Agenda packet — Valley Clean Energy Board of Directors, June 11, 2026

VCE 6/11/2026 Board Meeting Agenda Page 1 of 4
Regular Meeting of the Valley Clean Energy Alliance
Board of Directors
Thursday, June 11, 2026 at 5:30 p.m.

City of Davis Community Chambers
23 Russell Boulevard, Davis, California 95616
Board Members will be attending in-person and public participation will be in-person and available via Zoom Webinar (video/teleconference). VCE will, to the best of its ability, provide hybrid and remote options for VCE meeting participants and to the public; however, VCE cannot guarantee these options will be available due to technical limitations outside of our control. For assurance of public comment, VCE encourages in-person and written public comments to be submitted as described below when possible. VCE, to the best of its abilities, will provide participation via the Zoom platform.

Accommodations for Persons with disabilities: Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact Alisa Lembke, VCE Board Clerk/Administrative Analyst, as soon as possible and preferably at least two (2) working days before the meeting at (530) 446-2754 or [email protected].

If you have anything that you wish to be distributed to the Board and included in the official record, please hand it to a member of VCEA staff who will distribute the information to the Board members and other staff.

Please note that the numerical order of items is for convenience of reference. Items may be taken out of order on the request of any Board member with the concurrence of the Board. Staff recommendations are advisory to the Board. The Board may take any action it deems appropriate on any item on the agenda even if it varies from the staff recommendation.

Members of the public who wish to listen to the Board of Director’s meeting may do so with the video/teleconferencing call-in number and meeting ID code. Video / teleconference information below to join meeting:

Join meeting via Zoom:
a. From a PC, Mac, iPad, iPhone, or Android device with high-speed internet. (If your device does not have audio, please also join by phone.) https://us02web.zoom.us/j/81004511448
Meeting ID: 810 0451 1448
b. By phone:

One tap mobile:
+1-669-444-9171,,81004511448# US
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VCE 6/11/2026 Board Meeting Agenda Page 2 of 4
Or Dial:
+1-669-444-9171 US
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Meeting ID: 810 0451 1448
Public comments may be submitted electronically or during the meeting. Instructions on how to submit your public comments can be found in the PUBLIC PARTICIPATION note at the end of this agenda.

Board Members: Jesse Loren (City of Winters, Chair), Tania Garcia-Cadena (City of Woodland, Vice Chair), Bapu Vaitla (City of Davis), Lucas Frerichs (Yolo County), Richard Casavecchia (City of Winters), Tom Stallard (City of Woodland), Donna Neville (City of Davis), Sheila Allen (Yolo County)
Alternate Board Members: Angel Barajas (Yolo County), Mayra Vega (City of Woodland), Linda Deos (City of Davis), Albert Vallecillo (City of Winters) 5:30 p.m. Call to Order

1. Welcome, Approval of Agenda

2. Public Comment: This item is reserved for persons wishing to address the Board on any VCE-related matters that are not otherwise on this meeting agenda or are listed on the Consent portion of the agenda. Public comments on matters listed on the agenda shall be heard at the time the matter is called. As with all public comment, members of the public who wish to address the Board are customarily limited to two minutes per speaker, electronically submitted comments should be limited to approximately 300 words. Comments that are longer than 300 words will only be read for two minutes. All electronically submitted comments, whether read in their entirety or not, will be posted to the VCE website within 24 hours of the conclusion of the meeting. See below under PUBLIC PARTICIPATION on how to provide your public comment.

CONSENT AGENDA

3. Approve April 9, 2026 Board meeting Minutes.

4. Receive 2026 long range calendar.

5. Receive Treasurer’s Reports: A) January 31, 2026; B) February 28, 2026; C) March 31, 2026; and, D) April 30, 2026.

6. Receive legislative update provided by Pacific Policy Group.

7. Receive May 2026 regulatory update dated June 3, 2026 provided by Keyes & Fox.

8. Receive Community Advisory Committee May 28, 2026 meeting summary.

9. Receive annual Load Management Standards update. (Information)

10. Authorize VCE to execute documents associated with Amendment One (1) to CC Power Agreement for the Fish Lake geothermal project. (Action)

11. Appointment/Reappointment of Members to Community Advisory Committee. (Action)
002
VCE 6/11/2026 Board Meeting Agenda Page 3 of 4

REGULAR AGENDA

12. Receive Summer Preparedness outlook. (Information)

13. Receive and accept Calendar Year 2025 Audited Financial Statements. (Action)

14. Receive mid-year 2026 financial update. (Information)

15. Approve 2025 Net Margin allocation. (Discussion/Action)

16. Receive Recap of CalCCA 2026 Annual Conference. (Information)

17. Board Member and Staff Announcements: Action items and reports from members of the Board, including announcements, AB1234 reporting of meetings attended by Board Members of VCE expense, questions to be referred to staff, future agenda items, and reports on meetings and information which would be of interest to the Board or the public.

18. Adjournment/Announcement: The Board’s next regular meeting has been scheduled for Thursday, July 9, 2026 at the City of Woodland Council Chambers located at 300 First Street, Woodland, California 95695.

PUBLIC PARTICIPATION: Public Comments: Public participation for this meeting will be done electronically via e-mail and during the meeting as described below.

Public participation via e-mail: If you have anything that you wish to be distributed to the Board and included in the official record, please e-mail it to VCE staff at [email protected] . If information is received by 3:00 p.m. on the day of the Board meeting it will be e-mailed to the Board members and other staff prior to the meeting. If it is received after 3:00 p.m. the information will be distributed after the meeting, but within 24 hours of the conclusion of the meeting. Written public comments that do not exceed 300 words will be read by the VCE Board Clerk, or other assigned VCE staff, to the Board and the public during the meeting subject to the usual time limit for public comments [two (2) minutes].

General written public comments will be read during Item 2, Public Comment. Written public comment on individual agenda items should include the item number in the “Subject” line for the e-mail and the Clerk will read the comment during the item. All written comments received will be posted to the VCE website.

Verbal public participation during the meeting:
1) If attending in person, please complete a Comment Card and return it to the Board Clerk.
2) If attending remotely via Zoom, there are two (2) ways for the public to provide verbal comments:

A. If you are attending by computer, activate the “participants” icon at the bottom of your screen, then raise your hand (hand clap icon) under “reactions”. When called upon, you will be “unmuted” to allow to speak.

B. If you are attending by phone only, you will need to press *9 to raise your hand.

When called upon, press *6 to unmute your microphone.

VCE staff will acknowledge that you have a public comment to make during the item and will call upon you to make your verbal comment.

Public records that relate to any item on the open session agenda for a regular or special Board meeting are available for public review on the VCE website. Records that are 003
VCE 6/11/2026 Board Meeting Agenda Page 4 of 4
distributed to the Board by VCE staff less than 72 hours prior to the meeting will be posted to the VCE website at the same time they are distributed to all members, or a majority of the members of the Board. Questions regarding VCE public records related to the meeting should be directed to Board Clerk Alisa Lembke at (530) 446-2750 or [email protected]. The Valley Clean Energy website is located at:
https://valleycleanenergy.org/board-meetings/.
004
Item 3
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 3
TO: Board of Directors
FROM: Alisa Lembke, Board Clerk / Administrative Analyst SUBJECT: Approval of April 9, 2026 Board meeting Minutes DATE: June 11, 2026

RECOMMENDATION
Receive, review and approve the attached April 9, 2026 meeting Minutes.

Attachment: April 9, 2026 Board meeting Minutes
005
VCEA Minutes April 9, 2026 Regular Board Meeting Page 1 of 4

MINUTES OF THE VALLEY CLEAN ENERGY ALLIANCE

BOARD OF DIRECTORS REGULAR MEETING
THURSDAY, APRIL 9, 2026
The Board of Directors of the Valley Clean Energy Alliance duly noticed their regular meeting for Thursday, April 9, 2026 at 5:30 p.m. to be held at City of Davis Community Chambers located at 23 Russell Boulevard, Davis, California 95616. Board Chair Jesse Loren established that there was a quorum present and began the meeting at 5:30 p.m.

Board Members Present: Jesse Loren (Chair), Tania Garcia-Cadena (Vice Chair), Richard Casavecchia, Donna Neville, Sheila Allen, Bapu Vaitla (arrived at 5:32 p.m.), Tom Stallard (arrived at 6:03 p.m.)
Members Absent: Lucas Frerichs
Item 1: Welcome
and Approval of the
Agenda
Chair Loren welcomed everyone. (Director Vaitla arrived at 5:32 p.m.) Director Neville made a motion to approve the April 9, 2026 Agenda, seconded by Director Allen. Motion passed unanimously.

Item 2. Public
Comment –
General and
Consent Items
There were no written or verbal public comments not on the agenda or on consent items.

Items 3-13.

Approval of the
Agenda and
Consent Agenda
Items / Resolutions
2026-007 through
2026-009
Motion made by Director Casavecchia to approve the Consent agenda items, seconded by Vice Chair Garcia-Cadena. Motion passed unanimously. The following items were:

3. Approved February 12, 2026 Board meeting Minutes;

4. Received 2026 long range calendar;

5. Received legislative update provided by Pacific Policy Group;

6. Received March 2026 regulatory update dated April 1, 2026 provided by Keyes & Fox;

7. Received Community Advisory Committee March 26, 2026 meeting summary;

8. Received Customer Participation update (Quarter 1 2026);

9. Received Enterprise Risk Management Report (Bi-Annual);

10. Approved updates to VCE’s Conflict of Interest Code as Resolution 2026-007;
006
VCEA Minutes April 9, 2026 Regular Board Meeting Page 2 of 4

11. Approved updates via Resolution to Exhibit C – Annual Energy Usage and Exhibit D – Voting Rights to VCE’s Joint Powers Authority as Resolution 2026-008;

12. Received process and schedule of Integrated Resource Plan update; and,

13. Received Treasury and financial update; ratified Investment Policy; and, approved via Resolution 2026-009 a one year extension of Second Amended and Restated Credit Agreement with River City Bank.

Item 14. Approve
Second
Amendment and
Restated Power
Purchase
Agreement for the
Gibson Project.
(Discussion/Action)
Resolution 2026-
010
VCE Chief Executive Officer Mitch Sears introduced this item. VCE Staff Chad Curran provided the background and history of the Gibson project since VCE signed the original Power Purchase Agreement (PPA) in 2020.

Mr. Curran highlighted the terms of the 2
nd Amended and Restated PPA,
including their support of VCE’s Microgrid Incentive Program (MIP) grant application which provides funds to support the development of microgrids to increase resiliency. Mr. Curran informed those present that the proposed microgrid location is within Gibson’s site area of Esparto and the surrounding areas.

The Board and Staff discussed: the project’s photovoltaic (PV) and battery energy storage system (BESS) capabilities; site and surrounding area site capabilities; and project economics, including prices. (Tom Stallard arrived at 6:03 p.m.) Mr. Curran commented that the Gibson project supports VCE’s Strategic Plan local procurement and resiliency goals. There were no verbal or written public comments.

Motion made by Director Allen to authorize the Chief Executive Officer to execute a second amended and restated power purchase agreement (PPA) and any necessary ancillary documents for the Gibson renewable photovoltaic (PV) plus battery energy storage system (BESS) project.

Motion was seconded by Director Vaitla. Motion passed with the following vote:

AYES: Garcia-Cadena, Casavecchia, Neville, Allen, Vaitla, Stallard, Loren
NOES: None
ABSENT: Frerichs
ABSTAIN: None
Item 15. Ratify
Valley Clean
Energy’s positions
Mr. Sears introduced this item and provided a brief description of the legislative bills: AB 1761 (Improving PCIA Transparency); SB 1138 (Resource Adequacy Transactability); and, AB 2383 (Large Load Rate 007
VCEA Minutes April 9, 2026 Regular Board Meeting Page 3 of 4 on the following
bills: A. support AB
1761 (Rogers); B.
support SB 1138
(Padilla); and, C.
oppose unless
amended AB 2383
(Zbur).

Setting Authority). Mr. Sears reminded those present that CalCCA is the sponsor of legislative bills AB 1761 and SB 1138. VCE Staff Yvonne Hunter provided a brief overview of AB 1761 and Mark Fenstermaker of Pacific Policy Group, VCE’s lobby consultant, provided the current status of this bill. VCE supports this bill.

Ms. Hunter provided brief overview of SB 1138 and Mr. Fenstermaker provided the current status of this bill. VCE supports this bill.

Ms. Hunter provided brief overview of AB 2383 and Mr. Fenstermaker provided the current status, noting that 5-6 Committee Members expressed support of their CCAs within their district. Mr. Fenstermaker informed those present that he expects this bill to go through amendments. VCE opposes unless amended AB 2383.

The Board and Staff discussed AB 2383 (Large Load Rate Setting Authority). There were no verbal or written public comments. Director Vaitla requested that two (2) separate motions be made, one motion for support of AB 1761 and SB 2238 and a second motion for AB 2383 oppose unless amended.

Director Vaitla made a motion to ratify VCE’s positions on the following bills: A) support AB 1761 (Improving PCIA Transparency) and B) support SB 1138 (Resource Adequacy Transactability), motion seconded by Director Neville. Motion passed with the following vote:

AYES: Garcia-Cadena, Casavecchia, Neville, Allen, Vaitla, Stallard, Loren
NOES: None
ABSENT: Frerichs
ABSTAIN: None
Chair Loren made a motion to ratify VCE’s position on C) oppose unless amended AB 2383 (Large Load Rate Setting Authority), motion seconded by Director Allen. Motion passed with the following vote:

AYES: Garcia-Cadena, Casavecchia, Neville, Allen, Stallard, Loren NOES: Vaitla
ABSENT: Frerichs
ABSTAIN: None
008
VCEA Minutes April 9, 2026 Regular Board Meeting Page 4 of 4 Item 16. Board
Member and Staff
Announcements.

A Board Member mentioned that the large load subject is a broader discussion that should include Yolo County.

Mr. Sears announced that VCE will be participating in the Winters Youth Day scheduled for Saturday, April 25th and at the California Honey Festival for two (2) days on May 16 – 17 at the Yolo County Fairgrounds.

At the CalCCA Conference, VCE is cohosting with Pioneer Community Energy a breakfast on Wednesday, May 13th. VCE Staff Rebecca Kuczynski informed those present that recruitment of VCE customers continues for the CHARGE Program (formerly known as REACT).

Item 17:

Announcement /
Adjournment
Chair Loren announced that there will be no May meeting due to the CalCCA Conference being held on May 12-14, 2026. The Board’s next regular meeting has been scheduled for Thursday, June 11, 2026 at the City of Davis Community Chambers. There being no further business to discuss, the meeting was adjourned at 6:55 p.m.

Alisa M. Lembke
VCEA Board Secretary
009
Item 4

VALLEY CLEAN ENERGY ALLIANCE
Staff Report - Item 4
____________________________________________________________________________________ TO: Board of Directors
FROM: Alisa Lembke, Board Clerk/Administrative Analyst
SUBJECT: Board and Community Advisory Committee 2026 Long-Range Calendar DATE: June 11, 2026
Recommendation
Receive and file the 2026 Board and Community Advisory Committee (CAC) long-range calendar listing proposed meeting topics. Please note that meeting locations and topics may change.

Attachment: 2026 Board and CAC long range calendar
010
6/3/2026

VALLEY CLEAN ENERGY
2026 Meeting Dates and Proposed Topics
Board and Community Advisory Committee (CAC)
(Note: Meeting locations and Topics are subject to change)

MEETING DATE TOPICS ACTION
January 8, 2026

CANCELLED
Board
(Woodland)
• Oaths of Office for Board Members (Annual - new Members only) (R) (placeholder)
• Election of Officers for 2026 (Annual) (R) (placeholder) • Customer Participation Update (4th Quarter 2025) (O)
(placeholder)
• 2025 Year-end review (R) (placeholder)
• VCE Employee Handbook Update (R) (placeholder)
• Annual Strategic Plan Report (R) (placeholder)
• Action
• Nominations
• Information
• Information
• Action
• Information
January 22, 2026 Advisory
Committee
(Woodland)
• Rates/Budget 2026 Update (O)
• Customer Participation Update (4th Quarter 2025) (O)
• Review and approve 2026 draft CAC Task Group(s) “Charges” (R) • Power Portfolio update (R)
• 2025 Year in review: Customer Care & Marketing (R)
• Information
• Information
• Discussion/Action
• Information
• Information
February 12, 2026 Board
(Davis)
• Oaths of Office for Board Members (Annual - new Members only) (R)
• Election of Officers for 2026 (Annual) (R)
• Customer Participation Update (4th Quarter 2025) (O)
• 2025 Year-end review (O)
• VCE Employee Handbook update (R)
• Annual Strategic Plan Report (R)
• Receive CAC 2025 Year-end Task Group Reports (O)
• Action
• Nominations
• Information
• Information
• Action
• Information
• Information
February 26, 2026
Cancelled
Advisory
Committee
(Davis)
• This meeting has been cancelled. •
March 12, 2026
Cancelled.

Board
(Woodland)
• This meeting has been cancelled. •
011
*No meeting unless an urgent matter needs to be addressed March 26, 2026 Advisory
Committee
(Woodland)
• Integrated Resource Plan (IRP) Update (O)
• Local Energy Task Group Update (O)
• Update on CalCCA sponsored legislative bills (O)
• Information
• Information
• Information
April 9, 2026 Board
(Davis)
• Receive Enterprise Risk Management Report (Bi-Annual) (R) • Customer Participation update (1st Quarter 2026) (O)
• Receive Treasury and Financial update; ratify Investment Policy; and extend RCB Credit Agreement (R/O)
• Update Exhibits C & D of VCE’s JPA (R)
• Update VCE’s Conflict of Interest Code (R)
• Brown Act compliance (R)
• Ratify VCE’s position on legislative bills
• Information
• Information
• Action
•
• Action
• Action
• Action
• Action
April 23, 2026
Cancelled.

Advisory
Committee
(Davis)
• This meeting has been cancelled. •
May 12-14, 2026 CalCCA Annual
Conference
(Sacramento)
VCE Staff and some Board and CAC members attending
May 14, 2026
Cancelled, may be
rescheduled.

Board
(Woodland)
• * No meeting due to CalCCA Annual Conference. A special meeting may be scheduled if an urgent matter needs to be addressed.
•
May 28, 2026 Advisory
Committee
(Woodland)
• 2025 Net Margin Allocation (R)
• Customer Participation update (1st Quarter 2026) (O)
• Seek feedback on updates to Integrated Resource Plan (O) • Receive update on three (3) legislative bills. (O)
• Recap of CalCCA May 2026 Annual Conference (O)
• Discussion/Action
• Information
• Discussion/Action
• Information
• Information
June 11, 2026 Board
(Davis)
• Re/Appointment of Members to Community Advisory
Committee (Annual) (R)
• Calendar Year 2025 Audited Financial Statements (James Marta & Co.) (placeholder) (R)
• Mid-Year 2026 Financial Update (R)
• 2025 Net Margin Allocation (R)
• CC Power Amendment to Fish Lake Geothermal PPA
• Summer Preparedness outlook (O)
• Receive annual Load Management Standards (LMS) update (O) • Recap of CalCCA May 2026 Annual Conference (O)
• Action
• Action
• Information
• Discussion/Action
• Action
• Information
• Information
• Information
012
*No meeting unless an urgent matter needs to be addressed June 25, 2026 Advisory
Committee
(Davis)
• Receive Summer Preparedness outlook (O)
• Receive annual Load Management Standards (LMS) update (O) • Seek recommendation to Board on updated Integrated Resource Plan (IRP) (O)
• Information
• Information
• Discussion/Action
July 9, 2026 Board
(Woodland)
• Customer Participation update (2nd Quarter 2026) (O)
• Approve updates to Integrated Resource Plan (IRP) (R) • Residential Dynamic Pricing Pilot Program (HFP) (placeholder) (O)
• CC Power – Willow Rock PPA (placeholder) (O)
• Indian Valley Long Term PPA (placeholder) (O)
• Information
• Discussion/Action
• Discussion/Action
• Discussion/Action
• Discussion/Action
July 23, 2026 Advisory
Committee
(Woodland)
• * Tentatively no meeting.

August 13, 2026 Board
(Davis)
• * Tentatively no meeting.

August 27, 2026 Advisory
Committee
(Davis)
• Customer Participation Update (2nd Quarter 2026) (O)
• Power Portfolio Update (O)
• Receive updated Integrated Resource Plan (IRP) (O)
• Information
• Information
• Information
September 10, 2026 Board
(Woodland)
• Certification of 2025 Power Content Label (Annual) (R) • Programs / 3 Year Programs Plan update (placeholder) (O) • Electric Vehicle (Charge Your Ride) Rebate Program (O) • Action
• Discussion/Action
• Discussion/Action
September 24, 2026 Advisory
Committee
(Woodland)
• •
October 8, 2026
Possibly meeting date
conflict with League
of Cities Annual
Conference
Board
(Davis)
• Enterprise Risk Management Update (Annual) (R)
• Customer Participation Update (3rd Quarter 2026) (O)
• Legislative End of Session Update (O)
• Programs / 3 Year Programs Plan update (placeholder) (O) • Discussion/Action
• Information
• Information
• Discussion/Action
October 22, 2026 Advisory
Committee
(Davis)
• 2025 Power Content Label Outreach (O)
• Customer Participation Update (3rd Quarter 2026) (O)
• Legislative End of Session Update (O)
• 2027 Legislative & Regulatory Platform
• Information
• Information
• Information
• Discussion/Action
November 12, 2026 Board
(Woodland)
• 2027 Preliminary Operating Budget (R)
• Contract Renewals (R) (placeholder)
• Approve 2027 Legislative and Regulatory Platform
• Information/Discussion
• Discussion/Action
• Discussion/Action
013
*No meeting unless an urgent matter needs to be addressed November 26, 2026
November 19, 2026
(rescheduled to
November 19 due to
Thanksgiving holiday
on Nov. 26th)
Advisory
Committee
(Woodland)
(Davis)
• Review CAC Draft 2026 Task Group Year-end Reports (R) • GHG Free Attributes (R) (placeholder)
• Discussion/Action
• Discussion/Action
December 10, 2026 Board
(Davis)
• Approve 2027 Operating Budget (Annual) and 2027 Customer Rates (R)
• Receive VCE Grant/Program Annual Report (R)
• GHG Free Attributes (R) (placeholder)
• Contract Renewals (R) (placeholder)
• Discussion/Action
• Information
• Discussion/Action
• Action
December 24, 2026
December 17, 2026
(rescheduled to
December 17 due to
Christmas Eve on
Dec. 24th)
Advisory
Committee
(Davis)
• Approve 2026 Task Group Year-end Reports (R)
• Power Portfolio Update (R)
• Election of Officers for 2027 (Annual) (R)
• Discussion/Action
• Information
• Nominations
January 14, 2027 Board
(Woodland)
• Oaths of Office for Board Members (Annual - new Members only) (R)
• Election of Officers for 2027 (Annual) (R)
• Customer Participation Update (4th Quarter 2026) (O)
• 2026 Year in review: Customer Care & Marketing (R)
• Receive 2026 Task Group Year-end Reports (R)
• VCE Employee Handbook Update (R)
• Annual Strategic Plan Report (R)
• Action
• Nominations
• Information
• Information
• Information
• Action
• Information
January 28, 2027 Advisory
Committee
(Woodland)
• Rates/Budget 2027 Update (O)
• Customer Participation Update (4th Quarter 2026) (O)
• Approve 2027 CAC Task Group(s) “Charges” (R)
• Information
• Information
• Discuss/Action
PLEASE NOTE: May 12-14, 2026: CalCCA Annual Conference in Sacramento, California

CAC PROPOSED FUTURE TOPICS
Topics and Discussion dates may change as needed

ESTIMATED MEETING DATE(S)
014
Item 5

VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 5 (a)
______________________________________________________________________________ TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer / Treasurer Mitch Sears, Chief Executive Officer
SUBJECT: Monthly Treasurer’s Report (Informational Item) – January 31, 2026 DATE: June 11, 2026
RECOMMENDATION:

Accept the Treasurer’s report on VCE’s cash, investments, debt, and unaudited financial statements (with comparative year to date information) and Actual vs. Budget year to date for the month ending January 31, 2026.

BACKGROUND & DISCUSSION:

The attached financial statements are prepared in a form to satisfy the debt covenants with River City Bank pursuant to the Line of Credit and are required to be prepared monthly.

The Financial Statements include the following reports:
• Statement of Net Position
• Statement of Revenues, Expenditures and Changes in Net Position • Statement of Cash Flows
In addition, Staff is reporting the Actual vs. Budget variances year to date ending January 31, 2026.

Financial Statements for the period January 1, 2026 – January 31, 2026 In the Statement of Net Position, VCE, as of January 31, 2026, has a total of $81,146,282 in its checking, money market and lockbox accounts, $1,100,000 restricted assets for the Debt Service Reserve account, and $1,800,000 restricted assets related to supplier deposits. On January 31, 2026, VCE’s net position was $96,309,464.

In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $5,746,928 of revenue (net of allowance for doubtful accounts), of which $5,844,312 was billed in, and $3,389,203 represents estimated unbilled revenue. The cost of electricity for the January revenue totaled $4,430,849. For January, VCE’s gross margin was approximately 25% and the net income totaled $1,018,692. The year-to-date change in net position was $1,018,692. 015
Item 5
In the Statement of Cash Flows, VCE cash flows from operations were $2,359,509 due to January cash receipts of revenues being more than the monthly cash operating expenses.

Bank Account Balances (as of 01/31/2026):

Operating Account $41,857,693
Insured Cash Sweep Account $40,047,394
Debt Service Account $1,100,000
CAISO Operational Account $7,435,307
Total Cash on Deposit $90,440,394
Note: VCE receives 6.19% interest earnings for the average balance on the ICS account and CAISO operational account equal to the Local Agency Investment Fund (LAIF) state investments rate. January 2026 earnings were $152,045.

VCE’s Outstanding Loan Balances (as of 01/31/2026):

Valley Clean Energy Alliance has available at the financial institution a line of credit totaling $11,000,000 with $7,000,000 withdrawal limit, which expires on April 15, 2026. The related debt outstanding at the close of business on January 31, 2026 was $0. VCE has issued, but undrawn, letters of credit for a total of $266,989 for regulatory.

Actual vs. Budget Variances for the year to date ending January 31, 2026 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – $2,673,348 and 83% – Favorable variance mainly driven by favorable PG&E PCIA rate adjustments than forecasted, resulting from final actual results for PG&E included in the December true-up process.
• Purchased Power – $727,849 and 20% – Unfavorable, mainly due to lower power costs resulting in less PPA cost recoveries and increased curtailment energy. • Programs $115,448 – 100% Favorable Variance due to timing differences from the anticipated EV phase II program being deferred to Q426.

Attachments:
1) Financial Statements (Unaudited) January 1, 2026 to January 31, 2026 (with comparative year to date information.)
2) Actual vs. Budget for the year to date ending January 31, 2026 016

VALLEY CLEAN ENERGY ALLIANCE

FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF JANUARY 1 TO JANUARY 31, 2026
PREPARED ON JUNE 3, 2026
017
2 ASSETS
Current assets:

Cash and cash equivalents $ 81,146,282
Accounts receivable, net of allowance 8,846,909
Accrued revenue 3,389,203
Prepaid expenses 210,733
Inventory - Renewable Energy Credits -
Other current assets and deposits 9,242,190
Total current assets 102,835,317
Restricted assets:

Debt service reserve fund 1,100,000
Total restricted assets 1,100,000
TOTAL ASSETS $ 103,935,317

LIABILITIES
Current liabilities:

Accounts payable $ 273,849
Accrued payroll 91,483
Interest payable -
Due to member agencies -
Accrued cost of electricity 3,403,961
Other accrued liabilities 1,995,765
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 60,795
TOTAL LIABILITIES $ 7,625,852

NET POSITION
Net position:

Designated Funds $ 18,849,585
Local Programs Reserve 2,709,585
Rate Stabilization 12,284,000
Customer Difidends 3,856,000
Restricted 1,100,000
Unrestricted 76,359,879
TOTAL NET POSITION $ 96,309,464

VALLEY CLEAN ENERGY ALLIANCE

STATEMENT OF NET POSITION
JANUARY 31, 2026
(UNAUDITED)
018
3 FOR THE

PERIOD ENDING
JANUARY 31, 2026 YEAR TO DATE

OPERATING REVENUE
Electricity sales, net $ 5,746,928 $ 5,746,928
Other revenue 6,375 $ 6,375
TOTAL OPERATING REVENUES 5,753,303 5,753,303

OPERATING EXPENSES
Cost of electricity 4,430,849 4,430,849
Contract services 237,730 237,730
Staff compensation 139,624 139,624
General, administration, and other 78,453 78,453
TOTAL OPERATING EXPENSES 4,886,656 4,886,656
TOTAL OPERATING INCOME (LOSS) 866,647 866,647

NONOPERATING REVENUES (EXPENSES)
Interest income 152,045 152,045
Interest and related expenses - -
Other Non Operating Revenues - -
TOTAL NONOPERATING REVENUES (EXPENSES) 152,045 152,045
CHANGE IN NET POSITION 1,018,692 1,018,692
Net position at beginning of period 95,290,772 95,290,772 Net position at end of period $ 96,309,464 $ 96,309,464 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
(UNAUDITED)

VALLEY CLEAN ENERGY ALLIANCE

STATEMENT OF REVENUES, EXPENDITURES AND
JANUARY 31, 2026
019
4 FOR THE

PERIOD ENDING
JANUARY 31, 2026 YEAR TO DATE

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 7,454,490 $ 7,454,490 Public purpose program receipts - -
Payments received from other revenue sources 6,375 6,375 Receipts for security deposits with energy suppliers - - Payments to purchase electricity (4,603,274) (4,603,274) Payments for contract services, general, and adminstration (329,096) (329,096) Payments for member agency services - -
Payments for staff compensation (168,985) (168,985)
Tax and surcharge payments to other governments - -
Other cash payments - -
Net cash provided (used) by operating activities 2,359,509 2,359,509

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Principal payments of Debt - -
Interest and related expenses - -
Other Non Operating Revenue - -
Net cash provided (used) by non-capital financing
activities - -

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of nondepreciable assets
Acquisition of capital assets
Net cash provided (used) by capital and related financing activities

CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 152,045 152,045
Net cash provided (used) by investing activities 152,045 152,045 NET CHANGE IN CASH AND CASH EQUIVALENTS 2,511,554 2,511,554 Cash and cash equivalents at beginning of period 79,734,728 79,734,728 Cash and cash equivalents at end of period 82,246,282 82,246,282 Cash and cash equivalents included in:

Cash and cash equivalents 81,146,282 81,146,282
Restricted assets 1,100,000 1,100,000
Cash and cash equivalents at end of period $ 82,246,282 $ 82,246,282 (UNAUDITED)

VALLEY CLEAN ENERGY ALLIANCE

STATEMENTS OF CASH FLOWS
JANUARY 31, 2026
(WITH YEAR TO DATE INFORMATION)
020
5 FOR THE

PERIOD ENDING
JANUARY 31, 2026 YEAR TO DATE
Operating Income (Loss) $ 866,647 $ 866,647
Depreciation expense
Increase (decrease) for uncollectible accounts 58,300 58,300 (Increase) decrease in net accounts receivable 1,260,181 1,260,181 (Increase) decrease in accrued revenue 374,475 374,475
(Increase) decrease in prepaid expenses (16,700) (16,700) (Increase) decrease in inventory - renewable energy credits - - (Increase) decrease in other assets and deposits - -
Increase (decrease) in accounts payable (18,688) (18,688) Increase (decrease) in accrued payroll (29,361) (29,361) Increase (decrease) in due to member agencies - -
Increase (decrease) in accrued cost of electricity (149,950) (149,950) Increase (decrease) in other accrued liabilities - -
Increase (decrease) security deposits with energy suppliers - - Increase (decrease) in user taxes and energy surcharges 14,606 14,606 Increase (decrease) in security deposits from energy suppliers - - Increase (decrease) in user taxes due to other governments - - Increase (decrease) in advances from public purpose programs - - Net cash provided (used) by operating activities $ 2,359,509 $ 2,359,509

RECONCILIATION OF OPERATING INCOME TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES
Adjustments to reconcile operating income to net cash provided

VALLEY CLEAN ENERGY ALLIANCE

STATEMENTS OF CASH FLOWS
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
JANUARY 31, 2026
021

VALLEY CLEAN ENERGY
2026 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 01/31/26
Description YTD
Actuals
YTD
Budget
YTD
Variance
% over
/-under
Total Revenues $ 5,905,348 $ 3,232,000 $ 2,673,348 83%
Electric Revenue $ 5,746,928 $ 3,120,000 $ 2,626,928 84% Interest Revenues $ 152,045 $ 110,000 $ 42,045 38%
Reimbursable Revenues $ 6,375 $ 2,000 $ 4,375 219%
Purchased Power $ 4,430,849 $ 3,703,000 $ 727,849 20%
Purchased Power Base $ 4,430,849 $ 3,520,000 $ 910,849 26% Purchased Power Contingency 5% $ - $ 183,000 $ (183,000) -100% Labor & Benefits $ 142,742 $ 179,000 $ (36,258) -20%
Salaries & Wages/Benefits $ 106,520 $ 145,000 $ (38,480) -27% Contract Labor $ 21,040 $ 18,000 $ 3,040 17%
Human Resources & Payroll $ 15,182 $ 16,000 $ (818) -5% Office Supplies & Other Expenses $ 23,800 $ 39,500 $ (15,700) -40% Technology Costs $ 5,584 $ 3,000 $ 2,584 86%
Office Supplies $ 716 $ 1,000 $ (284) -28%
Travel $ - $ 500 $ (500) -100%
CalCCA Dues $ 17,500 $ 16,000 $ 1,500 9%
CC Power $ - $ 18,000 $ (18,000) -100%
Memberships $ - $ 1,000 $ (1,000) -100%
Contractual Services $ 207,000 $ 223,150 $ (16,150) -7% Other Contract Services (e.g. IRP) $ - $ 12,500 $ (12,500) -100% Don Dame $ 306 $ 3,000 $ (2,694) -90%
Wholesale Energy Services (TEA) $ 74,912 $ 72,000 $ 2,912 4% 2030 100% Renewable & Storage $ - $ 2,500 $ (2,500) -100% Customer Support Call Center $ 84,697 $ 80,500 $ 4,197 5% Operating Services $ 26 $ 10,000 $ (9,974) -100%
Commercial Legal Support $ 16,269 $ 2,000 $ 14,269 713% Legal General Counsel $ 10,797 $ 7,000 $ 3,797 54%
Regulatory Counsel $ 14,494 $ 17,000 $ (2,506) -15%
Joint CCA Regulatory counsel $ - $ 1,600 $ (1,600) -100% Legislative - (Lobbyist) $ 5,500 $ 5,750 $ (250) -4%
Accounting Services $ - $ 300 $ (300) -100%
Financial Consultant $ - $ 1,500 $ (1,500) -100%
Audit Fees $ - $ - $ - 100%
Marketing $ 29,865 $ 32,500 $ (2,635) -8%
Marketing Collateral $ 29,865 $ 26,000 $ 3,865 15%
Community Engagement Activities & Sponsorships $ - $ 6,500 $ (6,500) -100% Programs $ (1,448) $ 114,000 $ (115,448) -101%
Program Costs (Rebates, Incentives, etc.) $ (1,448) $ 80,000 $ (81,448) -102% Member Agency Advisory Services $ - $ 2,000 $ (2,000) -100% HFP Pilot $ - $ 22,000 $ (22,000) -100%
PIPP Program $ - $ 10,000 $ (10,000) -100%
Rents & Leases $ 2,100 $ 4,350 $ (2,250) -52%
Hunt Boyer Mansion $ 2,100 $ 2,350 $ (250) -11%
Lease Improvement $ - $ 2,000 $ (2,000) -100%
Other A&G $ 51,688 $ 50,600 $ 1,088 2%
Development - New Members $ - $ 1,000 $ (1,000) -100%
Strategic Plan Implementation $ 1,796 $ 6,400 $ (4,604) -72% Strategic Plan Update & Community Focus Group $ - $ 10,000 $ (10,000) -100% PG&E Data Fees $ 44,117 $ 25,000 $ 19,117 76%
Insurance $ 5,775 $ 8,000 $ (2,225) -28%
Banking Fees $ - $ 200 $ (200) -100%
Miscellaneous Operating Expenses $ 61 $ 1,000 $ (939) -94% Contingency $ - $ 20,000 $ (20,000) -100%
0 0
TOTAL OPERATING EXPENSES $ 4,886,656 $ 4,367,100 $ 519,556 12% Interest on RCB Term loan $ - $ - $ - 100%
NET INCOME $ 1,018,692 $ (1,135,100)
022
Item 5

VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 5 (b)
______________________________________________________________________________ TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer / Treasurer Mitch Sears, Chief Executive Officer
SUBJECT: Monthly Treasurer’s Report (Informational Item) – February 28, 2026 DATE: June 11, 2026
RECOMMENDATION:

BACKGROUND & DISCUSSION:

The attached financial statements are prepared in a form to satisfy the debt covenants with River City Bank pursuant to the Line of Credit and are required to be prepared monthly.

Financial Statements for the period February 1, 2026 – February 28, 2026 In the Statement of Net Position, VCE, as of February 30, 2026, has a total of $82,736,841 in its checking, money market and lockbox accounts, $1,100,000 restricted assets for the Debt Service Reserve account, and $1,800,000 restricted assets related to supplier deposits. On February 30, 2026, VCE’s net position was $95,600,670.

In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $2,492,832 of revenue (net of allowance for doubtful accounts), of which $2,789,619 was billed in, and $3,321,506 represents estimated unbilled revenue. The cost of electricity for the February revenue totaled $2,954,361. For February, VCE’s gross margin was approximately -12%, and the net loss totaled $708,795. The year-to-date change in net position was $309,897. 023
Item 5
In the Statement of Cash Flows, VCE cash flows from operations were $1,590,558 due to February cash receipts of revenues being more than the monthly cash operating expenses.

Bank Account Balances (as of 02/28/2026):

Operating Account $43,593,026
Insured Cash Sweep Account $40,170,372
Debt Service Account $1,100,000
CAISO Operational Account $7,490,332
Total Cash on Deposit $92,353,731
Note: VCE receives 6.05% interest earnings for the average balance on the ICS account and CAISO operational account equal to the Local Agency Investment Fund (LAIF) state investments rate. February 2026 earnings were $145,567.

VCE’s Outstanding Loan Balances (as of 02/28/2026):

Valley Clean Energy Alliance has available at the financial institution a line of credit totaling $11,000,000 with $7,000,000 withdrawal limit, which expires on April 15, 2026. The related debt outstanding at the close of business on October 31, 2026 was $0. VCE has issued, but undrawn, letters of credit for a total of $266,989 for regulatory.

Actual vs. Budget Variances for the year to date ending February 28, 2026 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – $2,566,747 and 43% – Favorable variance mainly driven by favorable PG&E PCIA rate adjustments than forecasted, resulting from final actual results for PG&E included in the December true-up process.
• Purchased Power – $87,210 and 1% – Unfavorable, mainly due to lower power costs resulting in less PPA cost recoveries and increased curtailment energy.
• Programs $186,670 – 100% Favorable Variance due to timing differences from the anticipated EV phase II program being deferred to Q426.

Attachments:
3) Financial Statements (Unaudited) February 1, 2026 to February 28, 2026 (with comparative year to date information.)
4) Actual vs. Budget for the year to date ending February 28, 2026 024

VALLEY CLEAN ENERGY ALLIANCE

FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF FEBRUARY 1 TO FEBRUARY 28, 2026
PREPARED ON JUNE 3, 2026
025
2 ASSETS
Current assets:

Cash and cash equivalents $ 82,736,841
Accounts receivable, net of allowance 6,420,406
Accrued revenue 3,321,506
Prepaid expenses 218,613
Inventory - Renewable Energy Credits -
Other current assets and deposits 9,297,215
Total current assets 101,994,581
Restricted assets:

Debt service reserve fund 1,100,000
Total restricted assets 1,100,000
TOTAL ASSETS $ 103,094,581

LIABILITIES
Current liabilities:

Accounts payable 271,582
Accrued payroll 110,535
Interest payable -
Due to member agencies -
Accrued cost of electricity 3,108,463
Other accrued liabilities 2,184,287
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 19,045
TOTAL LIABILITIES $ 7,493,911

NET POSITION
Net position:

Designated Funds $ 18,849,585
Local Programs Reserve 2,709,585
Rate Stabilization 12,284,000
Customer Difidends 3,856,000
Restricted 1,100,000
Unrestricted 75,651,085
TOTAL NET POSITION $ 95,600,670

VALLEY CLEAN ENERGY ALLIANCE

STATEMENT OF NET POSITION
FEBRUARY 28, 2026
(UNAUDITED)
026
3 FOR THE

PERIOD ENDING
FEBRUARY 28, 2026 YEAR TO DATE

OPERATING REVENUE
Electricity sales, net $ 2,492,832 $ 8,239,760
Other revenue - 6,375
TOTAL OPERATING REVENUES 2,492,832 8,246,135

OPERATING EXPENSES
Cost of electricity 2,954,361 7,385,210
Contract services 118,135 355,865
Staff compensation 163,986 303,610
General, administration, and other 110,712 189,165
TOTAL OPERATING EXPENSES 3,347,194 8,233,850
TOTAL OPERATING INCOME (LOSS) (854,362) 12,285

NONOPERATING REVENUES (EXPENSES)
Interest income 145,567 297,612
Interest and related expenses - -
Other Non Operating Revenues - -
TOTAL NONOPERATING REVENUES (EXPENSES) 145,567 297,612
CHANGE IN NET POSITION (708,795) 309,897
Net position at beginning of period 96,309,464 95,290,772 Net position at end of period $ 95,600,670 $ 95,600,670 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
(UNAUDITED)

VALLEY CLEAN ENERGY ALLIANCE

STATEMENT OF REVENUES, EXPENDITURES AND
FEBRUARY 28, 2026
027
4 FOR THE

PERIOD ENDING
FEBRUARY 28, 2026 YEAR TO DATE

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 5,133,804 $ 12,588,293 Public purpose program receipts - -
Payments received from other revenue sources - 6,375
Receipts for security deposits with energy suppliers - - Payments to purchase electricity (3,318,539) (7,921,813) Payments for contract services, general, and adminstration (225,339) (554,435) Payments for member agency services - -
Payments for staff compensation (144,934) (313,919)
Tax and surcharge payments to other governments - -
Other cash payments - -
Net cash provided (used) by operating activities 1,444,992 3,804,501

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of nondepreciable assets
Acquisition of capital assets
Net cash provided (used) by capital and related financing activities

CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 145,567 297,612
Net cash provided (used) by investing activities 145,567 297,612 NET CHANGE IN CASH AND CASH EQUIVALENTS 1,590,558 4,102,113 Cash and cash equivalents at beginning of period 82,246,282 79,734,728 Cash and cash equivalents at end of period 83,836,841 83,836,841 Cash and cash equivalents included in:

Cash and cash equivalents 82,736,841 82,736,841
Restricted assets 1,100,000 1,100,000
Cash and cash equivalents at end of period $ 83,836,841 $ 83,836,841

VALLEY CLEAN ENERGY ALLIANCE

STATEMENTS OF CASH FLOWS
FEBRUARY 28, 2026
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
028
5 FOR THE

PERIOD ENDING
FEBRUARY 28, 2026 YEAR TO DATE
Operating Income (Loss) $ (854,362) $ 12,285
Depreciation expense
Increase (decrease) for uncollectible accounts 27,800 86,100 (Increase) decrease in net accounts receivable 2,587,224 3,847,405 (Increase) decrease in accrued revenue 67,697 442,172
(Increase) decrease in prepaid expenses (7,880) (24,580) (Increase) decrease in inventory - renewable energy credits - - (Increase) decrease in other assets and deposits - -
Increase (decrease) in accounts payable (2,267) (20,955) Increase (decrease) in accrued payroll 19,052 (10,310)
Increase (decrease) in due to member agencies - -
Increase (decrease) in accrued cost of electricity (350,523) (500,473) Increase (decrease) in other accrued liabilities - -
Increase (decrease) security deposits with energy suppliers - - Increase (decrease) in user taxes and energy surcharges (41,750) (27,144) Increase (decrease) in security deposits from energy suppliers - - Increase (decrease) in user taxes due to other governments - - Increase (decrease) in advances from public purpose programs - - Net cash provided (used) by operating activities $ 1,444,992 $ 3,804,501 (UNAUDITED)
FEBRUARY 28, 2026

RECONCILIATION OF OPERATING INCOME TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES
Adjustments to reconcile operating income to net cash provided

VALLEY CLEAN ENERGY ALLIANCE

STATEMENTS OF CASH FLOWS
(WITH YEAR TO DATE INFORMATION)
029

VALLEY CLEAN ENERGY
2026 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 02/28/26
Description YTD
Actuals
YTD
Budget
YTD
Variance
% over
/-under
Total Revenues $ 8,543,747 $ 5,977,000 $ 2,566,747 43%
Electric Revenue $ 8,239,760 $ 5,753,000 $ 2,486,760 43% Interest Revenues $ 297,612 $ 220,000 $ 77,612 35%
Reimbursable Revenues $ 6,375 $ 4,000 $ 2,375 59%
Purchased Power $ 7,385,210 $ 7,298,000 $ 87,210 1%
Purchased Power Base $ 7,385,210 $ 6,937,000 $ 448,210 6% Purchased Power Contingency 5% $ - $ 361,000 $ (361,000) -100% Labor & Benefits $ 309,142 $ 358,000 $ (48,858) -14%
Salaries & Wages/Benefits $ 245,554 $ 290,000 $ (44,446) -15% Contract Labor $ 35,698 $ 36,000 $ (302) -1%
Human Resources & Payroll $ 27,890 $ 32,000 $ (4,110) -13% Office Supplies & Other Expenses $ 55,235 $ 79,000 $ (23,765) -30% Technology Costs $ 14,847 $ 6,000 $ 8,847 147%
Office Supplies $ 4,053 $ 2,000 $ 2,053 103%
Travel $ - $ 1,000 $ (1,000) -100%
CalCCA Dues $ 35,000 $ 32,000 $ 3,000 9%
CC Power $ - $ 36,000 $ (36,000) -100%
Memberships $ 1,335 $ 2,000 $ (665) -33%
Contractual Services $ 320,532 $ 446,300 $ (125,768) -28% Other Contract Services (e.g. IRP) $ - $ 25,000 $ (25,000) -100% Don Dame $ 632 $ 6,000 $ (5,368) -89%
Wholesale Energy Services (TEA) $ 78,755 $ 144,000 $ (65,245) -45% 2030 100% Renewable & Storage $ - $ 5,000 $ (5,000) -100% Customer Support Call Center $ 162,046 $ 161,000 $ 1,046 1% Operating Services $ 460 $ 20,000 $ (19,540) -98%
Commercial Legal Support $ 13,570 $ 4,000 $ 9,570 239%
Legal General Counsel $ 33,951 $ 14,000 $ 19,951 143%
Regulatory Counsel $ 23,618 $ 34,000 $ (10,382) -31%
Joint CCA Regulatory counsel $ - $ 3,200 $ (3,200) -100% Legislative - (Lobbyist) $ 5,500 $ 11,500 $ (6,000) -52% Accounting Services $ - $ 600 $ (600) -100%
Financial Consultant $ - $ 3,000 $ (3,000) -100%
Audit Fees $ 2,000 $ - $ 2,000 100%
Marketing $ 36,415 $ 65,000 $ (28,585) -44%
Marketing Collateral $ 36,415 $ 52,000 $ (15,585) -30%
Community Engagement Activities & Sponsorships $ - $ 13,000 $ (13,000) -100% Programs $ 41,330 $ 228,000 $ (186,670) -82%
Program Costs (Rebates, Incentives, etc.) $ 41,330 $ 160,000 $ (118,670) -74% Member Agency Advisory Services $ - $ 4,000 $ (4,000) -100% HFP Pilot $ - $ 44,000 $ (44,000) -100%
PIPP Program $ - $ 20,000 $ (20,000) -100%
Rents & Leases $ 4,200 $ 8,700 $ (4,500) -52%
Hunt Boyer Mansion $ 4,200 $ 4,700 $ (500) -11%
Lease Improvement $ - $ 4,000 $ (4,000) -100%
Other A&G $ 81,724 $ 101,200 $ (19,476) -19%
Development - New Members $ - $ 2,000 $ (2,000) -100%
Strategic Plan Implementation $ 4,016 $ 12,800 $ (8,785) -69% Strategic Plan Update & Community Focus Group $ - $ 20,000 $ (20,000) -100% PG&E Data Fees $ 66,159 $ 50,000 $ 16,159 32%
Insurance $ 11,550 $ 16,000 $ (4,450) -28%
Banking Fees $ - $ 400 $ (400) -100%
Miscellaneous Operating Expenses $ 61 $ 2,000 $ (1,939) -97% Contingency $ - $ 40,000 $ (40,000) -100%
0 0
TOTAL OPERATING EXPENSES $ 8,233,850 $ 8,626,200 $ (392,350) -5% Interest on RCB Term loan $ - $ - $ - 100%
NET INCOME $ 309,897 $ (2,649,200)
030
Item 5

VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 5 (c)
______________________________________________________________________________ TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer / Treasurer Mitch Sears, Chief Executive Officer
SUBJECT: Monthly Treasurer’s Report (Informational Item) – March 31, 2026 DATE: June 11, 2026
RECOMMENDATION:

BACKGROUND & DISCUSSION:

The attached financial statements are prepared in a form to satisfy the debt covenants with River City Bank pursuant to the Line of Credit and are required to be prepared monthly.

Financial Statements for the period March 1, 2026 – March 31, 2026 In the Statement of Net Position, VCE, as of March 31, 2026, has a total of $82,728,341 in its checking, money market and lockbox accounts, $1,100,000 restricted assets for the Debt Service Reserve account, and $1,800,000 restricted assets related to supplier deposits. On March 31, 2026, VCE’s net position was $94,014,289.

In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $2,328,430 of revenue (net of allowance for doubtful accounts), of which $7,460,485 was billed in, and $3,410,317 represents estimated unbilled revenue. The cost of electricity for the March revenue totaled $3,552,778 For March, VCE’s gross margin was approximately 78% and the net loss totaled $1,586,381. The year-to-date change in net position was ($1,276,483). 031
Item 5
In the Statement of Cash Flows, VCE cash flows from operations were $3,233,387 due to March cash receipts of revenues being more than the monthly cash operating expenses.

Bank Account Balances (as of 03/31/2026):

Operating Account $43,467,291
Insured Cash Sweep Account $40,304,443
Debt Service Account $1,100,000
CAISO Operational Account $7,546,310
Total Cash on Deposit $92,418,044
Note: VCE receives 6.05% interest earnings for the average balance on the ICS account and CAISO operational account equal to the Local Agency Investment Fund (LAIF) state investments rate. March 2026 earnings were $ 154,521.

VCE’s Outstanding Loan Balances (as of 03/31/2026):

Valley Clean Energy Alliance has available at the financial institution a line of credit totaling $11,000,000 with $7,000,000 withdrawal limit, which expires on April 15, 2026. The related debt outstanding at the close of business on October 31, 2026 was $0. VCE has issued, but undrawn, letters of credit for a total of $266,989 for regulatory.

Actual vs. Budget Variances for the year to date ending March 31, 2026 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – $2,445,698 and 29% – Favorable variance mainly driven by favorable PG&E PCIA rate adjustments than forecasted, resulting from final actual results for PG&E included in the December true-up process.
• Purchased Power – $21,988 and 1% – Unfavorable, mainly due to lower power costs resulting in less PPA cost recoveries and increased curtailment energy.
• Labor & Benefits $72,267 and 13% – Favorable Variance due to vacancy for additional budgeted positions. VCE is currently recruiting for a Policy Analyst for Legislative and Regulatory Support. • CC Power $54,000 and 100% Favorable due to the timing difference between amortization of budgeted expenses and actual expenses.
• Programs $320,166 – 94% Favorable Variance due to timing differences from the anticipated EV phase II program being deferred to Q426.

Attachments:
5) Financial Statements (Unaudited) March 1, 2026 to March 31, 2026 (with comparative year to date information.)
6) Actual vs. Budget for the year to date ending March 31, 2026 032

VALLEY CLEAN ENERGY ALLIANCE

FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF MARCH 1 TO MARCH 31, 2026
PREPARED ON JUNE 3, 2026
033
2 ASSETS
Current assets:

Cash and cash equivalents $ 82,728,341
Accounts receivable, net of allowance 5,591,051
Accrued revenue 2,978,664
Prepaid expenses 199,514
Inventory - Renewable Energy Credits -
Other current assets and deposits 9,353,193
Total current assets 100,850,763
Restricted assets:

Debt service reserve fund 1,100,000
Total restricted assets 1,100,000
TOTAL ASSETS $ 101,950,763

LIABILITIES
Current liabilities:

Accounts payable 248,525
Accrued payroll 116,500
Interest payable -
Due to member agencies -
Accrued cost of electricity 3,453,414
Other accrued liabilities 2,281,334
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 36,702
TOTAL LIABILITIES $ 7,936,474

NET POSITION
Net position:

Designated Funds $ 18,849,585
Local Programs Reserve 2,709,585
Rate Stabilization 12,284,000
Customer Difidends 3,856,000
Restricted 1,100,000
Unrestricted 74,064,704
TOTAL NET POSITION $ 94,014,289

VALLEY CLEAN ENERGY ALLIANCE

STATEMENT OF NET POSITION
MARCH 31, 2026
(UNAUDITED)
034
3 FOR THE

PERIOD ENDING
MARCH 31, 2026 YEAR TO DATE

OPERATING REVENUE
Electricity sales, net $ 2,328,430 $ 10,568,190
Other revenue - $ 6,375
TOTAL OPERATING REVENUES 2,328,430 10,574,565

OPERATING EXPENSES
Cost of electricity 3,552,778 10,937,988
Contract services 316,622 672,487
Staff compensation 153,154 456,764
General, administration, and other 46,778 235,943
TOTAL OPERATING EXPENSES 4,069,332 12,303,182
TOTAL OPERATING INCOME (LOSS) (1,740,902) (1,728,617)

NONOPERATING REVENUES (EXPENSES)
Interest income 154,521 452,134
Interest and related expenses - -
Other Non Operating Revenues - -
TOTAL NONOPERATING REVENUES (EXPENSES) 154,521 452,134
CHANGE IN NET POSITION (1,586,381) (1,276,483)
Net position at beginning of period 95,600,670 95,290,772 Net position at end of period $ 94,014,289 $ 94,014,289 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
(UNAUDITED)

VALLEY CLEAN ENERGY ALLIANCE

STATEMENT OF REVENUES, EXPENDITURES AND
MARCH 31, 2026
035
4 FOR THE

PERIOD ENDING
MARCH 31, 2026 YEAR TO DATE

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 3,615,331 $ 16,203,624 Public purpose program receipts - -
Payments received from other revenue sources - 6,375
Receipts for security deposits with energy suppliers - - Payments to purchase electricity (3,250,481) (11,172,294) Payments for contract services, general, and adminstration (380,681) (935,117) Payments for member agency services - -
Payments for staff compensation (147,189) (461,109)
Tax and surcharge payments to other governments - -
Other cash payments - -
Net cash provided (used) by operating activities (163,021) 3,641,479

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of nondepreciable assets
Acquisition of capital assets
Net cash provided (used) by capital and related financing activities

CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 154,521 452,134
Net cash provided (used) by investing activities 154,521 452,134 NET CHANGE IN CASH AND CASH EQUIVALENTS (8,500) 4,093,613 Cash and cash equivalents at beginning of period 83,836,841 79,734,728 Cash and cash equivalents at end of period 83,828,341 83,828,341 Cash and cash equivalents included in:

Cash and cash equivalents 82,728,341 82,728,341
Restricted assets 1,100,000 1,100,000
Cash and cash equivalents at end of period $ 83,828,341 $ 83,828,341

VALLEY CLEAN ENERGY ALLIANCE

STATEMENTS OF CASH FLOWS
MARCH 31, 2026
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
036
5 FOR THE

PERIOD ENDING
MARCH 31, 2026 YEAR TO DATE
Operating Income (Loss) $ (1,740,902) $ (1,728,617)
Depreciation expense
Increase (decrease) for uncollectible accounts 28,000 114,100 (Increase) decrease in net accounts receivable 898,402 4,745,807 (Increase) decrease in accrued revenue 342,842 785,014
(Increase) decrease in prepaid expenses 19,099 (5,481)
(Increase) decrease in inventory - renewable energy credits - - (Increase) decrease in other assets and deposits - -
Increase (decrease) in accounts payable (23,057) (44,012) Increase (decrease) in accrued payroll 5,965 (4,345)
Increase (decrease) in due to member agencies - -
Increase (decrease) in accrued cost of electricity 288,973 (211,501) Increase (decrease) in other accrued liabilities - -
Increase (decrease) security deposits with energy suppliers - - Increase (decrease) in user taxes and energy surcharges 17,657 (9,487) Increase (decrease) in security deposits from energy suppliers - - Increase (decrease) in user taxes due to other governments - - Increase (decrease) in advances from public purpose programs - - Net cash provided (used) by operating activities $ (163,021) $ 3,641,479 (UNAUDITED)
MARCH 31, 2026

RECONCILIATION OF OPERATING INCOME TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES
Adjustments to reconcile operating income to net cash provided

VALLEY CLEAN ENERGY ALLIANCE

STATEMENTS OF CASH FLOWS
(WITH YEAR TO DATE INFORMATION)
037

VALLEY CLEAN ENERGY
2026 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 03/31/26
Description YTD
Actuals
YTD
Budget
YTD
Variance
% over
/-under
Total Revenues $ 11,026,698 $ 8,581,000 $ 2,445,698 29% Electric Revenue $ 10,568,190 $ 8,245,000 $ 2,323,190 28% Interest Revenues $ 452,134 $ 330,000 $ 122,134 37%
Reimbursable Revenues $ 6,375 $ 6,000 $ 375 6%
Purchased Power $ 10,937,988 $ 10,916,000 $ 21,988 0%
Purchased Power Base $ 10,937,988 $ 10,376,000 $ 561,988 5% Purchased Power Contingency 5% $ - $ 540,000 $ (540,000) -100% Labor & Benefits $ 464,733 $ 537,000 $ (72,267) -13%
Salaries & Wages/Benefits $ 368,585 $ 435,000 $ (66,415) -15% Contract Labor $ 56,115 $ 54,000 $ 2,115 4%
Human Resources & Payroll $ 40,034 $ 48,000 $ (7,966) -17% Office Supplies & Other Expenses $ 87,788 $ 118,500 $ (30,712) -26% Technology Costs $ 28,201 $ 9,000 $ 19,201 213%
Office Supplies $ 4,982 $ 3,000 $ 1,982 66%
Travel $ 736 $ 1,500 $ (764) -51%
CalCCA Dues $ 52,500 $ 48,000 $ 4,500 9%
CC Power $ - $ 54,000 $ (54,000) -100%
Memberships $ 1,370 $ 3,000 $ (1,630) -54%
Contractual Services $ 631,582 $ 724,450 $ (92,868) -13% Other Contract Services (e.g. IRP) $ - $ 37,500 $ (37,500) -100% Don Dame $ 1,299 $ 9,000 $ (7,701) -86%
Wholesale Energy Services (TEA) $ 163,877 $ 216,000 $ (52,123) -24% 2030 100% Renewable & Storage $ - $ 7,500 $ (7,500) -100% Customer Support Call Center $ 329,334 $ 241,500 $ 87,834 36% Operating Services $ 460 $ 30,000 $ (29,540) -98%
Commercial Legal Support $ 25,888 $ 6,000 $ 19,888 331% Legal General Counsel $ 34,852 $ 21,000 $ 13,852 66%
Regulatory Counsel $ 36,872 $ 51,000 $ (14,128) -28%
Joint CCA Regulatory counsel $ - $ 4,800 $ (4,800) -100% Legislative - (Lobbyist) $ 16,500 $ 17,250 $ (750) -4%
Accounting Services $ - $ 900 $ (900) -100%
Financial Consultant $ - $ 4,500 $ (4,500) -100%
Audit Fees $ 22,500 $ 55,000 $ (32,500) -59%
Marketing $ 64,687 $ 98,500 $ (33,813) -34%
Marketing Collateral $ 64,687 $ 79,000 $ (14,313) -18%
Community Engagement Activities & Sponsorships $ - $ 19,500 $ (19,500) -100% Programs $ 21,834 $ 342,000 $ (320,166) -94%
Program Costs (Rebates, Incentives, etc.) $ 21,834 $ 240,000 $ (218,166) -91% Member Agency Advisory Services $ - $ 6,000 $ (6,000) -100% HFP Pilot $ - $ 66,000 $ (66,000) -100%
PIPP Program $ - $ 30,000 $ (30,000) -100%
Rents & Leases $ 6,300 $ 13,050 $ (6,750) -52%
Hunt Boyer Mansion $ 6,300 $ 7,050 $ (750) -11%
Lease Improvement $ - $ 6,000 $ (6,000) -100%
Other A&G $ 88,208 $ 201,600 $ (113,392) -56%
Development - New Members $ - $ 3,000 $ (3,000) -100%
Strategic Plan Implementation $ 4,684 $ 19,200 $ (14,516) -76% Strategic Plan Update & Community Focus Group $ - $ 30,000 $ (30,000) -100% PG&E Data Fees $ 66,200 $ 75,000 $ (8,800) -12%
Insurance $ 17,325 $ 24,000 $ (6,675) -28%
Banking Fees $ - $ 50,400 $ (50,400) -100%
Miscellaneous Operating Expenses $ 61 $ 3,000 $ (2,939) -98% Contingency $ - $ 60,000 $ (60,000) -100%
0 0
TOTAL OPERATING EXPENSES $ 12,303,182 $ 13,014,100 $ (710,918) -5% Interest on RCB Term loan $ - $ - $ - 100%
NET INCOME $ (1,276,483) $ (4,433,100)
038
Item 5

VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 5 (d)
______________________________________________________________________________ TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer / Treasurer Mitch Sears, Chief Executive Officer
SUBJECT: Monthly Treasurer’s Report (Informational Item) – April 30, 2026 DATE: June 11, 2026
RECOMMENDATION:

BACKGROUND & DISCUSSION:

The attached financial statements are prepared in a form to satisfy the debt covenants with River City Bank pursuant to the Line of Credit and are required to be prepared monthly.

Financial Statements for the period April 1, 2026 – April 30, 2026 In the Statement of Net Position, VCE, as of April 30, 2026, has a total of $81,949,978 in its checking, money market and lockbox accounts, $1,100,000 restricted assets for the Debt Service Reserve account, and $1,800,000 restricted assets related to supplier deposits. On April 30, 2026, VCE’s net position was $94,105,481.

In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $3,186,579 of revenue (net of allowance for doubtful accounts), of which $2,873,819 was billed in, and $3,341,625 represents estimated unbilled revenue. The cost of electricity for the April revenue totaled $2,872,577 For April, VCE’s gross margin was approximately 14% and the net income totaled $91,192. The year-to-date change in net position was ($1,185,291). 039
Item 5
In the Statement of Cash Flows, VCE cash flows from operations were ($934,669) due to April cash receipts of revenues being more than the monthly cash operating expenses.

Bank Account Balances (as of 04/30/2026):

Operating Account $42,282,795
Insured Cash Sweep Account $37,417,161
Debt Service Account $1,100,000
CAISO Operational Account $7,346,171
Total Cash on Deposit $88,146,127
Note: VCE receives 6.05% interest earnings for the average balance on the ICS account and CAISO operational account equal to the Local Agency Investment Fund (LAIF) state investments rate. April 2026 earnings were $156,306.

VCE’s Outstanding Loan Balances (as of 04/30/2026):

Valley Clean Energy Alliance has available at the financial institution a line of credit totaling $11,000,000 with $7,000,000 withdrawal limit, which expires on April 15, 2026. The related debt outstanding at the close of business on October 31, 2026 was $0. VCE has issued, but undrawn, letters of credit for a total of $266,989 for regulatory.

Actual vs. Budget Variances for the year to date ending April 31, 2026 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – $3,196,584 and 29% – Favorable variance mainly driven by favorable PG&E PCIA rate adjustments than forecasted, resulting from final actual results for PG&E included in the December true-up process and lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures.
• Purchased Power – $520,435 and 1% – Favorable, mainly due to lower power costs resulting in less PPA cost recoveries, increased curtailment energy, and lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures. • Programs $440,035 – 95% Favorable Variance due to timing differences from the anticipated EV phase II program being deferred to Q426.

Attachments:
7) Financial Statements (Unaudited) April 1, 2026 to April 30, 2026 (with comparative year to date information.)
8) Actual vs. Budget for the year to date ending April 30, 2026 040

VALLEY CLEAN ENERGY ALLIANCE

FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF APRIL 1 TO APRIL 30, 2026
PREPARED ON JUNE 3, 2026
041
2 ASSETS
Current assets:

Cash and cash equivalents $ 81,949,978
Accounts receivable, net of allowance 5,568,344
Accrued revenue 3,341,625
Prepaid expenses 216,214
Inventory - Renewable Energy Credits -
Other current assets and deposits 9,456,826
Total current assets 100,532,986
Restricted assets:

Debt service reserve fund 1,100,000
Total restricted assets 1,100,000
TOTAL ASSETS $ 101,632,986

LIABILITIES
Current liabilities:

Accounts payable 250,993
Accrued payroll 123,944
Interest payable -
Due to member agencies -
Accrued cost of electricity 3,007,995
Other accrued liabilities 2,287,903
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 56,668
TOTAL LIABILITIES $ 7,527,505

NET POSITION
Net position:

Designated Funds $ 18,849,585
Local Programs Reserve 2,709,585
Rate Stabilization 12,284,000
Customer Difidends 3,856,000
Restricted 1,100,000
Unrestricted 74,155,896
TOTAL NET POSITION $ 94,105,481

VALLEY CLEAN ENERGY ALLIANCE

STATEMENT OF NET POSITION
APRIL 30, 2026
(UNAUDITED)
042
3 FOR THE

PERIOD ENDING
APRIL 30, 2026 YEAR TO DATE

OPERATING REVENUE
Electricity sales, net $ 3,186,579 $ 13,754,769
Other revenue - 6,375
TOTAL OPERATING REVENUES 3,186,579 13,761,144

OPERATING EXPENSES
Cost of electricity 2,872,577 13,810,565
Contract services 111,808 784,295
Staff compensation 152,539 609,303
General, administration, and other 114,769 350,712
TOTAL OPERATING EXPENSES 3,251,693 15,554,875
TOTAL OPERATING INCOME (LOSS) (65,114) (1,793,731)

NONOPERATING REVENUES (EXPENSES)
Interest income 156,306 608,439
Interest and related expenses - -
Other Non Operating Revenues - -
TOTAL NONOPERATING REVENUES (EXPENSES) 156,306 608,439
CHANGE IN NET POSITION 91,192 (1,185,291)
Net position at beginning of period 94,014,289 95,290,772 Net position at end of period $ 94,105,481 $ 94,105,481 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
(UNAUDITED)

VALLEY CLEAN ENERGY ALLIANCE

STATEMENT OF REVENUES, EXPENDITURES AND
APRIL 30, 2026
043
4 FOR THE

PERIOD ENDING
APRIL 30, 2026 YEAR TO DATE
Operating Income (Loss) $ (65,114) $ (1,793,731)
Depreciation expense
Increase (decrease) for uncollectible accounts 28,600 142,700 (Increase) decrease in net accounts receivable 677 4,746,484 (Increase) decrease in accrued revenue (362,961) 422,053 (Increase) decrease in prepaid expenses (16,700) (22,181) (Increase) decrease in inventory - renewable energy credits - - (Increase) decrease in other assets and deposits - -
Increase (decrease) in accounts payable 2,468 (41,543)
Increase (decrease) in accrued payroll 7,445 3,100
Increase (decrease) in due to member agencies - -
Increase (decrease) in accrued cost of electricity (549,051) (760,551) Increase (decrease) in other accrued liabilities - -
Increase (decrease) security deposits with energy suppliers - - Increase (decrease) in user taxes and energy surcharges 19,966 10,479 Increase (decrease) in security deposits from energy suppliers - - Increase (decrease) in user taxes due to other governments - - Increase (decrease) in advances from public purpose programs - - Net cash provided (used) by operating activities $ (934,669) $ 2,706,811 (UNAUDITED)
APRIL 30, 2026

RECONCILIATION OF OPERATING INCOME TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES
Adjustments to reconcile operating income to net cash provided

VALLEY CLEAN ENERGY ALLIANCE

STATEMENTS OF CASH FLOWS
(WITH YEAR TO DATE INFORMATION)
044
5 FOR THE

RECONCILIATION OF OPERATING INCOME TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES
Adjustments to reconcile operating income to net cash provided

VALLEY CLEAN ENERGY ALLIANCE

STATEMENTS OF CASH FLOWS
(WITH YEAR TO DATE INFORMATION)
045

VALLEY CLEAN ENERGY
2026 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 04/30/2026
Description YTD
Actuals
YTD
Budget
YTD
Variance
% over
/-under
Total Revenues $ 14,369,584 $ 11,173,000 $ 3,196,584 29% Electric Revenue $ 13,754,769 $ 10,725,000 $ 3,029,769 28% Interest Revenues $ 608,439 $ 440,000 $ 168,439 38%
Reimbursable Revenues $ 6,375 $ 8,000 $ (1,625) -20%
Purchased Power $ 13,810,565 $ 14,331,000 $ (520,435) -4% Purchased Power Base $ 13,810,565 $ 13,622,000 $ 188,565 1% Purchased Power Contingency 5% $ - $ 709,000 $ (709,000) -100% Labor & Benefits $ 620,819 $ 716,000 $ (95,181) -13%
Salaries & Wages/Benefits $ 496,384 $ 580,000 $ (83,616) -14% Contract Labor $ 70,972 $ 72,000 $ (1,028) -1%
Human Resources & Payroll $ 53,463 $ 64,000 $ (10,537) -16% Office Supplies & Other Expenses $ 123,682 $ 177,500 $ (53,818) -30% Technology Costs $ 35,069 $ 12,000 $ 23,069 192%
Office Supplies $ 5,890 $ 4,000 $ 1,890 47%
Travel $ 11,144 $ 21,500 $ (10,356) -48%
CalCCA Dues $ 70,000 $ 64,000 $ 6,000 9%
CC Power $ - $ 72,000 $ (72,000) -100%
Memberships $ 1,580 $ 4,000 $ (2,420) -60%
Contractual Services $ 761,687 $ 947,600 $ (185,913) -20% Other Contract Services (e.g. IRP) $ - $ 50,000 $ (50,000) -100% Don Dame $ 1,640 $ 12,000 $ (10,360) -86%
Wholesale Energy Services (TEA) $ 235,462 $ 288,000 $ (52,538) -18% 2030 100% Renewable & Storage $ - $ 10,000 $ (10,000) -100% Customer Support Call Center $ 329,334 $ 322,000 $ 7,334 2% Operating Services $ 460 $ 40,000 $ (39,540) -99%
Commercial Legal Support $ 34,671 $ 8,000 $ 26,671 333% Legal General Counsel $ 32,744 $ 28,000 $ 4,744 17%
Regulatory Counsel $ 74,777 $ 68,000 $ 6,777 10%
Joint CCA Regulatory counsel $ - $ 6,400 $ (6,400) -100% Legislative - (Lobbyist) $ 22,000 $ 23,000 $ (1,000) -4% Accounting Services $ - $ 1,200 $ (1,200) -100%
Financial Consultant $ - $ 6,000 $ (6,000) -100%
Audit Fees $ 30,600 $ 55,000 $ (24,400) -44%
Marketing $ 72,036 $ 132,000 $ (59,964) -45%
Marketing Collateral $ 72,036 $ 106,000 $ (33,964) -32% Community Engagement Activities & Sponsorships $ - $ 26,000 $ (26,000) -100% Programs $ 20,965 $ 461,000 $ (440,035) -95%
Program Costs (Rebates, Incentives, etc.) $ 20,965 $ 320,000 $ (299,035) -93% Member Agency Advisory Services $ - $ 8,000 $ (8,000) -100% HFP Pilot $ - $ 88,000 $ (88,000) -100%
PIPP Program $ - $ 45,000 $ (45,000) -100%
Rents & Leases $ 8,400 $ 17,400 $ (9,000) -52%
Hunt Boyer Mansion $ 8,400 $ 9,400 $ (1,000) -11%
Lease Improvement $ - $ 8,000 $ (8,000) -100%
Other A&G $ 136,659 $ 257,700 $ (121,041) -47%
Development - New Members $ - $ 4,500 $ (4,500) -100%
Strategic Plan Implementation $ 10,508 $ 25,600 $ (15,092) -59% Strategic Plan Update & Community Focus Group $ - $ 45,000 $ (45,000) -100% PG&E Data Fees $ 66,200 $ 100,000 $ (33,800) -34%
Insurance $ 23,100 $ 32,000 $ (8,900) -28%
Banking Fees $ 36,852 $ 50,600 $ (13,748) -27%
Miscellaneous Operating Expenses $ 61 $ 4,000 $ (3,939) -98% Contingency $ - $ 80,000 $ (80,000) -100%
0 0
TOTAL OPERATING EXPENSES $ 15,554,875 $ 17,124,200 $ (1,569,325) -9% Interest on RCB Term loan $ - $ - $ - 100%
NET INCOME $ (1,185,291) $ (5,951,200)
046
Item 6
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 6
To: Board of Directors
From: Mark Fenstermaker, Pacific Policy Group
Subject: Legislative Update – Pacific Policy Group
Date: June 11, 2026
______________________________________________________________________________ Pacific Policy Group, VCE’s lobby services consultant, continues to work with Staff and the Community Advisory Committee’s Legislative - Regulatory Task Group (LRTG) continues to meet and discuss legislative matters. Below is a summary:

California’s 2026 legislative session has officially crossed the halfway mark as June gets underway and all active legislation had to pass its house of origin as of Friday. And the biggest question of the year will soon become a bit clearer – who will be the next Governor? The uncertainty regarding who will be on the November ballot for California’s top position has been the main story for the year so far, and, in many ways, has caused bigger policy proposals to simmer on the back burner. Those policy proposals that may still come include an extension of the Diablo Canyon Nuclear Power Plant and investor-owned utility liability related to wildfires.

Aside from the primary election, the month of June is mostly focused on the budget as this is the month that the Legislature and Governor must agree on the plan for the next fiscal year, which stars July 1. Back on May 14, Governor Newsom released his May Revision to his January proposal, updating revenue and expenditure projections. The state continues to bring in higher tax revenues than anticipated, and Governor Newsom has proposed to save some of these higher revenues to fill an anticipated shortfall next fiscal year in FY 2027-28. As such, the Governor is claiming that the state’s fiscal situation is balanced for both FY 2026-27 and FY 2027-28. The Legislative Analyst’s Office (LAO) does not agree; the LAO finds that the state continues to be in a structural deficit and is calling for additional cuts to expenditures to bring the budget truly into balance.

On the bills front, VCE continues to support and engage on CalCCA’s two sponsored bills, as well as maintaining the “Oppose Unless Amended” position on AB 2383 (Zbur) regarding data centers and contracts. CalCCA’s sponsored legislation, AB 1761 (Rogers) to increase PCIA data transparency and SB 1138 to allow for Resource Adequacy to be traded on an hourly basis, both passed off their respective floors. The scrutiny on both bills will intensify now that they are in the “opposing” house and will be heard in policy committees once again. The engagement on AB 2383 has been productive, although the results are still not quite there as the bill language still limits the rate structure that a CCA board may adopt as it relates to data centers. That said, 047
Item 6
2 conversations with the author and staff are trending in a direction that resolution seems within reach.

The legislative session concludes on August 31, a mere three months away and yet an eternity in terms of how Sacramento operates. VCE staff, the LRTG and PPG are currently examining the following bills and expect to evaluate more bills as they are identified as of interest to VCE and CCAs.

1. AB 1761 (Rogers) PCIA Transparency
Summary: Would require the PUC to ensure that all data serving as a basis for any decision or ruling issued by the commission, or in any proposal or analysis provided by commission staff, for the determination of the Power Charge Indifference Adjustment (PCIA) or any other resource or value included in the PCIA, is made available to load-serving entities and ratepayer advocates on behalf of customers.

Additional Information
• Next Hearing: The bill will be heard in Senate Energy, Utilities & Communications Committee.
• VCE has taken a support position.
• CalCCA is the sponsor of AB 1761
• Bill language: AB 1761

2. SB 1138 (Padilla) Resource Adequacy Transactability
Summary: Existing law requires the PUC, in consultation with the Independent System Operator, to establish resource adequacy (RA) requirements for all load-serving entities (LSE).

This bill would require the PUC to authorize a LSE to demonstrate compliance with RA requirements by selling to, or otherwise making transactions with, another LSE to meet not more than 25% of its compliance obligations with contracts that are of a short-term duration, and to authorize those transactions to be in the same unit of time.

Additional Information
• Next Hearing: The bill will be heard on June 10, 2026, in Assembly Utilities & Energy Committee.
• VCE has taken a support position.
• CalCCA is the sponsor of SB 1138
• Bill language: SB 1138

3. AB 2383 (Zbur) Electricity: Large Energy Use Facilities.

Summary: Existing law vests the PUC with regulatory authority over electrical corporations (IOUs) and to fix the IOUs’ rates and charges so that those rates and charges are just and reasonable. This bill would require the PUC, on or before January 1, 2028, in a new or existing proceeding, to provide for a classification of retail electricity consumers that are large energy use facilities, namely data centers, and has its own rate schedule, as specified. The bill would require any rate schedule adopted by the PUC for said facilities to meet specified requirements, including avoiding cost shifts between customers. This bill would require the PUC to require an IOU that is providing electricity service to a large energy use facility to enter into a contract with 048
Item 6
3 the large energy use facility to meet certain requirements, including that the contract endure for 15 years minimum.

As amended on the Assembly floor, SB 2383 removed the provisions from the previous version that permitted the CPUC to interfere with CCA contracts and rate setting authority over large loads. This was the critical issue with which CalCCA, VCE and other CCAs took exception and was the basis for CCA opposition unless amended. While the amendments address this key issue, they present other issues that need fixing. CalCCA has been in constructive conversations with the author, and we are cautiously optimistic that the bill will be amended in the Senate to address these drafting concerns.

Additional Information
• Next Hearing: The bill will be heard in Senate Energy, Utilities & Communications Committee.
• VCE has taken an Oppose Unless Amended position.
• CalCCA has taken an Oppose Unless Amended position
• Bill language: AB 2383

4. SB 886 (Padilla) California Technology Innovation and Ratepayer Protection Act.

Summary: This bill, the California Technology Innovation and Ratepayer Protection Act, would require the PUC, on or before July 1, 2027, to establish a rate structure that includes an IOU tariff for the interconnection of the participating customer facilities and the provision of transmission, distribution, and generation services to participating customers, as specified. The bill would require the commission, as part of establishing the electrical corporation tariff, to, at a minimum, establish eligibility criteria for participating customers, evaluate the risks and benefits of the IOU tariff to nonparticipating customers, ensure that the IOU tariff prevents the creation of stranded costs for, or cost shifts to, nonparticipating customers, and, for unbundled customers, ensure that charges generally included in the generation component of their bills are assessed separately from charges generally included in the transmission and distribution components of their bills.

Additional Information
• Next Hearing: The bill will be heard in Assembly Utilities & Energy Committee. • VCE has yet to take an official position.
• CalCCA has yet to take an official position.
• Bill language: SB 886

5. AB 1787 (Schultz) Dynamic Rate Option.

Summary: This bill would require the PUC to require an IOU, if the PUC approves the IOU’s request to upgrade its smart meter infrastructure relative to infrastructure in place on January 1, 2026, to offer all its customers at least one dynamic rate option no later than one year after the upgraded smart meter infrastructure is anticipated to be placed into service, as specified. 049
Item 6
4 There are some concerns that this bill would create additional challenges to CCAs obtaining data from IOUs, which is difficult enough as it is, whether for dynamic rates or other types of information sharing.

Additional Information
• Next Hearing: The bill will be heard in Senate Energy, Utilities & Communications Committee.
• VCE has yet to take an official position.
• CalCCA has yet to take an official position.
• Bill language: AB 1787
050
Item 7
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 7
To: Board of Directors
From: Keyes & Fox, Regulatory Consultant
Subject: Regulatory Monitoring Report – Keyes & Fox
Date: June 11, 2026
______________________________________________________________________________ Please find attached Keyes & Fox’s May 2026 Regulatory Memorandum dated June 3, 2026 an informational summary of the key California regulatory and compliance-related updates from the California Public Utilities Commission (CPUC).

Attachment: Keyes & Fox Regulatory Memorandum dated June 3, 2026 051

1 Valley Clean Energy Alliance
Regulatory Monitoring Report
To: Valley Clean Energy Alliance (VCE) Board of Directors From: Sheridan Pauker, Partner, Keyes & Fox LLP
Jason Hoyle, Director of Research, EQ Research LLC
Subject: Monthly Regulatory Update
Date: June 3, 2026
Keyes & Fox LLP and EQ Research LLC are pleased to provide VCE’s Board of Directors with this informational memo describing key California regulatory and compliance-related updates from the California Public Utilities Commission (CPUC) over the past two months.

NEWElectric Rate Design
Background: This proceeding will establish advanced electric rate design policies, including rate structures and components such as time-of-use (TOU), demand charges, and the design of demand flexibility and dynamic rates.

Additionally, rate design options to support electrification for large commercial and industrial (C&I) customers, as well as rate design options for data centers and other large load customers will also be addressed.

Recent Developments: On April 10, the CPUC issued an Order Instituting Rulemaking (OIR) establishing a new proceeding to address advanced electric rate design policies to update residential and non-residential rate structures and their underlying cost inputs. Opening comments on the OIR were submitted on May 11 and reply comments were submitted on May 21. CalCCA’s comments recommended that any tariff changes preserve customer choice and recognize the role of CCAs as the default generation providers for customers within their service territories, required information sharing between IOUs and CCAs on large load interconnection requests, and that the proceeding first determine whether data centers should receive distinct tariff treatment before moving on to broader rate reform issues and then revisiting the base service charge. On May 22, a Ruling scheduled the prehearing conference for June 18.

Analysis: This proceeding will not only address data center rates, but also consider a wide variety of rate-related topics such as demand charges, dynamic rates, and the AB 2109 exemption from non-bypassable or departing load charges for certain industrial customers that utilize process heat recovery technology.

Next Steps: The prehearing conference is scheduled for June 18.

Additional Information: Ruling (May 22, 2026); OIR (Apr. 10, 2026); Docket No. R.26-04-009.

NEWPG&E 2027 ERRA Forecast
Background: The annual Energy Resource and Recovery Account (ERRA) forecast proceedings establish the amount of the Power Charge Indifference Adjustment (PCIA) and other non-bypassable charges (NBCs) for the following year, as well as fuel and purchased power costs associated with serving bundled customers that utilities may recover in rates.

Recent Developments: On May 15, PG&E submitted its 2027 ERRA Forecast Application requesting a revenue requirement of $3.176 billion, which is approximately $84 million less than the approved revenue requirement of $3.260 billion in D.25-12-027. The 2027 revenue requirement will be updated in mid-October 2026 and is currently expected to have the valuation of pre-2019 banked RECs included in the update based on the initial outcome of the PCIA/ERRA Reform proceeding (R.25-02-005).

Analysis: At PG&E’s requested revenue requirement, residential CCA customer rates would decrease by approximately 7.3% to 21.7 cents/kWh, while bundled residential customer rates would decrease by approximately 5.7% to 35.7 cent/kWh.

Next Steps: Protests and responses to the Application are due June 17.

Additional Information: Application (May 15, 2026); Docket No. A.26-05-007.

PG&E Diablo Canyon 2027 & VPF
Background: During the period of extended operations for the Diablo Canyon Nuclear Plant, PG&E submits an annual application forecasting its costs, market revenues from CAISO, net costs allocated to ratepayers of each large IOU, and its plan for use of volumetric performance fees (VPFs) in the upcoming calendar year.

Recent Developments: Protests to PG&E’s Application were filed on April 29. A prehearing conference was held May 22.

Analysis: N/A.
052

2 Next Steps: A scoping memo and ruling is expected to be issued during the next few weeks.

Additional Information: Application (Mar. 27, 2026); Docket No. A.26-03-031.

Climate Credit OIR
Background: This rulemaking will explore potential approaches to supporting customer affordability through cap-and-trade program proceeds returned to electric consumers via the state Climate Credit. The proceeding is divided into two tracks, and the current Track 1 has a Phase 1A and a Phase 1B. Phase 1A will address the timing of the distribution of climate credits in 2026 and Phase 1B will address broader changes in the residential Climate Credit.

Recent Developments: On May 4, 2026, the CPUC issued D.26-04-036 requiring the IOUs to distribute this year’s Climate Credit in the high-usage months of August and September and to be accompanied by customer outreach and education efforts.

Analysis: The current-year revisions to the Climate Credit are focused on affordability and targeted to reduce electric bills during the highest-cost month. Potential future modifications may alter the timing of the distributions as well as the allocation of distributions amount customer classes and between to CARE/FERA customers.

Next Steps: More permanent potential changes to the Climate Credit will be considered in the upcoming Phase 1B, and they are focused on affordability and include eligibility to receive the credit, the timing of its distribution, number of annual distributions, and the methodology used to calculate the credit.

Additional Information: D.26-04-036 (May 4, 2026); D.26-03-013 (Mar. 25, 2026); Scoping Memo and Ruling (Feb. 3, 2026); Ruling (Oct. 31, 2025); OIR (Aug. 20, 2025); Docket No. R.25-07-013.

RPS Rulemaking
Background: This proceeding addresses ongoing Renewables Portfolio Standard (RPS) requirements, including legislative mandates, and other matters related to the purchase of renewable energy. This proceeding is the forum for review of VCE’s RPS Procurement Plan and RPS Compliance reports.

Recent Developments: On May 5, the CPUC issued Draft Comment Resolution E-5457 updating the fixed avoided-cost rates for the Renewable Market Adjusting Tariff (ReMAT) program. On May 7, the CPUC issued a Notice that Final 2025 Renewables Portfolio Standard (RPS) Procurement Plans have been approved, including VCE’s 2025 RPS Plan.

Analysis: Several new RPS Plan requirements in this cycle address how the RPs Plan aligns with planned procurement identified in each LSE’s IRP filing and include reporting on progress towards existing and new Mid-Term Reliability procurement requirements.

Next Steps: Draft RPS Plans are due June 12, comments on Draft RPS Plans are due July 13, reply comments and motions to update RPS Plans are due July 27.

Additional Information: Approval Notice (May 7, 2026); Draft Comment Resolution E-5457 (May 5, 2026); Ruling (Mar. 27, 2026); VCE Amended Confidentiality Motion (Jan. 26, 2026); D.25-12-025 (Dec. 26, 2025); VCE RPS Compliance Report (Aug. 1, 2025); VCE 2025 Draft RPS Plan (Jun. 30, 2025); Ruling on 2025 RPS Plans (Apr. 17, 2025); Notice of RPS Plan Approval (Apr. 3, 2025); Scoping Memo and Ruling (May 9, 2024); OIR (Feb. 1, 2024); Docket No. R.24-01- 017.

RA Rulemaking
Background: This proceeding is the successor to R.23-10-011, and it will address the 2027 and 2028 RA compliance years, local RA obligations for the 2027-2029 and 2028-2030 compliance years, further refinements to the 24-hour Slice-of-Day (SOD) framework. Track 1 will consider accreditation for long-duration energy storage, unforced capacity outage rates for thermal resources, accreditation for solar and wind resources, and transactability within the SOD framework during the first half of 2026. Track 2 will address the planning reserve margin and coordination with the integrated resource plan proceeding.

Recent Developments: On June 1, the CPUC issued a Proposed Decision adopting local and flexible capacity obligations and program refinements. In the Proposed Decision, the Commission retains the current exceedance methodology but indicates willingness to consider probabilistic effective load carrying capacity proposals. The Storage resource capacity accreditation is adjusted to remove nonlinear output and only credit a continuous output level over four hours, the Proposed Decision declines to count energy-only resources for charging sufficiency of storage resources not co-located with the generation resource, and charging sufficiency will be incorporated into the RA penalty structure starting in the 2027 compliance year. Long-duration storage is defined as a storage resource capable of discharging at its maximum capacity for 8 or more hours, and multipliers based on the duration of discharge will be used to determine the forward-charging period duration. The unforced capacity outage framework will be addressed in track 2 of this proceeding for implementation in the 2028 RA year. The proposed Decision declines to adopt CalCCA’s recommended hourly load obligation trading. Beginning with the 2028 RA compliance year, IOUs are required to inform CCAs about new large loads such as data centers in the CCAs service area. 053

3 Analysis: The Proposed Decision provides guidance on long-awaited energy storage accreditation which will assist LSEs in planning for and meeting required procurement obligations. Likewise, the inclusion of information sharing requirements for new large loads will improve CCA planning and procurement and avoid challenges of supplying generation for unexpected new demand of a large magnitude on a short timeframe. However, the reluctance to adopt or develop hourly load obligation trading and the use of energy-only resources for charging sufficiency means that available existing resources will continue to not be utilized to the fullest extent possible for the immediate future.

Next Steps: The Proposed Decision may be heard as early as the July 2 Commission meeting. Comments on the Proposed Decision are due June 22 and reply comments are due June 29. Draft Loss of Load Expectation studies and Planning Reserve Margin proposals are due August 14 and final proposals are due in October.

Additional Information: Proposed Decision (Jun. 1, 2026); Ruling (Mar. 30, 2026); CalCCA Transactability issues Comments (Mar. 16, 2026); CalCCA Track 1 Comments (Mar. 6, 2026); CalCCA Transactability proposal Comments (Mar. 3, 2026); Ruling and Transactability Report (Feb. 24, 2026); Scoping Memo (Dec. 12, 2025); OIR (Oct. 15, 2025); Docket No. R.25-10-003.

IRP Rulemaking (2025)
Background: This proceeding governs the biennial Integrated Resource Plan (IRP) process, including load serving entity (LSE) procurement requirements, the establishment of a variety of state- and LSE-level load and procurement forecasts, greenhouse gas (GHG) reduction targets, ongoing reliability obligations, and the Commission’s oversight of the IOUs’ bundled procurement plans. This proceeding continues the work of R.20-05-003 and will be the primary forum for most future CPUC work on the Reliable and Clean Power Procurement Program framework (RCPPP).

Recent Developments: On April 6, a joint Application for Rehearing of D.26-02-057 was submitted requesting that direct access providers be excluded from allocations of the newly ordered procurement because of the statutory cap on enrolling new load. On June 1, LSEs filed mid-term reliability (MTR) procurement compliance updates. On June 1, IOUs filed their Bundled Procurement Plan (BPP) updates.

Analysis: If successful, the Application for Rehearing would reallocate the direct access portion of the new procurement to other LSEs, resulting in a slightly increased procurement amount for VCE.

Next Steps: VCE’s next IRP filing is due August 10, 2026. Comments on IRP filings are due September 21. Comments on proposed updates are expected to be due in Q3, and a proposed decision adopting updated BPPs is now expected in Q4.

Additional Information: Application for Rehearing (Apr. 6, 2026); Ruling (Mar. 9, 2026); D.26-02-057 and Attachment (Mar. 5, 2026); IRP Ruling (Jan. 16, 2026); Scoping Ruling (Oct. 28, 2025); Ruling (Sep. 30, 2025); OIR (Jul. 2, 2025); Docket No. R.25-06-019.

Demand Response Enhancements
Background: This proceeding seeks to enhance demand response (DR) resources by updating guiding principles, policies, and data system and process requirements. Demand response development is closely connected to the implementation of dynamic rates and real-time pricing (RTP), similar to VCE’s AgFIT Pilot, but across all customer classes.

Recent Developments: On April 8, a Ruling requested responses to additional questions on bridge-year funding and modified the schedule relating thereto.

Analysis: N/A.

Next Steps: A joint case management statement is due June 11, and, if needed, a hearing will be held in July. A Staff Proposal on data systems and processes to support DR, including dynamic rates, is expected in Q2 2026.

Additional Information: Ruling (Apr. 8, 2026); D.26-03-016 on Flex Alert Funding (Mar. 26, 2026); Ruling on Staff Proposal on IOUs Bridge Year Funding (Mar. 10, 2026); Scoping Memo and Ruling (Feb. 12, 2026); Ruling and Staff Proposal (Dec. 30, 2025); OIR and Guiding Principles (Sep. 29, 2025); Docket No. R.25-09-004.

PCIA/ERRA Reform
Background: This Rulemaking considers updates and reforms to the ERRA and Power Charge Indifference Adjustment (PCIA) rules and processes with the objectives of improving existing rules, mitigating rate volatility, and ensuring indifference among bundled and departing customers. Track 1 concluded in 2025, Track 2’s scope was revised to consider issues related to the valuation of pre-2019 RECs arising from 2026 ERRA forecast proceedings, and an additional Track 3 will be initiated later in 2026 to review broader issues.

Recent Developments: An April 24 Ruling cancelled the April 28 evidentiary hearing to allow party responses to the Staff Report and rescheduled the hearing for June 2, which will allow parties to further explain their preferred approach to valuing pre-2019 banked RECs. In the upcoming Track 3, a May 13 Ruling scheduled a multi-day workshop for June 8, 9, and 15 for party input on the scope and schedule for exploration of other approaches to indifference as well as data access and confidentiality issues.
054

4 Analysis: A valuation for pre-2019 banked RECs will reduce PCIA charges and customer bills for CCAs with customers who departed IOU generation service after 2019.

Next Steps: A proposed decision on pre-2019 banked REC valuation is expected by July 31. Track 3 scoping workshops will be held June 8, 9, and 15.

Additional Information: Ruling on hearing (May 28, 2026); Track 3 Workshop Ruling (May 13, 2026); Ruling (Apr. 24, 2026); Ruling and Staff Report (Mar. 27, 2026); Ruling (Feb. 20, 2026); Amended Scoping Memo (Feb. 3, 2026); Ruling (Dec. 26, 2025); CalCCA Petition for Writ of Review (Dec. 1, 2025); D.25-06-049 (Jun. 27, 2025); Scoping Memo (Apr. 8, 2025); ALJ Ruling (Mar. 21, 2025); Ruling & Staff Report on RA MPB (Feb. 26, 2025); OIR (Feb. 26, 2025); Docket No. R.25-02-005.

PG&E 2027 Phase 1 GRC
Background: Phase 1 General Rate Case (GRC) proceedings determine PG&E’s overall revenue requirement and classification of costs by function for a set period (in this case, 2027-2030).

Recent Developments: The evidentiary hearing was held in late April and early May.

Analysis: CalCCA’s cross examination of PG&E’s witnesses focused on two broad topics: hydro assets PG&E has erroneously kept in rate base despite the fact that they are not used and useful, and PCIA revintaging recommendations for eight hydro assets.

Next Steps: Opening briefs are due June 26 and reply briefs are due July 17. A proposed decision is expected in March 2027.

Additional Information: Ruling (Apr. 24, 2026); Ruling on schedule (Feb. 26, 2026); Amended Scoping Memo and Ruling (Jan. 26, 2026); Ruling (Jan. 16, 2026); Resolution SPD-37 (Dec. 10, 2025); Ruling (Nov. 24, 2025); CalAdvocates/SBUA Motion (Nov. 6, 2025); Ruling (Sep. 25, 2025); Scoping Memo and Ruling (Jul. 31, 2025); Application (May 16, 2025); Docket No. A.25-05-009.

Distribution Interconnection Rules
Background: This rulemaking will review and refine distribution-level interconnection rules under Electric Rule 21, particularly those for distributed energy resources (DER) for PG&E, SCE, SDG&E and the small and multijurisdictional electric utilities. Phase 1 will consider interconnection timelines and evaluation screens, and the interconnection process for resources not interconnecting under the net billing or net metering tariffs. Subsequent phases are undefined at present, but may address issues related to interconnection processes, pathways, and standards; sharing of upgrade costs; net billing and net metering interconnections; among other topics.

Recent Developments: On May 4, the Commission issued Resolution E-5436 directing the large IOUs to revise their online interconnection application websites to resolve ongoing data quality issues and expand the comprehensiveness of available data.

Analysis: The initial phase of this proceeding will address a limited set of issues related to the interconnection of large-scale projects that provide electricity to the grid rather than primarily for behind-the-meter uses. Phase 1 issues cover issues defined in two of the eight categories of interconnection-related issues.

Next Steps: A scope for Phase 2 will be developed based on comments and workshop feedback from Phase 1.

Additional Information: Resolution E-5436 (May 4, 2026); Scoping Memo and Ruling (Mar. 3, 2026); OIR (Jul. 25, 2025); Docket No. R.25-08-004.

PG&E 2025 ERRA Compliance
Background: The annual ERRA Compliance proceeding reviews the utility’s compliance with CPUC-approved standards for generation-procurement and cost recovery activity occurring in the prior year, such as energy resource contract administration, least-cost dispatch, fuel procurement, and balancing account entries.

Recent Developments: On May 26, the CPUC issued a Scoping Memo and Ruling establishing the schedule and issues to be addressed in this proceeding, such as whether PG&E prudently managed and operated its generation resources, whether PG&E complied with its Bundled Procurement Plan, and whether there were unrealized sales and revenues from its Public Safety Power Shutoff events..

Analysis: N/A.

Next Steps: Intervenor testimony is due September 9, a joint status conference is scheduled for October 30, and a proposed decision is expected in 2Q 2027.

Additional Information: Scoping Memo and Ruling (May 26, 2026); Application (Feb. 27, 2026); Docket No. A.26-02- 019.
055

5 City and County of San Francisco Municipalization
Background: The City and County of San Francisco (City or CCSF) filed this Petition in 2021 for a determination by the CPUC of just compensation for acquisition by the City of PG&E property (PG&E distribution and transmission assets to serve San Francisco) pursuant to Public Utilities Code §1401-1421.

Recent Developments: An April 2 Ruling denied PG&E’s Motion to dismiss or stay the proceeding due to insufficiency of CCSF’s opening testimony. On April 20, CCSF submitted a Notice of Availability of its amended and restated opening testimony. The testimony concludes that the fair market value of PG&E’s land, property and rights that the City intends to acquire was $3.4 billion as of July 27, 2021.

Analysis: After nearly 5 years of discovery and procedural motions, this proceeding is moving forward with the testimony phase on the appraised value of PG&E’s lands, property, and rights in San Francisco.

Next Steps: PG&E’s opening testimony is due October 20 and intervenor testimony is due December 22.

Additional Information: CCSF Notice of Testimony (Apr. 20, 2026); Ruling (Apr. 2, 2026); PG&E Motion (Mar. 30, 2026); Ruling (Mar. 10, 2026); Ruling (Feb. 18, 2026); Ruling on CCSF Motion to Compel (Jan. 12, 2026); D.25-10-039 (Nov. 6, 2025); Amended Scoping Memo (Jul. 1, 2025); Petition (Jul. 27, 2021); Docket No. P.21-07-012.

PG&E 2024 ERRA Compliance
Background: The annual ERRA Compliance proceeding reviews the utility’s compliance with CPUC-approved standards for generation-procurement and cost recovery activity occurring in the prior year, such as energy resource contract administration, least-cost dispatch, fuel procurement, and balancing account entries.

Recent Developments: On May 22, a Joint Settlement Motion was submitted by PG&E, CalAdvocates, and CalCCA.

Analysis: In the settlement agreement, PG&E agreed to include in future ERRA compliance cases several additional accounts for a review of accounting and for compliance with prior Commission decisions. Additionally, CalCCA’s concerns regarding PG&E’s retained RA and vintaging of CCA customers who opt out, relocate, and opt-in again were resolved in PG&E’s supplemental testimony and are now consistent with Commission guidance on vintaging.

Next Steps: N/A.

Additional Information: Joint Settlement Motion (May 22, 2026); Ruling (Feb. 2, 2026); Ruling requiring supplemental testimony (Dec. 22, 2025); Joint Status Conference Statement (Nov. 25, 2025); Scoping Memo and Ruling (May 2, 2025); PG&E 2024 ERRA Compliance Application (Feb. 28, 2025); Docket No. A.25-02-013.

PG&E Billing System Modernization
Background: This proceeding addresses PG&E’s plan to upgrade its legacy billing system, some portions of which date back to the mid-1990s. PG&E proposed a three-stage upgrade that would ultimately be complete in Q4 2029 and cost an estimated $761.3 million.

Recent Developments: PG&E submitted the third Joint Case Management Statement on May 7.

Analysis: Settlement negotiations between PG&E and the Joint CCAs are ongoing; however, there remain multiple facts in dispute related to how PG&E’s proposed new billing system will support or possibly disadvantage CCAs.

Next Steps: Evidentiary hearings begin on June 8, opening briefs are due July 16, and reply briefs are due August 13.

Additional Information: Joint Case Management Statement (May 7, 2026); (Ruling (Mar. 10, 2026); Ruling (Feb. 5, 2026); Ruling (Feb. 3, 2026); Ruling (Dec. 12, 2025); Ruling (Nov. 18, 2025); Ruling (Sep. 11, 2025); Joint Case Management Statement (Aug. 20, 2025); D.25-08-008 (Aug. 19, 2025); Joint CCA Testimony (Jun. 30, 2025); Scoping Memo (Mar. 27, 2025); Application (Oct. 23, 2024); Docket No. A.24-10-014.

Disconnections and Reconnections
Background: This proceeding addresses approaches to the disconnection and reconnection of electric customers with a focus on improving energy access and cost containment.

Recent Developments: On May 1, PG&E submitted its Arrearage Management Plan Annual Report. On May 28, The Utility Reform Network, Utility Consumers’ Action Network, National Consumer Law Center, and Center for Accessible Technology submitted a joint emergency Motion to reduce the statewide temperature threshold for suspending utility disconnections from 100°F to 90°F and requested the time for responses to the Motion be shortened from 15 days to 5 days.

Analysis: The joint emergency Motion was submitted in response to the IOUs missing the May 1 deadline in D.25-06-012 to implement new heat-based disconnection thresholds. The Commission recognized the growing need to reduce disconnections during extreme heat events in D.25-06-012, and Governor Newsom recently announced expanded features in the CalHeatScore System and emphasized the danger of extreme heat over the coming months.

Next Steps: Responses to the joint emergency Motion are due June 12.

Additional Information: Joint Emergency Motion (May 28, 2026); PG&E Arrearage Management Plan Annual Report (May 1, 2026); CBO Pilot Recommendations (Dec. 11, 2025); Ruling granting extension (Oct. 21, 2025); Ruling (Oct. 13, 056

6 2025); D.25-06-012 (Jun. 17, 2025); Phase 2 Scoping Memo (Jul. 15, 2022); OIR (Jul. 20, 2018); Docket No. R.18-07- 005.

Building Decarbonization
Background: This proceeding explores reduction of greenhouse gas (GHG) emissions associated with energy use in buildings. The current Phase 4 will consider whether modifications to electric line extension rules would assist under-resourced customers, electric baseline allowance modifications to encourage building decarbonization, and new programmatic approaches to building decarbonization.

Recent Developments: Comments in response to the March 30 Ruling entering pilot program draft reports into the record were submitted on April 14 and reply comments were submitted on April 27. PG&E’s comments recommend the Commission refine the Best Practices and Future Pathways Framework by explicitly incorporating broad implementation considerations such as long-term funding viability, affordability impacts, managed gas system transition planning, and institutional delivery capacity, with guidance on how program-level best practices relate to system-level planning, governance, and cross-agency coordination. The National Resources Defense Council’s comments recommended that the Commission’s Building Decarbonization Action Plan ensure electric rates support electrification, align funding streams with electrification goals, and transition from pilot programs to whole-home equity-centered delivery models.

Analysis: N/A.

Next Steps: N/A.

Additional Information: Ruling on Extension (Apr. 7, 2026); Scoping Ruling (Mar. 30, 2026); PG&E AL 7642-E (Jul. 15, 2025); D.25-06-034 (Jun. 20, 2025); PG&E AL 5074-G/7615-E (Jun. 5, 2025); Scoping Memo and Ruling (Jul. 1, 2024); OIR (Feb. 8, 2019); Docket No. R.19-01-011.

EV Rates & Infrastructure
Background: This rulemaking is the successor to R.18-12-006 and will focus on issues related to 1) timely energization of electric vehicle (EV) charging, 2) transportation electrification grid planning to support charging infrastructure deployment, 3) deployment of behind-the-meter (BTM) charging infrastructure to support state goals, 4) vehicle-grid integration (VGI), and 5) ongoing transportation electrification policy development and collaboration.

Recent Developments: No recent developments.

Analysis: N/A.

Next Steps: N/A.

Additional Information: VGI Workshop Report (May 27, 2026); PG&E AL 7884-E Technical Assistance Program Handbook (Apr. 6, 2026); Resolution E-5434 (Feb. 27, 2026); D.25-12-005 (Dec. 5, 2025); Ruling (Oct. 14, 2025); Ruling (Oct. 1, 2025); Joint Report on the CPUC’s Submetering and Telematics Workshop (Jun. 16, 2025); Scoping Memo and Ruling (Apr. 12, 2024); OIR (Dec. 20, 2023); Docket No. R.23-12-008.

PG&E 2023 Phase 2 GRC
Background: Phase 2 General Rate Case (GRC) proceedings determine PG&E’s marginal cost of service and revenue requirement allocation among customer classes for a set period (in this case, 2023-2026). This proceeding is also considering extension of existing dynamic rate pilots (including VCE’s AgFIT pilot, now expanded across PG&E territory) and other real-time pricing (RTP) pilots as well as post-pilot dynamic rates required by the CEC’s Load Management Standards.

Recent Developments: No recent developments.

Analysis: N/A.

Next Steps: Rebuttal testimony is due July 10, a meet and confer will be held July 20, and a Ruling on the need for evidentiary hearings is expected August 7. PG&E’s testimony on the extension of (and potential changes to) dynamic rate pilots is due June 8, and intervenor testimony is due October 30, or 60 days after the release of the Mid-Term and M&E RTP pilot results. Evidentiary hearings, if necessary, will follow.

Additional Information: Ruling (Jan. 27, 2026); Ruling (Jan. 7, 2026); Ruling (Jan. 2, 2026); Motion for bifurcated track (Nov. 6, 2025); PG&E Testimony and Change Tables (Oct. 29, 2025); Ruling (Oct. 9, 2025); Ruling (Aug.18, 2025); Request for scoping amendment (Jun. 12, 2025); PG&E AL 7588-E (May 2, 2025); Scoping Memo (Mar. 21, 2025); Application (Sep. 30, 2024); Docket No. A.24-09-014.

Other Dockets
The following table identifies other tracked dockets that are closed or inactive.

Docket Name Status
057

7 R.19-09-009 Microgrids
D.24-11-004 adopting implementation rules for multi-property microgrid tariffs closed the proceeding. An Application for Rehearing was denied by D.25-06- 067, and CalSSA’s Petition for Modification remains pending.

R.23-03-007 Wildfire Fund NBC
2024-2026
D.25-12-006 set the 2026 Wildfire NBC at $5.91/MWh - a slight decrease from the 2025 WF NBC charge of $5.95/MWh.

A.22-05-002
Demand Response
Programs (2023-
2027)
The proceeding was closed in May 2026 by D.26-05-036 which denied the Application for Rehearing.

A.21-06-021 PG&E 2023 Phase
1 GRC
This proceeding was closed in February 2026 with issuance of D.26-02-035.

A.22-02-015 PG&E 2021 ERRA
Compliance
This proceeding was closed in June 2025 with issuance of D.25-06-045, but was reopened in response to an August 2025 Application for Rehearing. 058
Item 8

VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 8
TO: Board of Directors
FROM: Alisa Lembke, Board Clerk / Administrative Analyst SUBJECT: Summary of Community Advisory Committee’s (CAC) May 28, 2026 meeting DATE: June 11, 2026
This report summarizes the Community Advisory Committee’s meeting held in person and via Zoom webinar on May 28, 2026. The CAC did not have a meeting in April 2026.

Thursday, May 28, 2026 Meeting:

A. 2025 Net Margin Allocation discussion and provide feedback. (Discussion) Staff provided various options/scenarios for allocating the estimated net margin for 2025.

Staff are seeking the CAC’s feedback to inform Staff’s recommendation to the Board on the 2025 allocation. CAC Members and Staff discussed topics such as: operational and rate stabilization reserves; local programs; and, Power Charge Indifference Adjustment (PCIA) and rates. CAC Members provided feedback to Staff on the approach of allocating the estimated net margin for 2025.

B. Receive update on Integrated Resource Plan (IRP) and provide feedback. (Discussion) Staff provided information on the proposed updates to the IRP and requested that the CAC provide feedback to inform Staff’s recommendation to the Board on the IRP updates. CAC Members and Staff discussed topics such as: load forecast modeling, including assumptions; resource types and costs; Resource Adequacy; and, VCE’s load requirements. CAC Members provided feedback to Staff on the draft IRP update. Staff informed the CAC that the CAC’s feedback will be included in the draft and be presented to the CAC at their next meeting for their recommendation to the Board.

C. Recap CalCCA 2026 Annual Conference. (Information) Staff and the CAC Members that attended the CalCCA 2026 Annual Conference held in Sacramento provided highlights and a few recommendations.
059
1 Item 9

VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 9
To: Board of Directors
From: Rebecca Kuczynski, Chief Customer Officer
Mitch Sears, Chief Executive Officer
Subject: VCE’s Load Management Standards Plan Annual Update Date: June 11, 2026
Requested Action
Informational item. No action requested.

Background
The California Energy Commission’s (CEC) Load Management Standards (LMS) are intended to help integrate renewables on the grid by aligning electricity use with generation and capacity.

The CEC’s goals are to improve air quality, help mitigate future climate change and create downward pressure on electric rates. The CEC requires that load-serving entities offer rates or programs that reflect real-time grid conditions, including dynamic rates. To meet the LMS, VCE is allowed to either create its own rates or programs or participate in PG&E’s programs and rate offerings.

The CEC’s primary objectives of the LMS encompass:

1. Ensuring all time-varying rates are uploaded to the Market Informed Demand Automation Server (MIDAS)

2. Developing a standard rate information access tool

3. Creating and submitting location marginal price-based rates that reflect marginal wholesale costs.

4. Educating customers on new time-varying rates and automation technologies VCE’s Board of Directors approved VCE’s revised Load Management Standards Plan April 10, 2025, and the CEC requires that VCE submit an annual LMS Plan Update, detailing any progress Toward stated LMS goals that VCE has made since the plan was submitted.

Progress - LMS Goals
Progress toward VCE’s LMS goals between April 2025-March 2026 included compliance-related items such as uploading rates into Market Informed Deman Automation Server (MIDAS) and adding Rate Identification Numbers (RINs) to customer bills in QR code format so that customers can scan and learn more about their electricity rates. VCE also made progress through the continuation of programs, as well as adding new program and rate designs. 060
2 Programs that demonstrated progress toward the load-shifting goals detailed in the LMS plan include:
• Electric Advisor: the free, concierge service for residential VCE customers that helps them to navigate electrification, energy efficiency, and other load-modifying installations
• REACT Pilot: designed to help non-residential customers transition to electric vehicles and shift their peak load, enroll in dynamic rates, and install bidirectional charging where applicable
• Hourly Flex Pricing: designed to help residential and non-residential customers to shift load through hourly price signals that incentivize load shifting VCE demonstrated progress on rates and programs under development, including:
• The Microgrid Incentive Program: application has been submitted for a $14M grant for a microgrid project in Capay Valley that would increase resiliency. Project would include front-of-the-meter batteries, solar, and property purchase and project management costs.
• Rate Design: VCE is exploring a new dynamic rate design that would incorporate elements of Time-of-Use (TOU) rates as well as hourly dynamic prices, to compensate for some issues that have arisen in the Hourly Flex Pricing pilot.

Conclusion
VCE has submitted the attached 2026 LMS Report to the CEC to meet its compliance obligations.

Attachment
Attachment A: VCE’s Annual LMS Report 2026 without Listing of RIN's 061
Valley Clean Energy | LMS Annual Report | Docket 23-LMS-01 1 Load Management Standards
Annual Report of Compliance Plan Implementation
Valley Clean Energy
May 11, 2026
062
Valley Clean Energy | LMS Annual Report | Docket 23-LMS-01 2 Table of Contents

1. Introduction ............................................................................................................................... 3

2. Time-dependent rate submission to MIDAS and RINs ............................................................. 3

2.1 MIDAS................................................................................................................................. 3

2.2 RINs .................................................................................................................................... 3

3. Participation in the development of an SST.............................................................................. 4

4. Development of load flexibility rates and programs .................................................................. 4

4.1 Active Load Flexibility Rates and Programs........................................................................ 4

4.1.1 HFP............................................................................................................................... 4

4.1.2 CHARGE Pilot .............................................................................................................. 4

4.1.3 Electric Advisor Program .............................................................................................. 4

4.1.4 REACT Pilot.................................................................................................................. 5

4.1.5 Issues with Hourly Flex Pricing (HFP) .......................................................................... 5

4.2 Rates and Programs Under Development .......................................................................... 5

4.2.1 Microgrid Incentive Program......................................................................................... 5

4.2.2 Other Dynamic Pilot Rate Designs ............................................................................... 5

4.3 Material Deviations.............................................................................................................. 6

4.4 Cost Effectiveness............................................................................................................... 6

5. Conclusion ................................................................................................................................ 7 063
Valley Clean Energy | LMS Annual Report | Docket 23-LMS-01 3

1. Introduction
In accordance with California Code of Regulations, Title 20, Section 1623.1(a)(3)(C) (20 CCR § 1623.1(a)(3)(C)), each Large Community Choice Aggregator (CCA) is required to submit to the Executive Director of the California Energy Commission (CEC) annual reports demonstrating its implementation of its Load Management Standards (LMS) Compliance Plan approved pursuant to 20 CCR § 1623.1(a)(3)(B). This report is required to be submitted one year after the compliance plan is approved pursuant to subsection 20 CCR § 1623.1(a)(2) and annually thereafter.

On May 9, 2024, the Valley Clean Energy Board of Directors approved Valley Clean Energy’s (VCE) LMS Compliance Plan. A revised version of VCE’s LMS Compliance Plan was submitted to the CEC on April 15, 2025, and approved by the CEC at its May 8, 2025, Business Meeting.

Since approval of the LMS Compliance Plan, VCE has progressed in the following areas relating to its LMS Compliance Plan:
• Submission of time-dependent rates to CEC's Market Informed Demand Automation Server (MIDAS) via the MIDAS API (20 CCR § 1623.1(c))
• Providing Rate Identification Numbers (RINs) on customer billing statements and online accounts using both text and QR code, including both VCE and PG&E RINs for unbundled customers (20 CCR § 1623(c)(4))
• Participation in the development of a Single Statewide RIN Access Tool (SST) (20 CCR § 1623(c)(1))
• Development of load flexibility rates and programs (20 CCR § 1623.1(a)-(b)) Updates for each LMS milestone are below.

2. Time-dependent rate submission to MIDAS and RINs

2.1 MIDAS
CEC mandated large CCAs, including VCE, to include a RIN on customer bills by April 1, 2024.

In compliance with this requirement, VCE implemented RIN and QR codes on customer bills.

Presently, QR codes do not link to a specific webpage, but this may be considered as more progress is made on the development of the Single Statewide Tool. VCE has been monitoring and engaging in the process with other regulated load serving entities (LSEs) to develop the statewide RIN tool pursuant to 20 CCR Section 1623(c). A proposed plan for the tool was submitted to the CEC for review on October 1, 2024.VCE will continue to collaborate with other LSEs and the CEC toward the implementation of the statewide RIN tool in a timely manner subject to the tool’s approval by the Commission.

2.2 RINs
Hourly rate tables for each of VCE's Time-of-Use (TOU) rates have been consistently uploaded to MIDAS, meeting both the format and technological delivery standards set by the CEC. VCE maintains the capability for continued compliance and will keep uploading time-dependent rates once dynamic rates are finalized in 2027 and thereafter. A list of Rate Identification Numbers (RINs) uploaded to MIDAS is provided in Attachment A.
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Valley Clean Energy | LMS Annual Report | Docket 23-LMS-01 4

3. Participation in the development of an SST
The Commission has extended the RIN Tool final plan deadline to May 8, 2029, in its Order No. 26-0312-03b docketed to Docket No. 23-LMS-01 on March 24, 2026. Further, CEC staff is planning to present an OIR for the Commission's approval at the Business Meeting in Q2 of 2026, which will likely address possible amendments to the RIN Tool requirement. VCE will continue to monitor and participate in the development and implementation of the Single Statewide Tool.

4. Development of load flexibility rates and programs

4.1 Active Load Flexibility Rates and Programs

4.1.1 HFP
VCE was the first CCA in California to pilot a dynamic rate in its (now closed) Agricultural Flexible Irrigation Technology, or AgFIT, Pilot for agricultural customers. When the California Public Utilities Commission decided to expand the pilot into PG&E’s Hourly Flex Pricing (HFP) Pilots, VCE was excited to participate, and is actively participating in both Pilot 1 and Pilot 2; as well as PG&E’s Vehicle-Grid Integration (VGI) Pilot. HFP Pilot 1 is offered to agricultural customers, and HFP Pilot 2 and VGI are offered to residential and non-residential customers that qualify under the eligibility rules laid out by the California Public Utilities Commission.

4.1.2 CHARGE Pilot
VCE’s is working with UC Davis and Panasonic on the active Coordinated Home Automation via Real-Time Grid Economics Study, or CHARGE Pilot. The pilot seeks to enroll a test bed of 25 single-family residential customers in a dynamic rate and is currently using HFP Pilot 2 for this rate. The CHARGE Pilot provides eligible customers with a range of incentives, which could include heat pump water heaters, electric vehicle chargers, and/or home battery storage; provides the software to automate the customer response to dynamic prices, and monitors customer load shift behavior. The pilot builds on a similar, successful pilot initiated by Sacramento Municipal Utilities District (SMUD), UC Davis and Panasonic. The pilot is currently enrolling customers but is facing a major hurdle in recruitment since PG&E does not support solar customers, as discussed in more detail in Section 4.1.5.

4.1.3 Electric Advisor Program
VCE operates a residential Electric Advisor program, which is a free service for VCE residential customers. The service is an enhanced customer care resource, otherwise known as a “concierge service,” which helps support customers who are trying to electrify their homes and/or become more energy efficient. The program integrates with VCE’s existing customer care, and customers receive a dedicated account manager who can scale their service level from simple questions to whole-home electrification plans, reviewing contractor bids, etc. 065
Valley Clean Energy | LMS Annual Report | Docket 23-LMS-01 5

4.1.4 REACT Pilot
Launched in early 2025, VCE’s Rural Electrification and Charging Technology (REACT) was designed to help businesses transition to electric vehicles by giving incentives for electric vehicle (EV) charging equipment. The program, which involves three partners – Gridtractor (the main grantee from the CEC’s REDWDs grant, Monarch Tractor, and VCE; also gives eligible participants the option to engage in bidirectional charging and enroll in dynamic electricity rates (through Hourly Flex Pricing) to shift load off peak times. REACT provides incentives for charging infrastructure, hardware, and software to lower the costs of deploying electric tractors and vehicles for customers. Work on the REACT Pilot has been paused, as one pilot partner (not VCE) is currently unable to maintain its scope.

4.1.5 Issues with Hourly Flex Pricing (HFP)
VCE offers HFP pilot rates to eligible customers, as well as incorporating HFP rates into other pilot program designs. This approach, though administratively simpler for VCE, has led to significantly lower enrollment in the connected pilots. For example, VCE’s active Coordinated Home Automation via Real-Time Grid Economics Study, or CHARGE Pilot, is currently using HFP for the pilot’s dynamic rate. Customers are required to be on a dynamic rate to enroll in CHARGE, and currently HFP is VCE’s only active dynamic rate.

PG&E is not supporting solar customers in its HFP Pilots and has no estimate of when it will be able to, which has been a not insignificant flaw in the Pilots’ rollout. Most of the customers that expressed interest in enrolling in CHARGE have been solar customers, which is causing VCE to explore dynamic rate options that could enroll solar customers, and can be deployed independently of the investor-owned utilities, though this is a large challenge for the agency, as VCE has a very small full-time staff for its size. This is discussed further in Section 4.2.2.

HFP constraints were also a barrier in the REACT Program – VCE supported a wider rates eligibility umbrella when the CPUC first proposed its decision, but ultimately, the eligibility was fairly restricted, and if customers wanted to enroll in HFP, many of them (including customers whose rate was eligible in the preceding AgFIT Pilot) would have had to change their rate to participate in HFP, which was a barrier to enrollment for many customers.

4.2 Rates and Programs Under Development

4.2.1 Microgrid Incentive Program
In December 2025, VCE submitted an application for the Microgrid Incentive Program, funded by the Public Purpose Program Charge (paid by all utility customers), and administered by PG&E. VCE applied for a $14 million Application Incentive Request (AIR). This covers eligible project engineering and development costs, such as in-front-of-the-meter (IFOM) batteries and generation resources, project management, and property purchase costs. This effort involved engagement of Yolo County stakeholders, including the Yocha Dehe Wintun Nation. The submission is pending, and awardees should be announced in Q2-Q3 2026.

4.2.2 Other Dynamic Pilot Rate Designs
Because PG&E is unable to enroll solar customers in HFP, VCE has begun to explore other options for dynamic rates. Not being able to include solar customers in pilots like the above-mentioned CHARGE Pilot, because they cannot enroll in HFP, is a major barrier to both 066
Valley Clean Energy | LMS Annual Report | Docket 23-LMS-01 6 recruitment and accurate Pilot results. VCE’s recent recruitment efforts with the CHARGE Pilot demonstrated that solar customers tend to be “early adopters,” and are eager to participate in load-shift pilots – most of the customers that applied to enroll in CHARGE were solar (NEM and Solar Billing Plan), and VCE was unable to enroll them because this pilot requires a dynamic rate and PG&E cannot support solar customers in HFP.

VCE is exploring different dynamic rate approaches and is in the design phase for a pilot dynamic rate that could be LMS-compliant. The rate would incorporate elements of Time-of-Use (TOU) rates, as well as a day-ahead hourly dynamic design. The pilot rate would allow solar customers to participate. However, if PG&E is ultimately unable to support solar customers in its HFP rates, complications could arise for VCE since CCAs do not set rates for transmission and delivery, and this may lead to complications for the non-generation portion of the pilot rate.

4.3 Material Deviations
VCE notes that the only material deviation did not concern the 2024 LMS Compliance Report directly and is not expected to adversely affect compliance with LMS regulations. However, the Report contains VCE's Board’s Strategic Plan goal mentioned in section 1.2.1. The former goal reads:

Procurement Strategy: Commitment to serving 100% of retail sales with renewable energy by 2030 The Board voted to change the goal when the Strategic Plan was renewed in 2025, partly in response to upcoming changes in hourly resource matching for Power Content Label calculations. The revised goal is [to]: Manage power supply resources to consistently exceed California’s Renewable Portfolio Standard (RPS) while working toward a resilient resource portfolio that is 100% Carbon-Free and a minimum of 90% Renewable by 2030. More information can be found in VCE’s 2025 Strategic Plan update here:
https://valleycleanenergy.org/wp-content/uploads/Item-13-VCE-2026-2029-Strategic-Plan-Major-Update-10-14-25.pdf.

4.4 Cost Effectiveness
The AgFIT Pilot’s final evaluation report1 was somewhat inconclusive on cost recovery. The data is based only on a subset of agricultural customers, and VCE is hesitant to apply these results to the cost effectiveness of other rate classes or pilots. As a result, VCE’s evaluation of cost effectiveness is based on this limited assessment. VCE anticipates being able to refine estimates to inform future updates of its Plan as more results become available in pilots being conducted around the state of California by other load-serving entities (LSEs). 1 https://www.dret-ca.com/wp-content/uploads/2025/04/VCE-AgFIT-Pilot-Final-Evaluation-Report.pdf. 067
Valley Clean Energy | LMS Annual Report | Docket 23-LMS-01 7

5. Conclusion
VCE has made progress on, and remained in compliance with its Board-approved Load Management Standards (LMS) Plan. VCE has continued to advance priorities shared by VCE and the State of California, including:
• Uploading rates into MIDAS;
• Implementing and maintaining RINs on customer bills;
• Participating in the development of a Statewide Tool; and • Development and implementation of load flexibility rates and programs.

VCE has also identified several challenges that could complicate further progress on LMS goals and priorities:
• PG&E's inability to support solar customers in HFP has created a significant recruitment barrier for VCE's pilots reliant on dynamic rates. VCE has begun exploring dynamic rate options that can be deployed independently and accommodate solar customers; and • The REACT Pilot has been temporarily paused due to circumstances outside of VCE's control, with updates to follow in the next Annual Report.

VCE remains committed to supporting its customers and service territory through its load flexibility efforts, and it will continue to evaluate rate and program designs that reflect its values of affordability, clean energy, and grid reliability as the LMS framework evolves. 068

ATTACHMENT A
VCE RINs Uploaded into MIDAS
PAGES 9 - 101 LISTING RINs HAVE BEEN REMOVED

FOR THIS STAFF REPORT
069
Item 10

VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 10
____________________________________________________________________________________ TO: Board of Directors
FROM: Sierra Huffman, Senior Financial Analyst – Rates and Power Costs SUBJECT: Approve Valley Clean Energy’s share of capacity from Amendment No. 1 to the Fish Lake Geothermal project
DATE: June 11, 2026

RECOMMENDATION
Approve Valley Clean Energy’s share of capacity from Amendment No. 1 to the Renewable Power Purchase Agreement (“PPA”) with Fish Lake Geothermal LLC for the Fish Lake geothermal project.

BACKGROUND
This includes up to the maximum available capacity of 19.8 MW multiplied by the 125% step-up provision in the Project Participation Share Agreement (“PPSA”).

Through the 2020 Integrated Resource Planning (“IRP”) proceeding, the California Public Utilities Commission (“CPUC”) identified a need for additional clean energy resources including firm, baseload, and storage resources. These additional resources were envisioned to support the ongoing grid integration of intermittent resources (e.g. solar, wind), to meet California’s greenhouse gas emission reduction goals, as well as allow for the retirement of carbon emitting or less desirable power plants.

In June 2021, as part of the 2020 IRP, the CPUC issued the Mid-term Reliability Procurement Order (“MTR Order” D.21-06-035), requiring jurisdictional load serving entities (“LSEs”), such as VCE, to procure and/or develop a collective 11,500 MW of new capacity by 2026. VCE’s share of the MTR Order is 44 MW which was determined based on VCE’s load compared to CPUC’s jurisdictional load.

Included within the MTR Order was an identified need of 1,000 MW of new incremental capacity from firm clean resources (“FCR”) delivered from geothermal and/or biomass resources with an on-line date by August 2026. VCE’s share of the FCR requirement is approximately 4 MW.

To meet the clean firm resource compliance requirements set forth in D.21-06-035, VCE supported CC Power signing a Power Purchase Agreement (“PPA”) in May 2022 with Fish Lake Geothermal LLC, a project company of Open Mountain Energy (“OME”), for 13 MW of energy, capacity and green attributes from the Fish Lake Geothermal project (“Fish Lake” or the “Project”) located in Esmeralda County, Nevada. In May 2024, CC Power and OME began discussions to amend the PPA to change the delivery point for CAISO imports from the Mona delivery point, which will revert to LADWP control in June 2027, and to amend the guaranteed commercial operation date of the Project due to permitting 070
2 delays. During those amendment discussions, Fish Lake triggered an event of default for failure to achieve the Guaranteed Construction Date, and the imposition of federal tariffs applicable to major equipment of the Project, led OME to request a price increase to cover the increased costs of construction of the Project. The proposed First Amendment resolves the event of default by updating the guaranteed construction date and guaranteed commercial operation date, updates the delivery point, increases CC Power’s potential offtake capacity from the Project, and adjusts the contract price to cover increased tariff costs.

CONTRACT STRUCTURE
The contract structures for Fish Lake Geothermal involved CC Power signing a power purchase agreement (PPA) with the Project seller and each of the participating community choice aggregators (CCAs) signing a project participation share agreement (PPSA) with CC Power. VCE will be one of many CC Power members sharing in the output, benefits, costs and obligations of the Project. As a project participant, VCE will receive the energy and PCC1 RECs for its portion of the Fish Lake Geothermal project. In addition, VCE will be able to count the capacity towards its resource adequacy and the MTR Decisions’ compliance requirements upon allocating its CAISO Import Allocation Rights to the Project.

CCA PARTICIPATION
The table below shows the expected share percentage and megawatts (MW) for each participating CC Power member under the PPSA. The PPSA has a step-up provision capped at 125% of the maximum available capacity of 19.8 MW. The step-up provision is necessary to ensure that the PPA between CC Power and the seller will continue in the event that one or more project participants default. In such case, rather than allowing the PPA to terminate, the remaining participants would increase their entitlement share.

Project
Participants
% Share Guaranteed
Capacity (MW)
Maximum Contract
Capacity (MW)
Potential Capacity with
125% Step-Up Entitlement
3CE 18.6% 2.42 3.68 4.60
CPSF 14.5% 1.89 2.87 3.59
PCE 17.8% 2.31 3.52 4.41
RCEA 2.8% 0.36 0.55 0.69
SJCE 17.4% 2.26 3.45 4.31
SVCE 14% 1.82 2.77 3.47
SCPA 11.7% 1.52 2.32 2.90
VCE 3.2% 0.42 0.63 0.79
Total 100% 13 19.8

PAST APPROVAL
On July 14, 2022, the Board authorized VCE’s Executive Officer to execute, as a member of CC Power, the Fish Lake Geothermal agreement and any associated ancillary documents. ///
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3 PPA AMENDMENT NO. 1 SUMMARY
The Amendment updates several contract provisions and is the result, in part, of shifting federal policy under the current administration. A general summary of amendments to the PPA are detailed below. • Incremental Capacity: As a condition to adjust the contract price, OME provided CC Power rights to additional capacity from the Project. The facility has a minimum capacity of 16 MW, with a target capacity of 19.8 MW. CC Power is guaranteed 13 MW of capacity, with 3 MW committed in a power purchase agreement to a third party. CC Power has exclusive rights to the additional 3.8 MW. In addition, if the 3 MW committed to the third party becomes available, CC Power is entitled to that 3 MW as well. CC Power has exclusive rights to these first

19.8 MW at the contract price. Finally, CC Power has right of first offer on any capacity greater than 19.8 MW.
• Guaranteed Commercial Operation Date: Bureau of Land Management (BLM) permitting timelines have extended due to the complex nature of permitting a geothermal project and staff shortages at the BLM generally. The Guaranteed COD has been extended to reflect the timeline for permitting and development of the project with a one-time damage payment to CC Power for delay.
• Delivery Point: Beginning in June 2027, Mona, the originally contemplated CAISO import point, will revert to LADWP control and will no longer be eligible as a CAISO intertie. To mitigate this, OME and CC Power have agreed to use an alternative delivery point at a CAISO intertie. • Contract Price: Due to the imposition of federal tariffs on foreign imports and OME’s dependency upon Chinese equipment, OME requested a price adjustment to cover the incremental costs of the project.

Term Original Amended
Portfolio Capacity &
Expected Annual
Energy
13 MW
VCE’s expected share
is 0.42 MW and 3,460
MWhs
Guaranteed capacity of 13 MW
Target capacity of 16.8 MW
Exclusivity up to 19.8 MW
Right to First Offer for > 19.8 MW
VCE’s expected share is 0.54 MW and
4,540 MWhs
Expected
Commercial
Operation
6/1/2024 7/1/2027
Guaranteed
Commercial
Operation Date
6/1/2024 10/1/2027
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4 Contract Price Confidential. Fixed
price $/MWh, no
escalation
Confidential. Fixed price $/MWh, no
escalation
Delivery Point Mona, unless able to
get Import Capability
at Gonder
Confidential
Settlement Point NP15 NP15

CONCLUSION
Staff is recommending Board approval of the Amendment to the Renewable Power Purchase Agreement with Fish Lake Geothermal LLC, approving VCE’s share of capacity up to the maximum available capacity of 19.8 MW multiplied by the 125% step-up provision in the PPSA. Should the Board fail to give approval, the PPSA will be amended to remove VCE as a Project Participant.

ATTACHMENTS

1. Fish Lake PPA Amendment No. 1 (Redacted)

2. Resolution 2026 -XXX
073

CONFIDENTIAL
1 AMENDMENT NO. 1

TO RENEWABLE POWER PURCHASE AGREEMENT
First Amendment
April 23, 2026 (the First Amendment Effective Date between California Community Power, a Buyer
Seller Party Parties terms
used and not defined in this First Amendment have the respective meanings assigned to them in the Agreement (as defined below).

RECITALS
A. The Parties entered into that certain Renewable Power Purchase Agreement, dated as of May 31, 2022 (as may be amended, amended and restated, supplemented or otherwise modified from time Agreement
B. The Agreement contains a Guaranteed Construction Start Date of January 1, 2024 and a Guaranteed Commercial Operation Date of June 1, 2024, which Seller failed to achieve due to interconnection and permitting delays.

C. Buyer permitted the maximum Development Cure Period under the Agreement to extend the Guaranteed Construction Start Date and the Guaranteed Commercial Operation Date, but Seller was still unable to achieve the extended Guaranteed Construction Start Date and Guaranteed Commercial Operation Date.

D. Due to the imposition of import tariffs on Facility equipment and development and construction delays, as of the First Amendment Effective Date, the Parties have agreed to a Contract Price increase.

E. Project
Maximum Capacity
Committed
Capacity Maximum
Available Capacity
products relating to the Maximum Available Capacity at the Contract Price and an option to purchase products from New Capacity that may become available at the Project.

F. The Parties now intend to amend the Agreement as set forth herein.

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. Amendments to the Agreement.
(a) The Cover Sheet is deleted in its entirety and replaced with Attachment A to this First Amendment.
(b) The following defined terms are added to the definitions in Section 1.1 in alphabetic order.

1. Additional Capacity
Capacity, as applicable, from the Project (i) that is greater than the Guaranteed 074
075

CONFIDENTIAL
3 3.1(b)(ii)(B), subject to the conditions in Section 3.1(b)(iii). (d) Section 2.2(f) is deleted in its entirety and replaced with the following:

Seller has obtained Firm Transmission Rights sufficient to deliver the Contract (e) Section 3.1 is deleted in its entirety and replaced with the following:

Purchase and Sale of Product/Contract Capacity
(a) Purchase and Sale of Product. Subject to the terms and conditions of this Agreement, during the Delivery Term, Buyer will purchase all the Product produced by or associated with the Installed Capacity from the Facility at the Contract Price, and Seller shall supply and deliver to Buyer all the Product produced by or associated with the Facility, except as permitted pursuant to Section 3.1(b)(v). At its sole discretion, Buyer may, during the Delivery Term, re-sell or use for another purpose all or a portion of the Product, provided that no such re-sale or use shall relieve Buyer of any obligations hereunder, including the last sentence of Section 5.2. During the Delivery Term, Buyer will have exclusive rights to offer, bid, or otherwise submit the Product, or any Capacity Attributes thereof, from the Facility after the Delivery Point for resale in the market, and retain and receive any and all related revenues. Buyer has no obligation to purchase from Seller any Product for which the associated Energy is not or cannot be delivered to the Delivery Point as a result of an outage of the Facility, a Force Majeure Event, a Curtailment Order, or relating to Additional Capacity prior to the Additional Capacity Initial Delivery Date. For the avoidance of doubt, settlement with CAISO shall not be deemed a sale by Seller to a third party of Product in contravention of this Section 3.1. (b) Contract Capacity. If at any time during the Term, Maximum Available Capacity becomes available as a result of plant performance as determined by Seller in its sole discretion or Committed Capacity becomes available, then, in addition to its rights to the Products associated with the Guaranteed Capacity, Buyer shall have the exclusive right to all Product associated with the Maximum Available Capacity or Committed Capacity, as applicable, at the Contract Price, except as otherwise provided in Section 3.1(b)(v). For the avoidance of doubt, except as otherwise set forth in this Agreement, Buyer shall have no right to the Committed Capacity or any products associated with such Committed Capacity unless such Committed Capacity becomes available and Buyer exercises its rights to such available Committed Capacity as set forth in this Section 3.1(b). (i) If Additional Capacity becomes available and Seller has obtained Firm Transmission rights to the Delivery Point for the Additional Capacity as set forth in Exhibit A, Seller shall promptly provide Notice to Buyer setting forth the amount of Additional Capacity with Firm Transmission rights to the Delivery Point and the expected date that Product can be delivered from the Additional Capacity to the Delivery Point using Firm Transmission rights.

Section 3.1(b)(i) is provided to Buyer after the Commercial Operation Date, Seller shall concurrently provide to Buyer an Installed Capacity Certificate in the form of Exhibit I that shall be used for updating the Installed Capacity pursuant to Section

3.1(b)(iii).
(ii) After Seller provides Notice to Buyer pursuant to Section 3.1(b)(i), 076

CONFIDENTIAL
4 Buyer shall cause the Project Participants to use commercially reasonable efforts to obtain Import Capability at the anticipated Delivery Point necessary to import the Net Qualifying Capacity from the Additional Capacity into the CAISO. (A) If the Project Participants are unable to obtain Import Capability for some or all of the Additional Capacity initially, Buyer shall cause the Project Participants to seek Import Capability for the Additional Capacity in subsequent import capability allocations, unless Buyer determines in its reasonable judgment that continued efforts are not commercially reasonable; provided that, notwithstanding Section 3.1(b)(v), if the Project Participants are unable to obtain Import Capability for the full amount o Section

3.1(b)(i) in three (3) consecutive annual CAISO Import Capability allocation processes and Buyer does not accept some or all of the Additional Capacity that did not receive Import Capability prior to thirty (30) days after the results of the third consecutive annual CAISO Import Capability allocation process have been released by CAISO, Seller shall be free to market and sell any products to third parties relating to the Additional Capacity of the Facility not accepted by Buyer pursuant to Section 3.1(b)(ii)(A) and Section 3.1(b)(ii)(B) and retain all proceeds related thereto. Seller shall use commercially reasonable efforts to support Buyer and Project Participants in obtaining such Import Capability. (B) Buyer shall provide Notice to Seller when the Project Participants have secured Import Capability at the Delivery Point for some or all of the Additional Capacity and/or if Buyer in its sole discretion elects to accept some or all of the Additional Capacity without Import Capability rights, which Notice shall set forth the amount of Additional Capacity that Buyer will accept and the date upon which deliveries of Product to Buyer from some or all of the Additional Capacity shall commence under this Agreement (which date cannot be earlier than the Commercial Operation Section 3.1(b)(i))
Additional Capacity Initial Delivery Date
Additional Capacity Initial Delivery Date will be extended to the actual date that Seller is able to deliver Additional Capacity to the Delivery Point using Firm Transmission rights if such date is after the date included in Section 3.1(b)(i). For avoidance of doubt,
Buyer may issue more than one Notice to Seller under this Section

3.1(b)(ii)(B) at any time prior to thirty (30) days after the results of the third consecutive annual CAISO Import Capability allocation process have been released by CAISO.
(iii)
Section 3.1(b)(ii)(B), (A) for all purposes under the Agreement, the Guaranteed Date) will include the Additional
r to the Commercial
the Commercial Operation Date). For the avoidance of doubt, any amount of 077

CONFIDENTIAL
5 Additional Capacity not accepted by Buyer under Section 3.1(b)(ii)(B) will not be included in the Guaranteed Capacity or Installed Capacity, as applicable, unless or until Buyer provides additional Notice to Seller that it has accepted some or all of the Additional Capacity amounts initially not accepted by Buyer and then, only to the extent of the additional accepted Additional Capacity. (iv) Seller shall provide additional Development Security or Performance Security, as applicable, to Buyer within sixty (60) days of the date of Section 3.1(b)(ii)(B) corresponding to the amount of
Additional Capacity accepted by Buyer. Provided, however, if this Agreement is der this Section

3.1(b)(iv), the Damage Payment shall be deemed to include Development Security in the amount of the Guaranteed Capacity, inclusive of the Additional Capacity accepted by Buyer.
(v) Notwithstanding any other provision of this Agreement, Seller may market and sell any products relating to the Additional Capacity of the Facility to third parties until the Additional Capacity Initial Delivery Date. Further, for any portion of the Additional Capacity that is not accepted by Buyer as of the Additional Capacity Initial Delivery Date, Seller may market and sell any products relating thereto until such time as Buyer accepts such incremental Available Capacity. For each month that includes sales of Product to third parties under this Section 3.1(b)(v), Seller shall pay to Buyer any revenues realized from sales of Product associated with the Available Capacity to third parties (including for the avoidance of doubt, sales to the CAISO or other balancing authority) that are in excess of the revenues Seller would have received through sales of the Product associated with the Available Capacity to Buyer at the Contract Price. Buyer shall have no responsibility or liability to Seller if the third party revenues are less than the amount Seller would have received from Buyer for sales of Product associated with the Available Capacity under this Agreement. Buyer shall have no obligation for any payment associated with the Available Capacity until Seller has commenced deliveries to Buyer of Product relating to the Additional Capacity at the Delivery Point as of the Additional Capacity Initial Delivery Date. (c) . If Seller installs
new power generation equipment at the Project that increases the capacity of the Project in New Capacity
may sell, market or deliver any Product associated with or attributable to such New Capacity to a party other than Buyer, unless (i) Seller has provided Buyer Notice of any New Capacity and the price and other material terms and conditions for which Seller will offer to sell product from such New Capacity to Buyer, and (ii) Buyer has, within sixty (60) sell, market or deliver any
product that is associated with or attributable to the New Capacity to any third party on terms and conditions no more favorable than those offered to Buyer. If Buyer does not sixty (60) days of receipt of such Notice,
land rights or interests in the Site (including the interconnection queue position of the 078

CONFIDENTIAL
6 Project) so long as the limitations contained in this Section 3.1(c) apply, unless the transferee agrees to be bound by the terms set forth in this Section 3.1(c) pursuant to a written agreement approved by Buyer in its reasonable discretion.

Seller shall indemnify and hold Buyer harmless from all benefits lost and other damages sustained by Buyer as a result of any breach by Seller of its covenants contained within this Section 3.1(c)
(f) Section 3.7(c) is deleted in its entirety and replaced with the following:

Buyer shall cause the Project Participants to use commercially reasonable efforts to obtain the Import Capability at the anticipated Delivery Point(s) as necessary to import the Guaranteed Net Qualifying Capacity from the Facility into the CAISO. Seller shall use commercially reasonable efforts to support Buyer and Project Participants in obtaining such Import Capability. To the extent Project Participants do not or cannot maintain Import Capability at the anticipated Delivery Point(s) necessary to support the importation of the Guaranteed Net Qualifying Capacity into the CAISO for reasons other than a Seller failure under this Agreement or the inability of Seller to maintain the Facility as a Pseudo-Tie Resource, the Capacity Attributes that are not imported or that cannot be imported shall (g) Section 11.1(b)(xi) is added as follows:

Seller fails to comply with the requirements of Section 3.1 (h) Section 13.1(i) is deleted in its entirety and replaced with the following:

Except as set forth in Exhibit A, Seller shall maintain rights sufficient to deliver the (i) Exhibit A is deleted and replaced as set forth in Attachment B to this First Amendment. (j) Section 5 of Exhibit B is deleted in its entirety and replaced with the following:

Failure to Reach Guaranteed Capacity. If, at Commercial Operation, the Installed Capacity is less than one hundred percent (100%) of the Guaranteed Capacity, Seller shall have ninety (90) days after the Commercial Operation Date to install additional capacity and/or Network Upgrades such that the Installed Capacity is equal to no less than the Guaranteed Capacity, and Seller shall provide to Buyer a new certificate substantially in the form attached as Exhibit I hereto specifying the new Installed Capacity. If Seller fails to Capacity Damages
to Buyer, in an amount equal to for each
Shortfall Capacity
and (b) the Guaranteed Capacity will reduced by an amount equal to the Shortfall Capacity (k) Exhibit N is deleted and replaced as set forth in Attachment C to this First Amendment. (l) Exhibit O is deleted and replaced as set forth in Attachment D to this First Amendment.

3. One Time Payment
pay to Buyer
_
079

CONFIDENTIAL
7 following the Commercial Operation Date.

4. Limited Effect. Except as expressly provided in this First Amendment, all of the terms and provisions of the Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties. Without limiting the generality of the foregoing, the amendments contained herein will not be construed as an amendment to or waiver of any other provision of the Agreement or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent of the other Party. On and after the First Amendment Effective Date, each reference in import will mean and be a reference to the Agreement as amended by this First Amendment.

5. Miscellaneous.
(a) This First Amendment is governed by and construed in accordance with, the laws of the State of California, without regard to the conflict of laws provisions of such State. (b) This First Amendment shall inure to the benefit of and be binding upon each of the Parties and each of their respective successors and permitted assigns. (c) The headings in this First Amendment are for reference only and do not affect the interpretation of this First Amendment.
(d) This First Amendment may be executed in counterparts, each of which is deemed an original, but all of which constitutes one and the same agreement. Delivery of an executed counterpart of this First Amendment electronically or by facsimile shall be effective as delivery of an original executed counterpart of this First Amendment. (e) This First Amendment constitutes the sole and entire agreement between the Parties with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter.
(f) Each Party shall pay its own costs and expenses in connection with this First Amendment (including the fees and expenses of its advisors, accounts and legal counsel). [Signature Page Follows]
080
8 IN WITNESS WHEREOF, the Parties have executed this First Amendment as of the First Amendment Effective Date.

FISH LAKE GEOTHERMAL LLC,
a Nevada limited liability company
By:

Name: Brady Olson
Title: Chief Executive Officer

CALIFORNIA COMMUNITY POWER,
a California joint powers authority
By:

Name: Alexander Morris
Title: General Manager
Approved as to form:

By:

Name: Joshua Nelson
Title: General Counsel
" '
081
082
10 Contract Price: Product:

Delivered Energy
Green Attributes (Portfolio Content Category 1) associated with Delivered Energy Capacity Attributes
. Ancillary Services
Scheduling Coordinator: Seller
Security:

CP Security:

Development Security: . Performance Security: .
083
11 ATTACHMENT B

EXHIBIT A

FACILITY DESCRIPTION
Site Name: Fish Lake Geothermal Project
Site location: T1S, R35E, Sections 11 SE/4, 12 S/2, 13 N/2, 14 NE/4; All within APN: BLM 007- 021-01
Total Acreage: 996.1 ac
City: 18 miles north of Dyer, Nevada
County: Esmeralda
Zip Code: 89010
Latitude and Longitude:
37°51'39.33"N, 118° 2'2.69"W
084
12 Facility Description: A geothermal power plant with a Guaranteed Capacity and Maximum Capacity as set forth herein.

Interconnection Point: The Facility shall interconnect to the NV Energy Silver Peak Substation.

Delivery Point: , provided, however, if and when the following conditions are satisfied, the Delivery Point will be
Seller shall
promptly provide Notice to Buyer upon the occurrence of conditions (i) and (ii) in the preceding sentence.

Settlement Point: TH_NP15_GEN-APND (or any successor aggregated pricing node for NP-15).

Facility Meter: See Exhibit P
Facility Metering Points: See Exhibit P
Transmission Provider: NV Energy
085
086
14 With additional Notices of an Event of
Default to:

With additional Notices of an Event of
Default to:

087
088
Item 10

VALLEY CLEAN ENERGY ALLIANCE
RESOLUTION NO. 2026-___

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE VALLEY CLEAN ENERGY

ALLIANCE APPROVING THE PROJECT CAPACITY INCREASE AND ALL OTHER TERMS INCLUDED IN AMENDMENT ONE (1) TO THE POWER PURCHASE AGREEMENT BETWEEN

FISH LAKE GEOTHERMAL, LLC AND CALIFORNIA COMMUNITY POWER FOR

THE FISH LAKE GEOTHERMAL PROJECT AND AUTHORIZING THE

CHIEF EXECUTIVE OFFICER IN CONSULTATION WITH LEGAL COUNSEL TO TAKE ANY ACTION NECESSARY TO MEMORIALIZE VALLEY CLEAN ENERGY ALLIANCE’S APPROVAL OF AMENDMENT ONE (1)
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, VCE is a member of California Community Power (CC Power) joint powers authority; and
WHEREAS, VCE in coordination with CC Power conducted a request for offers for firm clean resources (FCR) and engaged in negotiations for the Fish Lake Geothermal project being developed by Open Mountain Energy; and
WHEREAS, CC Power sought to execute agreements to effectuate its purchase of a geothermal project from Fish Lake Geothermal LLC based on the project’s desirable offering of products, pricing and terms; and
WHEREAS, the geothermal project will contribute to the regulatory requirement to procure firm clean resources for each of the CCAs that are participating in this project through CC Power by providing a geothermal resource for a term of twenty years; and WHEREAS, in 2022, staff presented to the Board for its review the Power Purchase Agreement and the Project Participation Share Agreement; and
WHEREAS, on July 14, 2022, the Board approved via Resolution 2022-023 authorizing VCE’s Executive Officer to execute the Agreements and any ancillary documents with Fish Lake Geothermal LLC, CC Power and participating CCAs in a form approved by legal counsel; and, 089
Item 10
WHEREAS, The Project has experienced delays due to permitting and cost increases related to federal tariffs; and
WHEREAS, CC Power has signed an amendment with Fish Lake Geothermal, LLC to give CC Power rights to incremental capacity, adjust the contract price, extend the guaranteed commercial operation date, and modify the delivery point.

NOW, THEREFORE, the Board of Directors of the Valley Clean Energy Alliance resolves as follows:

1. The Chief Executive Officer is authorized to take any action necessary to memorialize Valley Clean Energy Alliance’s approval of Amendment No. 1 to the power purchase agreement between Fish Lake Geothermal, LLC and California Community Power for the Fish Lake Geothermal Project.

PASSED, APPROVED AND ADOPTED, at a regular meeting of the Valley Clean Energy Alliance, held on the ________ day of ________ 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________________
Jesse Loren, VCE Chair
__________________________________
Alisa M. Lembke, VCE Board Secretary
Attachment: Amendment No. 1 to Fish Lake Geothermal Agreement (Redacted) 090
Item 11
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 11
TO: Board of Directors
FROM: Mitch Sears, Chief Executive Officer
Edward Burnham, Chief Financial Officer
Alisa Lembke, VCE Board Clerk/Administrative Analyst
SUBJECT: Consider Reappointment and Appointment to Jurisdiction seats on Community Advisory Committee
DATE: June 11, 2026

RECOMMENDATION

1. Consider reappointments/appointments to each jurisdiction seat for a three (3) year term to expire 2029 (Class 2).

BACKGROUND/ANALYSIS
The Board at their September 9, 2021 meeting, adopted a revised Community Advisory Committee (CAC) structure with eleven total members: eight jurisdictional members (two per jurisdiction) and three additional seats for At-large members intended to fill specific subject matter expertise/experience areas.

Class 2 appointments expire in June 2026 representing the jurisdiction seats: Davis, Woodland, Winters and Yolo County. Staff advertised on VCE’s website, through local newspapers and social media seeking applicants for all jurisdiction seats.

Mark Murray was recently appointed to represent Yolo County at the Board’s February 12, 2026 meeting. All three (3) incumbent CAC Members are seeking reappointment.

Jennifer Rindahl, past CAC Member, has resubmitted an application for consideration of appointment to represent the City of Winters. Ms. Rindahl served on the CAC from June 2020 - November 2025.

No other applications have been received.

The following CAC Members are seeking reappointment:
• Diccon Westworth - Woodland
• Ari Halberstadt - Davis
• Mark Murray – Yolo County
091
Item 11
2 CONCLUSION
Staff recommends the Board consider:

1. Reappointment of the following for a three (3) year term to expire 2028 (Class 2); • Woodland Rep. – Diccon Westworth
• Davis Rep. – Ari Halberstadt
• Yolo County Rep. – Mark Murray; and,

2. Appoint Jennifer Rindahl to represent the City of Winters for a three (3) year term to expire 2028 (Class 2).

Below is a listing of the other “classes” and their expiration terms:

CLASS 3 - term expires in June 2027:

At-Large - Lorenzo Kristov
At-Large - Keith Taylor
At-Large – Danielle Ballard
CLASS 1 - term expires in June 2028:

Winters Rep. – David Springer
Woodland Rep. – Mark Aulman
Davis Rep. – Rahul Athalye
Yolo County Rep. – Cynthia Rodriguez
Attachment: Jennifer Rindahl’s Application (Redacted)
092
093
What experience/perspective would you bring to the committee? Please reference the professional sector and related professional experience below for At-Large member applications in this section.

Please list your previous and present governmental and civic experience. Indicate when, position and duties:

List any special training or experience you have that you feel would benefit your committee service:

For over 20 years I have worked with local cities, counties, school and public transportation agencies to help them better communicate important issues about local services to their public.

My work with the UC Division of Agriculture and Natural Resources expanded my knowledge of sustainability issues, which was further expanded during my time running Delaine Eastin’s campaign for governor. On Delaine’s Campaign, I was responsible for drafting all policy items, including those centering around California’s infrasture and sustainability needs.

Consultant (numerous cities, counties, school and districts - 2016- Present) Consultant, Los Rios Community College District (2025-Present) Consultant, San Juan Unified School District (2023-2024) Consultant, San Francisco Municipal Transportation Association (June 2021 - Present) Board Member, CA Democratic Party (2019 - Present) Yolo County DCCC (2019-2023), Consultant, Peralta Community College District (August 2018- March 2019), Director of Advocacy, UC Division of Agriculture and Natural Resources, (2012-2015) Executive Consultant (numerous cities, counties, school and districts - 2002- 2012) I bring more than 20 years of experience in strategic communications, public policy, community outreach, and local government engagement, with a particular focus on helping public agencies communicate complex issues clearly and build public trust.

I previously served on the Valley Clean Energy Community Advisory Committee and understand the importance of community choice energy programs in advancing local clean energy goals, supporting climate action, and maintaining accountability to the communities they serve. I also bring experience working with UC Agriculture and Natural Resources, where I supported statewide advocacy, legislative engagement, and communications related to agriculture, research, sustainability, and community resilience.
094
Do you have any interests or associations which might present a conflict of interest? If yes, please explain:

What do you feel are your most important qualifications? What do you see as some of the significant issues facing the community in the next few years that might pertain to Valley Clean Energy's Community Advisory Committee? My strongest qualifications are my prior service on the Valley Clean Energy Community Advisory Committee, my 20+ years of experience in public agency communications and community engagement, and my ability to help translate complex policy and technical issues into clear, accessible information for residents. I also bring a strong understanding of local government, agriculture, sustainability, and the needs of Yolo County communities, which would allow me to contribute thoughtfully to VCE’s clean energy, affordability, and public trust goals.

Some of the most significant issues facing the community over the next few years include wildfire risk, grid reliability, rising energy costs, and the need for greater local energy resilience. As PG&E rates and infrastructure costs continue to increase, affordability will remain a major concern for residents, businesses, farms, and local agencies. At the same time, extreme heat, fire danger, blackouts, brownouts, and public safety power shutoffs make it increasingly important to invest in clean, reliable, locally controlled energy solutions. Valley Clean Energy’s Community Advisory Committee can play an important role in helping the agency balance climate goals, affordability, energy independence, and community trust while ensuring that residents understand both the challenges and the opportunities ahead.
095
6/3/26
096
Item 13

VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 13
______________________________________________________________________________ TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer
Mitch Sears, Chief Executive Officer
SUBJECT: Receive and approve the VCE’s audited CY 2025 financial statements presented by James Marta & Company
DATE: June 11, 2026

RECOMMENDATIONS

1. Accept and approve the Audited Financial Statements for the period of January 1, 2025, to December 31, 2025;

2. Accept the Communication with Governance Letter; and

3. Accept the Internal Control Letter

BACKGROUND & DISCUSSION
As described in VCE’s Joint Powers Agreement (JPA) section 3.9.3, the Treasurer shall function as the combined offices of Treasurer and Auditor pursuant to Government Code section 6505.6. As part of that role, the Treasurer shall cause an independent audit(s) of the finances of VCEA to be made by a certified public accountant, or a public accountant. Through VCE’s RFP process, James Marta & Company was selected and contracted to complete an independent annual audit of the attached financial statements.

The Calendar Year (CY) 2025 Financial Statements include the following reports:
• Independent Auditor’s Report
• Management’s Discussion and Analysis
• Statement of Net Position
• Statement of Revenues, Expenditures and Changes in Net Position • Statement of Cash Flows
• Notes to the Basis Financial Statements
As part of the accounting Professional standards, the auditors are required to communicate to the VCE Board of Directors about various matters relating to the audit, as noted in the following:
• Governance letter
097
Item 13
• Internal Control Letter
This report and attachments constitute the auditor’s communication to the Board.

AUDITOR’S FINDINGS
During the audit, the auditors found no material concerns over the financial statements and no material weakness in VCE’s internal controls. Specifically:
• VCE received an unqualified (“clean”) audit opinion, meaning the financial statements present VCE’s financial position fairly and appropriately
• VCE’s internal controls over financial reporting were considered by the auditor, with no material weakness in internal controls over financial reporting
• No significant issues were identified in working with our management team or performing the audit
Attachments:

1. Audited Financial Statements for the period of January 1, 2025 to December 31, 2025

2. Communication with Governance Letter

3. Internal Control Letter
098

VALLEY CLEAN ENERGY ALLIANCE

FINANCIAL STATEMENTS

FOR THE YEARS ENDED
DECEMBER 31, 2025 AND 2024
099

VALLEY CLEAN ENERGY ALLIANCE

TABLE OF CONTENTS
DECEMBER 31, 2025
PAGE
Independent Auditor’s Report 1
Management’s Discussion and Analysis 4

BASIC FINANCIAL STATEMENTS
Statement of Net Position 8
Statement of Revenues, Expenses and Changes in Net Position 9 Statement of Cash Flows 10
Notes to the Basic Financial Statements 11
100
James Marta & Company LLP
Certified Public Accountants
Accounting, Auditing, Consulting, and Tax
701 Howe Avenue, Suite E3, Sacramento, CA 95825 (916) 999-4180 fax (916) 993-9489 www.jpmcpa.com [email protected]
1 INDEPENDENT AUDITOR'S REPORT
Board of Directors
Valley Clean Energy Alliance
Davis, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Valley Clean Energy Alliance (VCE), which comprise the statements of net position as of and for the years ended December 31, 2025 and 2024, and the related statements of revenues, 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 referred to above present fairly, in all material respects, the financial position of VCE as of the years ended December 31, 2025 and 2024, and the results of its operations and its cash flows thereof 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) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the State Controller’s Minimum Audit Requirements for California Special Districts. 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 VCE and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. 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 VCE’s 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 VCE’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 101
2 Auditor’s Responsibilities for the Audit 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 and Government Auditing Standards 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 statement.

In performing an audit in accordance with GAAS and Government Auditing Standards, 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 audit 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 VCE’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 the VCE’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 audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
102
3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 1, 2026, on our consideration of the VCE’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the VCE’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the VCE’s internal control over financial reporting and compliance.

James Marta & Company LLP
Certified Public Accountants
Sacramento, California
May 1, 2026
103

MANAGEMENT DISCUSSION AND ANALYSIS
104

VALLEY CLEAN ENERGY ALLIANCE

MANAGEMENTS DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
4 The Management’s Discussion and Analysis provides an overview of Valley Clean Energy Alliance’s (VCE) financial activities for the years ended December 31, 2025 and December 31, 2024. The information presented here should be considered in conjunction with the audited financial statements.

BACKGROUND
The formation of VCE was made possible by the passage, in 2002, of California Assembly Bill 117, enabling communities to purchase power on behalf of their residents and businesses, and creating competition in power generation.

VCE was created as a California Joint Powers Authority (JPA) in January 2017 pursuant to the Joint Exercise of Powers Act and is a public agency separate from its members. Governed by a board of directors consisting of two elected officials representing each of the following local governments: the County of Yolo and the cities of Davis, Winters, and Woodland. VCE provides electric service to retail customers as a Community Choice Aggregation Program (CCA) under the California Public Utilities Code Section 366.2.

VCE’s mission is to deliver cost-competitive clean electricity, product choice, price stability, energy efficiency, and greenhouse gas emission reductions. VCE provides electric service to retail customers and has the rights and powers to set rates and charges for electricity and services it furnishes, incur indebtedness, and other obligations. VCE acquires electricity from commercial suppliers and delivers it through existing physical infrastructure and equipment managed by the California Independent System Operator (CAISO) and Pacific Gas and Electric Company (PG&E).

In June 2018, VCE began providing service to approximately 56,000 customer accounts as part of its initial enrollment phase. In calendar year 2020, VCE phased in approximately 7,000 Net Energy Metering (NEM) customers. In January 2021, VCE phased in approximately 7,100 customers from its new City of Winters jurisdiction.

Since its formation, VCE has operated with a fiscal accounting year ending on June 30, aligned with the Member Jurisdictions’ Fiscal Year. Since early 2020, VCE has seen high volatility in the energy sector and overall economy primarily driven by uncertainty associated with the COVID-19 pandemic and power market costs. Since the pandemic, VCE has rebuilt cash reserves and grown its financial strength (as envisioned in the Strategic Plan) in preparation for its initial investment grade credit rating. In 2025, VCE issued its first Clean Energy Purchase Contract - Prepayment Transaction for additional 14.4% cost saving in the initial 10.1 years and established an A- credit rating with S&P supporting long-term financial outlook. In addition, VCE has updated the cash reserve policy including the establishment of a rate stabilization fund for potential volatility and regulatory changes.

Financial Reporting
VCE presents its financial statements in accordance with Generally Accepted Accounting Principles for proprietary funds, as prescribed by the Governmental Accounting Standards Board.

Contents of this Report
This report is divided into the following sections:
• Management’s Discussion and Analysis, which provides an overview of operations. 105

VALLEY CLEAN ENERGY ALLIANCE

MANAGEMENTS DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
5 • The Basic Financial Statements, which offer information on VCE’s financial results. • The Statement of Net Position includes all of VCE’s assets, liabilities, and net position using the accrual basis of accounting. The Statement of Net Position provide information about the nature and amount of resources and obligations at a specific point in time.
• The Statement of Revenues, Expenses, and Changes in Net Position report all of VCE’s revenue and expenses for the period shown.
• The Statement of Cash Flows report the cash provided and used by operating activities, as well as other sources and payments, such as debt financing.
• Notes to the Basic Financial Statements, which provide additional details and information pertaining to the financial statements.

FINANCIAL AND OPERATIONAL HIGHLIGHTS
The following table is a comparative summary of VCE’s assets, liabilities, and net position.

Assets
Current assets ended December 31, 2025, at approximately $94.6 million, an increase of approximately $28.5 million compared to December 31, 2024. The primary contributor to the overall increase in current assets was an increase in cash resulting from setting competitive rates compared to PG&E and the building of operating and rate stabilization cash reserves. The VCE Board adopted a cost-based rate policy and automatic rate adjustment policy to continue to preserve and build cash reserves in preparation for sustaining our initial A- S&P investment grade credit rating.

Overall, non-current assets increased approximately $2.2M on December 31, 2025 due to a increase in restricted cash for power purchase reserves related to energy market deposits.

December 31,
2025
December
31, 2024
% change from
2024 to 2025
December 31,
2023
% change
from 2023 to
2024
Current assets $ 94,561,348 $ 66,069,072 43% $ 43,363,001 52% Noncurrent assets 8,446,172 6,206,446 36% 2,993,604 107% Total Assets 103,007,520 72,275,518 43% 46,356,605 56%
Current liabilities 7,716,748 9,011,806 -14% 10,073,964 -11% Total Liabilities 7,716,748 9,011,806 -14% 10,073,964 -11% Net Position
Designated – Local Programs 1,085,585 1,085,585 0% 840,000 29% Restricted 1,100,000 1,100,000 0% 1,100,000 0%
Unrestricted 93,105,187 61,078,127 52% 34,342,641 78%
Total Net Position $ 95,290,772 $ 63,263,712 51% $ 36,282,641 74% 106

VALLEY CLEAN ENERGY ALLIANCE

MANAGEMENTS DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
6 Liabilities
Current liabilities at December 31, 2025, were comprised primarily of the accrued cost of electricity, accounts payable, other accrued liabilities, and security deposits. Current liabilities decreased by $ 1.3M for the year ended December 31, 2025 due to decreased power costs for the winter of 2025.

VCE does not currently have outstanding Non-current liabilities. VCE paid its outstanding term loan with River City Bank (RCB) in 2023 scheduled to mature in 2024.

The following table is a summary of VCE’s results of operations:

Operating Revenues
In the year ended December 31, 2025, VCE’s operating revenues were approximately $12.8M below budgeted amount. VCE’s customers energy use in most sectors were lower than forecasted throughout 2025. For example, two large sectors showed lower than forecast energy use: (1) residential and (2) commercial use related to agriculture due to a wet winter and mild spring temperatures. VCE’s operating revenue is driven from the sale of electricity to its customer base.

December 31,
2025
December 31,
2024
% change from
2024 to 2025
December 31,
2023
% change
from 2023 to
2024
Operating revenues $ 88,425,788 $ 97,979,268 -10% $ 95,429,498 3% Investment income 1,598,228 949,832 68% 327,157 190%
Total Income 90,024,016 98,929,100 -9% 95,756,655 3%
Operating Expenses 57,996,956 71,948,029 -19% 74,869,670 -4% Interest and related expenses - -
0%
14,878
-100%
Total Expenses 57,996,956 71,948,029 -19% 74,884,548 -4% Change in Net Position $ 32,027,060 $ 26,981,071 19% $ 20,872,107 29% Net Position - Beginning 63,263,712 36,282,641 74% 15,410,534 135% Net Position - Ending $ 95,290,772 $ 63,263,712 51% $ 36,282,641 74% 107

VALLEY CLEAN ENERGY ALLIANCE

MANAGEMENTS DISCUSSION AND ANALYSIS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
7 Operating Expenses
In the year ended December 31, 2025, VCE’s operating expenses were 19% lower than budgeted operations. The decrease was primarily due lower than forecasted customer energy usage, lower overall power costs, and deferred programs. The remaining operating expenses consist of contract services, staff compensation, and other general administrative expenses were used as budgeted.

ECONOMIC OUTLOOK
As a CCA in its sixth year of operations and post COVID-19 pandemic, VCE continues to focus on limiting customer opt outs by keeping rates competitive, increasing brand recognition, and providing a superior customer experience. VCE has recently started to procure power through long-term power purchase agreements to assist in stabilizing renewable power costs in the future and help VCE accomplish its mission of providing renewable energy and reducing greenhouse gas emissions. This will help reduce the potential effect of future energy market price volatility and create a stable environment for VCE and its ratepayers. VCE faces significant budgetary pressures that have been subject to regulatory and market pressures outside of direct control, including rising Power Charge Indifference Adjustment (PCIA) costs and increasing market costs to procure resource adequacy supplies.

VCE’s Board adopted a rate policy in November 2021 to set customer rates to recover operating costs and build reserve funds and an automatic rate adjustment policy to address environmental and regulatory changes within a budget year. VCE has also adopted a base green product to maintain its competitiveness with PG&E by offering a least-cost option to it customers. VCE has recovered from COVID, continues to build cash reserves, and maintained its credit lines for liquidity in 2023. Longer-term, A majority of VCE’s long-term fixed-price renewable PPA’s that began delivery in 2023. VCE customer rates, including PCIA costs, have been reduced to near zero in 2023 and 2024. As forecasted average forward market energy prices decease, PCIA costs significantly increased in 2026 due to regulatory changes.

Current customer rates have normalized due to resource adequacy (RA) and renewable energy credit (REC) costs reductions.

REQUESTS FOR INFORMATION
This financial report is designed to provide VCE’s board members, stakeholders, customers, and creditors with a general overview of the VCE’s finances and to demonstrate VCE’s accountability for the funds under its stewardship.

Please address any questions about this report or requests for additional financial information to the Chief Financial Officer, 604 2nd Street, Davis, CA 95616.
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VALLEY CLEAN ENERGY ALLIANCE

STATEMENT OF NET POSITION
AS OF DECEMBER 31, 2025 AND 2024
The accompanying notes are an integral part of these financial statements. 8 2025 2024
ASSETS
Current assets
Unrestricted Cash $ 78,634,729 $ 51,943,413
Accounts receivable, net of allowance 10,162,025 8,769,456 Accrued revenue 3,763,678 3,449,298
Prepaid expenses 194,033 100,022
Other current assets and deposits 1,806,883 1,806,883
Total Current Assets 94,561,348 66,069,072
Restricted assets:

Cash in - debt service reserve fund 1,100,000 1,100,000 Total Restricted assets 1,100,000 1,100,000
Noncurrent Assets
Other noncurrent assets and deposits 7,346,172 5,106,446 Total Noncurrent Assets 7,346,172 5,106,446
TOTAL ASSETS $ 103,007,520 $ 72,275,518

LIABILITIES
Current Liabilities
Accounts payable $ 292,537 $ 749,431
Accrued cost of electricity 3,510,965 4,504,376
Accrued payroll 120,845 151,475
Other accrued liabilities 3,792,401 3,606,524
Total Current Liabilities 7,716,748 9,011,806

NET POSITION
Net position
Restricted 1,100,000 1,100,000
Unrestricted 94,190,772 62,163,712
TOTAL NET POSITION $ 95,290,772 $ 63,263,712
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VALLEY CLEAN ENERGY ALLIANCE

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
The accompanying notes are an integral part of these financial statements. 9 2025 2024

OPERATING REVENUE
Electricity sales, net $ 88,399,258 $ 97,905,798
Other revenue 26,530 73,470
TOTAL OPERATING REVENUES 88,425,788 97,979,268

OPERATING EXPENSES
Cost of electricity 52,406,469 64,722,705
Contractors 2,579,679 3,132,155
Staff compensation 1,708,045 1,700,719
Program expenses 140,509 1,328,152
General and administrative 1,162,254 1,064,298
TOTAL OPERATING EXPENSES 57,996,956 71,948,029
TOTAL OPERATING INCOME (LOSS) 30,428,832 26,031,239

NONOPERATING REVENUES (EXPENSES)
Investment income 1,598,228 949,832
TOTAL NONOPERATING REVENUES (EXPENSES) 1,598,228 949,832 CHANGE IN NET POSITION 32,027,060 26,981,071
Net position at beginning of period 63,263,712 36,282,641 Net position at end of period $ 95,290,772 $ 63,263,712 110

VALLEY CLEAN ENERGY ALLIANCE

STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
The accompanying notes are an integral part of these financial statements. 10 2025 2024

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 86,689,468 $ 99,737,078 Payments for security deposits with energy suppliers (2,239,726) (3,212,842) Payments to purchase electricity (53,397,039) (65,977,872) Payments for contract services, program expenses, general, and administration (4,247,470) (5,498,575) Payments for staff compensation (1,738,675) (1,607,611) Other cash payments 26,530 73,470
Net Cash Provided (Used) by Operating Activities 25,093,088 23,513,648

CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 1,598,228 949,832
Net Cash Provided (Used) by Investing Activities 1,598,228 949,832 NET CHANGE IN CASH AND CASH EQUIVALENTS 26,691,316 24,463,480 Cash and cash equivalents at beginning of period 53,043,413 28,579,933 Cash and cash equivalents at ending of period $ 79,734,729 $ 53,043,413 Operating income (loss) $ 30,428,832 $ 26,031,239
(Increase) decrease in net accounts receivable (1,392,569) 1,830,526 (Increase) decrease in net accrued revenue (314,380) (15,264) (Increase) decrease in prepaid expense (94,011) (57,853) (Increase) decrease in other assets and deposits (2,239,726) (3,212,842) Increase (decrease) in accounts payable (456,894) 303,375 Increase (decrease) in accrued payroll (30,630) 93,108
Increase (decrease) in due to member agencies - (4,132) Increase (decrease) in accrued cost of electricity (990,570) (1,255,167) Increase (decrease) in other accrued liabilities 185,877 (215,360) Increase (decrease) in user taxes and energy surcharges (2,841) 16,018 Net Cash Provided by Operating Activities $ 25,093,088 $ 23,513,648

RECONCILIATION OF OPERATING INCOME TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES
Adjustments to reconcile operating income to net cash provided (used) by operating activities:
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VALLEY CLEAN ENERGY ALLIANCE

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
11 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY
The Valley Clean Energy Alliance (VCE) is a California joint powers authority created on January 1, 2017 and its voting members consist of the following local governments: the County of Yolo and the cities of Davis, Woodland and Winters (collectively, the “Member Agencies”). VCE is governed by an eight-member Board of Directors whose membership is composed of two elected officials representing each of the Member Agencies.

VCE’s mission is to address climate change by reducing energy related greenhouse gas emissions through renewable energy supply and energy efficiency at stable and competitive rates for customers while providing local economic and workforce benefits. VCE provides electric service to retail customers as a Community Choice Aggregation Program under the California Public Utilities Code Section 366.2.

VCE began the delivery of electricity in June, 2018. Electricity is acquired from commercial suppliers and delivered through existing physical infrastructure and equipment managed by the California Independent System Operator and Pacific Gas and Electric Company.

BASIS OF ACCOUNTING
VCE’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.

VCE’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.

CASH AND CASH EQUIVALENTS
For purpose of the Statement of Cash Flows, VCE defines cash and cash equivalents to include cash on hand, demand deposits, and short-term investments. Cash and cash equivalents include restricted cash which were the amounts restricted for debt collateral and power purchase reserve.

DEPOSITS
Deposits are classified as current and noncurrent assets depending on the length of the time the deposits will be held. Deposits include those for regulatory and other operating purposes. 112

VALLEY CLEAN ENERGY ALLIANCE

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
12 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

OPERATING AND NON-OPERATING REVENUE
Operating revenues consists of revenue from the sale of electricity to customers. Interest income is considered non-operating revenue.

REVENUE RECOGNITION
VCE recognizes revenue on the accrual basis. This includes invoices issued to customers during the reporting period and electricity estimated to have been delivered but not yet billed. Management estimates that a portion of the billed amounts will not be collected. Accordingly, an allowance has been recorded.

ELECTRICAL POWER PURCHASED
In 2017, VCE entered into a five (5) year contract with the Sacramento Municipal Utility District (SMUD). On April 13, 2023, the contract was extended through December 31, 2028, to provide technical and financial analysis; data management and call center services; wholesale energy services; and operational staff services. In 2022, VCE entered a three (3) year contract with The Energy Authority (TEA) for the electrical power purchased contract and completely transitioned to The Energy Authority by the end of 2023. As of December 31, 2024, $3,425,004 was accrued as payable to TEA, comprised of $3,356,754 in accrued electricity costs and $68,250 in accrued contractual services payable as of December 31, 2024. As of December 31, 2024, $2,618,459 was accrued as payable to TEA, comprised of $2,548,959 in accrued electricity costs and $69,500 in accrued contractual services payable as of December 31, 2025.

RENEWABLE ENERGY CREDITS
To comply with the State of California’s Renewable Portfolio Standards (RPS) and self- imposed benchmarks, VCE acquires RPS eligible renewable energy evidenced by Renewable Energy Certificates (Certificates) recognized by the Western Renewable Energy Generation Information System (WREGIS). VCE obtains Certificates with the intent to retire them, and does not sell or build surpluses of Certificates. An expense is recognized at the point that the cost of the RPS eligible energy is billed by the supplier. VCE is in compliance with external mandates and self-imposed benchmarks.
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NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
13 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

STAFFING COSTS
VCE pays employees semi-monthly and fully pays its obligation for health benefits and contributions to its defined contribution retirement plan each month. VCE is not obligated to provide post-employment healthcare or other fringe benefits and, accordingly, no related liability is recorded in these financial statements. VCE provides compensated time off, and the related liability is recorded in these financial statements.

COMPENSATED ABSENCES
The VCE accrues a liability for unpaid vacation, compensatory time and sick pay. Accumulated vacation leave is recorded as an expense and liability as the benefits accrue to employees. The VCE recognizes all sick pay benefits as they accrue to employees rather than only recognizing the accrued and vested balances. As of December 31, 2025 and 2024, accrued vacation and sick leave benefits totaled $86,250 and $114,543, respectively.

INCOME TAXES
VCE is a joint powers authority under the provision of the California Government Code, and is not subject to federal or state income or franchise taxes.

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.

NET POSITION
VCE reports net position balances in the following categories: Designated, Restricted, and Unrestricted. Local program reserves, customer dividend reserves, and rate stabilization reserves are designated funds as approved by the board in support of the VCE's mission and programs plan.

Restricted funds are those restricted to a particular purpose, and that restriction is set out in the Contract Agreement. Unrestricted funds support the operating expenses or projects of the organization.

The following are the components of VCE’s Net Position at December 31, 2025 and 2024.

December 31, 2025 December 31, 2024
Designated Fund - Local Programs Reserves $ 2,709,585 $ 1,085,585 Designated Fund - Customer Dividend Reserves 3,856,000 - Designated Fund - Rate Stabilization Reserves 12,284,000 - Unrestricted - undesignated 75,341,187 61,078,127
Total unrestricted 94,190,772 62,163,712
Restricted 1,100,000 1,100,000
Total net position $ 95,290,772 $ 63,263,712
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NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
14 2. CASH AND CASH EQUIVALENTS
VCE maintains its cash in interest and non-interest-bearing deposit accounts at River City Bank (RCB) of Sacramento, California. VCE’s deposits with RCB are subject to California Government Code Section 16521 which requires that RCB collateralize public funds in excess of the FDIC limit of $250,000 by 110%. VCE monitors its risk exposure to RCB on an ongoing basis. VCE’s has not adopted its own investment policy and follows the investment policy of the County of Yolo.

3. ACCOUNTS RECEIVABLE AND ACCRUED REVENUE
Accounts receivable were as follows:

The majority of account collections occur within the first few months following customer invoicing.

VCE estimates that a portion of the billed accounts will not be collected. VCE records reserves for its estimated uncollectible accounts as a reduction to the related operating revenues in the Statement of Revenues, Expenses and Changes in Net Position. Charges to reserve for uncollectible accounts for the year ended December 31, 2025 and 2024 were $887,900 and $1,338,250, respectively.

Accrued revenue presented in the Statements of Net Position represents revenue from customer electricity usage that has not been billed at the end of the period. Accrued revenue recognized for the years ended December 31, 2025 and 2024 was $3,763,678 and $3,449,298, respectively.

4. CAPITAL ASSETS AND DEPRECIATION
Capital assets purchased or acquired, with an original cost of $5,000 or more, are recorded at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date received. Additions, improvements and other capital outlay that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expenses as incurred. Capital assets are depreciated using the straight-line method over 3-30 years depending on asset types.

December 31, 2025 December 31, 2024
Accounts receivable from customers $ 11,049,925 $ 9,768,856 Allowance for uncollectible accounts (887,900) (999,400) Accounts receivable, net $ 10,162,025 $ 8,769,456
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VALLEY CLEAN ENERGY ALLIANCE

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
15 5. DEBT

LINE OF CREDIT AND TERM LOAN
In May 2018, VCE entered into a non-revolving, $11 million Credit Agreement (Agreement) with River City Bank (RCB) for the purpose of providing working capital to fund power purchases during seasonal differences in cash flow and reserves as needed to support power purchases. RCB requires collateral for the line of credit of $1.1 million which is reported as restricted cash. Interest accrues on the outstanding balance and is payable each month and computed at One-Month LIBOR plus 1.75% per annum, subject to a floor of 1.75% per annum. The Agreement expired on May 15, 2019 with an option to extend the line for another six months. VCE extended the line of credit and the Agreement to November 15, 2019, with continuing extensions granted until August 31, 2020. At the expiration of the Agreement, any outstanding balance can be converted to an amortizing term loan which matures up to five years from conversion date. The Agreement contains various covenants that include requirements to maintain certain financial ratios, stipulated funding of debt service reserves, and various other requirements including the subordination of the member agency loans.

LINE OF CREDIT AND TERM LOAN (CONTINUED)
Line of Credit
• Cash Facility - $2,000,000 increase in cash from $5,000,000 to $7,000,000 • Letter of Credit Facility - $4,000,000 increase from $7,000,000 to $11,000,000 • Maturity: March 1, 2024
• Interest Rate: 2.00% (unchanged)
If VCE defaults on the line of credit, RCB may, by notice of the borrower, take any of the following actions:
(a) terminate any obligation to extend any further credit hereunder (including but not limited to Advances) on the date (which may be the date thereof) stated in such notice; (b) declare all Advances and all indebtedness under the Notes then outstanding (including all outstanding principal and all accrued but unpaid interest), and all other Obligations of Borrower to Lender, to be immediately due and payable without further demand, presentment, protest or notice of any kind; and
(c) exercise and enforce any and all rights and remedies contained in any other Loan Document or otherwise available to Lender at law or in equity.

The VCE had no outstanding debt as of December 31, 2025 and 2024. 116

VALLEY CLEAN ENERGY ALLIANCE

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
16 6. DEFINED CONTRIBUTION RETIREMENT PLAN
VCE provides retirement benefits to eligible employees through a 401(a) discretionary defined contribution plan and 457(b) deferred compensation plan (Plans). The Plans are administered by International City Management Association Retirement Corporation (ICMA-RC). At December 31, 2025, VCE had 6 plan participants. VCE contributes 7% of covered payroll and up to an additional 3% of covered payroll as a match to employee tax deferred contributions (into the 457(b) deferred compensation plan) into the 401(a) discretionary defined contribution plan.

For the years ended December 31, 2025 and 2024, VCE contributed $116,818 and $109,451, respectively. The Plans’ provisions and contribution requirements as they apply to VCE are established and may be amended by the Board of Directors.

7. OPERATING LEASE
In 2018, VCE entered into a nine-month lease for its office space with the City of Davis. The most recent lease agreement renewal with the City covers the twelve months ending January 2027. Rental expenses under this lease were $24,905 and $24,180 for the year ending December 31, 2024, and 2024, respectively. This lease is renewed on an annual basis, agreed with both parties, with a fixed escalator of 3% per year. The future minimum lease payment for 2026 is $25,653.

Management has reviewed lease agreements related to the lease accounting rules under GASB 87. It has been determined that the office rent and a copier lease are the only operating leases for the period and are not material for the implementation of the new lease accounting requirements.

8. RELATED PARTY TRANSACTIONS
VCE entered into a cooperative agreement with each respective member agency to provide management, legal, accounting and administrative services. The services billed from the Member Agencies to VCE outstanding for the year ending December 31, 2025 and 2024 totaled $- and $-, respectively. The total services billed from the Member Agencies to VCE for the years ending December 31, 2025 and 2024 totaled $102,923 and $32,501, respectively. 117

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NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
17 9. RISK MANAGEMENT
VCE is exposed to various risks of loss related to torts; theft of, damages to, and destruction of assets; errors and omissions; injuries to and illnesses of employees; and natural disasters, for which VCE manages its risk by participating in the public entity risk pool described below and by retaining certain risks.

Public entity risk pools are formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, those entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. The joint powers authority is governed by a board consisting of representatives from member municipalities. The board controls the operations of the joint powers authority, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of this joint powers authority are not VCE's responsibility.

VCE is a member of the Yolo County Public Agency Risk Management Insurance Authority (YCPARMIA) which provides coverage for general and auto liability and workers’ compensation.

Once VCE’s deductible is met, YCPARMIA becomes responsible for payment of all claims up to the limit. In addition, the California Joint Powers Risk Management Authority (CJPRMA) provide coverage for amounts in excess of YCPARMIA’s limits. YCPARMIA provides workers’ compensation insurance coverage up to statutory limits, above VCE’s self-insurance limit of $1,000 per occurrence, and general and auto liability coverage of $40,000,000, above VCE’s self-insurance.

For the year ended December 31, 2025 and 2024, VCE contributed $128,377 and $93,926 for coverage, respectively. Audited financial statements are available from YCPARMIA their website www.ycparmia.org. Condensed information for YCPARMIA for the most recent available year end is as follows:

The June 30, 2025, were the most recent audited financial statements available at the time of the preparation of this report.

YCPARMIA
June 30, 2025
Total Assets $ 45,176,864
Deferred Outflows of Resources $ 548,260
Total Liabilities $ 45,077,654
Deferred Inflows of Resources $ 187,669
Net Position $ 459,801
Total Revenues $ 31,432,416
Total Expenses $ 29,284,589
Change in Net Position $ 2,147,827
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NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
18 10 Clean Energy Purchase Contract - Prepayment Transaction In March 2025, VCE closed a prepay transaction with the California Community Choice Financing Authority (CCCFA) to achieve meaningful energy procurement cost savings. The annual savings from VCE’s initial Prepay transaction are currently estimated to be approximately $2-3 million, representing approximately 8-12% savings on the annual energy procurement costs. The savings are based mainly on the spread between taxable and tax-exempt interest rates. The Clean Energy Purchase Contract is a 30-year agreement under which VCE will purchase discounted electricity from CCCFA. The monthly discount percentage for each month of the initial reset period is 9%. The municipal bonds will not constitute obligations of VCE, but rather limited obligations of CCCFA.

The following table represents the fixed payments, trustee payments and expected savings as of December 31, 2025:

11. SUBSEQUENT EVENTS
Management has reviewed its financial statements and evaluated subsequent events for the period of time from its period ended December 31, 2025 through May 1, 2026 the date the financial statements were issued. Management is not aware of any subsequent events, other than the one discussed below, that would require recognition or disclosure in the accompanying financial statements.

Year Ended
December 31: Fixed Payments Trustee Payment Savings
2026 24,628,502 22,411,937 2,216,565
2027 24,723,664 22,498,534 2,225,130
2028 24,823,266 22,589,172 2,234,094
2029 24,926,110 22,682,760 2,243,350
2030 25,029,592 22,776,929 2,252,663
2031-2035 126,839,153 115,423,629 11,415,524
2036-2040 161,137,985 146,635,566 14,502,419
2041-2043* 100,354,744 91,322,817 9,031,927
2044-2045 101,025,082 * *
2046-2050 209,068,290 * *
2051-2055 212,777,970 * *
2026 22,904,559 * *
Total 1,058,238,917 466,341,344 46,121,672
*This is the final year in which the savings are locked. Thereafter, the VC will return to the market and assess the savings based on the differential between the municipal (non-taxable) bond market and the taxable bond market. 119
James Marta & Company LLP
Certified Public Accountants
Accounting, Auditing, Consulting, and Tax
701 Howe Avenue, Suite E3, Sacramento, CA 95825 (916) 999-4180 fax (916) 993-9489 www.jpmcpa.com [email protected]

COMMUNICATION WITH THOSE CHARGED

WITH GOVERNANCE
Board of Directors
Valley Clean Energy Alliance
Davis, California
We have audited the financial statements of Valley Clean Energy Alliance as of and for the years ended December 31, 2025 and 2024, and have issued our report thereon dated May 1, 2026.

Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated October 4, 2022 our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of Valley Clean Energy Alliance solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

We have provided our consideration of Valley Clean Energy Alliance’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters in a separate letter to you dated May 1, 2026.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing previously communicated to you.
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Certified Public Accountants
2 Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied with all relevant ethical requirements regarding independence.

We follow the AICPA Ethics Standard Rule 201C, in conjunction with this, we annually review with all engagement staff potential conflicts and obtain a conflict certification. In addition, we inquire on each engagement about potential conflicts with staff. We have not identified any relationships or other matters that in the auditor’s judgment may be reasonably thought to bear on independence.

Significant Risks Identified
We have identified the following significant risks:
• Receivables
Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by Valley Clean Energy Alliance is included in Note 1 to the financial statements. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. However, there are upcoming Governmental Accounting Standards that we have listed in Attachment A.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events.

Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. The most sensitive accounting estimate affecting the financial statements is the estimate of accounts receivable.

Management’s estimate of the allowance for doubtful accounts is based on actual revenues earned for the year which may not be collectible. We evaluated the key factors and assumptions used to develop the estimate of doubtful accounts and determined that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Management’s estimate of the accrued revenue is based on actual revenues earned but not yet billed for December 2025. We evaluated the key factors and assumptions used to develop the estimate of accrued revenue and determined that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. 121
James Marta & Company LLP
Certified Public Accountants
3 Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting Valley Clean Energy Alliance’s financial statements relate to revenue recognition.

Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you significant unusual transactions identified during our audit. The following significant unusual transactions identified as a result of our audit procedures were brought to the attention of management:

None.

Identified or Suspected Fraud
We have not identified or obtained information that indicates that fraud may have occurred.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. The attached schedule summarizes uncorrected financial statement misstatements whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. See attachement B
In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. We have provided a listing of the misstatements identified by us as a result of our audit procedures and corrected by management which were material, either individually or in the aggregate, to the financial statements taken as a whole. See Attachment B for adjusting and reclassifying journal entries identified as a result of our audit procedures or provided by management.
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Certified Public Accountants
4 Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to Valley Clean Energy Alliance’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. There were no circumstances that affected the form and content of our auditor’s report.

Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated May 1, 2026 (Attachment C)
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues
In the normal course of our professional association with Valley Clean Energy Alliance, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as Valley Clean Energy Alliance’s auditors.

Other Services
We have assisted management in preparing the financial statements of Valley Clean Energy Alliance in conformity with U.S. generally accepted accounting principles based on information provided by management.

Management’s responsibilities for other services included designating qualified individuals with the skill, knowledge, and experience to be responsible and accountable for overseeing financial statement preparation and any other nonattest services we performed as part of this engagement.

Management has represented that they have evaluated the adequacy and results of those services and is accepting responsibility for them.
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James Marta & Company LLP
Certified Public Accountants
5 This report is intended solely for the information and use of the Board of Directors and management of Valley Clean Energy Alliance and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record, and its distribution is not limited.

James Marta & Company LLP
Certified Public Accountants
Sacramento, California
May 1, 2026
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James Marta & Company LLP Attachment A
Certified Public Accountants Upcoming Changes in Accounting Standards 6 As of December 31, 2025
The following pronouncements of the Governmental Accounting Standards Board (GASB) have been released recently and may be applicable to the Valley Clean Energy Alliance in the near future. We encourage management to review the following information and determine which standard(s) may be applicable to the Valley Clean Energy Alliance. For the complete text of these and other GASB standards, visit www.gasb.org and click on the “Standards & Guidance” tab. If you have questions regarding the applicability, timing, or implementation approach for any of these standards, please contact your audit team.

GASB Statement No. 103, Financial Reporting Model Improvements Effective for the fiscal year ending December 31, 2026
The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues.

We do not expect this standard to have any significant impact on the Valley Clean Energy Alliance.

GASB Statement No. 104, Disclosure of Certain Capital Assets Effective for the fiscal year ending December 31, 2026
The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. This Statement also requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within the established time frame. This Statement requires that capital assets held for sale be evaluated each reporting period.

The Valley Clean Energy Alliance is currently assessing the financial statement impact of GASB 104.
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James Marta & Company LLP Attachment B
Certified Public Accountants Journal Entries
7 Adjusting Journal Entries
None.

Reclassifying Journal Entries
Account Description Debit Credit
45370-0000 BANKING FEES 7,103.00
45370-0000 BANKING FEES 75,250.00
45970-0000 HEAT PUMP 7,103.00
45970-0000 HEAT PUMP 75,250.00
Total 82,353.00 82,353.00
45321-0000 SMUD - WHOLESALE ENERGY SERVIC 69,500.00
41510-0000 POWER PURCHASES 69,500.00
Total 69,500.00 69,500.00
Total Reclassifying Journal Entries 151,853.00 151,853.00 Total All Journal Entries 151,853.00 151,853.00
Reclassifying Journal Entries
Reclassifying Journal Entries JE # 1
PBC - To record Nem Q4 Activity and adjust reclass RCB - RLOC NON-USE FEE 2025 and RCB AQUAMARINE SBLC RENEWAL
Reclassifying Journal Entries JE # 2
PBC - To reclass Power Costs
Uncorrected Journal Entries
None.
126
James Marta & Company LLP Attachment C
Certified Public Accountants Management Representation Letter 8 127
James Marta & Company LLP Attachment C
Certified Public Accountants Management Representation Letter 9 128
James Marta & Company LLP Attachment C
Certified Public Accountants Management Representation Letter 10 129
James Marta & Company LLP Attachment C
Certified Public Accountants Management Representation Letter 11 130
James Marta & Company LLP Attachment C
Certified Public Accountants Management Representation Letter 12 131
James Marta & Company LLP
Certified Public Accountants
Accounting, Auditing, Consulting, and Tax
701 Howe Avenue, Suite E3, Sacramento, CA 95825 (916) 999-4180 fax (916) 993-9489 www.jpmcpa.com [email protected]

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
Board of Directors
Valley Clean Energy Alliance
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of Valley Clean Energy Alliance, as of and for the years ended December 31, 2025 and 2024, and the related notes to the financial statements, which collectively comprise Valley Clean Energy Alliance’s basic financial statements, and have issued our report thereon dated May 1, 2026.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Valley Clean Energy Alliance’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 opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Valley Clean Energy Alliance’s internal control. Accordingly, we do not express an opinion on the effectiveness of Valley Clean Energy Alliance’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 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 Valley Clean Energy Alliance’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 first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 132
701 Howe Avenue, Suite E3, Sacramento, CA 95825 (916) 999-4180 fax (916) 993-9489 www.jpmcpa.com [email protected]
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Valley Clean Energy Alliance's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Valley Clean Energy Alliance’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Valley Clean Energy Alliance’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

James Marta & Company LLP
Certified Public Accountants
Sacramento, California
May 1, 2026
133
Item 14

VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 14
______________________________________________________________________________ TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer
Mitch Sears, Chief Executive Officer
SUBJECT: 2026 VCE Mid-Year Financials Update
DATE: June 11, 2026

RECOMMENDATION
Continue current customer rate discounts of 5% for all and 10% for CARE/FERA customers for the remainder of 2026.

Overview
This report provides a mid-year financial update for 2026 actuals and the anticipated outcomes from the California Public Utilities Commission’s (CPUC) Order Instituting Rulemaking (OIR) on changes to the Power Charge Indifference Adjustment (PCIA) and Energy Resource Recovery Account (ERRA) proceedings.

Based on current long-term forecasts and potential regulatory outcomes, staff recommends maintaining VCE’s existing rate discounts using VCE’s rate stabilization and customer dividend funds for the remainder of 2026.

DISCUSSION & ANALYSIS
VCE has built a solid long-term renewable energy portfolio and taken a disciplined fiscal approach, which has positioned it well to offer competitive rates, including discounts, launch programs, and exceed compliance requirements for renewable content, while maintaining regulatory compliance. As of mid-year 2026, VCE remains in a stable financial position with an expected net loss as forecasted in the 2026 Budget Adoption Process.

Key highlights include:
• Revenues are tracking slightly lower than projections with a normalized load and weather conditions.
134
Item 14
• Operating expenses remain within budget, with power costs benefiting from favorable market and load usage conditions.
• Cash reserves are healthy and exceed the Board-approved minimum thresholds.

While VCE’s financial position has improved significantly in recent years, driven by high energy market prices, the recent OIR proceeding on PCIA and lower power market prices have created upward pressure on the PCIA. THE OIR proceeding has resulted in 3 individual proceedings. • PCIA OIR Track 1 (concluded) - The results adopted in track 1 OIR have changed the Resource Adequacy (RA) benchmark calculation, leading to a forecasted net loss of $15M for 2026. • PCIA OIR Track 2 (final decision pending) - The proposed decision in track 2 is expected to have additional impacts on the renewable energy credits (RECs) values included in the 2027 ERRA proceeding, leading to a forecast of an additional net loss. • PCIA OIR Track 3 (future decision) – Is proposed as a comprehensive review to consider updates and reforms to the ERRA and PCIA rules and processes, with the objectives of improving existing rules, mitigating rate volatility, and ensuring indifference among bundled and departing customers.

Thus far, the OIR proceeding has resulted in increased PCIA and lower net revenues. VCE relies on rate stabilization and customer dividend funds to maintain rate competitiveness with discounts. Based on analysis by CalCCA and TEA, additional regulatory changes in the OIR proceeding could further increase PCIA. VCE’s approach to building its long-term renewable energy portfolio has been the primary driver, shielding VCE from additional market price volatility and increasing VCE’s overall renewable portfolio, exceeding compliance requirements in the years to come.

As noted, over the past several years VCE has established healthy reserves and a customer rate stabilization fund. By design, this fiscal approach allows VCE to account for the PCIA uncertainty discussed above while maintaining rate stability. Therefore, staff recommends continuing the current 2026 customer discounts of 5% for standard green and 10% for CARE/FERA/Medical baseline at this time. Staff recommends postponing rate adjustments until VCE’s 2027 Rates and Budget adoption in December.

By December, VCE will receive the OIR's proposed decisions and updated PG&E ERRA filings for PCIA and bundled generation rate changes. Additionally, the energy market remains uncertain, with risks from summer peak demand, reduced hydropower availability, wildfire-related costs, and additional CPUC regulatory decisions as the primary drivers.

Preserving financial flexibility is essential to navigate these uncertainties without compromising service or stability. Increasing discounts now could erode the financial cushion needed to maintain rate stability and support future investments in renewable energy, local programs, and grid resilience. A consistent and predictable rate structure helps build customer trust and supports long-term retention.

Maintaining current discounts provides VCE with the ability to continue to meet its strategic goals (e.g., rate affordability, renewable goals, etc.), without sacrificing long-term sustainability. 135
Item 14
Reasons for Maintaining Robust Cash Reserves:
• Credit Rating and Financing Costs: Strong reserves support VCE’s current “A-“ credit rating, which is essential for securing favorable terms in power procurement contracts and future financing for potential load growth and reduced operating costs. VCE’s strategic goals will require additional procurement, and our credit rating will reduce borrowing costs and enhance VCE’s ability to invest in long-term clean energy initiatives.
• Rate Stabilization: Cash reserves act as a primary financial buffer against market volatility, regulatory changes, and unexpected cost increases. This stability allows VCE to avoid sudden rate hikes and maintain competitive/discounted rates for customers, which is especially important in a dynamic energy market.
• Customer Dividends: Dividend Reserves safeguard rate competitiveness and rate stability for all VCE customers with emphasis on VCE’s at-risk community. • Regulatory Compliance and Risk Management: Adequate reserves ensure compliance with financial risk management policies and provide flexibility to respond to unforeseen events, such as extreme weather impacts or supplier defaults.

Timeline/Next Steps
• October CPUC Meeting – Receive updated OIR decisions and PG&E’s updated ERRA forecasts for PCIA and generation rates.
• November Board Meeting - Incorporate updated load forecasts and power costs into the 2027 preliminary Budget.
• December Board Meeting - Provide updated year-end financial report and recommendations for 2027 rate adjustments.

CONCLUSION
Staff recommends maintaining the current rate discounts for all customer classes through the end of 2026.
136
Item 15

VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 15
TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer
Mitch Sears, Chief Executive Officer
SUBJECT: Allocation of 2025 Net Margin
DATE: June 11, 2026

RECOMMENDATION
Adopt a resolution approving the allocation of the $32M 2025 Audited Net Margin between cash reserves, local program reserve (LPR), and Customer Dividends program as follows:

1. Minimum required allocation of $225,000 to the Local Programs Reserve (LPR)

2. Discretionary allocation of $2,026,000 to the Local Programs Reserve (LPR)

3. Discretionary allocation of $2,251,000 to Operational Reserves

4. Discretionary allocation of $4,129,000 to Customer Dividend Reserves

5. Discretionary allocation of $23,397,000 to Rate Stabilization Reserves

BACKGROUND AND ANALYSIS
Each spring, the Board considers allocation of the previous year’s net margin based on VCE’s Customer Dividend Program Guidelines, adopted in 2019 and updated December 12, 2024.

This report presents the various options the Board has in determining how to allocate the estimated net margin for 2025. The Dividend Program Guidelines update in December 2024 increased the minimums for Operational Reserves to 120 days and Rate Stabilization Reserves to 60 days. The current Financial Reserves Policy can be found here.

VCE’s audit of the 2025 fiscal year has been completed, and financial statements were presented as an earlier companion item in today’s meeting. Taking into account VCE’s Dividend Program guidelines, as well as available and forecast cash reserves, Staff concluded that the following allocation met VCE’s policy objectives for VCE’s 2025 net margin of $32 million:

Net margin up to 5% is to be allocated as follows:
• Minimum required allocation of $225,000 (5%) to the Local Programs Reserve (LPR) • Discretionary allocation of $2,026,000 (45%) to the Local Programs Reserve (LPR) • Discretionary allocation of $2,251,000 (50%) to Operational Reserves Net margin above 5% is to be allocated as follows:
• Discretionary allocation of $4,129,000 (15%) to Customer Dividend Reserves • Discretionary allocation of $23,397,000 (85%) to Rate Stabilization Reserves 137
Item 15
Key aspects of the Dividend Program are:
• Every year, the audited Net Margin (Less Principal Debt Payments) is to be allocated amongst Cash Reserves, Local Programs Reserve, and Customer Dividends, at the Board’s discretion
• Require a minimum 5% net margin before considering if any dividends are paid Based on the audited 2025 Financial Statements, the conditions above have been met, including our Reserve Policy Minimums. As noted when the Board adopted the Dividend Program Guidelines in 2019, a 5% minimum net margin is in the lower range of typical net margin goals for the utility sector and most other industries.

Table 1 - 2025 Beginning Reserve Balance
*VCE Operational Cash Reserve Target is 180 days.

Dividend Program Formula
The adopted Dividend Program formula recommends allocating the net margin as follows:
• Net margin up to 5% is to be allocated as follows:
o At least 5% (of the 5%) to LPR for program implementation o Up to 95% to Operational Cash Reserves (Until 180-day Target is met) • Net margin above 5% is to be allocated as follows:
o 50% to Operational Cash Reserves (Until 180-day target is met) o 25% to Rate Stabilization (Until 60-day minimum is met) • Discretionary Allocation is between additional operational cash, rate stabilization, customer dividends, and local program reserves at the discretion of the Board annually.

Below is a summary of VCE’s Net Margin Calculation for 2025:

Table 2 - VCE Dividend Program Allocation - 2025
Description
2025 Beg.

Cash Balance Days Cash
Minimum
Reserve Policy
Operating Reserves - 2025 Beginning Balance 43,314 220 120* Local Programs Reserves - 2025 Beginning Balance 2,709 14 0 Customer Dividend Reserves - 2025 Beginning Balance 3,856 20 0 Rate Stabilization Reserves - 2025 Beginning Balance 12,284 62 60 Total Unrestricted Cash 62,163 316 180
Valley Clean Energy
Description
2025
Financials
($1,000s)
Electricity Sales 90,024
Operating Expense 57,997
Operating Margin 32,027
Principal Debt Payments -
Adjusted Net Margin less principal Debt Payments 32,027 Adjusted Net Margin Percentage 35.58%
Allocation Amount <=5% 4,501
Allocation Amount > 5% 27,526
138
Item 15
Discretionary Allocation Considerations
Based on the current and forecast cash reserves for 2026 and 2027, Staff recommends allocating the majority of the discretionary allocation to operational and rate-stabilization reserves. The 2026 adopted budget forecasts a ($15.8M) net loss. VCE will maintain the minimum reserve targets for 2026 and 2027 based on current forecasts. VCE does anticipate additional increases in PCIA (net revenue reduction) and PG&E generation rate reductions (due to lower energy market prices) in 2027. Rate stabilization funds are discretionary and held to support anticipated rate competitiveness and customer discounts.

Table 3 - Allocation of Net Margin up to 5%
Based on the customer dividend program formula above, VCE's minimum allocations result in $245,000 to LPR. Staff is considering an additional $2,025,000 to LPR and the balance to operational reserves. Additional Operational reserves provide VCE with flexibility to absorb additional unexpected operational expenses and maintain the recommended 180 minimum target for investment-grade credit ratings. Additional LPR funds allow for a multi-year balance, enabling VCE to take on long-term program initiatives with community impact, given that 2026 and 2027 may not meet minimum net margin requirements for the allocation of funds.

Tables 4 and 5 provide two potential scenarios for Board consideration. Table 4 allocates all discretionary funds above the 5% minimum net margin to rate stabilization to better prepare for potential future rate variability. Staff is not recommending this approach as it is considered overly cautious given PCIA and rate forecasts for the next several years. Staff believes that scenario 2 shown in table 5 strikes a more appropriate balance between current rate affordability objectives (customer dividends in the form of maintaining VCE current rate discounts), and maintaining future rate stability (rate stabilization fund).

Table 4 - Scenario 1 - Allocation of Net margin above 5% ///
///
///
/// Allocation of Net Margin up to 5% Percentage
Allocation
Amount
Operating Days
Cash
Total
Operating Days
Cash
Operating Reserves Allocation 50% 2,251 11 231
Local Programs Allocation 50% 2,251 11 25
Allocation of Net Margin above 5% Percentage
Allocation
Amount
Operating Days
Cash
Total
Operating Days
Cash
Operating Reserves Allocation 0% - 0 230
Local Programs Allocation 0% - 0 25
Customer Dividends 0% - 0 20
Rate Stabilization Allocation 100% 27,526 140 202
139
Item 15
Table 5 - Scenario 2 - Allocation of Net margin above 5% Note: (1) a 1% dividend would be approximately $1.50/month reduction in the average residential customer bill and an approximately $3.75/month reduction in the average small commercial customer bill; (2) anecdotal information from other CCAs indicate that these levels of customer dividends/discounts while helpful in communicating a CCA’s value do not have significant effects on customer retention or new customer recruitment.

Staff considered the following key factors related to this preliminary recommendation. • Power Costs - Staff anticipates ongoing regulatory pressures related to changing PCIA and resource adequacy requirements (increased costs = decreased days cash on hand)
• VCE’s current 180-day cash reserve target is a minimum for investment grade credit rating.
• VCE’s current 60-day rate stabilization reserve target is a minimum for rate variability and maintaining customer discounts.

Community Advisory Committee (CAC) Consideration
The staff presented to the CAC at its May 28, 2026 meeting for discussion and feedback based on estimated results. CAC feedback aligned with the staff’s initial allocation included in scenario 1, which focuses on building programs and additional operational and rate stabilization reserves.

After further consideration and internal staff discussion, Scenario 2 shown in Table 5 above was developed. Both allocation scenarios 1 and 2 incorporate conservative assumptions that reflect unfavorable forecast conditions, ensuring that potential risks are accounted for in the analysis.

Notably, the updated Scenario 2 further strengthens expectations that VCE may continue its discount program into 2027, providing added reassurance regarding rate stability and ongoing customer benefits despite a challenging market outlook.

CONCLUSION
Staff believe that both scenarios represent a disciplined and financially prudent approach to building reserves and preserving long-term rate relief. The longer-term outlook (2026+) shows overall stability in power costs due to VCE’s fixed-price long-term renewable power purchase contracts, VCE’s recent prepay savings, and our A- credit rating amid continued regulatory and power market uncertainty.

ATTACHMENT:

1. Resolution 2026-XXX – Allocation of 2025 Net Margin
Allocation of Net Margin above 5% Percentage
Allocation
Amount
Operating
Days Cash
Total
Operating
Days Cash
Operating Reserves Allocation 0% - 0 0
Local Programs Allocation 0% - 0 0
Customer Dividends 15% 4,129 21 31
Rate Stabilization Allocation 85% 23,397 119 130
140
Item 15

VALLEY CLEAN ENERGY ALLIANCE
RESOLUTION NO. 2026-___

A RESOLUTION OF THE BOARD OF DIRECTORS OF VALLEY CLEAN ENERGY ALLIANCE

APPROVING THE RECOMMENDED ALLOCATION OF NET MARGIN FOR THE AUDITED YEAR ENDED DECEMBER 31, 2025
WHEREAS, Valley Clean Energy (“VCE”) was formed as a community choice aggregation agency (“CCA”) on November 16, 2016, under the Joint Exercise of Power Act, California Government Code section 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, the Board adopted a Rate Structure & Dividend Program Guidelines (Dividend Program) on June 17, 2019, to be effective starting at the beginning of the following fiscal year on July 1, 2019; and
WHEREAS, the Dividend Program guides how audited positive Net Margin for each fiscal year can be allocated amongst operational and rate stabilization cash reserves, customer dividends, and local program reserve (LPR), at the Board’s discretion; and WHEREAS, VCE staff analyzed the allocation options for Board consideration based on the final, audited Net Margin for the year ended December 31, 2025.

NOW, THEREFORE, the Board of Directors of Valley Clean Energy resolves as follows:

1. For the audited year ended December 31, 2025, allocate the Net Margin of $32 million as follows: $2,251,000 to local program reserve, $4,129,000 to customer dividends, $2,251,000 to operational reserves, and $23,397,000 to rate stabilization reserves.

PASSED, APPROVED AND ADOPTED, at a regular meeting of Valley Clean Energy, held on the ____ day of _______________, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________________
Jesse Loren, VCE Chair
__________________________________
Alisa M. Lembke, VCE Board Secretary
141

Valley Clean Energy Board of DirectorsJune 11, 2026

Valley Clean Energy Board of Directors
June 11, 2026