The URL can be used to link to this page

Home My WebLink About2021-07-29; Clean Energy Alliance JPA; ; Clean Energy Alliance Treasurer's ReportJUNE 30, 2021 (PRELIMINARY) REPORTS STATEMENT OF FINANCIAL POSITION CLEAN ENERGY ALLIANCE STATEMENT OF NET POSITION As of June 30, 2021 (Preliminary) ASSETS Current Assets Cash Operating Account Lockbox Account A/R Customers Total Current Assets Noncurrent Assets Deposits CCA Bond CAISO Collateral Deposit SDG&E Collateral Deposits Total Noncurrent Assets Tota I Assets Current Liabilities LIABILITIES Accounts Payable Accrued Liabilities Refundable Deposits Electric Energy Surcharge NEMS Liability Total Current Liabilities Noncurrent Liabilities Due to Member Agencies Due to City of Carlsbad Due to City of Del Mar Due to City of Solana Beach Total Due to Member Agencies JPMorgan Revolving Credit Agreement Total Noncurrent Liabilities Total Liabilities NET POSITION Unrestricted (deficit) Total Net Position July 29, 2021 Treasurer's Report Page 2 of 6 $ 337,482.05 $ 372,886.38 3,560,668.40 4,271,036.83 147,000.00 500,000.00 585,000.00 1,232,000.00 5,503,036.83 3,274,567.05 11,278.00 75,000.00 12,977.13 (54.19) 3,373,767.99 186,571.79 151,892.97 165,552.69 504,017.45 5,000,000.00 5,504,017.45 8,877,785.44 (3,374,748.61) (3,374,748.61) July 29, 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 twelve months ended June 30, 2021 (Preliminary) Operating Revenues $ 3,820,404.65 Operating Expenses Power Supply $ 5,609,436.67 Professional Services 1,118,220.98 Print/Mail Services 82,663.87 Membership Dues 15,444.00 Advertising 8,108.51 Website Maintenance 204.00 Insurance 5,569.38 Bank Fees 985.00 Subscriptions/Pub Ii cations 399.00 Miscellaneous G&A 5,458.33 NEM Expense (54.19) Total Operating Expenses 6,846,435.55 Operating Income (Loss) (3,026,030.90) Non-Operating Expenses Interest Expense (70,033.34) Change in Net Position (3,096,064.24) Net Position at beginning of period (278,684.37) Net Position at end of period $ (3,374,748.61) BUDGET TO ACTUALS COMPARISON SCHEDULE CEA received its first customer revenue in June 2021 and revenue has been increasing as CEA ramps ups it service to customers. 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 Aweement 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.SMM and a third on June 1, 2021, in the amount of $500,000 for a total borrowing of $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 July 29, 2021 Treasurer's Report Page 4 of 6 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, $8,148,468.89 has been expended, leaving $5,464,031.11. The Budget to Actuals Comparison Schedule is shown on the next page. July 29, 2021 Treasurer's Report Page 5 of 6 CLEAN ENERGY ALLIANCE BUDGET TO ACTUALS COMPARISON SCHEDULE For the twelve months ended June 30, 2021 (Preliminary) AMENDED BUDGET ACTUALS VARIANCE Operating Revenues Energy Sales $ 8,000,000.00 $ 3,820,404.65 $ 4,179,595.35 Total Operating Revenue 8,000,000.00 3,820,404.65 4,179,595.35 Operating Expenses Power Supply 8,000,000.00 5,609,436.67 2,390,563.33 Professional Services Administrative 120,000.00 147,852.27 (27,852.27) Accounting 10,000.00 23,064.80 (13,064.80) Legal 320,000.00 418,090.49 (98,090.49) Technical 198,200.00 265,902.25 (67,702.25) Data Manager 130,200.00 143,993.00 (13,793.00) Marketing 102,238.00 102,760.67 (522.67) 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 1,118,220.98 (188,020.98) Print/Mail Services 132,000.00 82,663.87 49,336.13 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 5,458.33 (5,458.33) NEM Expense (54.19) 54.19 Total Operating Expenses 9,173,500.00 6,846,435.55 2,327,064.45 Operating Income (Loss) (1,173,500.00) (3,026,030.90) 1,852,530.90 Non-Operating Expenses Interest Expense 10,000.00 70,033.34 (60,033.34) Other Sources and Uses Sources JPMorgan Revolving Credit Agreement 5,000,000.00 5,000,000.00 Calpine Promissory Note 650,000.00 650,000.00 Total Sources 5,650,000.00 5,000,000.00 650,000.00 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 1,232,000.00 3,197,000.00 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 $ 671,935.76 $ (634,435.76) '"""f' , ~, : , ' . -,, ,....., , ' ,.r Total Operating and Non-Operating Expenses and Uses of Funds $ 13,612,500.00 $ 8,148,468.89 $ 5,464,031.11 July 29, 2021 Treasurer's Report Page 6 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 twelve months ended June 30, 2021 (Preliminary) Net Increase (Decrease) in Available Fund Balance per Budgetary Comparison Schedule 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 Add back: Collateral Deposit-CAISO Collateral Deposits-SDG&E CCA Bond(Financial Security Reqmt-FSR) Change in Net Position LIST OF PAYMENTS ISSUED $ 671,935.76 (5,000,000.00) 500,000.00 585,000.00 147,000.00 $ (3,096,064.24) The report below provides the detail of payments issued by CEA for June 2021. All payments were within approved budget. Date 06/01/21 06/01/21 06/04/21 Via Vendor ACH USPS ACH USPS ACH USPS 06/04/21 WIRE JPMorgan 06/07/21 WIRE JPMorgan 06/14/21 WIRE The Energy Authority (TEA) 06/14/21 ACH OneStream Networks, LLC 06/15/21 ACH USPS 06/18/21 WIRE The Energy Authority (TEA) 06/18/21 WIRE Direct Energy 06/18/21 ACH Bolt Energy Marketing, LLC 06/18/21 WIRE SDG&E 06/18/21 BillPayCustomer Refund 06/22/21 ACH USPS 06/29/21 ACH USPS FISCAL IMPACT Clean Energy Alliance List of Payments Issued June 2021 Description 06/01/21 Mailing 05/28/21 Mailing 06/07 /21 Mailing 4-May-20213-Jun-202131days $1,500,000.00 3.700000% 6-May-20216-Jun-202132 days $3,000,000.00 3.700000% 05/21/21-05/26/21 May Telephone 06/14/21 Mailing 05/27/21-06/03/21 May 2021 RA Sales and Purchases· May 2021 Invoice Resource Adequacy Confirmation Letters May 2021 RA Sales Refund-customer charged true-up in error 06/21/21 Mailing 06/28/21 Mailing Total June Payments There is no fiscal impact associated with these items. Amount $ 6,108.20 124.42 84.57 4,779.17 9,866.67 83,958.36 235.95 714.69 42,857.12 74,500.00 74,750.00 623,837.80 173.00 1,113.66 4,117.09 $ 927,220.70