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Home My WebLink About2021-03-25; Clean Energy Alliance JPA; ; Clean Energy Alliance Treasurer's Report4111110- CLEAN ENERGYALLIANCE Staff Report DATE: March 25, 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 February 2021. BACKGROUND AND DISCUSSION This report provides the Board with the following financial information through February 28, 2021: •Statement of Financial Position — Reports assets, liabilities, and financial position of the CEA as of February 28, 2021. •Statement of Revenues, Expenses and Changes in Net Position for the eight months ended February 28, 2021. •Budget to Actuals Comparison Schedule — Reports actual revenues and expenditures compared to the amended budget as of February 28, 2021. •Budget Reconciliation to Statement of Revenues, Expenses and Changes in Net Position •List of Payments Issued — Reports payments issued for February 2021. As of February 28, 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. March 25, 2021 Admin & Regulatory Update Page 2 of 6 FEBRUARY 28, 2021 REPORTS STATEMENT OF FINANCIAL POSITION CLEAN ENERGY ALLIANCE STATEMENT OF NET POSITION As of February 28,2021 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 $ 1,387,734.16 1,387,734.16 247,000.00 585,000.00 832,000.00 2,219,734.16 138,338.26 12,890.00 75,000.00 226,228.26 Noncurrent Liabilities Due to Member Agencies Due to City of Carlsbad 186,571.79 Due to City of Del Mar 151,892.97 Due to City of Solana Beach 165,552.69 Total Due to Member Agencies 504,017.45 JPMorgan Revolving Credit Agreement 3,000,000.00 Total Noncurrent Liabilities 3,504,017.45 Total Liabilities 3,730,245.71 NET POSITION Unrestricted (deficit) (1,510,511.55) Total Net Position $(1,510,511.55) STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION March 25, 2021 Admin & Regulatory Update Page 3 of 6 CLEAN ENERGY ALLIANCE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the eight months ended February 28, 2021 Operating Revenues Operating Expenses Power Supply $ 548,716.83 Professional Services 658,429.05 Members hip 15,000.00 Insurance 5,569.38 Bank Fees 985.00 Website Maintenance 204.00 Total Operating Expenses 1,228,904.26 Operating Income (Loss) (1,228,904.26) Non-Operating Expenses Interest Expense (2,922.92) Change in Net Position (1,231,827.18) Net Position at beginning of period (278,684.37) Net Position at end of period $(1,510,511.55) BUDGET TO ACTUALS COMPARISON SCHEDULE 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 Agreement 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. 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. 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. March 25, 2021 Admin & Regulatory Update Page 4 of 6 CLEAN ENERGY ALLIANCE BUDGET TO ACTUALS COMPARISON SCHEDULE For the eight months ended February 28, 2021 Operating Revenues AMENDED BUDGET ACTUALS VARIANCE Energy Sales $ 8,000,000.00 $ - $ s,000,000.00 Total Operating Revenue 8,000,000.00 8,000,000.00 Operating Expenses Power Supply 8,000,000.00 548,716.83 7,451,283.17 Professional Services Administrative 120,000.00 97,393.68 22,606.32 Legal 320,000.00 316,841.65 3,158.35 Technical 198,200.00 171,502.25 26,697.75 Data Manager 130,200.00 130,200.00 Marketing 102,238.00 57,371.47 44,866.53 Audit 40,000.00 8,000.00 32,000.00 Other 19,562.00 7,320.00 12,242.00 Total Professional Services 930,200.00 658,429.05 271,770.95 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 Insurance 5,569.38 (5,569.38) Bank Fees 985.00 (985.00) Total Operating Expenses 9,173,500.00 1,228,904.26 7,944,595.74 Operating Income (Loss) (1,173,500.00) (1,228,904.26) 55,404.26 Non-Operating Expenses Interest Expense 10,000.00 2,922.92 7,077.08 Other Sources and Uses Sources JPMorgan Revolving Credit Agreement 5,000,000.00 3,000,000.00 2,000,000.00 Calpine Promissory Note 650,000.00 650,000.00 Total Sources 5,650,000.00 3,000,000.00 2,650,000.00 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 4,429,000.00 732,000.00 3,697,000.00 Total Sources and Uses 1,221,000.00 2,268,000.00 (1,047,000.00) Net Increase (Decrease) in Available Fund Balance $ 37,500.00 $ 1,036,172.82 $ (998,672.82) Total Operating and Non-Operating Expenses and Uses of Funds $ 13,612,500.00 $ 1,963,827.18 $ 11,64.8,672.82 March 25, 2021 Admin & Regulatory Update 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 eight months ended February 28, 2021 Net Increase (Decrease) in Available Fund Balance per Budgetary Comparison Schedule $ 1,036,172.82 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 (3,000,000.00) Add back: Collateral Deposits-SDG&E 585,000.00 CCA Bond(Financial Security Reqmt-FSR) 147,000.00 Change in Net Position $ (1,231,827.18) LIST OF PAYMENTS ISSUED The report on the following page provides the detail of payments issued by CEA for February 2021. All payments were within approved budget. March 25, 2021 Admin & Regulatory Update Page 6 of 6 Clean Energy Alliance List of Payments Issued February 2021 Date Via Vendor Description Amount 02/04/21 WIRE Ca!pine Promissory Note Payoff 652,922.92 02/12/21 WIRE CAI50 Candidate CRR Holder Application 5,000.00 02/12/21 WIRE SDG&E Cash Collateral Deposits 345,000.00 02/16/21 ACH Integra Insurance Services, Inc. General Liability Insurance 1,074.38 02/16/21 ACH Integra Insurance Services, Inc. D&O Insurance 4,495.00 02/16/21 ACH Richards, Watson & Gershon Dec 2020 General Counsel Svcs 8,149.00 02/16/21 ACH CalCCA FY 20-21 Operational Membership contributions 15,000.00 02/16/21 ACH Tripepi, Smith & Associates, Inc. Jan Zoom Meetings 548.80 02/16/21 ACH Lance, Soil & Lunghard, LLP 2020 Governtnent Audit (Project Completion/Report Issuance) 800.00 02/16/21 ACH Tosda I APC Jan 2021 Regulatory Counsel Svcs 8,569.28 02/16/21 ACH Bayshore Consulting Group, Inc Jan CEO Services 16,511.25 02/17/21 ACH Pacific Energy Advisors, Inc Jan 2021 Technical Consulting Svcs 23,600.00 02/17/21 ACH Hall Energy Law PC Jan 2021 Energy Procurement Counsel Svcs 6,426.00 02/17/21 ACH Tripepi, Smith & Associates, Inc. Jan 2021 Retainer 9,223.75 02/17/21 ACH Keyes & Fox LLP Jan 2021 ERRA Forecast Counsel Services 5,890.75 02/19/21 ACH Bolt Energy Marketing, LLC January 2021 Invoice Resource Adequacy Confirmation Letters 74,750.00 02/19/21 ACH Tullett Prebon Americas Corp Physical Transactions - Subtotals for: 15-Jan-21 720.00 02/22/21 WIRE Direct Energy Jan 2021 PWR-CAP 157,000.00 02/22/21 WIRE SDG&E January 2021 RA Sales 623,837.80 02/26/21 ACH Chapman and Cutler, LLP JP Morgan Revolving Line of Credit 50,000.00 Total February Payments $ 2,009,518.93 FISCAL IMPACT There is no fiscal impact associated with these items.