375,898 $388,178 $401,747 Operating Expense
Power Supply $368,896 $377,056 $390,399 $389,754 $409,179 Operating Margin $(10,480) $(29,676) $(14,501) $(1,576) $(7,432) Data Management $3,764 $3,952 $4,149 $4,357 $4,575
PG&E Service Fees $1,569 $1,647 $1,729 $1,816 $1,907
Salaries and Retirement $18,870 $19,814 $20,805 $21,845 $22,937 Professional Services $10,902 $11,447 $12,019 $12,620 $13,251 Marketing & Promotions $2,347 $2,464 $2,587 $2,717 $2,852 General and Administration $5,742 $5,526 $5,803 $6,093 $6,397 Transfers to Programs Fund $7,251 $6,948 $7,518 $7,764 $8,035 Total Operating Expenses $419,340 $428,854 $445,009 $446,965 $469,134 Operating Income $(60,924) $(81,475) $(69,111) $(58,787) $(67,387) Nonoperating Revenue
Investment Income $21,413 $16,236 $11,990 $10,449 $8,184 Grant Income $0 $0 $0 $0 $0
Total Non-Operating Revenues $21,413 $16,236 $11,990 $10,449 $8,184 Nonoperating Expense
Financing Cost $29 $29 $29 $29 $29
Capital Outlay $512 $50 $50 $50 $50
Total Non-Operating Expense $541 $79 $79 $79 $79
Non-Operating Income $20,872 $16,157 $11,911 $10,371 $8,106 Change in Net Position/Available for Reserves $(40,052) $(65,317) $(57,200) $(48,417) $(59,281) Begin, Net Financial Position $593,981 $523,874 $434,778 $360,355 $296,351 Adjustment for Program Expenditure and Building Fund2
$(30,055) $(23,779) $(17,224) $(15,588) $(16,196)
End, Net Financial Position $523,874 $434,778 $360,355 $296,351 $220,873 Days Cash On Hand (DCOH) at Year End $494,189 $405,094 $330,670 $266,666 $191,188 Days of cash on hand 430 345 271 218 149
1. Assumptions: 4% overall discount relative to comparable PG&E rates for calendar year 2025. FY 25-26 includes additional bill credit to low income customers totaling $4.1 million. 1% discount for 2026-2030.
2. Each year the Board transfers funds from the Operating Budget to the Decarbonization Programs Fund as shown in the above forecast under line item Transfers to Programs Fund. The line item Adjustment for Program Expenditure accounts for the difference between forecasted spend for programs versus the amount transferred to the fund. This adjustment is needed because program spending to date has been less than the amount transferred to the programs fund. The $20 million in building Fund is assumed to be spent between FY24-25 and FY25-26.
Item 4
PRESENTATION
5-Year Forecast
15 •
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2025** 2026*** 2025** 2026*** 2025** 2026*** 2025** 2026*** 2025** 2026*** Rate Schedule E-TOUC Est. Avg E-TOUCL Est. Avg B-1 Est. Avg B-10S Est. Avg B-19S Est. Avg PG&E Bundled Gen Rate ($/kWh) $ 0.150 $ 0.108 $ 0.150 $ 0.1081 $ 0.151 $ 0.105 $ 0.159 $ 0.111 $ 0.145 $ 0.105 SVCE Gen Rate ($/kWh) $ 0.134 $ 0.084 $ 0.134 $ 0.084 $ 0.134 $ 0.083 $ 0.141 $ 0.087 $ 0.128 $ 0.083 PG&E Delivery Rate ($/kWh) $ 0.286 $ 0.273 $ 0.113 $ 0.108 $ 0.299 $ 0.293 $ 0.216 $ 0.234 $ 0.170 $ 0.202 PG&E PCIA/FF ($/kWh) $ 0.012 $ 0.023 $ 0.012 $ 0.023 $ 0.011 $ 0.021 $ 0.012 $ 0.022 $ 0.011 $ 0.021 Total Electricity Cost ($/kWh) $ 0.432 $ 0.380 $ 0.259 $ 0.215 $ 0.444 $ 0.397 $ 0.369 $ 0.343 $ 0.310 $ 0.306 SVCE CARE/FERA Monthly Credit* $ - $ (17.50) $ (12.00)
Est. Average Usage (kWh/month) 491 491 491 491 1,851 1,851 22,540 22,540 148,625 148,625 SVCE Gen Rate Discount vs PG&E** 4% 1% ~28%* ~24% 4% 1% 4% 1% 4% 1% Est. Av. Monthly Savings vs PG&E** $ 2.36 $ 0.53 $ 19.89 $ 12.53 $ 11.18 $ 1.95 $ 143.58 $ 24.95 $ 865.00 $ 156.07 *Estimated, based on average historic residential usage and number of CARE/FARE customers as of 6/16/2025. **Estimated, based on current PG&E rates as of March 1, 2025. **Estimated, based on CalCCA NewGen Model analysis using market data as of 6/27/2025 (for gen rate and PCIA/FF) and PG&E 2026 ERRA forecast, published on May 15, 2025 (for T&D charges).
Residential Res CARE* Small Commercial Medium Commercial Large Commercial Item 4
PRESENTATION
Total CARE bill discount (including T&D) vs average residential PG&E customer, assuming the same usage (491 kWh/month), is about -49% in 2025 and is estimated to be around -50% in 2026 .
The 2025 monthly savings do not include the one-time August 2025 bill credit, which is equivalent to a 6% additional gen rate discount based on average rate class usage.
On average, CARE usage is about 9% lower than that of an average residential (E-TOUC) customer.
Estimated Customer Billing Rate Breakdown and
Comparison Y-o-Y
16 SVCE PG&E SVCE PG&E SVCE PG&E SVCE PG&E SVCE PG&E
Rate Schedule E-TOUC E-TOUC B-1 B-1 B-10 B-10 B-19S B-19S Average Usage (kWh/month) 491 491 491 491 1,851 1,851 22,540 22,540 148,625 148,625 Annual Peak Demand (kW) 0 0 0 0 499 499
PG&E Electric Delivery $ 140.60 $ 140.60 $ 55.60 $ 55.60 $ 552.58 $ 552.58 $ 4,879.01 $ 4,879.01 $ 25,303.41 $ 25,303.41 Electric Generation $ 65.57 $ 85.14 $ 65.72 $ 85.32 $ 247.72 $ 320.32 $ 3,176.34 $ 4,104.98 $ 19,068.59 $ 24,832.27 CARE/FERA monthly bill credit $ (17.50)
PG&E Added Fees (PCIA, Franchise) $ 5.78 $ (11.43) $ 5.78 $ (11.43) $ 20.68 $ (40.74) $ 264.39 $ (520.67) $ 1,649.74 $ (3,248.94) Average Total Cost $ 211.95 $ 214.31 $ 109.60 $ 129.49 $ 820.97 $ 832.15 $ 8,319.74 $ 8,463.32 $ 46,021.73 $ 46,886.73 Average Monthly Savings $ 2.36 $ 19.89 $ 11.18 $ 143.58 $ 865.00 *Estimated, based on current PG&E rates as of March 1, 2025 Residential Res CARE/FERA* Small Commercial Medium Commercial Large Commercial Item 4
PRESENTATION
(^) Typical Customer Bill Savings
(Current Rates)
17 Item 4
PRESENTATION
Average Effective Customer Billing Rates
Customer Billing Rate (C/kWh)
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
‘Average effective billing rate inclusive of PCIA, weighted for SVCE portfolio load. The 10% discount for 2025 includes a one-time bill credit, equal to 6% annual discount (up to $35 million in total additional credits). 18 •
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CARE Income Guidelines
(valid through May 31, 2026)
Number of
people in
household
Total gross annual
household income
1-2 $42,300 or less
3 $53,300 or less
4 $64,300 or less
5 $75,300 or less
6 $86,300 or less
7 $97,300 or less
8 $108,300 or less
9 $119,300 or less
10 $130,300 or less
Each
additional
person, add
$11,000
*Before taxes and based on all current income sources.
FERA Income Guidelines
(valid through May 31, 2026)
Number of
people in
household
Total gross annual
household income*
1-2 $42,301 - $52,875
3 $53,301 - 66,625
4 $64,301 - $80,375
5 $75,301 - $94,125
6 $86,301 - $107,875
7 $97,301 - $121,625
8 $108,301 - $135,375
9 $119,301 - $149,125
10 $130,301 - $162,875
Each
additional
person, add
$11,000 - $13,750
*Before taxes and based on all current income sources.
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Item 4
PRESENTATION
CARE and FERA Customer Eligibility Criteria
Eligible low-income customers
who are enrolled in the CARE
program receive a 30-35%
discount (not including additional
SVCE discount and bill credits) on
their total electric bills and a 20%
discount on their natural gas bills.
FERA offers an 18% discount
on total electric rates but not
on gas rates. CARE and FERA
share one application. If
applicants do not qualify for
CARE, they might still qualify
for FERA.
Eligibility for California Alternate Rates for Energy
(CARE) or Family Electric Rate Assistance (FERA) is
based on:
Household income and size, or
Enrollment in one of the qualifying public assistance
programs* (CARE)
* To qualify through other public assistance programs:
Someone in a household must take part in any of the following public assistance programs:
Low Income Home Energy Assistance Program (LIHEAP)
Women, Infants, and Children (WIC)
CalFresh/SNAP (Food Stamps)
CalWORKs (TANF) or Tribal TANF
Head Start Income Eligible (Tribal Only)
Supplemental Security Income (SSI)
Medi-Cal for Families (Healthy Families A & B)
National School Lunch Program (NSLP)
Bureau of Indian Affairs General Assistance
Medicaid/Medi-Cal (under age 65)
Medicaid/Medi-Cal (age 65 and over)*
19 •
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Item 4
PRESENTATION
1% customer discount over 12 months of 2026 is ~$3.7 million Monthly Average Bill Savings of 1% Discount:
Residential - ^$0.53
Small Commercial - ~$1.95
Medium Commercial -^$24.95
Continue to provide competitively priced and high-value services to SVCE customers Funds not needed to cover cost-of-service flow to
Customers Via lower SVCE rates (discount to comparable
PG&E rates)
Cost-of-service includes funds needed to cover
operations, meet reserve targets, and fund
decarbonization programs
20 •
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Item 4
PRESENTATION
CD Power Supply Costs
Fiscal Year 2026 (Oct ‘25- Sep ‘26) costs, forecasted at $368.9 million dollars, are estimated to be $19.4M higher than the FY2025 (Oct '24- Sep ’25) forecast at mid-year budget ($349.5MM) Favorable Drivers:
$1.4MM lower ISO charge costs based on forecast updates from historical data Offset by Additional Costs:
$3.9MM higher RA costs due to increased contract costs to procure MTR products at a premium to system RA $7.1MM higher cost of Environmental products due to increased procurement costs with PPA at-risk, expected higher 2026 RPS MPB
$9.8MM higher cost of energy supply due to an increase in energy market prices, and a higher energy net open position
21 •
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Item 4
PRESENTATION
1 Reserve Target Definitions
Current Reserve Targets:
Minimum Reserve Level: 120 DCOH
If reserves fall below the minimum level, develop plans to restore them to the minimum level within two fiscal years.
Reserve Goal: 350 DCOH
No action required if the reserves are above the minimum and below the maximum levels.
Maximum Reserve Level: 500 DCOH
If reserve funds are projected to exceed the maximum level, present the Board of Directors with options for disposition of those reserves during the next budget cycle.
22 512
430
345
271
218
149
495
456
352
284
205
153
0 100
200
300
400
500
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 DCOH Days Cash on Hand (DCOH)
FY25-26 Proposed Budget vs. Stress Test (Base Case)
FY25-26 Proposed Budget DCOH (Inc. Unspent Earmarked Funds)* Stress Test - Base Case - DCOH (Inc. Unspent Earmarked Funds)* * Earmarked funds are unspent SVCE Program Funds and Remaining Building Funds.
Item 4
PRESENTATION
DCOH Compared to Stress Tests (Base Case)
512
430
345
271
218
149
498
423
193
34 -114
-238 -300
-200
-100
0 100
200
300
400
500
FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 DCOH Days Cash on Hand (DCOH)
FY25-26 Proposed Budget vs. Stress Test (Stress Case)
FY25-26 Proposed Budget DCOH (Inc. Unspent Earmarked Funds)* Stress Test - Stress Case - DCOH (Inc. Unspent Earmarked Funds)* * Earmarked funds are unspent SVCE Program Funds and Remaining Building Funds.
Item 4
PRESENTATION
DCOH Compared to Stress Tests (Stress Case)
Item 4
PRESENTATION
Programs Capacity is Increasing
$130M allocated over the
last 6 years
$75M allocated over the last
3 years
Some programs are open
multiple years so may take
time to ramp up spending
Programs Fund Availability
Spent: Already paid out to customer or vendors
Available Now: Open to customers -includes available and reserved customer incentives (e.g. FutureFit Homes), or funds contracted with a vendor (e.g. eHub, fleet electrification support) Available Soon: In a planning phase, but will plan to launch in 2025 Future/Still Planning: Won’t launch until 2026 or after and funds not currently allocated to a program •
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Item 4
PRESENTATION
1 Staffing
Current Budgeted
Staffing
62 Full-time Employees (5 Vacancies)
3 intern positions
3 Part-time Employees
3 Climate Corps Fellows
1 Long-term Independent Consultant
No additional headcount request for FY25-26.
FY FTE Request Summary FTE
Authorized in the FY24-25 Annual Budget 62
Authorized in the Midyear 24-25 Budget +5
Current Authorized FTE Total 67
26 •
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•
•
Spent (~$11.6M),
58%
Remaining (~$8.4M),
42%
Office Building Fund
Spent (~$11.6M) Remaining (~$8.4M)
Item 4
PRESENTATION
SVCE New Office Space Budget Update
SVCE Closed the Purchase of 298 S. Sunnyvale Ave. Office Space in Feb 2025 BOD approved allocation of $20M to the Office Building Fund during FY23-24 Midyear Budget in 2024 Since closing of the purchase, staff has been working through design, permitting, and constructions for an anticipated office move around 2026 Q3
Remaining building fund will continue to be allocated for construction and renovation of the office space, Board Chamber, and a “warm shell” for the community space
Staff will return to the Board with full options for the community space including associated budget Other capital costs such as office furniture and on-going facility operating costs have been included in the Proposed FY25-26 budget
2025 02 # 2025 Q3 2025 Q4 2026 Q1 2026 Q2 2026 Q3
BOD/public input on • Start • Finalize design • Permits • Construction • Ready for meeting space detailed and submit for issued move-in
Onboard PM design of permits • Construction
Solicitation and workspace, • Release RFP for begins
selection for design Board construction • Update
and architecture Chambers, services designs as
firm and build (tentative) needed for
Board delegates flow • Return to BOD community
approval of with options for space
architecture firm to community
CEO space. 27
*Timeline subject to change
Item 4
PRESENTATION
Medium-Term Load Forecast by Sector
Annual Retail Sales Forecast by Class
5,000
4,500
4,000
3,500 39% 39% 38% 38%
3,000
5 2,500
2,000 28% 28% 27% 27%
1,500
1,000
500
FY2025 FY2026 FY2027 FY2028 FY2029
Residential Small/Medium Commercial Large Commercial Agricultural Light 28 Item 4
PRESENTATION
Residential Sales Small Commercial Sales
500
0 29
Sales by Class
Share of SVCE Sales by Class
w/oEVandPV Res //o EV and PV SCom
2025 2030 2035 2045 Driver
Residential 31% 35% 40% 47% Load Modifiers
Small
Medium
22% 20% 19% 18% Near-term: BTM PV, Long-term: public EV charging Large 38% 35% 32% 28% Economy (no new data centers)
Agriculture 1% 1% 1% 1% Held Constant
Lighting 0% 0% 0% 0% Change in Residential Customers, but minimal impact • RPS – Renewable Portfolio Standard - The RPS program requires investor-owned utilities (IOUs), publicly owned utilities (POUs), electric service providers (ESPs), and community choice aggregators (CCAs) to increase procurement from eligible renewable energy resources to 60% of total procurement by 2030. RPS eligible resources include solar, wind, small hydro, biomass and geothermal. • RA – Resource Adequacy - Under its Resource Adequacy (RA) program, the California Public Utilities Commission (CPUC) requires load-serving entities—including investor-owned utilities (IOUs), electric service providers (ESPs), and community choice aggregators (CCAs)—to demonstrate in both monthly and annual filings that they have purchased capacity commitments to contribute their share of system reliability.
• MTR – Mid-Term Reliability – Procurement order issued by the CPUC to focus on securing sufficient online resources to ensure reliability through at least 2028.
• PCIA – Power Charge Indifference Adjustment - Designed to recover the above market cost of long-term power purchased on behalf of customers who later departed the IOU to be served by a CCA. The calculation methodology is set by the CPUC, and the amount is calculated annually, with vintages set for each year of customer departures. • OIR –Order Instituting Rulemaking - A procedural document that is issued by the CPUC to start a formal proceeding. A draft OIR is issued for comment by interested parties and made final by vote of the five Commissioners of the CPUC. • ERRA – Energy Resource Recovery Account - ERRA proceedings are used to determine fuel and purchased power costs which can be recovered in rates. The utilities do not earn a rate of return on these costs, and only recover actual costs. The costs are forecast for the year ahead, and actual costs are retroactively trued-up via balancing accounts. • MPBs – Market Price Benchmarks - estimated values per unit associated with key components of energy portfolios, such as the Energy Index, Renewable Portfolio Standard (RPS) Adder, and Resource Adequacy (RA) Adder.
Item 4
PRESENTATION
CD Glossary
30 Item 4
PRESENTATION
0 SVCE Planning & Budgeting Process
Budget
Comprehensive assessment of risks and
opportunities to optimally achieve mission
SVCE Mission: Reduce dependence on fossil fuels by
providing carbon-free, affordable, and reliable electricity and innovative programs for the SVCE community.
Funding in alignment with achieving
the strategic focus areas
Organization-wide priorities and
alignment toward achieving the mission
31