The URL can be used to link to this page

Home My WebLink About2021-02-18; Clean Energy Alliance JPA; ; Clean Energy Alliance Treasurer's ReportCLEAN ENERGY ALLIANCE Staff Report DATE: February 18, 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 January 2021. BACKGROUND AND DISCUSSION This report provides the Board with the following financial information through January 31, 2021: •Statement of Financial Position — Reports assets, liabilities, and financial position of the CEA as of January 31, 2021. •Statement of Revenues, Expenses and Changes in Net Position for the seven months ended January 31, 2021. •Budget to Actuals Comparison Schedule — Reports actual revenues and expenditures compared to the amended budget as of January 31, 2021. •Budget Reconciliation to Statement of Revenues, Expenses and Changes in Net Position •List of Payments Issued — Reports payments issued for January 2021. As of January 31, 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. February 18, 2021 Admin & Regulatory Update Page 2 of 6 JANUARY 31, 2021 REPORTS STATEMENT OF FINANCIAL POSITION CLEAN ENERGY ALLIANCE STATEMENT OF NET POSITION As of January 31, 2021 ASSETS Current Assets Cash Operating Account Total Current Assets Noncurrent Assets Deposits CCA Bond Cash Collateral Deposits-SDG&E Total Noncurrent Assets Total Assets LIABILITIES Current Liabilities Accounts Payable Accrued Liabilities Refundable Deposits 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 $ 90,382.12 90,382.12 247,000.00 240,000.00 487,000.00 577,382.12 100,288.21 6,828.83 75,000.00 182,117.04 186,571.79 151,892.97 165,552.69 504,017.45 Calpine Promissory Note Total Noncurrent Liabilities Total Liabilities NET POSITION Unrestricted (deficit) (758,752.37) Total Net Position $ (758,752.37) 650,000.00 1,154,017.45 1,336,134.49 February 18, 2021 Admin & Regulatory Update 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 seven months ended January 31, 2021 Operating Revenues Operating Expenses Professional Services 458,309.62 Membership 15,000.00 Insurance 5,569.38 Bank Fees 985.00 Webs ite Maintenance 204.00 Total Operating Expenses 480,068.00 Operating Income (Loss) (480,068.00) Change in Net Position (480,068.00) Net Position at beginning of period (278,684.37) Net Position at end of period $ (758,752.37) BUDGET TO ACTUALS COMPARISON SCHEDULE At its August 20, 2020 board meeting, the CEA Board approved a Promissory Note with Calpine Energy Solutions for $400,000 to provide funding for the FY 2020/21 budget through February 2021. A second Promissory Note with Calpine for $250,000 was approved by the CEA Board at its December 19, 2020 board meeting to provide funding for the Financial Security Requirement and the cash collateral deposits required as part of the resource adequacy procurements. Total drawdowns against the Promissory Notes as of January 2021 equal $650,000. The Calpine Promissory Notes were paid off on February 4, 2021 when funds were received from JPMorgan as part of the credit solution approved by the Board at its meeting on January 21, 2021. 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. February 18, 2021 Admin & Regulatory Update Page 4 of 6 Of its approved $13,612,500.00 amended budgeted operating expenses and uses of funds, $867,068.00 has been expended, leaving $12,745,432.00. February 18, 2021 Admin & Regulatory Update Page 5 of 6 CLEAN ENERGY ALLIANCE BUDGET TO ACTUALS COMPARISON SCHEDULE For the seven months ended January 31, 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 8,000,000.00 Professional Services Administrative 120,000.00 78,923.68 41,076.32 Legal 320,000.00 173,870.97 146,129.03 Technical 198,200.00 147,902.25 50,297.75 Data Manager 130,200.00 - 130,200.00 Marketing 102,238.00 48,012.72 54,225.28 Audit 40,000.00 8,000.00 32,000.00 Other 19,562.00 1,600.00 17,962.00 Total Professional Services 930,200.00 458,309.62 471,890.38 Print/Mail Services 132,000.00 - 132,000.00 SDG&E Service Fees & Deposit 83,800.00 - 83,800.00 Membership Dues 15,000.00 15,000.00 - Advertising 10,000.00 10,000.00 Website Maintenance 2,500.00 204.00 2,296.00 Ins urance - 5,569.38 (5,569.38) Bank Fees - 985.00 (985.00) Total Operating Expenses 9,173,500.00 480,068.00 8,693,432.00 Operating Income (Loss) (1,173,500.00) (480,068.00) (693,432.00) Non-Operating Expenses Interest Expense 10,000.00 10,000.00 Other Sources and Uses Sources Credit Solution 5,000,000.00 5,000,000.00 Calpine Promissory Note 650,000.00 650,000.00 Total Sources 5,650,000.00 650,000.00 5,000,000.00 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 585,000.00 240,000.00 345,000.00 Financial Security Requirement 147,000.00 147,000.00 Tota I Uses 4,429,000.00 387,000.00 4,042,000.00 Total Sources and Uses 1,221,000.00 263,000.00 958,000.00 Net Increase (Decrease) in Available Fund Balance $ 37,500.00 $ (217,068.00) $ 254,568.00 Total Operating and Non-Operating Expenses and Uses of Funds $ 13,612,500.00 $ 867,068.00 $ 12,745,432.00 February 18, 2021 Ad min & Regulatory Update 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 seven months ended January 31, 2021 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 from Calpine Promissory Note Add back: Collateral Deposits-SDG&E CCA Bond(Financial Security Reqmt-FSR) $ (217,068.00) (650,000.00) 240,000.00 147,000.00 Change in Net Position $ (480,068.00) LIST OF PAYMENTS ISSUED The report below provides the detail of payments issued by CEA for January 2021. All payments were within approved budget. Clean Energy Alliance List of Payments Issued January 2021 Date Via Vendor Description Amount 01/19/21 ACH Tosdal APC Dec 2020 Regulatory Counsel Svcs 7,846.68 01/19/21 ACH Keyes & Fox LLP Dec ERRA Forecast Counsel Services 9,452.75 01/19/21 ACH Tripepi, Smith & Associates, Inc. 7 Grnail inboxes for CAC members 528.85 01/19/21 ACH Richards, Watson & Gershon Nov 2020 General Counsel Svcs 3,746.00 01/19/21 ACH Lance, Soil & Lunghard, LLP 2020 Government Audit (Fieldwork & Draft Repo 7,200.00 01/19/21 ACH Tripepi, Smith & Associates, Inc. Dec 2020 Retainer/Reimbursables 10,219.75 01/19/21 ACH Bayshore Consulting Group, Inc DecCE0 Services 13,270.00 01/19/21 ACH Pacific Energy Advisors, Inc Dec 2020 Technical Consulting Svcs 23,600.00 01/19/21 ACH Hall Energy Law PC Dec 2020 Energy Procurement Counsel Svcs 2,380.00 Total December Payments $ 78,244.03 FISCAL IMPACT There is no fiscal impact associated with these items.