Agenda packet — Silicon Valley Clean Energy Board of Directors, March 11, 2026 (part 2 of 2)

Staff Report – Item 1i
Item 1i: Adopt Resolution Modifying the Electric Schedule NEM-SVCE to Clarify Net Billing Tariff (NBT, NEM 3.0) Language to Ensure No Customer Collections at True Up From: Monica Padilla, CEO
Prepared by: Peyton Parks, Energy Services Manager
Date: 3/11/2026

RECOMMENDATION
Staff requests the Silicon Valley Clean Energy (SVCE) Board of Directors (Board) adopt Resolution 2026-06 (Attachment 1) to amend SVCE’s Net Energy Metering (NEM) Electric Schedule NEM-SVCE (Attachment 2) to explicitly state that SVCE will not collect funds from a Net Billing Tariff customer at true-up due to claw-backs resulting in negative totals.

BACKGROUND
At its November 8th, 2023 meeting, the SVCE Board of Directors voted to approve the SVCE Net Billing Tariff (NBT) without modification in order to mirror the Pacific Gas and Electric Company (PG&E) version of the program. NBT diverges from previous versions of solar NEM in the underlying mechanics and calculations for determining the value of excess solar energy exported to the grid. While the previous versions of Net Metering, NEM and NEM 2.0, were predominantly retail rate-based, NBT operates on the Energy Export Credit (EEC) value at a varying rate much closer to the wholesale price of energy.

Net Billing Tariff is also differentiated from the legacy versions of NEM in the mechanics and valuation of its end-of-year true-up. Prior versions of NEM provided both monthly compensation for exports based on retail pricing and an annual true-up compensation for net exported physical energy based on the PG&E Net Surplus Compensation (NSC) Rate, which is derived from wholesale power pricing.

Meanwhile, NBT customers who, by the end of an annual solar period (May – April), have exported more kWh to the grid than they have consumed are entitled to payment for that physical energy in the form of Net Surplus Compensation. However, the value of that energy is netted against the value of their monthly exports already realized as on-bill savings throughout the course of the year due to offsetting their monthly energy charges. This mechanism is referred to as a ‘claw-back’.

The intention of the claw-back is to prevent solar customers under NBT from receiving double compensation; specifically to avoid a customer exporting energy during the year and getting value from the exported energy each month, but then at the end of the year getting paid again at the NSC rate for some of that same energy.

In this way, the claw-back plays an important role in recognizing the value already delivered to customers for the energy they produce.

In 2025, power market conditions led to the steady decline of the NSC while the EEC-based claw-back rate continued to rise, creating a scenario where a subset of customers could incur negative values at true-up depending on how much energy they exported, when it was exported, and the overall movement of NSC Item 1i
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1i Agenda Date: 3/11/2026

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values in relation to EEC claw-back rates. This was an unintended consequence of the program’s mechanics, and as such, it differed from how the SVCE Board discussed the implementation of NBT and NSC back in 2023.

In keeping with the Board’s intent, staff waived the true-up cost.

ANALYSIS & DISCUSSION
Staff’s understanding of the PG&E rules governing NBT and the NSC back in 2023 were that this mechanism would be used to reduce the NSC payment as appropriate but not result in a charge. The language put in place for this tariff at SVCE and when discussed with the Board was under this intent. However, changes in energy markets and the timing of how the NSC and EEC are calculated have led to circumstances where it is possible for an NBT claw-back to result in negative values at true-up - triggering a charge that a customer would need to pay as a net exporter of energy for the year. Staff recognizes that incurring a charge at true-up leads to customer confusion and a negative customer experience.

The potential for negative values at a customer’s true-up is due to the possibility of an imbalance between the NSC rate and the amount that is determined as a claw-back rate, based on the EEC. At the time of the NBT program’s inception, the PG&E program administrators believed that the NSC, which, at the time was higher than their projected claw-back amounts, would always be larger than the claw-back rate. As such, customers would be able to forfeit some amount of their NSC credits but retain a positive balance on their true-up statement.

Staff has taken the Board’s direction to follow PG&E into NBT for new solar customers as seeking fairness and greater equity in the incentives given to solar customers versus those without solar. Accordingly, staff recommends that the claw-back mechanism remain in place in order to avoid double-compensation to NBT solar customers. However, due to the opacity of the calculations, negative customer experience, and the fact that negative charges were not a discussed feature of the NBT and NSC interplay but rather a consequence of unexpected market conditions, staff recommends that the Board amend SVCE’s Electric Schedule NEM-SVCE such that it specifies that customer charges at true-up will be waived. The table below illustrates the impact on the clawback value with and without the change to this schedule.

STRATEGIC PLAN
This recommendation is provided in alignment with Strategic Plan, Goal 7: ‘Support all SVCE communities to decarbonize through local investments that reduce barriers and demonstrate sensible, scalable, and equitable solutions’ and Goal 8: ‘Engage customers and community stakeholders to build trust of SVCE and advance decarbonization’.

ALTERNATIVE
Staff has considered three alternatives to the recommendation of explicitly clarifying that SVCE will continue the claw-back but will not collect funds from a customer at true-up due to claw-backs resulting in negative totals.

Item 1i
Current Clawback Policy Proposed Clawback Policy
Net Exports Rate** Value Net Exports Rate** Value
Net Surplus
Compensation 1,000 x $0.05 $50.00 1,000 x $0.05 = $50.00 Claw-back 1,000 x -$0.08 -$80.00 1,000 x -$0.08 = -$80.00 Total -$30.00 $0.00
“NSC and Clawback rates are illustrative for example purposes Agenda Item: 1i Agenda Date: 3/11/2026

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1) The Board could choose not to amend the Electric Schedule NEM-SVCE and continue to mirror PG&E’s version of the program without modification. This choice creates ambiguity as to whether true-up totals are to be collected as charges during the solar cash-out in April/May 2026 and beyond. 2) The Board could choose to amend the Electric Schedule NEM-SVCE in a way that makes it explicit that negative NEM totals are intended to be collected as charges. This would require the collection of negative true-up charges in April 2026 and beyond.
3) The Board could choose to remove the claw-back mechanism in its entirety. The decision involves trade-offs that would amount to a major modification to NBT and may require additional analysis and discussion.

FISCAL IMPACT
Due to the nature of the calculation, SVCE staff and its customers will not know the extent of customer impact until the conclusion of the April 2026 billing cycle (and all future billing cycles). However, the impacts are not expected to exceed $20,000 in true-up fees. Adoption of the changes to the Electric Schedule NEM-SVCE to waive the true-up for customers facing similar conditions as seen in 2025 will not have a material impact on the fiscal year 2025-2026 Board-approved budget.

ATTACHMENT

1. Resolution 2026-06, Updates to the Electric Schedule NEM-SVCE

2. Redline Electric Schedule NEM-SVCE 2026
Item 1i
1 RESOLUTION 2026-06

SILICON VALLEY CLEAN ENERGY AUTHORITY
RESOLUTION NO. 2026-06

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SILICON

VALLEY CLEAN ENERGY AUTHORITY UPDATING THE ELECTRIC

SCHEDULE NEM-SVCE
WHEREAS, the Silicon Valley Clean Energy Authority (“Authority”) was formed on March 31, 2016 pursuant to a Joint Powers Agreement to study, promote, develop, conduct, operate, and manage energy programs in Santa Clara County; and WHEREAS, at the January 11, 2017 Board of Directors Meeting, the Board adopted Electric Schedule NEM-SVCE, establishing Authority’s net energy metering (NEM) rate schedule and associated retail rates of surplus compensation; and WHEREAS, at the August 11, 2021 and February 12, 2025 Board of Directors Meetings, the Board adopted amendments to Electric Schedule NEM-SVCE; and WHEREAS, at the November 8, 2023 Board of Directors Meeting, the Board adopted the Net Billing Tariff (NBT) for new solar customers following Pacific Gas and Electric Company’s implementation; and
WHEREAS, NBT customers receive monthly value for the exports from their solar photovoltaic systems on their monthly energy bill based on the Energy Export Credit; and
WHEREAS, NBT customers are also entitled to the end-of-year true-up payment for excess energy exported across the whole year based on the Net Surplus Compensation; and
WHEREAS, NBT customers have the value of monthly compensation removed from this end-of-year true-up payment to prevent double compensation (“claw-back”), which Authority supports as part of an effort to align Authority’s NEM payments with the grid value of energy and fairly compensate customers for NEM surplus energy; and WHEREAS, it was always the intent of the Authority to prevent double compensation but not for the claw-back to result in a charge to a NBT customer at the time of their end-of-year true-up.

NOW THEREFORE, the Board of Directors of the Silicon Valley Clean Energy Authority does hereby resolve, determine, and order as follows:

Section 1. Update Authority’s Annual Cash-Out terms for NBT customers as described in Exhibit A, Electric Schedule NEM-SVCE, to clarify that Item 1i
Attachment 1
2 RESOLUTION 2026-06
Authority’s approach to applying the claw-back process will not result in a net charge to NBT customers at the time of the cash-out.

PASSED AND ADOPTED this 11th day of March 2026, by the following vote:

JURISDICTION NAME AYE NO ABSTAIN ABSENT
City of Campbell Director Scozzola
City of Cupertino Director Wang
City of Gilroy Director Hilton
City of Los Altos Director Meadows
Town of Los Altos Hills Director Tyson
Town of Los Gatos Director Rennie
City of Milpitas Director Barbadillo
City of Monte Sereno Director Mekechuk
City of Morgan Hill Director Martinez Beltran
City of Mountain View Director Showalter
County of Santa Clara Director Lee
City of Saratoga Director Page
City of Sunnyvale Director Klein

Chair
ATTEST:

Andrea Pizano, Board Secretary

ELECTRIC SCHEDULE NEM-SVCE

NET ENERGY METERING
Updated February 12, 2025
APPLICABILITY:

This Net Energy Metering Schedule (NEM-SVCE) is applicable to enrolled Silicon Valley Clean Energy (SVCE) customers who use an eligible Renewable Electrical Generation Facility (REGF), as defined in the applicable PG&E Electric Schedule NEM, NEM2, or Net Billing Tariff (NBT) that is located on the customer’s owned, leased, or rented premises, is interconnected and operates in parallel with PG&E’s transmission and distribution systems, and is intended primarily to offset part or all of the customer’s own electrical requirements (hereinafter “eligible customer-generator” or “customer”).

This NEM-SVCE rate schedule is available to customers that satisfy all necessary application, interconnection and inspection requirements as described in the applicable PG&E Electric Schedule NEM, NEM2, or NBT, and that take service under an associated PG&E NEM or NBT tariff schedule. This NEM-SVCE schedule also applies to customers served under NEMV (Virtual Net Energy Metering), NEMVMASH (Virtual Net Energy Metering for Multifamily Affordable Housing), NEMA (NEM Aggregation) and Multiple Tariff facilities as described by PG&E Electric Schedules NEM, NEM2, and NBT. For more information on PG&E’s NEM and NBT tariffs, visit https://bit.ly/understanding-pge-net-metering
PG&E NEM and NBT Tariff Terms and Conditions apply. SVCE NEM and NBT customers are also subject to the terms, conditions, and billing procedures of PG&E for services other than electric generation.

TERRITORY: The entire Silicon Valley Clean Energy (SVCE) service area.

RATES: All rates charged under this NEM-SVCE schedule will be in accordance with the eligible customer-generator’s otherwise-applicable SVCE rate schedule (OAS). An eligible customer-generator served under this schedule is responsible for all charges from its OAS including monthly minimum charges, customer charges, meter charges, facilities charges, demand charges and surcharges, and all other charges owed to SVCE or PG&E – any applicable PG&E charges will be addressed in a corresponding PG&E tariff. Charges for energy (kWh) supplied by SVCE, will be based on the net metered usage in accordance with this NEM-SVCE schedule.

BILLING: Customers with NEM or NBT service will be billed by SVCE as follows:

Item 1i
Attachment 1
Exhibit A

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The cost/(credit) associated with any net usage/(production) during the customer’s normal billing cycle shall be determined as follows:

If the eligible customer-generator is a “Net Consumer,” as determined by usage exceeding production during a discrete billing cycle, the eligible customer-generator will be billed in accordance with the eligible customer-generator’s OAS.

If the eligible customer-generator is a “Net Generator,” as determined by production exceeding usage during a discrete billing cycle, the net energy production shall be valued in accordance with the eligible customer-generator’s OAS. The value of all net energy production during the billing cycle shall be credited to SVCE customers as described in Section (c).

If the eligible customer-generator has upgraded to GreenPrime, SVCE’s premium 100% renewable electric generation service, net energy consumption will be billed at the applicable GreenPrime rate, and net energy production will be valued at the applicable GreenPrime rate. b) For a customer with TOU Rates:

If the eligible customer-generator is a Net Consumer (as defined above) during any discrete TOU period, the net kWh consumed during such period shall be billed in accordance with the eligible customer-generator’s OAS.

If the eligible customer-generator is a Net Generator (as defined above) during any discrete TOU period, net energy production during each TOU period shall be valued in consideration of the eligible customer-generator’s OAS, applying OAS rates to the quantity of energy produced within each TOU period. The value of all net energy production during the billing cycle shall be credited to SVCE customers as described in Section (c).

NEM and NBT customers will receive a statement in their monthly PG&E bills indicating any accrued charges for their usage during the billing cycle. Customers who have accrued net production credit during previous billing cycles will see this credit applied against current generation charges. Any remaining balance will be due and must be paid in consideration of the due date and remittance advice reflected on each PG&E bill.

Item 1i
Attachment 1

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Each April, all current SVCE NEM customers with a production credit balance greater than $0 will be compensated for the full value of the accrued credit balance, up to a maximum of $5,000. The production credit balance will be determined as of the final date of the customer’s March-April billing cycle. Credit balances in excess of $5,000 are forfeited.

For NEM production credit balances of $100 or greater, this payment will be made by check issued from SVCE to the customer. For NEM credit balances of less than $100, the amount will be applied as a credit on the customer’s electricity bill. Customers receiving payment under the SVCE Cash-Out process will have their production credit balance reset to zero as of the start of their April-May billing cycle.

Customers who close their electric account through PG&E or move outside of the SVCE service area prior to the April billing cycle of each year are also eligible for the SVCE Annual Cash-Out process. Payments will be made by check issued from SVCE to the customer. e) SVCE Annual Cash-Out – effective after end-date of customer’s March-April 2022 billing cycle and through customer’s March-April 2025 billing cycle During April of each year, current SVCE NEM and NBT customers with a positive production credit balance (e.g. greater than $0) will be compensated for net surplus kWh produced over the course of the preceding twelve months at two times the applicable annual net surplus compensation rate (NSC Rate), and SVCE NEM and NBT customers enrolled in the income-qualified CARE or FERA programs will be compensated at two and one half times the applicable annual NSC Rate. The production credit balance will be determined as of the final date of the customer’s March-April billing cycle. For all SVCE NEM and NBT customers, annual net surplus compensation is capped at $5,000, and any amount in excess of $5,000 is forfeited.

The applicable annual NSC Rate is defined as the simple rolling average of PG&E’s default load aggregation point (DLAP) price from 7a.m. to 5 p.m., for a 12-month period, beginning in April of the preceding year through March of the current year. The annual NSC Rate is typically in the range of 2.5 to 3 cents/kWh and will vary year to year based on energy market prices. SVCE shall use this annual NSC Rate as the basis for calculating applicable annual Cash-Out net Item 1i
Attachment 1

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For non-CARE/FERA NEM and NBT customers, net surplus compensation is calculated by multiplying any net surplus electricity (kWh) by the annual NSC Rate x 2, and for CARE/FERA NEM and NBT customers, by multiplying any net surplus electricity (kWh) by the annual NSC Rate x 2.5. NBT customers are subject to additional conditions for compensation as described by the PG&E Electric Schedule NBT. For annual net surplus compensation amounts of $100 or more, payment will be made by check issued from SVCE to the customer. For annual net surplus compensation amounts of less than $100, compensation will be applied as a credit to the customer’s bill. For all customers receiving annual net surplus compensation, their solar production retail credit balance will be re-set to zero as of the beginning of their April-May billing cycle.

Customers who close their electric account through PG&E or move outside of the SVCE service area prior to the March-April billing cycle of each year are eligible for net surplus compensation under the annual SVCE Annual Cash-Out process. For any SVCE NEM or NBT customer that moves service or otherwise closes their account, net surplus compensation is capped at $5,000 and any amount in excess of $5,000 is forfeited. Net surplus compensation, if any, will be paid by check issued from SVCE to the customer.
f) SVCE Annual Cash-Out – effective beginning on/after end date of customer’s March-April 2026 billing cycle
During April of each year, current SVCE NEM and NBT customers with a positive production credit balance (e.g. greater than $0) will be compensated for net surplus kWh produced over the course of the preceding twelve months at the applicable annual net surplus compensation rate (NSC Rate), and SVCE NEM and NBT customers enrolled in the income-qualified CARE or FERA programs will be compensated at two and one-half times the applicable annual NSC Rate.

The production credit balance will be determined as of the final date of the customer’s March-April billing cycle. For all SVCE NEM and NBT customers, annual net surplus compensation is capped at $5,000, and any amount in excess of $5,000 is forfeited.

The applicable annual NSC Rate is defined as the simple rolling average of PG&E’s default load aggregation point (DLAP) price from 7 a.m. to 5 p.m., for a 12-month period, beginning in April of the preceding year through March of the current year. The annual NSC Rate is typically in the range of 2.5 to 3 cents/kWh and will vary year-to-year based on energy market prices. SVCE shall use this annual NSC Rate as the basis for calculating applicable annual Cash-Out net surplus compensation payments, and any other applicable NSC payments, such as for account close-outs prior to the next annual Cash-Out in April.

Item 1i
Attachment 1

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2.5. NBT customers are subject to additional conditions for compensation as described by the PG&E Electric Schedule NBT. For NBT annual cash-outs that result in a negative total due to Export Credit Reversal (Claw-back), SVCE will reverse NSC payments up to the total value of NSC and will waive remaining charges.

For annual net surplus compensation amounts of $100 or more, payment will be made by check issued from SVCE to the customer. For annual net surplus compensation amounts of less than $100, compensation will be applied as a credit to the customer’s bill. For all customers receiving annual net surplus compensation, their production credit balance will be re-set to zero as of the beginning of their April-May billing cycle.

SVCE customers with NEM or NBT service may opt out and return to PG&E bundled service at any time. Customers should be advised that PG&E will perform a true-up of their account at the time such customers return to PG&E bundled service. As described in PG&E Electric Rule 23, certain SVCE customers returning to PG&E service may receive Transitional Bundled Service (TBS) for a limited period of time; TBS will expose such customers to various market price risks – please review PG&E’s applicable electric rules and tariffs for additional information.

If a SVCE NEM or NBT customer opts-out of the SVCE program and returns to bundled service, that customer may request the direct payment option, described above in Section (d), for any generation credits that remain on the account, provided that such request is received by SVCE within 90 calendar days of the customer’s return to PG&E service. h) PG&E NEM and NBT Services:

SVCE NEM and NBT customers are subject to PG&E’s terms, conditions and billing procedures for any non-generation services, as described in PG&E’s Electric Schedule NEM or NBT and Item 1i
Attachment 1

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Customers are encouraged to review PG&E’s most up-to-date NEM and NBT tariffs, which are available on PG&E’s website: https://bit.ly/understanding-pge-net-metering Item 1i
Attachment 1

SILICON VALLEY

ELECTRIC SCHEDULE NEM-SVCE

NET ENERGY METERING
Updated February 12, 2025
APPLICABILITY:

TERRITORY: The entire Silicon Valley Clean Energy (SVCE) service area.

BILLING: Customers with NEM or NBT service will be billed by SVCE as follows:

Item 1i
Attachment 2

SILICON VALLEY

The cost/(credit) associated with any net usage/(production) during the customer’s normal billing cycle shall be determined as follows:

Item 1i
Attachment 2

SILICON VALLEY

The applicable annual NSC Rate is defined as the simple rolling average of PG&E’s default load aggregation point (DLAP) price from 7 a.m. to 5 p.m., for a 12-month period, beginning in April of the preceding year through March of the current year. The annual NSC Rate is typically in the range of 2.5 to 3 cents/kWh and will vary year-to-year based on energy market prices. SVCE shall use this annual NSC Rate as the basis for calculating applicable annual Cash-Out net surplus compensation payments, and any other applicable NSC payments, such as for account close-outs prior to the next annual Cash-Out in April.

Item 1i
Attachment 2

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Customers are encouraged to review PG&E’s most up-to-date NEM and NBT tariffs, which are available on PG&E’s website: https://bit.ly/understanding-pge-net-metering Item 1i
Attachment 2

SILICON VALLEY

CLEAN ENERGY

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Staff Report – Item 1j
Item 1j: Adopt Resolution Authorizing the Replacement of The Trustee for Certain California Community Choice Financing Authority Clean Energy Project Revenue Bonds; and Certain Other Actions in Connection Therewith
From: Monica Padilla, CEO
Prepared by: Amrit Singh, CFO and Director of Administrative Services Zakary Liske, Deputy Director of Power Resources
Date: 3/11/2026

RECOMMENDATION
Staff recommends that the Board of Directors (“Board” or “BOD”) adopt Resolution 2026-07 authorizing the replacement of the Trustee for certain California Community Choice Financing Authority (“CCCFA”) Clean Energy Project Revenue Bonds; and certain other actions in connection therewith.

BACKGROUND
SVCE is the project participant for several CCCFA Clean Energy Project Revenue Bonds. Those include Series 2021B, 2023B, 2024A and 2025F. These bonds are commonly referred to as energy prepayment transactions.

Part of the transaction structure includes a Trustee to carry out ongoing operational functions of the bond issuances including monthly cash flows related to the power supply contracts and debt service payments. In each of SVCE’s four prepay transactions, the Trustee has been The Bank of New York Mellon Trust Company, N.A. (“BNYM”).

ANALYSIS & DISCUSSION
SVCE has worked with BNYM as Trustee for the first four transactions; however, staff finds it prudent to replace BNYM with U.S. Bank Trust Company, National Association (“U.S. Bank”).

U.S. Bank currently serves as Trustee the large majority of CCCFA’s transactions except those in which SVCE or Ava Community Energy (“Ava”) are project participants.

After internal analysis and concurrence with Ava staff, SVCE staff recommend U.S. Bank serve as Trustee moving forward given their extensive experience with CCCFA prepayment transactions.

The process to change the Trustee will require working with a group of parties previously involved in the prior deal structuring and execution. The work involved includes executing an agreement for U.S. Bank to take over the Trustee role along with a handful of amended ancillary agreements and notices to effectuate the change.

Working Group Parties
CCCFA California Community Choice Financing Authority
Project
Participants
Silicon Valley Clean Energy Authority (“SVCE”) and Ava Community Energy (formerly East Bay Community Energy) (“Ava”)
Bond Counsel Orrick, Herrington & Sutcliffe LLP and Ballard Spahr LLP, as applicable, as bond counsel Item 1j
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Agenda Item: 1j Agenda Date: 3/11/2026

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Energy
Counsel Chapman and Cutler LLP
Sheppard Sheppard, Mullin, Richter & Hampton LLP, counsel to the Morgan Stanley entities (including the Energy Suppliers and MSCG)
Energy
Supplier
Morgan Stanley Energy Structuring, L.L.C. (“MSES”), Energy Prepay VIII, LLC or Energy Prepay IX, LLC (as applicable), as Energy Supplier
MSCG Morgan Stanley Capital Group Inc., in its role as a PPA Assignee under the PPA Custodial Agreements RBC Royal Bank of Canada, in its role as a Commodity Swap Counterparty under the 2021B and 2023B transactions.

Natixis Natixis, in its role as a Commodity Swap Counterparty under the 2022A, 2023E, 2024A and 2025C transactions.

BP BP Energy Company, in its role as a Commodity Swap Counterparty under the 2024A and 2025F transactions
U.S. Bank U.S. Bank Trust Company, National Association, as successor Trustee, Paying Agent and Custodian BNYM The Bank of New York Mellon Trust Company, N.A., as existing Trustee, Paying Agent and Custodian BNYM
Counsel [TBD]
U.S. Bank
Counsel [TBD]

STRATEGIC PLAN
Approving the resolution will further Goal #6 of the SVCE Strategic Plan:

Goal #6: Maintain a healthy financial position; avoid failures in management of market risk, credit risk, liquidity risk, operational risk, and enterprise risk.

FISCAL IMPACT
The fiscal impact is limited to the legal and administrative work to execute the replacement. This cost is expected to be no more than $100,000, which is SVCE’s share based on splitting fees with Ava, and within the CEO’s signing authority. SVCE’s approved budget includes funds for professional services inclusive of prepay related expenses.

The economics and cash flows of the existing prepays are not expected to be impacted.

ATTACHMENTS

1. Resolution 2026-07 authorizing replacement of the Trustee for certain California Community Choice Financing Authority Clean Energy Project Revenue Bonds; and certain other actions in connection therewith
Item 1j
RESOLUTION 2026-07

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SILICON

VALLEY CLEAN ENERGY AUTHORITY AUTHORIZING THE

REPLACEMENT OF THE TRUSTEE FOR CERTAIN CALIFORNIA

COMMUNITY CHOICE FINANCING AUTHORITY CLEAN ENERGY
PROJECT REVENUE BONDS; AND CERTAIN OTHER ACTIONS IN

CONNECTION THEREWITH
WHEREAS, The Silicon Valley Clean Energy Authority (“SVCE”) was formed as a community choice aggregation agency (“CCA”) on March 31, 2016, under the Joint Exercise of Power Act, California Government Code sections 6500 et seq. (the “Act”), among the City of Campbell, City of Cupertino, City of Gilroy, City of Los Altos, Town of Los Altos Hills, Town of Los Gatos, City of Monte Sereno, City of Morgan Hill, City of Mountain View, County of Santa Clara (Unincorporated Area), City of Saratoga and City of Sunnyvale, to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The city of Milpitas, located in Santa Clara County, was added as a member of SVCE and a party to the Joint Powers Agreement (as defined below) in June 2018;
WHEREAS, California Community Choice Financing Authority (the “Issuer”) is a joint powers authority established and organized under the Act, with the power and authority to enter into contracts and issue bonds to assist CCAs in financing the acquisition of supplies of clean energy;
WHEREAS, the Issuer is authorized by its Joint Powers Agreement to acquire supplies of clean energy by any means and to issue revenue bonds to finance the cost of acquisition of such supplies, and is vested with all powers necessary to accomplish the purposes for which it was created;
WHEREAS, the Issuer previously issued its (a) Clean Energy Project Revenue Bonds, Series 2021B-1 (Term Rate) and Series 2021B-2 (SIFMA Index Rate) (collectively, the “Series 2021B Bonds”), (b) Clean Energy Project Revenue Bonds, Series 2023B-1 (Green Bonds) (Term Rate) and Series 2023B-2 (Green Bonds) (SOFR Index Rate) (collectively, the “Series 2023B Bonds”), (c) Clean Energy Project Revenue Bonds, Series 2024A (Green Bonds) (Term Rate) (the “Series 2024A Bonds”), and (d) Clean Energy Project Revenue Bonds, Series 2025F (Green Bonds) (Term Rate) (the “Series 2025F Bonds” and, collectively with the Series 2021B Bonds, the Series 2023B Bonds and the Series 2024A Bonds, the “Bonds”), the proceeds of which were applied to purchase certain quantities of clean energy on a prepaid basis which clean energy was sold to SVCE (and, with respect to the Series 2021B Bonds, to another Project Participant);
Item 1j
Attachment 1
Resolution 2026-07
2 WHEREAS, each series of Bonds was issued pursuant to an Indenture of Trust (collectively, the “Indentures”) between the Issuer and The Bank of New York Mellon Trust Company, N.A. (“BNYM”), as trustee (the “Trustee”); WHEREAS, each Indenture provides that, so long as no Event of Default, or an event which, with notice or passage of time, or both, would become an Event of Default, shall have occurred and be continuing, the Trustee may be removed at any time with 30 days’ prior written notice, with or without cause, by delivery of a written certificate of the Issuer to the Trustee, which removal shall not be effective until a successor Trustee has been appointed, and that at any time the Trustee is removed, a successor Trustee may be appointed by the Issuer;
WHEREAS, SVCE has determined that it is desirable to direct the Issuer to remove BNYM as Trustee and appoint U.S. Bank Trust Company, National Association (“U.S. Bank”) as successor Trustee under each Indenture (such transactions, collectively, the “Trustee Replacement”);
WHEREAS, SVCE has determined to authorize the officers of SVCE to take all necessary action to accomplish the Trustee Replacement; and NOW THEREFORE, BE IT RESOLVED by the SVCE Board of
Directors, as follows:

Section 1. SVCE hereby approves the Trustee Replacement.

Section 2. Any of the Chief Executive Officer and the Chief Financial Officer (each an “Authorized Officer”) is hereby authorized and directed, for and in the name and on behalf of SVCE, to execute and deliver any and all documents, instruments, agreements, amendments and certificates, including, without limitation, any requests, notices or directions with respect to the Trustee Replacement and any documents necessary to effect the replacement of BNYM with U.S. Bank under any other transaction documents executed with respect to the Bonds, the approval of such documents and certificates by an Authorized Officer to be conclusively evidenced by the execution and delivery thereof, and to take any and all actions which may be necessary or advisable, in the discretion of such Authorized Officers, to effectuate the actions which SVCE has approved in this Resolution, for the Trustee Replacement, including any subsequent amendments, waivers or consents entered into or given under or in accordance with such documents.

Section 3. All actions heretofore taken by the Authorized Officers with respect to the Trustee Replacement are hereby ratified, confirmed and approved.

Section 4. An Authorized Officer may direct the payment to professionals that provided services to SVCE in connection with the Trustee Replacement. These professional services include legal counsel, bond counsel, tax counsel, Municipal Financial Advisor, Swap Advisor, and any other consultant needed to complete the transactions contemplated herein for SVCE. Payment to these professionals will be made pursuant to the terms of the applicable agreement executed with SVCE.

Item 1j
Attachment 1
Resolution 2026-07
3 Section 5. An Authorized Officer may direct the payment to additional vendors and/or parties to any documents entered into with respect to the Trustee Replacement to complete the Trustee Replacement. These vendors, if any, will be paid pursuant to an agreement for services rendered in completing the Trustee Replacement.

Section 6. This Resolution shall take effect immediately.

ADOPTED AND APPROVED at a regular meeting of the SVCE Board of Directors on this 11th day of March, 2026.

Page 1 of 2 ends

Staff Report – Item 1k
Item 1k: Receive Executive Committee Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Pat Showalter, Executive Committee Chair
Date: 3/11/2026
The Executive Committee (Committee) met February 27, 2026 and discussed a request from staff to support an addition to the 2026 Legislative Policy Platform on a Diablo Canyon Nuclear Power Plant extension, considered a recommendation to change SVCE’s fiscal year period, and received an update on financial levers.

Monica Padilla, Chief Executive Officer, provided an update on the California Public Utility Commission (CPUC) decision on a new procurement order, and Zoe Elizabeth, Director of Decarbonization Policy and Community Strategies, provided an update on SVCE’s new headquarters.

The Committee heard from Bena Chang, Director of Government and Legislative Affairs, who presented a request for the Committee to recommend that the Board of Directors approve an addition to the 2026 Legislative Policy Platform to support an extension of the Diablo Canyon Nuclear Power Plant (subject to affordability provisions). The addition to the Policy Platform was suggested in anticipation of state legislation.

The Committee was supportive, and voted unanimously to approve the recommendation from staff in addition to including language on continuing to use nuclear power. This item will be included on the Consent Calendar for the Board’s consideration in March.

Amrit Singh, Chief Financial Officer, presented a request for the Committee to support a change to SVCE’s fiscal year period from the current October 1 through September 30 to a calendar year, effective January 1, 2027, and changes to the SVCE Budget Policy to remove the requirement to provide a budget overview two months prior to the end of the fiscal year. CFO Singh outlined the reasoning behind the proposed fiscal year change, which was to more closely align with the adoption of the annual budget with customer rate changes, and how this change would affect the budget and planning process timeline. In the event the fiscal year change is approved, there would be a transition period starting January 1, 2027 and an interim three-month transition “stub” period would be needed from October 2026 to December 2026. The Committee voted unanimously to support the fiscal year change, which will be presented to the Board of Directors at the March Board of Directors meeting.

Justin Zagunis, Director of Customer Success, provided a follow-up update on financial levers from discussions had with the Board back in December 2025. Director of Customer Success Zagunis included a recap of SVCE’s value proposition and the feedback that was heard from the first discussions, and presented an example scenario of customer choice where the customer has an option to opt down to a new minimum compliance product. The Committee discussed this example scenario and opinions on the importance of various levers, remaining competitive, remaining clean, and how other CCAs are handling similar challenges. Staff will bring this discussion to the Board of Directors at the March meeting to incorporate the Executive Committee’s comments and receive additional feedback.

Item 1k
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1k Agenda Date: 3/11/2026

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Materials from this meeting can be found on SVCE’s website: SVCE Executive Committee Meeting, February 27, 2026
The next meeting of the Executive Committee will be held March 27, 2026 at 10:00 a.m.; materials will be posted no later than 72 hours in advance of the meeting.

Item 1k

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Staff Report – Item 1l
Item 1l: Receive Finance and Administration Committee Report To: Silicon Valley Clean Energy Board of Directors
Prepared by: Murali Srinivasan, Chair, Finance and Administration Committee Bryan Mekechuk, Vice Chair, Finance and Administration Committee Date: 3/11/2026
The Finance and Administration Committee (Committee) met for its first meeting of the calendar year on Thursday, March 5, 2026 with all five members present (four in person, and one remote). The Committee selected Alternate Director Murali Srinivasan to serve as Chair and Director Bryan Mekechuk to serve as Vice Chair for 2026. Staff presented items on a recommendation to change SVCE’s fiscal year period, review and request for recommending the fiscal year 2025-2026 mid-year adjusted operating budget, an update on SVCE’s financial levers discussion, and an overview of SVCE’s Enterprise Risk Management and proposed stress test cases.

Amrit Singh, Chief Financial Officer, shared that the Audit Committee met on March 3, 2025 and voted unanimously to recommend that the Board of Directors (Board) accept the audit results, which will be presented to the Board at the March 11, 2026 Board meeting. CFO Singh also commented on the implementation of GASB 96, mentioning that the threshold of the policy will be brought to the May Finance and Administration Committee.

CFO Singh presented a request for the Finance and Administration Committee to recommend that the Board of Directors approve the change of SVCE’s fiscal year period, currently October 1 – September 30, to a calendar year, effective January 1, 2027. Benefits from this change include avoiding setting a budget in September and having to amend it when there is more certainty on upcoming PG&E rates and PCIA charges, and it aligns with the timeline for many external compliance requirements and internal planning processes. CFO Singh reviewed the new planning process and timeline for this proposed change, noting the Board will no longer have the opportunity to review and provide feedback on the proposed budget two months prior to the end of the fiscal year (therefor requiring an amendment to the Budget, Adoption, Control and Reporting Policy to remove this requirement), and the need for an interim three-month stub fiscal period Oct. 1, 2026 – December 31, 2026 and authorizing a combined two-period audit to cover this stub-period along with the first audit of the new fiscal year. The Committee voted unanimously to support this recommendation, which will be presented to the Board at the March 11, 2026 Board meeting.

Next, CFO Singh presented the Fiscal Year 2025-2026 Mid-year Adjusted Operating Budget, which showed a $12.5 million draw from reserves as opposed to the $60.5 million adopted in the December 2025 budget due to power costs decreasing and revenues increasing. CFO Singh noted the negative five-year financial outlook trend previously shared in the December 2025 budget update continues, with the five-year financial projection in December 2025 showing 200 days of cash on hand (DCOH) at the end of the five year projection period decreasing to 142 DCOH. The Committee voted unanimously to recommend the Board to approve the fiscal year 2025-2026 mid-year adjusted operating budget, which will be presented on March 11, 2026 to the Board.

Item 1l
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1l Agenda Date: 3/11/2026

Page 2 of 2 ends

Justin Zagunis, Director of Customer Success, presented follow-up information from the December 2025 Special Meeting on financial levers, reviewing the input received from the Board and the customer-facing value proposition. Director of Customer Success Zagunis requested feedback from the Committee on an example scenario, which included a default clean product at a 4% premium, an option for customers to opt down to a minimum compliance product at a 1% discount to PG&E, and to reduce program spend by 10% starting in fiscal year 2027. Committee members provided feedback on the scenario and shared the value propositions of importance to them.

Scott Wrigglesworth, Director of Risk Management and Analytics, shared an overview of SVCE’s planning and budgeting process, and requested feedback on the planned financial stress test scenarios (price collapse, affordability focus, and PCIA reopening/revamp). The Committee inquired about other risks and opportunities that were being monitored, and was supportive of the stress test scenarios identified. This item will come back to the Finance and Administration Committee meeting in the May timeframe with the analysis results and will then be presented to the Board in June 2026.

Materials from the Finance and Administration Committee meeting can be found at the following link: SVCE Finance and Administration Committee Meeting, 3/5/26.

The next meeting of the Finance and Administration Committee is anticipated to be in May 2026; the exact date will be determined by Finance and Administration Committee member availability. Materials will be posted no later than 72 hours in advance of the meeting.

Item 1l

Page 1 of 2 ends

Staff Report – Item 1m
Item 1m: Receive Audit Committee Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Bryan Mekechuk, Chair, Audit Committee
Date: 3/11/2026
On behalf of the Audit Committee, I am submitting this report to the Board of Directors.

The Audit Committee held its first meeting of calendar year 2026 on Tuesday, March 3, 2026. Returning members to the committee included Director George Tyson (Town of Los Altos Hills), Committee member Harjot Sangha (City of Gilroy) and me (City of Monte Sereno); Committee member Jessie Kim (City of Los Altos) is the committee’s new member. Three Committee members participated in person, and one was remote.

The Audit Committee selected me to continue serving as Chair and Committee member Sangha to serve as Vice Chair for 2026.

As the 2025 Chair of the Audit Committee, on January 30, 2026 I met with CFO Amrit Singh, Karen Chang, Manager of Finance and Mike Maher (Maher Accountancy) and walked through the draft financial statements in detail during that meeting.

On February 13, 2026, I met over Zoom with Kellin Gilbert, the partner with Sorren CPAs, P.C. that is responsible for auditing SVCE, regarding the financial accounting and disclosure, and the audit itself without SVCE management present.

During the Audit Committee meeting on March 3, 2026, Mr. Gilbert presented the results of the audit of the Fiscal Year 2024-25 financial statements to the group and noted the audit was complete and an unmodified audit opinion (a “clean audit opinion”) was reported. The Committee voted unanimously to receive the financial audit report and recommend the SVCE Board of Directors accept the audit findings. These findings will be presented to the Board of Directors at the March 11, 2026 Board meeting.

Amrit Singh, CFO, presented a request for the Committee to recommend the Board approve changing the fiscal year period to a calendar year from the current October 1 through September 30 fiscal year. CFO Singh reviewed how this change would affect the timeline for the financial budget and annual audit, in addition to needing an interim three-month stub period from October 1, 2026 to December 31, 2026. The request also included authorizing a combined two-period audit covering the three-month stub period, along with the first audit of the new fiscal year. The Committee voted unanimously to support the changes, which will be on the agenda for the March 11, 2026 Board meeting.

The last regular calendar item discussed at the Audit Committee meeting was an informational item from Nik Zanotto, Director of Operations, and Brett Sirianni, Information Security Manager, on SVCE’s cybersecurity posture. The presentation included an overview of SVCE’s information system audits and assessments, security training, and update on security incidents.

Materials from the Audit Committee meeting can be found at the following link: SVCE Audit Committee Meeting, 3/3/26.

Item 1m
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 1m Agenda Date: 3/11/2026

Page 2 of 2 ends

The next meeting of the Audit Committee is anticipated to be in September 2026, and the exact date will be determined by Audit Committee member availability; materials will be posted no later than 72 hours in advance of the meeting.

Item 1m

Page 1 of 1 ends

Staff Report – Item 1n
Item 1n: Receive 2026 Legislative Responses to Industry Transition Ad Hoc Committee Report To: Silicon Valley Clean Energy Board of Directors
Prepared by: Andrea Pizano, Sr. Executive Assistant and Board Clerk Date: 3/11/2026
There is no report for the 2026 Legislative Responses to Industry Transition Ad Hoc Committee; the first meeting of this committee is expected to take place in March based on member availability.

Item 1n
SILICON VALLEY \3/ CLEAN ENERGY

Page 1 of 1 ends

Staff Report – Item 1o
Item 1o: Receive California Community Power Report
To: Silicon Valley Clean Energy Board of Directors
From: Monica Padilla, CEO
Date: 3/11/2026
Per direction from the Silicon Valley Clean Energy (SVCE) Board of Directors (Board) on December 9, 2020 for the Chief Executive Officer to provide a report of the ongoing activities of California Community Power (CC Power) after each of its meetings, this is to report CC Power’s February 18, 2026 meeting was canceled.

The next meeting of the board will be March 18, 2026 at 1:00 p.m.; meeting materials can be found on the CC Power website: https://cacommunitypower.org/meetings/
Item 1o
SILICON VALLEY \3/ CLEAN ENERGY

Page 1 of 5 ends

Staff Report – Item 2
Item 2: CEO Report
To: Silicon Valley Clean Energy Board of Directors
Prepared by: Monica Padilla, CEO
Date: 3/11/2026
REPORT
Personnel Officer Update
A Senior Manager of Human Resources position is currently open and posted to SVCE’s website: Current Job Openings
Power Resources & Clean Energy Update
SVCE launched a solicitation for new long-term projects, "2026 Request for Offers for New Build Carbon Free Energy and Storage Projects," on February 5th, and received offers March 4th. The goal of this RFO is to make progress towards meeting its goals related to Renewable Portfolio Standard (RPS), greenhouse gas emission reductions, and reliability requirements by contracting with RPS-eligible and carbon-free resources. SVCE is seeking resources with initial delivery dates in 2026 or later, for a minimum term of ten (10) years and a maximum term of twenty (20) years. SVCE is currently reviewing offers, and targets execution of a PPA for any successful project(s) by the end of 2026.

SVCE is on track to end 2025 above its target with a 107% clean position – actual load and resources are still being calculated. Looking forward, 2026 has several Power Purchase Agreements (PPA) coming online in the first half of the 2026, including: 1) SunZia [125MW of wind] is targeting April, 2) Angela [20/10MW solar+storage] is targeting May, 3) Aratina [80/50MW solar+storage] is targeting June, and 4) Tumbleweed [15.9MW long duration storage via CC Power] is also targeting June. If all these resources meet their expected online dates SVCE should be at 105.5% clean for the year.

Attachment 1 provides a summary of clean energy procurement and development progress.

Budget and Financial Outlook Update
Treasurer’s Report: The Board packet includes the Treasurer’s report (Item 1c), which shows the Total Net Position decreased to $527.4 million from $532.2 million reported in last month’s report. Staff reviewed the mid-year budget update with the Finance and Administration Committee last week and will present it to the Board on March 11, 2026.

Customer Success Department Updates
Press and Media
Press Releases
• Silicon Valley Clean Energy Board Names 2026 Chair and Vice Chair, Press Release, 2-11-26 Item 2
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 2 Agenda Date: 3/11/2026

Page 2 of 5 ends

Media Mentions
• Heat Pump Water Heaters Can Save Over $500/Year On Utility Bills, CleanTechnica, 2-16-26 • Hydrostor’s Willow Rock Energy Storage Center Signs Offtake Agreement with California Community Power, AP News, 2-12-26
• The growing need for long-duration energy storage in the US, Solar Power World, 2-10-26 • Mountain View doubles money to offer $2K water heater rebates, Mountain View Voice, 2-3-26 Recent & Upcoming Events
March 11 – MV Chamber Business Issues &
Public Policy Meeting
- Staff presentation
- 12 – 1:30 p.m.
- Zoom; email SVCE staff for registration
link
March 14 – Cupertino Rotary Club Home
Tours
- Sponsorship
- Time TBD
- Homes throughout Cupertino, Saratoga,
Los Altos, and Los Altos Hills
March 26 - SCCOE Environmental Literacy
Summit (Tentative)
- Sponsorship
- 8 a.m. – 3:30 p.m.
- SCCOE, 1290 Ridder Park Drive
San Jose, CA 95131
April 4 – Cupertino Earth Day
- Tabling
- 11 a.m. – 3 p.m.
- Cupertino Library Lawn, 10800 Torre Ave,
Cupertino, CA 95014
April 11 – Sunnyvale Earth Day
- Tabling
- 11 a.m. – 2 p.m.
- Sunnyvale City Hall, 456 W Olive Ave,
Sunnyvale, CA 94086
April 13 – Climate Center Policy Summit
- Sponsorship
- 9 a.m. – 5 p.m.
- Sheraton Grand Sacramento Hotel, 1230 J
St, Sacramento, CA 95814
April 18 – Mountain View Earth Day
- Tabling
- Time TBA
- 500 Castro St, Mountain View, CA 94041
April 18 – Milpitas Earth Day
- Tabling
- Time TBA
- 1567 Yellowstone Ave, Milpitas, CA 95035
April 24 – Saratoga Elementary Earth Day
- Presentations and tabling
- 8 a.m. - 12 p.m.
- 14592 Oak St, Saratoga, CA 95070
April 25 – Morgan Hill Earth Day
- Tabling
- 9 a.m. - 2 p.m.
- 17000 Monterey Rd, Morgan Hill, CA
95037
April 26 – Los Gatos Spring Into Green
- Tabling
- 10 a.m. - 2 p.m.
- Town Plaza Park, Montebello Way, Los Gatos, CA 95030
Regulatory & Legislative Update
Regulatory:

On February 26th the CPUC voted out a revised proposed decision (“PD”) in the Integrated Resource Planning proceeding directing load serving entities (“LSEs”) such as SVCE to procure an additional 6,000 MW of new resources. In the February 24th revision the Commission removed the original PD’s requirement that no more than 50% of the capacity comes from storage. However, the order now requires that 25% of the capacity come from long duration energy storage and/or geothermal resources. Additionally, due to a change in the forecast for setting the allocation, SVCE’s total share of 6,000 MW has increased from 125 MW to 135 MW net qualifying capacity (“NQC”). SVCE is required to bring on 45 MW NQC per year in 2030, 2031 and 2032, respectively.

Legislative:

February 27, 2026, was the deadline for state legislators to introduce bills. SVCE staff is reviewing and analyzing bills. CalCCA, SVCE’s state trade association, is sponsoring two bills this legislative session: AB 1671 (Rogers) to Item 2
Agenda Item: 2 Agenda Date: 3/11/2026

Page 3 of 5 ends

provide data transparency around the Power Charge Indifference Adjustment and SB 1138 (Padilla) to allow Resource Adequacy obligation trading. SVCE is working closely with CalCCA to ensure the passage of the bills.

On February 12, 2026, the federal administration finalized the formal repeal of the 2009 Endangerment Finding.

The Endangerment Finding is the legal foundation for regulating GHG emissions under the Clean Air Act. As part of this repeal, the Environmental Protection Agency concluded that the Clean Air Act does not authorize the Environmental Protection Agency to regulate GHG emissions from motor vehicles. The repeal of the Endangerment Finding may lead to the elimination of regulations such as the Corporate Average Fuel Economy (CAFE) standards for vehicles, and rules around clean power plants. Several groups have sued in response.

Attachment 2 contains a summary of current regulatory proceedings and legislative initiatives SVCE staff is either participating in or monitoring.

New SVCE Headquarters
Construction on the new SVCE Headquarters began in the last week of February. The current estimate is that construction will be complete at the end of June and staff will move in at the start of July 2026. Staff is in the process of assessing furniture and equipment needs.

Look Ahead Update
Staff continues to plan for Board and committee meetings for the year. Below is a preview of what’s ahead for the Board from April through June 2026:

Upcoming Events
March 20, 2026: POWER Conference on Energy Research and Policy, Berkeley April 21 – 24, 2026: Economics of Energy and the Environment Virtual Course May 12 – 14, 2026: CalCCA Conference & 10-year Anniversary Celebration, Sacramento June 18, 2026: CC Power Ribbon Cutting for Tumbleweed Long Duration Storage Project, Kern County

ATTACHMENTS

1. SVCE Clean Power Update, March 2026

2. Regulatory and Legislative Update, March 2026
Item 2
April May June
Agenda Look Ahead: April - June 2026
15th: BOD Meeting
Integrated Resource Plan -Action
SVCE Financial Levers Discussion and
Direction - Action
10th: BOD Meeting
Stress Test Analyses Results -
Discussion
Custom Pricing Policy -New Load -
Discussion
Policy Updates - Action
*Please note the items on this schedule may change
depending on priorities
11th: BOD Meeting
• New Headquarters Update -Discussion
• Approve Power Purchase Agreement -
Action
• SVCE Decarbonization Roadmap Update -
Discussion
• Programs Impact Summary - January 1,
2025 to December 31, 2025 -
Informational
Agenda Item: 2 Agenda Date: 3/11/2026

Page 4 of 5 ends

Exhibit 1 - CEO Agreements Executed Under Delegated Authority The following agreements have been executed by the CEO or their delegate, consistent with the authority delegated by the Board:

Type Consultant Description Compensation Term Authority Agreement Sabrina Bornstein Writing Consulting
Services
NTE - $49,500 1/30/2026 -
12/31/2026
CEO Spending
Authority
Agreement Eagle Park Multifamily Retrofits
Grant Program
NTE - $237,203 2/4/2026 -
12/31/2028
BOD Approved
12/2023
Agreement San Francisco
Elevator Services
Elevator maintenance NTE - $4,000 2/5/2026 -
2/4/2027
CEO Spending
Authority
Agreement 950 El Camino
Real, L.P
Multifamily Retrofits
Grant Program
NTE - $248,067 2/4/2026 -
12/31/2028
BOD Approved
12/2023
Agreement Ion Translations,
LLC
Translations Services NTE - $140,000 10/1/2022 -
9/30/2027
CEO Spending
Authority
Agreement Town Of Los Altos
Hills
Member Agency Grant NTE - $155,736 2/10/2026 -
12/31/2028
BOD Approved
3/2024
Amendment Jeff Carino AI Consulting No new money
(term
extension)
extends
term to
5/31/2026
CEO Spending
Authority
Agreement SJECCD
Foundation
Scholarship
Establishment
Agreement
NTE - $35,000 2/11/2026 -
12/31/2026
Workforce
Development
Partnership
Program
Funds
approved by
BOD 3/2024
Amendment HBT Energy
Management
Power Resources
Management Services
No new money
(term
extension)
extends
term to
3/31/2027
CEO Spending
Authority
Agreement ClearResult
Consulting
Technical Assistance for
Community Grants
NTE - $300,000 2/18/2027 -
12/31/2030
BOD Approved
2/2026
Agreement City of Gilroy Member Agency Grant NTE - $235,178 2/20/2026 - 12/31/2028
BOD Approved
3/2024
Agreement Laura Kaplan Recruiting Sourcing NTE - $2,500 2/23/2026 - 5/31/2026
CEO Spending
Authority
Item 2

Page 5 of 5 ends

Exhibit 2 - CEO Power Supply Agreements Executed Under Delegated Authority Counterparty Name Execution/Effective Date Transaction
Type Product Start Date End Date Notional Value
MRP San Joaquin Energy, LLC 2/16/2026 Sale Resource Adequacy 3/1/2026 3/7/2026 $55,582.26 MRP San Joaquin Energy, LLC 2/16/2026 Sale Resource Adequacy 3/15/2026 3/21/2026 $16,483.87 Item 2

SILICON VALLEY

CLEAN ENERGY
• Subtitle
New SV Clean Energy
PowerPoint Template
CEO Report
Clean Power Update
SVCE Board Meeting
March 11, 2026
Item 2
Attachment 1
Clean Power Update, March 2026

SILICON VALLEY

CLEAN ENERGY
2 California’s Clean Energy Goals
SVCE’s
procurement
targets are
primarily driven
by regulatory
requirements
and Board goals
• 60% Renewable Energy by 2030 SB100 • 100% Carbon Free by 2045 • 65% of Renewable Energy must be from Long-Term SB350 (10yr or more) contracts • Mid-Term Reliability
• Established by the CPUC to focus on securing
sufficient online resources to meet expected demand
in the coming few years
Procurement
Orders
• 100% Clean – annually, with line losses
• 75% Renewable by 2030
• 100% Renewable by 2035 (adopted late 2024)

SVCE BOD
Item 2
Attachment 1
Clean Power Update, March 2026
3 SVCE is On Track to Meet SB100 and Agency Goals
for Clean and RPS…
Item 2
Attachment 1
Clean Power Update, March 2026
Clean Volumes (MWhs)
4M
3M
2M
1M
OM
2025 2026 2027 2028 2029 2030
Compliance Year
•
RPS Volumes GHG Free Volumes•SVCE RPS Position •SVCE Clean Position •SB100 Target•SVCE Clean Target 120%
100%
80%
60%
40%
20%
0%
Percent of Retail Load
4 And Making Significant Progress Toward Meeting
Long-Term RPS Targets
SB350 is a multi-year compliance
period obligation,
which has interim
annual targets
9%
7%
1%
3%
3%
5%
4%
8%
5% 45%
31%
% of Retail Sales
CY 2025 Expected Long-Term RPS
• Currently in Compliance Period 5: 2025-2027
Item 2
Attachment 1
Clean Power Update, March 2026
Long-Term Power Purchase Agreements
• $4.1B+ in commitments
• 26 PPAs signed
• 23 new build projects
• 1,000+ MW of Renewable Power
• 2,000+ MWh of Battery Storage
10 Projects now delivering to SVCE:
• COSO geothermal - January 2022
• Slate Solar + Storage – January 2022
• Casa Diablo geothermal – July 2022
• Mountain View wind – July 2022
• Rabbitbrush Solar + Storage – October 2022
• Terra-Gen Wind – January 2023
• Yellow Pine Solar + Storage – July 2023
• Victory Pass Solar + Storage – March 2024
• Baldy Mesa Storage (RA-only) – June 2024
• Hanford BESS – August 2025
Item 2
Attachment 1
Clean Power Update, March 2026
Long-Term Contracts: Online
Victory Pass Solar + Storage
Casa Diablo Geothermal
Seller Project Name Technology Generation MW Storage MW Storage MWh Term
(years)
SVCE Board
Approval
1 MN8 Slate Solar + Storage 93 46.5 186 17 Oct-18
2 Ormat Casa Diablo Geothermal 7 10 Feb-20
3 Atlantica Coso Geothermal 43.8 15 Mar-20
4 Leeward Rabbitbrush Solar + Storage 40 8 20 15 Apr-20 5 NextEra Yellow Pine Solar + Storage 50 26 104 20 May-20 6 AES Mountain View Wind 33.3 20 Apr-21
7 Clearway Victory Pass Solar + Storage 100 25 100 15 May-21 8 Terra-Gen Cameron Crest Wind 77.7 15 May-21
9 AES Baldy Mesa (RA-only) Storage 0 75 300 10 Sep-22
10 Middle River
Power Hanford Thermal + BESS 99.4 131.4 131.4 12 Apr-23 Item 2
Attachment 1
Clean Power Update, March 2026
Long-Term Contracts: In Development
SunZia Wind & Transmission
Seller Project Name Technology
Generation
MW Storage MW Storage MWh
Term
(years)
SVCE Board
Approval Status
1 Avantus Aratina Solar + Storage 80 50 200 20 Jun-20 Construction 2 SB Energy Angela Solar + Storage 20 10 40 15 Mar-21 Construction 3 Origis San Luis West Solar + Storage 62.5 15.625 62.5 15 Apr-21 Pre-construction 4 Rev
Renewables Tumbleed
Long Duration
Storage 0 15.9375 127.5 15 Feb-22 Construction
5 Ormat
Geothermal
Portfolio Geothermal 16.75 20 Jun-22 Pre-construction
6 OME Fish Lake Geothermal 1.82 20 Jun-22 Pre-construction 8 NextEra Grace Solar 120 15 Aug-23 Pre-construction
9 NextEra Yellow Pine III Storage 0 24 96 15 Aug-23 Pre-construction 10 NextEra Yellow Pine III
Long Duration
Storage 0 9 72 15 Apr-25 Pre-construction
11 Pattern SunZia South Wind 70.2 15 Nov-23 Construction 12 Pattern SunZia North Wind 29.8 15 Nov-23 Construction 13 VCI Energy
Garden Green
Solar Solar + Storage 50 50 200 10 Oct-24 Pre-construction 14 Pattern
SunZia South
Incremental Wind 17.54 10 May-25 Construction
15 Pattern
SunZia North
Incremental Wind 7.46 10 May-25 Construction
16 Intersect
Power Darden III Solar + Storage 91.48 91.48 365.92 15 Sep-25 Pre-construction Item 2
Attachment 1
Clean Power Update, March 2026
Clean Energy Resources Online Progress
as of February 27, 2026
2025 • San Luis West Solar + Storage: Pre-construction - delayed • SunZia N/S Wind and Incremental N/S Wind: Construction mode; possible COD in April • Angela Solar + Storage: Construction mode; possible COD in May • Tumbleweed LDS: Construction mode; possible COD in June • Aratina Solar + Storage: Construction mode; possible COD in June 2026
• Fish Lake Geothermal: Pre-construction
• Grace Solar: Pre-construction
• Ormat Geothermal Portfolio: Pre-construction
2027
• Yellow Pine III Storage: Pre-construction
• Yellow Pine III LDS: Pre-construction
• Darden: Pre-construction
• Garden Green Solar: Pre-construction
2028+
Item 2
Attachment 1
Clean Power Update, March 2026
THANK YOU!
9 Item 2
Attachment 1
Clean Power Update, March 2026
1 • Subtitle
New SV Clean Energy
PowerPoint Template
SVCE Legislative and
Regulatory Update
March 11, 2026
Item 2
Attachment 2
SVCE Leg/Reg Update, March 2026
2 Policy Updates
Regulatory Update:

1. Demand Response

2. Timely Energization
Legislative Update:

1. SVCE’s Bill Positions

2. 2026 Legislative Calendar
Item 2
Attachment 2
SVCE Leg/Reg Update, March 2026
CD Policy Updates

2. 2026 Legislative Calendar
Regulatory Update

1. Demand Response

2. Timely Energization
Legislative Update

1. SVCE’s Bill Positions
2 3
Regulatory
Update
3 Item 2
Attachment 2
SVCE Leg/Reg Update, March 2026
Regulatory
Update
4 Key Regulatory Activities
Activity Purpose Status
Demand Response
(R. 25-09-004)
To enhance Demand Response
in California
A Scoping Memo setting the schedule for the Demand Response proceeding has been issued. The judge ruled that the case will split into two issue tracks. Track 1 will cover Issue 1, determining bridge year funding for the Investor Owned Utilities Demand Response (DR) programs. The CPUC previously approved funding for DR programs through 2027 and Investor Owned Utilities requested a bridge year of funding while DR valuation and other DR policies are deliberated. The second track, covering Issues 2 -5, will determine standardized data systems, approve guiding principles for DR policy, and evaluate all other policy issues to make demand response resources more consistent, predictable, reliable, and cost - effective. These policy issues include dual enrollment, valuation methods and evaluation metrics, Resource Adequacy value, CAISO market integration, and cost -effectiveness. Both tracks are expected to have final decisions voted out by the end of 2026. SVCE plans to engaged in the case, coordinating with CalCCA .

Timely Energization
(R. 24-01-018)
To establish energization
timelines
A final decision (D. 26-02-025) was issued in the Timely Energization case, establishing a Standard Offer for Flexible Service Connections to be used as bridging solutions. A Flexible Service Connection allows a customer who is waiting for a distribution grid upgrade to use more power when the expected grid conditions indicate that it will be safe for them to use this power. SVCE supports the implementation of Flexible Service Connections because they allow the customer to receive service earlier than they would normally be able to if they had to wait for the distribution grid upgrade to be completed. D. 26-02-025 ordered Pacific Gas & Electric Company and Southern California Edison to establish a tariffed Standard Offering Flexible Service Connection Form Agreement and report data on flexible service connections in the biannual energization report. (San Diego Gas & Electric has no requirement to do so because it does not have significant upstream capacity constraints on its distribution grid.)
Item 2
Attachment 2
SVCE Leg/Reg Update, March 2026
Key Regulatory Activities
Activity Purpose Status
A Scoping Memo setting the schedule for the Demand Response proceeding has been issued. The judge ruled that the case will split into two issue tracks. Track 1 will cover Issue1, determining bridge year funding for the Investor Owned Utilities Demand Response (DR) programs. The CPUC previously approved funding for DR programs through 2027 and Investor Owned Utilities requested a bridge year of funding while DR valuation and other DR policies are deliberated. The second track, covering Issues 2-5, will determine standardized data systems, approve guiding principles for DR policy, and evaluate all other policy issues to make demand response resources more consistent, predictable, reliable, and cost-effective. These policy issues include dual enrollment, valuation methods and evaluation metrics, Resource Adequacy value, CAISO market integration, and cost-effectiveness. Both tracks are expected to have final decisions voted out by the end of 2026. SVCE plans to engaged in the case, coordinating with CaICCA.
4 5
Key Regulatory Activities
Activity Purpose Status
Integrated Resource
Planning
(R.25-06-019)
Order Instituting Rulemaking
to Continue Oversight of
Electric Integrated Resource
Planning and Procurement
Processes
On February 26th the Commission voted out an order for an additional 6,000 MW of net qualifying capacity ("NQC") to be procured by load serving entities ("LSE") such as SVCE.

This order broadly follows the rules and standards of prior procurement orders. Though the original proposed decision placed a cap on the total quantity of storage an LSE could procure, that cap was subsequentially removed in a revised proposed decision. However, the order now requires that 25% of the capacity come from long duration energy storage and/or geothermal resources.

Additionally, due to a change in the forecast for setting the allocation, SVCE’s total share of 6,000 MW has increased from 125 MW to 135 MW net qualifying capacity (“NQC”). SVCE is required to bring on 45 MW NQC per year in 2030, 2031 and 2032, respectively.

Item 2
Attachment 2
SVCE Leg/Reg Update, March 2026
Key Regulatory Activities
Activity | Purpose | Status
5 6
Legislative Update
Item 2
Attachment 2
SVCE Leg/Reg Update, March 2026
7 SVCE Bill Positions
Bill Number Summary SVCE
Position
Position Taken
Under which Board -
Adopted Legislative
Platform Policy
Status
AB 1761
(Rogers)
Requires CPUC to share all
data used in calculation of
the Power Charge
Indifference Adjustments to
CCAs and other
stakeholders.

Support Affordability and
Rates
Assembly Energy
Committee
SB 1138
(Padilla)
Requires CPUC to allow
load -serving entities to trade
Resource Adequacy
compliance obligations.

Support Affordability and
Rates
Senate Energy
Committee
Item 2
Attachment 2
SVCE Leg/Reg Update, March 2026
0 SVCE Bill Positions
Bill Number Summary SVCE
Position
AB 1761
(Rogers)
SB 1138
(Padilla)
Requires CPUC to share all
data used in calculation of
the Power Charge
Indifference Adjustments to
CCAs and other
stakeholders.

Requires CPUC to allow
load-serving entities to trade
Resource Adequacy
compliance obligations.

Support
Support
Position Taken
Under which Board-Adopted Legislative
Platform Policy
Status
Affordability and
Rates
Assembly Energy
Committee
Affordability and
Rates
Senate Energy
Committee
7 8
• January 5 – Legislature Reconvenes
• January 31 – Last day for each house to pass bills introduced in that house in 2025 • February 20 – Last day for bills to be introduced
• April 24 – Last day for policy committees to hear fiscal bills • May 15 – Last day for fiscal committees to hear bills introduced in that house • May 29 – Last day for each house to pass bills introduced in that house • June 15 – Budget bill must pass by midnight
• July 2 – Last day for policy committees to vote on bills • August 14 – Last day for fiscal committees to vote on bills • August 31 – Last day for each house to pass bills
• September 30 – Last day for Governor to sign bills
• November 3 – Statewide General Election
Key 2026 State Legislative Milestones
Item 2
Attachment 2
SVCE Leg/Reg Update, March 2026
1 Key 2026 State Legislative Milestones
January 5—Legislature Reconvenes
January 31—Last day for each house to pass bills introduced in that house in 2025 February 20—Last day for bills to bo introduced
April 24 - Last day for policy committees to hear fiscal bills May 15 - Last day for fiscal committees to hear bills introduced in that house May 29 -Last day for each house to pass bills introduced in that house June 15 -Budget bill must pass by midnight
July 2 - Last day for policy committees to vote on bills August 14 - Last day for fiscal committees to vote on bills August 31- Last day for each house to pass bills
September 30 - Last day for Governor to sign bills
November 3 -Statewide General Election
8

Page 1 of 3 ends

Staff Report – Item 3
Item 3: Receive Financial Audit Results and Accept the Findings from the Independent Auditor
From: Monica Padilla, CEO
Prepared by: Amrit Singh, CFO
Karen Chang, Manager of Finance
Date: 3/11/2026

RECOMMENDATION
Receive the Year-End Financial Statements and the Independent Auditor’s Report for the Fiscal Year 2024-25.

AUDIT COMMITTEE RECOMMENDATION
At the March 3rd, 2026, meeting of the Audit Committee, committee members received a presentation by the Independent Auditor discussing the status of the audit and the auditor’s opinion. The Audit Committee also received the Annual Audited Financials, the Letter of Significant Deficiencies or Material Weaknesses Identified, and the Audit Report to the Board of Directors. The Audit Committee voted unanimously that the Board of Directors accept the Audit Findings.

BACKGROUND
In accordance with Financial Policy #1 (FP-01), Accounting Policy, the annual audit of the financial statements has been completed, and the report prepared by Sorren CPAs, P.C. (formerly Kosmatka Donnelly & Co., LLP) has been issued to the Agency. The auditors have issued an unmodified opinion, a “clean opinion,” indicating that the financial statements are materially accurate. The auditors also reported that no significant deficiencies or material weaknesses in internal controls were identified.

At the March 12, 2025, Board of Directors meeting, the Board established a Rate Stabilization Fund in accordance with the Governmental Accounting Standards Board1 (GASB) Standard 62. GASB 62 is an accounting method available to government entities that allows SVCE to recognize revenues set aside for certain costs in the same period as the expenses are incurred. This implementation, for example, allows SVCE to defer revenues to a Rate Stabilization Fund for “earmarked funds,” such as those for customer decarbonization programs that the Board has funded but have not yet been spent. It affects the reporting of the net position in the financial statement by decreasing it for the amount of deferred revenues, such as $100 million for Fiscal Year 2024-25, and increasing it for the future year(s) when those revenues are recognized.

At the November 24, 2025, Finance and Administration Committee meeting, staff discussed the plan for the first implementation of GASB 62 for the fiscal year 2024-25. With an expected earmarked funds balance of approximately $106 million, staff discussed deferring $100 million in revenues to the Rate Stabilization Fund and noted that the implementation would result in a net position change of $22 million rather than $122 million.
1 The Governmental Accounting Standards Board (GASB) is the organization that determines and updates generally accepted accounting principles (GAAP) for government entities.

Item 3
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 3 Agenda Date: 3/11/2026

Page 2 of 3 ends

Basic Financial Statements
The Statements of Net Position present information about assets and liabilities, deferred inflows of resources, and the net position provides information about the nature and amounts of resources and obligations at a specific point in time.

The Statements of Revenues, Expenses, and Changes in Net Position report all of SVCE’s revenue and expenses for the years shown.

The Statement of Cash Flows reports the cash provided and used by operating activities, as well as other sources and uses, such as capital and investing activities.

The Notes to the Basic Financial Statements provide additional details about the Basic Financial Statements.

ANALYSIS & DISCUSSION
The following represents highlights as of September 30, 2025:
• Total assets were $691 million, with $463 million of current assets. Current assets are comprised of $381 million in cash and investments, $23 million in accounts receivable, $31 million in accrued revenue, $26 million in other receivables, and about $2 million in other categories, such as restricted cash. The total of current assets increased during the fiscal year, primarily due to SVCE’s operating surplus.
• Noncurrent assets include investments of $214 million and capital assets net of depreciation and amortization of $14 million.
• Total liabilities were $84 million. Current liabilities of $75 million consist primarily of the cost of electricity delivered to customers that SVCE has not paid as of September 30, 2025. Noncurrent liabilities of $9 million consist mostly of supplier security deposits provided as cash, rather than letters of credit.
• Total operating revenues were $372 million, primarily from the sale of carbon-free electricity.

Operating revenues declined from fiscal year 2024 to 2025 mainly because of a $100 million deferral to the rate stabilization fund under GASB 62, and a secondary factor was a decrease in rates charged to customers, including the impact of one-time summer bill credits. • Investment income of $23 million, reported as nonoperating revenue, results from the funds invested per SVCE’s investment policy and the market rates of returns on the funds from changes in the interest rates.
• Total expenses were $373 million. SVCE’s largest expense is the cost of electricity, at $332 million, inclusive of all power supply portfolio compliance products. This expense fluctuates each year primarily due to market forces that affect the prices paid.

STRATEGIC PLAN
This report supports Strategic Plan Goal 6 – “Maintain healthy financial position; avoid failures in the management of market risk, credit risk, liquidity risk, operational risks, and enterprise risks.”

ALTERNATIVE
There is no alternative to this recommendation, as Board Policy FP1 requires the financial audit.

FISCAL IMPACT
During Fiscal Year 2024-25, SVCE’s change in net position was $22 million, with $100 million in revenues deferred to the rate stabilization fund.

SVCE’s Auditors, Sorren CPAs, P.C., (previously Kosmatka Donnelly & Co., LLP) issued an unqualified (“clean”) opinion on the Agency’s financials for the fiscal year ended September 30, 2025.

Item 3
Agenda Item: 3 Agenda Date: 3/11/2026

Page 3 of 3 ends

ATTACHMENTS

1. Audited Financials for the fiscal year ended September 30, 2025

2. Letter of Significant Deficiencies or Material Weaknesses

3. Audit Report to the Board of Directors & SVCE Representation Letter Item 3
Financial Statements
Years Ended:

September 30, 2025
September 30, 2024
With Report of Independent Auditors
Silicon Valley Clean Energy Authority
Item 3
Attachment 1

TABLE OF CONTENTS
Independent Auditor’s Report ……………………………………………………....... 1 Management’s Discussion and Analysis ……………………………………………... 4 Basic Financial Statements:

Statements of Net Position …………………………………………………… 10
Statements of Revenues, Expenses and Changes in Net Position …................. 11 Statements of Cash Flows …………………………………………………….. 12
Notes to the Basic Financial Statements ……………………………………… 14 Item 3
Attachment 1
Ph: (707) 542-3343 sorren.com
3562 Round Barn Cir, #200, Santa Rosa, CA 95403
Independent Auditor’s Report
To the Board of Directors
Silicon Valley Clean Energy Authority
Opinion
We have audited the accompanying financial statements of Silicon Valley Clean Energy Authority (SVCE), which comprise the statements of net position as of September 30, 2025 and 2024, the related statements of revenue, expenses and changes in net position, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of SVCE as of September 30, 2025 and 2024, and the results of its operations and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of SVCE and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about SVCE’s ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued, including any currently known information that may raise substantial doubt shortly thereafter.

Item 3
Attachment 1
&$Q«ec\
CPAs P.C.

Independent Auditor’s Report (continued)
Auditor’s Responsibilities for the Audits of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audits in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of SVCE’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about SVCE’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters that we identified during the audits.

Item 3
Attachment 1
Independent Auditor's Report (continued)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s discussion and analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Santa Rosa, California
February 23, 2026
Item 3
Attachment 1
<SorfO\ P.O

SILICON VALLEY CLEAN ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
4 The purpose of management’s discussion and analysis (MD&A) is to help stakeholders and other readers understand what the financial statements and notes in this report say about Silicon Valley Clean Energy Authority’s (SVCE) financial health and why it has changed since last year. It contains information drawn from other parts of the report, accompanied by explanations informed by the finance staff’s knowledge of SVCE’s finances. SVCE’s fiscal year runs from October 1 through September 30.

If you have any questions about this report or require additional financial information, please contact SVCE at 333 W. El Camino Real, #330, Sunnyvale, CA 94087 or contact [email protected].

Overview of the Financial Statements
SVCE’s financial report contains basic financial statements:
o The Statements of Net Position include all of SVCE’s assets, liabilities, deferred inflows of resources and net position and provide information about the nature and amounts of resources and obligations at a specific point in time.
o The Statements of Revenues, Expenses, and Changes in Net Position report all of SVCE’s revenue and expenses for the years shown.
o The Statements of Cash Flows report the cash provided and used by operating activities, as well as other sources and uses, such as capital and investing activities. o The notes to the Basic Financial Statements provide additional details and information related to the basic financial statements.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
5 Financial Summary
SVCE’s Net Position
2025 2024 2023
Current assets $ 462,846,816 $ 420,352,985 $ 376,699,458 Noncurrent assets:

Capital assets, net 13,833,351 761,171 1,259,365
Other noncurrent assets 214,086,188 150,052,998 56,864,643 Total noncurrent assets 227,919,539 150,814,169 58,124,008 Total assets 690,766,355 571,167,154 434,823,466
Current liabilities 74,539,649 70,667,155 86,003,663
Noncurrent liabilities 9,093,302 15,303,125 24,283,988
Total liabilities 83,632,951 85,970,280 110,287,651
Deferred inflows of resources 100,000,000 - -
Net position
Net investment in capital assets 12,686,148 358,431 348,144 Restricted 1,242,049 - -
Unrestricted 493,205,207 484,838,443 324,187,671
Total net position $ 507,133,404 $ 485,196,874 $ 324,535,815 As of September 30, 2025, SVCE’s total net position was approximately $507,000,000, an increase of $22,000,000 or 5% as compared to September 30, 2024. Refer to the detailed analysis discussion in the following section for the changes in the various components.

SVCE’s Changes in Net Position
2025 2024 2023
Operating revenues $ 371,682,878 $ 534,489,788 $ 503,675,151 Nonoperating revenues 23,242,267 23,348,067 9,262,831
Total revenues 394,925,145 557,837,855 512,937,982
Operating expenses 372,912,015 397,162,572 401,057,113
Nonoperating expenses 76,600 14,224 28,576
Total expenses 372,988,615 397,176,796 401,085,689
Change in net position $ 21,936,530 $ 160,661,059 $ 111,852,293 The primary reason for the decline in operating revenues from fiscal year 2024 to 2025 was the deferral of $100,000,000 to a rate stabilization fund. The cost of electricity, a component of operating expenses, decreased approximately 8% from fiscal year 2024 to fiscal year 2025 due to changes in volume and market prices. See the following section for a detailed discussion.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
6 Detailed Analysis
Current assets increased from $420,000,000 at the end of fiscal year 2024 to $463,000,000 at the end of fiscal year 2025. This increase was due to operating surpluses as well as the timing in paying operating expenses. Current assets at the end of fiscal year 2025 were primarily comprised of cash and investments of $381,000,000, accounts receivable of $23,000,000, accrued revenue of $31,000,000 and other receivables of $26,000,000.

Capital assets are reported net of depreciation and amortization. Each year, the change is mostly due to capital asset acquisitions, less depreciation and amortization expense. Capital assets include leasehold improvements, furniture and equipment, a vehicle, a lease asset related to SVCE’s office premises and subscription-based information technology arrangements.

Other noncurrent assets include investments of $214,000,000 and $150,000,000 at the end of fiscal years 2025 and 2024, respectively.

The largest component of current liabilities is the cost of electricity delivered to customers that was not yet paid by SVCE by the end of the fiscal year. Current liabilities for the cost of energy fluctuated each year due to changes in payment terms of certain energy products, as well as the prices of those products. Accrued cost of electricity was approximately $67,000,000 and $64,000,000 at the end of fiscal years 2025 and 2024, respectively.

Noncurrent liabilities primarily consist of supplier security deposits held by SVCE as collateral.

Operating revenues increased from fiscal years 2023 to 2024, primarily due to higher rates charged to customers. The largest cause in the decline in operating revenues from fiscal years 2024 to 2025 was the deferral of $100,000,000 to a rate stabilization fund. A secondary factor was a decrease in rates charged to customers, including the impact of various bill credits. SVCE also earns operating revenues from sources other than retail customer sales, including liquidated damages related to electricity suppliers’ noncompliance with contractual provisions which increased by $13,000,000 from 2024 to 2025.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
7 Detailed Analysis (continued)
Investment income is included in nonoperating revenue and increased from 2023 to 2025 due to changes in market interest rates as well as increases in invested assets.

Operating expenses fluctuated each year primarily due to market forces that affect the cost of electricity, SVCE’s largest expense. SVCE procures energy from a variety of sources to reduce market risk and to maintain a balanced renewable power portfolio. The decrease in energy costs each year was mainly the result of reductions in certain market prices.

Significant Capital Asset and Long-Term Financing Activity SVCE does not own assets used for electric generation or distribution. Capital assets consist primarily of office equipment, including computers and furniture, a vehicle, leasehold improvements, a right-to-use lease asset related to office premises, and subscription assets related to information technology software.

Assets obtained through leasing or subscription arrangements, such as office facilities and computer software, are recorded in the Statements of Net Position as capital assets, along with corresponding lease or subscription liabilities representing SVCE’s future payment obligations.

During fiscal year 2025, SVCE purchased an office building for $11,500,000 and acquired subscription assets subject to Governmental Accounting Standards Board (GASB) Statement No. 96 totaling $2,100,000.

Currently Known Facts, Decisions, or Conditions
SVCE serves approximately 96% of all eligible customers in the service area, and that participation rate is expected to remain stable in 2026.

SVCE procures energy in accordance with its Board-approved Energy Risk Management Policy, which aligns customer demand for clean energy with short and long-term purchases of clean energy resources. SVCE complies with state laws and its own targets for renewable and greenhouse gas (GHG) free energy. California’s Renewable Portfolio Standard (RPS) requires load-serving entities, such as SVCE, to supply their retail sales with minimum quantities of eligible renewable energy annually and through long-term commitments of more than ten years. The state has also directed load-serving entities (LSEs) to procure new clean energy and capacity resources to meet grid reliability goals. Senate Bill 100 directs all LSEs to procure 60% of their portfolios from RPS-eligible resources by 2030 and 100% of their retail sales from GHG-free resources by 2045. Senate Bill 1020 sets interim clean targets of 90% and 95% by 2035 and 2040. SVCE’s current policy is to procure 100% of retail sales, adjusted for transmission and distribution losses, from GHG-free resources.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
8 Currently Known Facts, Decisions, or Conditions (continued) SVCE has executed 26 RPS contracts of ten years or more meeting its RPS requirements for long-term procurement. SVCE is on the path to meeting its requirements as ordered by the California Public Utilities Code (CPUC) under the Mid-term Reliability Procurement decision (D.21-06- 035).

In the fiscal year ending September 30, 2025, SVCE’s retail load increased by about 2% from the prior fiscal year to 3.98 Terrawatt-hours (TWhrs). SVCE expects retail load to remain largely similar in 2026. Over the following ten years, SVCE expects the load to grow by about 2% per year. The forecast also incorporates load-modifying effects of increasing electric vehicle adoption and charging, behind-the-meter solar and/or storage (via net energy metering), and energy efficiency. SVCE’s long-term load forecast is driven primarily by the number and types of customers. SVCE’s planning accounts for the expected load growth from the transportation, and building electrification sectors. While SVCE’s current forecast does not include incremental data center loads, SVCE is actively monitoring data center developments in its service territory and expects to include these loads in future forecasts.

In 2019, the Board of Directors approved a Commercial Pricing Policy that allows SVCE to offer innovative customized contract offerings to customers that support long-term customer retention.

SVCE has signed long-term arrangements with two major customers for customized power supply offerings and is working with additional prospective customers.

SVCE expects to continue to provide competitive electric rates. Uncertainties including volatile energy prices and the variability of the power charge indifference adjustment (the “PCIA”) can be barriers to providing stable rates. The PCIA is a fee charged by investor-owned utilities (IOUs) to all customers to ensure indifference between bundled and unbundled customers in paying for assets procured by IOUs on behalf of their customers before unbundled customers departed (for example, to a CCA or Direct Access provider). For SVCE, the PCIA is calculated by determining the market value of PG&E’s portfolio for assets procured in 2017 or prior. SVCE’s customers pay a proportionate share of the net costs incurred for that legacy portfolio. As of January 2026, SVCE has set its discount relative to PG&E’s generation service to 1 percent. SVCE continues to advocate in legislative and regulatory proceedings that impact rates (e.g., procurement mandates, load management standards, and reliability proceedings).

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
9 Currently Known Facts, Decisions, or Conditions (continued) SVCE’s commitment to building sufficient cash reserves has positioned SVCE in a stable position to manage risks, such as those from volatile energy prices and future regulatory and legislative changes. These reserves ensure it can continue serving customers even during times of financial stress, such as when energy costs are highly volatile. Risk event analyses, also known as stress tests in the industry, evaluate how extreme yet plausible scenarios could deplete reserves. These tests provide valuable insight for shaping fiscal year budgets and reserve targets to help mitigate the impact of potential risks. They can also ensure that SVCE remains resilient in different scenarios and help guide the development of the agency’s strategic plan. Risks include market price fluctuations, revenue volatility, counterparty credit and performance, load and generation fluctuations, operational and financial liquidity volatility, and regulatory and legislative changes.

SVCE is committed to investing funds not needed for operations or to meet reserve requirements into our communities through lower rates and customer and community decarbonization programs that disperse funds through rebates, scholarships, services, and grants. As of the Fiscal year ending September 30, 2025, SVCE has approximately $100,000,000 in remaining earmarked funds towards these decarbonization programs. Nearly all of SVCE’s currently planned customer programs have been implemented and are available to customers. SVCE continues to work on marketing and increasing customer adoption, an activity that takes time and will stretch out the disbursement of these funds over many years. Yearly fund disbursements have increased and are expected to continue growing in the coming years, driven by accelerated customer adoption of these programs.

SVCE strongly focuses on building credit capacity through increased cash reserves, compliance with the energy risk management policy and credit guidelines, and favorable energy purchase commitments. SVCE received an “A3” credit rating from Moody’s in the spring of 2025 and an “A” credit rating from S&P Global in May 2023; both agencies affirmed a stable outlook for SVCE.

Item 3
Attachment 1

BASIC FINANCIAL STATEMENTS
Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENTS OF NET POSITION
SEPTEMBER 30, 2025 AND 2024
The accompanying notes are an integral part of these financial statements. 10 2025 2024
Current assets
Cash and cash equivalents - unrestricted $ 314,494,997 $ 261,473,872 Accounts receivable, net of allowance 23,094,020 43,061,445 Accrued revenue 31,097,074 29,579,485
Other receivables 25,973,973 16,224,969
Prepaid expenses 846,007 843,135
Deposits 873,380 709,798
Investments 65,225,316 68,460,281
Cash equivalents - restricted 1,242,049 -
Total current assets 462,846,816 420,352,985
Noncurrent assets
Deposits - 45,130
Investments 214,086,188 150,007,868
Capital assets, net of depreciation and amortization 13,833,351 761,171 Total noncurrent assets 227,919,539 150,814,169
Total assets 690,766,355 571,167,154
Current liabilities
Accrued cost of electricity 66,947,740 64,433,952
Accounts payable 2,540,151 1,770,065
Other accrued liabilities 2,824,329 2,006,073
User taxes and energy surcharges due to other governments 1,695,403 1,679,325 Supplier security deposits - 375,000
Information technology subscription liability 532,026 - Lease liability - 402,740
Total current liabilities 74,539,649 70,667,155
Noncurrent liabilities
Information technology subscription liability 615,177 - Supplier security deposits 8,478,125 15,303,125
Total noncurrent liabilities 9,093,302 15,303,125
Total liabilities 83,632,951 85,970,280
Rate stabilization 100,000,000 -
Net investment in capital assets 12,686,148 358,431
Restricted for security collateral 1,242,049 -
Unrestricted 493,205,207 484,838,443
Total net position $ 507,133,404 $ 485,196,874

NET POSITION
ASSETS

LIABILITIES

DEFERRED INFLOWS OF RESOURCES
Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENTS OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
The accompanying notes are an integral part of these financial statements. 11 2025 2024

OPERATING REVENUES
Electricity sales, net $ 455,071,307 $ 530,672,320
GreenPrime electricity premium 2,433,491 2,498,428
Revenue directed to Rate stabilization Fund (100,000,000) - Liquidated damages 14,178,080 1,319,040
Total operating revenues 371,682,878 534,489,788

OPERATING EXPENSES
Cost of electricity 332,442,316 361,542,484
Contract services 14,950,645 14,235,827
Staff compensation and benefits 14,759,730 12,525,043
Program incentives 6,991,805 5,480,456
Other operating expenses 2,598,177 2,739,490
Depreciation and amortization 1,169,342 639,272
Total operating expenses 372,912,015 397,162,572
Operating income (loss) (1,229,137) 137,327,216

NONOPERATING REVENUES (EXPENSES)
Investment income 23,242,267 23,348,067
Interest expense (76,600) (14,224)
Nonoperating revenues (expenses), net 23,165,667 23,333,843 CHANGE IN NET POSITION 21,936,530 160,661,059
Net position at beginning of year 485,196,874 324,535,815 Net position at end of year $ 507,133,404 $ 485,196,874 Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENTS OF CASH FLOWS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
The accompanying notes are an integral part of these financial statements. 12 2025 2024

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 484,331,956 $ 549,801,243
Receipts of liquidated damages 9,178,080 1,216,500
Receipts of wholesale sales 17,221,635 16,698,525
Receipts of deposits and collateral 10,526,003 34,647,876 Payments to suppliers for electricity (356,382,938) (402,997,262) Payments of security deposits (12,705,000) (18,875,780) Payments for other goods and services (16,761,469) (17,361,411) Payments for program incentives (6,894,510) (5,362,016) Payments for staff compensation (14,294,022) (12,352,507) Payments of taxes and surcharges to other governments (8,361,248) (8,997,384) Net cash provided by operating activities 105,858,487 136,417,784

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments of lease (406,293) (522,705)
Payments of subscription asset (1,045,883) -
Purchases of capital assets (11,892,791) (151,584)
Net cash used by capital and related
financing activities (13,344,967) (674,289)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 20,774,075 22,096,463
Proceeds from investment sales 154,848,339 54,494,824
Purchase of investments (213,872,760) (181,555,415)
Net cash used by investing activities (38,250,346) (104,964,128) Net change in cash and cash equivalents 54,263,174 30,779,367 Cash and cash equivalents at beginning of year 261,473,872 230,694,505 Cash and cash equivalents at end of year $ 315,737,046 $ 261,473,872 Reconciliation to the Statements of Net Position
Cash and cash equivalents - unrestricted $ 314,494,997 $ 261,473,872 Cash equivalents - restricted 1,242,049 -
Total cash and cash equivalents $ 315,737,046 $ 261,473,872 Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

STATEMENTS OF CASH FLOWS (CONTINUED)
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
The accompanying notes are an integral part of these financial statements. 13 2025 2024
Operating income (loss) $ (1,229,137) $ 137,327,216
Adjustments to reconcile operating income (loss) to net cash provided by operating activities
Depreciation and amortization expense 1,169,342 639,272 (Increase) decrease in:

Accounts receivable, net of allowance 19,967,424 6,827,948 Accrued revenue (1,517,589) 852,637
Other receivables (9,126,451) (10,833,628)
Prepaid expenses (219,678) 510,042
Deposits (91,747) 24,892,681
Increase (decrease) in:

Accrued cost of electricity 2,513,788 (14,170,580)
Accounts payable 758,201 (1,077,173)
Other accrued liabilities 818,256 719,969
User taxes and energy surcharges due to other governments 16,078 (47,475) Supplier security deposits (7,200,000) (9,223,125)
Rate stabilization fund 100,000,000 -
Net cash provided by operating activities $ 105,858,487 $ 136,417,784

NONCASH INVESTING ACTIVITIES
Change in fair value of investments $ 1,845,638 $ 1,329,911 Change in interest receivable $ 622,554 $ (78,307)

NONCASH CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of subscription assets $ 2,120,039 $ -

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY OPERATING ACTIVITIES
Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
14 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY
Silicon Valley Clean Energy Authority (SVCE) is a Joint Powers Authority created on March 31, 2016. As of September 30, 2025, parties to its Joint Powers Agreement consist of the following local governments:

Unincorporated areas of Santa Clara County Milpitas
Campbell Monte Sereno
Cupertino Morgan Hill
Gilroy Mountain View
Los Altos Saratoga
Los Altos Hills Sunnyvale
Los Gatos
SVCE is separate from and derives no financial support from its members. SVCE is governed by a Board of Directors whose membership is composed of elected officials representing the member governments.

SVCE was formed to study, promote, conduct, operate, and manage energy and energy-related climate change programs, and to exercise all other necessary and incidental powers to accomplish these objectives. The core function of SVCE is to provide electric service that includes the use of renewable sources under the Community Choice Aggregation Program under California Public Utilities Code Section 366.2.

SVCE began its energy delivery operations in April 2017. Electricity is acquired from electricity suppliers and delivered through existing physical infrastructure and equipment managed by Pacific Gas and Electric Company (PG&E).

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
15 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

BASIS OF ACCOUNTING
SVCE’s financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements.

SVCE’s operations are accounted for as a governmental enterprise fund and are reported using the economic resources measurement focus and the accrual basis of accounting – similar to business enterprises. Accordingly, revenues are recognized when they are earned, and expenses are recognized at the time liabilities are incurred. Enterprise fund-type operating statements present increases (revenues) and decreases (expenses) in total net position. Reported net position is segregated into three categories – net investment in capital assets, restricted, and unrestricted.

When both restricted and unrestricted resources are available for use, SVCE’s policy is to utilize restricted resources first, and then unrestricted resources as they are needed.

CASH AND CASH EQUIVALENTS
For purposes of the Statements of Cash Flows, SVCE defines cash to include cash on hand, demand deposits, money market funds, and short-term investments with an original maturity of three months or less.

ACCRUED REVENUE
Accrued revenue reflects the estimated value of electricity delivered to customers during the reporting period for which invoices had not been issued by the end of the fiscal year.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
16 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

INVESTMENTS
Investments are stated at fair value based on prices listed on a national exchange for debt securities. Certificates of deposits are stated at cost. SVCE intends to hold its securities to maturity. Investments with a maturity of less than one year are shown as current assets in the Statements of Net Position. Investments with a maturity of one year or more are shown as noncurrent assets in the Statements of Net Position.

SVCE’s Investment Policy permits the following types of investments:

U.S. Treasury obligations Medium term notes
U.S. Agency obligations Negotiable certificates of deposits Municipal obligations Asset-backed securities
Deposits at banks Supranational obligations
Local Agency Investment Fund Joint power authority pool Commercial paper Money market funds
Placement Service Deposits

PREPAID EXPENSES
Payments made to vendors that will benefit periods beyond the end of the current fiscal year are recorded as prepaid expenses.

DEPOSITS
Contracts to purchase energy may require SVCE to provide the supplier with advance payments or security deposits. Deposits are generally held for the term of the contract and are classified as current or noncurrent assets depending on the length of time the deposits will be outstanding.

LEASE ASSET AND LEASE LIABILITY
SVCE recognizes an asset and liability when it enters into certain leasing arrangements. The leased asset is amortized over the term of the lease. The lease liability is the present value of payments expected to be paid to the lessor during the lease term. SVCE’s leased asset and liability relate to its office premises.

SUBSCRIPTION-BASED ASSET AND SUBSCRIPTION-BASED LIABILITY SVCE recognizes an asset and liability when it enters into certain subscription-based information technology arrangements (SBITA). The SBITA asset is amortized over the term of the arrangement. The SBITA liability is the present value of payments expected to be paid to the vendors during the term of the arrangements. The liability is categorized as information technology subscription liability in the Statements of Net Position.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
17 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

CAPITAL ASSETS AND DEPRECIATION
SVCE’s policy is to capitalize furniture and equipment valued at over $5,000 that is expected to be in service for over one year. Depreciation is computed according to the straight-line method over estimated useful lives of three years for electronic equipment, five years for automobiles, seven years for furniture, and generally between two to five years for capitalizable software depending on the expected period of benefit. SVCE does not own any electric generation assets.

SUPPLIER SECURITY DEPOSITS
Various energy contracts require the supplier to provide SVCE with a security deposit. These deposits are generally held for the term of the contract or until the completion of certain benchmarks. Deposits are classified as current or noncurrent depending on the length of time the deposits will be held.

RATE STABILIZATION FUND
In fiscal year 2025, Silicon Valley Clean Energy (SVCE) established a Rate Stabilization Fund (RSF), which is reported in accordance with GASB Statement No. 62. The RSF is intended to defer revenues related to Board-approved budgetary amounts for which the related expenditures may occur in fiscal years beyond those in which the revenues are budgeted. The RSF is primarily intended to support customer decarbonization programs but may also be used for other long-term purposes approved by the Board, such as the acquisition of administrative facilities.

Revenues may be deferred to the RSF to the extent that the annual change in net position does not fall below 2 percent of revenues. Deferred amounts are recognized as revenue in future periods to align with the timing of related expenditures or in periods in which the annual change in net position would otherwise fall below the established threshold. Amounts transferred to the RSF are reported as a reduction of operating revenues and as a deferred inflow of resources on the statements of net position. During fiscal year 2025, SVCE transferred $100,000,000 to the RSF.

NET POSITION
Net position is presented in the following components:

Net investment in capital assets: This component of net position consists of capital assets, net of accumulated depreciation and amortization and reduced by liabilities attributable to the acquisition, construction, or improvement of those assets.

Restricted: This component of net position consists of net assets subject to external constraints imposed by creditors (such as through debt covenants), grantors, contributors, laws or regulations of other governments, or by constraints imposed through constitutional provisions or enabling legislation.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
18 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

NET POSITION (CONTINUED)
Unrestricted: This component of net position consists of net position that does not meet the definition of “investment in capital assets” or “restricted.”

OPERATING AND NONOPERATING REVENUE
Operating revenues include energy sales to retail customers, and liquidated damages from suppliers that fail to meet delivery commitments. Investment income and grants that are not earned from the delivery of program activities are considered “nonoperating revenues.”

REVENUE RECOGNITION
SVCE recognizes revenue according to the accrual basis. This includes invoices issued to customers during the reporting period and estimated amount of electricity delivered but not yet billed. Management estimates that a portion of the billed amounts will be uncollectible.

Accordingly, an allowance for uncollectible accounts has been recorded.

OPERATING AND NONOPERATING EXPENSES
Operating expenses include the costs related to providing electricity to customers, delivering program services, and general and administrative functions. Operating expenses are expenses other than nonoperating expenses. Nonoperating expenses include expenses relating to financing.

COST OF ELECTRICITY
During the normal course of business SVCE purchases electrical power from numerous suppliers.

Electricity costs include the cost of energy and capacity arising from bilateral contracts with energy suppliers and for generation credits, load and other charges arising from SVCE’s participation in the California Independent System Operator’s (CAISO) centralized market. The cost of electricity and capacity is recognized as “Cost of Electricity” in the Statements of Revenues, Expenses and Changes in Net Position.

To comply with the State of California’s Renewable Portfolio Standards (RPS) and self-imposed benchmarks, SVCE acquires RPS eligible renewable energy evidenced by Renewable Energy Certificates (Certificates) recognized by the Western Renewable Energy Generation Information System. SVCE obtains Certificates with the intent to retire them and does not sell or build surpluses of Certificates with a profit motive. An expense is recognized at the point that the cost of the Certificate is due and payable to the supplier. SVCE purchases capacity commitments from qualifying electricity generators to comply with the California Energy Commission’s Resource Adequacy (RA) Program. The goals of the RA Program are to provide sufficient resources to CAISO to ensure the safe and reliable operation of the electricity grid in real-time and to provide appropriate incentives for the siting and construction of new resources needed for reliability in the future.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
19 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

STAFFING COMPENSATION AND BENEFITS
SVCE pays employees bi-weekly and fully satisfies its obligation for health benefits and contributions to its defined contribution retirement plan. SVCE is not obligated to provide post-employment healthcare or other fringe benefits and, accordingly, no related liability is recorded in these financial statements.

SVCE provides compensated absences, including paid time off, which are accrued when earned and reported as part of accrued liabilities. The liability includes leave that is attributable to services already rendered, accumulates, and is more likely than not to be used or paid. The liability is measured using the employees’ pay rates as of the financial statement date.

INCOME TAXES
SVCE is a joint powers authority under the provisions of the California Government Code and is not subject to federal or state income or franchise tax.

ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

RECLASSIFICATIONS
Certain amounts in the prior year’s financial statements have been reclassified for comparative purposes to conform to the presentation of the current year’s financial statements. These reclassifications did not result in any change in previously reported net position or change in net position.

2. CASH AND CASH EQUIVALENTS
SVCE maintains its cash in both interest-bearing and non-interest-bearing accounts. SVCE’s deposits are subject to California Government Code Section 16521, which requires banks to provide collateral of 110% of account balances in excess of the $250,000 insurance coverage by the Federal Deposit Insurance Corporation. Accordingly, the amount of risk is not disclosed.

SVCE monitors its risk on an ongoing basis.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
20 3. ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

ACCOUNTS RECEIVABLE
Accounts receivable were as follows as of September 30:
2025 2024
Accounts receivable from customers 26,194,020 $ $ 45,861,445 Allowance for uncollectible accounts (3,100,000) (2,800,000) Net accounts receivable 23,094,020 $ $ 43,061,445
The majority of account collections occur within the first few months following the issuance of customer invoices. SVCE estimates that a portion of the amounts invoiced will not be collected.

SVCE continues collection efforts on accounts in excess of de minimis balances regardless of the age of the account. Although collection success generally decreases with the age of the receivable, SVCE continues to be successful in collecting older accounts.

OTHER RECEIVABLES
Other receivables primarily consist of amounts due from energy counterparties, generally as a result of certain wholesale transactions for energy products.

4. INVESTMENTS
During the years ended September 30, 2025 and 2024, SVCE held investments with original maturities of three months or more. As of September 30, the fair value of investments was as follows:
2025 2024 Level
U.S. Treasury bonds and notes $ 100,819,067 $ 85,082,906 1 Supranational obligations 856,415 862,521 2
U.S. agency obligations 23,458,327 10,539,032 2
Corporate notes 73,885,763 42,194,852 2
Commercial paper 12,141,656 37,181,428 2
Certificate of deposits 13,704,552 9,228,478 2
Bank note 1,267,120 646,226 2
Asset-backed securities 53,178,604 32,732,706 2
Total investments $ 279,311,504 $ 218,468,149

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
21 4. INVESTMENTS (continued)

FAIR VALUE MEASUREMENT
GASB Statement No. 72, Fair Value Measurement and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are significant other observable inputs, and Level 3 inputs are significant unobservable inputs.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. SVCE’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.

CREDIT RISK
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Certain investments, such as obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are considered to have no credit risk.

As of September 30, 2025 and 2024, all SVCE’s investments were rated between A and AAA by at least one nationally recognized statistical ratings organization.

SVCE’s investment policy addresses this risk by limiting investments to those allowed by Section 53601 of the California Government Code.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
22 4. INVESTMENTS (continued)

CUSTODIAL CREDIT RISK
Cash and cash equivalents
Concentration of credit risk is the potential loss associated with SVCE’s investment in a single issuer. SVCE manages this risk by diversifying its portfolio to ensure that reliance on any one issuer does not place an undue burden on SVCE.

As of September 30, 2025 and 2024, none of SVCE’s bank balances are known to be exposed to custodial credit risk.

Investments
Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, SVCE would not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. All of SVCE’s investments are exposed to custodial credit risk. SVCE’s investment policy addresses this risk. All investments owned by SVCE shall be held in safekeeping by a third-party custodian, acting as an agent for SVCE under the terms of a custody agreement.

INTEREST RATE RISK
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Duration is a measure of the price sensitivity of a fixed income portfolio to changes in interest rates. Duration is calculated as the weighted average time to receive a bond’s coupon and principal payments. The longer the duration of a portfolio, the greater its price sensitivity to changes in interest rates. SVCE manages its exposure to declines in fair values by limiting the weighted average maturity of its investments.

Following is a summary of the percentages of investments by maturity date as of September 30, 2025 and 2024:
2025 2024
0 - 6 months 7.45% 11.99%
6 - 12 months 16.05% 19.36%
1 - 2 years 35.97% 28.88%
2 - 3 years 31.89% 31.02%
3 - 4 years 4.15% 5.27%
4 - 5 years 4.49% 3.48%
Over 5 years 0.00% 0.00%
Total 100.00% 100.00%

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
23 4. INVESTMENTS (continued)

CONCENTRATION OF CREDIT RISK
Concentration of credit risk is the risk of loss to the magnitude of SVCE’s investment in a single issuer. SVCE manages the concentration of credit risk by diversifying its portfolio so that reliance on any one issuer will not place an undue burden on SVCE.

As of September 30, 2025 and 2024, SVCE’s investment portfolio was concentrated as follows:

Issuer Investment Type 2025 2024
Federal Home Loan Mortgage U.S. agency implicitly
Corporation (Freddie Mac) guaranteed 8.4% 4.82%
Percentage of Portfolio

5. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2025 was as follows:

Beginning
balance Increases Decreases
Ending
balance
Capital assets not being depreciated
Building - not in service $ $ 7,011,039 $ - 7,011,039 - $ Building - construction in progress 179,952 - 179,952 - Land - 4,490,517 - 4,490,517
Total capital assets not being depreciated - 11,681,508 - 11,681,508 Capital assets being depreciated and amortized:

Furniture and equipment 884,260 6,361 - 890,621
Leasehold improvements 149,974 - - 149,974
Software 433,612 - - 433,612
Subscription based information technology assets 2,120,041 - - 2,120,041 Lease asset 2,287,125 - - 2,287,125
Total capital assets being depreciated and amortized 3,321,359 2,560,014 - 5,881,373 Less accumulated depreciation and amortization:

Furniture, equipment and leasehold improvements (634,188) (147,851) - (782,039) Software (127,533) - - (127,533)
Subscription based information technology assets (532,832) - - (532,832) Lease asset (1,926,000) (361,126) - (2,287,126)
Total accumulated depreciation and amortization (2,560,188) (1,169,342) - (3,729,530) Total capital assets, net of depreciation and amortization 761,171 $ $ 13,072,180 -$ 13,833,351 $

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
24 5. CAPITAL ASSETS (continued)
Capital asset activity for the year ended September 30, 2024 was as follows:

Beginning
balance Increases Decreases
Ending
balance
Capital assets being depreciated and amortized:

Furniture and equipment $ 758,883 $ 129,051 $ (3,674) $ 884,260 Leasehold improvements 134,273 15,701 - 149,974
Lease asset 2,287,125 - - 2,287,125
Total capital assets being depreciated and amortized 3,180,281 144,752 (3,674) 3,321,359 Less accumulated depreciation and amortization:

Furniture, equipment and leasehold improvements (476,416) (157,772) - (634,188) Lease asset (1,444,500) (481,500) - (1,926,000)
Total accumulated depreciation and amortization (1,920,916) (639,272) - (2,560,188) Total capital assets, net of depreciation and amortization 1,259,365 $ $ (494,520) $ (3,674) $ 761,171

6. SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS SVCE has entered into subscription-based information technology arrangements (SBITAs) for computer software that provides programmatic and operational assistance. These arrangements are reported in accordance with GASB Statement No. 96, Subscription-Based Information Technology Arrangements. At the commencement of each subscription term, SVCE recognizes a subscription asset and a corresponding subscription liability.

The subscription assets are amortized on a straight-line basis over the terms of the related subscription agreements.

Certain SBITAs include variable payments that are dependent upon future events or usage; however, such variable payments are not included in the measurement of the subscription liability and are expensed in the period in which the obligation for the payment is incurred.

SVCE has also entered into short-term SBITAs, defined as subscription arrangements with a maximum possible term of twelve months or less. Payments for short-term SBITAs are recognized as expenses during the period in which the services are provided.

As of September 30, 2025, future minimum payments under the arrangements were projected as follows:

Years ending
September 30, Principal Interest Total
2026 532,026 $ $ 55,851 $ 587,877
2027 486,150 21,003 507,153
2028 129,027 3,406 132,433
Total $ 1,147,203 $ 80,260 $ 1,227,463
Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
25 7. DEFINED CONTRIBUTION RETIREMENT PLAN
SVCE provides retirement benefits through the Silicon Valley Clean Energy Authority Public Agency Retirement System Defined Contribution Plan (Plan). The Plan is a defined contribution 401(a) Retirement Plan established to provide benefits at retirement to employees of certain qualified employers admitted by the Plan. The Plan is administered by the Public Agency Retirement System (PARS). As of September 30, 2025 and 2024, SVCE had 68 and 62 plan participants, respectively. SVCE is required to contribute 10% of covered payroll as a match to required employee contributions. SVCE contributed approximately $1,224,000 and $981,000 during the years ended September 30, 2025 and 2024, respectively. Plan provisions and contribution requirements as they apply to SVCE are established and may be amended by the Board of Directors.

8. RISK MANAGEMENT
SVCE is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; and errors and omissions. During the year, SVCE purchased insurance policies from highly rated commercial carriers to mitigate risks that include those associated with umbrella, cyber, auto, theft, general liability, errors and omissions, and property damage. SVCE has general aggregate liability coverage of $2,000,000. In addition, SVCE maintains an umbrella liability policy with coverage of $10,000,000, providing total liability coverage of $11,000,000 per occurrence and $12,000,000 in the annual aggregate.

SVCE maintains risk management policies, procedures and systems that help mitigate credit, liquidity, market, operational, regulatory and other risks arising from participation in the California energy market.

Credit guidelines include a preference for transacting with investment-grade counterparties, evaluating counterparties’ financial condition and assigning credit limits as applicable. These credit limits are established based on risk and return considerations under terms customarily available in the industry. In addition, SVCE enters into netting arrangements whenever possible and, where appropriate, obtains collateral and other performance assurances from counterparties.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
26 9. PURCHASE COMMITMENTS

POWER AND ELECTRIC CAPACITY
In the ordinary course of business, SVCE enters into various power purchase agreements to acquire renewable and other energy and electric capacity. The price and volume of purchased power may be fixed or variable. Variable pricing is generally based on the market price of either natural gas or electricity at the date of delivery. Variable volume is generally associated with contracts to purchase energy from as-available resources such as solar, wind and hydro-electric facilities.

The following table details the obligations to purchase existing energy, renewable, and RA contracts as of September 30, 2025:

Years ending September 30,
2026 221,000,000$
2027 208,000,000
2028 221,000,000
2029 253,000,000
2030 248,000,000
2031-2047 2,054,000,000
Total 3,205,000,000$

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
27 10. JOINT VENTURE
The SVCE participates in a joint powers agreement (JPA) through the California Community Choice Financing Authority (CCCFA). CCCFA was formed to assist its members by undertaking the financing or refinancing of energy prepayments through tax-advantaged bonds on behalf of one or more of the members by issuing or incurring bonds and entering into related contracts with its members. Any debt or liability incurred by CCCFA on behalf of a member to prepay for renewable energy is not a debt or liability of that member. Furthermore, the assets of CCCFA in the form of prepaid energy or reserves held by the respective bond trustees for any prepayment transaction undertaken on behalf of a member do not constitute an asset or reserve of that member.

CCCFA issued the following bonds, excluding original issue premium, which are to be used to finance energy purchases that will be delivered to SVCE. The 2025F bonds were issued subsequent to September 30, 2025. No debt, liability, or obligation of CCCFA is a debt, liability, or obligation of SVCE.

Deal Date issued Amount
2021B September 2021 1,234,720,000 $
2023B January 2023 841,550,000
2024A January 2024 1,101,625,000
2025F November 2025 844,495,000
$ 4,022,390,000
SVCE will purchase energy from CCCFA in the same manner as it purchases energy from other suppliers. SVCE purchased approximately $66,910,000 and $46,622,000 from CCCFA during fiscal years 2025 and 2024, respectively. The outstanding purchase commitments related to these financing facilities are included in Note 10. This amount represents executed energy contracts assigned to CCCFA as of September 30, 2025. Additional contracts may be assigned while the bond is outstanding.

The financial statements of CCCFA are available online at http://www.cccfa.org/key-documents.html.

Item 3
Attachment 1

SILICON VALLEY CLEAN ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2025 AND 2024
28 11. RECENTLY ADOPTED AND FUTURE ACCOUNTING PRONOUNCEMENTS SVCE implemented the following GASB Statements.

No. 102, Certain Risk Disclosures, which requires additional disclosures regarding concentrations and constraints that could impact SVCE’s financial position or results of operations.

Implementation of this statement did not have a material effect on the financial statements.

No. 104, Disclosure of Certain Capital Assets. Implementation of this statement did not have a material effect on the financial statements.

The following GASB Statement is effective for fiscal years beginning after June 15, 2025. SVCE plans to implement it when required.

No. 103, Financial Reporting Model Improvements, which establishes revised guidance for the presentation of financial statements by state and local governments. Management is currently evaluating the impact of this Statement on SVCE’s financial statements.

Item 3
Attachment 1
Ph: (707) 542-3343 sorren.com
3562 Round Barn Cir, #200, Santa Rosa, CA 95403
February 23, 2026
To Management and the Board of Directors
Silicon Valley Clean Energy Authority
333 W. El Camino Real, Suite 330
Sunnyvale, California
In planning and performing our audits of the financial statements of Silicon Valley Clean Energy Authority (SVCE) as of and for the years ended September 30, 2025 and 2024, in accordance with auditing standards generally accepted in the United States of America, we considered SVCE’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of SVCE’s internal control.

Accordingly, we do not express an opinion on the effectiveness of SVCE’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A deficiency in design exists when (a) a control necessary to meet the control objective is missing, or (b) an existing control is not properly designed so that, even if the control operates as designed, the control objective would not be met. A deficiency in operation exists when a properly designed control does not operate as designed or when the person performing the control does not possess the necessary authority or competence to perform the control effectively.

A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, we did not identify any deficiencies in internal control during our audits that we consider to be material weaknesses or significant deficiencies. However, material weaknesses or significant deficiencies may exist that were not identified.

This communication is intended solely for the information and use of management and the Board of Directors and is not intended to be, and should not be, used by anyone other than these specified parties.

Sorren CPAs, P.C.

Item 3
Attachment 2
&$Q«ec\
CPAs P.C.

CPAs, PC
Report to the
Board of Directors
Silicon Valley Clean Energy Authority
For the year ended September 30, 2025
Item 3
Attachment 3
Ph: (707) 542-3343 sorren.com
3562 Round Barn Cir, #200, Santa Rosa, CA 95403
To the Board of Directors
Silicon Valley Clean Energy Authority
333 W El Camino Real, Suite 330
Sunnyvale, CA 94087
We are pleased to present this report related to our audit of the financial statements of Silicon Valley Clean Energy Authority (“SVCE”) as of and for the year ended September 30, 2025. Our report summarizes certain matters required by professional standards to be communicated to you in your oversight responsibility for SVCE’s financial reporting process.

This report is intended solely for the information and use of the Audit Committee, Board of Directors and management of SVCE and is not intended to be and should not be used by anyone other than these specified parties. It will be our pleasure to respond to any questions you have about this report. We appreciate the opportunity to continue to be of service to Silicon Valley Clean Energy Authority.

Santa Rosa, California
February 23, 2026
cc: Amrit Singh, Chief Financial Officer
Item 3
Attachment 3
&$Q«ec\
CPAs P.C.

TABLE OF CONTENTS
Required Communications 1
Significant Accounting Estimates 3
Appendices
Appendix A—Significant Written Communications Between Management and Our Firm • Representation Letter 4
Item 3
Attachment 3
1 REQUIRED COMMUNICATIONS
The following required communications summarize our responsibilities regarding the financial statement audit as well as observations from our audit that are significant and relevant to your responsibility to oversee the financial reporting process.

Our Responsibilities
We described our responsibilities under auditing standards generally accepted in the United States of America have been described to you in our engagement letter dated December 5, 2025. Our audit of the financial statements does not relieve management or you of your responsibilities, which are also described in that letter.

Planned Scope and Timing
We previously issued a separate communication dated December 2, 2025 regarding the planned scope and timing of our audit and identified significant risks.

Accounting Policies and Practices
Preferability of Accounting Policies and Practices
Under accounting principles generally accepted in the United States of America, in certain circumstances, management may select among alternative accounting practices. In our view, in such circumstances, management has selected the preferable accounting practice.

Adoption of, or Change in, Accounting Policies
Management has the ultimate responsibility for the appropriateness of the accounting policies used by SVCE. SVCE did not change any existing significant accounting policies. As disclosed in Note 11, SVCE adopted GASB 102 and 104 which did not have a significant effect on the financial statements.

Significant Accounting Policies
We did not identify any significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant or Unusual Transactions
We did not identify any significant unusual transactions.

Management’s Judgments and Accounting Estimates
Summary information about the process used by management in formulating particularly sensitive accounting estimates and about our conclusions regarding the reasonableness of those estimates is in the attached Summary of Significant Accounting Estimates.

Audit Adjustments and Uncorrected Misstatements
We are not aware of any uncorrected misstatements other than misstatements that are clearly trivial.

Item 3
Attachment 3
2 Observations About the Audit Process
Disagreements With Management
We encountered no disagreements with management over the application of significant accounting principles, the basis for management’s judgments on any significant matters, the scope of the audit or significant disclosures to be included in the financial statements.

Consultations With Other Accountants
We are not aware of any consultations management had with other accountants about accounting or auditing matters.

Significant Issues Discussed With Management
No significant issues arising from the audit were discussed or were the subject of correspondence with management.

Significant Difficulties Encountered in Performing the Audit We did not encounter any significant difficulties in dealing with management during the audit.

Shared Responsibilities for Independence
Auditor independence is a joint responsibility and is managed most effectively when management, audit committees, and audit firms work together in considering compliance with applicable independence rules.

For Sorren CPAs, P.C. (the Firm) to fulfill its professional responsibility to maintain and monitor independence, management, the Board of Directors, and the Firm each play an important role.

Our Responsibilities
• We are required to maintain both independence of mind and in appearance when providing audit and other attestation services. It is our responsibility to ensure that the general requirements for performing nonattest services are adhered to and included in all letters of engagement. • We are required to maintain a system of quality management over compliance with independence rules and firm policies.

SVCE’s Responsibilities
• Timely inform the Firm, before the effective date of transactions or other business changes, of the following:
− New affiliates, directors, or officers.
• Understand and conclude on the permissibility, prior to SVCE’s, officers, directors, or persons in a decision-making capacity, engaging in business relationships with the Firm. • Not entering into relationships resulting in close family members of the Firm covered persons, temporarily or permanently acting as an officer, director, or person in an accounting or financial reporting oversight role at SVCE.

Significant Written Communications Between Management and Our Firm Copies of significant written communications between our firm and the management of SVCE, including the representation letter provided to us by management, are attached as Appendix A.

Item 3
Attachment 3
3 SIGNIFICANT ACCOUNTING ESTIMATES
Accounting estimates are an integral part of the preparation of financial statements and are based upon management’s current judgment. The process used by management encompasses their knowledge and experience about past and current events, and certain assumptions about future events. You may wish to monitor throughout the year the process used to determine and record these accounting estimates. The following summarizes the significant accounting estimates reflected in SVCE’s September 30, 2025 financial statements.

Significant Accounting Estimates
Accrued Revenue
Accounting policy/
Management’s estimation
process
Management’s estimate of accrued revenue includes historical trends and anticipated energy usage.

Basis for our conclusion on
the reasonableness of the
estimate
We tested management’s estimate analytically and determined management’s estimate to be reasonable in relation to the financial statements taken as a whole.

Cost of Electricity
Accounting policy/
Management’s estimation
process
Management’s estimate of accrued cost of electricity includes historical trends and anticipated energy usage.

Basis for our conclusion on
the reasonableness of the
estimate
We tested management’s estimate through subsequent
disbursements and analytical procedures and determined
management’s estimate to be reasonable in relation to the financial statements taken as a whole.

Allowance for Uncollectible Accounts
Accounting policy/
Management’s estimation
process
Management’s estimate of the allowance for uncollectible accounts includes historical collection trends and anticipated future collections.

Basis for our conclusion on
the reasonableness of the
estimate
We evaluated the key factors and assumptions used to develop the estimate in determining that the allowance is reasonable in relation to the financial statements taken as a whole.

Item 3
Attachment 3

APPENDIX A
Significant Written Communications Between Management and Our Firm
Item 3
Attachment 3
333 W El Camino Real, Suite 330 | Sunnyvale, CA 94087 | 1-844-474-SVCE (7823) | SVCleanEnergy.org Campbell | Cupertino | Gilroy | Los Altos | Los Altos Hills | Los Gatos | Milpitas | Monte Sereno | Morgan Hill | Mountain View | Saratoga | Sunnyvale | Unincorporated Santa Clara County February 23, 2026
Sorren CPAs, P.C.
3562 Round Barn Circle, Suite 200
Santa Rosa, CA 95403
This representation letter is provided in connection with your audit of the basic financial statements of Silicon Valley Clean Energy Authority (SVCE) as of and for the years ended September 30, 2025 and 2024 for the purpose of expressing an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).

We confirm, to the best of our knowledge and belief, that as of February 23, 2026:

Financial Statements

1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated December 5, 2025 for the preparation and fair presentation of the financial statements referred to above in accordance with U.S. GAAP.

2. We acknowledge our responsibility for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

3. We acknowledge our responsibility for the design, implementation and maintenance of controls to prevent and detect fraud.

4. The methods, data, and significant assumptions used by us in making accounting estimates and their related disclosures are appropriate to achieve recognition, measurement, or disclosure that is reasonable in the context of U.S. GAAP, and reflect our judgment based on our knowledge and experience about past and current events, and our assumptions about conditions we expect to exist and courses of action we expect to take.

5. Related-party transactions have been recorded in accordance with the economic substance of the transaction and appropriately accounted for and disclosed in accordance with the requirements of U.S.

GAAP.

6. The financial statements properly classify all funds and activities in accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, as amended.

7. All events subsequent to the date of the financial statements, and for which U.S. GAAP requires adjustment or disclosure, have been adjusted or disclosed.

8. The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.

9. Management has followed applicable laws and regulations in adopting, approving and amending budgets.

Docusign Envelope ID: 26C11E65-CF37-4B0E-B433-1BF6AFFFD13B Item 3
Attachment 3
SILICON VALLEY \3/ CLEAN ENERGY
333 W El Camino Real, Suite 330 | Sunnyvale, CA 94087 | 1-844-474-SVCE (7823) | SVCleanEnergy.org Sorren CPAs, P.C.

February 23, 2026

Page 2 ends

10. Risk disclosures associated with deposit and investment securities and derivative transactions are presented in accordance with GASB requirements.

11. Provisions for uncollectible receivables have been properly identified and recorded.

12. Capital assets, including infrastructure, intangible assets, and right of use assets are properly capitalized, reported and, if applicable, depreciated.

13. The government properly separated information in debt disclosures related to direct borrowings and direct placements of debt from other debt and disclosed any unused lines of credit, collateral pledged to secure debt, terms in the debt agreements related to significant default or termination events with finance-related consequences and significant subjective acceleration clauses in accordance with GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements.

14. Components of net position (net investment in capital assets, restricted, and unrestricted) and classifications of fund balance (nonspendable, restricted, committed, assigned, and unassigned) are properly classified and, if applicable, approved.

15. Leases have been properly identified, recorded, and disclosed in accordance with GASB Statement No. 87, Leases.

16. SVCE has disclosed all material subscription-based technology information arrangements (SBITAs) in accordance with GASB Statement No. 96, Subscription-Based Information Technology Arrangements.

17. There are no concentrations or constraints requiring disclosure in accordance with GASB Statement No. 102, Certain Risk Disclosures.

18. We have no direct or indirect legal or moral obligation for any debt of any organization, public or private, or to special assessment bond holders, that is not disclosed in the financial statements.

19. We have complied with all aspects of laws, regulations and provisions of contracts and agreements that would have a material effect on the financial statements in the event of noncompliance. In connection therewith, we specifically represent that we are responsible for determining that we are not subject to the requirements of the Single Audit Act because we have not received, expended or otherwise been the beneficiary of the required amount of federal awards during the period of this audit.

20. We have no knowledge of any uncorrected misstatements in the financial statements.

Information Provided

21. We have provided you with:

February 23, 2026

Page 3 ends

Campbell | Cupertino | Gilroy | Los Altos | Los Altos Hills | Los Gatos | Milpitas | Monte Sereno | Morgan Hill | Mountain View | Saratoga | Sunnyvale | Unincorporated Santa Clara County a. Access to all information of which we are aware that is relevant to the preparation and fair presentation of the basic financial statements such as records, documentation and other matters. b. Additional information that you have requested from us for the purpose of the audit. c. Unrestricted access to persons within SVCE from whom you determined it necessary to obtain audit evidence.
d. Minutes of the meetings of the governing board and committees, or summaries of actions of recent meetings for which minutes have not yet been prepared.

22. All transactions have been recorded in the accounting records and are reflected in the basic financial statements.

23. We have disclosed to you the results of our assessment of risk that the basic financial statements may be materially misstated as a result of fraud.

24. We have no knowledge of allegations of fraud or suspected fraud affecting SVCE’s basic financial statements involving:
a. Management.
b. Employees who have significant roles in internal control. c. Others where the fraud could have a material effect on the basic financial statements.

25. We have no knowledge of any allegations of fraud or suspected fraud affecting SVCE’s basic financial statements received in communications from employees, former employees, analysts, regulators or others.

26. We have no knowledge of noncompliance or suspected noncompliance with laws and regulations.

27. We are not aware of any pending or threatened litigation, claims or assessments; unasserted claims or assessments that are probable of assertion and must be disclosed in accordance with Accounting Standards Codification (ASC) Topic 450, Contingencies; violations or possible violations of laws and regulations; or other matters, including gain or loss contingencies, whose effects should be considered when preparing the financial statements.

28. We have disclosed to you the identity of all of SVCE’s related parties and all the related-party relationships and transactions of which we are aware.

29. We are aware of no significant deficiencies in internal control over financial reporting, including significant deficiencies or material weaknesses, in the design or operation of internal controls that could adversely affect SVCE’s ability to record, process, summarize and report financial data.

February 23, 2026

Page 4 ends

30. There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices.

Required Supplementary Information

31. With respect to the Management’s Discussion and Analysis presented as required by GAAP and the Governmental Accounting Standards Board to supplement the basic financial statements:
a. We acknowledge our responsibility for the presentation of such required supplementary information.
b. We believe such required supplementary information is measured and presented in accordance with guidelines prescribed by U.S. GAAP.
c. The methods of measurement or presentation have not changed from those used in the prior period.

Amrit Singh, Chief Financial Officer
Silicon Valley Clean Energy Authority
Mike Maher, Accountant
Docusign Envelope ID: 26C11E65-CF37-4B0E-B433-1BF6AFFFD13B Item 3
Attachment 3

SILICON VALLEY

CLEAN ENERGY
DocuSigned by:

A88F1DF92E8F467...

DocuSigned by:
87EE84606449460...

Page 1 of 5 ends

Staff Report – Item 4
Item 4: Adopt Resolution Approving Changing SVCE’s Fiscal Year Period from October to September to a Calendar Year Period, Effective January 1, 2027, and Other Necessary Changes to Allow for the Implementation of the New Fiscal Year From: Monica Padilla, CEO
Prepared by: Amrit Singh, CFO
Date: 3/11/2026

RECOMMENDATION
Staff requests that the Silicon Valley Clean Energy (SVCE) Board of Directors (Board) adopt Resolution 2026- 08 (Attachment 1) approving:

1. Changing the current fiscal year (October to September) period to follow the calendar year (January to December), beginning January 1, 2027;

2. Establishing an interim three-month fiscal period (“stub period”), starting October 1, 2026, and ending December 31, 2026, and adopting a schedule to approve the stub fiscal period budget at a September 2026 Board meeting;

3. Authorizing a combined two-period audit covering the three-month stub period along with the first audit of the new fiscal year starting January 1, 2027, and ending December 31, 2027, including waiving any conflicting annual requirements during the transition period from October 1, 2026, to December 31, 2027, in accordance with the Board-approved Policies1; and

4. Amending the Budget Adoption, Control and Reporting Policy FP-02 (“Budget Policy”) as shown in the redlined version in Attachment 2, removing the requirement to provide a budget overview two months before the end of the fiscal year.

EXECUTIVE, AUDIT, AND FINANCE AND ADMINISTRATION COMMITTEES’ RECOMMENDATION Staff presented the proposed changes to the Executive Committee on February 27, 2026, and to the Finance and Administration (F&A) Committee on March 5, 2026. Staff also presented the proposed changes to the Audit Committee, except for those related to the Budget Policy, as such recommendations are outside the Audit Committee's scope. The Committees discussed the proposed changes, including the creation of the stub period and the combined audit of this period with the first calendar-year audit covering a 15-month span, the benefits of the proposal versus the current or July to June period followed by most Community Choice Aggregators (CCA) in California, review of the proposal with SVCE’s external auditor, and adjustments to SVCE’s planning, budgeting, and audit timelines. At the Audit Committee, staff also addressed the impact of the changes on SVCE’s compliance requirements. Staff noted that some workarounds would be necessary for certain obligations, but did not anticipate significant complications. If any issues arise, staff will return to the Board with appropriate recommendations. All the Committees agreed on the benefits of the proposed changes and unanimously recommended that the Board adopt them.
1 For example, Finance Policies include criteria such as the requirement to conduct an annual audit and annually retain or appoint an independent auditor.

Item 4
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 4 Agenda Date: 3/11/2026

Page 2 of 5 ends

BACKGROUND
SVCE’s Joint Powers Agreement (JPA) Section 6.1 authorizes the Board to change the fiscal year by resolution.

The Board has once before changed the fiscal year (period) in September 2016 from the initial 12-month period starting July 1 to June 30 to the current 12-month fiscal period beginning October 1. The change was made to facilitate compliance with loan covenants during SVCE’s startup, which are no longer relevant.

ANALYSIS & DISCUSSION
Calendar Year – Fiscal Year
The primary reason for proposing to adopt a calendar year fiscal period is to closely align the Board’s budget adoption with customer rate changes. Currently, the Board approves SVCE’s annual budget in September, when staff have limited information about Pacific Gas and Electric’s (PG&E) generation rate and Power Charge Indifference Adjustment2 (PCIA) charges for the upcoming year. With the California Public Utilities Commission’s (CPUC) publishing of the market price benchmarks (MPBs) in the fall, and PG&E’s subsequent Energy Resource Recovery Account3 (ERRA) update using the latest MPBs, by around mid-November, staff can significantly improve the forecast for the prompt year’s PG&E generation rates and PCIA charges, both of which significantly impact the estimation of SVCE’s revenue forecast. Because of this late availability of information, for the past few years, the Board has amended the adopted budget in December of each year.

Changing the fiscal year to start in January avoids setting a budget and then having to amend it three months later. Having a calendar fiscal year also provides additional benefits by aligning with the timeline for many external compliance requirements and the internal planning processes.

The figure below illustrates the current, new, and transition period budgeting and planning process and timeline, including reviews and/or approvals by the Finance and Administration Committee, the Audit Committee, and the Executive Committee for budgets, stress test analyses, the strategic plan, and financial audits.
2Public Utility Code Sections 366.1 and 366.2 require the CPUC to make sure that customers leaving PG&E do not burden remaining PG&E customers with costs that were incurred to serve them. To ensure customer indifference, CCAs and Direct Access or departing load customers are required to pay a power charge indifference adjustment (PCIA).
3 ERRA, the Energy Resource Recovery Account, is a balancing account utilized by PG&E to record and recover power costs associated with PG&E’s authorized procurement plan. ERRA proceedings are used to determine fuel and purchased power costs that can be recovered in rates.

Item 4
Agenda Item: 4 Agenda Date: 3/11/2026

Page 3 of 5 ends

Current Planning Process and Timeline
New Planning Process and Timeline
Item 4
January February March May June
Staff: Board: Board:

Audit Committee:

Auaust September November December
Finance andAdmin Committee: Board: Finance and Admin Committee: Board:

Audit Committee:

Kicks off theAudit
Late February or March March May June
Finance andAdmin Committee: Finance andAdmin Committee: Board:

Audit Committee:

September Late November December
Finance andAdmin Committee Board:

Executive Committee (Optional):

Executive Committee:

Adopts the
Adjusted
Budget and
Next year's
Customer Rate
Proposals
• High-level (“Mini”) Budget & Reserves
Update (Revenues and Power Supply
Updated)
Reviews and provides feedback on the Proposed
Annual Budget for the Next Fiscal Year and the
Proposed Strategic Plan
ReceivesAuditedFinancials for the last
fiscal year. (FY24-25)
Receives Audited Financials for the last
fiscal year.

Reviews and Recommendsthat the
BoardAdopt the ProposedAnnual Budget
and Customer Rate Proposals
Adopts the Proposed Budget for
the Next Fiscal Year (FY26-27)
and the Strategic Plan
• Reviews and recommends that the
Board adopt the ProposedAdjusted
Budget (reflecting updates to PCIA
and PG&E Gen Rate Forecasts) and
Customer Rate Proposals
Adopts Mid-Year
Budget
ReceivesAudited
Financials for the
last fiscal year.
• Enterprise Risk
Assessments
(ERM)
• Reviews Proposed Financial Stresslest 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)
Finance andAdmin Committee:
• Reviews Proposed FinancialStress Test
Scenarios
• Reviews and Recommendsthe Mid-Year
Budget Update to the Board
• 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:
• Adopts the Proposed
Budget, Strategic Plan, and
Next Year’s Customer Rate
Proposals
Audit Committee:

Finance and Admin Committee:
1) Reviews Stress lest Analyses
2) Reviews Budget Framework for the
Next Fiscal Year (FY26-27)
Executive Committee
(Optional):

Executive Committee:

Reviews Strategic Plan
Board:
• Reviews Stress lest Analyses
• Optional: Reviews Budget
Framework for Next Fiscal Year
Finance and Admin Committee:
• Reviews StressTest Analyses
• Reviews Budget Framework for the
Next Fiscal Year
Staff:

Enterprise Risk
Assessments
(ERM)
Reviews Strategic Plan • Kicks off theAudit
Agenda Item: 4 Agenda Date: 3/11/2026

Page 4 of 5 ends

Transition Period Planning Process and Timeline

Stub Period and Exception from Annual Audit Requirement in Finance Policy 1 The transition to the proposed new fiscal period requires a three-month stub period from October 2026 to December 2026. Staff proposes that the Board adopt the stub period budget in September 2026 and set December 2026 as the deadline for adopting the annual budget. To avoid costly and time-consuming audits for the stub period, and as is common in such circumstances, staff further recommends that the Board authorize a combined audit covering both the stub period (October 2026 to December 2026) and the first new fiscal period (January 2027 to December 2027). This requires an exception from the Board requirement in Finance Policy 1, which mandates an annual audit.

Budget Adoption, Control and Reporting Policy FP-02 – Budget Policy To support the adoption of a new fiscal year period, staff recommends that the Board eliminate the Budget Policy requirement to provide a budget overview two months before the end of the fiscal year. With the updated budget approval schedule, staff will not receive the latest PCIA and PG&E generation rate information in time to prepare a budget overview, as such data becomes available only from mid-October to mid-November.

STRATEGIC PLAN
By aligning the budget timeline with when customer rates are set, as well as with many external compliance periods and internal planning processes, the proposed changes generally support all goals of the strategic plan.

ALTERNATIVE
Many fiscal periods may be considered, including adopting a fiscal year similar to those of many cities, from July to June. Staff did not consider this alternative as it found no agency benefits.

FISCAL IMPACT
There is no fiscal impact.

Item 4
January 2026 February 2026 March 2026 May 2026 June 2026 Board:

Audit Committee;
Auaust 2026 September 2026 November 2026 December 2026
Finance andAdmin Committee:

Reviews and recommends that the
Board adopt the Proposed Budget
for Calendar Fiscal Year 2027 and
Customer Rate Proposals
Reviews Stress 'fest
Analyses
Optional Reviews
Budget Framework f
Next Fiscal 'fear
• ReceivesAudited Financials for the last
fiscal year (FY24-25)
Enterprise Risk
Assessments
(ERM)
Finance and Admin Committee;
• Reviews Proposed FinancialStress Test
Scenarios
• Reviews and Recommendsthe Mid-\fear
Budget Update to the Board
Finance and Admin Committee:
1) Reviews Stress 'fest Analyses
2) Reviews Budget Framework for the
Next Fiscal ’fear (FY26-27)
Board:
• Adopts the Proposed 3-month
Stub Period Budget
Executive Committee:

Reviews Strategic Plan
Board:
• Adopts the
Proposed Budget
for Calendar
Fiscal Year 2027
Strategic Plan, and
2027 Customer
Rate Proposals
Audit Committee:
• Kicks off theAudit for Fiscal
Year 25-26
Finance andAdmin 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 Mid-
'fear Budget
(FY25-26)
• Receives
Audited
Financials for
the last fiscal
year (FY24-25)
Executive Committee
(Optional):

February 2027
Audit Committee;
Receives AuditedFinancials 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)
Agenda Item: 4 Agenda Date: 3/11/2026

Page 5 of 5 ends

ATTACHMENTS

1. Resolution 2026-08 to Amend the Authority’s Fiscal Year

2. Redlined Budget Adoption, Control and Reporting Policy Item 4
1 RESOLUTION 2026-08

SILICON VALLEY CLEAN ENERGY AUTHORITY
RESOLUTION NO. 2026-08

A RESOLUTION OF THE BOARD OF DIRECTORS OF

THE SILICON VALLEY CLEAN ENERGY AUTHORITY TO AMEND THE
AUTHORITY’S FISCAL YEAR
WHEREAS, Section 6.1 of the Silicon Valley Clean Energy Authority Joint Powers Agreement provides that the Authority’s fiscal year shall be 12 months commencing July 1 and ending June 30, but that the fiscal year may be changed by a resolution of the Board of Directors of the Authority; WHEREAS, by Resolution No. 2016-07, the Board approved changing fiscal year to commence on October 1 and end on September 30, in order to facilitate the repayment of the initial Authority’s loans, those loans are no longer applicable to the Authority;
WHEREAS, in order to align the annual budget process with customer rate changes, which is based on calendar year, the Board desires to amend the Agency’s fiscal year to commence on January 1 and end on December 31.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SILICON

VALLEY CLEAN ENERGY AUTHORITY DOES HEREBY RESOLVE,
DETERMINE, AND ORDER AS FOLLOWS:

Section 1. The Board hereby adopts changing the current fiscal year (October to September) period to follow the calendar year (January to December), beginning January 1, 2027;
Section 2. The Board hereby adopts establishing an interim three-month fiscal period (“stub period”), starting October 1, 2026, and ending December 31, 2026;
Section 3. The Board hereby adopts authorizing a combined two-period audit covering the three-month stub period along with the first audit of the new fiscal year starting January 1, 2027, and ending December 31, 2027, including waiving any conflicting annual requirements during the transition period from October 1, 2026, to December 31, 2027, in accordance with the Board-approved Policies;
Item 4
Attachment 1
2 RESOLUTION 2026-08
Section 4. The Board hereby adopts amending the Budget Adoption, Control and Reporting Policy FP-02 (“Budget Policy”) as shown in the redlined version in Exhibit A, removing the requirement to provide a budget overview two months before the end of the fiscal year.

PASSED AND ADOPTED this 11th day of March 2026, by the following vote:

Andrea Pizano, Board Secretary
Item 4
Attachment 1
Finance Policy 2: Budget Adoption, Control and Reporting I. Purpose
This Budget Adoption, Control and Reporting Policy (“Budget Policy”) provides clarity about budget authority for the Chief Executive Officer (CEO) of Silicon Valley Clean Energy (SVCE) and lays out budget adoption and periodic budget reporting requirements. The policy also allows for sufficient flexibility to address changes in the market price of energy the volatility of the power supply portfolio consistent with SVCE’s Financial Reserves Policy.

II. Scope
All budget requirements.

III. Policy
A. Budget Adoption
• The CEO, in concurrence with the Finance and Administration Committee, shall prepare a budget and budget overview for the Board for the following fiscal year two one months prior to the end of the fiscal year. The proposed budget shall be balanced and in alignment with the proposed Strategic Plan. The budget shall reflect all activities, including operating, capital programs expenditures, revenues and risk. The CEO will maintain standards related to showings for capital expenditures for budgeting purposes. A balanced budget is one in which expenditures are matched by revenues and recommended changes to reserves. • The CEO shall submit a recommended budget document for adoption to the Board of Directors for approval by Resolution in the month following the proposed budget submittal. When approved by the Board, the budget shall be considered adopted and appropriated at the level it is controlled by the CEO, discussed below.
• In the event that the Board does not adopt the proposed budget by the end of the fiscal year, the Board of Directors may adopt a continuing appropriations resolution until such time as a budget is adopted. A continuing appropriations resolution would provide that payments for services performed on behalf of the Agency and authorization of Item 4

EXHIBIT A
Attachment 1
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Effective on 0312/11/20264
awarded contracts would continue until such time as the budget is adopted.
• Staff will prepare a five-year financial forecast as part of the budget process projecting revenues and expenditures for all operating funds and planned capital projects in alignment with the Strategic Plan. • The budget document will also contain the following, at minimum, a schedule showing revenues, expenses, and changes to financial reserves. The first year of the five-year horizon is the budget to be considered and formally adopted by the Board by Resolution. The final four years are shown for planning purposes and may be shown at more summary levels.
• The first-year proposed budget shall further show:
o Expenditures by expense type/category across the
organization;
o Projected revenues;
o Organization chart(s) showing all proposed budgeted positions in the organization;
o A current salary schedule for job classifications to be in effect for the proposed fiscal year (Salaries may be adjusted by the CEO in the fiscal year, with salary changes being reported to the Board).

B. Budget Control
• After adoption, the budget shall be controlled by the CEO at the total annual expenditure level for the SVCE organization, which includes power purchases, employee costs, contract and professional services, capital improvements, debt service, and all other costs. Customer Generation Rates will be set per the Board approved budget for the corresponding fiscal year or as designated by the Board after establishing the budget. The total budget may be amended by the Board during the year by Resolution.
• The CEO may institute separate budget procedures internally that give the CEO further controls at the department and/or expenditure category level if the CEO so desires.

Item 4
Attachment 1
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C. Budget Reporting
• A budget-to-actual status update report shall be presented to the Board on a quarterly basis.

D. Authority to Flexibly Staff and Over hire Budgeted Positions • Under the Human Resources Policy 01: Personnel and Reimbursement, the CEO is authorized to hire in excess of 10% of the number of positions shown in the annual budget without prior approval of the Board. • In no case shall positions be added or salaries be adjusted during the year that cause the total annual budget to be exceeded in total by fiscal year-end without prior Board approval by Resolution.

E. Power/Energy Purchases Contingency
• The nature of the energy power markets is one of rapid changes in prices and market volatility. The ability to quickly adapt to those changes is important for maintaining consistent power delivery to customers.

Therefore, the CEO is granted authority to overspend the total annual budget for energy power supply purchases by the lesser of 10% of the annual power supply budget, or $30 million, without Board approval provided the over expenditure is due to higher energy costs or greater customer demand. Overspending for these purposes may require use of reserves and the conditions on use of reserves as stated in the Financial Reserves Policy apply, where reserves cannot be drawn down more than 10% of the year’s budgeted cost of power supply or $30 million, whichever is less, nor below the baseline Minimum Operating Reserve level without Board approval.

IV. Policy Compliance
A. Violations
• Any known violations of this policy must be immediately reported to the Finance and Administration Committee, CEO, and General Counsel. • Any employee found to have violated this policy may be subject to disciplinary action, up to and including termination of employment.

Item 4
Attachment 1
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B. Cadence for Review
• This Policy will be reviewed at least every five (5) years.

Item 4
Attachment 1
SILICON VALLEY <3/ CLEAN ENERGY
Attachment 2: Budget Adoption, Control, and Reporting Policy FP-02 Redlined Version
Item 4
Attachment 2

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Finance Policy 2: Budget Adoption, Control and Reporting I. Purpose
This Budget Adoption, Control and Reporting Policy (“Budget Policy”) provides clarity about budget authority for the Chief Executive Officer (CEO) of Silicon Valley Clean Energy (SVCE) and lays out budget adoption and periodic budget reporting requirements. The policy also allows for sufficient flexibility to address changes in the market price of energy the volatility of the power supply portfolio consistent with SVCE’s Financial Reserves Policy.

II. Scope
All budget requirements.

III. Policy
A. Budget Adoption
• The CEO, in concurrence with the Finance and Administration Committee, shall prepare a budget and budget overview for the Board for the following fiscal year two one months prior to the end of the fiscal year. The proposed budget shall be balanced and in alignment with the proposed Strategic Plan. The budget shall reflect all activities, including operating, capital programs expenditures, revenues and risk. The CEO will maintain standards related to showings for capital expenditures for budgeting purposes. A balanced budget is one in which expenditures are matched by revenues and recommended changes to reserves. • The CEO shall submit a recommended budget document for adoption to the Board of Directors for approval by Resolution in the month following the proposed budget submittal. When approved by the Board, the budget shall be considered adopted and appropriated at the level it is controlled by the CEO, discussed below.
• In the event that the Board does not adopt the proposed budget by the end of the fiscal year, the Board of Directors may adopt a continuing appropriations resolution until such time as a budget is adopted. A Item 4
Attachment 2
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continuing appropriations resolution would provide that payments for services performed on behalf of the Agency and authorization of awarded contracts would continue until such time as the budget is adopted.
• Staff will prepare a five-year financial forecast as part of the budget process projecting revenues and expenditures for all operating funds and planned capital projects in alignment with the Strategic Plan. • The budget document will also contain the following, at minimum, a schedule showing revenues, expenses, and changes to financial reserves. The first year of the five-year horizon is the budget to be considered and formally adopted by the Board by Resolution. The final four years are shown for planning purposes and may be shown at more summary levels.
• The first-year proposed budget shall further show:
o Expenditures by expense type/category across the
organization;
o Projected revenues;
o Organization chart(s) showing all proposed budgeted positions in the organization;
o A current salary schedule for job classifications to be in effect for the proposed fiscal year (Salaries may be adjusted by the CEO in the fiscal year, with salary changes being reported to the Board).

Item 4
Attachment 2
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• The CEO may institute separate budget procedures internally that give the CEO further controls at the department and/or expenditure category level if the CEO so desires.

C. Budget Reporting
• A budget-to-actual status update report shall be presented to the Board on a quarterly basis.

IV. Policy Compliance
A. Violations
Item 4
Attachment 2
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• Any known violations of this policy must be immediately reported to the Finance and Administration Committee, CEO, and General Counsel. • Any employee found to have violated this policy may be subject to disciplinary action, up to and including termination of employment.

B. Cadence for Review
• This Policy will be reviewed at least every five (5) years.

Item 4
Attachment 2
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Staff Report – Item 5
Item 5: Adopt Resolution Approving the 2025-2026 Mid-Year Adjusted Operating Budget From: Monica Padilla, CEO
Prepared by: Amrit Singh, CFO
Scott Wrigglesworth, Director of Risk and Analytics
Karen Chang, Manager of Finance
Date: 3/11/2026

RECOMMENDATION
Staff recommends that the Silicon Valley Clean Energy (SVCE) Board of Directors (Board) adopt Resolution 2026-09 (Attachment 1), approving the 2025-26 Mid-year (MY26) 1 Adjusted Operating Budget that projects
withdrawing $12.5 million from the reserves.

FINANCE AND ADMINISTRATION COMMITTEE RECOMMENDATION
The Finance and Administration Committee (F&A Committee) reviewed the proposed budget on March 5, 2026. They engaged in a thorough discussion with staff to understand the reasons for the changes to the budget from the December 2025 adopted budget. The committee also examined the 5-year financial forecast and asked staff clarifying questions to better understand the forecast and its implications for SVCE. Regarding the implications of the 5-year forecast, staff also directed some of the committee's questions to the Financial Levers agenda item, which was presented and discussed with the committee after the budget presentation.

The F&A Committee unanimously recommended that the Board of Directors approve the proposed MY26 budget.

BACKGROUND
The SVCE Board initially adopted the FY26 annual budget at the September 10, 2025, meeting. The budget was based on staff’s projections of the 2026 Power Charge Indifference Adjustment2 (PCIA) charges and Pacific Gas and Electric (PG&E) generation rates. Staff committed to updating the budget in December 2025, when it would include much better market and regulatory information regarding the 2026 PCIA and PG&E’s generation rates.

At the December 2025 Board of Directors meeting, staff presented an updated FY26 budget along with a five-year outlook, indicating that the financial trend staff has been discussing with the Board remains negative.

Staff also noted that if SVCE continues to operate under the “business as usual” scenario in 2026, where all customer rates are set to be competitive with PG&E rates, the delay in charging premiums to meet SVCE’s financial targets over five years—specifically, charging above PG&E rates for one year—would not be significant. Staff demonstrated that delaying premium charges by one year would increase the 2027 premium by about 1%, or roughly $0.53 per month for residential customers. This delay in changing SVCE’s pricing 1 The fiscal year 2025-26 started on October 1, 2025, and ends on September 30, 2026. 2 Public Utility Code Sections 366.1 and 366.2 require the CPUC to make sure that customers leaving PG&E do not burden remaining PG&E customers with costs that were incurred to serve them. To ensure customer indifference, CCAs and Direct Access or departing load customers are required to pay a power charge indifference adjustment (PCIA).

Item 5
SILICON VALLEY \3/ CLEAN ENERGY
Agenda Item: 5 Agenda Date: 3/11/2026

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methodology would also allow staff to finalize the financial levers analysis and collaborate with the Finance and Administration and Executive Committees, as well as the Board, to design any necessary adjustments to SVCE’s products, services, and rates. The financial analysis would enable SVCE to carefully assess changes to ensure they continue to support the agency’s mission and balance customer value with SVCE’s financial stability. Staff also noted that the financial reserves built for such financial outcomes do not place SVCE in immediate risk, especially over the next two years, allowing time to complete the financial levers analysis and avoid abrupt changes. The Board approved the adjusted budget that provided a 1% general customer discount compared to comparable PG&E generation rates and a $12 monthly bill credit to each low-income (CARE/FERA) customer starting in 2026 and a reduction in the GreenPrime premium to $0.0074 per kilowatt hour.

ANALYSIS & DISCUSSION
At midyear, the updated budget accounts for energy supply expenses using the latest market price data and portfolio positions, revenue estimates reflecting the final rate changes that went into effect in January 2026, and other minor adjustments, as well as projected increases/decreases in operating expenses and investment income. The MY26 Adjusted Operating Budget is balanced and presents SVCE in a stable financial condition (Attachment 2).

The MY26 budget projects a withdrawal of $12.5 million from reserves, a decrease of $48 million from the $60.5 million withdrawal in the December 2025 adjusted FY26 Budget. This seemingly positive outcome is mainly due to $32 million reduction in power supply costs and $20 million increase in revenues, driven by a favorable regulatory decision3that resulted in higher PG&E generation rates. Although falling prices for power supply resources, including energy, Resource Adequacy (RA), Renewable Portfolio Standard (RPS) prices, and Greenhouse Gas-free energy and attributes (GHG-free), improve FY26 projections, these gains are projected to be more than offset by margin deterioration in fiscal year 2026-2027 (FY27). Now that the 2026 PCIA and PG&E generation rates are set, any differences between actual power supply costs and the estimates used to set the 2026 rates will be trued-up during the next rate-setting cycle, further reducing SVCE’s FY27 margins.

The current projections forecast $131 million withdrawal from reserves for FY27, an increase of $50 million from the December 2025 forecast.
3 PG&E assigned zero value to the battery energy storage systems from the PCIA portfolio under the new slice of day resource adequacy market, which the CPUC rejected and assigned values in line with the methodology used by the Southern California Edison (SCE) utility.

Item 5
Agenda Item: 5 Agenda Date: 3/11/2026

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The table below compares the proposed MY26 adjusted operating budget (second column) with the adjusted budget adopted in December 2025 (first column):

The negative outlook in the 5-year financial forecast, which staff began projecting during last year’s mid-year budget update, has worsened as power supply resource prices (energy, RA, RPS, and GHG-free) decline. The 5-year financial outlook presented by staff at the December 2025 Board meeting showed 200 days of cash on hand (DCOH) at the end of five years (FY 2029-30), but this has now decreased to 142. The DCOH projections are based on the additional operating liquidity assumptions discussed during the December 2025 budget update. The additional liquidity scenario adjusts the forecasts to reflect a more realistic expectation of some delay in customer adoption of decarbonization programs, leaving an “earmarked” funds balance of $25 million at the end of the 5-year forecast period. It also reduces annual operating expenses by $6.5 million to remove amounts budgeted for contingencies. The current 5-year financial forecast is shown in Attachment 3, and the projected DCOH under the additional liquidity scenario is displayed below. The lighter shade of blue bars, with higher values, include allocated but unspent earmarked funds, mainly decarbonization program dollars, while the darker shade of blue bars, with lower values, exclude these earmarked funds. Because the Board can always redirect allocated but unspent funds, SVCE’s financial liquidity is assessed accordingly, using the higher values.

Item 5
($ in thousands)
FY25-26

ADJUSTED
BUDGET
FY25-26

MID-YEAR

ADJUSTED
BUDGET
Changes to Reserves
Contribution*
$ %
Energy Revenues 319,324 335,478 16,155 5.1%
Power Supply Expense (344,221) (311,996) 32,225 9.4%
Operating Margin (24,897) 23,482 ( 48,379 ) 194.3%
Operating Expenses (43,193) (42,684) 509 1.2%
Non-Operating Revenue (Expense) 20,854 20,106 (748) -3.6% Annual Transfers and Other Expenses
Capital Outlay (512) (611) (99) -19.3%
Transfer to Building Fund (5,500) (5,500) 0 0.0%
Program Fund (7,251) (7,251) 0 0.0%

TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER XI3.2631 X13.3621 X991 -0.7%
BALANCE AVAILABLE FOR RESERVES (60,500) (12,458) 48,042 79.4% * Positive values (increases)in contribution to reserves can result from increases in Revenues, as well as decreases in Expenses. Negative values (decreases) in contribution to reserves can result from decreases in Revenues, as well as increases in Expenses.

Agenda Item: 5 Agenda Date: 3/11/2026

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Although reserves are lower than those in the December 2025 budget update, they remain above 350 DCOH over the two-year forecast period. The two-year outlook is especially important because balancing account true-ups used in setting PCIA and PG&E rates settle the current year’s movement in power supply resource prices the following year; therefore, one year’s financial results cannot be relied upon. For example, as mentioned earlier, the gains in the FY 26 budget due to lower power supply resource prices will be more than offset in next year’s financials by reduced revenues when PCIA and PG&E generation rates are trued up.

Staff will continue the financial analyses work started with the Board of Directors, the Finance and Administration, and the Executive Committees, and will also perform additional annual financial stress test analyses. Staff plans to present the stress test results, along with a review of SVCE’s financial reserve targets, and budget contingency fund needed to cover power supply cost uncertainty to the Finance and Administration Committee in May and to the Board of Directors in June.

The discussion below provides additional information on the proposed MY 26 Adjusted budget.

Energy Revenues
Net energy revenues are slightly higher by about $16.2 million from the December 2025 adjusted budget. The California Public Utilities Commission’s (CPUC) final adopted PG&E generation rates improved overall SVCE’s margins by about 11% (to 7.82 ¢/kWh) or about $20 million, partially offset by slightly higher final PCIA rate and adjustments to other SVCE revenues that vary with changes in power supply resource prices. 531
367
288
217
142
452
308
245
190
123
0 100
200
300
400
500
600
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 DCOH Days Cash on Hand (DCOH)
DCOH (Inc. Unspent Earmarked Funds)* DCOH (Excl. Unspent Earmarked Funds)* Max Reserves (500 DCOH) Target Reserves (350 DCOH)
Min Reserves (120 DCOH)
* Earmarked funds are unspent SVCE Program Funds and Building Funds.

Item 5
Agenda Item: 5 Agenda Date: 3/11/2026

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Power Supply Expenses
Power supply expenses have decreased significantly by about $32 million since the December budget update.

The reduction primarily results from much lower market prices for meeting SVCE’s load obligations.

The market prices, including actual/observed prices for October 2025 to December 2025 and forward prices for the remaining forecast period, for energy and RPS, have declined significantly. Since the December 2025 adjusted budget update, FY26 energy prices have dropped about 18%, and the 5-year average energy prices have decreased by roughly 11%. FY26 RPS prices fell by approximately 26%, and the 5-year average declined by about 7%. The decline in RPS prices does not lower power supply costs for FY26 as it does for the rest of the 5-year forecast period because SVCE has already secured its RPS needs for the current fiscal year. RA prices for FY26 decreased 3%, with the 5-year average dropping about 11%.

Operating Expenses
Operating expenses are approximately $0.5 million lower than the December 2025 adjusted budget. This decrease mainly results from reductions in vendor and consultant fees, leading to lower costs in Professional Services and Marketing & Promotions, along with reduced rental rates for the current office and lower property taxes for the future office location.

There are no changes to the Data Management, PG&E Fees, and Salaries and Retirement operating expenses relative to the December 2025 adjusted budget.

The Professional Services expense has decreased by approximately $257,000. The favorable variance results from active vendor management negotiation and fee optimization, enabling staff to obtain more competitive market rates from various vendors and software providers.

The Marketing & Communications expense has decreased by approximately $160,000, also due to strategic vendor management and improved forecasting and alignment on resource timing compared to initial expectations.

The General and Administrative expenses decreased by approximately $95,000, mainly due to two factors.

First, property taxes for the new office building were lowered after a successful exemption filing with the City of Sunnyvale in late 2025; this exemption will result in ongoing annual property tax savings. Second, a new lease agreement with the current landlord for the office led to reduced rental rates.

Item 5
PG&E Gen Rate:
• Final PG&E Cost True UP
• RA Modeling Adjustment
2026 Rate*
December
Adjusted Budget
2026 Rate**
' Source: PG&E 2026 Average Rates, effective January 1, 2026(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 (0.06 c/kWh) Agenda Item: 5 Agenda Date: 3/11/2026

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Non-Operating Revenues
Investment income is expected to decline by $610,000 due to lower interest rates and increased funds that are collateralized to support the letter of credit provided to PG&E per the CPUC Financial Security Requirement (FSR) for being the Provider of Last Resort (POLR)4for SVCE customers, which decreases the amount SVCE can invest.

Non-Operating Expenses
Financing expense has increased by $138,000. This is due to the latest Provider of Last Resort (POLR) Financial Security Forecast (FSR) forecast, which predicts a rise in POLR FSR posting requirements in the coming years, thereby increasing the estimated collateral posting fees charged by financial institutions.

Programs Budget
SVCE will continue incorporating projected Decarbonization Programs spending over the 5-year forecast into the reserve balance projections. For the current fiscal year, Program spending is projected to be $28.6 million, with an additional spend of $0.96 million from the Customer Relief and Community Resilience Program (CRCR) Fund, $1.7 million from the Nuclear Program Fund, $0.5 million in the E-Elec (all-electric) Fund, the all-electric rate discounts, and $0.45 million from the Handford Program Fund.

Capital Outlay
Capital Outlay has increased by $99,000. This change is due to updated projections for furniture expenses related to the new office building. Previously, the calculations were high-level estimates based on limited data and scope available at the time. Recently, the construction project management team provided more accurate estimates based on the latest available cost data. Also, Attachment 4 provides an updated Capitol Projects report.

STRATEGIC PLAN
The recommendation supports all of the Board's adopted strategic plan goals. Specifically, this budget update supports SVCE Strategic Plan Goal 6 – “Maintain healthy financial position; avoid failures in the management of market risk, credit risk, liquidity risk, operational risks, and enterprise risks.”

ALTERNATIVE
Staff is open to feedback and suggestions from the Board. At a strategic level, the Board can change the discount to PG&E, reduce the power supply portfolio's carbon-free and/or renewable energy percentages, and cut expenditures on the Decarbonization Programs.

Staff does not recommend any specific reductions given a sufficient projected reserve balance that maintains SVCE’s stable financial condition.

FISCAL IMPACT
The MY 2026 Adjusted Operating Budget includes $335.5 million in revenues and $347.9 million in expenses, non-operating revenues, and transfers, resulting in a withdrawal from reserves of $12.5 million, an improvement in net position of approximately $48 million from the December 2025 adjusted budget.

ATTACHMENT

1. Resolution 2026-09 Approving the Mid-Year 2025-2026 Adjusted Budget for SVCE

2. MY 2025-26 Adjusted Operating Budget

3. Five-Year Forecast

4. Capital Projects Report
4 Provider of Last Resort refers to the obligation of a load serving entity, such as SVCE, to ensure continuous electricity service to customers in the event the LSE fails. The POLR for SVCE customers is PG&E. The CPUC requires LSEs to post financial security such as a letter of credit to the POLR to ensure sufficient funds for POLR to undertake LSE’s customers in the event of their failure.

Item 5
1 RESOLUTION 2026-09

SILICON VALLEY CLEAN ENERGY AUTHORITY
RESOLUTION NO. 2026-09

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SILICON VALLEY CLEAN ENERGY AUTHORITY TO APPROVE THE MID-YEAR 2025-2026 ADJUSTED

BUDGET FOR SILICON VALLEY CLEAN ENERGY
WHEREAS, the Silicon Valley Clean Energy Authority (“Authority”) was formed on March 31, 2016, pursuant to a Joint Powers Agreement to study, promote, develop, conduct, operate, and manage energy programs in Santa Clara County; and WHEREAS, the Authority operates on a fiscal year budget cycle from October 1st through September 30th;
WHEREAS, a mid-year adjusted version of the Authority’s budget for each fiscal year is generally presented to the Board of Directors at the midpoint of the fiscal year in March;
WHEREAS, staff has incorporated direction from recent Board and Finance and Administration Committee discussions around rates, programs, and customer relief and has prepared an adjusted budget, set forth in Exhibit A (the “Adjusted Budget”); NOW THEREFORE, the Board of Directors of the Silicon Valley Clean Energy Authority does hereby resolve that:

1. The foregoing recitals are true and correct.

2. The Board of Directors hereby approves and adopts the Mid-Year Adjusted Budget, as set forth in Exhibit A, as the Authority’s fiscal year 2025-2026 budget.

PASSED AND ADOPTED this 11th day of March 2026, by the following vote:

JURISDICTION NAME AYE NO ABSTAIN ABSENT
City of Campbell Director Scozzola
City of Cupertino Director Wang
City of Gilroy Director Hilton
City of Los Altos Director Meadows
Town of Los Altos
Hills
Director Tyson
Town of Los
Gatos
Director Rennie
City of Milpitas Director Barbadillo
City of Monte
Sereno
Director Mekechuk
Item 5
Attachment 1
2 RESOLUTION 2026-09
City of Morgan Hill Director Martinez Beltran
City of Mountain
View
Director Showalter
County of Santa
Clara
Director Lee
City of Saratoga Director Page
City of Sunnyvale Director Klein
Chair
ATTEST:

Andrea Pizano, Board Secretary
Item 5
Attachment 1
Exhibit A: MY 2025-26 Adjusted Operating Budget

SILICON VALLEY CLEAN ENERGY
FY25-26 OPERATING BUDGET
($ in thousands)
FY25-26

MID-YEAR

ADJUSTED

DESCRIPTION BUDGET

ENERGY REVENUES
Energy Sales 335,858
Green Prime 2,439
CARE/FERA Bill Credit (4,163)
Other Income 1,344
TOTAL ENERGY REVENUES 335,478

ENERGY EXPENSES
Power Supply (311,996)
OPERATING MARGIN 23,482

OPERATING EXPENSES
Data Management (3,764)
PG&E Fees (1,569)
Salaries and Retirement (18,870)
Professional Services (10,645)
Marketing & Promotions (2,189)
General & Administrative (5,647)
TOTAL OPERATING EXPENSES (42,684)
OPERATING INCOME (LOSS) (19,202)

NON-OPERATING REVENUES
Interest Income 20,272
TOTAL NON-OPERATING REVENUES 20,272

NON-OPERATING EXPENSES
Financing (166)
TOTAL NON-OPERATING EXPENSES (166)
TOTAL NON-OPERATING INCOME (EXPENSES) 20,106
CHANGE IN NET POSITION 904

CAPITAL EXPENDITURES, INTERFUND

TRANSFERS & OTHER
Capital Outlay (611)
Transfer to Building Fund (5,500)
Program Fund (7,251)

TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER (13,362)
BALANCE AVAILABLE FOR RESERVES (12,458)
Item 5
Attachment 1
Attachment 2: MY 2025-26 Adjusted Operating Budget

SILICON VALLEY CLEAN ENERGY
FY25-26 OPERATING BUDGET
($ in thousands)
FY25-26

MID-YEAR

ADJUSTED

DESCRIPTION BUDGET

ENERGY REVENUES
Energy Sales 335,858
Green Prime 2,439
CARE/FERA Bill Credit (4,163)
Other Income 1,344
TOTAL ENERGY REVENUES 335,478

ENERGY EXPENSES
Power Supply (311,996)
OPERATING MARGIN 23,482

NON-OPERATING REVENUES
Interest Income 20,272
TOTAL NON-OPERATING REVENUES 20,272

NON-OPERATING EXPENSES
Financing (166)
TOTAL NON-OPERATING EXPENSES (166)
TOTAL NON-OPERATING INCOME (EXPENSES) 20,106
CHANGE IN NET POSITION 904

CAPITAL EXPENDITURES, INTERFUND

TRANSFERS & OTHER
Capital Outlay (611)
Transfer to Building Fund (5,500)
Program Fund (7,251)

TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER (13,362)
BALANCE AVAILABLE FOR RESERVES (12,458)
Item 5
Attachment 2
Attachment 3: MY 2025-26 Adjusted Operating Budget – 5 Year View ($ 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 $335,858 $238,142 $317,067 $367,680 $390,693 GreenPrime Electricity Premium $2,439 $2,510 $2,336 $2,309 $2,361 Reduction in Revenue1
$(4,163) $(928) $0 $0 $0
Other Income $1,344 $0 $0 $0 $0
Total Operating Revenues $335,478 $239,724 $319,403 $369,989 $393,054 Operating Expense
Power Supply $(311,996) $(336,336) $(356,970) $(378,051) $(414,042) Operating Margin $23,482 $(96,611) $(37,566) $(8,062) $(20,987) 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 $(10,645) $(11,177) $(11,736) $(12,323) $(12,939) Marketing & Promotions $(2,189) $(2,299) $(2,414) $(2,534) $(2,661) General and Administration $(5,647) $(5,537) $(5,814) $(6,104) $(6,410) Transfers to Programs Fund $(7,251) $(4,794) $(6,388) $(7,400) $(7,861) Total Operating Expenses $(361,931) $(385,555) $(410,004) $(434,430) $(473,331) Operating Income $(26,453) $(145,831) $(90,601) $(64,441) $(80,276) Nonoperating Revenue
Investment Income $20,272 $15,050 $10,070 $7,568 $5,191 Grant Income $0 $0 $0 $0 $0
Total Non-Operating Revenues $20,272 $15,050 $10,070 $7,568 $5,191 Nonoperating Expense
Financing Cost $(166) $(442) $(788) $(186) $(172)
Capital Outlay $(611) $(50) $(50) $(50) $(50)
Interest Expense $0 $0 $0 $0 $0
Total Non-Operating Expense $(777) $(492) $(838) $(236) $(222) Non-Operating Income $19,495 $14,558 $9,232 $7,332 $4,969 Change in Net Position/Available for Reserves $(12,458) $(131,273) $(81,369) $(57,109) $(75,308) Begin, Net Financial Position $585,328 $539,673 $388,466 $290,563 $218,250 Adjustment for Program Expenditure and Building Fund2
$(33,198) $(19,934) $(16,534) $(15,204) $(7,281)
End, Net Financial Position $539,673 $388,466 $290,563 $218,250 $135,662

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 $4.2 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
Attachment 3
Description Account Date Cost Life (months) Depreciation Operating Cost/Revenue Impact Effect on
Operations/
Reliability
Consequence of not funding the Capital
Project Source of Funding On-going Impact to Operational Budget January 2025 - Stage 1 Initial Roof Inspection - Building finalized in February 2025 Construction in Progress 01/31/2025 $ 3,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
January 2025 - deposit for stage 1 initial roof inspection -Building finalized in February 2025 Construction in Progress 01/31/2025 $ 1,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
Office Building on 298 South Sunnyvale Avenue, Sunnyvale CA 94086 Building 02/20/2025 $ 7,000,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
May 2025 - Sunnyvale HQ - Construction Project Management Services Construction in Progress 05/31/2025 $ 20,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
June 2025 - Sunnyvale HQ - Construction Project Management Services Construction in Progress 06/30/2025 $ 11,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
July 2025 - Sunnyvale HQ - Construction Project Management Services Construction in Progress 07/31/2025 $ 11,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
Aug 2025 - fumigation services Construction in Progress 08/18/2025 $ 37,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
August 2025 - Sunnyvale HQ - Construction Project Management Services Construction in Progress 08/31/2025 $ 19,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
June 2025 - SVCE HQ interior design services Construction in Progress 08/01/2025 $ 9,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
July 2025 - SVCE HQ interior design services Construction in Progress 08/01/2025 $ 52,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
September 2025 - Sunnyvale HQ - Construction Project Management Services Construction in Progress 09/30/2025 $ 12,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
August 2025 - Sunnyvale HQ - Elevator Modernization Management Services Construction in Progress 09/01/2025 $ 8,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
October 2025 Building Permit Fee Construction in Progress 10/20/2025 $ 34,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
October 2025 - Sunnyvale HQ - Construction Project Management Services Construction in Progress 11/01/2025 $ 13,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
November 2025 - Sunnyvale HQ - Construction Project Management Services Construction in Progress 12/01/2025 $ 19,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
September 2025 - SVCE HQ interior design services Construction in Progress 12/01/2025 $ 182,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
August 2025 - SVCE HQ interior design services Construction in Progress 12/01/2025 $ 63,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
November 2025 - SVCE HQ interior design services Construction in Progress 12/01/2025 $ 11,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
November 2025 - SVCE HQ interior design services Construction in Progress 12/01/2025 $ 27,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
December 2025 - Elevator modernization services Construction in Progress 12/16/2025 $ 93,000 480 not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
LAND Office Building on 298 South Sunnyvale Avenue, Sunnyvale CA 94086 Land 02/20/2025 $ 4,500,000 N/A Land not in service yet None (allocated towards Office Building Fund) N/A Need to fulfill staff office space needs Office Building Fund Reduction in 5-Year Reserves forecast
Office Furniture for 298 S Sunnyvale Furniture 09/01/2026 $ 561,000 84 not in service yet Listed in FY25-26 Mid-Year Proposd Budget Capital Expenditure N/A Need to fulfill staff office space needs FY25-26 Operating Budget One-time Capital cost in
FY25-26 budget
*Furniture depreciates at 84 months
*Software / electronics depreciate at 36 month
Updated 2/2026
SVCE Capital Projects Report
Item 5
Attachment 4

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Staff Report – Item 6
Item 6: Financial Levers Update – Additional Discussion and Scenario Review From: Monica Padilla, CEO
Prepared by: Justin Zagunis, Director of Customer Success Date: 3/11/2026

RECOMMENDATION
Receive the presentation on updated financial levers and an example scenario. No action requested at this time.

COMMITTEE REVIEWS
This presentation was given to the Executive Committee at its February 27, 2026 meeting. It was also given to the Finance and Administration Committee at its March 6, 2026 meeting. Both sets of Committee members had robust discussions on the information provided, shared perspectives on priorities, and asked questions and suggested additional information that would be helpful in making an eventual decision. Their feedback has been incorporated into the presentation being given to the Silicon Valley Clean Energy (SVCE) Board of Directors (“Board”) today.

BACKGROUND
Initial December Discussions on Financial Levers
This topic was initially introduced towards the end of 2025. The Board received an introductory, overview presentation at the regular December Board meeting that covered these ‘financial levers.’ These levers represent SVCE’s main pathways towards mitigating the forecasted draw on reserves in the current five-year forecast. The Board then had a special meeting later in December to give more expansive feedback on the levers, through the lens of contemplating SVCE’s core mission, the value proposition to customers, and how those combine into different ‘stories’ that SVCE embodies and could further orient itself around. The stories represented various tradeoffs – prioritizing some elements of SVCE’s work and influence more than others.

Figure 1: Timeline for Financial Levers
Item 6
SILICON VALLEY <3/ CLEAN ENERGY
Exec Committee
May/Jun 2026
Oct 2025 Dec 2025
Dec 2025 Sep 2026+
Board Study Session
: (initial feedback on
values and priorities)
Board (if
needed,
incorporate in
budget)
Board
(introduction to
concepts)
Exec Committee
Finance & Admin
Board
(specific modeled
scenario)
Exec Committee
Finance & Admin
Board
(final decisions on
preferred approach)
*Timeline subject to change
Feb/Mar 2026
Agenda Item: 6 Agenda Date: 3/11/2026

Page 2 of 4 ends

Financial Outlook and Planning
SVCE’s current financial forecast projects a drawdown in reserves over the coming five-year period. This drawdown would be a new situation for SVCE, compared to the financial environment it has operated in thus far during its existence. The most current update on the financial forecast and drivers can be found in Item 5 earlier in this meeting’s agenda.

SVCE’s existing reserves allow for a measured response to this forecast – both in terms of how quickly action must be taken and how extensive that action must be. This ongoing discussion of the relative merits of different financial levers will help the Board affirm the preferred scenarios for responding to negative financial conditions – whether far in the future or in the case that this current forecast manifests.

Recap of SVCE’s Mission and Value Proposition Delivery
SVCE’s mission is to reduce dependence on fossil fuels. And to do so by providing carbon free, affordable, and reliable electricity and innovative programs for the SVCE
community. This also represents the value proposition that SVCE offers to the local communities – a focus on fighting climate change, improving health, and cleaning the air
through fossil fuel independence along with local control, local reinvestment, local presence, and competitive rates.

SVCE has been delivering on the mission and this full
customer value proposition: lifetime bill savings, thousands of local heat pumps and other equipment installed, major investments in constructing new clean supply resources, support for contractor training, support for local community projects, electric vehicle charging at multifamily properties, tabling at community events, and much more. But there are still millions of local fossil fuel machines to be replaced and additional clean supply projects that will be required to keep meeting the needs of a growing load.

Rates, Competitiveness, and Affordability
SVCE sets its rates with an eye toward competitiveness with Pacific Gas and Electric (PG&E). Competitiveness can mean many things to a customer: cheaper, the same cost, slightly higher but not so high as to be worth switching, stable rates, cleaner supply, supportive of cleaner air through local programs, getting to have a provider other than PG&E, or something else. Each individual customer has their own set of considerations and idea of what is valuable and competitive for them. Different customer types (residential and non-residential) may, in aggregate, prioritize differently.

Figure 2: Value Proposition
Figure 3: Total Rate Over Time in Gray, with total bill written in-line (SVCE gen rate, inclusive of PCIA, in orange) Figure 4: SVCE Load by Customer Class from
2025 (two-thirds non-residential)
Item 6

COMMUNITY

REINVESTMENT

CLEAN POWER
& THE GRID

LOCAL CONTROL
& PRESENCE

ACCELERATING

ELECTRIC

UPGRADES

COMPETITIVE
RATES
Customer-Facing
Value Proposition
Total Annual Electricity Usage [MWh],
Total = 3,900,000 MWh
Customer Class
Large Commercial/lndustrial
Residential
Small/Medium Commercial
Agenda Item: 6 Agenda Date: 3/11/2026

Page 3 of 4 ends

Affordability is also of great concern to SVCE as part of serving and supporting the community. As shown in Figure 3, SVCE’s direct influence on affordability has significantly decreased over its existence because the Transmission and Distribution (T&D) portion of customers’ bills has increased so much. SVCE’s generation rate in 2026 (when including the PG&E generation fees) is similar to what it was in 2019 while PG&E’s T&D side of the bill has doubled. This means that SVCE now controls less than one quarter of a customer’s bill. SVCE remains committed to keeping its rates as low as possible while serving its mission and supporting the reliability of the grid. SVCE also looks for ways to advocate on behalf of its customers to reduce the large and growing costs on the T&D side of the bill.

Ultimately, small changes to SVCE’s generation rate, whether above or below PG&E, do not have major impacts on customer affordability today. But even small changes above PG&E can be important from a competitive perspective for those customers who prioritize price above all else – if the difference is meaningful enough to be worth changing providers (especially knowing that SVCE has delivered significant savings over its lifetime for that customer, and that SVCE could go back to being cheaper while the they are opted out).

DISCUSSION
Staff will present additional analysis and conclusions during the Board meeting.

Main Topics
One key takeaway is that, under the current forecast, closing the gap between costs and revenues on an ongoing basis without using SVCE’s reserves would require increasing SVCE’s generation rate to a premium above PG&E (when including the PG&E generation fees). This conclusion is driven by the fact that the voluntary clean position and program spend have a relatively small impact on overall costs and therefore could not close the gap on their own. Therefore, on a long-term, ongoing basis under negative financial conditions like those in the current forecast, increasing the SVCE rate would be a required lever. This is not a near-term requirement, as SVCE has substantial reserves that it can choose to continue to draw from to maintain the current rate-setting approach and also fund the programs and voluntary clean supply.

Another key consideration is that the five-year forecast contains significant uncertainty, especially in the outer years. The energy markets will continue to fluctuate, SVCE will face procurement orders and other compliance obligations, and rules or interpretations at the state level will evolve. This may improve the financial forecast to be more akin to previous years of SVCE’s existence, or it could get worse than today’s projection. There is value in waiting to understand what actions are required – as time passes there will be moments of new information that influence where the forecast truly heads. Waiting is possible because of SVCE’s strong reserves. These is also risk in waiting – delaying means that the eventual action taken must be more extreme to drive the same net impact by the end of the five-year period.

The third main takeaway is that SVCE’s value proposition and mission can be severely impacted if every lever ends up being used. If SVCE were to decide to reduce the forecasted draw from reserves by shrinking the investment in voluntary clean (i.e. become less clean than PG&E) and reducing the investment in local electrification activities (i.e. cease running programs), then it would no longer be driving impact towards the mission to reduce dependence on fossil fuels. It would shrink its value proposition to be focused on local control and presence, along with competitive rates. This could be temporary or could persist for a longer time.

At some point, if the poor market conditions continued and once reserves were drawn down to some minimum target level, rates would then also have to be increased to fully close the gap between costs and revenues. At that point, SVCE’s value proposition would become just focused on local control and presence. There might be some argument for competitive rates, depending on how customers define competitiveness and how high the rate must be raised. Again, this is not where SVCE stands today with its strong reserves, but near-term decisions must consider this worst cast possibility along with the possibility that the forecast will improve.

Example Scenario
Staff has constructed an example scenario based on feedback from December and further analysis. The scenario is intended to give a sense for how the different levers could be combined to find a balanced approach for reducing or stopping a draw from reserves. The feedback given by the Board on priorities and Item 6
Agenda Item: 6 Agenda Date: 3/11/2026

Page 4 of 4 ends

mission will give staff a starting place for any future situations with a negative forecast, regardless of whether the current forecast holds.

The example scenario considers the idea of SVCE moving to two main products: one that is 100% clean but at a 4% premium compared to PG&E’s generation rate, and one that is minimally compliant with its clean supply mix but would remain at a 1% discount. The clean product would increase overall customer electricity bills by about 1% (roughly $2 per month for a residential customer). The less clean product would be open for customers to opt down into and would result in increased emissions associated with SVCE’s communities based on the number of customers that select it. The scenario also cuts the amount spent on programs by 10%, requiring the closure or shrinking of some previously approved expenditures.

The theoretical impact of this scenario would be to increase the amount of days cash on hand in the reserves by the end of the period by 75 days, under the assumption that these products start in 2027. This scenario offers customer choice and a clean product that does not have a major impact on overall bills. There are other ways to combine these levers, whether similar to this one or very divergent. It is also possible to delay when action is taken, but a resulting scenario would need to be more aggressive depending on how long SVCE waits (e.g. if waiting one or two years to take this approach, the example scenario might instead require a 7% premium for the clean product, cost parity for the less clean product, and a 25% reduction in programs).

Additional Information
This analysis includes assumptions, and the impacts will be highly dependent on customer reaction. Staff continues to gather information to inform future input: residential customer “willingness to pay” for clean programs and energy, non-residential customer reaction to a premium, and the emissions impacts of customers opting down. Pursuing something like the example scenario could also provide additional information to SVCE’s long-term strategy by understanding how many customers choose to opt down.

This work connects to the new Integrated Decarbonization Roadmap that SVCE’s board has been discussing, which will drive a new understanding of which programs SVCE wants to prioritize and the overall emissions impact of that work. This will include a better understanding of how adjusting the program investments will affect the long-term transition to electric technologies and local emissions.

One objective for this presentation to the Board today is to understand if there is additional information and framing that would be helpful for future discussions.

STRATEGIC PLAN
This item will eventually affect the entirety of SVCE’s Strategic Plan, as it touches on all elements of SVCE’s business and mission. Decisions in the coming months, driven by discussions around the financial levers described in this item, will affect future budgets, resource plans, decarbonization initiatives, and strategic plan updates. This item itself, as an informational item, does not make any adjustments right now.

FISCAL IMPACT
The eventual decisions made around financial levers will have a significant fiscal impact on SVCE. This item, as an information item, does not itself have any fiscal impact. Once strategic decisions are made in 2026 around the financial levers, the fiscal impacts will be modeled and incorporated into future budgets and plans.

Item 6

Silicon Valley Clean Energy Board of DirectorsMarch 11, 2026

Silicon Valley Clean Energy Board of Directors
March 11, 2026