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HomeMy WebLinkAbout2021-09-30; Clean Energy Alliance JPA; ; Clean Energy Alliance Treasurer's Report-I!. +:k &. CLEAN ENERGY ALLIANCE Staff Report DATE: September 30, 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 August 2021. BACKGROUND AND DISCUSSION This report provides the Board with the following financial information through August 31, 2021: • Statement of Financial Position (Unaudited) -Reports assets, liabilities, and financial position of the CEA as of August 31, 2021. • Statement of Revenues, Expenses and Changes in Net Position (Unaudited) for the two months ended August 31, 2021. • Budget to Actuals Comparison Schedule (Unaudited) -Reports actual revenues and expenditures compared to the adopted budget as of August 31, 2021. • . Budget Reconciliation to Statement of Revenues, Expenses and Changes in Net Position • List of Payments Issued -Reports payments issued for August 2021. As of August 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. AUGUST 31, 2021, REPORTS STATEMENT OF FINANCIAL POSITION (Unaudited) CLEAN ENERGY ALLIANCE STATEMENT OF NET POSITION As of August 31, 2021 ASSETS Current Assets Cash Operating Account Lockbox Account A/R Customers A/R NEMS Total Current Assets Noncurrent Assets Deposits CCA Bond CAISO Collateral Deposit SDG&E Collateral Deposits Total Noncurrent Assets Tota I Assets Current Liabilities LIABILITIES Accounts Payable Accrued Liabilities Electric Energy Surcharge 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 JPMorgan Revolving Credit Agreement Total Noncurrent Liabilities Total Liabilities NET POSITION Unrestricted (deficit) Total Net Position September 30, 2021 CEA Treasurer's Report Page 2 of 6 $ 2,550,484.47 1,303,425.16 6,804,272.85 473,847.34 $ 11,132,029.82 147,000.00 500,000.00 585,000.00 1,232,000.00 12,364,029.82 3,641,662.75 58,697.96 49,271.88 3,749,632.59 186,571.79 151,892.97 165,552.69 504,017.45 5,750,000.00 6,254,017.45 10,003,650.04 2,360,379.78 2,360,379.78 September 30, 2021 CEA Treasurer's Report Page 3 of 6 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION (Unaudited) CLEAN ENERGY ALLIANCE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the two months ended August 31, 2021 Operating Revenues Operating Expenses Power Supply Data Manager Staffing/Consultants Legal Services Professional Services Software & Licenses Membership Dues Print/Mail Services Bank Fees Miscellaneous Total Operating Expenses Operating Income (Loss) Non-Operating Expenses Interest Expense. Change in Net Position Net Position at beginning of period Net Position at end of period BUDGET TO ACTUALS COMPARISON SCHEDULE $ 10,512,647.16 $ 4,939,752.36 141,134.00 23,737.50 46,311.81 126,799.50 716.00 28,399.50 43,028.61 369.38 488.74 5,350,737.40 5,161,909.76 (24,301.04) 5,137,608.72 (2,777,228.94) $ 2,360,379.78 CEA received its first customer revenue in June 2021 and revenue has been increasing as CEA ramps ups it service to customers. 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. Drawdowns through June 30, 2021, equaled $5MM. A drawdown was made on July 12, 2021, in the amount of $250,000 and on August 9, 2021, in the amount of $500,000 for a total borrowing of $5,750,000. At its June 24, 2021, board meeting, the CEA Board adopted the Fiscal Year (FY) 2021/22 budget approving $51,547,500 in total operating expenses and uses of funds. Through August 2021, $5,375,038.44 has been expended, leaving $46,172,461.56. The Budget to Actuals Comparison Schedule is shown on the next page. September 30, 2021 CEA Treasurer's Report Page 4 of 6 CLEAN ENERGY ALLIANCE BUDGET TO ACTUALS COMPARISON SCHEDULE For the two months ended August 31, 2021 ADOPTED BUDGET ACTUALS VARIANCE Operating Revenues Energy Sales $ 53,573,000.00 $10,512,647.16 $ 43,060,352.84 Total Operating Revenue 53,573,000.00 10,512,647.16 43,060,352.84 Operating Expenses Power Supply 48,700,000.00 4,939,752.36 43,760,247.64 Data Manager 811,000.00 141,134.00 669,866.00 Staffing/Consultants 235,700.00 23,737.50 211,962.50 Legal Services 510,000.00 46,311.81 463,688.19 Professional Services Technical 283,200.00 47,200.00 236,000.00 Schedule Coordinator 155,400.00 23,400.00 132,000.00 Marketing 115,000.00 15,783.16 99,216.84 SDGE Service Fees 270,000.00 39,541.34 230,458.66 Other Professional Services 25,000.00 875.00 24,125.00 848,600.00 126,799.50 721,800.50 Audit Services 25,000.00 25,000.00 Software & Licenses 9,100.00 716.00 8,384.00 Membership Dues 116,000.00 28,399.50 87,600.50 Print/Mail Services 43,100.00 43,028.61 71.39 Advertising 15,000.00 15,000.00 Insurance 7,000.00 7,000.00 Bank Fees 2,000.00 369.38 1,630.62 Miscellaneous 488.74 (488.74) Total Operating Expenses 51,322,500.00 5,350,737.40 45,971,762.60 Operating Income (Loss) 2,250,500.00 5,161,909.76 (2,911,409.76) Non-Operating Expenses Interest Expense 225,000.00 24,301.04 200,698.96 Other Sources and Uses Sources JPMorgan Revolving Credit Agreement 750,000.00 (750,000.00) Total Sources 750,000.00 (750,000.00) Net Increase (Decrease) in Available Fund Balance $ 2,025,500.00 $ 5,887,608.72 $ (3,862,108.72) Total Operating and Non-Operating Expenses and Uses of Funds $ 51,547,500.00 $ 5,375,038.44 $ 46,172,461.56 September 30, 2021 CEA Treasurer's Report 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 two months ended August 31, 2021 Net Increase (Decrease) in Available Fund Balance per Budgetary Comparison Schedule $ 5,887,608.72 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 Change in Net Position LIST OF PAYMENTS ISSUED (750,000.00} $ 5,137,608.72 The report on the following page provides the detail of payments issued by CEA for August 2021. All payments were within approved budget. Date Via Vendor 08/02/21 WIRE JPMorgan 08/02/21 WIRE JPMorgan 08/02/21 WIRE Powerex 08/02/21 WIRE The Energy Authority (TEA) 08/02/21 WIRE Neyenesch Printers 08/02/21 ACH CalCCA 08/03/21 ACH USPS 08/09/21 WIRE JPMorgan 08/09/21 WIRE The Energy Authority (TEA) 08/09/21 ACH OneStream Networks, LLC 08/13/21 WIRE JPMorgan 08/16/21 WIRE The Energy Authority (TEA) 08/19/21 ACH USPS 08/20/21 WIRE Powerex 08/20/21 WIRE Direct Energy 08/20/21 WIRE SDG&E 08/23/21 WIRE The Energy Authority (TEA) 08/25/21 WIRE Powerex 08/25/21 ACH USPS 08/30/21 WIRE The Energy Authority (TEA) Clean Energy Alliance List of Payments Issued August 2021 Description 1-Jul-2021 l-Aug-202132 days $500,000.00 3.700000% 6-Jul-20215-Aug-202131 days $1,500,000.00 3.700000% PCC2 Prepayment (#'s 1 & 2 of 6)(2021) 07/09/21-07/15/21 Payments through 07 /31/21 . Ql FY 21-22 08/03/21 Mailing 7-Jul-20218-Aug-202133 days $3,000,000.00 3.700000% 07 /16/21-07 /22/21 Jul 2021 Telephone 12-Jul-202111-Aug-202131 days $250,000.00 3.700000% 07/23/21-07/29/21 08/19/21 Mailing Jul 2021 Carbon Free Energy Sales July 2021 PWR-CAP CAPACITY July 2021 RA Sales 07/30/21-08/05/21 PCC2 Prepayment(# 3 of 6)(2021) 08/25/21 Mailing 08/06/21-08/12/21 Total August Payments-Operating Account 08/20/21 WIRE Shell Oil North America June 2021 Power Sale 08/20/21 WIRE Morgan Stanley Capital Group, Inc. June 2021 Power Sale Total August Payments-Lockbox Account Amount $ 1,644.44 4,779.17 249,083.33 276,901.80 4,001.07 28,399.50 1,252.31 10,175.00 304,508.02 283.29 796.53 331,077.22 302.35 80,132.50 254,500.00 623,837.80 267,805.06 124,541.67 13,924.96 192,244.80 $2,770,190.82 $1,892,176.19 964,853.74 $2,857,029.93 FISCAL IMPACT There is no fiscal impact associated with these items. September 30, 2021 CEA Treasurer's Report Page 6 of 6