Staff Report Item 16
Staff Report Item 16
TO: East Bay Community Energy Board of Directors
FROM: Jason Bartlett, Finance Manager
SUBJECT: Fiscal Year 2022-2023 Mid-Year Budget Report (Informational) DATE: February 15, 2023
__________________________________________________________________ Recommendation
Receive the report informing the Board of the mid-year Budget position for the 2022-2023 fiscal year.
Background and Discussion
This staff report compares EBCE’s financial performance for the current fiscal year from July 1, 2022 through December 31, 2022 and updated projections through June 30, 2023, with the approved June budget. Attachment A provides the numerical table summaries and comparisons. The difference for each category shown in dollar amounts and percentages relative to budgeted amounts.
Highlights and assumptions from this comparison are listed here:
• Revenues
o Electricity sales are 13% above budgeted amounts due to CPUC approving higher than expected rates in the 2023 calendar year
o Uncollectable amounts are still estimated at 1.5% through the fiscal year o Other operating revenue is up due to payments made from counterparty shortfalls
• Energy Costs
o Cost of Energy is 33% above budgeted amounts due to higher than expected market prices. December and January, in particular, had high market prices due to regional storage shortages
• Operating Overhead
o Overhead is 17% below budgeted amounts due to less than expected costs with personnel, as not all positions have been filled, and resulting reduced costs in all areas
Staff Report Item 16
• Non-Operational Position
o The 10% decrease in Non-Operating Position is due to adjusted development schedule with the new building rehabilitation
• Net Position
o Net Position is 26% below budget estimates due to the significant increase in expected energy prices despite rising rates in 2023 calendar year.
Fiscal Impact
This report has no fiscal impact on operations
Attachments
A. FY 2022-23 Mid-Year Budget Report Table
Attachment Staff Report Item 16A
ITEM 14A: FY 2023-2023 Mid-Year Budget Comparison
BUDGET ACTUAL DELTA %D
OPERATIONS
REVENUE & OTHER SOURCES
Operating Revenue
Electricity Sales 792,009,000 893,106,000 101,097,000 12.8% Uncollectables (15,840,000) (15,555,000) 285,000 -1.8%
Other Operations Revenue (6,229,000) 12,346,000 18,575,000 -298.2% Total Operating Revenue 769,940,000 889,897,000 119,957,000 15.6%
EXPENSES & OTHER USES
Energy Operating Expenses
Cost of Energy 523,995,000 699,181,000 175,186,000 33.4% Data Management/CRM 7,834,000 7,852,000 18,000 0.2%
Billing & Metering 2,715,000 2,712,000 (3,000) -0.1%
Scheduling 696,000 703,000 7,000 1.0%
Total Energy Operating Expenses 535,240,000 710,448,000 175,208,000 32.7% Overhead Operating Expenses
Personnel 15,711,000 13,480,000 (2,231,000) -14.2%
Marketing & Communications 2,874,000 2,070,000 (804,000) -28.0% Legal, Policy, & Regulatory Affairs 2,486,000 1,829,000 (657,000) -26.4% Other Professional Services 2,293,000 1,811,000 (482,000) -21.0% General & Administrative 3,882,000 3,412,000 (470,000) -12.1% Depreciation 180,000 192,000 12,000 6.7%
Total Overhead Operating Expenses 27,426,000 22,794,000 (4,632,000) -16.9% Total Operating Expenses 562,666,000 733,242,000 170,576,000 30.3%
NON-OPERATIONS
NON-OPERATING REVENUE
Interest Income 261,000 921,000 660,000 252.9%
Grants 0 772,000 772,000 0.0%
Other Non-Operating Revenue 15,000 134,000 119,000 793.3% Total Non-Operating Revenue 276,000 1,827,000 1,551,000 562.0%
NON-OPERATING EXPENSES
Borrowing Interest 1,440,000 1,079,000 (361,000) -25.1% Local Development Funding 22,550,000 22,550,000 0 0.0%
Capital Expenditures 7,000,000 4,105,000 (2,895,000) -41.4% Total Non-Operating Expenses 30,990,000 27,734,000 (3,256,000) -10.5% NET NON-OPERATING POSITION (30,714,000) (25,907,000) 4,807,000 -15.7% TOTAL REVENUES 770,216,000 891,724,000 121,508,000 15.8% TOTAL EXPENSES 593,656,000 760,976,000 167,320,000 28.2% NET INCREASE(DECREASE) IN POSITION 176,560,000 130,748,000 (45,812,000) -25.9%