1 • Subtitle
New SV Clean Energy
PowerPoint Template
Fiscal Year 2025 -2026 Budget
Update
Amrit Singh
Executive Committee
December 5, 2025
Item 3
PRESENTATION
2 Main Areas of Discussion
1. Highlights of the updated financial
forecast
2. Comparison of the adopted and
updated Budget
3. SVCE’s financial reserves outlook and
management
4. Setting SVCE’s rates for 2026
Purpose
1. Review update d fiscal year 2025-2026
(FY 26) budget and 5-year financial
forecast
2. Recommend that the Board approve
the updated budget and the proposed
SVCE rate changes
Item 3
PRESENTATION
3 Highlights of Updated Financial Forecast
1. 5-year margins remain negative - Under business -as-usual* scenario • Largely similar to the September 2025 Budget (Adopted Budget) Outlook • Days Cash on Hand declines to ~150 at the end of the 5 -year forecast period (below the target level of 350 but above the minimum level of 120 DCOH)
2. FY 26 draw on reserves increases to $60 million from $40 million (Adopted Budget)
3. 2026 Customer Discount - 1% and an additional $12 bill credit for low - income customers
• Reserves built for such financial outcomes enable SVCE not to make any abrupt changes • Analyses support no significant impact from a one -year delay in implementing any changes • Staff will continue the work on Financial Levers Analyses and will engage further with the Board, the Executive Committee, and the Finance and Administration Committee * Business -as-usual here is defined as all SVCE rates set at a competitive advantage to comparable PG&E rates.
Item 3
PRESENTATION
4 FY 26 Adopted vs. Adjusted Budget
~$40 million decrease in
revenue projection
Reflecting CPUC -adopted market
price benchmarks and a
continued decline in energy
prices
Offset by ~$25 million
decrease in Power Supply
Costs
Primarily from a decline in energy
prices and also from a favorable
regulatory outcome, reducing
interim procurement in meeting
compliance obligations
Transfer of $5.5 million to the
building fund because of higher -
than-expected expenditures
FY25-26 FY25-26
ADOPTED ADJUSTED
($ in thousands) BUDGET BUDGET $ %
Energy Revenues 358,416 319,324 (39,092) -10.9%
Power Supply Expense 368,896 344,221 (24,675) -6.7%
Operating Margin (10,480) (24,897) (14,417) 137.6%
Operating Expenses 43,193 43,193 0 0.0%
Non-Operating Revenue (Expense) 21,384 20,854 (531) -2.5% Annual Transfers and Other Expenses
Capital Outlay 512 512 0 0.0%
Additional Transfer to Building Fund 0 5,500 5,500 100.0% Program Fund 7,251 7,251 0 0.0%
TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER 7,763 13,263 5,500 70.8%
BALANCE AVAILABLE FOR RESERVES (40,052) (60,500) (20,448) 51.1% Change
Item 3
PRESENTATION
5 Forecasted Margins Drop ~50%
from 2025 Levels
Comparing 2025 Rate
(first bar) to Forecast 2026
Rate (third bar)
• Customer Rate (inclusive
of PCIA) Drops ~ 30% (~24%
if including one -time bill credit)
• SVCE Margin Drops
~50%
• PG&E 2026 Gen
Rate Drops ~30%
• PCIA Increases
230%
• Rates are not final
until late December
PG&E Gen Rate:
10.50 ¢/kWh SVCE Gen Rate 7.03 ¢/kWh
1% SVCE discount
PCIA 3.37 ¢/kWh
SVCE Customer Billing Gen Rate 10.40 ¢/kWh
* Source: CalCCA NewGen Model analysis using market data as of 6/27/2025 and estimated CPUC attribute benchmarks for CY 2025 -2026 (Weighted fo r SVCE Portfolio Load) ** PG&E 2025 Average Rate, effective January 1, 2025 (Weighted for SVCE Portfolio Load) *** Estimated 2026 rates, based on PG&E Fall Update Errata, effective January 1, 2026 (Weighted for SVCE Portfolio Load) Above margin analyses ignores minor reductions for franchise fees (0.1 ¢/kWh) 2025 Rate ** Adopted Budget
Forecast 2026 Rate *
PG&E Gen Rate:
15.17 ¢/kWh SVCE Gen Rate 13.55 ¢/kWh
4% SVCE discount
PCIA 1.02 ¢/kWh
SVCE Customer Billing Gen Rate 14.57 ¢/kWh
PG&E Gen Rate:
10.50 ¢/kWh SVCE Gen Rate 8.29 ¢/kWh
1% SVCE discount
PCIA 2.11 ¢/kWh
SVCE Customer Billing Gen Rate 10.39 ¢/kWh
Updated Budget
Forecast 2026
Rate***
• Energy
• RA
• RPS
• Energy
• RA
• RPS
Item 3
PRESENTATION
6 Reserve Projection Under Business -as-Usual Scenario
(Rates Set Relative to Comparable PG&E Rates)
Projected End of FY Reserves:
• 458 Days of Cash on Hand
(DCOH)
• If unspent Program Funds and
Building Fund were included
in the reserve calculation
• 387 Days of Cash on Hand
(DCOH)
• Excludes Unspent Program
Funds and Building Fund
458
357
284
218
151
387
309
254
203
151
(50)
50 150
250
350
450
550
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.
Calendar year 2027 onwards assumes 1% discount is provided as either 1) Discounts to all customers, or,
2) As bill credits to CARE/FERA customers only (and 0% discount to all customers ) Item 3
PRESENTATION
7 Business -as-Usual Scenario with Additional
Operating Liquidity
• Additional Operating Liquidity:
1. Lag in customer uptake of
programs
2. Operational flexibility within
operating expenses (other than
power supply expenses)
• Revised reserve projections
assume
• $25 million program fund
balance remains at the end of
the 5 -year period - (Beginning of
FY 26 unspent program fund balance
was ~$100 million)
• $6.5 million a year in
expected underrun of other
operating expenses 469
380
316
258
200
393
322
273
228
181
(50)
50 150
250
350
450
550
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 3
PRESENTATION
8 Keeping DCOH Above 250
( Under Business -as-Usual Scenario with Additional Operating Liquidity) To keep DCOH above 250,
on average, SVCE rates
would need to be about
1.8% higher than PG&E
starting in CY 2026 (including
CARE/FERA)
479
401
347
299
250
403
343
303
268
230
(50)
50 150
250
350
450
550
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.
Recommended Reserve
Management Goal: Keep
DCOH Above: 250 (under
these financial conditions)
Item 3
PRESENTATION
9 Implementing Rate Premium in 2027 to Keep
DCOH Above 250
On average, SVCE rates
would need to be about
2.7% higher than PG&E
starting in CY 2027 (including
CARE/FERA)
Same as the scenario in previous slide but instead of charging a premium in 2026 the premium starts in 2027. In 2026, rates are at the proposed levels of 1% lower than those of PG&E, and low -income customers receive an additional $12 monthly bill credit. 469
390
340
295
250
393
332
296
264
229
(50)
50 150
250
350
450
550
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 3
PRESENTATION
10 Staff Recommendation
• For Calendar Year 2026:
• 1% discount to all customers
• Additional $12 monthly bill credit for CARE/FERA customers • Basis for the recommendation:
• Additional premium in 2027 is 0.9% from not charging a premium starting in 2026 •
(The impact of 1% premium on the residential rate on average is about $0.53 a month.) • Delaying any changes to the pricing methodology by one year enables staff to:
• Finalize the financial levers analysis
• Work with the Finance and Executive Committees and the Board to design any changes to SVCE’s products and services, along with rates that continue to promote the agency’s mission and balance customer value and the agency’s finances Item 3
PRESENTATION
11 Recommendation
Recommend that the Board of Directors approve the updated Fiscal Year 2025 -26 operating budget that includes:
1. Implementing SVCE generation rates to establish a 1% discount to PG&E’s applicable generation rates,
2. Providing a monthly bill credit of $12 for CARE/FERA customers,
3. Approving the new GreenPrime rate of $0.0074/kWh ($7.40/MWh) starting in January 2026, and transferring
4. $5.5 million to the building fund.
Item 3
PRESENTATION
12 Thank you! / Questions?
Item 3
PRESENTATION
13 Fiscal Year 2025 -
2026 Annual
Operating Budget
($ 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 $321,123 $301,154 $357,822 $385,564 $402,578 GreenPrime Electricity Premium $2,469 $2,510 $2,336 $2,309 $2,361 Reduction in Revenue1
$(4,268) $(957) $0 $0 $0
Other Income $0 $0 $0 $0 $0
Total Operating Revenues $319,324 $302,706 $360,158 $387,872 $404,939 Operating Expense
Power Supply $344,221 $347,583 $363,375 $384,686 $406,000 Operating Margin $(24,897) $(44,877) $(3,218) $3,186 $(1,061) 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 $6,054 $7,203 $7,757 $8,099 Total Operating Expenses $394,665 $398,487 $417,671 $441,890 $466,018 Operating Income $(75,342) $(95,781) $(57,513) $(54,018) $(61,079) Nonoperating Revenue
Investment Income $20,882 $15,222 $10,803 $9,477 $7,405 Grant Income $0 $0 $0 $0 $0
Total Non-Operating Revenues $20,882 $15,222 $10,803 $9,477 $7,405 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 $20,342 $15,144 $10,724 $9,399 $7,327 Change in Net Position/Available for Reserves $(60,500) $(80,637) $(46,789) $(44,619) $(53,752) Begin, Net Financial Position $585,328 $495,287 $389,499 $324,886 $263,808 Adjustment for Program Expenditure and Building Fund2
$(29,542) $(25,151) $(17,824) $(16,459) $(17,368)
End, Net Financial Position $495,287 $389,499 $324,886 $263,808 $192,687
1. Assumptions: 4% discount relative to comparable PG&E rates for CY 2025 and 1% discount for CY 2026-30. FY 2025-26 includes additional discount in the form of CARE/FERA bill credit estimates to low-income customers for $4.3 million and FY 2026-27 for $1 million (through Dec 2026 only). No CARE/FERA bill credit is assumed for CY 2027-30.
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 and the additional $5.5 million to be allocated in FY25-26 are expected to be spent by end of FY25-26.
Item 3
PRESENTATION
14 Average Effective Customer Billing Rates
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
PCIA & Franchise Fee* ( ₵/kWh) 3.29 4.76 1.97 0.37 1.14 1.12 3.47 3.01 2.30 2.20 2.16 SVCE Gen Rate* ( ₵/kWh) 7.59 6.10 12.41 13.99 14.22 12.53 6.93 7.83 9.30 9.48 9.61 SVCE gen rate discount vs PG&E 4% 1% 1% 4% 4% 10% 1% 1% 1% 1% 1% 0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0 2
4 6
8 10
12 14
16 18
20 SVCE gen rate
discount vs PG&E
Customer Billing
Rate ( ₵/kWh)
Estimated
*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).
SVCE Gen Rate discount excludes CARE/FERA customer discount equal to 1% general discount distributed among CARE/FERA customer s. • 2025 Average
Customer Billing
Generation Rate
decreased -11% Year
over Year, reflecting
SVCE One -Time Bill
Credit
• 2026 Estimated
Average Customer
Billing Generation
Rate will decrease
around -24% Year
over Year
Item 3
PRESENTATION
15 With Estimated PG&E Delivery Rates, Customers’ Total Rate Expected to Drop on Average by 8% from 2025 Level
PG&E delivery
rate, on average,
is estimated to
increase by
about 5%
PG&E Total 2025
Rate: 36.69 ¢/kWh* SVCE Gen Rate 13.55 ¢/kWh
4% SVCE discount
PCIA 1.02 ¢/kWh
Total SVCE Customer Electric Billing Rate (incl. PG&E Delivery Charges) 36.09 ¢/kWh Av. Delivery Rate Gen Rate 21.52 ¢/kWh
PG&E Total 2026
Rate: 33.13 ¢/kWh** SVCE Gen Rate 7.03 ¢/kWh
1% SVCE discount
PCIA 3.37 ¢/kWh
Total SVCE Customer Electric Billing Rate (incl. PG&E Delivery Charges) 33.03 ¢/kWh Av. Delivery Rate Gen Rate 22.63 ¢/kWh
-8%
*PG&E 2025 Average Rate, effective January 1, 2025 and estimated total delivery rates as of September 1, 2025 (Weighted for SVC E Portfolio Load) **Gen rates are estimated based on PG&E Errata (November 6, 2025) and delivery rates are based on PG&E Preliminary Annual El ectric True -Up Submittal (November 17, 2025) data for CCA/DA customers.
Above margin analyses ignores minor reductions for franchise fees (0.1 ¢/kWh) Item 3
PRESENTATION
16 Estimated Customer Billing Rate Breakdown and
Comparison Y -o-Y
Note
Total CARE/FERA bill discount (including T&D) vs average residential customer, assuming the same usage (491 kWh/month) is about 49%.
On average, CARE/FERA usage is about 12% lower than that of an average E -TOUC customer.
Delivery rates are estimated to increase approximately 5% Y -o-Y (load weighted for SVCE customer portfolio) 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) $ 0.15 $ 0.11 $ 0.15 $ 0.11 $ 0.15 $ 0.11 $ 0.16 $ 0.11 $ 0.15 $ 0.11 SVCE Gen Rate ($/kWh) $ 0.13 $ 0.07 $ 0.13 $ 0.07 $ 0.13 $ 0.07 $ 0.14 $ 0.07 $ 0.13 $ 0.07 PG&E Delivery Rate ($/kWh) $ 0.28 $ 0.28 $ 0.11 $ 0.12 $ 0.29 $ 0.30 $ 0.21 $ 0.23 $ 0.16 $ 0.19 PG&E PCIA/FF ($/kWh) $ 0.01 $ 0.04 $ 0.01 $ 0.03 $ 0.01 $ 0.04 $ 0.01 $ 0.04 $ 0.01 $ 0.03 Total Electricity Cost ($/kWh) $ 0.42 $ 0.39 $ 0.25 $ 0.22 $ 0.43 $ 0.40 $ 0.36 $ 0.34 $ 0.30 $ 0.30 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** $ 2.95 $ 0.53 $ 20.46 $ 14.70 $ 11.18 $ 1.95 $ 143.58 $ 25.04 $ 865.00 $ 156.64 Av. Monthly Cost at SVCE Gen Rate* $ 206.56 $ 191.13 $ 106.38 $ 97.27 $ 802.58 $ 749.39 $ 8,140.10 $ 7,715.87 $ 45,048.24 $ 44,201.98 Av. Monthly Cost at PG&E Gen Rate* $ 209.51 $ 191.66 $ 126.84 $ 111.97 $ 813.76 $ 751.34 $ 8,283.68 $ 7,740.91 $ 45,913.24 $ 44,358.62 *Estimated, based on average historic SVCE usage for corresponding customer class. **Estimated, based on current PG&E 2025 rates as of September 1, 2025 and SVCE 2025 rates as of May 1st, 2025. Excludes One-Time Bill Credit distributed in Sept. 2025, equal to approx.. 6% annual discount ***Gen rates are estimated based on PG&E Errata (November 6, 2025) and delivery rates are based on PG&E Preliminary Annual Electric True-Up Submittal (November 17, 2025) data for CCA/DA customers.
Residential Res CARE* Small Commercial Medium Commercial Large Commercial Item 3
PRESENTATION
17 Comparison to PG&E’s May ERRA Forecast of
2026 Rates
• Had SVCE used PG&E’s
initial 2026 rate forecast to
develop the adopted
budget , SVCE revenues
would drop by ~ $120
million as opposed to
~$40 million
(drop in revenues from the adopted
budget to the current updated
budget)
• Alternatively, from adding
$40 million to reserves to
now drawing ~$60 million
from reserves
PG&E Gen Rate:
10.50 ¢/kWh SVCE Gen Rate 7.03 ¢/kWh
1% SVCE discount
PCIA 3.37 ¢/kWh
SVCE Customer Billing Gen Rate 10.40 ¢/kWh
* Source: PG&E ERRA Forecast released on May 15, 2025 (Weighted for SVCE Portfolio Load) ** PG&E 2025 Average Rate, effective January 1, 2025 (Weighted for SVCE Portfolio Load) *** Estimated 2026 rates, based on PG&E Fall Update Errata, effective January 1, 2026 (Weighted for SVCE Portfolio Load) Above margin analyses ignores minor reductions for franchise fees (0.1 ¢/kWh) 2025 Rate ** PG&E May ERRA
2026 Forecast Rate *
PG&E Gen Rate:
15.17 ¢/kWh SVCE Gen Rate 13.55 ¢/kWh
4% SVCE discount
PCIA 1.02 ¢/kWh
SVCE Customer Billing Gen Rate 14.57 ¢/kWh
PG&E Gen Rate:
12.79 ¢/kWh SVCE Gen Rate 11.47 ¢/kWh
1% SVCE discount
PCIA 1.19 ¢/kWh
SVCE Customer Billing Gen Rate 12.67 ¢/kWh
Updated Budget
Forecast 2026
Rate***
Item 3
PRESENTATION
18 CARE and FERA Customer Eligibility Criteria
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*
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.
* 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)*
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.
Item 3
PRESENTATION
19 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.
Item 3
PRESENTATION
20 FY25 -26 Budget Development Timeline
Budget Framework Full-Year Update
“Adjusted December Budget” “Mid-Year Budget”
June August August
Discuss the high -level
budget framework
and stress analysis
with the Finance and
Admin Committee
Review the draft
budget with the
Finance & Admin
Committee
Present the draft
budget to the BOD
for review and
feedback
March
Present the mid -
year budget to
the BOD for
approval
Present the stress test
analysis to the BOD
June
November December
Review adjustments to the budget
to reflect updates to PCIA and
PG&E gen rate assumptions with
the Executive Committee and
Finance & Admin Committee
Present the
adjusted
budget to the
BOD for
approval
February
Review the mid -year
budget with the Finance
and Admin Committee
Present to the BOD the
budget, incorporating
any feedback received
in August
September
Oct 1st
Fiscal Year
Start
Item 3
PRESENTATION
21 Glossary
• 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 3
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
Community Grants
Program Development
Executive Committee Meeting
December 5, 2025
Item 4
PRESENTATION
SILICON
CLEAN
2 A. Update on Community Grants Program Development
1. Background
2. Grant Overview
3. Next Steps
Purpose of Presentation
Provide an informational update on the developing new grant program Item 4
PRESENTATION
3 Grants History
1. 2020 Community Resilience Grant Program, $5M
• Noncompetitive grants for Member Agencies
• Scheduled to conclude 12/2024
2. 2022 Decarb Engagement & Demonstration Grant, $3.6M
• Competitive grants for Member Agencies and community organizations • Scheduled to conclude 12/2024
3. 2024 Round of Grants, $10.5M
• Noncompetitive grants for Member Agencies
• Competitive grants for Member Agencies
• Competitive grants for community organizations such as schools, faith-based institutions, and nonprofits
Item 4
PRESENTATION
4 • SVCE’s 2020 grant allowed Member Agencies to partner with Community Orgs and 2022 grant allowed Community Orgs to apply
• No Agencies partnered with community groups in 2020 grant • Only received 1 application from a school district in 2022 grant • SVCE conducted a survey to Community Orgs
• Schools that had facility managers had more capacity and familiarity with building upgrades • Found that Technical Assistance (TA) and education on electrification were heavily needed for faith-based institutions and nonprofits
Learnings from past grants and survey led SVCE to create a dedicated grant for these groups with TA offered to ensure fairness
Eligible Community Organizations
Intentionally made “Community Orgs” broad to gauge interest and not limit eligibility Item 4
PRESENTATION
Value Added to the Community
• Dedicated Funding to Key Community Groups – Build
relationships with key groups that serve the community
• GHG Emissions Reduction – Reduces emissions and
demonstrates solutions
• Public Engagement & Demonstration– Projects engage
regular people and invite media and public officials’ attention • Learning from Projects - EM&Vs will be conducted on all projects to expand program learnings and can be distributed • Leader in Innovation – Our Decarbonization Engagement & Demonstration Grant won the 2023 CalCCA Community
Impact Awards. Continue the momentum!
Los Altos Hills used its $120,000 grant to install
Battery Storage and Interactive Kisok at the Los
Altos Hills Town Hall.
Item 4
PRESENTATION
Allocation Breakdown
$3.5M of the program’s total $10.5M is allocated to Community Grants:
$10.5M Allocation
$3.5M for
Community
Orgs
$3.5M for
competitive
member
agency
grants
$3.5M Competitive Community
Grants
• Eligible Project: electrification,
and energy resilience
• Technical Assistance: provided as
needed
• Launch: spring 2026
$3.5M for
noncompetitive
member agency
grants
Member Agency
Grants already
underway!
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PRESENTATION
Community Grants Funding Allocation
$3.5M
$1M for
Community
Orgs
$2.2M for
Schools
$300,000 for
Technical
Assistance
Estimated Goal of Projects to Fund
• Schools:
• Amount $2.2M
• Range of $500K - $1M
• 2-4 projects
• Community Orgs:
• Amount $1M
• Range of $300K - $1M
• 1-3 projects
• Technical Assistance:
• Total Amount $300,000
• Covers all projects
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PRESENTATION
Community
Grants Overview
8 Item 4
PRESENTATION
9 Eligible Projects
Morgan Hill used a portion of its Decarb
Demonstration Grant to host a ribbon cutting/
pet adoption/ induction cooking demonstration
event.
Electric Vehicles & Associated Chargers
• Electric vehicles for community use (rideshares, school buses, shuttle services)
• Public/private EV chargers (L2 or DCFC)
Building Electrification
• Removal of gas infrastructure and replacement with electric equipment at a public site (heat pump water heater or heating, ventilation & air conditioning) • Kitchen electrification
Energy Resilience
• Installation of solar and battery storage or battery to existing solar on a building to function as a resilience center
• Mobile off-grid EV chargers for emergency or flexible charging needs Not an exhaustive list, SVCE will consider projects that align with our mission, reduce emissions, and engage the community
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PRESENTATION vb
10 Required Education Component
Grantees are required to include an
education and outreach component in the
project
• Education and outreach is expected to
engage wide audiences, including
teachers, parents/guardians, and their
constituents
• Could include a ribbon-cutting event,
educational flyers, and block parties.
• SVCE staff and Technical Assistance
providers can assist awardees
Mountain View used its Decarb Engagement Grant to conduct a building electrification campaign for multilingual residents, renters, and multifamily properties.
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PRESENTATION
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11 Outreach and Engagement Strategy
Objectives • Tactics
Strengthen local
partnerships and
provide capacity
support to community
organizations to
drive long-term
decarbonization goals
• Present public comment at city and town council meetings to increase awareness among city staff and elected officials • Host information sessions and workshops with community leaders
• Engage SVCE's school network and email listserv created through the School Scholarship and Grants programs
• Communicate with and distribute materials to facility managers for schools' buildings
• Promote across social media and SVCE website
• Develop application template and checklist to help applicants understand required components, organize materials, and submit strong proposals
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PRESENTATION
12 March-April 2026 Summer 2026
Community Grants projects
selected in Summer 2026
January - February 2026
Technical Assistance
Provider contract will be
brought to the BOD
SVCE launches
Community Grants
Application
Conduct outreach
Hold informational
webinars
Finalize program
design of Community
Grants
Timeline of Activities
November - December 2025
Request for
Proposal for
Technical
Assistance Provider
posted
Continue to design
Community Grants
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PRESENTATION
Thank you!
13 Item 4
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14 Appendix
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Use color
change to
indicate new
topic, etc.
(Optional!)
TECHNICAL
ASSISTANCE
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PRESENTATION
16 Scope of Technical Assistance
• Grant awardees will have the opportunity to “opt-in” for Technical Assistance during the application process
• Technical Assistance can support all or part of their projects • Technical Assistance will be available to support awardees for the full duration of the grant
• Assistance for Electric Vehicle and Electric Vehicle Infrastructure projects will be added at a later time through SVCE’s Electric Vehicle Technical Assistance Program
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PRESENTATION
17 Technical Assistance – BE + Resilience
External Vendor
Building Electrification-
• Gas appliances, related piping,
and outdated electric
equipment removed and
replaced with efficient electric
equipment, such as a heat
pump space and water heating
technology and induction
cooktops.
Building Energy Resilience -
• Energy resilient building
opportunities with the
installation of solar paired with
battery storage, or adding
battery storage to existing
solar on a building to function
as a resilience center.
Item 4
PRESENTATION