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Home My WebLink About2022-02-24; Clean Energy Alliance JPA; ; Clean Energy Alliance Treasurer's Report~...J,I CLEAN ENERGY ALLIANCE Staff Report DATE: February 24, 2022 TO: Clean Energy Alliance Board of Directors FROM: Marie Marron Berkuti, Interim Treasurer ITEM 2: Clean Energy Alliance Treasurer's Report RECOMMENDATION Receive and File Clean Energy Alliance (CEA) Interim Treasurer's Report for January 2022 activity. BACKGROUND AND DISCUSSION This report provides the Board with the following financial information through January 31, 2022: • Statement of Financial Position (Unaudited) -Reports assets, liabilities, and financial position of the CEA as of January 31, 2022. • Statement of Revenues, Expenses and Changes in Net Position (Unaudited) for the seven months ended January 31, 2022. • Budget to Actuals Comparison Schedule (Unaudited) -Reports actual revenues and expenditures adopted annual budget as of January 31, 2022. • Budget Reconciliation to Statement of Revenues, Expenses and Changes in Net Position • List of Payments Issued -Reports payments issued for the month of January 2022. As of January 31, 2022, 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. JANUARY 31, 2022 REPORTS STATEMENT OF FINANCIAL POSITION (Unaudited) CLEAN ENERGY ALLIANCE STATEMENT OF NET POSITION As of January 31, 2022 ASSETS Current Assets Cash Operating Account Lockbox Account Investment Account A/R Customers A/RNEMS A/R Miscellaneous Prepaid Expense Total Current Assets Noncurrent Assets Deposits CCA Bond CAISO Deposit Collateral Deposits Total Noncurrent Assets Total Assets LIABILITIES Current Liabilities Accounts Payable Accrued Liabilities Accrued Energy Costs Accrued Other Costs Total Accrued liabilities Electric Energy Surcharge 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 $ February 24, 2022 CEA Treasurer's Report Page 2 of 6 376,612.86 557,090.13 1,150,893.97 7,371,807.83 2,765,580.69 42,000.00 351,479.17 12,615,464.65 147,000.00 500,000.00 1,117,000.00 1,764,000.00 14,379,464.65 596,788.36 9,860,589.00 70,970.09 9,931,559.09 16,881.89 10,545,229.34 186,571.79 151,892.97 165,552.69 504,017.45 6,650,000.00 7,154,017.45 17,699,246.79 (3,319,782.14) $ (3,319,782.14) February 24, 2022 CEA Treasurer's Report Page 3 of 6 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION (Unaudited) CLEAN ENERGY ALLIANCE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the seven months ended January 31, 2022 Operating Revenues Operating Expenses Power Supply Data Manager Staffing/Consultants Legal Services Professional Services Audit Services Software & Licenses Membership Dues Print/Mail Services Insurance Bank Fees Miscellaneous Total Operating Expenses Operating Income (Loss) Non-Operating Revenues (Expenses) Interest Revenue Interest Expense Total Non-Operating Revenue (Expenses) Change in Net Position Net Position at beginning of period Net Position at end of period BUDGET TO ACTUALS COMPARISON SCHEDULE $ 40,151,644.13 $ 39,303,080.51 490,586.00 94,136.25 178,347.40 411,746.47 8,240.00 6,885.00 88,891.50 43,585.93 5,619.38 1,384.38 3,505.56 40,636,008.38 (484,364.25) 893.97 (128,899.69) (128,005.72) (612,369.97) (2,707,412.17) $ (3,319,782.14) At its June 24, 2021 board meeting, the CEA Board adopted the Fiscal Year (FY) 2021/22 budget approving $51,547,500 in total operating expenses and uses of funds. Through January 2022, $42,029,014.30 has been expended, leaving $9,518,485.90. 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. Drawdowns through December 31 equaled $5,750,000. At its January 13, 2022 board meeting, the CEA Board approved a Credit Agreement Amendment with JPMorgan increasing the line of credit from $6MM to $15MM to meet Fiscal Year 2021/22 cash flow needs. A drawdown was made on January 24, 2022, in the amount of $900,000 for a total borrowing of $6,650,000. The Budget to Actuals Comparison Schedule is shown on the next page. CLEAN ENERGY ALLIANCE February 24, 2022 CEA Treasurer's Report Page 4 of 6 BUDGET TO ACTUALS COMPARISON SCHEDULE For the seven months ended January 31, 2022 ADOPTED BUDGET ACTUALS VARIANCE Operating Revenues Energy Sales $ 53,573,000.00 $40,140,938.63 $ 13,432,061.37 Miscellaneous Income 10,705.50 (10,705.50) Total Operating Revenue 53,573,000.00 40,151,644.13 13,421,355.87 Operating Expenses Power Supply 48,700,000.00 39,303,080.51 9,396,919.49 Data Manager 811,000.00 490,586.00 320,414.00 Staffing/Con su lta nts 235,700.00 94,136.25 141,563.75 Legal Services 510,000.00 178,347.40 331,652.60 Professional Services Technical 283,200.00 183,296.25 99,903.75 Schedule Coordinator 155,400.00 81,900.00 73,500.00 Marketing 115,000.00 55,371.06 59,628.94 SDGE Service Fees 270,000.00 79,852.44 190,147.56 Other Professional Services 25,000.00 11,326.72 13,673.28 848,600.00 411,746.47 436,853.53 Audit Services 25,000.00 8,240.00 16,760.00 Software & licenses 9,100.00 6,885.00 2,215.00 Membership Dues 116,000.00 88,891.50 27,108.50 Print/Mail Services 43,100.00 43,585.93 (485.93) Advertising 15,000.00 15,000.00 Insurance 7,000.00 5,619.38 1,380.62 Bank Fees 2,000.00 1,384.38 615.62 Miscellaneous 3,505.56 (3,505.56) Total Operating Expenses 51,322,500.00 40,636,008.38 10,686,491.62 Operating Income (Loss) 2,250,500.00 (484,364.25) 2,734,864.25 Non-Operating Revenue (Expenses) Interest Revenue 893.97 (893.97) Interest Expense (225,000.00) (128,899.69) (96,100.31) Total Non-Operating Revenue (Expenses) (225,000.00) (128,005.72) (96,994.28) Other Sources and (Uses) Sources JPMorgan Credit Agreement 1,650,000.00 (1,650,000.00) Uses Collateral Deposits-SDG&E (385,000.00) 385,000.00 Total Sources (Uses) 1,265,000.00 (1,265,000.00) Net Increase (Decrease) in Available Fund Balance $ 2,025,500.00 $ 652,630.03 $ 1,372,869.97 Total Operating and Non-Operating Expenses and Uses of Funds $ 51,547,500.00 $42,029,014.10 $ 9,518,485.90 February 24, 2022 CEA 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 seven months ended January 31, 2022 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 Oeposits-SDG&E Change in Net Position LIST OF PAYMENTS ISSUED $ 6S2,630.03 (l,GS0,000.00) 38S,OOO.OO $ (612,369.97) The reports on the following pages provide the detail of payments issued by CEA for the month of January 2022, All payments were within approved budget. Date Via 01/03/22 Wire 01/03/22 Wire 01/10/22 Wire 01/10/22 ACH 01/14/22 Wire 01/14/22 Wire 01/17/22 Wire 01/19/22 ACH 01/19/22 ACH 01/19/22 BillPay 01/20/22 BillPay 01/20/22 Wire 01/20/22 Wire 01/24/22 Wire 01/24/22 BillPay 01/24/22 Wire 01/27/22 ACH 01/27/22 ACH 01/27/22 ACH 01/27/22 ACH 01/27/22 ACH 01/27/22 ACH 01/27/22 ACH 01/27/22 ACH 01/27/22 ACH 01/27/22 ACH 01/27/22 ACH 01/27/22 ACH 01/27/22 ACH 01/31/22 Wire 01/31/22 ACH 01/31/22 Wire 01/24/2022 Wire 01/24/2022 Wire FISCAL IMPACT Clean Energy Alliance February 24, 2022 CEA Treasurer's Report Page 6 of6 List of Payments Issued January 2022 Vendor Description The Energy Authority (TEA) 12/10/21-12/15/21 The Energy Authority (TEA} Mar 2022 Capacity Purchases The Energy Authority {TEA) 12/16/21-12/21/21 USPS 01/06/22 Mailing Chapman and Cutler, LLP JPMorgan Amendment JPMorgan Amendment Fee The Energy Authority (TEA) 12/22/21-12/29/21 USPS 01/18/22 Mailing OneStream Networks, LLC Dec 2021 Telephone SDG&E For Services Rendered under Sch CCA-Sept 2021 SDG&E For Services Rendered under Sch CCA-Oct 2021 Direct Energy Dec 2021 PWR-CAP SDG&E Dec 2021 RA Sales Powerex PCC1/PCC2 Installment 2 of 12 & CF Installment 2 of 6 (2022) SDG&E For Services Rendered under Sch CCA-Nov 2021 The Energy Authority {TEA) 12/30/21-01/05/22 Bayshore Consulting Group, Inc Dec 2021 CEO Services CalCCA Q3 FY 21-22 Lance, Soll & Lunghard, LLP 2021 Government Audit (Progress Billing) Lance, Soll & Lunghard, LLP 2020 Government Audit (Project Completion/Report Issuance) Calpine Dec 2021 Services -68,808 meters@ $1.00 Keyes & Fox LLP Dec 2021 ERRA Forecast Counsel Services Tripepi, Smith & Associates, lnc. Jan 2022 Retainer Pacific Energy Advisors, Inc Dec 2021 Technical Consulting Svcs The Energy Authority (TEA) Dec 2021 Scheduling Coordinator & CRR Management Services Tosdal APC Dec 2021 Regulatory Counsel Svcs California Dept Tax & Fee Ad min Q4123121 lntegra Insurance Services, Inc. General Liability Insurance lntegra Insurance Services, Inc. D&O Insurance JPMorgan 2-Nov-20211-Feb-202192 days $SOOK 3.700000% The Energy Authority (TEA) Mar 2022 Capacity Purchases The Energy Authority (TEA) 01/06/22-01/12/22 Total January Payments-Operating Account Shell Oil North America Nov 2021 Power Sale Exelon Generation Company,LLC Nov 2021 PWR-PHYS Total January Payments-Lockbox Account Amount $ 218,480.19 46,500.00 368,745.37 105.45 20,000.00 10,000.00 239,446.08 175.44 1,113.12 15,076.75 14,822.76 179,500.00 688,789.00 144,479.17 14,526.60 136,611.14 15,152.68 30,246.00 7,000.00 1,240.00 69,837.00 2,426.25 7,891.58 27,235.00 11,700.00 8,752.50 50,752.00 1,124.38 4,495.00 4,727.78 69,000.00 255,294.00 $2,665,245.24 1,038,463.67 1,235,289.92 $2,273,753.59 There is no fiscal impact associated with these items.