HomeMy WebLinkAbout2022-02-24; Clean Energy Alliance JPA; ; Consider Approval of Fiscal Year 2021/2022 Midyear Budget Adjustment~-1..-
CLEAN ENERGY ALLIANCE
DATE:
TO:
FROM:
Staff Report
February 24, 2022
Clean Energy Alliance Board of Directors
Barbara Boswell, Chief Executive Officer
ITEMS: Consider Approval of Fiscal Year 2021/2022 Midyear Budget Adjustment
RECOMMENDATION
Approve Fiscal Year 2021/2022 Midyear Budget Adjustment increasing revenues $9,709,755 and
expenditures $9,507,525.
BACKGROUND AND DISCUSSION
Fiscal year 2021/2022 is the first full fiscal year of Clean Energy Alliance (CEA) serving customers. The
initial budget was prepared using estimates based on the best information available. Staff has reviewed
expenses to date, current contracts and revenue projections and prepared the proposed midyear
budget adjustment based on the updated assumptions.
Revenue
Revenue projections have been updated to reflect actual usage of CEA's current customer based and
rates adopted effective 2/1/2022. Based on the analysis, staff recommends the following adjustment to
energy sales revenue:
Updated Energy Sales Revenue Estimate $53,573,000
Adopted Energy Sales Revenue Estimate $57,282,755
Midyear Adjustment $3,709,755
Based on updated assumptions, energy sales revenue is anticipated to come in $3,709,755 higher than
original projections.
At its adjourned regular meeting January 13, 2022, the CEA Board approved an increase in the credit
facility with JPMorgan. CEA will be drawing down $6,000,000 from the line of credit to meet its fiscal
year 2021/2022 obligations. The midyear budget adjustment reflects the funds from the credit line.
Expenditures
The following adjustments to expenditures are recommended:
Power Supply $9,522,525
Data Management/Call Center $29,000
Legal Fees ($135,000)
Professional Services $40,000
Audit Services $16,000
Memberships & Dues $5,000
Printing $15,000
Postage ($10,000)
Insurance $25,000
TOTAL EXPENDITURES
ADJUSTMENT $9,507,525
February 24, 2022
Midyear Budget Adjustment
Page 2 of2
Adjust to reflect current contracts
& market
Increase to reflect higher
participation
Reduce to reflect actual costs
Increase for CEA Expansion
Activity
Add Triennial AMI Audit
To reflect CalCCA membership
Adjust for annual mailings
Adjust to actual costs
Add Cyber Security and Errors &
Omissions Policies
The net change to results of operations ($9,709,755 -$9,507,525), in the amount of $202,230 will
increase ending fund balance.
FISCAL IMPACT
The proposed midyear budget adjustment increases revenue $9,709,755 and expenses $9,507,525, with
the net increasing fund balance.
ATTACHMENTS
Attachment A-Clean Energy Alliance Fiscal Year 2021/2022 Budget Detail
FV 21/22
Adopted
Budget
Oun Energy Alliance
DraftBudeet
Flsc•I V••rs 20/21 •nd 21/22
FV 21/22 FV 21/22
Proposed Midyear
Midyear Adjusted
Adjustment Budget
Item 5 Attachment A
NOTES
REVEN.r.U:"E---:--:--:------,------,.,--:-:-=-::::=-r-.-::-----::,=::-=::=-,------r:--=:==:-i Ener y Sales Revenue S3,S73,000 3,709,7SS S7,282,7SS
Funds rOYfded by Financl
TOTAL REVENUE
EXPENDITURES
Power Su ........
Data Manaa.ement/Call Center
Stafflna/Consultants
CEO
Interim Treasurer
Interim Board aerie
Other Services
Le•al Services
General Counsel
Special Counsel -Regulatory
Soeclal Counsel • K &F
Soecial Counsel -Transactions
Soeclal Counsel -FlnanciNr:
Sooclal Counsel -BBSW
Professional Services
PEA
TS Communications
Schedulln1 Coordinator
Other Graphics Needs (TS)
Other Professional Svcs
JPMor11an Amendment Fees
SDGE Ser\4ce Fees
Teleohone Ser\4ces
Audit Sel"Vlces
Annual Audit
Trienniel AMI Audit
Softwa,e & Licenses
Gtanlcus • FPPC Flllrur
OocuSl11n
Dropbox
QulckBool<s
Memberships & Dues
C.ICCA
Other
Printing
Postage
AdYertisl""
Insurance
Bank Fees
Mlscellaneous
Debt Service
TOTAL PROJECTED BUDGET
Net Results of Operations
Beginning Fund Balance
Ending Fund Balance
$
$
$
$
$ s
$
$
$
$
$
$
$
s
$
$ s
5
$
s
$
$
$
$
135,000
50,000
50,700
$
120,000
100,000
110,000
110,000
0
50000 s
183,100
95,000
155,400
10,000
15,000
170,000
s
15,000
$
500
1,500
1,500
3,600
$
115,000
1,000
$ s
$ s s
$
$
S3,S73,000
48,700,000
811,000
23S,700
Sl0,000
848,600
2S,OOO
9,100
116,000
12,000
31,100
15,000
7,000
2,000
22S,OOO
51,547,500
2,025,500
(2,707,414)
(681,914)
$
$
$
s
$
$
s
$
$ s
$
$
s
s s
s
$
6,000,000
9,709,7SS
9,S22,52S
29,000
$
$
$
(30,000) $
(50,000)
190,000
JS,000
50,000
llS,OOOj
30,000
(30,000)
S,000
16,000
S,000
15,000
(10,000)
2S,OOO
9,507,525
202,230
(2,707,414)
(2,SOS,184)
$
$
$
$
$
$
$
$
$ s s s s
s
$
$ s
$
$
$
$
135,000
50,000
50,700
90,000
100,000
70,000
30,000
35,000
50,000
333,200
95,000
140,400
20,000
15,000
30,000
140,000
5,000
15,000
16,000
500
1,500
2,500
3,600
110,000
1,000
$
$ s
s
$
$
$
s
$
$
$
$
$
s
$
6,000,000
63,282,7SS
S8,222,S25
840,000
23S,700
37S,OOO
888,600
41,000
9,100
121,000
27,000
21,100
lS,000
32,000
2,000
22S,OOO
61,0SS,02S
2,227,730
(2,707,414)
(479,684)
Adjust to upaated projections
Adjust to updated projections
Adjust to updated projections
Credit Line Amendment
CEA Expansion Assessment Reaon'!. and Implementation Plan Amendmen
Credit Line Amendment
Adjust to updated projections
Add Trienniel AMI Audit
On·Golllfl Mailers; JRM; PO.
On~GoinR Mailers; JRM· PCl
Various Print Advertisements
Add ewer Security and Errors & Omissions Policies
Interest Expense
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