Staff Report – Item 1g
Item 1g: Receive Additional Committees Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Andrea Pizano, Sr. Executive Assistant and Board Clerk Date: 10/8/2025
There are no reports for the Executive Committee, Finance and Administration Committee, Audit Committee, and 2025 Legislative Response to Industry Transition Ad Hoc Committee as they have not met since the last report.
The Executive Committee will meet October 24, 2025 at 10:00 a.m., the Finance and Administration Committee will meet in November, the Audit Committee will meet October 6, 2025 at 1:00 p.m., and the 2025 Legislative Response to Industry Transition Ad Hoc Committee will meet in November. Materials for SVCE’s Brown Act meetings will be posted 72 hours in advance of the meeting dates.
Item 1g
SILICON VALLEY \3/ CLEAN ENERGY
Staff Report – Item 1h
Item 1h: Receive California Community Power Report
To: Silicon Valley Clean Energy Board of Directors
From: Monica Padilla, CEO
Date: 10/8/2025
Per direction from the Silicon Valley Clean Energy (SVCE) Board of Directors (“Board”) on December 9, 2020 for the Chief Executive Officer to provide a report of the ongoing activities of California Community Power (CC Power) after each of its meetings, this is to report CC Power’s regularly scheduled meeting on September 17, 2025 was cancelled.
The next meeting of the CC Power Board will be October 15, 2025 at 1:00 p.m.; meeting materials can be found on the CC Power website: https://cacommunitypower.org/meetings/ Item 1h
SILICON VALLEY \3/ CLEAN ENERGY
Staff Report – Item 2
Item 2: CEO Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Monica Padilla, CEO
Date: 10/8/2025
REPORT
Staff Updates
Silicon Valley Clean Energy (SVCE) recently added two new employees:
Alisha Pegan (she/her) joined SVCE on September 15th as the Demand Flexibility Manager with the Energy Services team. She has a bachelor's degree in Environmental Studies from Wellesley College and Design Engineering from Olin College. She has 10 years of clean energy and climate-based work experience from public, nonprofit, and private sectors. Alisha was raised in Ukiah (Northern California) and currently resides in Oakland.
Nicholas Bail also joined SVCE on September 15th as a Senior Energy Services Specialist. He has a bachelor’s degree in Mathematics from the University of San Diego and brings with him experience in Customer Success and Electric Utility billing. Nicholas was born and raised in Silicon Valley and currently resides in San Diego.
Personnel Officer Update
Silicon Valley Clean Energy is currently recruiting for a Forecasting and Planning Analyst and an IT Manager. Job descriptions and applications for the above positions can be found on SVCE’s website: Current Job Openings Power Resources & Clean Energy Update
SVCE held a solicitation to buy 2026 Import Allocation Rights (IARs). The solicitation was launched on Monday, September 8th, and closed on Friday, September 12th. The agency was seeking COB IARs for May-October 2026.
The agency received offers and is contracting with the successful counterparties. The transaction was executed under board-delegated authority by the Chief Executive Officer.
For 2025, SVCE currently expects to have a 108% clean position, surpassing its target of 106%. In 2026, SVCE is on track to achieve a 110% clean position with several resources coming online, including SunZia wind, Aratina solar + storage and Angela solar+ storage. Please see Item 3 for a more detailed report on SVCE’s clean energy progress.
Customer Success Department Updates
In early September, SVCE began distributing $33M in customer bill credits. Customers receiving a bill credit have been sent an email and a postcard with a letter from the CEO about the credit, which will be automatically applied to their upcoming electricity bill. Based on individual customer billing cycles, some customers may see the credit on their September bills, while others will see it on their October bills.
Item 2
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 2 Agenda Date: 10/8/2025
Upcoming Campaigns
This month, SVCE will launch a rate awareness campaign targeting all SVCE customers. The playful campaign will run through fall, and will utilize digital, video, print, and out of home advertising to remind customers that shifting electricity use out of the 4 - 9 p.m. window can help them save on their bill.
Press and Media
Press Releases
• Community Power Provider Distributes $33M In Customer Bill Credits, Press Release, 9-02-25 • SV Clean Energy Launches Emergency Water Heater Replacement Service, Press Release, 9-09-25 Media Mentions
• The Bay Area’s Path to Clean Air: Zero-Emission Appliance Rules Are Primed for Success, SPUR, 8-25-25 • Sunnyvale Imposes Environmental Regulations Likely To Cost Homeowners, The Silicon Valley Voice, 8- 26-25
• Solar project stirs dust-up in Boron, Bakersfield Californian, 9-01-25 • Milpitas homeowners can comply with water heater rule without getting sunk by costs, The Milpitas Beat, 9-10-25
• Californians must fund heat pumps, Capital Weekly, 9-11-25 • Save Money, Save the Environment: Sustainability and Resilience Tips from the City, Alameda Post, 9-15- 25 • Top Heat Pump Water Heater Rebates Available Nationally, Clean Technica, 9-25-2025 Recent & Upcoming Events
September 27 – Touch-a-Truck
- Tabling
- 9 – 11 a.m.
- Gardner Bullis Elementary School, 25890
Fremont R, Los Altos Hills, CA 94022
October 15 – Watts for Lunch
- SVCE-hosted event for C&I customers
- Topic is Load flexibility and Demand
Management
- Sunnyvale City Hall
October 7 - CPUC Small & Diverse Business
Expo
- Tabling
- 9 a.m. - 1 p.m.
- Carson Event Center, 801 Carson St.,
Carson, CA 90745
October 25 - Sunnyvale Frunk-or-Treat
- Tabling
- 11 a.m. - 3 p.m.
- 433 Charles St, Sunnyvale, CA 94086
October 18 -19 - Campbell Oktoberfest
- Sponsorship and tabling
- Downtown Campbell
November 1 - La Ofrenda
- Sponsorship and tabling
- 1 – 7 p.m.
Downtown Gilroy
October 28 - 30 - VERGE
- Sponsorship, staff attendance, tabling
- San Jose Convention Center, 150 W San Carlos St, San Jose, CA 95113 Regulatory & Legislative Update
Regulatory:
On 9/18, the Commission adopted a Resolution denying SVCE’s appeal of its citation for failing to procure enough resource adequacy attributes for 2023 for its year-ahead filing. The adopted Resolution found that SVCE did not Item 2
Agenda Item: 2 Agenda Date: 10/8/2025
establish its impossibility defense and that the fine amount should not be mitigated. SVCE will not be appealing this citation further and paid the fine amount in September.
Legislative:
Please see item 4 on the regular calendar for a full legislative update.
New SVCE Headquarters
Staff continues to make progress on the design of the new SVCE Headquarters and will begin the design development phase. This phase will include more detailed design elements to further flesh out the building. SVCE submitted an application for a Special Development Permit to the City of Sunnyvale. This permit is required by the City of Sunnyvale. Upon review of the permit application, Sunnyvale staff determined that SVCE’s plans for the building constitutes a change of use from solely an office building to a public space that can also be used for Board meetings. This change of use requires additional documentation which could extend the timeline to receive permits. To help maintain SVCE’s schedule, Sunnyvale staff recommended breaking the project into two permits.
One permit will be for the office, and a separate permit will be for the public space. By separating the two permits, Sunnyvale staff believe the project can continue to progress on schedule.
SVCE staff provided feedback from the August Executive Committee to the design firm, which included the preference for a fixed stage with movable furniture. SVCE staff held an in-person design session with the design firm, which focused on floor plans and finishes.
Simultaneously, staff continues to work on contracting for repairs to the building caused from an accident that occurred on August 7, 2025.
The project is currently on schedule. Staff intends to bring a new contract for construction services to the Board in January 2026 and to move into the building in July 2026.
Look Ahead Update
Staff continues to plan for Board and committee meetings into the new year. Below is a preview of what’s ahead for the Board from November 2025 through January 2026:
ATTACHMENT
1. Regulatory and Legislative Update, October 2025
Item 2
Agenda Look Ahead: November 2025 - January 2026
November
12th: BOD Meeting
• SVCE Communications and Marketing
Strategy -Informational
• Competitive Community Grants Update -
Informational
• Net Billing Tariff Update - Discussion
• Approve Transportation Electrification
Program Plans and Budget Reallocations
for Two Years - Action
• CC Power PPA -Action
• Formation of Nominating Committee and
2026 Appointments Process -Action
December January
10th: BOD Meeting
• Approve FY 2025-26 Budget Update and
2026 Customer Rate Setting - Action
• Approve 2026 Legislative Policy Platform-Action
• Local Agency Action Planning -
Informational
• Board Workshop to discuss Key Strategic
Initiatives (tentative)
14th: BOD Meeting
• Chair and Vice Chair Appointment-Action
• Executive Committee Appointment -
Action
Please note the items on this schedule may change
depending on priorities
Agenda Item: 2 Agenda Date: 10/8/2025
Exhibit 1 - CEO Agreements Executed Under Delegated Authority The following agreements have been executed by the CEO or their delegate, consistent with the authority delegated by the Board:
Type Consultant Description Compensation Term Authority Agreement HBT Energy
Management LLC
Power Resources
Management
Services
NTE - $95,000 10/1/2025-
9/30/2026
CEO Spending
Authority
Amendment Flynn Resources
Consulting
General
Consulting
Services
No Change Extended
term to
3/31/2026
CEO Spending
Authority
Amendment SMUD Programs Portfolio
Tool Support
New NTE - $41,760 End Date:
12/31/2025
BOD Approved
(12/13/2023)
Amendment Joint Venture
Silicon Valley
Convening
Support for Silicon
Valley
Transportation
Electrification
Clearinghouse
No Change Extends
term to
3/31/2026
CEO Spending
Authority
Grant
Agreement
City of Milpitas Member Agency
Grant Program
Agreement
NTE- $502,000 9/11/2025 -
12/31/2028
BOD Approved
(03/2025)
Member
Agency
Competitive
Grant Program
Grant
Agreement
City of Saratoga Member Agency
Grant Program
Agreement
NTE- $493,000 9/15/25 –
12/31/2028
BOD
Approved
(03/2025)
Member
Agency
Competitive
Grant Program
Grant
Agreement
Self-Help
Enterprises
Hanford Mitigation
Fund Grant
Agreement
NTE - $1,200,000 9/15/2025 -
5/31/2030
BOD Approved
(04/2025)
Hanford
Hybrid Plant
Emissions
Mitigation
Fund
Letter
Agreement
Holly Schroth Speaking
Engagement –
Negotiation and
Influence
Workshop
NTE - $2,000 9/15/2025-
9/19/2025
CEO Spending
Authority
Agreement Jeff Carino AI Consulting NTE - $62,500 9/08/25 - 2/8/26
CEO Spending
Authority
Agreement Citizen Group Communications,
Marketing and
Research Services
NTE - $626,205 9/15/2025 -
9/30/2027
BOD
Approved
(09/2025)
Item 2
Agenda Item: 2 Agenda Date: 10/8/2025
Type Consultant Description Compensation Term Authority Amendment Camus Energy Master Agreement
– Software as a
Service
Increased NTE to
$733,000
Extends
term to
12/31/2025
Board
Approved
(09/2025)
Task Order 4 Opinion
Dynamics
Data Analytics
Support – EV
Managed Charging
EM&V
NTE- $201,000 12/14/2023-
12/13/2028
Board
Approved
(12/13/2023)
Item 2
Exhibit 2 - CEO Power Supply Agreements Executed Under Delegated Authority Counterparty Name Execution/Effective Date Transaction Type Product Start Date End Date Notional
Value
NRG Business Marketing, LLC 9/12/2025 Purchase Carbon-Free Energy 1/1/2026 12/31/2026 $763,750 Yuba County Water Agency 8/25/2025 Purchase Carbon-Free Energy 1/1/2026 12/31/2026 $1,367,500 Shell Energy North America 9/18/2025 Purchase Import Allocation Rights 1/1/2026 12/31/2026 $0 Shell Energy North America 9/18/2025 Sale Import Allocation Rights 1/1/2026 12/31/2026 $0 Item 2
SILICON VALLEY
CLEAN ENERGY
1 • Subtitle
New SV Clean Energy
PowerPoint Template
SVCE Legislative and
Regulatory Update
October 8, 2025
Item 2
Attachment 1
SVCE Leg and Reg Update, October 2025
SILICON VALLEY
CLEAN ENERGY
SVCE Legislative and
Regulatory Update
October 8, 2025
2 Policy Updates
Regulatory Update:
1. Resource Adequacy Citation Appeal
Legislative Update:
1. State Legislation
2. 2025 Legislative Calendar
Item 2
Attachment 1
SVCE Leg and Reg Update, October 2025
CD Policy Updates
Regulatory Update:
1. Resource Adequacy Citation Appeal
Legislative Update:
1. State Legislation
2, 2025 Legislative Calendar
2 3
Regulatory
Update
3 Item 2
Attachment 1
SVCE Leg and Reg Update, October 2025
Regulatory
Update
4 Key Regulatory Activities
Activity Purpose Status
K.23 -11-015 SVCE’s Appeal of its 2023 RA
Citation No. E -4195-0143
On 9/18, the Commission adopted a Resolution denying SVCE’s appeal of its citation for failing to procure enough Resource Adequacy (RA) attributes for 2023 for its year -ahead filing. The adopted Resolution found that SVCE did not establish its impossibility defense and that the fine amount should not be mitigated. SVCE will not be appealing this citation further and paid the fine amount in September.
Item 2
Attachment 1
SVCE Leg and Reg Update, October 2025
Key Regulatory Activities
Activity I Purpose I Status
K.23-11-015 SVCE’s Appeal of its 2023 RA
Citation No. E-4195-0143
On 9/18, the Commission adopted a Resolution denying SVCE’s appeal of its citation for failing to procure enough Resource Adequacy (RA) attributes for 2023 for its year-ahead filing. The adopted Resolution found that SVCE did not establish its impossibility defense and that the fine amount should not be mitigated. SVCE will not be appealing this citation further and paid the fine amount in September.
4 5
Legislative Update
Item 2
Attachment 1
SVCE Leg and Reg Update, October 2025
6 SVCE Bill Positions
Bill Number Summary SVCE
Position
Position Taken
Under which
Board -Adopted
Legislative
Platform Policy
Status
AB 825
(Petrie-Norris)
Allows the formation of a new
Regional Organization to enable
California to participate in energy
markets with other western states.
Support Clean, Reliable Grid Signed by
Governor
SB 254
(Becker)
Omnibus affordability bill that
includes public transmission
financing, replenishment of the
wildfire insurance fund, wildfire
mitigation oversight, permitting
streamlining for renewable projects
and undergrounding.
Support Affordability and
Rates
Signed by
Governor
Item 2
Attachment 1
SVCE Leg and Reg Update, October 2025
0 SVCE Bill Positions
Bill Number Summary SVCE
Position
AB 825
(Petrie-Norris)
Allows the formation of a new
Regional Organization to enable
California to participate in energy
markets with other western states.
Support
SB 254
(Becker)
Omnibus affordability bill that
includes public transmission
financing, replenishment of the
wildfire insurance fund, wildfire
mitigation oversight, permitting
streamlining for renewable projects
and undergrounding.
Support
Position Taken
Under which
Board-Adopted
Legislative
Platform Policy
Status
Clean, Reliable Grid Signed by
Governor
Affordability and
Rates
Signed by
Governor
6 7
SVCE Bill Positions
Bill Number Summary SVCE Position Position Taken
Under which Board -
Adopted Legislative
Platform Policy
Status
AB 130 Establishes a moratorium
on state building codes and
local reach codes from
October 1, 2025 – June 1,
2031, with limited
exemptions.
Oppose Unless
Amended
Climate Change
Mitigation/Fuel
Switching
Signed by Governor
AB 1207 (Irwin) Renames Cap and Trade to
Cap and Invest and extends
the program from 2030 to
2045.
Support Climate Change
Mitigation/Fuel
Switching
Signed by Governor
SB 840 (Limon) Introduces new allocation
structure for the Cap and
Invest Program.
Support Climate Change
Mitigation/Fuel
Switching
Signed by Governor
Item 2
Attachment 1
SVCE Leg and Reg Update, October 2025
0 SVCE Bill Positions
Bill Number Summary SVCE Position
AB 130 Establishes a moratorium Oppose Unless
on state building codes and Amended
local reach codes from
October 1, 2025 -June 1,
2031, with limited
exemptions.
AB 1207 (Irwin) Renames Cap and Trade to Support
Cap and Invest and extends
the program from 2030 to
2045.
SB 840 (Limon) Introduces new allocation Support
structure for the Cap and
Invest Program.
Position Taken
Under which Board-Adopted Legislative
Platform Policy
Status H
Climate Change
Mitigation/Fuel
Switching
Signed by Governor
Climate Change
Mitigation/Fuel
Switching
Signed by Governor
Climate Change
Mitigation/Fuel
Switching
Signed by Governor
8 • January 6 – Legislature Reconvenes
• February 21 – Last day for bills to be introduced
• May 2 – Last day for policy committees to hear fiscal bills • May 23 – Last day for fiscal committees to hear bills introduced in that house • June 6 – Last day for each house to pass bills introduced in that house • June 15 – Budget bill must pass by midnight
• July 18 – Last day for policy committees to vote on bills • August 29 – Last day for fiscal committees to vote on bills • September 12 – Last day for each house to pass bills
• October 13 – Last day for Governor to sign bills
Key 2025 State Legislative Milestones
Item 2
Attachment 1
SVCE Leg and Reg Update, October 2025
1 Key 2025 State Legislative Milestones
January 6—Legislature Reconvenes
February 21—Last day for bills to bo introduced
May 2—Last day for policy committees to hoar fiscal bills May 23—Last day for fiscal committees to hoar bills introduced in that house Juno 6—Last day for each house to pass bills introduced in that house Juno 15—Budget bill must pass by midnight
July 18—Last day for policy committees to vote on bills August 29—Last day for fiscal committees to vote on bills September 12—Last day for each house to pass bills
October 13 - Last day for Governor to sign bills
8
Staff Report – Item 3
Item 3: Clean Pathways Progress Update
From: Monica Padilla, CEO
Prepared by: Zak Liske, Deputy Director of Power Resources Date: 10/8/2025
RECOMMENDATION
Staff requests that the Silicon Valley Clean Energy (SVCE) Board of Directors (“Board”) receive an update on the Clean Pathways initiative. The update is information only and no action is requested.
BACKGROUND
Through several statues, California has established aggressive clean energy requirements for all load serving entities (LSEs) including SVCE, including:
1. Renewable Portfolio Standard (RPS) of 60% by 2030, which includes a requirement of 65% of the RPS coming from long-term contracts of 10 years or greater;
2. 100% carbon-free by 2045, with interim clean targets of 90% by 2035, 95% by 2040.
Since its formation in 2017, the Board has established an annual goal of 100% carbon-free for SVCE, which was achieved in all years with the exception of 2024.
In November 2024 (SVCE November 13, 2024 Board of Directors Meeting: Item 4 Staff Report, Item 4 Presentation), the Board reaffirmed SVCE’s current carbon-free goal of 100% and adopted staff’s recommendation on the following long-term clean targets including a minimum RPS and overall carbon-free position as follows:
1) 75% RPS target for retail sales/ 100% clean target for 2030 to 2034 2) 100% RPS for retail sales and 100% clean target for 2035 to 2045 3) Allow a 10% margin of error in the event targets cannot be met. If expected margin of error exceeds 10% staff will return to the Board for additional guidance. 4) Define clean energy resources to include RPS-eligible resources1 and carbon-free large hydroelectricity and nuclear energy.
The above targets are to be measured on a calendar year basis and as a percent of retail sales and will be adjusted to include line losses as necessary.
Additionally, the Board directed staff to come back to the Board with recommendations for how to:
1) Incorporate and inform the Board of the expected clean position and expected shortfall. 2) Incorporate hourly greenhouse gas emission (GHG) reductions in assessment and approval of power purchase agreements (PPAs).
3) Report on clean hourly progress
1 RPS-eligible resources are defined by the California Energy Commission and include solar, wind, geothermal, small hydro and biomass.
Item 3
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 3 Agenda Date: 10/8/2025
The second item above was brought to the Board in April 2025 as part of the Power Purchase Agreement (PPA) Project Selection Policy (SVCE April 9, 2025 Board of Directors Meeting: Item 3 Staff Report, Item 3 Presentation). Progress towards meeting clean energy targets including expected position are reported in the monthly CEO report to the Board. Items 1 and 3 are addressed in this Board item.
ANALYSIS & DISCUSSION
SVCE finds it important to review progress toward its 2030 and 2035 goals, especially as the dynamics of being a California Load Serving Entity (LSE) continue to evolve and face headwinds in achieving SVCE’s ambitious clean energy goals. Staff finds it paramount to regularly keep in mind SVCE’s mission statement that balances the following: clean energy, reliability and affordability. It is not lost on SVCE that being ambitious in its clean goals and ahead of its competitors is key to its continued success, but SVCE must remain flexible and adaptable to changing market conditions that threaten affordability.
Clean Power Update
In the near term, 2025 through 2027, SVCE is on track to meet its 100% clean target which includes renewable resources, hydroelectricity and nuclear. SVCE has made significant progress toward meeting its annually measured 75% renewable in 2030 and 100% renewable in 2035 goals. SVCE is currently projected to be at about 75% renewable in 2030 thanks in large part to the successful power procurement completed since SVCE started serving customers in 2017.
Projections for large load growth driven by data centers and electrification create challenges in SVCE’s ability to meet its clean targets in the future mainly due to the uncertainty around this load growth. Based on the California Energy Commission’s (CEC) Integrated Energy Policy Report (IEPR), SVCE’s load is expected to grow by 53% over the next ten years and by 75% in 2040. Staff is working closely to understand the drivers and revise the forecast based on staff’s own insights into SVCE’s load growth. The chart below summarizes the IEPR forecasted load growth between 2025 and 2040.
Chart 1:
4,024
893 4,918
1,230 6,147
885 7,033
2025 Growth 2030 Growth 2035 Growth 2040
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
SVCE IEPR Load Forecast Growth - 2025 to 2040 (GWh)
Increase Decrease Total
Item 3
Agenda Item: 3 Agenda Date: 10/8/2025
To meet 100% clean energy goals, starting in 2035, SVCE will need to procure large amounts of additional clean energy capacity as shown in the chart below.
Chart 2:
The portfolio of long-term power purchase agreements (PPAs) now contains 24 PPAs and over $3.8 billion in contractual commitments. This is comprised of nearly 1 GW of renewable power and 1,600 MWh of battery storage. Through August 2025, 10 of these projects have reached the critical Commercial Operation Date (COD) milestone.
Procurement Challenges Facing SVCE
There are many challenges facing LSEs in building a clean, reliable and affordable power supply portfolio.
Procurement pressures come from many fronts including the market, regulators and all levels of government.
These pressures are summarized in the graphic below.
Clean,
Reliable,
Affordable
Portfolio
CPUC & CEC
•Procurement
requirement
uncertainty
•Load growth
uncertainty
Market
•Supply Chain
•Financial Viability
•"A deal isn't always
a deal"
Federal
Government
•Tariffs
•Permitting
•PTC/ITC elimination Local
Government
•Battery storage
moratoriums
•Permitting/zoning
CAISO
•Interconnection
timing
•Transmission
availability
Item 3
SVCE RPS Resources vs Load
Resources
Contracts Under Negotiation
CPE
VAMO
Small Hydro
Wind
Solar
Geothermal
Total Load
- - Agency RPS Target
-- SB100 Target
6,000,000
4,000,000
_c
£
2,000,000
cn o cm co in
CM co co co tn CO CO
O O O O Q O O
CXI CM CM CM CM CM CM
Agenda Item: 3 Agenda Date: 10/8/2025
Achieving COD is one of the many critical milestones in the PPA lifecycle. SVCE’s role in PPAs follows a series of steps including solicitation, valuation, negotiation, approval, execution, development, onboarding and operations. Each step serves a critical role and getting from solicitation to operations is a challenging process.
Since 2019, SVCE’s solicitations have shown project costs on an upward swing directly impacting SVCE’s ability to follow its mission of providing clean, reliable and affordable power. Solar projects have seen offer prices increase between 2-3 times. What was once a $20/MWh project is now approaching $60/MWh. Further, with the recent passage of H.R. 1 - One Big Beautiful Bill Act, there is a cliff date on monetizing tax incentives that make wind and solar projects economically viable. Once those incentives go away, prices of projects may continue to rise and further threaten affordability.
SVCE has built up a significant portion of its portfolio with solar most of which is paired with battery storage.
The general principle of pairing storage is shifting energy from midday hours when there is a glut of renewable energy to the evening peak after the sun goes down and displace the need for fossil generation. The reality is only so much energy can be shifted from the midday to the evening, which means the energy that isn’t shifted is valued at extremely low levels. In some cases, midday California Independent System Operator (CAISO) spot-market prices for energy are negative, meaning resources are paying to generate. This economic paradigm is having an increasing strain on SVCE’s portfolio and the larger California grid.
Portfolio mix diversity is an essential part of managing risk including the risk of curtailment. Currently, about 30% of SVCE’s energy mix comes from solar resources. Recent solicitations and procurement orders are pushing SVCE into procuring more solar, with and without, storage to meet obligations. In the future, SVCE anticipates solar meeting nearly 50% of energy needs, exacerbating curtailment and the need for additional storage resources including long duration storage. Staff continues to seek diverse resources and is exploring alternative procurement mechanisms including bilateral discussions, build-transfer-agreements and joint procurement through California Community Power. See Chart 3 below showing over 700 MW of solar in SVCE’s portfolio starting in 2029.
Chart 3:
236 236 236 236 236 236 236 236 236 236
446
566
657 707 707 707 707 707 707 707
0 500
1000
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
SVCE Planned Contracts Nameplate MW
Geothermal Wind Solar
Item 3
Agenda Item: 3 Agenda Date: 10/8/2025
SVCE’s PPAs are typically structured where SVCE pays the generator owner a fixed price for each megawatt hour (MWh) of energy generation. SVCE is then paid the CAISO spot-market price for bringing that generation to the grid. This fixed for float exchange is a value spread that is continuing to diverge, especially in midday hours. The spread between the fixed and floating price is one component of a PPA’s value. While this component is decreasing contract value, two other elements Renewable Energy Credits (RECs) and Resource Adequacy Capacity (RA) are propping up contracts in recent years as these additional attributes have seen an increase in value in bilateral markets. That said, REC and RA values aren’t expected to always make up for the dragging value of energy.
Another element of this equation is when negative prices appear in the CAISO market it means there is more supply than demand. All else equal, this negative price is intended to be a signal to generation to stop producing electricity. In some cases, resources decide to pay to generate to preserve the REC, but in others resources either voluntarily or mandatorily, based on reliability need, curtail output. This is evident in the chart below (see Chart 4) depicting the curtailment of wind and solar over time. This trend has continued to rise in recent years and is not expected to slow down. As it continues, the energy value of solar will continue to decrease putting further strain on contract economics.
Chart 4:
Source: https://www.eia.gov/todayinenergy/detail.php?id=65364 Energy RA REC PPA
Value
Item 3
Monthly solar and wind curtailments, California Indepenent System Operator (January 2015-December 2024)
thousand megawatthours
900
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Agenda Item: 3 Agenda Date: 10/8/2025
In addition to price increases across solicitations and decreasing market value of energy, many of SVCE’s projects have faced delays in development and onboarding. Between 2021 and 2025, a majority of the projects were delayed from their original online dates, in some cases months and for many projects, years (see Chart 5 below). External pressures have been a driving force in this process. The pandemic and many subsequent macroeconomic and geopolitical issues have squeezed project viability.
Chart 5: Nameplate MW Capacity by Original Online Year
The CAISO interconnection queue process is what new capacity must go through in order to connect to the grid.
The CAISO reviews applications in clusters to understand the impact of new capacity on the transmission system and to understand if network upgrades are necessary to support the additional capacity. The two most recent clusters, Clusters 14 and 15, had a dramatic increase in the number of requests, as much as 3.5 times as many applications as Cluster 13. This increased number of requests meant that understanding a potential resource’s impact to the grid and online date would be subject to delay. The run up in requests caught the regulators’ attention requiring immediate action to reform the process. Cluster 15 was the first queue with significant reform and attempt to determine upfront commercial viability. The process is still ongoing, and results are to be determined. Chart 6 below shows the number of unique interconnection requests in the queue by cluster. 0 300
600
2021 2022 2023 2024 2025 2026 2027 2029
Nameplate MW
Original Online Year
MW Capacity by Original Online Year
Delayed
On Time
Item 3
Agenda Item: 3 Agenda Date: 10/8/2025
Chart 6: CAISO Interconnection Queue as of 2023
Source: https://www.caiso.com/documents/briefing-on-the-status-of-interconnection-process-enhancements-and-the-interconnection-queue-jul-2025.pdf Along with difficulties navigating a difficult marketplace, SVCE is regularly subject to regulatory uncertainty which directly impacts SVCE’s ability to procure and manage a cost-effective supply portfolio. The California Public Utilities Commission’s (CPUC) latest proposal is the Reliable and Clean Power Procurement Program (RCPPP) and Clean Energy Standard (CES) which take many existing CPUC compliance programs and overlay them into a recurring planning and procurement process. The intention of the new program would be to intersect the Integrated Resource Planning (IRP), Renewable Portfolio Standard (RPS), and Resource Adequacy (RA) processes and programs and add a new carbon-free energy overlay. While it is still early and the outcome uncertain, the intent of this proposal would minimize the need for future procurement orders like the Mid-Term Reliability (MTR) order. See Chart 7 below showing the proposed interplay between IRP and RCPPP.
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600
C15 Active
Projects
347 GW
2023 Interconnection Queue
Agenda Item: 3 Agenda Date: 10/8/2025
Chart 7: Relationship between the IRP and RCPPP processes Source: https://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M565/K140/565140722.PDF Along with uncertainty from the CPUC on what procurement planning may look like, the California Energy Commission (CEC) is responsible for load forecast planning, which has been dominated lately by what data center demand may do to load growth. While still uncertain, if significant data center driven load growth were to materialize it would be well above current planning targets. See Chart 8 below.
Chart 8:
Clean Pathways Report
Last November when the Board adopted new clean goals in 2030 and 2035, staff also planned to return to the board with a discussion on how to report on progress toward these new goals. To recap, SVCE must continue to be 100% clean with a goal to be 75% renewable by 2030 and 100% renewable by 2035 as measured on an annual basis. The Board also adopted a 10% margin of error to account for the risks noted above. 2,000
4,000
6,000
8,000
SVCE Load Forecast Scenarios (GWh)
Basecase Low Load High Load
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IRP Planning Track
Procurement
Orders*
(as needed)
Update baseline
based on
procurement
Inform Inputs &
Assumptions
Reliability
need &
resource
counting
GHG-reduction
need
Reliable & Clean Power
Procurement Program
Agenda Item: 3 Agenda Date: 10/8/2025
Currently, SVCE runs stochastic analysis of the portfolio to simulate expected performance in the future. This is a process of simulating future weather to understand how the portfolio will perform. Given SVCE has a significant portion of its capacity as either wind or solar assets, understanding the potential future intermittency is crucial to establishing certainty around achieving SVCE’s clean goals. SVCE does this analysis weekly and is moving toward doing so daily. In addition, as the current portfolio operates, those operational results become inputs into modeling the future, which creates a continuously improving model. As such, staff has a high degree of confidence that it should be clear well ahead of time if the clean goals will be met.
SVCE staff will also prepare a summary of prior year actual performance to determine clean level on an annual basis. California Senate Bill 1158 requires LSE’s to report 24/7 actuals to regulators starting in 2028. While this is not a public report, SVCE staff will prepare a summarized version for the Board’s review.
To memorialize this deliverable, staff is planning to provide the Board an annual Clean Pathways Report that details expected performance relative to future clean goals. Timing of this report is still being developed but expects to report by September of each year when SVCE has greater certainty on ability to meet annual clean goals for the current year as well as report on prior year’s hourly performance. Progress with bringing existing PPAs on-line and meeting near-term clean goals will continue to be reported as part of the monthly CEO report.
STRATEGIC PLAN
The ongoing Clean Pathways work supports SVCE’s FY 2025-26 Strategic Focus Area 2 “Expand Clean & Reliable Grid Actions”.
This also supports Goal 2 of SVCE’s FY 2025-26 Strategic Plan, “Long-term, target for 100% clean energy annually by building a balanced portfolio with consideration for both affordability and reliability while exploring long-term pathways to clean power supply”.
ALTERNATIVES
The Board can direct staff to provide alternative approach to reporting on progress toward 2030 and 2035 goals as well as on historical hourly performance.
FISCAL IMPACT
None.
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Staff Report – Item 4
Item 4: State Legislative Update
From: Monica Padilla, CEO
Prepared by: Bena Chang, Director of Government and Legislative Affairs Date: 10/8/2025
RECOMMENDATION
The State Legislative Update is being presented to the Silicon Valley Clean Energy (SVCE) Board of Directors (“Board”) for informational purposes only.
BACKGROUND
On September 19, 2025, Governor Newsom signed a package of major energy and climate-related bills into law. Staff will highlight the significant package of energy/climate bills passed at the end of the session.
ANALYSIS & DISCUSSION
The package signed by Governor Newsom included several bills that SVCE has advocated on and supported, including:
AB 825 (Petrie-Norris) on Regional Energy Markets
Assembly Bill (AB) 825 would create a pathway for a new Regional Organization that enables expanded energy markets throughout Western states. Regional energy markets are a critical solution to bring down electricity costs. Having California operate as an energy island is inefficient and expensive. For example, from January to May 2024, the California Independent System Operator (CAISO) curtailed enough energy to power more than 430,000 homes. Curtailed energy could be sold throughout the West to bring down emissions while saving money. On the converse side, expanded regional energy markets will give California more access to renewable energy sources like hydro and wind to complement the state’s abundant solar. Sharing energy across the West helps bring more resources to assist with reliability by allowing California to more easily import energy during times of grid stress.
SVCE Position
SVCE took a support position on AB 825 (Petrie-Norris) in alignment with the Board-adopted Legislative Platform Policy of a Clean, Reliable Grid.
Impact of AB 825 (Petrie-Norris)
An independent study by the California Energy Commission found that California could lower energy costs by more than $1 billion annually through participation in expanded energy markets.
SB 254 (Becker) on Energy Affordability
Senate Bill (SB) 254 is an energy affordability omnibus bill with several components. SVCE’s analysis of the cost drivers for bill increases showed that much of the upward pressure on bills comes from increases in spending on wildfire mitigation and transmission and distribution costs. SB 254 tackles these major cost drivers in several ways, including:
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Agenda Item: 4 Agenda Date: 10/8/2025
• Wildfire Mitigation
o Requires cost-effectiveness to be considered for projects in the wildfire mitigation plan. o Imposes additional oversight and transparency of wildfire mitigation spending, including restrictions on memorandum accounts and requiring the Office of Energy Instructure Safety to assess Investor Owned Utility (IOU) performance on wildfire mitigation plans. Nonperformance would be subject to corrective actions and timelines.
o Replenishes the wildfire insurance fund, which is the backstop fund established by previous state law that pays for damages from utility-caused wildfires when insurance is inadequate.
This will help prevent IOU bankruptcy and associated costs including higher IOU cost of borrowing.
• Transmission
o Establishes a California Transmission Accelerator Program in GoBiz that would coordinate and streamline the state’s actions to fast-track transmission projects. o Establishes a California Transmission Accelerator Revolving Fund that would identify transmission projects to use lower public financing to achieve ratepayer savings. IOUs would not be able to earn a return on equity for projects funded through this Revolving Fund. • California Environmental Quality Act (CEQA) Streamlining o Allows program-level Environmental Impact Reports to analyze the classes of clean energy facilities.
o Provides a CEQA-exemption for distribution undergrounding projects. • Energization
o Requires third-party auditors to review and recommend changes to IOU practices on energization and plans for connecting future demand growth. o Authorizes the California Public Utility Commission (CPUC) to establish penalties for IOUs that do not meet target energization timelines and to evaluate whether IOU executive compensation should be tied to meeting energization targets.
SVCE Position
SVCE took a support position on SB 254 (Becker) in alignment with the Board-adopted Legislative Platform Policy of Affordability and Rates.
Impact of SB 254 (Becker)
While the replenishment of the Wildfire Insurance Fund represents a $9 billion ratepayer cost, in the near-term there will be no increase in rates due to SB 254 since ratepayers are already paying a non-bypassable fee to fund the Wildfire Insurance Fund. The fee would have sunset in 2036, but SB 254 extends the sunset to 2046.
On the side of downward pressure on rates, SB 254 disallows IOUs from rate-basing $6 billion in wildfire spending, which means the IOUs will not earn a return on equity for these projects costs. These costs may also be securitized and financed over time instead of all at once which will minimize impact on bills.
SB 254 also contains several measures that will put downward pressure on bills such as using public financing for transmission projects and requiring cost-effectiveness to be considered in wildfire risk mitigation plans.
However, it is too early to know the exact impact of these measures on rates.
Cap and Invest
The Governor signed two Cap and Invest bills, AB 1207 (Irwin) and SB 840 (Limon). AB 1207 renames the “Cap and Trade” program to “Cap and Invest” and extends the program from 2030 to 2045. AB 1207 makes few changes to the structure of the Cap and Invest program and keeps existing allocation and offset mechanisms. The bill does make changes to climate credits which are currently twice-yearly credits on utility bills that are funded by free allowances the IOUs and Publicly Owned Utilities receive. AB 1207 directs the CPUC to distribute climate credits no more than 4 times a year on the highest billed months each year. The Item 4
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bill also directs the California Air Resources Board (CARB) to open a proceeding to transition gas climate credits to electric climate credits.
SB 840 (Limon) creates a new structure for allocation of revenue from Cap and Invest’s Greenhouse Gas Reduction Fund (GGRF). Funding would split into three tiers of program priorities, in a waterfall where the Tier 1 is funded first, then Tiers 2, and 3.
Tier 1 funds:
• CalFIRE
• Lost revenue from the sales tax exemption for manufacturing equipment, and • A new Legislative Counsel Climate Bureau to provide analysis and oversight of climate policies.
Tier 2 funds:
• $1 billion annual appropriations for High Speed Rail, and • $1 billion annual discretionary fund for legislative priorities.
Tier 3 funds current on-going GGRF programs including:
• $800M for Affordable Housing and Sustainable Communities • $400M for the Transit and Intercity Rail Capital Program • $250M for AB 617 Air District projects
• $200M for Low Carbon Transit Operations
• $200M to the Department of Forestry and Fire Protection SVCE Position
SVCE took a support position on AB 1207 (Irwin) and SB 840 (Limon) in alignment with the SVCE Board-adopted Legislation Platform Policy of Climate Change Mitigation and Fuel Switching.
Impact of AB 1207 (Irwin) and SB 840 (Limon)
Extending the Cap and Invest program will align the end of the program with state goals to reach net zero emissions in 2045. This extension provides market certainty for the program. The market certainty could help stabilize future auction revenues and provide more funding to the state for greenhouse gas reduction programs.
STRATEGIC PLAN
Energy affordability legislation aligns with SVCE’s Strategic Focus Area 1, “Expand Affordability Efforts.” Cap and Invest reauthorization may provide funding to support 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
Unknown direct impacts to SVCE currently. Staff anticipates downward pressure on rates in the future due to AB 825 (Peter-Norris) and parts of SB 254 (Becker). There may be future opportunities to pursue state funding from Cap and Invest revenue for either SVCE and/or SVCE’s customers.
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Staff Report – Item 5
Item 5: Local Agency Action Planning
From: Monica Padilla, CEO
Prepared by: Zoe Elizabeth, Director of Decarbonization Policy and Community Strategies Date: 10/8/2025
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 supports 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
None.
ATTACHMENTS
The presentation for this item is posted to the SVCE website.
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