• Subtitle
New SV Clean Energy
PowerPoint Template
Approve 2026 Silicon Valley Clean
Energy Board of Directors Regular
Board Meeting Schedule
SVCE Board Meeting
December 10, 2025
Item 3
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
2 Recommendation
Approve the 2026 Board of Directors regular
meeting schedule.
Item 3
PRESENTATION
3 2026 Proposed Meeting Schedule
• Second
Wednesdays of
the month at 7:00
p.m.
• Summer hiatus:
July 2026
• Conflict:
November
January 14, 2026
February 11, 2026
March 11, 2026
April 8, 2026
May 13, 2026
June 10, 2026
No meeting in July
August 12, 2026
September 9, 2026
October 14, 2026
TBD
December 9, 2026
Item 3
PRESENTATION
4 Options for Rescheduled November Meeting
• Thursday, November 12, 7pm
• Friday, November 13, 3pm
• Friday, November 13, 5pm
• Friday, November 13, 7pm
• Other?
Item 3
PRESENTATION
Thank you
5 Item 3
PRESENTATION
1 • Subtitle
New SV Clean Energy
PowerPoint Template
2025 Legislative Report
2026 Policy Platform and
Legislative Ad Hoc Committee
Bena Chang, Director of Government and Legislative Affairs Chris Micheli, SVCE’s State Lobbyist
Item 4
PRESENTATION
Bena Chang, Director of Government and Legislative Affairs Chris Micheli, SVCE’s State Lobbyist
2025 Legislative Report
2026 Policy Platform and
Legislative Ad Hoc Committee
SILICON VALLEY <3/ CLEAN ENERGY
2 Title of the Page
State 2025
Update and
2026 Forecast
Item 4
PRESENTATION
State 2025
Update and
2026 Forecast
3 Title of the Page
Federal Update
Item 4
PRESENTATION
4 2025 Review and 2026 Forecast
Activity slowed/stopped during shutdown
• H.R. 1 Passage: Changes to energy and consumer tax credits • Upcoming issues:
• Affordability
• Permit Streamlining
• Data Centers
Item 4
PRESENTATION
0 2025 Review and 2026 Forecast
Activity slowed/stopped during shutdown
H.R. 1 Passage: Changes to energy and consumer tax credits Upcoming issues:
Affordability
Permit Streamlining
Data Centers
4 2026 Legislative
Policy Platform
Item 4
PRESENTATION
2026 Legislative
Policy Platform
6 2026 Legislative Policy Platform
Summary of Key Changes
• Updated language to streamline policies and reflect recent legislative/regulatory actions
• New Language
• Data Centers
• Customer Accessibility
Item 4
PRESENTATION
Summary of Key Changes
Q) 2026 Legislative Policy Platform
Updated language to streamline policies and reflect recent legislative/regulatory actions
New Language
Data Centers
Customer Accessibility
6 7
Legislative Ad Hoc Committee
Request Board approval to establish Legislative Ad Hoc Committee.
Purpose:
• Facilitate engagement between SVCE Board
and staff on legislative issues
Item 4
PRESENTATION
O Legislative Ad Hoc Committee
Request Board approval to establish Legislative Ad Hoc Committee.
Purpose:
Facilitate engagement between SVCE Board
and staff on legislative issues
8 Recommendations
1.Approve SVCE’s 2026 Legislative Policy
Platform; and
2. Create the 2026 Legislative Ad Hoc
Committee
Item 4
PRESENTATION
8 (^) Recommendations
1. Approve SVCE’s 2026 Legislative Policy
Platform; and
2 Create the 2026 Legislative Ad Hoc
Committee
9 Wrap up and
next steps
Item 4
PRESENTATION
1 • Subtitle
New SV Clean Energy
PowerPoint Template
Fiscal Year 2025 -2026 Budget
Update
Amrit Singh
Board of Directors
December 10, 2025
Item 5
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
Fiscal Year 2025-2026 Budget
Update
Amrit Singh
Board of Directors
December 10, 2025
2 Main Areas of Discussion
Purpose
Authorize the implementation of SVCE
generation rate changes and adopt the
updated fiscal year 2025-2026 operating
budget.
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
Item 5
PRESENTATION
Purpose
Authorize the implementation of SVCE
generation rate changes and adopt the
updated fiscal year 2025-2026 operating
budget.
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
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 5
PRESENTATION
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. 3 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 5
PRESENTATION
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 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 5
Comparing 2025 Rate
PRESENTATION
(firstbanto 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
Rate***
4% SVCE discount
$1% SVCE discount
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>G&E Gen Rate:
10.50 <r/kWh
PG&E Gen Rate
15.17 <t/kWh
* 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) m 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<t/k\Nh) 2025 Rate** Updated Budget
Fprecast2026
Adopted Budget
Forecast 2026 Rate*
>G&E Gen Rate:
10.50 <t/kWh
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si
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 5
PRESENTATION
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
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) 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 5
PRESENTATION
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
7 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 5
PRESENTATION
Keeping DCOH Above 250
( Under Business-as-Usual Scenario with Additional Operating Liquidity) Recommended Reserve
Management Goal: Keep
DCOH Above: 250 (under
these financial conditions)
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)
8 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 5
PRESENTATION
Implementing Rate Premium in 2027 to Keep
DCOH Above 250
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 of1% lower than those ofPG&E, and low-income customers receive an additional $12 monthly bill credit.
On average, SVCE rates
would need to be about
2.7% higher than PG&E
starting in CY 2027 (including
CARE/FERA)
9 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 5
PRESENTATION
For Calendar Year 2026:
CD Staff Recommendation
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 10 11
Recommendation
Adopt Resolution 2025 -24:
1) Authorizing the CEO to implement SVCE generation rate changes to establish a 1 % discount to PG&E’s applicable generation rates, provide a $12 monthly bill credit to CARE/FERA customers, and update the GreenPrime rate premium to $0.0074/kWh, when PG&E’s updated rates are implemented, expected to be January 1, 2026, or after allocation of the sufficient time window for implementing new generation rates in SVCE’s billing system, expected to be within three weeks of PG&E’s release of the new 2026 rates. 2) Updating the fiscal year 2025 -2026 operating budget that projects withdrawal of $60.5 million from the reserves, considering updated revenues, power supply expenses, and investment -earning forecasts; and allocation of $5.5 million to the building fund.
Item 5
PRESENTATION
Adopt Resolution 2025-24:
1)
CD Recommendation
Authorizing the CEO to implement SVCE generation rate changes to establish a 1% discount to PG&E’s applicable generation rates, provide a $12 monthly bill credit to CARE/FERA customers, and update the GreenPrime rate premium to $0.0074/kWh, when PG&E’s updated rates are implemented, expected to be January 1, 2026, or after allocation of the sufficient time window for implementing new generation rates in SVCE’s billing system, expected to be within three weeks of PG&E’s release of the new 2026 rates. 2) Updating the fiscal year 2025-2026 operating budget that projects withdrawal of $60.5 million from the reserves, considering updated revenues, power supply expenses, and investment-earning forecasts; and allocation of $5.5 million to the building fund. 11 12
Thank you! / Questions?
Item 5
PRESENTATION
Thank you! / Questions?
12 13
Fiscal Year 2025 -
2026 Annual
Operating Budget
($ 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 5
PRESENTATION
Fiscal Year 2025-
2026 Annual
Operating Budget
13 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 5
PRESENTATION
CD Average Effective Customer Billing Rates
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
Customer Billing
Rate ( /kWh)
SVCE gen rate
discount vs PG&E
PCIA & Franchise Fee* ( /kWh)
SVCE Gen Rate* ( /kWh)
★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 customers. 14 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 SVCE 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 5
PRESENTATION
PG&E Total 2025
Rate: 36.69 <t/kWh»
PG&E delivery
rate, on average,
is estimated to
increase by
about 5%
t 4% SVCE discount
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PG&E Total 2026
Rate: 33.13 tf/kWh**
*PG&E 2025 Average Rate, effective January 1, 2025 and estimated total delivery rates as of September 1, 2025 (Weighted for SVCE Portfolio Load) **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.
Above margin analyses ignores minor reductions for franchise fees (0.1 ct/kWh) 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 5
PRESENTATION
Estimated Customer Billing Rate Breakdown and
Comparison Y-o-Y
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) 16 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 5
PRESENTATION
Rate***
17 Alternatively, from adding
$40 million to reserves to
now drawing ~$60 million
from reserves
PG&E Gen Rate:
15.17 <t/kWh
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)
Updated Budget
Fprecast2026
* 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) m 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 cf/kWh) 2025 Rate** PG&E May ERRA
2026 Forecast Rate*
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 5
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 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 5
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.
19 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 5
PRESENTATION
Budget Framework Full-Year Update
June June August August September
Adjusted December Budget' Mid-Year Budget’
Oct 1st November December February March
20 FY25-26 Budget Development Timeline
Present the stress test
analysis to the BOD
Discuss the high-level
budget framework
and stress analysis
with the Finance and
Admin Committee
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
Review the mid-year
budget with the Finance
and Admin Committee
Present the mid¬
year budget to
the BOD for
approval
Present the draft
budget to the BOD
for review and
feedback
Review the draft
budget with the
Finance & Admin
Committee
Fiscal Year
Start
Present to the BOD the
budget, incorporating
any feedback received
in August
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 5
PRESENTATION
CD Glossary
21 • Subtitle
New SV Clean Energy
PowerPoint Template
Data Centers & Large
Load Briefing
Board of Directors Meeting
12/10/2025
Item 6
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
Agenda
1. Data Center Overview
2. California Specific Issues
3. Impact to SVCE
Item 6
PRESENTATION
Data centers are nothing new, but AI data centers
are fundamentally different
Standard Data Center AI Data Centers
Tasks Webservices, storage
(e.g. Netflix and Gmail)
AI training models and high
intensity compute tasks
Typical use per rack 7-15 kW 30-50 kW*
Total Global Use (2023) ~325 TWh/yr ~85 TWh/yr
Growth Moderate Rapid
Location Needs Generally minimal Generally fiber connection, may need to be close to
engineers (latency), may
need water for cooling
*Estimates for energy use per rack vary widely; forward looking estimates are even more varied due to differing views on efficiency gains and potential higher computationally intensity activities.
Item 6
PRESENTATION
How Much Load?
• There is large range of
forecasts for data center
loads.
• Most forecasts expect data
centers to be equivalent to
~5-15% of current US
electricity load by 2030.
• 1-3 California sized
loads.
Source: World Resources Institute. September 2025.
Item 6
PRESENTATION
Terawatt-hours (TWh)
1,000
•
BCG
Jeffries
X •IEA
EPRI historical
> McKinsey
•LBNL high*
EPRI higher / Goldman Sachs
LBNLlow;^
"
-•BNEF
-•
EPRI high
S
EPHI moderate
EPRI low
2021 2026 2028 2030
Remember the incentives:
• IOUs make money by building infrastructure
• Tech companies' valuations increase on announcement of new data centers Drivers of Load and Uncertainty
• Pace of AI adoption
• Is it real? How many “phantom data centers” are out there? • Efficiency gains
• Electricity a major driver of operating costs (15-25% or more) so there is significant incentive to make hardware more efficient. • Infrastructure constraints
• How quickly can utilities build?
Item 6
PRESENTATION
Impact on Affordability
In theory data centers could improve affordability for ratepayers.
Utility costs for transmission and distribution are largely fixed; higher utilization of poles and wires due to large high utilization load such as data centers reduces cost per kWh. 𝟗𝟎, 𝟎𝟎𝟎, 𝟎𝟎𝟎 𝑴𝑾𝒉
𝟑, 𝟎𝟎𝟎, 𝟎𝟎𝟎, 𝟎𝟎𝟎 = 𝟑𝟎 𝒄𝒆𝒏𝒕𝒔
𝟗𝟓, 𝟎𝟎𝟎, 𝟎𝟎𝟎 𝑴𝑾𝒉
𝟑, 𝟓𝟎𝟎, 𝟎𝟎𝟎, 𝟎𝟎𝟎 = 𝟐𝟕 𝒄𝒆𝒏𝒕𝒔
For generation, costs are largely variable so increased load may or may not improve affordability.
In theory, data centers may have a “good shape” allowing average cost to serve to decrease. “Increase the Denominator”
70 75
80 85
0 20
40 60
80 100
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 MW Load
$/MWh
Data Center Load Imposed over Daily Market Prices
(Illustrative Only)
Energy Price Data Center Load
Item 6
PRESENTATION
Broader Societal Impacts
Benefits: Data centers may increase tax base and add jobs.
PG&E estimates 10 GW of data center load growth could*:
• Lower customer electric bills by 10% or more by spreading fixed costs across more energy usage. • Create 50,000 construction jobs and 115,000 associated support jobs. • Add 5,000 permanent tech jobs and 28,500 permanent support roles. • Generate $1.25 to $1.75 billion in increased property tax revenue. • Contribute $2.5 to $3 billion in additional sales tax revenue.
Concerns:
There is increasing regulatory and legislative attention on data centers across the country, including in California.
Concerns include costs, water use and quality of living impacts (noise/light pollution).
For the electricity sector in particular:
• If this load doesn’t materialize there are significant stranded asset risks. • Rate design may allow cost shifts between existing customers and new data centers. • Even if no build occurs the ancillary expenses of studying “phantom data centers” is costly and requires time commitment from electricity planners that could be better used for projects which have higher societal value. *Source: PG&E Corporation - PG&E Data Center Demand Pipeline Swells to 10 Gigawatts with Potential to Unlock Billions in Benefits for California Item 6
PRESENTATION
California In Context
California is not a big player in
data centers, likely due to high
electricity rates and slow build
times.
While some large data centers
may be developed here, CA will
likely also develop small scale
facilities for specialized use
cases, especially where latency
is an issue.
The majority of new build is
expected in PJM and ERCOT
markets.
Source: Aurora Energy Research
Item 6
PRESENTATION
Hyperscalers, 2024 capacity
GW power capacity
OGW 0-0.5GW M 0.5-1GW M1-2GW M2-4GW M >4GW
1) Includes Apple.CoreWeave, andOpenAI.
Hyperscalers, 2024 capacity by state(top10)
But…
Source: PG&E Q3 2025 Earnings Presentation
PG&E does forecast
meaningful data center
load, much of which is
concentrated in Silicon
Valley.
However, only 50MW
of data center load is
under construction, a
number that hasn’t
changed over the past
three quarters.
Item 6
PRESENTATION
Enabling Affordable Load Growth...
Data Center Pipeline1
MWs June 2025 September 2025
Total 10,000 9,600
Application &
Preliminary Engineering 8,450 7,950
Final Engineering 1,500 1,600
Construction 50 50
Estimated Long-Term Customer Savings2:
1 GW = 1%-2% Electric Bill Reduction
Working with our largest customers and
data center developers to find the most
economical build out, accelerate
interconnection timelines, and deliver
optimal reliability
Final Engineering
18 total projects
Increased by 100 MWs during Q3
Expect several projects in-service
during 2026
Load ramps over time, 95% of MWs
estimated to be available by 2030
...Economic Prosperity For Customers And California
Rule 30
What is it:
A PG&E application to allow data centers to expedite interconnection by allowing the customer to pre-pay for transmission upgrades; the customer will be reimbursed after the load “shows up” and the assets will enter rate-base to be paid off by all customers.
Outcomes so far in Interim Implementation:
• CCAs will now receive customer transmission applications within 20 days of them being submitted to PG&E.
• CCAs will receive quarterly updates on project status to help improve internal forecasting necessary for budget and power procurement activities.
Still Pending:
• Final implementation including making above data sharing permanent. • Rules for customer commitment timelines.
• How long prior to energization must customers commit to an LSE. • How long are they committed to the LSE.
Item 6
PRESENTATION
Issues for Generation Providers
Customer Retention and Risk Management:
Currently customers can switch between CCA and PG&E bundled service with limited restrictions. Under existing rules, if CCAs procure for large loads that leave their service, costs must be recovered from remaining customers.
Procurement Orders and Compliance Obligations:
• In September 2025 the CPUC issued a Needs Assessment which found a need for 6,000 MW of additional net qualifying capacity (NQC) by 2032.
Nearly half of this need is due to load growth from data centers in the current CEC load forecast.
• The CEC forecast also underlies annual RA requirements for LSEs. Currently this is only 1 year ahead, somewhat mitigating impacts of load forecast errors.
Item 6
PRESENTATION
Next Steps: Forecasting
• SVCE intends to use a combination of Rule 30 applications information and intelligence from our Customer Success team and member agencies to forecast data center loads.
• We met with numerous cities’ planning departments earlier this year. • Customer Success team is in touch with numerous customers contemplating or planning data center load.
The goal is to develop a defendable forecast that best positions the procurement and finance teams to execute on developing SVCE’s portfolio while minimizing risk.
Item 6
PRESENTATION
Next Steps: Regulatory Advocacy
• SVCE regulatory team continues to advocate in Rule 30 proceeding to improve access to data center information from IOUs.
• Staff is engaged in CEC Integrated Energy Policy Report (IEPR) process to help develop long-term statewide forecast assumptions related to data centers. • SVCE intends to engage in any future proceedings related to data centers/large loads at the CPUC.
Item 6
PRESENTATION
Next Steps: Customer Engagement
• Continue to look for ways to expand support and engagement with large load customers (e.g. C&I decarb, billing support, custom pricing). • Exploring alternative rate options to serve largest loads under new paradigm. New key questions:
• Do we treat these the same as other loads or uniquely? • How to protect SVCE and other customers if they don’t show up (or leave)? • Do they get credit for our existing resources and reserves? • What SVCE policies might need to change to accommodate these loads? Item 6
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
Financial Levers
Introduction: SVCE’s Story
Justin Zagunis and Monica Padilla
Board of Directors
December 2025
Item 7
PRESENTATION
SILICON
CLEAN
SVCE’s
Mission:
Reduce dependence
on fossil fuels by
providing carbon free,
affordable, and
reliable electricity and
innovative programs
for the SVCE
community.
2 Item 7
PRESENTATION
3 We serve a community with varied needs in
varied ways
Item 7
PRESENTATION
4 How have we positioned ourselves today?
We’ve been able to do it all!
REDUCE DEPENDENCE ON FOSSIL FUELS THROUGH:
Item 7
PRESENTATION
RELIABILITY
CLEAN ENERGY
«
INNOVATIVE
PROGRAMS AFFORDABILITY
5 CLEAN
COMPETITIVE
+ LOCAL CONTROL + LOCAL REINVESTMENT +HERE IN YOUR COMMUNITY +FOR OUR CUSTOMERS REDUCE DEPENDENCE ON FOSSIL FUELS THROUGH:
How have we positioned ourselves today?
We’ve been able to do it all!
Item 7
PRESENTATION
RELIABILITY
CLEAN ENERGY
INNOVATIVE
PROGRAMS AFFORDABILITY
$4 billion invested in long-term clean power
$205 million 6in lifetime bill savings
Subset of SVCE accomplishments
Solar and Storage at South Santa
Clara County Fire District in Gilroy
contractors trained
~350
customers served through Go
Electric Advisor service
~2,300
Rotated Off-Grid EV Chargers at
Sunnyvale Public Buildings
Item 7
PRESENTATION
-600
Level 1, 2, and DCFC
chargers installed
-2,000
heat pump HVAC
systems installed heaters installed
Today is a starting point for us to re-explore priorities and tradeoffs Exec Committee
(info item)
Oct 2025
BOD (introduction
to concepts)
Dec 2025
BOD (specific
modeled scenarios)
Feb/Mar 2026
BOD (final decisions
on values and
priorities)
May/Jun 2026
BOD Study Session
(initial feedback on
values and priorities)
Dec 2025 (Fri)
BOD (if
needed,
incorporate in
budget)
Sep 2026
*Timeline subject to change
Item 7
PRESENTATION
Forecasting a drop in PG&E rates
$123
$133 $140
$162
$180
$203 $205 $194
Total Average Bill Based on 491 kWh Monthly
Item 7
PRESENTATION
Cost, centj/kWh
Residential Electricity Rates with Average Total Bill
5 0
2019 2020 2021 2022 2023 2024 2025 2026
Year
—T&D/NBC Gen Total
9 Drivers:
• clean targets
• PPA price increases and compliance
obligations (RPS, RA)
• discount against PG&E
• PCIA
• program spend
SVCE’s forecast shows reserves drawdown
under current budget and priorities
Item 7
PRESENTATION DCOH
Days Cash on Hand (DCOH)
^DCOH(Inc.Unspent Earmarked Funds)*
Max Reserves (500 DCOH)
^“MinReserves (120 DCOH)
DCOH (ExcL. Unspent Earmarked Funds)*
^"Target Reserves (350 DCOH)
*
Earmarked funds are unspent SVCE Program Fundsand Building Funds. 10 Today: discuss ‘levers’ that exist and how they
affect the value proposition –range of possibilities
CLEAN
COMPETITIVE
+ LOCAL CONTROL + LOCAL REINVESTMENT +HERE IN YOUR COMMUNITY +FOR OUR CUSTOMERS Item 7
PRESENTATION
RELIABILITY
CLEAN ENERGY
INNOVATIVE
PROGRAMS AFFORDABILITY
11 LEVER 1: moving from a rate discount to a
premium
CLEAN
COMPETITIVE
cheaper
+ LOCAL CONTROL + LOCAL REINVESTMENT +HERE IN YOUR COMMUNITY +FOR OUR CUSTOMERS • Cheaper vs competitive
• $205M lifetime savings today
• A 2.7% premium in future would means avg res monthly
electric bill goes from $194 to $195.30 (compared to
$205 today)
Item 7
PRESENTATION
RELIABILITY
CLEAN ENERGY
INNOVATIVE
PROGRAMS AFFORDABILITY
12 Opt-out considerations
• Sensitivities differ between res and non-res
• Other CCAs – low opt outs even after higher rates
• Costs are mostly variable; all customers contribute
to fixed costs
• Higher opt-out rates may impact our decarb goals
Not all-or-nothing:
Have a minimum green product option that is cheaper than PG&E (opt-down)
Increase CARE/FERA SVCE credit or make minimum product
their default
Item 7
PRESENTATION
Figure 1: Level of Importance for Each Service SVCE Provides (n=476) Keepingthe cost of electricity low 69% | 7%
Extremely important bVery important b Moderately important bSlightly important b Not at all important 13 LEVER 1: impact estimate
Waiting provides more clarity
Waiting also forces more aggressive action later
• 4-year premium of ~2.7% (blue) for to end at 250 DCOH:
~$1.30 per month above PG&E for res
• 3-year premium of ~3.6% (gold) for to end at 250 DCOH:
~$1.90 per month above PG&E for res
Would end FY2030 at ~$160M in lifetime savings for customers Assumes no opt-outs
Item 7
PRESENTATION
DCOH by Scenario
50 o
FY2026 FY2027 FY2028 FY2029 FY2030
—(1) Mini-Budget Base Case
— (lb) Mini-Budget Base Case with OpEx and Programs Spend Reductions
—(1c) Scenario lb with a 4-Year (CY27-30)
(Id) Scenario lb with a 3-Year (CY28-30)
14 LEVER 2: loosening clean electricity targets
CLEAN
COMPETITIVE
+ LOCAL CONTROL + LOCAL REINVESTMENT +HERE IN YOUR COMMUNITY +FOR OUR CUSTOMERS • SVCE 100% clean since 2017 (exception 2024)
• Clean Pathways - Board reaffirmed annual clean target and set accelerated Renewable Portfolio Standard (RPS)
of 75% by 2030
• California mandate is 100% clean by 2045 and 60% RPS
by 2030 ?
Item 7
PRESENTATION
RELIABILITY
CLEAN ENERGY
INNOVATIVE
PROGRAMS AFFORDABILITY
15 Defining “clean energy”
• Portfolio of clean resources (steel in the
ground!)
• Grid enhancing projects (geothermal,
long-duration storage, Hanford Hybrid)
• On track to meet 75% RPS by 2030 and
100% clean annually
• Power Content Label is the "report card"
for measurement of clean
• Clean on an hourly basis is not required,
but tracked and reported
• Decarb programs are also clean – and
local
Item 7
PRESENTATION
16 LEVER 2: impact estimate
Minimum RPS compliance is 52% RPS by 2028 and
60% RPS by 2031*
Moving to minimum compliance (purple) results in
257 DCOH by the end of 2030
Would raise typical SVCE emissions factor from nearly
0 lbs CO2e/MWh to >350 lbs CO2e/MWh
Assumes no opt-outs
*Note: SVCE has met its 100% clean target through calendar year 2027
Item 7
PRESENTATION
DCOH by Scenario
50 o
FY2026 FY2027 FY2028 FY2029 FY2030
—(1) Mini-Budget Base Case
— (lb) Mini-Budget Base Case with OpEx and Programs Spend Reductions
—(Ie) Scenario lb with Minimum RPS Compliance for FY27-30 17 LEVER 3: scaling back decarb programs
CLEAN
COMPETITIVE
+ LOCAL CONTROL + LOCAL REINVESTMENT +HERE IN YOUR COMMUNITY +FOR OUR CUSTOMERS • Program funds sit in reserves until spent;
currently close to $100M
• Over 80% of that is in programs that are
currently live to customers
• Focused on removing local, key barriers to
widespread electrification
Item 7
PRESENTATION
AFFORDABILITY
18 LEVER 3: impact estimate
Eliminating all program expenditures (blue) would
result in 257 DCOH by the end of 2030
Programs have touched 5,000+ customer accounts
and are projected to reach nearly 20,000 with
current budget
Programs are focused on remaining emissions from
transportation and buildings
Assumes no opt-outs
Item 7
PRESENTATION
DCOH by Scenario
50 o
FY2026 FY2027 FY2028 FY2029 FY2030
—(1) Mini-Budget Base Case
— (lb) Mini-Budget Base Case with OpEx and Programs Spend Reductions
—(If) Scenario lb with ZERO program spendfor FY27-30
19 Summary
Projected compression on margins and drawdown from reserves would require SVCE to adjust its course somewhat
Key levers affect the financial forecast: rates, clean, and programs Will also evaluate operational costs regardless of overall priorities (ongoing best practice) Item 7
PRESENTATION
20 Takeaways
Each lever has a wide range of options we can pursue, and can be mitigated in various ways – these are not “all or nothing”
SVCE can maintain its mission and have a compelling story for our customers even through pivots – they just change how we’d tell it
SVCE may not need to make any changes, but we want to have thought this through ahead of needing to take action in a future budget
Item 7
PRESENTATION
Next steps
Exec Committee
(info item)
Oct 2025
BOD (introduction
to concepts)
Dec 2025
BOD (specific
modeled scenarios)
Feb/Mar 2026
BOD (final decisions
on values and
priorities)
May/Jun 2026
BOD Study Session
(initial feedback on
values and priorities)
Dec 2025 (Fri)
BOD (if
needed,
incorporate in
budget)
Sep 2026
*Timeline subject to change
Item 7
PRESENTATION
22 • Initial clarification questions
• Friday Dec 12: discussion
Questions can also be shared with Andrea directly and will be incorporated into future presentations Input staff is seeking from BOD today
Item 7
PRESENTATION
APPENDIX
23 Item 7
PRESENTATION
This is a key strategic discussion
Financial levers:
Priorities and options to pursue if
required by financial picture
Annual budget process:
changes anticipated costs and
investments
Integrated Resource Plan:
changes forecasted resource
mix
Ongoing procurement:
signing contracts
Decarb Roadmap refresh:
setting decarb program and
supply-side objectives and
framework
Item 7
PRESENTATION
Forecasting a drop in PG&E rates, PCIA increase
Customer gen rate is coming
down significantly
This is good for overall
affordability goals
Item 7
PRESENTATION
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Item 7
PRESENTATION
2025 Rate** Adopted Budget Updated Budget
PG&E Gen Rate:
15.17 c/kWh
4% SVCE discount
Forecast 2026 Rate* Forecast 2026
Rate***
PG&E Gen Rate:
10.50 c/kWh
PG&E Gen Rate:
10.50 <t/kWh
• Source: CaICCA NewGen Model analysis using market data as of 6/27/2025 and estimated CPUC attribute benchmarks for CY 2025-2026 (Weighted faSVCE 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 (O.U/kWh) SVCE costs are predominantly power supply
FY26 approved budget:
$369M power supply expense (88%)
$43M operating expense (10%)
$8M programs and other (2%)
Program allocations remain in SVCE
reserves until spent on services or
incentives for customers
Program portfolio almost fully launched –
working to scale uptake
Data from FY26 budget
Item 7
PRESENTATION
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 28 Power supply costs have risen
Item 7
PRESENTATION
Historical and 10/4/2025 Forecast SVCE Net Portfolio Cost $/MWh 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Background – reserve target definitions
Item 7
PRESENTATION
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.
30 Key lever #3: program funds
• Annual earmark of ~$8M to be
spent on programs (moves from
green to pink)
• Still ~$100M from previous
allocations (several years saw
additional funds added)
• Draws down over time as
customers engage in
programs/services
Program allocation, not yet spent
Building funds, not yet spent
General reserves
TOTAL
RESERVES
(FY26 Budget)
Item 7
PRESENTATION
1 • Subtitle
New SV Clean Energy
PowerPoint Template
Integrated
Decarbonization
Roadmap
Board of Directors Meeting
Dec 10th, 2025
Item 8
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
Roadmap
Challenge
Statement:
How can SVCE
continue to meet
our mission amidst
changing
conditions?
2 Item 8
PRESENTATION
3 This 2026 roadmap will build off of
seven years of work to build a plan
focused to overcome future
challenges.
Decarb Strategy
& Programs
Roadmap (2018)
Building and EV
Join Action
Plans
(2019-2020)
Expand Reach
Code and local
policy strategy
(2019-2025)
Establish Clean
Pathways long-term supply
strategy
(2024)
Design and
implement a
full program
set
(2019-2025)
Integrated
Decarb
Roadmap
(2026)
Looking Ahead:
Reduced reserves?
New regulations?
New rates?
Load growth?
Item 8
PRESENTATION
4 Today: A review of emissions sources, customer
types, and decarbonization trends.
Today’s discussion:
• GHG trends and progress towards 2045
• Machines and the people who use them
• SVCE's role in community decarbonization
Friday’s Study Session:
• Deep dive into values, priorities, and tradeoffs in meeting SVCE’s goals
Item 8
PRESENTATION
5 How is the region
progressing toward
GHG targets? • Emissions have leveled off since post
-
Covid rebound.
• Transportation emissions remain flat
despite an increase in vehicle miles
traveled (VMT) due to increasing fuel
efficiency and EV adoption.
• Building emissions have remained
relatively flat since 2017, with annual
fluctuations influenced primarily by
weather and electricity emissions
factors.
Item 8
PRESENTATION
6 Emissions have decreased but there is a long way
to go to meet 2045 targets.
Source: SVCE 2024 GHG Inventory
Item 8
PRESENTATION
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9 Emissions from Transportation
Emissions from Natural Gas
Emissions from Electricity
(SVCE, PG&E, Direct Access)
Emissions Goal
7 Transportation emissions remain constant despite increased vehicle miles traveled (VMT) due to fuel efficiency and EV adoption.
On Road Transportation Emissions and Vehicle Miles Traveled Item 8
PRESENTATION
Total GHG Emissions (MT CO2e)
2.0M
1.5M
1.0M
0.5M
0.0M
2015 2017 2018 2019 2020 2021 2022 2023 2024
4bn
3bn
2bn
lbn
Obn
Commercial •Non-Commercial Total Annual VMT
Total Vehicle Miles Travelled
8 Building emissions have remained relatively flat since 2017 and are influenced primarily by weather and electricity emissions factors. 2022 2023 Item 8
PRESENTATION Emissions [MT CO^e]
Non-Res. Natural Gas
Res. Natural Gas
INon-Res. Electricity
Res. Electricity
Emissions come
from machines
and the people
who use them.
9 • Today's emissions come
from >1 million cars, furnaces,
water heaters, stoves, and
dryers used by residents and
businesses.
• Rental and owner-occupied
housing have the same
emission sources but very
different needs.
• Businesses are as unique as
households; different types
require different strategies.
Item 8
PRESENTATION
10 Climate targets require electrifying >1 million
machines by 2045.
• 421,000 ICE vehicles converted to electric vehicles2
• Electrify 100% of commercial vehicle miles traveled (about 400,000 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 2024 GHG Inventory
2. SVCE’s Vehicles Dashboard
3. SVCE Market Segmentation Study
Item 8
PRESENTATION
2024 Percent of Emissions by Source
100%
75%
50%
25%
Non-Commerical
Gasoline + Diesel
Offroad Emissions
Commercial Onroad
Gasoline + Diesel
Res. Buildings
Natural Gas
Non-Res. Buildings
Natural Gas
Res. Buildings Electricity
% Contribution of total
11 All residential emissions are dominated by space and water heating, but different customers require different support. • Electrify 81k clothes dryers
• Electrify 96k stoves
• Electrify 178k water heaters
• Electrify 128k space heaters
• Switch to 100% carbon-free electricity sources
Sources:
1. SVCE “Bill Impacts of Home Electrification” (Feb, 2024)
2. SVCE Market Segmentation Study
3. TECH 15th Quarterly Stakeholder Meeting (10/30/2025) Res. Space
Heating
Res. Water
Heating
Res. Cooking
Res. Clothes Drying
Res. Electricity
45%
41%
5%
4%
5%
Percent of Emissions by End-Use
(Existing Single-Family Home)
• 2/3 of residences across
SVCE are single-family
homes.
• 80% of single-family homes
are owner-occupied.
• About half of low-income
households live in
multifamily properties and
90% are rentals.
Item 8
PRESENTATION
100%
75%
50%
25%
12 Commercial buildings are as unique as households;
each business type requires specific solutions.
Item 8
PRESENTATION
• We have invested in community
programs that have spurred
early adoption.
• Reach codes expanded
electrification, accelerated state
policy and moved the market.
• Now – we build upon this
work to launch the next chapter
of regional decarbonization.
SVCE's role is to
act as a catalyst
that unlocks the
region's
decarbonization
potential to realize
its 2045 goals.
13 Item 8
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
14 The Decarbonization Roadmap effort will provide
evaluation tools to help guide strategic decisions.
1. Enhanced electrification planning:
• Refine fuel-switching adoption scenarios
• Connect supply-side planning and forecasting to decarb program strategy
2. Decarb program evaluation framework:
• Develop metrics to guide investments and track program 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 8
PRESENTATION
15 SVCE has executed on our initial decarb goals and now provides a diverse range of customer programs.
2,000
heat pump water
heaters installed
1,300
contractors trained
350
heat pump HVAC
systems installed
Level 1, 2, and DCFC
chargers installed
multifamily properties that
installed EV charging
600
40 customers served
through Go Electric
Advisor service
2,300
Rounded data as of 11/21/2025.
Item 8
PRESENTATION
s
16 Reach Codes: Moving the market, advancing
statewide code.
Local policy catalyzes electrification
- 2020-2023 New construction codes will
lead to >11,000 HPWHs
- Two-Way AC Codes could lead to as
many as 3000 HPs over three years
Item 8
PRESENTATION
Brad Wungluck, MPA. MCP. CBO
Douglas W. Thornburg. AIA. CBO
John "Buddy" Showalter. PE
SIGNIFICANT CHANGES TO THE
CALIFORNIA CODE
17 Early investment unlocks system improvements
and creates momentum essential to scale.
We are here.
Item 8
PRESENTATION
18 The first step in building the plan is to identify tradeoffs and set priorities. 2022
2023
How can we build off the success of reach codes to scale adoption? How do we expand electrification from early adopters to everyday people? How can we balance the need for speed and the need to address the hardest issues? How should rebate support evolve as regulations change? How should incentives vary based on customer income and need? Item 8
PRESENTATION
19 We can make wise choices that balance various
priorities and still support our diverse communities.
Item 8
PRESENTATION
20 Next Step: Board Discussion & Input
*Timeline subject to change
Present to Exec
Committee as
information item
29 Aug. 2025
Present to BOD as
informational item
Sep. 2025
Community input:
Values and priorities
Jan.–Feb. 2026
Board input:
strategies and
metrics
Apr. 2026
BOD Study Sessions:
Values and priorities
Dec. 2025
Draft of final
rec. for
adoption
Aug. 2026
Item 8
PRESENTATION
21 APPENDIX
Item 8
PRESENTATION
22 This Decarb Roadmap initiative is being driven by
SVCE’s 2024-25 Strategic Plan
SVCE 2024-25 Goals and Measures:
Goal 3: Long term decarb plan that integrates supply and demand changes, opportunities and challenges
Measure 1: Develop 3-5 potential fuel switching scenarios to inform decarbonization and portfolio planning.
Measure 2: Assess and prioritize SVCE specific actions to meet regional GHG reduction goals.
Measure 3: Develop an updated decarbonization roadmap that lays out pathways and recommendations to meet 2045 climate targets while maximizing community benefit.
Item 8
PRESENTATION