Staff Report Item 16
Staff Report Item 16
TO: East Bay Community Energy Board of Supervisors
FROM: Nick Chaset, CEO
SUBJECT: Draft EBCE Budget Fiscal Year 2023-2024 (Informational Item) DATE: May 17, 2023
________________________________________________________________________ Recommendation
Receive and review the draft budget for fiscal year 2023-2024.
Background and Discussion
EBCE’s fiscal year is from July 1 through June 30. Staff is presenting a proposed draft budget for fiscal year 2023-2024.
This budget presents changes to EBCE’s value proposition by recommending an increase from 3% to 5% discount relative to PG&E rates for EBCE’s Bright Choice product and decreasing the premium of the Renewable 100 product from $0.0075 to $0.0025.
This budget also presents a large net position surplus as a base-case scenario. Staff is recommending a method to manage this surplus to increase EBCE’s value to the community through four processes:
1. Significant contributions to working capital and reserves to ensure agency solvency in the event of possible risk contingencies
2. Increase value proposition customer discount and establish on-bill credits as levels of net position surplus are realized through the year
3. Increase in carbon free energy procurement with short and long-term investments
4. Meaningful increases to Local Development programs
This presented budget is based on feedback from a draft version presented at the Executive Committee on May 3, 2023. The budget outlines staff’s best expected estimates for costs and revenues anticipated for the next fiscal year based on load, market prices, and PCIA charges.
Due to these updates, the numbers in this draft may differ from those presented at the Executive Committee meeting.
Staff Report Item 16
Summary of Draft EBCE Budget FY 2023-2024
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
OPERATING ACTIVITY
REVENUE & OTHER SOURCES
GASB 62 Unrecognized Revenue Balance 15,814,000 15,814,000 15,814,000 Operating Revenue
Electricity Sales 953,323,000 792,009,000 873,457,000
Uncollectables (12,054,000) (15,840,000) (17,469,000)
Other Operations Revenue (6,642,000) (6,229,000) 9,658,000 Total Operating Revenue 934,627,000 769,940,000 865,646,000
EXPENSES & OTHER USES
Energy Operating Expenses
Cost of Energy 683,883,000 523,996,000 654,987,000
Energy Operating Services 11,230,000 11,245,000 11,270,000 Total Energy Operating Expenses 695,113,000 535,241,000 666,257,000 Overhead Operating Expenses
S Personnel 21,911,000 15,711,000 13,317,000
M Marketing & Communications 5,303,000 2,824,000 2,073,000 G Legal, Policy, & Regulatory Affairs 3,459,000 2,411,000 1,603,000 B Other Professional Services 2,555,000 2,293,000 1,302,000 A General & Administrative 5,711,000 4,007,000 3,563,000 Depreciation 360,000 180,000 158,000
Total Overhead Operating Expenses 39,299,000 27,426,000 22,016,000
NON-OPERATING ACTIVITY
NON-OPERATING REVENUE
Interest Income 1,680,000 261,000 1,561,000
Grants 0 0 1,100,000
Other Non-Operating Revenue 48,000 15,000 160,000
Total Non-Operating Revenue 1,728,000 276,000 2,821,000
NON-OPERATING EXPENSES
Borrowing Interest 1,650,000 1,440,000 587,000
Local Development Funding 22,500,000 22,550,000 22,550,000 Grant 0 0 0
Capital Expenditures 500,000 7,000,000 717,000
Total Non-Operating Expenses 24,650,000 30,990,000 23,854,000 TOTAL EXPENSES 759,062,000 593,657,000 712,127,000
NET INCREASE(DECREASE) IN POSITION 177,293,000 176,559,000 156,340,000
RESERVE BALANCE
Beginning Reserve Balance* 230,873,000 155,873,000 155,873,000 # Operating Target (50%) 367,206,000 281,334,000 281,334,000 *Expected value after FY 2022-23 contribution
Staff Report Item 16
Fiscal Impact
This establishes the forecast of EBCE’s fiscal position for the next 12 months with a positive net position.
Attachments
A. Presentation of the Draft EBCE Budget FY 2023-2024
Draft Budget Review for
Fiscal Year 2023-2024
MAY 17, 2023
PRESENTED BY:
NICK CHASET, CEO
Attachment Staff Report Item 16A
2 Executive Summary
• In the face of rising energy costs, EBCE is able to continue to serve our local community and customers with cost competitive & cleaner energy while providing local jobs and equitable programs.
• Rates are up and PCIA is down, driven by a historic increase in market energy prices starting in 2021 and forecasted to persist in 2023-2024.
• With EBCE rates indexed to PG&E rates, we are forecasting significant headroom to operate and a strong financial surplus.
• Draft budget includes the following:
o Significant contributions to working capital and reserves o Improvements to the Value Proposition (increased discount and bill credits) o Increased carbon free energy procurement targets
o Meaningful contribution to local development budget
o Expand on staff expertise, build more depth, and scale operations further Attachment Staff Report Item 16A
3 Summary Draft Budget for Fiscal Year 2021-2022
Notes:
YTD* reflects actuals
through Feb 28, 2023
EST are most current
projections as of April
26, 2023
Net Position through FY
Feb 28, 2023: $57.7MM
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
OPERATING ACTIVITY
REVENUE & OTHER SOURCES
GASB 62 Unrecognized Revenue Balance 15,814,000 15,814,000 15,814,000 Total Operating Revenue 934,627,000 769,940,000 865,646,000
EXPENSES & OTHER USES
Energy Operating Expenses
Cost of Energy 683,883,000 523,996,000 654,987,000
Energy Operating Services 11,230,000 11,245,000 11,270,000 Total Energy Operating Expenses 695,113,000 535,241,000 666,257,000 Total Overhead Operating Expenses 39,299,000 27,426,000 22,016,000
NON-OPERATING ACTIVITY
Total Non-Operating Revenue 1,728,000 276,000 2,821,000 Total Non-Operating Expenses 24,650,000 30,990,000 23,854,000 TOTAL EXPENSES 759,062,000 593,657,000 712,127,000
NET INCREASE(DECREASE) IN POSITION 177,293,000 176,559,000 156,340,000
RESERVE BALANCE
Beginning Reserve Balance* 230,873,000 155,873,000 155,873,000 # Operating Target (50%) 367,206,000 281,334,000 281,334,000 *Expected value after FY 2022-23 contribution
Attachment Staff Report Item 16A
4 Draft Budget: Base Case Assumptions
Revenues
• Increase to customer value proposition by
o Bright Choice from 3% to 5% discount to PG&E
o R100 from $0.0075 to $0.0025 above PG&E
o Estimated revenue reduction of $23.2MM
• $50 bill credit applied to all CARE & FERA customers
inQ1/Q2, totaling an estimated $6.6MM in one
time bill savings
• Assumes current rates and PCIA are unchanged
through 2023
• Rates and PCIA for 2024 are non-stressed, or as
forecasted, energy rates
• 1.5% uncollectable rate for 2023, then 1.0% for
2024
• No recognition of GASB 62 revenue ($15,814,000)
• Non-operating revenue assumes 2.5% interest
earned on treasury backed cash balance accounts
Energy Costs
• Costs are derived from a blend of contracted and open positions for all energy, attributes, and RA
o Open prices are non-stressed, mean forecasted
• Carbon free energy (which can include either RE or CO2- free) is above recent board approved targets by 10% above EBCEs
o 2023: CF 66% --> 71% (FY 22/23 5% increase) --> 76%
o 2024: CF 71% --> 81%
o Adds between $3.6 and $21MM to costs
o Each one 1% increases costs between $720,000 and
$4MM
Other Costs
• Adding incremental staff of 15 FTE
• $2.6MM increase in Marketing for re-branding campaign • $2MM increase in G&A to account for increased staff
requirements
• Significant Program funding maintained at $21MM
Attachment Staff Report Item 16A
5 Draft Budget: Carbon Free Procurement
Variation in the Renewable/Carbon Free targets
• April 2022, the Board approved the “Path to Zero by
2030” for the Bright Choice product shown in the table
to the left
o Carbon Free percentages reflect renewable energy
and large hydro energy
• June 2022, the Board approved 5% increases to the
carbon free targets for calendar years 2022 and 2023,
effectively increasing both renewable and carbon free
targets
• This year, staff is proposing an additional increase in carbon free procurement that would result in an
additional 5% increase in 2023 and 10% in 2024 targets
o 2023: Carbon Free 66% --> 71% (22/23) --> 76%
o 2024: Carbon Free 71% --> 81%
Attachment Staff Report Item 16A
6 Draft Budget: Carbon Free Procurement Options
Variation in the Renewable/Carbon Free targets
• Recommendation to increase the total carbon free target of the Bright Choice product by 10% for 2023 and 2024 above the annual targets set in 2022
o Current targets for both years are 71% retail load
• Staff is requesting flexibility to achieve the proposed increases by sourcing from either Renewable or carbon free/large hydro resources in light of a highly constrained and volatile market • Each increase of carbon free procurement of 5% has an expected cost impact of between $3.6-21MM depending on the product type
Calendar Year 2023 2024
Current Carbon Free Targets 71% 71%
Proposed Increases for FY 2024 5% 10%
Proposed Carbon Free Targets 76% 81%
Attachment Staff Report Item 16A
7 Draft Budget: Proposed Surplus Allocations
Net Position Estimated at $177.3MM*
Proposed Budget Surplus Waterfall Allocation:
1) Working Capital Needs: $50MM**
2) Reserve Account Funding: $100MM**
3) 50/50% split of any excess to:***
o Incremental Long-Term Renewable Energy/Clean Energy Storage Investments: ~$13.7MM o One-time On-Bill Credits to Customers: ~$13.7MM
*Assumes 50/50 split between RE and Large Hydro for added carbon free **Allocations to be made after the end of the fiscal period ending June 30, 2024 ***Assuming a budget surplus that is materially consistent with this forecast, staff would plan for an even allocation. Formal action would be brought forth to the board to formally adopt prior to, or in conjunction with, the presentation of the audit in October of 2024. This timing would allow for staff to have exact knowledge of available surplus.
Attachment Staff Report Item 16A
8 Draft Budget: On-Bill Credit Average Allocations
• Current annual average savings and premiums paid at the 3% discount for Bright Choice and the 0.75c premium on Renewable 100 products for residential customers are shown above • Savings for each 1% discount with Bright Choice or decrease of 0.25c in premium for Renewable 100 is also shown o Total EBCE wide customer savings per 1% discount with Bright Choice is about $6.6MM o Total EBCE wide customer savings per 0.25c decrease in Renewable 100 premium is about $5.0MM • With both the discount and the On-Bill credit at the end of the year, on average residential accounts would o Save $42.74 for Bright Choice
o Pay $3.01 premium for Renewable 100
• Total Customer Savings = Adjustment to Value Proposition + On-Bill Credits = $23.2MM + $13.7MM = $36.9MM Base methodology for the On-Bill Credit: Dividend = Individual annual kWh x (Total Surplus)/(Total annual kWh) Average for Each Account
Bright Choice Renewable 100 Bright Choice Renewable 100 Current Avg Savings (Premium) to PG&E $20.48 ($34.00) $40.99 ($87.64) Each 1% BC or 0.25c R100 change 6.51 10.88 13.01 27.96
5% BC and 0.25c R100 33.51 (12.24) 67.00 (31.73)
On Bill Credit 9.23 9.23 20.08 20.08
Total Annual Savings (Premium) 42.74 (3.01) 87.08 (11.65) Residential Total EBCE Wide
Attachment Staff Report Item 16A
9 Draft Budget: Operating Revenues
• Increase to value proposition
o Bright Choice from 3% to 5% discount to PG&E
o Renewable 100 from $0.0075 to $0.0025 above PG&E
o $50 bill credit to all CARE & FERA customers in July-Sept 2022, shown as Other Operations Revenue reduction
• Assumes current rates and PCIA are unchanged through 2023 • Rates and PCIA for 2024 are non-stressed, or as expected, energy rates • 1.5% uncollectable rate for rest of 2023 and 1.0% for 2024 • No recognition of GASB 62 revenue ($15,814,000)
• Current Year Other Operations Revenue is damages received from counterparties FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
REVENUE & OTHER SOURCES
GASB 62 Unrecognized Revenue Balance 15,814,000 15,814,000 15,814,000 Operating Revenue
Electricity Sales 953,323,000 792,009,000 873,457,000
Uncollectables (12,054,000) (15,840,000) (17,469,000)
Other Operations Revenue (6,642,000) (6,229,000) 9,658,000 Total Operating Revenue 934,627,000 769,940,000 865,646,000 Attachment Staff Report Item 16A
10 Draft Budget: Overview of Expenses
• Expenses are divided into three overall cost
center categories:
• Energy Operations which includes all energy,
energy attributes, and ancillary related costs
and the services required to managing
energy and attributes, such as scheduling,
data management, and customer billing
o This category comprises more than
90% of EBCE’s total expenses
• Overhead Operations which includes all
personnel and staffing needs as well as work
function cost centers required to manage
the organization at large
• Non-Operating Expenses which are all
capital and capital transfer related costs
FY 2023-24
DRAFT BUDGET % Cost
EXPENSES & OTHER USES
Energy Operating Expenses
Cost of Energy 683,883,000 90.1%
Energy Operating Services 11,230,000 1.5%
Total Energy Operating Expenses 695,113,000 91.6%
Overhead Operating Expenses
Personnel 21,911,000 2.9%
Marketing & Communications 5,303,000 0.7%
Legal, Policy, & Regulatory Affairs 3,459,000 0.5%
Other Professional Services 2,555,000 0.3%
General & Administrative 5,711,000 0.8%
Depreciation 360,000 0.0%
Total Overhead Operating Expenses 39,299,000 5.2%
Total Operating Expenses 734,412,000
NON-OPERATING EXPENSES
Borrowing Interest 1,650,000 0.2%
Local Development Funding 22,500,000 3.0%
Grant 0
Capital Expenditures 500,000 0.1%
Total Non-Operating Expenses 24,650,000 3.2%
TOTAL EXPENSES 759,062,000 100.0%
Attachment Staff Report Item 16A
11 Draft Budget: Energy Expenses
Energy Costs
• Costs are derived from a blend of contracted and
open positions for all energy, attributes, and RA
o Open prices are non-stressed, or as forecasted
o FY 23/24 overall price projections are about on
parr with FY 22/23 actuals on average
o Most materially significant increase for FY
23/24 is with RECs and capacity charges
• Carbon free energy is above recent board approved
targets by 5% for calendar 2023 and 10% for 2024
Bright Choice targets
o 2023: CF 66% --> 71% (22/23) --> 76%
o 2024: CF 71% --> 81%
o Adds up to $21MM costs
• Note: We are still in a period of historically high
energy pricing and significant uncertainty/volatility
o Forecasted market energy costs in 2023 and
2024 are approximately double the historical
10-year average and has persisted since 2021
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
Energy Operating Expenses
Cost of Energy 683,883,000 523,996,000 654,987,000
Data Management/Customer Service 7,777,000 7,834,000 7,859,000 PG&E Service Fees (Billing/Metering) 2,722,000 2,715,000 2,711,000 CAISO Scheduling Coordinator 731,000 696,000 700,000
Total Energy Operating Expenses 695,113,000 535,241,000 666,257,000 Attachment Staff Report Item 16A
12 Draft Budget: Overhead Expenses
Material Overhead Items for FY 23-24:
• Personnel costs will be discussed more in-depth on the next slide
• $2.5MM increase in Marketing costs is specifically driven by re-branding campaign
o Also includes approx. $1MM of Programs related
marketing costs
• $1.0MM increase in Legal, Policy, & Regulatory affairs is due to a couple of factors
o Membership expansion (Stockton)
o Additional volume of consulting/vendor agreements
and power contracts
• Larger staffing demand, from Personnel costs, increases in Professional Services with HR/recruiting and additional project support
• Increase to G&A is also directly related to increase in staffing with software subscriptions, membership dues, equipment, office space, insurance, and the like
• Depreciation increases due to new building
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
Overhead Operating Expenses
Personnel 21,911,000 15,711,000 13,317,000
Marketing & Communications 5,303,000 2,824,000 2,073,000 Legal, Policy, & Regulatory Affairs 3,459,000 2,411,000 1,603,000 Other Professional Services 2,555,000 2,293,000 1,302,000 General & Administrative 5,711,000 4,007,000 3,563,000
Depreciation 360,000 180,000 158,000
Total Overhead Operating Expenses 39,299,000 27,426,000 22,016,000 Attachment Staff Report Item 16A
13 Draft Budget: Overhead Expenses—Personnel
• FY 2021-22 Budget was initially approved at 43 FTE and expanded mid-year to 49 o 2.5% COLA and up to 5% merit-based/promotional compensation allotted o Currently at 45 FTE and interviewing for an additional 4 roles • FY 2022-23 Budget was increased to 68 FTE to accommodate additional work requirements in all areas.
Additional headcount will expand on internal expertise/skills, build more depth, and scale operations:
o 3.5% COLA and up to 10% merit-based/promotional compensation pool o 5 Marketing, 4 Local Programs, 3 Operations, 3 Technology, 2 Power Resources, 2 Legal • FY 2023-24 Budget seeks and additional 15 FTE to accommodate additional work requirements in all areas. Additional headcount will expand on internal expertise/skills, build more depth, and scale operations:
o 3.5% COLA and up to 10% merit-based/promotional compensation pool o 3 Marketing, 2 Local Programs, 2 Operations, 2 Technology, 3 Power Resources, 3 Legal FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
PERSONNEL
Salaries & Wages 16,587,000 11,598,000 9,747,000
Retirement 2,058,000 1,544,000 1,340,000
Health Care/Benefits 2,893,000 2,292,000 864,000
Payroll Expenses 373,000 277,000 169,000
Total 21,911,000 15,711,000 12,120,000
Attachment Staff Report Item 16A
14 Draft Budget: Organization Chart
Attachment Staff Report Item 16A
15 Draft Budget: Open Position Count
Team
# of New
Roles
Data & Tech 2
MAS 3
Operations, Admin &
Finance 2 +1
Power Resources 3
Programs 3 +1
Public Policy 2
Total New Roles: 15 + 2 (17)
● # of New Roles to budget for next FY: 15
○ Add 2 carry-over roles from FY 22-23, so 17 Total
Attachment Staff Report Item 16A
16 Draft Budget: New Positions
Team Position Title (Draft) Position Level Desired Start Comp Band $ Low (Base) $ High (Base) $ Mid (Base) Data & Tech IT HelpDesk Associate Associate Q2 (Oct - Dec 2023) 4 $117,597 $133,400 $125,498 Data & Tech Junior Data Engineer Analyst Q3 (Jan - Mar 2024) 3 $89,597 $117,596 $103,596 MAS Graphic Designer & Content Developer Associate Q1 (Jul - Sep 2023) 4 $117,597 $133,400 $125,498 MAS Copywriter Associate Q1 (Jul - Sep 2023) 4 $117,597 $133,400 $125,498 MAS Manager, Customer Experience Manager/Principal Q3 (Jan - Mar 2024) 6 $151,319 $167,170 $159,245 Operations, Admin &
Finance Sr. Mgr / Mgr, Structured Finance (TBD) Sr Manager/Sr Principal Q2 (Oct - Dec 2023) 7 $167,171 $190,393 $178,782 Operations, Admin &
Finance Finance Associate Associate Q2 (Oct - Dec 2023) 4 $117,597 $133,400 $125,498 Operations, Admin &
Finance
Coordinator, Ops & Admin
(Carry-over from last yr) Coordinator Q1 (Jul - Sep 2023) 2 $69,174 $89,596 $79,385 Power Resources Contract Manager Manager/Principal Q1 (Jul - Sep 2023) 7 $167,171 $190,393 $178,782 Power Resources "CAISO Day Ahead Manager" Level Manager/Principal Q1 (Jul - Sep 2023) 7 $167,171 $190,393 $178,782 Power Resources Settlements Manager Manager/Principal Q3 (Jan - Mar 2024) 7 $167,171 $190,393 $178,782 Programs Programs Director Role Director Q1 (Jul - Sep 2023) 8 $190,394 $219,052 $204,723 Programs Program Lead / Associate Associate Q3 (Jan - Mar 2024) 4 $117,597 $133,400 $125,498 Programs Solar & Storage Programs / Associate Associate Q3 (Jan - Mar 2024) 4 $117,597 $133,400 $125,498 Programs Project Manager (Carry-over from last yr) Sr Associate Q2 (Oct - Dec 2023) 5 $133,401 $151,318 $142,360 Public Policy Contract Management Manager/Principal Q1 (Jul - Sep 2023) 6 $151,319 $167,170 $159,245 Public Policy Regulatory Analyst Analyst Q2 (Oct - Dec 2023) 3 $89,597 $117,596 $103,596 Attachment Staff Report Item 16A
17 Draft Budget: Overhead Expenses—Marketing &
Account Services
Next Year Material Items:
• Majority of increase is driven by $2.6MM allocation for our first major foray into customer facing program campaigns where we are trying to acquire customers to participate and/or use our equipment (e.g. e-Bike, DCFC stations, induction cooking and EV adoption). Additionally, EBCE’s rebranding campaign will carry incremental costs beyond past year marketing spends that will pull from this allocation Included in cost items is approximately $1.0MM dedicated to Programs related marketing costs
• Required Mailings: Joint Rate Mailer w/ PG&E, Power Content Label, New Account Noticing
• Advertising: Active community presence activities, sponsorships, local events, increase due to Stockton and rebranding campaigns • Promotional Items: Give away items
• Communications: Public relations, media, newsletters, consultants, minor software needs--Website development from rebranding is biggest cost item at $1MM
Current Year Material Items:
Marketing has lower cost with advertising and
communications consultant due to shifting in
Programs related needs with Resilient Home and
BlocPower campaigns
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
Required Mailings 282,000 520,000 529,000
Advertising 2,044,000 986,000 629,000
Promotional Items 123,000 50,000 41,000
Communications 2,854,000 1,268,000 874,000
Total 5,303,000 2,824,000 2,073,000
Attachment Staff Report Item 16A
18 Draft Budget: Overhead Expenses—Legal, Policy, &
Regulatory Affairs
Current year spending was less than budgeted this year due to a delay in expected litigation expenses and unused contingency set aside
Next Year:
• Legal Consultants: Outside general counsel for procurement, analysis, and general operations.
Increase is driven by:
o Multiple pending and on-going litigations expenses
o 2023 Large Clean Energy RFO
o Implementation of numerous local development initiatives o Additional volume of consulting/vendor agreements and power contracts • Legislative Consultants: Retainer for legislative advocacy. For this coming fiscal year, EBCE has added additional resources focused on federal affairs to support both funding and policy initiatives. • Other Consultants: Policy related advising and economic consulting FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
LEGAL AND POLICY
Legal Consultants 3,117,000 2,135,000 1,384,000
Legislative Consultants 237,000 177,000 180,000
Other Consultants 105,000 99,000 39,000
Total 3,459,000 2,411,000 1,603,000
Attachment Staff Report Item 16A
19 Draft Budget: Overhead Expenses—Other Professional
Services
Next Year Material Items:
• Operations: Accounting and auditing for financial
compliance, general finance, and addition of new
project with treasury management consulting
• Human Resources Consulting: Support for additional
HR demand for increased staffing recruitment,
professional development, and training
• Tech Consulting: Technical network assistance
• Power Resources: Technical consulting for Power
Resources, operational compliance support and other
various tasks
Current Year Material Items:
• HR consulting was approximated as first year need
for consulting. Hiring of HR lead has led to reduced
costs with active management
• Technology Consulting is lower than expected with
reevaluation of timeline for cost-of-service
implementation
• Power Resources consulting lower than expected
with IRP below budget
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
Operations 931,000 363,000 435,000
Human Resources Consulting 634,000 1,000,000 338,000
Tech Consulting 360,000 325,000 209,000
Power Resources 630,000 605,000 320,000
Total 2,555,000 2,293,000 1,302,000
Attachment Staff Report Item 16A
20 Draft Budget: Overhead Expenses—General & Administrative Next Year Material Items:
• Operational Expenses: Increased staff costs related to insurance, service fees, supplies, membership dues,
operational services, building maintenance, and other
relevant G&A
• Software, Subscriptions, SaaS: Increase covers
additional software needs for Finance, Power
Resource, and Technology operations, as well as
essential subscriptions for ongoing operations with
expanded staff
• Rent & Utilities: Increases with office space needs
due to expanded staff
• Conferences & Professional Development: Trainings,
conferences, and related expenses
• Board & Director Fees: Monthly stipends and
transportation reimbursements for board members
Current Year Material Items:
• Operational Expenses were higher than expected primarily due to inflationary increases in insurance costs and industry memberships dues
• Software costs were lower with delay in implementing
customer portal development and battery optimization as well as data storage was under budget
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
GENERAL OPERATIONS
Operational Expenses 1,523,000 1,039,000 1,133,000
Software, Subscriptions, SaaS 2,676,000 2,345,000 1,576,000 Small Equipment 510,000 210,000 113,000
Rent & Utilties 764,000 345,000 565,000
Conferences & Prof. Development 160,000 130,000 124,000 Board & Director Fees 78,000 50,000 52,000
Total 5,711,000 4,119,000 3,563,000
Attachment Staff Report Item 16A
21 Draft Budget: Non-Operating Activity
• Non-Operational Revenue: Interest earned on Treasury backed cash account balances (estimated at 2.5%) and BlocPower loan (5.5% on $500k)
• Grants: Generally only recognized against qualifying expenses as incurred, thus not projected
• Other Non-Operational Revenue: Rent from AT&T tower on new building
• Borrowing Interest Expenses: Expected costs associated with expanded credit facility
• Local Development Funding: Capital transfer to Local
Development Fund
• Capital Expenditures: Moving and new equipment/furniture related to new office space
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
NON-OPERATING REVENUE
Interest Income 1,680,000 261,000 1,561,000
Grants 0 0 1,100,000
Other Non-Operating Revenue 48,000 15,000 160,000
Total Non-Operating Revenue 1,728,000 276,000 2,821,000
NON-OPERATING EXPENSES
Borrowing Interest 1,650,000 1,440,000 587,000
Local Development Funding 22,500,000 22,550,000 22,550,000 Grant 0 0 0
Capital Expenditures 500,000 7,000,000 717,000
Total Non-Operating Expenses 24,650,000 30,990,000 23,854,000 NET NON-OPERATING ACTIVITY (22,922,000) (30,714,000) (21,033,000) Attachment Staff Report Item 16A
22 Draft Budget: Local Development Fund
• 2023-2024 Local Development Fund
allocation is set at $22.5MM
• Allocating budget for capital
intensive infrastructure
development projects
• Allocating EBCE capital to reduce
cost of ownership for building and
vehicle electrification
• Unspent Local Development
budget carries forward year to year Local Development Areas of Emphasis Budget Allocation Transportation Electrification $11.75M
Building Electrification $8.5M
Energy Efficiency No Direct EBCE Cost
Community Resilience/VPPs $2M
Community Grants $0 ($4.2M allocated
in FY'23)
Sponsorships/Memberships $250k
LOCAL DEVELOPMENT FUND
FY 2023-24 FY 2022-23 FY 2021-22 FY 2020-21 FY 2019-20
BEGINNING BALANCE 36,194,914 16,626,143 10,398,245 5,201,410 0
REVENUE & OTHER SOURCES
Transfer from Operating Fund 21,000,000 22,550,000 8,475,000 6,340,000 6,340,000 Grants/Interest - 1,025,980 335,460 395,000 219,673
Total Revenues & Other Sources 21,000,000 23,575,980 8,810,460 6,735,000 6,559,673
EXPENSES & OTHER USES
Actual Program Expenses 2,671,209 2,582,563 1,538,165 1,358,263 Expected Remaing Expenses 57,194,914 1,336,000 - - -
Total Expenses & Other Uses 57,194,914 4,007,209 2,582,563 1,538,165 1,358,263 ENDING BALANCE - 36,194,914 16,626,143 10,398,245 5,201,410 Attachment Staff Report Item 16A
Transportation Electrification
23 • Transportation is the largest source of emissions of GHG and particulate matter from Light, Medium and Heavy-duty vehicles
• EBCE is developing publicly available charging infrastructure tailored to renters and low-income communities to ensure these residents can transition to EVs (currently developing the first 3 charging hubs)
• Goods movement is particularly important with Port impacts to communities and access through the territory and into the Central Valley
• EBCE will continue assisting Cities to electrify fleets; providing fleet electrification technical assistance and offering to develop and operate charging infrastructure for Cities with "Charging as a Service" product
• With more vehicle models becoming available EBCE will develop programs to facilitate the buying process and make EVs accessible across all customer income levels • Partner with local agencies and local business to increase access to eMobility solutions • Provide capital to reduce cost of ownership through credit enhancements across multiple vehicle classes Attachment Staff Report Item 16A
Transportation Electrification
24 • Publicly Available Fast Charging Hubs ($3.75M)
• Funds to support EBCEs efforts to build a network of public fast chargers across the communities we serve with an emphasis on siting these chargers close to high densities of multi-family housing where home charging is often not accessible. EBCE BOD approved $30M NTE over 10 years at 11/16/22 BOD meeting • Medium/Heavy duty project investment capital ($3M)
• Funds to support Medium/Heavy duty vehicle electrification projects in EBCE territory • EV adoption acceleration program with emphasis on access for low and moderate income consumers ($3M)
• Funds to support one or more projects to accelerate EV Adoption and enroll EV drivers in manage charging programs to manage new EV electricity load with an emphasis on low and moderate income consumers • EBCE Ride Electric Program ($2M)
• Funding for year 2 of EBCE e-bike Lending and Incentive Program Attachment Staff Report Item 16A
Building Electrification
25 • Electrification installation network ($2M)
• Develop an installation network of electrical contractors to deliver reasonably priced electrification upgrades to customers
• Partner with 10-20 contractors across the territory so that customers can obtain multiple competitively priced proposals for electrical upgrades in a timely manner
• EBCE incentive enables contractors to offer standard pricing for electrical service panel upgrades that facilitate full electrification
Electrification Workforce Training Program ($1.5M)
• Increase qualified workforce for electrification
• Provide apprenticeship stipends to enable on the job training for graduates of workforce training organizations • Partner with electricians in the EBCE network to hire apprentices Attachment Staff Report Item 16A
Health-e Communities
26 Budget Request: $5M for first year of $15M 3-year Program Program Summary:
- Replace 1000 – 2000+ gas stoves with induction ranges in households with children suffering from pulmonary disease (eg. asthma) with focus on low-income and disadvantaged communities - EBCE to deliver and install induction cooktops, while partnering with health care research partner that can provide medical referrals and complete longitudinal health study Program Development Progress
EBCE has identified a Health Care Provider with research capabilities that we are working to secure - EBCE has secured a verbal agreement for $250k in funding to support health care partnership - EBCE has identified several non-profit partners who can manage the health-care partnership - EBCE is currently hiring a building electrification channel manager to develop EBCE’s installation partner network
Attachment Staff Report Item 16A
Resilience and VPPs
Budget Request, $2M to expand Community Resilience
and Virtual Power Plant management capabilities
• Phase I: Berkeley, Hayward, San Leandro, Fremont
– Contracting for 2.7 MW solar PV + 4.8 MWh storage
across 29 sites ranging from fire stations to senior
centers, resulting in $25M in projects
– Largest procurement of its kind to date
– Received $2M in federal funds
• Phase 2: Emeryville, Livermore, Oakland, Pleasanton
– Developing additional ~50 resilience projects with
7.5 MW solar PV & 5.5 MWh storage, resulting in
$40M+ in projects
• Phase 3: Albany, Piedmont...open for additional Cities • Pursuing $35M in Federal funding to expand Resilience to school districts and other public service agencies
– Federal funding will enable facility upgrades
and electrification
• All projects will be aggregated into Virtual Power Plant to reduce EBCE procurement needs
Fremont Fire Station Microgrid
Attachment Staff Report Item 16A
Community Grant (update)
28 Background:
- EBCE BOD approved $4.2M in FY'23-24 budget for 3-year Community Grant Program ($1.4M/year)
- EBCE staff have developed a list of grant priorities to support EBCE Programs - EBCE staff plans to issue first grant opportunity to increase education and awareness of induction cooking to start Summer 2023
- Staff and CAC Chair are collaborating to host a public workshop on June 7 to gather community feedback to develop additional grant funding cycles - Proposed Grant Solicitation timing:
- Round 1 - August 2023
- Round 2 - January 2024
- Round 3 - January 2025
Attachment Staff Report Item 16A
Thank You!
@PoweredbyEBCE
[email protected]
29 Questions? Give us a call:
1-833-699-EBCE (3223)
Español
ebce.org/es
中文
ebce.org/cn
Attachment Staff Report Item 16A