Staff Report – Item 6
Item 6: Provide Feedback on the Fiscal Year 2025-26 Proposed Operating Budget, and the Proposal to Maintain the Current Financial Reserves Targets and Policy From: Monica Padilla, CEO
Prepared by: Amrit Singh, CFO
Scott Wrigglesworth, Director of Risk and Analytics
Karen Chang, Manager of Finance
Date: 8/13/2025
RECOMMENDATION
In preparation for adopting the budget in September 2025, Staff recommends that the Silicon Valley Clean Energy (SVCE) Board of Directors (“Board”) provide feedback on the fiscal year (FY 26) 2025-261 Proposed Operating Budget (“Proposed Budget”, Attachment 1), which includes, at a high level, the following:
1. Withdraws $40.1 million from the reserves
2. Maintains an average of four percent (4%) customer discount to comparable PG&E rates through December 2025 and reduces it to one percent (1%) in January 2026
3. Continues to provide additional monthly dollar bill credit to California Alternate Rates for Energy2 (CARE) and Family Electric Rate Assistance (FERA)
3 customers, which in the aggregate is equivalent to
a one percent (1%) discount for all customers
4. Proposes no changes to the current financial reserves targets and policy (Attachment 2)
FINANCE AND ADMINISTRATION COMMITTEE AND BOARD REVIEW
At the June 2, 2025, Finance and Administration Committee (“Committee”) meeting, staff presented the methodology, framework, and key assumptions for developing the Proposed Budget. At the same Committee meeting and the June 11, 2025 Board meeting, staff also provided and discussed the stress test analysis (materials can be found here: SVCE Board of Directors Meeting June 11, 2025 – Item 4) that provided an assessment of the agency’s risks, which staff uses in developing the budget, managing the reserve levels, and proposing any changes to the financial reserves targets and policy.
Staff discussed the high volatility in the energy market prices, Resource Adequacy (RA) prices, and Renewable Portfolio Standard (RPS) prices, which added additional uncertainty to financial projections. Staff also 1 The fiscal year 2025-26 starts on October 1, 2025, and ends on September 30, 2026. 2 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. Eligible customers are those whose total household income is at or below certain income limits that vary depending on household size. For example, the income limit for households of 4 is $64,300. 3 The FERA program offers an 18% discount (not including additional SVCE discount and bill credits) on customers' total electricity bills if the household income slightly exceeds the CARE allowances. For example, the income limit for households of 4 is $80,375.
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Agenda Item: 6 Agenda Date: 8/13/2025
discussed that the prices that the California Public Utilities Commission (CPUC) will set for Market Price Benchmarks (MPBs), issued in the fall, and used to set PCIA4 Rates, will substantially impact the budget.
In addition to assessing SVCE’s financial performance if the extreme but plausible stress scenario occurs, staff also discussed and reviewed key financial risk factors and uncertainties that influence the financial projections, which are based on the best available data and information when the projections are made. These uncertainties and risks affect this proposed budget and the 5-year financial outlook (Attachment 3).
Staff presented the Proposed Budget to the Finance and Administration Committee on August 4, 2025. After reviewing and discussing the proposed budget, reserve levels, and the current reserve policy with staff, the Committee voted unanimously to recommend that the Board of Directors approve the staff’s Proposed Budget and maintain the current reserve policy.
BACKGROUND
As discussed with the Committee and the Board when staff presented the stress test analysis, at the time the financial projections are made, staff takes a ‘snapshot’ of market prices and other data, including the outcome of CPUC proceedings such as the pending PCIA Order Instituting Rulemaking (OIR), in preparing the financial analysis. This data and information, especially market prices, change daily or even more frequently. Since the June discussion of the two-track PCIA OIR, CPUC issued a track one decision, which staff, with the help of the NewGen Strategies consultants and model, have attempted to incorporate, including using the best available information to develop projections for the fall MPBs that the CPUC will establish.
Due to the daily movement of prices and changes to other information, the financial projections in this report are not identical to those presented at the June meeting. However, from the perspective of managing SVCE’s financial projections over the 5 years, the results are largely consistent with those presented at the June meeting. As a result, staff’s recommendations for managing SVCE’s reserves are consistent with those presented at the June Board meeting.
ANALYSIS & DISCUSSION
The FY 26 Proposed Operating Budget, shown in Attachment 1, is balanced and presents SVCE in a stable financial condition.
The projected withdrawal of $40.1 million from reserves represents a decrease of $138.1 million from the $98.1 million contribution to reserves shown in the March 2025 Midyear adjusted FY 24-25 Budget. The main reason for the negative reserve contribution is a significant drop of $165.1 million in projected revenues.
Lower revenues are due to an anticipated large increase in PCIA charges and reduced PG&E generation rates, which substantially reduce the margin or headroom for SVCE to keep customer rates competitively discounted to comparable PG&E rates. These projected increases in PCIA rates and lower PG&E generation rates are mainly caused by sharp declines in RA and RPS prices, as discussed at the June meeting. As shown in the table below, all other changes are relatively minor and include:
Description
Budget Variance MY FY 24-25 vs. Annual FY 25-26
Contribution to
Reserves
Reduction in
Reserves/Increase
in Cost
Changes to Reserve
Contribution
Revenues -$165.1M
Investment Income $1.7M
Total Revenues Variances -$163.5M
4 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).
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Agenda Item: 6 Agenda Date: 8/13/2025
Power Supply Cost -$19.4M
Other Operating Expenses -$3.9M
Non-Operating Expenses $0.0M
Total Expense Variances -$23.3M
Capital Transfers -$0.5M
Program Fund $3.3M
Other Transfers $45.9M
Total Transfer Variances $48.7M
Changes to Reserve Balance -$138.1M
• Investment income is expected to increase by about $1.7 million, primarily due to a larger starting reserve balance.
• Power supply cost increase of $19.4 million, mainly resulting from portfolio position changes, cost increases in meeting regulatory requirements, and increases in energy costs relative to the last fiscal year.
• Other operating expenses increase by $3.9 million from updated vendor fees, anticipated legal expenses, and other minor changes in marketing and general administrative costs. • The capital transfer cost increase of $0.5 million is from the anticipated additional office-related expenditures from the move to the new SVCE office
• The program fund transfer decrease of $3.3 million results from lower revenues. Program fund transfers are made per the Board-approved direction of transferring 2% of the revenues. • The reduction in other transfers of $45.9 million results from the following:
o Expiration of savings resulting from accepting SVCE’s share of nuclear allocations from PG&E, which were transferred to customer programs, as approved by the BOD in Nov 2021 ($3.7 million in FY24-25)
o The monthly bill credits provided to CARE and FERA customers are now modeled as a reduction in revenues to align with how these funds are accounted for in our financial statements5 ($5.4 million for FY 2026)
o For Fiscal Year 2024-2025, the Board, in adopting the mid-year adjusted budget, provided a one-time customer bill credit ($35 million).
o Fiscal Year 2024-2025 budget includes a one-time transfer of $1.8 million to the Hanford Emissions Mitigation Fund
Energy Revenues
The Proposed budget shows a decrease in revenues of $165.1 million compared to the FY 2024-25 adjusted mid-year budget. The decline is mainly caused by a forecasted average increase in 2026 PCIA of about 106 percent (from 1.02
6 cents/kWh to 2.11 cents/kWh) and a drop in the 2025 PG&E generation rate of about 31 percent on average (from 15.17 cents/kWh average 2025 rate to 10.50 cents/kWh). These rate changes are forecasted mainly because of large declines in RA and RPS prices for 2025 and 2026, as well as expected final 2025 energy prices averaging below last year’s CPUC forecast used to set 2025 rates. The final 2025 RA MPB and the forecast 2026 RA MPB used to compute 2026 rates are down 65% and 64%, respectively, compared to the 2025 forecast RA MPB used to set 2025 rates. Similarly, the final 2025 RPS MPB and the forecast 2026 RPS MPB used to compute 2026 rates are down 10% and 38%, respectively, compared to the 2025 forecast RA MPB used to set 2025 rates. The significant increase in PCIA, combined with a drop in PG&E generation rates, reduces SVCE margins by 40 percent on average for 2026.
Staff used CalCCA’s NewGen Strategies & Solutions Model to forecast PCIA and PG&E generation rates with updated market prices and estimations of CPUC’s MPBs, including the PCIA OIR track one decision issued on 5 The $5.4 million amount is included in this comparison to account for the total changes in this category compared to the last fiscal year’s budget. These bill credits for the FY 26 are $4.1 million, which is now included as reduction revenues.
6 The rates shown in this report are SVCE load-weighted average rates.
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Agenda Item: 6 Agenda Date: 8/13/2025
June 26, 2025, that revised the methodology for computing RA MPB, extending the RA MPB transactional survey time frame to 3 and 4 years from 12 and 21 months for forecast and final RA MPBs, respectively. RPS prices and RA costs are highly volatile compared to the past, creating an additional layer of uncertainty in forecasting PCIA and PG&E generation rates.
PG&E’s forecast of 2026 rates in the ERRA filing made in May 2025 shows a higher PG&E Generation Rate of ~12.79 cents/kWh and a lower PCIA of 1.19 cents/kWh compared to the staff estimates used for forecasting revenues. PG&E’s filing, however, is based on results using market prices in late March 2025 and 2025 forecast RA and RPS MPBs set in November 2024. Forward market prices for RA and RPS have since decreased significantly. Based on the ERRA filing schedule, PG&E will update its rate forecast in early fall, and the CPUC is expected to approve new rates in late December.
Given the uncertainty on MPBs that CPUC will establish in the fall and PG&E’s update of its generation rates and PCIA using the MPBs, staff recommends that SVCE update the revenue projections in December 2025 when there’s more certainty on the 2026 PCIA and PG&E generation rates. Between now and when the rates are finalized, market prices will change, which can create less or more favorable results.
The Proposed Budget maintains the current 4 percent overall discount relative to comparable PG&E generation rates for all customers through the end of December 2025, or three months of the FY 26 (October 2025 to December 2025), and reduces it to one percent starting January 2026. It provides an additional monthly dollar bill credit to CARE and FERA customers (~26,000) that, in the aggregate, is equivalent to providing a 1 percent discount for all customers for calendar year 2026.
SVCE customer rate changes usually coincide with PG&E's generation rate changes. Usually, this happens in January, with some exceptions, such as in 2024, when PG&E also changed its generation rates in July. SVCE’s fiscal year includes three months of the current calendar year, from October 2025 to December 2025, and nine months of the next calendar year, from January 2026 to September 2026. As a result, the budget includes the delivery of the 2025 monthly bill credit of $17.50 for three months and the delivery of the 2026 monthly bill credit of ~$12.00 for nine months, which amounts to a total revenue reduction of ~$4.1 million.
Staff will update the 2026 monthly bill credit amount when seeking Board approval of 2026 rates at the December 2025 meeting, along with amending the budget for updates to the revenue and power supply cost projections. Because last fiscal year’s budget included a transfer of funds from the operating budget, any remaining funds for these bill credits will be transferred to the reserves at the beginning of FY 2026.
The GreenPrime rate, SVCE’s 100% renewable energy option, will reflect the default GreenStart rates plus the premium of $0.017 per kWh, as per the methodology adopted by the Board at the November 2024 Board meeting. This rate will continue to apply to the three months of 2025, from October to December, of the new fiscal year. The GreenPrime premium for 2026 will be updated when the Board approves all rate updates for 2026, which is expected to occur at the December 2025 meeting. The GreenPrime premium revenue estimates for FY 2026 are computed at the current GreenPrime premium of $0.017 per kWh.
The Proposed Budget continues to reduce revenues to account for potential write-offs from unpaid bills that may occur. SVCE’s estimated revenues include a 0.75% write-off rate, or about $2.7 million.
Power Supply Expenses
Relative to the Mid-Year Budget’s Fiscal Year 2025, Staff projects that Fiscal Year 2026’s new budget power supply expenses will increase by approximately $19.4 million. The year-over-year projected increase primarily results from 11% higher energy market prices, changes to portfolio position, and complying with CPUC’s Mid-Term Reliability requirements.
Reserves Target Levels and Policy Update
Per SVCE’s Board-approved reserves policy, the staff annually reviews the reserve target levels and the policy (Attachment 2) to ensure reserves are managed prudently relative to the risks the agency faces. As part of Item 6
Agenda Item: 6 Agenda Date: 8/13/2025
this process, staff presented the stress test analyses to the Board at the June 11, 2025, meeting. A big part of the staff’s assessment of reviewing the targets and the policy is to ensure that SVCE can manage risks modeled in the stress test analysis. In particular, the targets are reviewed to assess if the modeled stress scenario were to occur, the target reserves do not fall below 120 days of cash on hand (DCOH) for the next two fiscal years, and the maximum target (upper target) does not fall below 90 DCOH over the next five fiscal years.
Based on the stress test analysis, staff does not recommend any changes to the targets or the policy.
Changing the targets has no practical implication, given that the 5-year financial outlook (Attachment 3) does not support contributing to reserves. The current targets also support the recent guidance from the credit rating agencies.
The current Financial Reserves Policy, approved by the Board on September 11, 2024, targets:
(a) Minimum Operating Reserve (baseline) shall be the minimum maintained to cover 120 days of operations of the annual operating budget;
(b) An Operating Reserve goal of covering 350 days of operations of the annual operating budget; (c) Maximum Operating Reserve to cover 500 days of operations of the annual operating budget.
Operating Expenses
Operating expenses have increased by about $3.9 million from the March 2025 Board-approved Midyear FY 2024-2025 adjusted budget, including an overall 5 percent contingency, which amounts to about $2.1 million embedded in all operating expense category increases. The increase in projected operating expenses is mainly comprised of costs associated with legal and energy scheduling coordination expenses.
1. Data Management
The budget accounts for an annual calendar-year escalation percentage as indicated in the current vendor contract. The proposed budget accounts for the escalation for the nine months in 2026.
2. PG&E Fees
Staff is expecting a modest increase due to inflation starting in 2026. The proposed budget reflects the slight increase in monthly fees for the nine months in 2026.
3. Personnel Expenses
Personnel expenses are increasing slightly by $66 thousand. The proposed budget includes a 3.0% cost-of-living adjustment to salaries, based on the latest trailing six-month average for the Bay Area CPI, updated as of May 13, 2025, for data up to April 2025, which adds $564 thousand. There is also a re-categorization of consultant support, which results in a decrease of $400 thousand from Personnel expenses. This expense is reallocated to the Professional Expenses category. On staffing, the budget proposes no increase in headcount. The overall slight increase in personnel budget results from the net effect of the abovementioned changes, as well as some staff moving to positions at different pay levels, promotions, and vacancies. There are still vacant positions that SVCE continues to work to fill and anticipates full staffing by the end of the calendar year. The proposed budget continues to utilize a 5% long-term vacancy rate in the personnel budget. The current focus is to fill the remaining vacancies and comprehensively assess overall organizational staffing needs. This report includes the proposed salary table (Attachment 4) and organization charts (Attachment 5).
4. Professional Expenses
Overall, professional expenses are increasing by about $3.1 million. The main increase is due to anticipated increases in legal fees on contracting and negotiation support for SVCE’s growing power portfolio, roughly about $1.7 million. In addition, an increase of $875 thousand is due to the transition of scheduling coordinator functions to a new vendor, and incremental costs associated with new PPAs expected to come online in the next fiscal year. The costs are consistent with the vendor agreements approved by SVCE’s Board of Directors. Further, per the Board-approved investment manager Item 6
Agenda Item: 6 Agenda Date: 8/13/2025
agreement, there is a $120 thousand increase in investment manager service fees due to the higher reserves accumulated over the past few years. As mentioned in the personnel expenses section, $400 thousand in consultant fees is allocated from personnel expenses to professional expenses, to align with accounting cost categories.
5. Marketing and General Administrative
Overall expenses are increasing by about $462 thousand. This increase of $250 thousand will support increasing engagement with non-residential customers and plans to offer bespoke support to key accounts for which external vendor support will be required. An additional $212 thousand is included for new capacity being brought on to support increased projects and new initiatives. This includes the ongoing work to support the outreach and education for affordability and rates, with added communications tools such as animated videos and an online rate tool. Staff is also planning to bring on a communications and marketing consulting firm to support the breadth of programs and initiatives. These contracts are expected to be brought to the board for approval in September.
6. General & Administrative
Overall, there is a slight increase of approximately $9,000. Some decreases are due to subscription cancellations, renewal of existing software with updated rates, and reduced office rental expenses because of a shorter expected rental period. Some increases are also due to ongoing operating costs for the new office building; staff anticipate moving to the new office in Q3 2026.
Employee Benefits
During the CEO Report update at the December 11, 2024, Board of Directors meeting, staff informed the Board that SVCE was able to secure rate improvements for life insurance, short-term and long-term disability plans, as well as dental and vision coverage. The savings from these rate improvements will be passed on to employees to cover the out-of-pocket premiums for dental and vision. As a result, dental and vision are now 100% covered starting January 2025, allowing employees to select better medical insurance plans with the $1500 per employee per month employer premium contribution. The proposed budget continues to include dental and vision coverage moving forward. Staff recommends no changes to the current benefits, which will remain in effect for FY 26 (Attachment 6).
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 $27 million, with an additional spend of $964 thousand from the Customer Relief and Community Resilience Program (CRCR)
7 Fund, and $500 thousand in the E-Elec (all-electric) Fund, the all-electric rate discounts. 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. 9 The Board approved the office building fund of $20M in March 2024 when adopting the FY23-24 Midyear adjusted budget.
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Agenda Item: 6 Agenda Date: 8/13/2025
Non-Operating Revenues
Investment income is projected to increase by $1.7 million, reflecting the increase in interest earned on the prior accumulated reserve balance.
Non-Operating Expenses
The proposed budget expects non-operating expenses to increase by about $16 thousand from the FY2024-25 adjusted mid-year budget. The increase reflects the newly CPUC-adopted method for Provider of Last Resort (POLR) collateral calculations and the bank fees associated with its respective Financial Security Requirement (FSR) posting amount.
Capital Projects
The office building purchase was completed in February 2025. Staff plans to utilize the remaining Office Building Fund9 balance for renovation and upgrades needed. Other ongoing facility operating costs and capital purchases, such as office furniture, have been separately included in this proposed budget as Operating Expenses and Capital Outlay. Staff will continue to evaluate the timeline and seek further approval for the renovation-related budget as needed. The latest projection is to move to the new office building around Q3 of 2026. A complete list of capital projects is provided in Attachment 7.
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.”
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 FY25-26 Operating Budget includes $358.4 million in revenues and $398.5 million in expenses, non-operating revenues, and transfers, reducing reserves by $40.1 million.
ATTACHMENT
1. FY 2025-26 Proposed Operating Budget
2. Financial Reserves Policy
3. Proposed 5-year Financial Forecast
4. FY 2025-2026 Proposed Salary Table
5. FY 2025-2026 Proposed Organization Chart
6. FY 2025-2026 Benefits Table
7. Capital Projects Report
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SILICON VALLEY CLEAN ENERGY
FY25-26 OPERATING BUDGET
($ in thousands)
FY 2024-25 FY25-26
MID-YEAR
ADJUSTED ANNUAL
DESCRIPTION BUDGET BUDGET $ %
ENERGY REVENUES
Energy Sales 521,650 360,057 (161,593) -31.0%
Green Prime 1,884 2,469 585 31.1%
Customer Bill Relief (Existing CARE/FERA) 0 (4,110) (4,110) 0.0% Other Income 0 0 0 0.0%
TOTAL ENERGY REVENUES 523,534 358,416 (165,118) -31.5%
ENERGY EXPENSES
Power Supply 349,478 368,896 19,418 5.6%
OPERATING MARGIN 174,056 (10,480) (184,536) -106.0%
OPERATING EXPENSES
Data Management 3,549 3,764 215 6.0%
PG&E Fees 1,516 1,569 52 3.4%
Salaries and Retirement 18,805 18,870 66 0.3%
Professional Services 7,797 10,902 3,105 39.8%
Marketing & Promotions 1,885 2,347 462 24.5%
General & Administrative 5,733 5,742 9 0.2%
TOTAL OPERATING EXPENSES 39,284 43,193 3,909 9.9%
OPERATING INCOME (LOSS) 134,771 (53,673) (188,445) -139.8%
NON-OPERATING REVENUES
Interest Income 19,756 21,413 1,657 8.4%
TOTAL NON-OPERATING REVENUES 19,756 21,413 1,657 8.4%
NON-OPERATING EXPENSES
Financing 12 29 16 129.4%
TOTAL NON-OPERATING EXPENSES 12 29 16 129.4%
TOTAL NON-OPERATING INCOME (EXPENSES) 19,743 21,384 1,641 8.3% CHANGE IN NET POSITION 154,515 (32,289) (186,803) -120.9%
CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER
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 0.0%
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 6
Attachment 1
Effective on 9/11/2024
Finance Policy 9: Financial Reserves
I. Purpose
This Reserve Policy outlines the appropriate types and levels (minimum, goal, and maximum) of financial reserves as prescribed in the following policy. The primary reason for a reserve policy is to be prepared for contingencies, but other reasons also exist. Seven important purposes of a reserve policy are as follow:
• Plan for contingencies. To maintain sufficient reserves to minimize rate increase due to market volatility (power supply shocks or maintain rate competitiveness), weather impacts on demands, economic downturns, emergencies (such as natural disasters), and regulatory changes. • Maintain good standing with rating agencies. By maintaining sufficient reserves, SVCE can preserve good credit ratings, allowing it to secure power at lower costs, that is, without posting credit enhancements, in the energy markets.
• Avoid interest expense. To avoid interest expense to cover short-term cash shortfalls by having sufficient reserves to use for this purpose, rather than debt.
• Ensure cash availability when revenue is unavailable. To bridge times of the year that normally see temporary low levels of cash. • Plan for anticipated future rate increases by gradually raising those rates, using reserves to cushion the full impact on customers over an extended time period. For example, if it is expected that rates are highly likely to increase in 3 to 5 years, higher reserves on hand can cushion those rate increases over a more gradual timeframe by drawing down on the accumulated funds that may be in excess of the reserves’ goal. • Manage the risks identified in the Energy Risk Management Policy, which are:
o Market price risk,
o Net revenue risk,
o Counterparty credit and performance risk,
o Load and generation volumetric risk,
o Operational risk,
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Attachment 2
SILICON VALLEY <3/ CLEAN ENERGY
Effective on 9/11/2024
o Liquidity risk, and
o Regulatory/legislative risk.
• Establish clear expectations between the Board of Directors and staff. A formal reserve policy creates a shared understanding of the proper level and use of reserves.
II. Policy
A. Financial reserves shall be set aside as follows:
The Reserve targets cover the operations of SVCE over a number of days in the event of emergencies or other significant unforeseen events.
Three levels are defined, with the first being baseline. Given the purposes stated above, the Reserve shall be maintained at no less than the minimum described below. The operating reserve level described below is recommended as the goal. The Maximum reserve level described below would provide solid reserves for significant fluctuations in revenue or unforeseen circumstances. The Board shall review its reserve levels annually in context of SVCE’s overall financial condition of the agency, as well as due to changes to the industry and/or risk factors as described in periodic review of targets below. o Minimum Operating Reserve (baseline) shall be the minimum maintained to cover 120 days of operations of the annual operating budget;
o An Operating Reserve goal of covering 350 days of operations of the annual operating budget;
o Maximum Operating Reserve to cover 500 days of operations of the annual operating budget.
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Attachment 2
SILICON VALLEY <3/ CLEAN ENERGY
Effective on 9/11/2024
B. Conditions for Use of Reserves
• For purposes of this policy, use of reserves is defined as a projected or estimated1 reduction in reserves by fiscal year-end. A temporary reduction in cash consistent with the expected peaks or dips in revenues and expenditures are normal cyclical occurrences to be expected during the fiscal year, and do not constitute a use of reserves. • The reserves may be drawn down upon by the CEO during the year, up to the lesser of 10% of the year’s budgeted cost of power supply, or $30 million, to:
o Cover increases in power supply expenses due to spikes in costs and/or due to higher customer demand;
o Provide necessary funds to make up for unanticipated revenue shortfalls;
o Meet any margin or collateral posting requirements under energy supply contracts; and,
o Provide resources to meet emergency expenditures.
• If further use of reserves are needed to manage the operations of the organization, or if the use of reserves would bring the balance below the Minimum Operating Reserve baseline, the CEO must present recommendations to the Board and the Board must authorize any such use.
C. Replenishment of Reserves
• Should SVCE drawdown reserves below the Minimum Operating Reserve level, SVCE will consider plans to return reserves to their minimum targets within two (2) fiscal years. Such plans will be provided in subsequent budget and rate discussions with the Board.
1 It is not practical to wait the formal fiscal year end closing of the accounting records to determine if the reserves have been “used”. Therefore, it is appropriate for staff to estimate reserve levels, with the important amount being what is estimated for fiscal year end.
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Attachment 2
SILICON VALLEY <3/ CLEAN ENERGY
Effective on 9/11/2024
D. Excess Reserves
• If reserve funds are projected to exceed the maximum level, the CEO shall present options for consideration by the Board of Directors for proper disposition of those reserves during the next budget cycle. In computing excess reserves, the reserve balance will be reduced for earmarked funds or allocated but unspent funds.
E. Reserves between Minimum and Maximum
• To the extent that reserves are above target and below the maximum, no other action by SVCE would be required.
F. Periodic Review of Reserve Goals
• Reserve goals shall be periodically reviewed for consistency with industry standards. If significant risk factors are eliminated or significant new risks emerge as a result of changes in the industry, legislation, or economic conditions, the basis of the reserve policy shall be reviewed, and the funding level shall be adjusted accordingly. Unless the Reserves are approaching minimum levels, formal Reserve funding discussions with the Board may await the next budget process.
G. Reporting
• Reserve levels will be monitored during the fiscal year and reported in the quarterly financial reports. Reserve target levels (minimum and maximum) will be analyzed annually, and over/under reserve determination shall be made in conjunction with year-end financial results. These results will be reported to the Board of Directors as part of the year-end financial report presentation.
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Attachment 2
SILICON VALLEY <3/ CLEAN ENERGY
($ 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 6
Attachment 3
Title Minimum Salary
(Annual $)
Maximum Salary
(Annual $)
$ 108,355 $ 185,595
$ 72,236 $ 114,648
$ 108,355 $ 170,171
$ 129,103 $ 185,811
$ 94,405 $ 143,419
$ 90,294 $ 146,622
$ 144,471 $ 208,108
$ 101,898 $ 158,986
$ 144,471 $ 219,593
$ 228,746 $ 381,448
$ 94,405 $ 143,419
$ 144,471 $ 215,886
$ 78,255 $ 127,891
$ 129,103 $ 190,592
$ 136,296 $ 198,649
$ 144,471 $ 208,108
$ 108,355 $ 185,595
$ 185,809 $ 291,983
$ 204,202 $ 320,864
$ 192,644 $ 302,702
$ 192,644 $ 302,702
$ 192,644 $ 302,702
$ 192,644 $ 302,702
$ 192,644 $ 302,702
$ 192,644 $ 302,702
$ 218,360 $ 327,540
$ 192,644 $ 302,702
$ 192,644 $ 302,702
$ 192,644 $ 302,702
$ 144,471 $ 220,555
$ 181,225 $ 275,458
$ 161,808 $ 245,944
$ 94,405 $ 143,420
$ 179,204 $ 264,330
$ 156,511 $ 245,944
$ 108,355 $ 185,595
$ 192,644 $ 302,702
$ 108,355 $ 185,595
$ 132,432 $ 208,108
$ 180,590 $ 245,944
$ 132,432 $ 208,108
$ 94,405 $ 143,419
Administrative Analyst
Administrative Assistant
Associate Data Analyst
Associate Data Scientist
Associate Financial Analyst
Associate Legislative Analyst
Associate Manager of Decarbonization Programs and Policy Associate Power Analyst
Associate Power Resources Planner
CFO
Communication Specialist
Communications Manager
Community Outreach Specialist
Data Analyst
Data Engineer
Data Scientist
Deputy Board Clerk/Administrative Assistant
Deputy Director of Marketing and Communications Deputy
Director of Power Resources
Director of Customer Success
Director of Decarbonization Policy and Community Strategies Director of Energy Services & Community Relations
Director of Government and Legislative Affairs
Director of Human Resources
Director of Operations
Director of Power Resources
Director of Regulatory, Policy and Planning
Director of Risk Management and Analytics
Director of Strategic Development
Energy Services Lead
Energy Services Manager
Energy Services Principal
Energy Services Specialist
Energy Trading Manager
Energy Trading Planner
Financial Analyst
General Counsel
Human Resources Analyst
Human Resources Generalist
Human Resources Manager
IT Analyst
IT Support Specialist
Management Analyst/Admin $ 132,432 $ 208,108
FY25-26 Salary Chart
Item 6
Attachment 4
Title Minimum Salary
(Annual $)
Maximum Salary
(Annual $)
FY25-26 Salary Chart
Manager of Data and Analytics $ 185,227 $ 275,457
Manager of Decarbonization Programs $ 156,511 $ 245,944 Manager of Finance $ 164,337 $ 249,730
Manager of Technology and Admin Services $ 164,337 $ 249,730 Marketing Lead $ 144,471 $ 220,555
Marketing Specialist $ 78,255 $ 127,891
Policy Analyst $ 108,355 $ 185,595
Power Analyst $ 114,125 $ 178,064
Power Contracts & Settlements Manager $ 180,590 $ 283,783 Power Resources Manager $ 180,590 $ 283,783
Power Resources Planner $ 156,511 $ 245,944
Power Settlements and Compliance Analyst $ 132,432 $ 208,108 Power Settlements Manager $ 179,204 $ 264,330
Power Settlements Planner $ 156,511 $ 245,944
Principal Data Engineer $ 156,511 $ 249,185
Principal Data Scientist $ 175,292 $ 261,051
Principal Policy Analyst $ 156,511 $ 232,810
Principal Power Analyst $ 143,158 $ 223,363
Program Marketing Manager $ 144,471 $ 215,886
Programs Lead $ 144,471 $ 220,555
Programs Specialist $ 90,294 $ 146,622
Rates Manager $ 164,337 $ 245,944
Regulatory & Compliance Manager $ 156,511 $ 245,944
Regulatory Analyst $ 126,413 $ 185,595
Senior Board Clerk/Executive Assistant $ 132,432 $ 220,555 Senior Communications Specialist $ 94,405 $ 160,629
Senior Data Analyst $ 144,471 $ 213,463
Senior Data Engineer $ 152,651 $ 222,486
Senior Data Scientist $ 156,511 $ 233,081
Senior Energy Services Specialist $ 108,355 $ 160,630
Senior Financial Analyst $ 144,471 $ 208,108
Senior Government Affairs Manager $ 192,644 $ 264,330
Senior IT Analyst $ 145,675 $ 228,919
Senior Management Analyst $ 144,471 $ 228,919
Senior Manager of Communications $ 165,901 $ 260,700
Senior Manager of Decarbonization Programs and Policy $ 165,901 $ 260,700 Senior Manager of Power Resources $ 192,644 $ 302,702
Senior Manager of Technology and Administrative Services $ 184,057 $ 278,802 Senior Marketing Specialist $ 94,405 $ 143,419
Senior Policy Analyst $ 126,413 $ 207,866
Senior Power Analyst $ 127,820 $ 199,432
Senior Power Resources Planner $ 192,644 $ 275,458
Senior Programs Specialist $ 108,355 $ 164,217
Item 6
Attachment 4
Title Minimum Salary
(Annual $)
Maximum Salary
(Annual $)
FY25-26 Salary Chart
Senior Programs Specialist $ 109,558 $ 179,905
Senior Public Sector Services Manager $ 165,901 $ 260,700 Senior Quantitative Analyst $ 144,471 $ 213,463
Senior Rates Analyst $ 144,471 $ 208,108
Senior Regulatory Advisor $ 132,432 $ 208,108
Senior Regulatory Analyst $ 132,432 $ 208,108
Senior Regulatory Analyst & Associate General Counsel $ 144,471 $ 220,555 Wholesale Energy Markets Manager $ 179,204 $ 264,330
Wholesale Energy Markets Planner $ 156,511 $ 245,944
Item 6
Attachment 4
Item 6
Attachment 5
FY25-26 Proposed Budget Organization Chart (Exec, Finance, PRO, Operations) CEO
Chief Financial OfficerDirector of Power
Resources
General Counsel
Manager of
Finance
Director of
Risk Management
and Analytics
Deputy
Director of
Power
Resources
Wholesale Market
Planner
Power
Analyst
Power
Resource Manager
Power
Supply
Program
Manager
Rotational
Power Analyst
Associate
Finance,
Risk, and
Data Analyst
Administrative
Analyst
Senior
Quantitative Analyst
Senior
Financial
Analyst
Senior
Financial
Analyst
Manager of
Data &
Analytics
Data
Engineer
Senior
Quantitative Analyst
Power
Settlements
Planner
Power
Settlements
and Compliance
Analyst
Regulatory &
Compliance Manager
Power
Resources
Planner
Associate
Power
Analyst
Clean
Energy
Internal Operations
Intern
Energy
Trading
Planner
Sr. Board
Clerk/Executive
Assistant
Director of Human
Resources
Director of Operations
Deputy Board
Clerk/Administrative
Assistant
HR Admin Assistant Senior
Information
Technology
Analyst
Information
Technology
Support
Specialist
Project
Coordinator
Sr. Manager of
IT and Admin
Services
Associate
Data
Scientist
Data &
Analytics
Intern
Senior Data
Engineer
Item 6
Attachment 5
FY25-26 Proposed Budget Organization Chart (Exec, CS, RPPL) CEO
Director of Customer
Success
Director of
Regulatory,
Policy and
Planning
Director of Government and
Legislative
Affairs
Director of Decarbonization
Policy and
Community
Strategies
Decarbonization Management
Analyst
Manager of
Decarbonization
Programs and
Policy
Energy Services ManagerEnergy Services Manager
Senior Programs
Specialist
Programs Lead Programs Lead Programs Lead Communications Consultant
Energy Lead Energy Services
Specialist
Energy Services
Specialist
Sr. Energy
Specialist
Community Outreach
Specialist
Electric Project
Cost Analyst
Intern
Climate Corp
Fellow
Deputy Director
of Marketing and
Communications
Internal
Operations
Program
Manager
Sr. Regulatory Senior Power Resource Forecasting and
Analyst & Regulatory Planner Planning Analyst
Associate Advisor General Counsel
Communications Manager
Program
Marketing Manager
Communications
Specialists
Marketing
Specialist
Senior Marketing
Specialist
Marketing Lead
Climate Corp
Fellow
Senior Community
Strategies
Specialist
Senior Manager of
Public Sector
Services
Technical Manager
of Decarbonization
Planning &
Strategy
Decarbonization &
Community
Strategies Lead
Climate Corp Fellow
2025 Benefits Summary
333 W El Camino Real, Suite 330 | Sunnyvale, CA 94087 | 1-844-474-SVCE (7823) | SVCleanEnergy.org Campbell | Cupertino | Gilroy | Los Altos | Los Altos Hills | Los Gatos | Milpitas | Monte Sereno | Morgan Hill | Mountain View | Saratoga | Sunnyvale | Unincorporated Santa Clara County Benefit Details
Health Insurance
Employer Premium Contribution SVCE provides up to $1,500 per month to cover the employee and dependent medical insurance premiums.
Medical Coverage is provided through the CalChoice marketplace, and currently includes the following options:
Kaiser – HMO plans
Sutter Health – HMO plans
Anthem Blue Cross – PPO plans
Cigna –EPO G
Dental Delta Dental PPO – 100% Employer Paid
Vision Vision PPO Plan – 100% Employer Paid
Retirement
401 (a) Plan Mandatory 10% employee contribution matched by 10% employer contribution in lieu of Social Security. Fully vested from date of hire. 457 (b) Deferred Compensation Voluntary pre-tax employee contributions up to annual IRS limits.
HRA -or- HSA
Health Reimbursement Account SVCE contributes $500 / month towards a Health Reimbursement Account that the employee can use for qualified health care expenses. Unused balances can be carried over to the next year.
Health Savings Account
(only with eligible High Deductible
Health Plans)
SVCE contributes up to $400 / month towards a Health Savings Account that the employee can use for qualified health care expenses. Balance can be invested and stays with employee after separation.
FSA – Health / Dependent Care / Transportation / Parking Employer Contribution SVCE contributes $200 / month towards flexible spending accounts that can be used for qualified expenses in the categories below. Employee can contribute additional funds up to the IRS limits.
Health Spending Account Employee can annually contribute up to $3,200 pre-tax to their Health FSA. A maximum of $660 rolls over for 2025.
Dependent (Child / Elder) Care
Assistance
Employee can annually contribute up to $5,000 pre-tax to their Dependent Care account. Funds do not roll over.
Transit / Parking Plan Non-taxable reimbursement of up to $315 per month for qualified transit and parking expenses, all funds roll over as long as you remain eligible Health / Wellness
Fitness Reimbursement Program SVCE will reimburse up to $600 / year for qualified fitness expenses (class / program / equipment) per year. This reimbursement will accrue annually up to $3000.
Professional Development
Tuition Reimbursement Program SVCE will reimburse up to $5,000 / year for qualified educational advancement that supports the organization’s mission.
Employee Rebate Reimbursement
SVCE Employees are eligible to
receive the same rebate benefits as
its customers
SVCE rebates are available for single-family homes, accessory dwelling units (ADUs), and multi-family homes (4 dwelling units or fewer) swapping out existing equipment, not for completely new building construction. Each dwelling unit is eligible for one rebate per appliance type.
Item 6
Attachment 6
SILICON VALLEY \3/ CLEAN ENERGY
2025 Benefits Summary
333 W El Camino Real, Suite 330 | Sunnyvale, CA 94087 | 1-844-474-SVCE (7823) | SVCleanEnergy.org Campbell | Cupertino | Gilroy | Los Altos | Los Altos Hills | Los Gatos | Milpitas | Monte Sereno | Morgan Hill | Mountain View | Saratoga | Sunnyvale | Unincorporated Santa Clara County Miscellaneous
Short Term Disability Insurance STD provided at 60% of weekly earnings subject to terms of STD insurance carrier and cap based on salary.
Long Term Disability Insurance LTD provided at 60% of monthly earnings subject to terms of LTD insurance carrier and cap based on salary.
Term Life Insurance 100% Employer-paid for 1X base salary with minimum guarantee at $200,000 life and AD&D coverage.
Employee Assistance Program (EAP) 100% Employer-paid confidential counseling for you and your immediate family member and work/life services assistance.
Hybrid Work Set up One time $500 reimbursable for home office set up.
Technology Stipend $50 monthly stipend for phone and $70 internet connection costs Voluntary Term Life and AD&D Rates
Voluntary term life monthly rate Voluntary term life rates do not include the AD&D rate. The spouse is charged based upon his/her individual age.
Child(ren) monthly rate: $10,000 of coverage for $2.00 per family Voluntary Accidental Death and
Dismemberment (AD&D) monthly rate
Employee and spouse $.039
Leave
Vacation Leave SVCE offers 160 hours of Paid Time Off (PTO) that is accrued bi-weekly for the first year. PTO includes vacation, sick, etc.
After the first-year anniversary date, an additional 8 hours will be granted per year up to the tenth year of employment.
All unused PTO at the end of the year can be carried over to a maximum of twice the annual accrual.
Exempt employees receive an additional 40 hours of Management Leave at the beginning of each calendar year, which does not carry over to the next year.
Holidays 13 days (104 hours) per year.
New Year’s Day
Martin Luther King Jr.’s Birthday
Presidents’ Day
Cesar Chavez Day
Memorial Day
Juneteenth
Independence Day
Labor Day
Veteran’s Day
Thanksgiving (2 days)
Christmas Day
Floating Holiday (does not accrue, use annually)
Administrative Shut-Down Leave Christmas Day though New Year’s Day Bereavement Leave Up to 5 days paid bereavement leave in the event of a death in your immediate family.
Parental Leave 240 hours of paid parental leave, eligibility at the CEOs discretion Item 6
Attachment 6
SILICON VALLEY \3/ CLEAN ENERGY
Description Account Date Cost Life
(months) Depreciation Operating Cost/Revenue Impact
Effect on
Operations/
Reliability
Consequence of not
funding the Capital Project Source of Funding On-going Impact to Operational Budget January 2025 - Stage 1 Initial Roof Inspection - Building finalized in February 2025
Construction in
Progress 01/31/2025 $ 3,000 480 not in service yet
None (allocated towards Office
Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast January 2025 - deposit for stage 1 initial roof inspection -Building finalized in February 2025
Construction in
Progress 01/31/2025 $ 1,000 480 not in service yet
None (allocated towards Office
Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast Office Building on 298 South Sunnyvale Avenue, Sunnyvale CA 94086 Building 02/20/2025 $ 7,000,000 480 not in service yet
None (allocated towards Office
Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast LAND Office Building on 298 South Sunnyvale Avenue, Sunnyvale CA 94086 Land 02/20/2025 $ 4,500,000 N/A Land not in service yet
None (allocated towards Office
Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast May 2025 - Sunnyvale HQ - Construction Project Management Services Construction in Progress 05/31/2025 $ 20,000 480 not in service yet
None (allocated towards Office
Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast New Office Space Expenditures for 298 S Sunnyvale Fixture 09/01/2026 $ 462,000 84 not in service yet
Listed in FY25-26 Proposd
Budget Capital Expenditure N/A Need to fulfill staff office space needs FY25-26 Proposed
Operating Budget
One-time Capital cost in
FY25-26 budget
*Furniture depreciates at 84 months
*Software / electronics depreciate at 36
month
Capital Projects Report
Item 6
Attachment 7
Staff Report – Item 7
Item 7: Introduction to Fiscal Year 2025-26 Strategic Focus Areas and Strategic Plan From: Monica Padilla, CEO
Prepared by: Andrea Pizano, Sr. Executive Assistant and Board Clerk Date: 8/13/2025
RECOMMENDATION
Staff recommends the Silicon Valley Clean Energy (SVCE) Board of Directors (“Board”) provide feedback on the proposed Strategic Focus Areas (SFAs) and Strategic Plan Goals (“Strategic Plan”) and consider changing the review and updating of the Strategic Plan to biennial starting in fiscal year 2025-26 (FY 25-26). Staff will bring the updated Strategic Plan to the Board in September 2025 for approval.
EXECUTIVE COMMITTEE REVIEW
During initial review of the SFAs with the Executive Committee in May 2025, staff reviewed preliminary thoughts on the progress made to date, challenges, and opportunities of each of the current five focus areas:
• SFA1: Expand Affordability Efforts
• SFA2: Expand Clean and Reliable Grid Actions
• SFA3: Expand Offerings to C/I Customers
• SFA4: Prepare Region for Electrification at Scale
• SFA5: Attract & Retain Employees
Though many SFAs are in good position, there was consensus that the existing SFAs are still relevant and there is additional work to be done.
Given these focus areas and goals remain relevant, it was suggested to staff during the Executive Committee meeting that the Strategic Planning process move to every two years as opposed to annually. The SFAs and Strategic Plan goals would remain the same, but the associated measures and workplans could change internally to adapt to the needs of the fiscal year.
BACKGROUND
Annually, coinciding with the development of the operating budget, staff goes through a process of reviewing external changes in the landscape, threats, opportunities, new directives and priorities. Through this effort a review of the current Board-approved Strategic Plan (including the agency’s mission), is conducted to ensure that priorities, goals and resources are properly aligned. At its September 2024 meeting, the Board adopted the Fiscal Year 2024-25 Strategic Plan (September 11, 2024 Board of Directors Meeting – Item 4).
In April 2025 staff kicked-off the process for reviewing the current Strategic Plan and concluded that while much progress has been made in implementing the Strategic Plan, much work is still needed in many areas and therefore the current Strategic Plan remain valid.
Item 7
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item:
7 Agenda Date: 8/13/2025
ANALYSIS & DISCUSSION
Given the feedback received from the Executive Committee in May 2025, along with staff’s own assessment of the existing Strategic Plan, only minor changes are being proposed to the Strategic Plan. Further, staff believes the Strategic Plan is durable for two years, through fiscal year 2026-27 and therefore concurs with the Executive Committee’s recommendation to move to a biennial cycle. Staff will present the changes for Board feedback at the August 13, 2025 Board meeting and incorporate such feedback for adoption at the September 2025 Board meeting.
Figure 1 is a summary of the process.
STRATEGIC PLAN
The strategic planning process is relevant to the overall Strategic Plan, specifically Goal 9 to “Implement industry best practices to enable data-driven decision making across the organization; enhance systems, standards and procedures to streamline business processes and improve operational effectiveness and reliability (aka SVCE 3.0)”.
ALTERNATIVE
Staff is open to suggestions from the Board regarding frequency of review and the overall planning process.
FISCAL IMPACT
N/A
Item 7
Strategic Plan -SFA & Goals
May 2025 Sep 2025
April 2025 August 2025
Board
Discussion on
SFAs & Goals
EC Review SR
Board
Approval of
FY 25-26
Strategic Plan
Executive
Com
Feedback on
SFAs
ERM
Internal Staff
Review of SP
Staff Report – Item 8
Item 8: Local Agency Action Planning Update
From: Monica Padilla, CEO
Prepared by: Zoe Elizabeth, Director of Decarbonization Policy and Community Strategies Date: 8/13/2025
RECOMMENDATION
Staff requests that the Silicon Valley Clean Energy (SVCE) Board of Directors (“Board”) receive an update on the Local Agency Action Planning initiative that supports member agency efforts to electrify existing buildings and modernize permitting.
BACKGROUND
In late 2023, SVCE launched two complementary programs to help member agencies sensibly expand the decarbonization of local buildings and prepare for upcoming rules that will limit the sale of gas appliances. The two programs, Permit Modernization and Policy Experimentation provide $4M in technical resources and support to help member agencies adopt local policies and improve permit practices that enable the adoption of local policies that support the transition to fossil-free buildings.
Staff is supporting member agencies with core technical assistance and developing customized plans that meet each jurisdiction's unique needs and goals. These efforts will be discussed in more detail at the Board meeting.
ANALYSIS & DISCUSSION
SVCE staff will address the analysis as a presentation to the Board.
STRATEGIC PLAN
The proposal supports SVCE’s Strategic Plan Goal 7, “Support all SVCE communities to decarbonize through local investments that reduce barriers and demonstrate sensible, scalable, and equitable solutions.”
FISCAL IMPACT
N/A
ATTACHMENT
The presentation for this item is posted to the SVCE website.
Item 8
SILICON VALLEY \3/ CLEAN ENERGY