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San Diego Community Power board adopts budget amendment, appoints FRMC member and approves multiple energy storage contracts
Summary
At its Feb. 27 meeting, San Diego Community Power’s board approved a midyear budget amendment, adopted a presiding‑officer policy, appointed a finance committee member and approved three energy storage contracts and a distributed storage portfolio, actions the agency says will support reliability and customer affordability.
San Diego Community Power’s board of directors on Feb. 27 approved several measures aimed at shoring up finances and expanding the agency’s energy storage portfolio, including a midyear operating- and capital‑budget amendment, adoption of a presiding‑officer policy, appointment to the Finance and Risk Management Committee and approvals of multiple battery energy storage agreements.
The board adopted an amended FY 2024–25 operating budget and FY 2024–25 capital budget and the FY 2025–29 capital investment plan to reflect higher energy costs, principally resource adequacy and renewable pricing, and to fund local programs. Director Timothy Manquemont, director of finance (presenter), said the amendment increases revenue appropriations by about $43.3 million and expenses by roughly $43.2 million, producing only $200,000 of net income change and preserving a near‑zero net amendment.
Board members said staff made focused reductions in non‑energy costs to offset energy price pressure. Director Yamani praised staff diligence in finding savings and recommended approval. The board approved the amendment by roll call vote.
The board also unanimously adopted Resolution No. 2025‑02 establishing a designation of presiding officer policy to identify who will preside at board or committee meetings when the chair and vice chair are absent. General Counsel Vera Tiaghi told the board the policy prioritizes the member with the longest tenure, with alternative appointment by the chair or the CEO when tenure is unclear.
In other formal actions, the board appointed Director Michael Nzunza to the Finance and Risk Management Committee and authorized several energy storage agreements: - Amendment and restatement of an energy storage services agreement with USMOD Project I LLC to convert a previously contracted 200‑megawatt 4‑hour system to an 8‑hour system and extend the term to 20 years; the project remains in Kern County and keeps a June 1, 2028 guaranteed commercial operation date. - Approval of an energy storage services agreement with North Johnson Energy Center LLC for a 50‑megawatt, 4‑hour battery system in El Cajon with a 15‑year term and projected online date in mid‑2026. - Approval of a portfolio agreement with Lumenia CalDevCo 5 LLC for five distributed 4‑hour battery sites (total 20.6 MW) in San Diego County, each on secured commercial/industrial parcels, under a 20‑year framework including site substitution provisions during development.
Board members emphasized reliability and local benefits. Kenny Key, director of power contracts, said the amended 200‑MW project was shifted to 8 hours to help meet midterm long‑duration storage obligations and that the developer committed $100,000 to a community benefit fund for local programs. Morgan Adams, senior local development manager, said the Lumenia portfolio is expected to provide local wages, prevailing‑wage commitments and up to about $2.9 million in property tax revenue over the projects’ lives.
Votes at a glance - Resolution No. 2025‑02, designation of presiding officer policy — motion moved by Director Yamani, seconded by Director Nzunza; outcome: approved (roll call: yes votes recorded in transcript). - Appointment of Director Michael Nzunza to the Finance and Risk Management Committee — motion moved and seconded; outcome: approved (roll call: ayes recorded). - FY 2024–25 operating budget amendment / FY 2024–25 capital budget and FY 2025–29 CIP — motion moved by Chair Aguirre; outcome: approved (roll call: ayes recorded). - Amended and restated energy storage agreement with USMOD Project I LLC (200 MW, 8‑hour, 20‑year) — motion moved by Director Yamani, seconded; outcome: approved (roll call: ayes recorded). - Energy storage agreement with North Johnson Energy Center LLC (50 MW, 4‑hour, 15‑year) — motion moved by Director Yamani, seconded by Director Nzunza; outcome: approved (roll call: ayes recorded). - Energy storage agreements and framework with Lumenia CalDevCo 5 LLC (up to 20.6 MW distributed, 20‑year) — motion approved and seconded; outcome: approved (roll call: ayes recorded).
Board members pushed staff for assurances about safety and permitting. Kenny Key and project presenters described multilevel safety plans, 24/7 monitoring, containerized designs and coordination with local fire agencies; presenters said the El Cajon project had already received the local conditional use permit. Several directors noted the projects create construction and permanent jobs and expected local community benefits.
The board’s approvals advance Community Power’s short‑term reliability obligations and give staff tools to pursue midterm resource adequacy and local capacity goals while maintaining a focus on affordability and reserve targets.
