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Home My WebLink About2021-05-27; Clean Energy Alliance JPA; ; Clean Energy Alliance Treasurer's ReportCLEAN ENERGY ALLIANCE Staff Report DATE: May 27, 2021 TO: Clean Energy Alliance Board of Directors FROM: Marie Marron Berkuti, Interim Treasurer ITEM 1: Clean Energy Alliance Treasurer's Report RECOMMENDATION Receive and File Clean Energy Alliance (CEA) Interim Treasurer's Report for April 2021. BACKGROUND AND DISCUSSION This report provides the Board with the following financial information through April 30, 2021: •Statement of Financial Position — Reports assets, liabilities, and financial position of the CEA as of April 30, 2021. •Statement of Revenues, Expenses and Changes in Net Position for the ten months ended April 30, 2021. •Budget to Actuals Comparison Schedule — Reports actual revenues and expenditures compared to the amended budget as of April 30, 2021. •Budget Reconciliation to Statement of Revenues, Expenses and Changes in Net Position •List of Payments Issued — Reports payments issued for April 2021. As of April 30, 2021, liabilities represent invoices received for services, but not yet paid. The noncurrent accounts payable are amounts due to the cities of Carlsbad, Del Mar and Solana Beach for the $150,000 advance made by each member agency for start-up costs and services provided to CEA for the period December 2019 to June 2020. These invoices are scheduled to be paid three years from the time CEA is operational. May 27, 2021 Treasurer's Report Page 2 of 6 APRIL 30, 2021 REPORTS STATEMENT OF FINANCIAL POSITION CLEAN ENERGY ALLIANCE STATEMENT OF NET POSITION As of April 30, 2021 ASSETS Current Assets Cash Operating Account $ 1,001,883.07 Lockbox Account 100,000.00 Total Current Assets 1,101,883.07 Noncurrent Assets Deposits CCA Bond 247,000.00 CAISO Collateral Deposit 500,000.00 SDG&E Collateral Deposits 585,000.00 Total Noncurrent Assets 1,332,000.00 Total Assets 2,433,883.07 LIABILITIES Current Liabilities Accounts Payable 75,088.47 Accrued Liabilities 26,448.00 Refundable Deposits 75,000.00 Total Current Liabilities 176,536.47 Noncurrent Liabilities Due to Member Agencies Due to City of Carlsbad 186,571.79 Due to City of Del Mar 151,892.97 Due to City of Solana Beach 165,552.69 Total Due to Member Agencies 504,017.45 JPMorgan Revolving Credit Agreement 4,500,000.00 Total Noncurrent Liabilities 5,004,017.45 Total Liabilities 5,180,553.92 NET POSITION Unrestricted (deficit) (2,746,670.85) Total Net Position $ (2,746,670.85) May 27, 2021 Treasurer's Report Page 3 of 6 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION CLEAN ENERGY ALLIANCE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the ten months ended April 30, 2021 Operating Revenues Operating Expenses Power Supply $ 1,554,731.49 Professional Services 822,094.10 Print/Mail Services 34,098.37 Membership Dues 15,444.00 Advertising 8,108.51 Website Maintenance 204.00 Insurance 5,569.38 Bank Fees 985.00 Subscriptions/Publications 399.00 Miscellaneous G&A 4,313.05 Total Operating Expenses 2,445,946.90 Operating Income (Loss) (2,445,946.90) Non-Operating Expenses Interest Expense (22,039.58) Change in Net Position (2,467,986.48) Net Position at beginning of period (278,684.37) Net Position at end of period $ (2,746,670.85) BUDGET TO ACTUALS COMPARISON SCHEDULE At its January 21, 2021 board meeting, the CEA Board approved a Credit Agreement with JPMorgan for $6MM to provide start-up funding for cash flow needs and a line of credit should the need arise. The first drawdown of funds from the Agreement was made on February 3, 2021, in the amount of $3MM. At the same time, the Calpine Promissory Notes totaling $650,000 were paid off along with $2,923 in interest expense. A second drawdown was made on April 1, 2021, in the amount of $1.5MM. At its June 18, 2020 board meeting, the CEA Board adopted the Fiscal Year (FY) 2020/21 budget approving $4,006,500 in total operating expenses and uses of funds. The CEA Board approved an amendment to the budget at its November 19, 2020 board meeting to cover the Financial Security Requirement amount of $147,000. At its December 17, 2020 board meeting, the CEA Board approved an amendment to the budget totaling $9,459,000 in expenses and uses of funds to reflect resource adequacy contracts executed and costs associated with CEA beginning to provide service in May and June 2021. These budget amendments brought the amended adopted budget total to $13,612,500. Of its approved $13,612,500.00 amended budgeted operating expenses and uses of funds, $3,199,986.48 has been expended, leaving $10,412,513.52. The Budget to Actuals Comparison Schedule is shown on the next page. May 27, 2021 Treasurer's Report Page 4 of 6 CLEAN ENERGY ALLIANCE BUDGET TO ACTUALS COMPARISON SCHEDULE For the ten months ended April 30, 2021 Operating Revenues AMENDED BUDGET ACTUALS VARIANCE Energy Sales $ 8,000,000.00 $ $ 8,000,000.00 Total Operating Revenue 8,000,000.00 8,000,000.00 Operating Expenses Power Supply 8,000,000.00 1,554,731.49 6,445,268.51 Professional Services Administrative 120,000.00 123,233.68 (3,233.68) Accounting 10,000.00 17,945.00 (7,945.00) Legal 320,000.00 363,770.45 (43,770.45) Technical 198,200.00 218,702.25 (20,502.25) Data Manager 130,200.00 130,200.00 Marketing 102,238.00 81,885.22 20,352.78 Audit 40,000.00 8,000.00 32,000.00 Other 9,562.00 8,557.50 1,004.50 Total Professional Services 930,200.00 822,094.10 108,105.90 Print/Mail Services 132,000.00 34,098.37 97,901.63 SDG&E Service Fees & Deposit 83,800.00 83,800.00 Membership Dues 15,000.00 15,444.00 (444.00) Advertising 10,000.00 8,108.51 1,891.49 Website Maintenance 2,500.00 204.00 2,296.00 Insurance - 5,569.38 (5,569.38) Bank Fees 985.00 (985.00) Subscriptions/Publications 399.00 (399.00) Miscellaneous G&A - 4,313.05 (4,313.05) Total Operating Expenses 9,173,500.00 2,445,946.90 6,727,553.10 Operating Income (Loss) (1,173,500.00) (2,445,946.90) 1,272,446.90 Non-Operating Expenses Interest Expense 10,000.00 22,039.58 (12,039.58) Other Sources and Uses Sources JPMorgan Revolving Credit Agreement 5,000,000.00 4,500,000.00 500,000.00 Calpine Promissory Note 650,000.00 650,000.00 Total Sources 5,650,000.00 4,500,000.00 1,150,000.00 Uses CCA Bond(Financial Security Reqmt-FSR) 47,000.00 147,000.00 (100,000.00) CAISO Deposit 500,000.00 500,000.00 Lock Box Reserves/Cash Flow 2,500,000.00 2,500,000.00 Calpine Promissory Note Repayment 650,000.00 650,000.00 Collateral Deposits-SDG&E 585,000.00 585,000.00 Financial Security Requirement 147,000.00 147,000.00 Total Uses 4,429,000.00 732,000.00 3,697,000.00 Total Sources and Uses 1,221,000.00 3,768,000.00 (2,547,000.00) Net Increase (Decrease) in Available Fund Balance 37,500.00 $ 1,300,013.52 $ (1,262,513.52) Total Operating and Non-Operating Expenses and Uses of Funds $ 13,612,500.00 $ 3,199,986.48 $ 10,412,513.52 May 27, 2021 Treasurer's Report Page 5 of 6 BUDGET RECONCILIATION TO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION CLEAN ENERGY ALLIANCE BUDGET RECONCILIATION TO STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the ten months ended April 30, 2021 Net Increase (Decrease) in Available Fund Balance per Budgetary Comparison Schedule $ 1,300,013.52 Adjustments needed to reconcile to the changes in Net Position in the Statement of Revenues, Expenses, and Changes in Net Position Subtract Advances-JPMorgan Revolving Credit Agreement (4,500,000.00) Add back: Collateral Deposit-CAISO Collateral Deposits-SDG&E 585,000.00 CCA Bond(Financial Security Reqmt-FSR) 147,000.00 Change In Net Position $ (2,467,986.48) LIST OF PAYMENTS ISSUED The report on the following page provides the detail of payments issued by CEA for April 2021. All payments were within approved budget. May 27, 2021 Treasurer's Report Page 6 of 6 Clean Energy Alliance List of Payments Issued April 2021 Date Via Vendor Description Amount Annual Fee - Generator Aggregators 3-Mar-2021 5-Apr-2021 34days $3,000,000.00 3.700000% 3-Mar-2021 5-Apr-2021 34days $3,000,000.00 3.700000% 04/07/21 Mailing 04/09/21 Mailing 04/13/21 Mailing various printing - mailers Mar 2021 Retainer Mar 2021 Energy Procurement Counsel Svcs Form 700 Filing Annual Subscription TCN AD TCN AD Mar 2021 General Counsel Svcs Mar 2021 Regulatory Counsel Svcs Feb 2021 Regulatory Counsel Svcs Mar 2021 General Support Services Mar 2021 Technical Consulting Svcs 04/15/21 Mailing Mar 2021 PWR-CAP March 2021 RA Sales Mar ERRA Forecast Counsel Services Green Business Expo - Exhibitor Carlsbad Business Journal Advertisement April 2021 Mar CEO/Clerk Services March 2021 Invoice Resource Adequacy Confirmation Letters 04/23/21 Mailing Total April Payments $ 125.00 10,175.00 308.33 3,446.84 51.82 5,202.02 7,266.01 9,223.75 20,289.50 399.00 465.00 465.00 5,431.35 6,604.90 7,979.90 3,328.75 23,600.00 4,990.17 157,000.00 623,837.80 648.25 150.00 695.00 16,991.25 74,750.00 147.41 $ 983,572.05 04/01/21 ACH WREGIS 04/05/21 WIRE JPMorgan 04/06/21 WIRE JPMorgan 04/07/21 ACH USPS 04/09/21 ACH USPS 04/14/21 ACH USPS 04/16/21 ACH Neyenesch Printers 04/19/21 ACH Tripepi, Smith & Associates, Inc. 04/19/21 ACH Hall Energy Law PC 04/19/21 ACH Granicus, LLC 04/19/21 ACH The Coast News Group 04/19/21 ACH The Coast News Group 04/19/21 AG-1 Richards, Watson & Gershon 04/19/21 ACH Tosdal APC 04/19/21 ACH Tosdal APC 04/19/21 ACH Tripepi, Smith & Associates, Inc. 04/19/21 ACH Pacific Energy Advisors, Inc 04/19/21 ACH USPS 04/26/21 WIRE Direct Energy 04/26/21 WIRE SDG&E 04/26/21 ACH Keyes & Fox LIP 04/26/21 ACH Carlsbad Chamber of Commerce 04/26/21 ACH Carlsbad Chamber of Commerce 04/26/21 ACH Bayshore Consulting Group, Inc 04/26/21 ACH Bolt Energy Marketing, LLC 04/26/21 ACH USPS FISCAL IMPACT There is no fiscal impact associated with these items.