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HomeMy WebLinkAbout2021-06-24; Clean Energy Alliance JPA; ; Clean Energy Alliance Treasurer's Report111111111w- CLEAN ENERGYALLIANCE Staff Report DATE: June 24, 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 May 2021. BACKGROUND AND DISCUSSION: This report provides the Board with the following financial information through May 31, 2021: •Statement of Financial Position — Reports assets, liabilities, and financial position of the CEA as of May 31, 2021. •Statement of Revenues, Expenses and Changes in Net Position for the eleven months ended May 31, 2021. •Budget to Actuals Comparison Schedule — Reports actual revenues and expenditures compared to the amended budget as of May 31, 2021. •Budget Reconciliation to Statement of Revenues, Expenses and Changes in Net Position •List of Payments Issued — Reports payments issued for May 2021. As of May 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. June 24, 2021 Admin & Regulatory Update Page 2 of 7 MAY 31, 2021 REPORTS STATEMENT OF FINANCIAL POSITION CLEAN ENERGY ALLIANCE STATEMENT OF NET POSITION As of May 31, 2021 ASSETS Current Assets Cash Operating Account $ 514,868.24 Lockbox Account 100,000.00 A/R Customers 1,226.31 A/R Miscellaneous 154,298.42 Total Current Assets 770,392.97 Noncurrent Assets Deposits CCA Bond 147,000.00 CAISO Collateral Deposit 500,000.00 SDG&E Collateral Deposits 585,000.00 Total Noncurrent Assets 1,232,000.00 Total Assets 2,002,392.97 LIABILITIES Current Liabilities Accounts Payable 115,598.84 Accrued Liabilities 16,552.00 Refundable Deposits 75,000.00 Electric Energy Surcharge 8.28 NEMS Liability 15.65 Total Current Liabilities 207,174.77 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 4,500,000.00 Total Noncurrent Liabilities 5,004,017.45 Total Liabilities 5,211,192.22 NET POSITION Unrestricted (deficit) (3,208,799.25) Total Net Position $ (3,208,799.25) June 24, 2021 Admin & Regulatory Update Page 3 of 7 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION CLEAN ENERGY ALLIANCE STATEMENT OF REVENUES, EXPENSES AND. CHANGES IN NET POSITION For the eleven months ended May 31, 2021 Operating Revenues $ 1,218.03 Operating Expenses Power Supply $ 1,871,916.07 Professional Services 913,013.74 Print/Mail Services 64,240.74 Membership Dues 15,444.00 Advertising 8,108,51 Website Maintenance 204.00 Insurance 5,569.38 Bank Fees 985.00 Subscriptions/Publications 399.00 Miscellaneous G&A 4,847.24 NEM Expense 15.65 Total Operating Expenses 2,884,743.33 Operating Income (Loss) (2,883,525.30) Non-Operating Expenses Interest Expense (46,589.58) Change in Net Position (2,930,114.88) Net Position at beginning of period (278,684.37) Net Position at end of period $ (3,208,799.25) BUDGET TO ACTUALS COMPARISON SCHEDULE CEA received its first customer revenue in May 2021! The amount, $1,218.03, represents revenue from 340 accounts transferred to CEA and then closed in May. 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. A second drawdown was made on May 1, 2021 in the amount of $1.5MM. 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 June 24, 2021 Admin & Regulatory Update Page 4 of 7 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, $3,663,332.91 has been expended, leaving $9,949,167.09. The Budget to Actuals Comparison Schedule is shown on the next page. June 24, 2021 Admin & Regulatory Update Page 5 of 7 CLEAN ENERGY ALLIANCE BUDGET TO ACTUALS COMPARISON SCHEDULE For the eleven months ended May 31, 2021 AMENDED BUDGET ACTUALS VARIANCE Operating Revenues Energy Sales 8,000,000.00 $ 1,218.03 $ 7,998,781.97 Total Operating Revenue 8,000,000.00 1,218.03 7,998,781.97 Operating Expenses Power Supply 8,000,000.00 1,871,916.07 6,128,083.93 Professional Services Administrative 120,000.00 135,811.02 (15,811.02) Accounting 10,000.00 20,504.80 (10,504.80) Legal 320,000.00 384,648.45 (64,648.45) Technical 198,200.00 242,302.25 (44,102.25) Data Manager 130,200.00 19,900.00 110,300.00 Marketing 102,238.00 93,289.72 8,948.28 Audit 40,000.00 8,000.00 32,000.00 Other 9,562.00 8,557.50 1,004.50 Total Professional Services 930,200.00 913,013.74 17,186.26 Print/Mail Services 132,000.00 64,240.74 67,759.26 SDG&E Service Fees & Deposit 83,800.00 83,800.00 Membership Dues 15,000.00 15,444.00 (444.00) Advertising 10,000.00 8,108.51 1,891.49 Website Maintenance 2,500.00 204.00 2,296.00 Insurance - 5,569.38 (5,569.38) Bank Fees 985.00 (985.00) Subscriptions/Publications - 399.00 (399.00) Miscellaneous G&A - 4,847.24 (4,847.24) NEM Expense 15.65 (15.65) Total Operating Expenses 9,173,500.00 2,884,743.33 6,288,756.67 Operating Income (Loss) (1,173,500.00) (2,883,525.30) 1,710,025.30 Non-Operating Expenses Interest Expense 10,000.00 46,589.58 (36,589.58) Other Sources and Uses Sources JPMorgan Revolving Credit Agreement 5,000,000.00 4,500,000.00 500,000.00 Calpine Promissory Note 650,000.00 650,000.00 Total Sources 5,650,000.00 4,500,000.00 1,150,000.00 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 3,768,000.00 (2,547,000.00) Net Increase (Decrease) in Available Fund Balance 37,500.00 $ 837,885.12 $ (800,385.12) Total Operating and Non-Operating Expenses and Uses of Funds 13,612,500.00 $ 3,663,332.91 $ 9,949,167.09 , June 24, 2021 Admin & Regulatory Update Page 6 of 7 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 eleven months ended May 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-JPMorgan Revolving Credit Agreement Add back: Collateral Deposits-SDG&E CCA Bond(Financial Security Reqmt-FSR) Change in Net Position LIST OF PAYMENTS ISSUED $ 837,885.12 (4,500,000.00) 585,000.00 147,000.00 $ (2,930,114.88) The report on the following page provides the detail of payments issued by CEA for May 2021. All payments were within approved budget. June 24, 2021 Admin & Regulatory Update Page 7 of 7 Clean Energy Alliance List of Payments Issued May 2021 Date Via Vendor Description Amount 05/03/21 WIRE JPMorgan 05/03/21 WIRE JPMorgan 05/03/21 ACH OneStream Networks, LLC 05/03/21 ACH USPS 05/05/21 ACH Neyenesch Printers 05/06/21 WIRE JPMorgan 05/07/21 ACH USPS 05/17/21 WIRE Direct Energy 05/17/21 WIRE SDG&E 05/17/21 ACH The Coast News Group 05/17/21 ACH The Coast News Group 05/17/21 ACH Tullett Prebon Americas Corp 05/17/21 ACH Tripepi, Smith & Associates, Inc. 05/17/21 ACH Bolt Energy Marketing, LLC 05/17/21 ACH USPS 05/24/21 ACH Keyes & Fox LIP 05/24/21 ACH Tosdal APC 05/24/21 ACH Bayshore Consulting Group, Inc 05/24/21 ACH OneStream Networks, LLC 05/24/21 ACH Neyenesch Printers 05/24/21 ACH Pacific Energy Advisors, Inc 05/24/21 ACH Richards, Watson & Gershon 05/24/21 ACH Tripepi, Smith & Associates, Inc. 05/24/21 ACH Hall Energy Law PC 05/25/21 ACH USPS FISCAL IMPACT 6-Apr-2021 5-May-2021 30 days $3,000,000 3.700000% 1-Apr-2021 3-May-2021 33 days $1,500,000 3.700000% March Telephone 04/29/21 Mailing Statement 3-Feb-2021 31-Mar-2021 57 days $3,000,000.00 2.150000% (un 05/05/21 Mailing April 2021 PWR-CAP April 2021 RA Sales TCN AD TCN AD 01/15/21 Brokers Fee (Direct Energy)(Invoice Date 01/31/21)(81 Apr 2021 Retainer April 2021 Invoice Resource Adequacy Confirmation Letters 05/13/21 Mailing Apr ERRA Forecast Counsel Services Apr 2021 Regulatory Counsel Svcs Apr CEO/Clerk Services April Telephone Statement Apr 2021 Technical Consulting Svcs March General Counsel Services Apr 2021 Video Shoot/General Acct Support Apr 2021 Energy Procurement Counsel Svcs 05/24/21 Mailing Total May Payments $ 9,250.00 5,087.50 132.37 153.09 2,694.52 10,212.50 2,013.52 157,000.00 623,733.00 465.00 465.00 1,237.50 9,223.75 74,750.00 1,940.76 1,894.50 5,919.30 19,464.98 328.96 8,536.14 23,600.00 2,666.50 2,737.50 4,105.50 3,402.94 $ 971,014.83 There is no fiscal impact associated with these items.