• Subtitle
New SV Clean Energy
PowerPoint Template
Diablo Canyon Extension –
Legislative Policy Platform
Bena Chang, Director of Government and Legislative Affairs February 27, 2026
Item 3
PRESENTATION
SILICON VALLEY <3/ CLEAN ENERGY
2 Action Requested
• Add support the Diablo Canyon Nuclear
Power Plant extension, subject to
affordability provisions, to 2026
Legislative Policy Platform.
Item 3
PRESENTATION
3 • Operations started: Unit 1 in 1985 and Unit 2 in 1986. • Retirement Plans: CPUC approval of Unit 1 in 2024 and Unit 2 in 2025.
• State Extension: SB 846 (Dodd, 2022) extended operations of Unit 1 to 2029 and Unit 2 to 2030.
• Nuclear Regulatory Commission Relicensing: to 2045.
• State Permitting: PG&E received permits from Coastal Commission and the Central Coast Regional Water Quality Control Board.
Diablo Canyon Nuclear Power Plant
History
Item 3
PRESENTATION
4 Benefits of Diablo
• Statewide Reliability and Clean Benefits: Provides annually 18,000 gigawatt hours of baseload energy
• 9% of state’s energy (3 million homes) and ~14% of GHG-free energy • Site Location: Access to transmission capacity
• Workforce: Approximately 1,200 staff, plus another 1,000 during refueling operations • SVCE Benefits:
• Resource Adequacy: Reduced obligations,
• Clean Energy: Allocation of ~5% of Diablo production or 20-25% of SVCE's energy needs, and
• Diversification: Reduced risk of portfolio concentration and new project development delays.
Item 3
PRESENTATION
5 Challenges with Diablo
• Site location: earthquakes
and tsunamis
• Spent nuclear fuel
Item 3
PRESENTATION
6 • Since 2020, SVCE Board has accepted carbon-free nuclear allocation. • SVCE saved $8.3 million from 2020-2024.
• Board has used this to fund projects including:
• EV chargers at multi-family properties,
• Portable batteries for medical baseline customers, and • Member Agency electrification and community engagement grants. • Extended Diablo operations projected to generate $2-12M in annual value to SVCE.
SVCE and Diablo
CPUC directed PG&E to allocate resource adequacy attributes from Diablo to CCAs, with an option to accept carbon-free attributes.
Item 3
PRESENTATION
7 Anticipate Legislation to extend Diablo
Staff recommendation to support extension subject to affordability provisions:
1) Reasonable Cost and Fair Cost/Benefit Allocations
2) Inclusion in Planning and Procurement Orders
3) Maximize Market Liquidity
Item 3
PRESENTATION
8 Action
• Recommend to SVCE Board to add supporting an extension of the Diablo Canyon Nuclear Power Plant to the 2026 Legislative Policy Platform, subject to the following affordability provisions:
• Reasonable cost and fair cost/benefit allocations
• Inclusion in planning and procurement orders
• Maximize market liquidity
Item 3
PRESENTATION
1 New SV Clean Energy
PowerPoint Template
• Subtitle
Changing the Fiscal Period to a
Calendar Year
Amrit Singh
Executive Committee
February 27, 2026
Item 4
PRESENTATION
CLEAN ENERGY
2 Main Areas of Discussion
Purpose
Action: Recommend that the Board
approve changing the fiscal period to a
calendar year, along with the proposed
transition plan and change to the
Budget Policy
1) Current budgeting and planning
timeline and process
2)Revised timeline and process
under a calendar year fiscal period
3)Proposed transition plan
4) Proposed change to the budget
Policy
Item 4
PRESENTATION
3 Why Change the Fiscal Period?
More closely align adoption of Annual Budget with Customer Rate Changes Proposed Fiscal Period:
• Calendar Year, commencing January 1 and
ending December 31.
Benefits from the change:
• Avoids setting a budget in September and
then amending it 3 months later when there’s
more certainty on upcoming PG&E rates and
PCIA charges
• Aligns with the timeline for many external
compliance requirements and internal
planning processes
Background:
• JPA allows the Board to change the fiscal year
by resolution
• Changed once before in September 2016
• From the period July 1 - June 30 to the
current period, October 1 - September 30
• Changed to facilitate compliance with loan
covenants during SVCE’s startup, which are
no longer relevant.
Item 4
PRESENTATION
4 Current Budgeting and Planning Process and Timeline
January, February, and March
• Enterprise Risk Assessments
• Stress Tests Proposals
• Mid-year budget review and adoption
• Completion of prior year’s financial audit
May and June
• Stress test analyses
• Reserve adequacy
• Next fiscal year’s budget framework review
• Strategic plan review (biennially)
August and September
• Annual budget and strategic plan review and
feedback, and adoption one month later
November and December
• Budget adjusted to reflect updates to:
• PCIA and PG&E generation rate
forecasts
• Customer Rate Proposals
Larger timeline slide shown in the appendix
Item 4
PRESENTATION
January February March May June
Staff: Finance and Admin Committee: Board: Finance and Admin Committee: Board:
Executive Committee:
Audit Committee: Reviews Strategic Plan
Auaust September November December
Finance and Admin Committee: Board: Finance and Admin Committee: Board:
Audit Committee:
Kicks off theAudit
Adopts the
Adjusted
Budget and
Next year’s
Customer Rate
Proposals
Reviews and provides feedback on the Proposed
Annual Budget for the Next Fiscal Year and the
Proposed Strategic Plan
ReceivesAudited Financials for the last
fiscal year. (FY24-25)
Adopts the Proposed Budget for
the Next Fiscal Year (FY26-27)
and the Strategic Plan
Reviews and recommends thatthe
Board adopt the ProposedAdjusted
Budget (reflecting updates to PCIA
and PG&E Gen Rate Forecasts) and
Customer Rate Proposals
Enterprise Risk
Assessments
(ERM)
Reviews Proposed FinancialStress Test
Scenarios
Reviews and Recommendsthe Mid-Year
Budget Update to the Board
Adopts Mid¬
Year Budget
(FY25-26)
Receives
Audited
Financials for
the last fiscal
year. (FY24-25)
1) Reviews Stress Test Analyses
2) Reviews Budget Framework for the
Next Fiscal Year (FY26-27)
Reviews Stresslest
Analyses
Optional: Reviews
Budget Framework fo
Next Fiscal Year
• Reviews and Recommendsthe BoardAdopt the
ProposedAnnual Budget for the Next Fiscal Year
(FY26-27)
Board:
Executive Committee
(Optional):
5 February or March
• High-level Budget and Reserves update to
the Finance and Administration Committee
March, May, and June
• Enterprise Risk Assessments
• Stress Tests Proposals
• Mid-year budget review and adoption
• Completion of prior year’s financial audit
August and September
• Stress test analyses
• Reserve adequacy
• Next fiscal year’s budget framework review
• Strategic plan review (Biennially)
November and December
• Annual budget, strategic plan, and customer
rate proposal review by Committee(s) and
adoption by the Board in December
Full timeline slide shown in the appendix
Key Change: The Board will not have the opportunity to
review and provide feedback on the proposed budget two
months prior to the end of the fiscal year.
Budgeting and Planning Process and Timeline
If the Fiscal Period is Changed to Calendar Year
Item 4
PRESENTATION
Late February or March March May June
Finance andAdmin Committee: Staff: Board:
Audit Committee:
September December
• High-level (“Mini”) Budget & Reserves
Update (Revenues and Power Supply
Updated)
Receives Audited Financials for the last
fiscal year.
Adopts Mid-Year
Budget
Receives Audited
Financials for the
last fiscal year.
Enterprise Risk
Assessments
(ERM)
1 Late November
Finance andAdmin Committee:
• Reviews Proposed FinancialStress Test Scenarios
• Reviews and Recommendsthe Mid-Year Budget
Update to the Board
Finance and Admin Committee:
• Reviews Stress Test Analyses
• Reviews Budget Framework for the
Next Fiscal Year
Executive Committee:
Board:
• Reviews Stress Test Analyses
• Optional: Reviews Budget
Framework for Next Fiscal Year
Finance andAdmin Committee
Executive Committee(Optional):
• Reviews and Recommendsthat the
BoardAdopt the ProposedAnnual Budget
and Customer Rate Proposals
Board:
• Adopts the Proposed
Budget, Strategic Plan, and
Next Year’s Customer Rate
Proposals
Audit Committee:
Reviews Strategic Plan Kicks off theAudit
6 Requires a Transition Period
Staff proposes to transition to a calendar fiscal period starting January 1, 2027
1. Need an interim 3-month transition fiscal
period, stub fiscal period, from October 2026 to
December 2026
2. Board sets the budget for the interim 3-month
fiscal period in September 2026
3. Board sets the budget for the new 12-month,
calendar-year fiscal period in December 2026
4. Board allows the auditor to perform a
combined, two-period audit covering:
• The 3-month stub period (October 2026 to
December 2026)
• The first full calendar year (1/1/27 to 12/31/2027) Full timeline slides are shown in the appendix Item 4
PRESENTATION
January 2026 February 2026 March 2026 May 2026 June 2026 Finance and Admin Committee: Board:
Audit Committee:
2026 September 2026 November 2026 December 2026
Receives AuditedFinancials for the last
fiscal year. (FY24-25)
Reviews Stresslest
Analyses
Optional: Reviews
Budget Framework foi
Next Fiscal Year
• Reviews Proposed FinancialStresslest
Scenarios
• Reviews and Recommends the Mid-Year
Budget Update to the Board Executive Committee:
Reviews Strategic Plan
Finance and Admin Committee:
1) Reviews Stress lest Analyses
2) Reviews Budget Framework for the
Next Fiscal Year (FY26-27)
Staff:
• Enterprise Risk
Assessments
(ERM)
Board:
• Adopts Mid¬
Year Budget
(FY25-26)
• Receives
Audited
Financials for
the last fiscal
year. (FY24-25)
Finance and Admin Committee:
• Reviews and recommends that the Board adopt the
Proposed Budget for October 2026 to December
2026, a 3-month stub fiscal period budget
Board:
• Adopts the Proposed 3-month
Stub Period Budget
Audit Committee:
• Kicks off theAudit for Fiscal
Year 25-26
Finance and Admin Committee:
Executive Committee
(Optional):
• Reviews and recommends that the
Board adopt the Proposed Budget
for Calendar Fiscal Year 2027 and
Customer Rate Proposals
Board:
• Adopts the
Proposed Budget
for Calendar
Fiscal Year 2027
Strategic Plan, and
2027 Customer
Rate Proposals
February 2027
Audit Committee:
ReceivesAudited Financials for the fiscal
year ending September 30, 2026 (October
2025 to September 2026)
December 2027
Audit Committee:
Audit kick-off for the fiscal year ending
December 31, 2027 (January 2027 to
December 2027) and Stub Period
(October 2026 to December 2026)
7 Requires Changes to Budget Policy
Remove the requirement to provide a budget overview two months prior to the end of the fiscal year, as staff will not have the updated PCIA and PG&E generation rata information in time to prepare the budget.
Item 4
PRESENTATION
III. Policy
A. Budget Adoption
*
The CEO, in concurrence with the Finance and Administration Committee, shall prepare aa budget and budget overview for the Board for the following fiscal year two months prior to the end of the fiscal year. The proposed budget shall be balanced and in alignment with the 8 Recommendation
Recommend that the Board of Directors approve:
1. Changing SVCE’s fiscal period to a Calendar Year (January 1 to December 31), beginning January 1, 2027
2. Establishing an interim 3-month stub fiscal period, starting October 1, 2026, and ending December 31, 2026, and adopting a schedule to approve the stub period budget at the September 2026 Board meeting
3. Authorizing a combined two-period audit covering the 3-month sub-period, along with the first audit of the new fiscal year
4. Amending the Budget, Adoption, Control and Reporting Policy to remove the requirement to provide a budget overview two months prior to the end of a fiscal year.
Item 4
PRESENTATION
9 Thank you! / Questions?
Item 4
PRESENTATION
10 SVCE’s Budgeting & Planning Process
SVCE Mission: Reduce dependence on fossil fuels by
providing carbon-free, affordable, and reliable electricity and innovative programs for the SVCE community.
Comprehensive assessment of risks and
opportunities to optimally achieve mission
Organization-wide priorities and
alignment toward achieving the mission
Funding in alignment with achieving
the strategic focus areas
Budget
Strategic Focus
Areas
Enterprise Risk
Management
Item 4
PRESENTATION
11 Current Budgeting and Planning Process and Timeline
December
Board:
• Adopts the
Adjusted
Budget and
Next year’s
Customer Rate
Proposals
Board:
• Reviews Stress Test
Analyses
• Optional: Reviews
Budget Framework for
Next Fiscal Year
Board:
• Adopts the Proposed Budget for
the Next Fiscal Year (FY26-27)
and the Strategic Plan
Finance and Admin Committee:
Executive Committee
(Optional):
• Reviews and recommends that the
Board adopt the Proposed Adjusted
Budget (reflecting updates to PCIA
and PG&E Gen Rate Forecasts) and
Customer Rate Proposals
Board:
• Adopts Mid-Year Budget
(FY25-26)
• Receives
Audited
Financials for
the last fiscal
year. (FY24-25)
January February
Staff:
• Enterprise Risk
Assessments
(ERM)
Finance and Admin Committee:
• Reviews Proposed Financial Stress Test
Scenarios
• Reviews and Recommends the Mid-Year
Budget Update to the Board
May
Finance and Admin Committee:
• Reviews and Recommends the Board Adopt the
Proposed Annual Budget for the Next Fiscal Year
(FY26-27)
Finance and Admin Committee:
1) Reviews Stress Test Analyses
2) Reviews Budget Framework for the
Next Fiscal Year (FY26-27)
June
September
Executive Committee:
Reviews Strategic Plan
August November
Audit Committee:
• Receives Audited Financials for the last
fiscal year. (FY24-25)
March
Audit Committee:
• Kicks off the Audit
Board:
• Reviews and provides feedback on the Proposed
Annual Budget for the Next Fiscal Year and the
Proposed Strategic Plan
Item 4
PRESENTATION
12 Budgeting and Planning Process and Timeline
If Fiscal Period Changed to Calendar Year
Board:
• Reviews the Proposed Strategic Plan
Board:
• Adopts the Proposed
Budget, Strategic Plan, and
Next Year’s Customer Rate
Proposals
August December
March
Board:
• Adopts Mid-Year
Budget
• Receives Audited
Financials for the
last fiscal year.
Board:
• Reviews Stress Test Analyses
• Optional: Reviews Budget
Framework for Next Fiscal Year
Finance and Admin Committee
Executive Committee (Optional):
• Reviews and Recommends that the
Board Adopt the Proposed Annual Budget
and Customer Rate Proposals
Staff:
Enterprise Risk
Assessments
(ERM)
Late February or March
Finance and Admin Committee:
• High-level (“Mini”) Budget & Reserves
Update (Revenues and Power Supply
Updated)
May
Finance and Admin Committee:
• Reviews Stress Test Analyses
• Reviews Budget Framework for the
Next Fiscal Year
Finance and Admin Committee:
• Reviews Proposed Financial Stress Test Scenarios
• Reviews and Recommends the Mid-Year Budget
Update to the Board
June
September Late November
Audit Committee:
• Receives Audited Financials for the last
fiscal year.
Audit Committee:
• Kicks off the Audit
Executive Committee:
• Reviews Strategic Plan
Item 4
PRESENTATION
13 Transition Timeline and Plan
New Fiscal Period Starts January 1, 2027
December 2026
Board:
• Adopts the
Proposed Budget
for Calendar
Fiscal Year 2027,
Strategic Plan, and
2027 Customer
Rate Proposals
Board:
• Reviews Stress Test
Analyses
• Optional: Reviews
Budget Framework for
Next Fiscal Year
Board:
• Adopts the Proposed 3-month
Stub Period Budget
Finance and Admin
Committee:
Executive Committee
(Optional):
• Reviews and recommends that the
Board adopt the Proposed Budget
for Calendar Fiscal Year 2027 and
Customer Rate Proposals
Board:
• Adopts Mid-Year Budget
(FY25-26)
• Receives
Audited
Financials for
the last fiscal
year. (FY24-25)
January 2026 February 2026
Staff:
• Enterprise Risk
Assessments
(ERM)
Finance and Admin Committee:
• Reviews Proposed Financial Stress Test
Scenarios
• Reviews and Recommends the Mid-Year
Budget Update to the Board
May 2026
Finance and Admin Committee:
• Reviews and recommends that the Board adopt the
Proposed Budget for October 2026 to December
2026, a 3-month stub fiscal period budget.
Finance and Admin Committee:
1) Reviews Stress Test Analyses
2) Reviews Budget Framework for the
Next Fiscal Year (FY26-27)
June 2026
September 2026
Executive Committee:
Reviews Strategic Plan
August 2026 November 2026
Audit Committee:
• Receives Audited Financials for the last
fiscal year. (FY24-25)
March 2026
Audit Committee:
• Kicks off the Audit for Fiscal
Year 25-26
Item 4
PRESENTATION
14 Transition Timeline and Plan - Continued
New Fiscal Period Starts January 1, 2027
February 2027 December 2027
Audit Committee:
Receives Audited Financials for the fiscal
year ending September 30, 2026 (October
2025 to September 2026)
Audit Committee:
Audit kick-off for the fiscal year ending
December 31, 2027 (January 2027 to
December 2027) and Stub Period
(October 2026 to December 2026)
• Starting in 2028, the
February Audit
Committee will move
to May
• September Audit
Committee moves to
December
~August 2027*
Audit Committee:
Selects a new auditor
* An additional Audit Committee meeting in 2027 to select a new auditor is not because of the change to a new fiscal period.
SVCE’s policies require selecting a new auditor every 5 years. The proposed period is tentative; the new auditor needs to be selected before December 2027, the kick-off of the new audit.
Item 4
PRESENTATION
• Subtitle
New SV Clean Energy
PowerPoint Template
Financial Levers Update:
Scenario Modeling and Reflecting
Feedback
Justin Zagunis and Monica Padilla
Executive Committee
February 2026
Item 5
PRESENTATION
SILICON
CLEAN
Today we are seeking additional feedback
on scenario design and key datapoints
Exec Committee
Oct 2025
Board
(introduction to
concepts)
Dec 2025
Exec Committee
Finance & Admin
Board
(specific modeled
scenario)
Feb/Mar 2026
Exec Committee
Finance & Admin
Board
(final decisions on
preferred approach)
May/Jun 2026
Board Study Session
(initial feedback on
values and priorities)
Dec 2025 (Fri)
Board (if
needed,
incorporate in
budget)
Sep 2026+
*Timeline subject to change
Item 5
PRESENTATION
"X
3 • Recap from December
• Review key numbers
• Example scenario and
questions
• Next steps
• Discussion
Agenda
Today, staff is seeking
input on:
• have we captured the board’s
feedback?
• board’s thoughts on the
scenario and framing/questions
• additional info/data desired for
next discussion
Item 5
PRESENTATION
0 100
200
300
400
500
600
FY2026 FY2027 FY2028 FY2029 FY2030
DCOH Forecast (incl. unspent programs $)
RECAP: forecast shows reserves drawdown, with DCOH
estimate dropping further since December
4 Base case
~530 days
cash on hand
~140 days
cash on hand
Min reserves
Target reserves
Max reserves
Item 5
PRESENTATION
0 100
200
300
400
500
600
FY2026 FY2027 FY2028 FY2029 FY2030
DCOH Forecast (chart shows individual impact of each lever) RECAP: there are many options (levers) to reduce the pull from reserves
5 Base case
Load at minimum
compliance
Stop program
activities
8% premium to PG&E
starting CY2027
~530 days
cash on hand
Item 5
PRESENTATION
6 Recap: SVCE Value Proposition
MISSION: reduce dependence
on fossil fuels by providing
carbon free, affordable and
reliable electricity and innovative
programs for the SVCE
community.
Customer-Facing
Value Proposition
Item 5
PRESENTATION
COMMUNITY
REINVESTMENT
LOCAL CONTROL
& PRESENCE
CLEAN POWER
& THE GRID
COMPETITIVE
RATES
ACCELERATING
ELECTRIC
UPGRADES
7 • A balanced approach is a good one
• Support customer choice and simplicity
• SVCE’s mission is focused on emissions
• Strongly interested in remaining cheaper than PG&E
• Community investments drive most positive associations • New steel-in-ground is most impactful (power supply and decarb) • Want to be innovative but not at “bleeding edge”
RECAP: some top-level input from board, from
December
Item 5
PRESENTATION
Revisiting revenues and costs
PG&E Gen Rate,
10.7 ¢/kWh
For FY2027 through FY2030
Item 5
PRESENTATION
PG&E Gen Rate,
10.7 ¢/kWh
SVCE Gen Rate,
7.7 ¢/kWh
SVCE Discount,
0.1 ¢/kWh
PCIA,
2.9 ¢/kWh
Revisiting revenues and costs
9 For FY2027 through FY2030
Item 5
PRESENTATION
PG&E Gen Rate,
10.7 ¢/kWh
Revisiting revenues and costs
10 revenues
SVCE Gen Rate,
7.7 ¢/kWh
SVCE Discount,
0.1 ¢/kWh
PCIA,
2.9 ¢/kWh
For FY2027 through FY2030
Item 5
PRESENTATION
Revisiting revenues and costs
11 revenues costs
PG&E Gen Rate,
10.7 ¢/kWh
SVCE Gen Rate,
7.7 ¢/kWh
SVCE Discount,
0.1 ¢/kWh
PCIA,
2.9 ¢/kWh
For FY2027 through FY2030
Item 5
PRESENTATION
Revisiting revenues and costs
12 11 ¢/kWh total cost
revenues costs
PG&E Gen Rate,
10.7 ¢/kWh
SVCE Gen Rate,
7.7 ¢/kWh
SVCE Discount,
0.1 ¢/kWh
PCIA,
2.9 ¢/kWh
For FY2027 through FY2030
Base Supply Cost, 9.1 ¢/kWh
Operating Expenses, 1 ¢/kWh
Program Spend, 0.5 ¢/kWh
Voluntary Clean, 0.4 ¢/kWh
Item 5
PRESENTATION
Base Supply Cost, 9.1 ¢/kWh
Operating Expenses, 1 ¢/kWh
Program Spend, 0.5 ¢/kWh
Voluntary Clean, 0.4 ¢/kWh
PG&E Gen Rate,
10.7 ¢/kWh
Revisiting revenues and costs
13 11 ¢/kWh total cost
revenues costs
SVCE Gen Rate,
7.7 ¢/kWh
gap
3.3 ¢/kWh
For FY2027 through FY2030
Item 5
PRESENTATION
Base Supply Cost, 9.1 ¢/kWh
Operating Expenses, 1 ¢/kWh
Program Spend, 0.5 ¢/kWh
Voluntary Clean, 0.4 ¢/kWh
Draw
from
Reserves
Pre-pay Savings,
0.5 ¢/kWh
Other Income, 0.5 ¢/kWh
PG&E Gen Rate,
10.7 ¢/kWh
If forecast becomes business as usual, higher
rate may be a required lever (long-term)
14 11 ¢/kWh total cost
revenues costs
SVCE Gen Rate,
7.7 ¢/kWh
gap
2.3 ¢/kWh
For FY2027 through FY2030
Item 5
PRESENTATION
0 100
200
300
400
500
600
FY2026 FY2027 FY2028 FY2029 FY2030
Illustrative: Range of Uncertainty
Near-term actions can buy time (for clarity, changes to forecast) and prolong reserves
15 Base case
Uncertainty
in forecast
Discrete moments of new info
Things could
improve on their
own (or worsen)
Item 5
PRESENTATION
16 Near-term actions should keep us positioned
strongly now and for any possible future
Customer-Facing
Value Proposition
Item 5
PRESENTATION
COMMUNITY
REINVESTMENT
LOCAL CONTROL
& PRESENCE
CLEAN POWER
& THE GRID
COMPETITIVE
RATES
ACCELERATING
ELECTRIC
UPGRADES
17 All decisions impact the value proposition
Move to a less
clean product?
Drive fewer new
renewable projects
Customer-Facing
Value Proposition
Item 5
PRESENTATION
ACCELERATING
ELECTRIC
UPGRADES
18 All decisions impact the value proposition
Stop running
local decarb
programs?
Customers don’t see
local activity
Not supporting a more
rapid decarb transition
Customer-Facing
Value Proposition
Item 5
PRESENTATION
LOCAL CONTROL
& PRESENCE
CLEAN POWER
& THE GRID
COMPETITIVE
RATES
19 All decisions impact the value proposition
Raise rates
above PG&E?
Customer-Facing
Value Proposition
Depends on how high and
what “competitive” means to
different customers
Item 5
PRESENTATION
COMMUNITY
REINVESTMENT
LOCAL CONTROL
& PRESENCE
CLEAN POWER
& THE GRID
ACCELERATING
ELECTRIC
UPGRADES
20 Also have to think about long-term
implications
First stop
clean goals
and programs,
then end up
needing to
raise rates
anyway?
Erosion of most of value
proposition by the end
Customer-Facing
Value Proposition
Item 5
PRESENTATION
21 Building a scenario with something for
everyone
Ideal: find a
way to balance
across all (for
as long as
possible) Customer-Facing
Value Proposition
Item 5
PRESENTATION
COMMUNITY
REINVESTMENT
LOCAL CONTROL
& PRESENCE
CLEAN POWER
& THE GRID
COMPETITIVE
RATES
ACCELERATING
ELECTRIC
UPGRADES
22 What is it?
• Default clean product a 4% premium
• Create a new, minimum compliance
product that is 1% discount to PG&E
• Let customers opt down
• Reduce program spend 10%
• Start with CY2027
Example Scenario – Customer Choice
Impacts
Benefits
• Customer choice
• Maintain high enrollment
• Cheaper option for price-sensitive customers
• Keeps more DCOH in reserves
Drawbacks
• Some additional emissions
• Savings opportunity diminishes as RPS
requirements grow
• Opt-outs still possible
Item 5
PRESENTATION
0 100
200
300
400
500
600
FY2026 FY2027 FY2028 FY2029 FY2030
DCOH Model
23 Example Scenario – Customer Clean Choice
How would it work?
• Sell existing clean energy resources
to bring clean position closer to
compliance
• Market to customers to help them
understand their options
• Pursue custom deals with large
loads to neutralize risk and meet
customer needs
• Deprioritize some decarb programs
per new roadmap
• Emphasize lifetime bill savings,
clean energy impact, and local
program investments
Base case
Scenario
+75 DCOH
to end at
215 DCOH
Buys ~1 yr to
hit 250 DCOH
Item 5
PRESENTATION
24 ✓A balanced approach is a good one
✓Support customer choice and simplicity
✓SVCE’s mission is focused on emissions
✓Strongly interested in remaining cheaper than PG&E
✓Community investments drive most positive associations ✓New steel-in-ground is most impactful (power supply and decarb) ✓Want to be innovative but not at “bleeding edge”
Does not fully close the gap, but could be a first step Scenario aligns with Board’s input
Item 5
PRESENTATION
Today we are seeking additional feedback
on scenario design and key datapoints
Exec Committee
Oct 2025
Board
(introduction to
concepts)
Dec 2025
Exec Committee
Finance & Admin
Board
(specific modeled
scenario)
Feb/Mar 2026
Exec Committee
Finance & Admin
Board
(final decisions on
preferred approach)
May/Jun 2026
Board Study Session
(initial feedback on
values and priorities)
Dec 2025 (Fri)
Board (if
needed,
incorporate in
budget)
Sep 2026+
*Timeline subject to change
Item 5
PRESENTATION
"X
26 • Corrections or additional feedback from December?
• Questions about key numbers?
• Reactions to modeled scenario?
• Additional info/data you would want to see?
Discussion
Next steps:
• Explore leg + reg adjustments
• Review appropriate reserves levels
• Keep pursuing operational savings
• Bring a proposal scenario and
alternatives back to weigh tradeoffs
Item 5
PRESENTATION