DATE: September 16, 2026
TO: Honorable Mayor and City Council Members
FROM: Utilities Department
2026-050
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
RESOLUTION APPROVING AND ATTESTING TO THE VERACITY OF THE 2025 POWER SOURCE DISCLOSURE ANNUAL REPORT EXECUTIVE SUMMARY:
This staff report asks the City Council to adopt Resolution 2026-095 which approves and attests to the veracity of the 2025 Power Source Disclosure Annual Report to the California Energy Commission.
RECOMMENDED ACTION:
That the City Council adopt Resolution No. 2026-095, approving and attesting to the veracity of the 2025 Power Source Disclosure Annual Report to the California Energy Commission for the year ending December 31, 2025.
BACKGROUND & HISTORY:
In 1997, Senate Bill 1305 (SB 1305) established a requirement for retail electric energy suppliers to submit an annual report to the California Energy Commission (CEC) disclosing the sources of energy used to provide electric service. This report is commonly referred to as the Power Source Disclosure Report (PSD) and is due to the CEC by June 1st of each year for the previous calendar year.
The information in this report is used to prepare the annual Power Content Label (PCL), which is provided to our customers each year by posting the PCL on the City’s website as well as the CEC’s website. This information must be presented in an accurate, reliable and easy to understand manner to provide consumers a detailed view into the sources of energy purchased by their retail suppliers to power their homes and businesses.
ANALYSIS:
In 2016, the CEC adopted modifications to the regulations implemented by SB 1305 to incorporate statutory changes to program rules and requirements, as required by Assembly Bill 162 (AB 162), Assembly Bill 2227 (AB 2227), and Assembly Bill 1110 (AB 1110). AB 162 included a provision that requires utilities to engage a third-party certified public accountant to perform an audit to verify the specific purchases, resales, and self-consumption of energy by fuel type.
The regulation included an exemption from the audit requirement for publicly owned electric utilities if the utility’s governing board approves and attests to the veracity of the data contained in the PSD Report at a public meeting. In a June 2025 rulemaking, the CEC further clarified that the utility’s governing board is only required to attest to the veracity of the data in the PSD Report, not the PCL, as the PCL is created based on the PSD Report.
AB 1110 also required retail suppliers to disclose greenhouse gas (GHG) emissions intensity (the rate of emissions per unit of electricity) associated with each electricity portfolio. A requirement was included to disclose the unbundled renewable energy credits (RECs) as a percentage of annual retail sales.
The final version of the annual PSD Report for Calendar Year 2025 was submitted to the CEC in May 2026, along with the associated staff attestation form. The 2025 PCL will be posted on the City’s website in accordance with the CEC regulations. The attached Resolution No. 2026-095 approves the annual PSD Report. Further, it provides the attestation to the veracity of the PSD Report as required for exemption from the third-party audit requirement for the City’s standard power mix.
Adoption of Resolution 2026-095 will enable the City to comply with the CEC regulation implemented by SB 1305.
FINANCIAL IMPACT:
There is no financial impact associated with the approval of the recommended actions as this item is to adopt Resolution No. 2026-095, approving and attesting to the veracity of the 2025 Power Source Disclosure Annual Report.
ENVIRONMENTAL ANALYSIS:
State CEQA Guidelines Section 15061(b)(3) states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action approves and attests to the veracity of the 2025 Power Source Disclosure Program Annual Report, and there is no possibility that approving these changes will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: MARJORIE ADEVA, ELECTRIC UTILITY MANAGER
REVIEWED BY: TOM MOODY, UTILITIES DIRECTOR
ATTACHMENT:
1. Exhibit 1 – Resolution No. 2026-095