HomeMy WebLinkAbout2021-05-27; Clean Energy Alliance JPA; ; Review Proposed Clean Energy Alliance Fiscal Year 21/22 Budget and Schedule Adoption for June 24, 20211111110.-
CLEAN ENERGY ALLIANCE
Staff Report
DATE: May 27, 2021
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Interim Chief Executive Officer
ITEM 5: Review Proposed Clean Energy Alliance Fiscal Year 21/22 Budget and Schedule Adoption
for June 24, 2021
RECOMMENDATION
Review proposed Clean Energy Alliance Fiscal Year 21/22 Budget and Schedule Adoption for June 24,
2021.
BACKGROUND AND DISCUSSION
The draft fiscal year 21/22 budget represents the first full fiscal year of operations for Clean Energy
Alliance (CEA) and provides funding for a full year of power supply, on-going regulatory compliance
requirements, professional, and legal services required to support operations.
Assumptions used to develop the draft budget are:
•Revenue based on 7% opt out rate — current opt out rate under 5%
•Power supply costs based actual executed contracts and April forward price curves
•Consulting services based on approved contracts
•Reserves to achieve minimum 5% of FY 20/21 and 21/22 revenues
Sufficient revenues are projected to cover costs based on the current assumptions. Energy forward
price curves have been increasing, driven by concerns about summer reliability, impacts of the Texas
winter events on gas prices, low California water reservoir levels and Diablo Canyon Unit 2 concerns.
Should this trend continue, CEA rates would need to be adjusted to reflect the increased costs. Staff
continues to monitor the market and anticipates bringing forward a market update in the fall, along with
an update on San Diego Gas & Electric rates proceedings.
The following additions are recommended to the draft budget:
Program/Key Account Manager position - $50,000
Now that CEA is fully operational, it is recommended a Program/Key Account Management
position be added to research and develop initial programs, work with key customers and provide
Energy Sales Rekenue
Funds provided by Ilnarcing
TOM. REVENUE
$ 6,700,000
$ 5,650,000
$ 12,3$0,mo
$ 53.5/3,003
$ 53,524000
May 27, 2021
Draft FY 21/22 Budget
Page 2 of 2
operational support. The position can be filled through contract initially and transition to a permanent
position.
Human Resources Consultant - $40,000
Human Resources consulting services are needed to develop a staffing plan, job descriptions,
personnel policies and provide recruitment services for transitioning CEA from Interim to permanent
positions over the next fiscal year.
The recommended additions are not yet reflected in the draft budget below.
Clean Energy Alliance
FY 20/21 Estimates and FY 21/22 Proposed Budget
PP 7/421 PI 21/11
Eginetas Naresery
REVENUE
EXPENDITURES
Power Supply . $ 8,350,000
$ 482E0,000
Data Management/Call Center $ 130203
$ 813.000
Staffi re/Consultants $ 120,612
$ 235200
Legal SenAces $ 432,660
$ 5=00
Professional Servioe; $ 420,675
$ 1348,600
AuchtSerk4ces $ flX00
$ 25,000
Software & Menses $ 3230
$ 9.100
CM Bond $ 47,000
CAISO Fee $ 5C6,000
Memberships & Dues $ 15,444
$ 116,000
Printing $ 32256
$ 12,000
Postage $ 53,985
$ 31,103
Advertising $ 7,320
$ 15,000
Insurance $ 5,569
$ 7,003
Bank Fees $ 905
$ 7.000
Miscellaneous $ 8,356
Debt Service $ 713,665
$ 27.5.OW
Cash Collateral Deposits I 5 sssmo
TairALFROECIED BUDGET r $ 11,304000
5 54557,500
Net Results of Operations $ 1050,030 $ 2,025,500
Beginning Fund Balance 1.060000
Ending Fund Balance $ 3,074500
The draft budget provides sufficient funds in reserves to achieve a cumulative 5.74% cumulative
operating reserve.
FISCAL IMPACT
Revenue from energy sales to customers provides funding for the proposed expenditures.
ATTACHMENTS
None