• Subtitle
New SV Clean Energy
PowerPoint Template
Proposed Updates to SVCE
Operating Rules and Regulations
September 10, 2025
Item 3
PRESENTATION
SILICON
CLEAN
2 SVCE Operating Rules and Regulations
• Initially adopted June 2016
• Consists of bylaws,
regulations and procedures
governing the operation of
SVCE
• Latest update was May 2023
• At the 4/22 Exec Committee
and the 5/14 Board meeting,
an Ad Hoc Subcommittee
(Tyson, Klein, Showalter) was
approved to create updates
Item 3
PRESENTATION
SILICON VALLEY CLEAN ENERGY AUTHORITY
OPERATING RULES AND REGULATIONS
ARTICLE I
FORMATION
The Silicon Valley Clean Energy Authority (the “Authority”) was established on March 31, 2016 pursuant to the execution of the Silicon Valley Clean Energy Authority Joint Powers Agreement (the “Agreement”) by the County of Santa Clara, the Cities of Campbell, Cupertino, Gilroy, Los Altos, Monte Sereno, Morgan Hill, Mountain View, Saratoga and Sunnyvale and the Towns of Los Altos Hills and Los Gatos. The members of the Authority are referred to as Party or Parties in these Operating Rules and Regulations. As defined by the Agreement, these Operating Rules and Regulations consist of rules, regulations, policies, bylaws and procedures governing the operation of the Authority.
ARTICLE II
PURPOSES
The Authority is formed to study, promote, develop, conduct, operate, and manage energy and energy-related climate change programs, and to exercise all other powers necessary and incidental to accomplishing this purpose. These programs include but are not limited to the establishment of a Community Choice Aggregation Program known as Silicon Valley Clean Energy in accordance with the terms of the Agreement.
ARTICLE III
BOARD OF DIRECTORS
Section 1. Appointment of Chair and Vice-Chair. The Board shall appoint from among themselves by majority vote a Chair and Vice-Chair. The Chair and Vice-Chair shall be appointed for one-year terms expiring at the annual meeting held in January of each year. As provided by the Agreement, there are no limits on the number of terms that a Board member may serve as Chair or Vice-Chair.
Section 2. Appointment of Secretary and Treasurer. The Secretary and Treasurer shall be appointed by the Board for one-year terms expiring at the annual meeting held in January of each year.
Section 3. Extension of Term of Office. If for any reason, the appointment of a Board officer is not made in January of any year, such officer shall continue to serve in his or her position until an appointment is made at a meeting of the Board.
Section 4. Removal of Officers. An officer of the board shall be subject to removal as an officer of the board at any time for any reason by a majority vote of the entire Board. 1 12660-0002\l961754v2.doc
Amended: 5/10/23
Ad Hoc
Committee
Proposed
Scope
3 • Review SVCE’s current Operating Rules
and Regulations
• Research neighboring CCA bylaws
• Identify potential amendments
• Combine with Staff-recommended
changes and jointly prepare a draft with
Staff
• Present recommendation to Executive
Committee and final to Board of
Directors for approval
Item 3
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
A reminder on
context
4 • SVCE is a large, growing, and increasingly
complex entity
• We have strong financials, excellent staff, and
effective programs
• Business and regulatory pressures are
increasing
• As we saw in our last (August) board meeting
• Our current governance is good
• Our Board is engaged and motivated
• Board experience level is diverse and good
• We are collegial and eager to learn
➢We’d like it to stay this way!
• The Subcommittee’s driving force is to make
sure we have experience and continuity as
we mature as an organization
Item 3
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
Review of other
CCAs
5 • The Subcommittee reviewed documents
from other CCAs, and interviewed board
members and CEOs from similar
organizations (e.g. 3CE, PCE, AVA)
• Some organizations have very large
boards and have experienced huge
levels of turnover in recent years. Some
have a problem filling committee
positions. Others lack strong financials
and vibrant programs
• We did see some good practices that we
do not currently follow, and explored how
to best adapt them to our organization
Item 3
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
Highlights of
changes
6 • Staff initiated a number of changes:
• Reworded Purpose section
• Remove meeting location details
• Add details on Finance and Administration
as well as Audit Committees
• Establish Rosenberg’s Rules of Order
• Subcommittee and Staff developed
process changes:
• Please review the updated ORR for all of the
details
• The following slide lists just some of the high
points
Item 3
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
Process change
highlights
7 • Creation of a Nominating Ad Hoc Subcommittee
• Vice chair to nominate 3 Directors
• Receive proposals for Chair, Vice Chair and Exec
Committee
• Recommend candidates for each
• Nominations also permitted from the floor
• Randomized votes for any contested positions
• Listing of some Director Best Practices
• Board Chair and Vice Chair offered automatic
positions on Exec Committee
• New committee removal process (lack of
attendance)
• Minimum experience on Board for Chair (2 yrs),
Vice Chair (1 yr) and Exec Comm (1 yr)
• (We considered Chair term limits as a best
practice at other CCAs, but declined to set them
here as that would require a JPA amendment)
Item 3
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
8 Recommendation
Approve amended SVCE’s Operating Rules and Regulations via Resolution at a future meeting.
Next Steps:
• September 26th Clerk to send written notice to Board of proposed changes
• October 8th BOD Meeting: Approval of changes via Resolution (Consent or Regular Calendar)
Item 3
PRESENTATION
New SV Clean Energy
PowerPoint Template
Subtitle
Item 4
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
FY 2025-26 Operating
Budget
Amrit Singh
Board of Directors
Sept 10, 2025
Item 4
PRESENTATION
Purpose
Adopt the Fiscal Year 2025-26 (FY 26)
Recommended Operating Budget and
Maintain the Current Financial Reserves
Targets and Policy.
1. Recap of Key Messages
2. Recommended Budget
3. Summary and Next Steps
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Item 4
PRESENTATION
FY 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 ~$4 million (updated vendor fees; anticipated legal expenses and other minor changes) 3 •
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SILICON VALLEY CLEAN ENERGY
FY25-26 OPERATING BUDGET
($ 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
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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
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Item 4
PRESENTATION
Board Approval
Adopt resolution 2025-20 approving the fiscal year 2025-26 Recommended Operating Budget, which includes, at a high level, the following:
Withdraws $40.1 million from the reserves
Maintains an average of four percent (4%) customer discount to comparable PG&E rates through December 2025 and reduces it to one percent (1%) in January 2026 Continues to provide additional monthly dollar bill credit to California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) customers, which in the aggregate is equivalent to a one percent (1%) discount for all customers Proposes no changes to the current financial reserves targets and policy 6 Item 4
PRESENTATION
Thank you! / Questions?
7 SILICON VALLEY CLEAN ENERGY
FY25-26 OPERATING BUDGET
($ 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
8 ($ 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
9 Forecasted Margins Drop ~40%
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Item 4
PRESENTATION
Current 2025 Rate Projected 2026 Rate
4% SVCE discount
tn
in
in
in
10 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
Ct
CD
0 CD
0 V
01 CN
CO
Prices for RA and RPS have
dropped significantly
PG&E 2026 Gen Rate is
estimated to decrease by
^30% Year over Year
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 SVCE margin is estimated to
decrease by ^40% YoY
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
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
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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. 13 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 Space Expenditures $462 Estimated new office space expenditures, in preparation for potential office move in FY25-26
Transfers Amount (000s) Implications/Reasons
Programs Transfer $7,251 2% of projected revenues
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2025** 2026*** 2025** 2026*** 2025** 2026*** 2025** 2026*** 2025** 2026*** Rate Schedule E-TOUC Est. Avg E-TOUCL Est. Avg B-1 Est. Avg B-10S Est. Avg B-19S Est. Avg PG&E Bundled Gen Rate ($/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
15 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)
16 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). 17 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.
For CARE, eligibility can also be obtained through
enrollment in one of the qualifying public assistance
programs*
* 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)*
18 •
•
•
•
•
•
•
•
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
19 •
•
•
•
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
20 •
•
•
•
•
•
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.
21 512
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 •
•
•
•
•
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
25 •
•
•
•
•
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. 26
*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 27 Item 4
PRESENTATION
Residential Sales Small Commercial Sales
500
0 28
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 Item 4
PRESENTATION
FY 2025-26 Annual Operating Budget Process
Framework Full-Year
June June August August 1 September !
Discuss the high-level Present the stress test Review the draft Present the draft ! Present to the BOD the 1 budget framework analysis to the BOD budget with the budget to the BOD ; budget, incorporating and stress analysis Finance & Admin for review and 1 any feedback received ! with the Finance and 1 Committee feedback i in August ; Admin Committee /
\
s.
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 \
29 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
30 • 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
31 • Subtitle
New SV Clean Energy
PowerPoint Template
Integrated Decarbonization
Roadmap: Preview
Board of Directors
Sept 2025
Item 5
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
Today’s Agenda: Preview
2 1. What was the original Decarbonization Roadmap?
2. Why update it?
3. What will we get from this effort?
4. Timeline
5. Questions
Item 5
PRESENTATION
In 2018 SVCE published the “Decarbonization
Strategy and Programs Roadmap”.
Key Elements:
1. Board, stakeholder,
and community input
2. Established
community GHG
reduction targets
(2021, 2025, 2030 &
2045)
3. Articulated
overarching strategic
framework
4. Identified core
program initiatives
Source: SVCE Decarbonization Strategy & Programs Roadmap Item 5
PRESENTATION
Our mission and focus remain the same.
Mission
Reduce dependence on fossil fuels by providing carbon free, affordable, and reliable electricity and innovative programs to the SVCE community.
Focus
Clean electricity
Building electrification
Transportation electrification
Item 5
PRESENTATION
2018 vs 2025 – a lot has changed!
Electricity rates have doubled
AI wasn’t a thing…
EVs have tripled
SVCE staff has grown 2.5x
Item 5
PRESENTATION
The world has changed, we have changed, it’s time
for an updated plan.
This update will:
1. Leverage SVCE’s growth to refine our scenario planning: established programs team and infrastructure; enhanced data analytics and tools; learnings and results from 7 years of program implementation.
2. Reflect changes in technology, markets, statewide compliance requirements, and SVCE as an organization.
3. Develop more specific recommendations to ensure the best use of SVCE investments to meet challenges ahead.
4. More fully integrate supply-side decarbonization into the plan.
5. Create a set of metrics to track and report progress.
Item 5
PRESENTATION
The first roadmap built a strategic framework that is
the foundation for SVCE’s success to date.
27% reduction in regional energy and transportation-related emissions since 2015 Source: SVCE 2023 GHG Inventory
Item 5
PRESENTATION
Staff will build on this foundation to create a
nuanced strategy suited for challenges ahead.
Scenario analysis, customer and technology specific strategies, cost-effectiveness reporting Illustrative example
Residential Emissions Reduction 2022-2040
SVCE Residential Building Electrification Programs
Item 5
PRESENTATION
Commercial and Industrial Decarbonization Program
FutureFit Homes - Heat Pump Heating Ventilation and Air Conditioning FutureFit Homes - Heat Pump Water Heater
FutureFit Homes - Induction Range
FutureFit Homes - Total Residential Rebates
FutureFit Small and Medium-sized Business Incentives
Multifamily Direct Install
NeighborhoodElectrification - Homes Electrified
100K
„ 80K
cm
O
CJ
2 60K
40K
CM 10 <30
CM CM CM CM
O O O O
CM CM CM CM CM
2034
Silicon Valley Clean Energy Service Territory
2040 Projected Gas Use by City
Current Gas Use by City
Unincorp
orated
9 The Integrated Decarbonization Roadmap will
provide several key components.
1. Updated goals and targets:
• Refine electrification adoption scenarios
• Incorporate learnings into strategic guidelines
• Strengthen connections between program metrics and GHG targets
2. Decarb program evaluation framework:
• Customized metrics to guide investments and track performance • Grow capacity for internal reporting and ongoing planning
3. Prioritized recommendations
• Guiding principals to help adapt and scale decarb efforts over 3-5 years Item 5
PRESENTATION
10 Our Board of Directors play a critical role in
steering this effort towards success.
➢ Provide guidance and recommendations on objectives, GHG targets, and program milestones.
➢ Approve program evaluation framework.
➢ Adopt final roadmap document.
Item 5
PRESENTATION
We are scheduled to complete the Integrated
Decarb Plan by Q3 of 2026.
11 Senior Leadership
Team Workshop
July 2025
Present to Exec
Committee as
information item
29 Aug. 2025
Present to BOD as
informational item
Sep. 2025
Internal strategic
working sessions
Sep. - Dec. 2025
BOD Study Sessions:
opportunity for
feedback and input
Dec. 2025 – Mar.
2026
External review and
stakeholder sessions
Jan.–Apr. 2026
Final documents
presented
Q3 2026
Item 5
PRESENTATION
6 Questions?
12 Item 5
PRESENTATION
13 APPENDIX
Item 5
PRESENTATION
We need to electrify >1M machines while supplying
clean, reliable, and affordable electricity.
How can we achieve this reduction?
• 421,000 ICE vehicles converted to electric vehicles2
• Electrify 100% of commercial vehicle miles traveled (about 403,000 miles) 1 • Electrify residential appliances that include: 128k space heaters, 178k water heaters, 96k stoves, 81k dryers, fireplaces and spa/pool pumps3 • Electrify 5,500 Commercial Buildings & 1,700 Industrial Facilities3 • Switch to 100% carbon-free electricity sources (including DA accounts) Sources:
1. SVCE 2023 GHG Inventory
2. SVCE’s Vehicles Dashboard
3. SVCE Market Segmentation Study
Item 5
PRESENTATION
100%
75%
50%
25%
2023 Percent of Emissions
by Source % Contribution of total
Non-Commerical
Gasoline + Diesel
Offroad Emissions
Commercial Onroad
Gasoline + Diesel
Res. Buildings
Natural Gas
Non-Res. Buildings
Natural Gas
Non-Res. Buildings
Electricity
Res. Buildings Electricity
By integrating planning across supply and demand
we can make better decisions and investments.
Electrification Scenarios
“What rates of adoption of fuel-switching technologies should we plan for?"
Portfolio Planning
"How do we expand our power supply
to meet this growing demand? Is
other analysis needed?"
Load Growth Forecast
"How does the rate of
electrification impact our load?"
Rate Impacts
Policy / Strategy Implications
Program Design Implications
Evaluating Progress
"Are we on track to meet our
goals? What scenario adjustments
should be made to balance our
power supply needs?"
Item 5
PRESENTATION