Finance committee backs budget amendment, shifts $3 million to solar-battery program

The Finance and Risk Management Committee of San Diego Community Power on Feb. 2025 voted to recommend that the board amend the agency—s FY 2024-25 operating budget, the FY 2024-25 capital budget and the FY 2025-29 capital investment plan. Committee members heard presentations from the agency—s chief financial officer and treasury staff and approved the committee recommendation unanimously.

Why it matters: The amendment adjusts revenues upward to reflect recent rate decisions and raises energy cost estimates; staff said the change preserves the agency—s reserve position while freeing $3 million from operating savings to accelerate the authority—s solar battery storage program.

Dr. Eric Washington, chief financial officer and treasurer for San Diego Community Power, told the committee the amendment aligns the operating budget with the board—s Feb. 7 rate-setting actions and seeks committee support for a board-level amendment. "We are seeking from this Committee ... support for a recommendation to the board to amend our fiscal year 2024-25 operating budget, fiscal year 2024-25 capital budget and fiscal year through fiscal 29 capital budget," Washington said.

Timothy Maglamont, director of finance at San Diego Community Power, presented the budget detail and said the amendment increases both revenue and expenses largely because of the rate changes the board previously approved. Maglamont said the amendment reflects a $43.3 million increase in revenue and a $43.2 million increase in expenses tied primarily to higher renewable and resource adequacy costs. He said non-energy costs fell by about $3 million as staff tightened controls on personnel, professional services and general administrative spending.

Because of those non-energy savings, Maglamont said the agency proposes shifting $3 million from operating into the capital budget and capital investment program to expand the solar battery storage program. "We are proposing to shift over $3,000,000 from the operating budget and into the capital budget and CIP to fund the solar battery storage program," Maglamont said.

Committee members praised the staff for fiscal restraint and the revised presentation. Director Yamani moved the committee recommendation; the seconder was not specified in the committee record. Committee members then voted in favor and the committee recorded the motion as carrying unanimously.

Discussion versus action: The committee—s vote was a recommendation to the full board to adopt the budget amendment; it did not itself change appropriations. Staff framed the amendment as a mechanical update to the adopted budget to reflect the board—s earlier rate decisions and to reallocate internal savings to capital investment.

What was not specified: The committee packet and the public presentation supplied dollar totals and program descriptions for the solar battery storage initiative but did not include detailed per-project contracts or procurement timelines in the public presentation. The identity of the committee member who seconded the motion is not specified in the committee transcript.

Next steps: The committee recommended that the San Diego Community Power board consider the amendment at its next board meeting.