HomeMy WebLinkAbout2021-06-24; Clean Energy Alliance JPA; ; Adopt Clean Energy Alliance Fiscal Year 21/22 BudgetCLEAN ENERGY ALLIANCE
Staff Report
DATE: June 24, 2021
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Interim Chief Executive Officer
ITEM 2: Adopt Clean Energy Alliance Fiscal Year 21/22 Budget
RECOMMENDATION
Adopt Clean Energy Alliance Fiscal Year 21/22 Budget.
BACKGROUND AND DISCUSSION
At its regular meeting May 27, 2021, the Clean Energy Alliance (CEA) Board reviewed the draft Fiscal
Year 21/22 budget. The Board provided input to the budget related to postponing the addition of a
Program/Key Account Manager position and Human Resources Consultant. These items will be brought
to the Board in the fall for discussion and consideration.
The proposed Fiscal Year 21/22 budget represents the first full fiscal year of operations for Clean Energy
Alliance (CEA) and provides funding for a full year of power supply, on-going regulatory compliance
requirements, professional, and legal services required to support operations.
Assumptions used to develop the proposed budget are:
•Revenue based on 7% opt out rate — current opt out rate under 5%
•Power supply costs based on actual executed contracts and April forward price curves
•Consulting services based on approved contracts
•Reserves to achieve minimum 5% of FY 20/21 and 21/22 revenues
Sufficient revenues are projected to cover costs based on the current assumptions. Energy forward
price curves have been increasing, driven by concerns about summer reliability, impacts of the Texas
winter events on gas prices, low California water reservoir levels and Diablo Canyon Unit 2 concerns.
Should this trend continue, CEA rates would need to be adjusted to reflect the increased costs. Staff
continues to monitor the market and anticipates bringing forward a market update in the fall, along with
an update on San Diego Gas & Electric 2022 rates proceedings.
Energy Sales Revenue
Funds provided by linandng
TOW/ REVENUE
$ 6200,030
$ 5,020,066
$ AMON
53,5/3,003
$ 53,573,002
June 24, 2021
FY 21/22 Budget
Page 2 of 2
The proposed budget is shown below:
Clean Energy Alliance
FY 20/21 Estimates and FY 21/22 Proposed Budget
Ff 20/21 FYZIAI
Wieners Slummy
REVBILIE
EXPENDITURES
Power Supfly $ 8,150,000
S 48.700,000
Data management/GA center S 230.100
5 1311,000
Staffing/Consultants $ 103,612
$ 235,700
Legal Services $ 432,660
$ 510,000
Professional Services $ 420,678
$ 848,600
Audi tServIces $ 8„000
$ 25,000
Software & Deems $ 3230
$ 9,100
CCA Bond $ 47.000
CAISO Fee $ 500,300
Memberships & Dues $ 15,444
$ 116,066
Printing $ 32266
$ 17.000
Postage $ sases
IS 31103
Advertising $ 7,320 l $ 15,003
Insurance $ 5,569
5 7.000
Bank Fees $ 965
$ 2.000
Miscellaneous $ 8,386
DelA Service $ 713,665
$ 775,003
Cash Collateral Deposits $ sas,aoo
TOTAL PROJECIED BUDGET $ 11.300,000 1 $ 53.917,5tle
Net 12.ults of Opera ons 1/0$0,000 $ 1025,500
Beginnirg rural Balance 1.050003
Ending Fund Balance $ 3,075,503
The proposed budget provides sufficient funds in reserves to achieve a 5.74% cumulative operating
reserve.
FISCAL IMPACT
Revenue from energy sales to customers provides funding for the proposed expenditures.
ATTACHMENTS
None