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HomeMy WebLinkAbout2020-12-17; Clean Energy Alliance JPA; ; Approve Fiscal Year 20/21 Budget Amendment for CCA OperationsEnergy Sales Revenue $ $ 5,000,000 4,006,500 1,643,500 9,643,500 Funds provided by Financing TOTAL REVENUE Clean Energy Alliance JOINT POWERS AUTHORITY Staff Report DATE: December 17, 2020 TO: Clean Energy Alliance Board of Directors FROM: Barbara Boswell, Interim Chief Executive Officer ITEM 4: Approve Fiscal Year 20/21 Budget Amendment for CCA Operations RECOMMENDATION Approve Fiscal Year 20/21 Budget Amendment for CCA Operations, increasing revenue by $9,643,500 and expenditures by $9,459,000. BACKGROUND AND DISCUSSION At its June 18, 2020 regular meeting, the Clean Energy Alliance Board adopted its fiscal year 20/21 budget for start-up related costs. CCA operations related costs were anticipated to be brought before the Board for consideration at a point in time when those costs could be better estimated. Based on current market conditions, resource adequacy contracts executed, and current rate information, staff recommends the Board amend the budget as follows: Or Energy Aftaince Proposed Budget Amendment Fiscal Year 20/21 Proposed AdocrTed FY 20/21 FY 20/21 Amendment NOTES Revenue Expenateres Power Supply $ - $ 8,000,000 Resource adequacy commitments beginning January 2021; Power Supply May &June 2021 Data Management 130,200 SDGE Service Fees & Deposit 83,800 Staffing/Consultants - Legal Services 320,000 Professional Services 430,000 CCA Bond 194,000 CAISO Fee 500,000 CalCCA Membership & Dues 15,000 Print/Mail Services 132,000 Advertising 10,000 Graphic Design Services 10,000 Website Maintenance 2,500 Audit Services 40,000 Cash Collateral Payments 585,030 • Debt Service Repayment 660,000 Cash Flow & Lockbox Reserves 2,500,000 TOTAL EXPENDITURES 4,L53,500 9,45%000 December 17, 2020 FY 20/21 Budget Amendment Page 2 of 2 Revenues are proposed to be increased by $9,643,500, which reflects increasing funds provided by financing by $1,643,500, for a total financing of $5,650,000 and expenditures increase by $9,459,000. The majority of the increase is related to power supply costs, including resource adequacy which begin being incurred in January 2021. The difference between the revenue increase and expenditure will provide funds for cash flow needs. Based on the typical electric billing cycle, cash related to energy sales would not start to be received until late June/early July. FISCAL IMPACT The increase in expenditures is to be funded through financing and energy sales revenue. ATTACHMENTS None