Item 11
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 11
TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer / Treasurer Mitch Sears, Chief Executive Officer
SUBJECT: 2026 Operating Budget & Customer Rates - Recommended DATE: December 11, 2025
RECOMMENDATIONS
1. Approve 2026 VCE Customer Rates:
1. Standard Green Rates with a 5% discount to PG&E’s 2026 generation rates i. Additional 5% discount (10% combined) to PG&E 2026 Rates for CARE/FERA and Medical Baseline customers
2. Base Green Rate discount of 2.5% to PG&E 2026 generation rates
2. Approve 2026 Budget with $46.5 M of operating revenues and $62.3 M of operating expenses for a net loss of $15.8 M.
OVERVIEW
The purpose of this staff report is to: (1) present an analysis of 2026 customer rates, and (2) present the recommended 2026 Budget for Board consideration.
As detailed in the body of this report, the 2026 budget forecasts a net loss of $15.8 M. Under the recommended budget for 2026, the Rate Stabilization Fund would be used to minimize the impacts of volatility in the Power Charge Indifference Adjustment (PCIA) and comparative PG&E Generation rates. By design, drawing on this fund during the 2026 budget cycle is projected to allow VCE to continue to offer competitive customer rates and local programs funding in 2026 while maintaining its investment-grade credit rating.
VCE’s longer-term fiscal outlook (2027+) indicates continued constraints due to both regulatory changes expected in Power Charge Indifference Adjustment (PCIA) calculations and a lower overall forward current price curve, driving higher PCIA rates. Existing tools such as the Rate Stabilization Fund and rate adjustment mechanisms provide financial management tools to help address projected volatility through 2030.
BACKGROUND
At the November 13, 2025, Board meeting, Staff presented Item 10 as part of the first of two discussions for the Board’s consideration of VCE’s 2026 customer rates and Operating Budget.
Staff presented three 2026 budget scenarios that outlined meeting VCE’s financial policies, updated reserve targets, and customer program expansions, with a net loss range of ($11.9 M) to ($15.7 M) based on net customer rate discounts. Recommended 2026 customer rate Item 11
2 discounts are paid for using VCE’s customer dividend funds and a portion of VCE's rate stabilization funds. Based on feedback from the Board during the discussion, Staff recommends continuing the current rate discounts, including a 5% rate credit for all customers and a 10% rate credit for CARE/FERA and Medical Baseline customers.
ANALYSIS
This report updates the financial information provided to the Board on November 13, 2025 and provides the basis for the budget Analysis in Section 2 below. The sections below provide updates on: (1) an overview of key factors influencing the operating budgets, and (2) an analysis of the recommended 2026 budget.
1. Proposed 2026 Customer Rates
As discussed at the November Board meeting, the CPUC is scheduled to adopt 2026 PG&E bundled rates at their December 2025 meeting. The updated analysis shown below is based on the best available information as of the writing of this report, with an effective rate change date of January 1, 2026, and following our current rate and reserve policies and financial objectives.
VCE Rate Policy (Update Approved November 10, 2021)
Cost-Based Rate Policy: VCE will set customer rates to collect sufficient revenue from participating customers to fully fund VCE's Budget and establish sufficient operating reserve funds. VCE’s 2025 Target was set to fully fund 180 days of operating cash reserves and direct all additional cash reserves to rate stabilization incorporated into 2025 rate setting.
VCE’s Reserve and Dividend Policy
• Operational Financial Reserve minimum of 120 days
• Operational Financial Reserve Target of 180
• Rate Stabilization Reserve minimum of 60 days
VCE, along with all other California CCAs, receives PG&E PCIA and generation rate modeling produced by financial analysts under contract with CalCCA. Based on the most recent PG&E filing and market price benchmarks for Resource Adequacy (RA) and Renewable Energy Credits (RECs) set by CPUC’s energy division, PCIA is forecast to increase significantly in 2026, with an additional retroactive collection of 2025 PCIA due to revised market price benchmark calculation ordered by the CPUC. Note: CalCCA has filed a case with the California Court of Appeals challenging the CPUC’s decision on the retroactive collection of 2025 PCIA fees. 2026 Customer Rates Drivers
Based on information from VCE and CalCCA’s analysts on the proposed PG&E rates decision outlined above, VCE has incorporated the following assumptions in its updated financial forecasts for 2026 (assuming PG&E rates/PCIA are implemented on January 1, 2026):
• PCIA Costs: 201% increase over 2025 PCIA - Results in approximately $15.5M decrease in revenue for 2026
• PG&E Bundled Generation rates (Generation): -31% decrease – Results in approximately $23M lower revenue for 2026
Item 11
3 Note: The VCE generation charges, plus PCIA and franchise fees, are approximately 40% of the average residential electricity bill. PG&E’s Transmission, Distribution, and other charges account for the remaining 60% of the total electricity bill. The total charges to customers in 2026 may not decrease due to higher charges for transmission and distribution.
Rate Discounts/Revenue Investment
• Revenues can be “invested” in rate discounts, programs, increased procurement of clean energy resources (e.g. short-term RECs), or a combination of these and other elements.
• Every 1% discount results in approximately $1.25/month reduction in the average residential customer bill and approximately $3.25/month reduction in the average small commercial customer bill.
• Every 1% discount would be approximately $500K in reduced net income available for cash reserves, rate stabilization, programs, and procurement of additional clean energy resources. Net Income allocations for reserves and programs are normally evaluated in May as part of VCE’s audited financial results.
• If selected, rate discounts are best implemented during PG&E rate changes (e.g.
January), to minimize billing efforts, risk of errors, and customer messaging.
Staff will continue to evaluate the balance among affordability, equity, and environmental impacts through the cost recovery rate-setting process. Incorporating this balance, Staff is recommending the following:
VCE 2026 Rates Recommendation (No change to current discounts)
1. Standard Green Rates (default rate): 5% Discount to PG&E’s 2026 generation Rates i. 10% Discount for CARE/FERA and Medical Baseline customers to PG&E’s 2026 generation rates
2. Base Green Rate (Opt-down rate option): discount of 2.5% to PG&E 2026 generation rates
Fiscal Effects
The rates (and budget) approach outlined in this report allows VCE to offer more affordable customer rates and higher renewable content than PG&E while positioning itself to maintain its investment-grade credit rating, meet operational and rate stabilization minimum targets, execute VCE programs, and absorb the forecasted PCIA increases and power market volatility to achieve long-term rate stability.
Staff will continue to monitor financial operating results, including customer rate discounts as part of the 2025 net margin allocation in Q2 of 2026 as part of the Customer Program and Dividend Policy. If approved by the Board, these customer rates would maintain VCE’s strategic financial objectives. As noted, VCE’s longer-term outlook (2027+) indicates continued constraints due to both regulatory changes expected in Power Charge Indifference Adjustment (PCIA) calculations and a lower overall forward current price curve, driving higher PCIA rates.
2. Proposed 2026 Operating Budget
As noted in the November draft budget, reduced forward power market prices have been outpaced by significant decreases in net revenues due to 2026 PCIA rate increases. Based on Item 11
4 analysis by CalCCA, consultants, and Staff, VCE anticipates higher PCIA and lower PG&E generation rates. The net result is a forecasted net loss of $15.8M for 2026 (Table 1 below).
Key Assumptions included in the 2026 Budget Summary (Table 1) and Multi-year forecast (Table 2):
• 2026 Customer Rates (VCE & PG&E Comparison) - VCE will set customer rates lower than costs, using rate customer dividends funds and a portion of rate stabilization funds to fully fund VCE's Budget and maintain the investment-grade credit rating. • 2026 PCIA Forecast –The updated PCIA increased from ~.0101 KW/$6.5M to .031KW/$22M
• 2026 Customer Rates Forecast – The updated forecast for PG&E rates results in a projected 31% generation rate decrease (offset by non-VCE portions of the bill such as transmission and distribution charges).
Table 1 – 2026 Budget Summary
Multi-Year Forecast
As shown in Table 2 below – Multi-Year Forecast, VCE's long-term renewable PPA contracts provide near/long-term financial cost stability, allowing it to maintain cash reserves and offer competitive customer rates, local programs, and additional progress towards long-term strategic and financial goals.
VALLEY CLEAN ENERGY
2026 BUDGET SUMMARY ACTUAL YTD
RECOMMENDED APPROVED SEPT. (9 MO) RECOMMENDED
BUDGET + FORECAST (3 MO) BUDGET
2025 2025 2026
OPERATING REVENUE $ 101,200 $ 86,950 $ 45,274
OPERATING EXPENSES:
Cost of Electricity 64,000 55,900 53,800
Contract Services 2,640 2,390 2,750
Outreach & Marketing 370 350 400
Programs 2,170 520 1,250
Staffing 2,100 1,850 2,180
General, Administration and other 1,560 990 1,890
TOTAL OPERATING EXPENSES 72,840 62,000 62,270
TOTAL OPERATING INCOME 28,360 24,950 (16,996)
NONOPERATING REVENUES (EXPENSES)
Interest income 990 1,358 1,250
Interest expense
TOTAL NONOPERATING REV/(EXPENSES) 990 1,358 1,250
NET MARGIN $ 29,350 $ 26,308 $ (15,746)
NET MARGIN % 29% 30% -35%
Item 11
5 Table 2 – Multi-Year Forecast
* The preliminary forecast is based on analysis by CalCCA, MRW, and TEA and power cost forecasts.
Note: Forecasted financials are based on the most current available data and assumptions, as displayed in Table 2. These forecasts may rely on future rate adjustments, reserves, or both to maintain VCE’s financial strength.
Additional Considerations
Other Operating Expenses – Budget Other operating expenses (not including power costs) are nearly flat compared to the 2025 budget, in line with CPI (CPI data is limited due to reporting delays) at ~3.5%. The majority of the cost increases are related to programs and special projects to support the execution of VCE’s long-term Strategic Goals. The primary factors in increased costs in this category of expenses include:
• $1.25M in customer programs related to Charge Your Ride, Panasonic, and other programs to be allocated to specific programs throughout the year. • $500K estimated IT enhancements for ERP and Programs support • Additional costs related to the scheduled Marketing and Programs Plan Updates, including customer focus groups
• 3.5% annual salary/benefits, and contractor inflation rate based on the 2025 3.5% inflation rate.
• 5% administrative contingency rate for unanticipated expenses.
CONCLUSION
Consistent with the adopted Reserves, Rates, and Budget policy, Staff is recommending that VCE set rates and adopt a budget for 2026 at a level that will fully fund the 2026 budget using a portion of the rate stabilization fund, offer more affordable rates to VCE customers with additional financial relief to CARE/FERA and Medical Baseline customers, while maintaining VCE’s A-investment grade credit rating. Staff will continue to review and report operating results and propose upward or downward adjustments as needed. The next scheduled comprehensive review of financial results is in Q2 of 2026, with the audited financial results for 2025.
ATTACHMENTS
1. 2026 Operational Budget
2. Resolution 2025-XXX Recommended
5% Standard /10%
CARE/FERA Discount 2023 2024 2025 2026 2027 2028 2029
Customer Revenue 95,430 97,979 88,050 45,274 68,250 66,350 66,890 Power Cost 68,528 64,723 55,302 53,800 54,380 56,800 58,500 Other Expenses 6,030 6,275 4,950 7,220 7,660 7,850 8,050 Net Income 20,872 26,981 27,798 (15,746) 6,210 1,700 340 Actual YTD
Sept. (9 MO)
+ Forecast (3 MO)
Proposed
Budget Preliminary Forecast*
VALLEY CLEAN ENERGY - 2026 OPERATING BUDGET
Description Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 TOTAL Total Revenues $ 3,232,000 $ 2,745,000 $ 2,604,000 $ 2,592,000 $ 3,002,000 $ 5,487,000 $ 6,562,000 $ 6,140,000 $ 5,082,000 $ 3,222,000 $ 2,889,000 $ 2,967,000 $ 46,524,000 Electric Revenue $ 3,120,000 $ 2,633,000 $ 2,492,000 $ 2,480,000 $ 2,890,000 $ 5,375,000 $ 6,460,000 $ 6,038,000 $ 4,980,000 $ 3,120,000 $ 2,787,000 $ 2,875,000 $ 45,250,000 Interest Revenues $ 110,000 $ 110,000 $ 110,000 $ 110,000 $ 110,000 $ 110,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 90,000 $ 1,250,000 Reimbursable Revenues $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 24,000 Purchased Power $ 3,703,000 $ 3,595,000 $ 3,618,000 $ 3,415,000 $ 3,814,000 $ 5,312,000 $ 6,176,000 $ 6,154,000 $ 5,362,000 $ 4,760,000 $ 3,770,000 $ 4,121,000 $ 53,800,000 Purchased Power Base $ 3,520,000 $ 3,417,000 $ 3,439,000 $ 3,246,000 $ 3,625,000 $ 5,050,000 $ 5,870,000 $ 5,850,000 $ 5,098,000 $ 4,525,000 $ 3,584,000 $ 3,918,000 $ 51,142,000 Purchased Power Contingency
5%
$ 178,000 183,000 $ 179,000 $ 169,000 $ 189,000 $ 262,000 $ 306,000 $ 304,000 $ 264,000 $ 235,000 $ 186,000 $ 203,000 $ 2,658,000 $ Labor & Benefits $ 179,000 $ 179,000 $ 179,000 $ 179,000 $ 179,000 $ 179,000 $ 184,000 $ 184,000 $ 184,000 $ 184,000 $ 184,000 $ 186,000 $ 2,180,000 Salaries & Wages $ 145,000 $ 145,000 $ 145,000 $ 145,000 $ 145,000 $ 145,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 1,770,000 Benefits $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 20,000 $ 218,000 Human Resources & Payroll $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 192,000 Office Supplies & Other Expenses $ 39,500 39,500 $ 39,500 $ 59,000 $ 39,500 $ 46,500 $ 61,500 $ 86,500 $ 136,500 $ 136,500 $ 136,500 $ 136,500 $ 957,500 $ Technology Costs $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 10,000 $ 25,000 $ 50,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Office Supplies $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 12,000 Travel $ 500 $ 500 $ 500 $ 20,000 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 25,500 CalCCA Dues $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 192,000 CC Power $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 216,000 Memberships $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 12,000 Contractual Services $ 223,150 $ 223,150 $ 278,150 $ 223,150 $ 223,150 $ 223,150 $ 223,150 $ 223,150 $ 223,650 $ 223,650 $ 238,650 $ 223,850 $ 2,750,000 Other Contract Services (e.g. IRP) $ 12,500 12,500 $ 12,500 $ 12,500 $ 12,500 $ 12,500 $ 12,500 $ 12,500 $ 12,500 $ 12,500 $ 12,500 $ 12,700 $ 150,200 $ Don Dame $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 36,000 Wholesale Energy Services (TEA) $ 72,000 72,000 $ 72,000 $ 72,000 $ 72,000 $ 72,000 $ 72,000 $ 72,000 $ 72,000 $ 72,000 $ 72,000 $ 72,000 $ 864,000 $ 2030 100% Renewable &
Storage
$ 2,500 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 32,000 $ Customer Support Call Center $ 80,500 $ 80,500 $ 80,500 $ 80,500 $ 80,500 $ 80,500 $ 80,500 $ 80,500 $ 80,500 $ 80,500 $ 80,500 $ 80,500 $ 966,000 Energy Advisory Services $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 90,000 Operating Services $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 120,000 Commercial Legal Support $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 24,000 Legal General Counsel $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 84,000 Regulatory Counsel $ 17,000 $ 17,000 $ 17,000 $ 17,000 $ 17,000 $ 17,000 $ 17,000 $ 17,000 $ 17,000 $ 17,000 $ 17,000 $ 17,000 $ 204,000 Joint CCA Regulatory counsel $ 1,600 $ 1,600 $ 1,600 $ 1,600 $ 1,600 $ 1,600 $ 1,600 $ 1,600 $ 1,600 $ 1,600 $ 1,600 $ 1,600 $ 19,200 Legislative - (Lobbyist) $ 5,750 $ 5,750 $ 5,750 $ 5,750 $ 5,750 $ 5,750 $ 5,750 $ 5,750 $ 5,750 $ 5,750 $ 5,750 $ 5,750 $ 69,000 Accounting Services $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 3,600 Financial Consultant $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 18,000 Audit Fees $ - $ - $ 55,000 $ - $ - $ - $ - $ - $ - $ - $ 15,000 $ - $ 70,000 Marketing $ 32,500 $ 32,500 $ 33,500 $ 33,500 $ 33,500 $ 33,500 $ 33,500 $ 33,500 $ 33,500 $ 33,500 $ 33,500 $ 33,500 $ 400,000 Marketing Collateral $ 26,000 $ 26,000 $ 27,000 $ 27,000 $ 27,000 $ 27,000 $ 27,000 $ 27,000 $ 27,000 $ 27,000 $ 27,000 $ 27,000 $ 322,000 Community Engagement
Activities & Sponsorships $ 6,500 6,500 $ 6,500 $ 6,500 $ 6,500 $ 6,500 $ 6,500 $ 6,500 $ 6,500 $ 6,500 $ 6,500 $ 6,500 $ 78,000 $ Programs $ 104,000 $ 104,000 $ 104,000 $ 104,000 $ 104,000 $ 104,000 $ 104,000 $ 104,000 $ 104,000 $ 104,000 $ 104,000 $ 106,000 $ 1,250,000 Charge Your Ride $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 960,000 Panasonic $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 24,000 Other Programs $ 22,000 $ 22,000 $ 22,000 $ 22,000 $ 22,000 $ 22,000 $ 22,000 $ 22,000 $ 22,000 $ 22,000 $ 22,000 $ 24,000 $ 266,000 Rents & Leases $ 4,350 $ 4,350 $ 4,350 $ 4,350 $ 4,350 $ 4,350 $ 4,350 $ 4,350 $ 4,350 $ 4,350 $ 4,350 $ 4,350 $ 52,200 Hunt Boyer Mansion $ 2,350 $ 2,350 $ 2,350 $ 2,350 $ 2,350 $ 2,350 $ 2,350 $ 2,350 $ 2,350 $ 2,350 $ 2,350 $ 2,350 $ 28,200 Lease Improvement $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 24,000 Other A&G $ 50,600 $ 50,600 $ 100,400 $ 56,100 $ 62,900 $ 56,100 $ 41,600 $ 41,600 $ 43,900 $ 41,600 $ 41,600 $ 41,600 $ 628,600 Development - New Members $ 1,000 $ 1,000 $ 1,000 $ 1,500 $ 1,500 $ 1,500 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 19,500 Strategic Plan Implementation $ 6,400 $ 6,400 $ 6,400 $ 6,400 $ 6,400 $ 6,400 $ 6,400 $ 6,400 $ 6,400 $ 6,400 $ 6,400 $ 6,400 $ 76,800 Community Focus Group $ 10,000 $ 10,000 $ 10,000 $ 15,000 $ 15,000 $ 15,000 $ - $ - $ - $ - $ - $ - $ 75,000 PG&E Data Fees $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 300,000 Insurance $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 96,000 Banking & Ratings Fees $ 200 $ 200 $ 50,000 $ 200 $ 7,000 $ 200 $ 200 $ 200 $ 2,500 $ 200 $ 200 $ 200 $ 61,300 Miscellaneous Operating
Expenses
$ 1,000 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,100 $ 12,100 $ Contingency $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 240,000 TOTAL OPERATING EXPENSES $ 4,357,100 $ 4,249,100 $ 4,377,900 $ 4,095,100 $ 4,481,400 $ 5,979,600 $ 6,849,100 $ 6,852,100 $ 6,112,900 $ 5,508,600 $ 4,533,600 $ 4,873,900 $ 62,270,400 Interest on RCB Term loan $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Interest Expense - Bridge Loan \
Line of Credit
$ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
NET INCOME $ (1,504,100) (1,125,100) $ (1,773,900) $ (1,503,100) $ (1,479,400) $ (492,600) $ (287,100) $ (712,100) $ (1,030,900) $ (2,286,600) $ (1,644,600) $ (1,906,900) $ (15,746,400) $ Item 11
VALLEY CLEAN ENERGY ALLIANCE
RESOLUTION NO. 2025-___
A RESOLUTION OF THE BOARD OF DIRECTORS OF VALLEY CLEAN ENERGY ALLIANCE ADOPTING THE CUSTOMER RATES AND OPERATING BUDGET FOR YEAR 2026 WHEREAS, the Valley Clean Energy Alliance (“VCE”) was formed as a community choice aggregation agency (“CCA”) on November 16, 2016, under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Yolo, and the Cities of Davis and Woodland, to reduce greenhouse gas emissions, provide electricity, carry out programs to reduce energy consumption, develop local jobs in renewable energy, and promote energy security and rate stability in all of the member jurisdictions. The City of Winters, located in Yolo County, was added as a member of VCE and a party to the JPA in December of 2019; and, WHEREAS, beginning in 2020, VCE faced financial constraints associated with power market and regulatory volatility driven by forces outside VCE's direct control; and WHEREAS, on November 10, 2021, the Board adopted a cost-based rate policy via Resolution 2021- 023; and,
WHEREAS, to address volatility driven by forces outside of VCE’s direct control there is a need to adopt rates and operational budgets to cover actual cost and reserve requirements; and WHEREAS, the VCE 2026 proposed Budget for the calendar year 2026 includes Operating Revenues totaling $46.5 M and purchased power and other operating expenses totaling $62.3M for a net loss of $15.8M;
WHEREAS, proposed VCE 2026 customer rates include Standard Green Rates with a 5% discount to PG&E’s 2026 generation rates and an additional 5% discount (10% combined) to PG&E 2026 Rates for CARE/FERA and Medical Baseline customers, and VCE Base Green Rate 2.5% lower than PG&E 2025 generation rates.
NOW, THEREFORE, the Board of Directors of Valley Clean Energy Alliance hereby adopts the 2026 proposed Budget and Customer Rates for 2026.
PASSED, APPROVED AND ADOPTED, at a regular meeting of the Valley Clean Energy Alliance, held on the _________ day of ____________ 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________________
Bapu Vaitla, VCE Chair
___________________________________
Alisa M. Lembke, VCE Board Secretary
Attachment: 2026 Operating Budget