Regular Board Meeting
March 30, 2023
Item 6: Consider Amending CEA
Rate Schedule Adding EV-HP
Rate Effective April 1, 2023
03/30/23 2
Item 6: Consider Adding Rate EV
• Recommendation:
1) Conduct Public Hearing: Open Public Hearing, Receive Public Testimony, Close Public Hearing
2) Approve Amendment to CEA’s Rate Schedule Adding EV-HP (Electric Vehicle High Power) Rate Effective April 1, 2023 03/30/23 3
Item 6: Consider Adding Rate EV-HP
Background:
• CEA does not currently offer rate EV-HP
• With the launch into Escondido and San Marcos in April, there are customers being served on this rate
• Adding the rate will allow CEA to serve customers on this same rate
• Pursuant to CEA policy, the notice of the Public Hearing was published in the Coast News March 17 and March 24
03/30/23 4
Item 6: Consider Adding Rate EV-HP
About Rate EV-HP:
• Available to Non-Residential separately metered service • Charging of EVs whose monthly maximum demand equals,
exceeds or is expected to equal or exceed 20 kilowatts
• Customers enrolled with SDG&E on the EV-HP rate would be automatically enrolled on CEA’s EV-HP rate
03/30/23 5
Questions/Discussion
03/30/23 6
Item 7: Consider Adoption of
Resolution No. 2023-003 Approving
Credit Agreement Amendment and
Increase in Line of Credit with
JPMorgan from $15MM to $25MM
03/30/23 7
Item 7: Consider JPMorgan Credit and
Fee Agreement Amendments
• Recommendation:
1) Adopt Resolution No. 2023-003 approving credit agreement amendment with JPMorgan, in a form substantially as attached, increasing line of credit from $15MM to $25MM and authorize the Chief Executive Officer to execute all documents, subject to Special and General Counsel approval; and
2) Approve related Fee Agreement with JPMorgan and authorize Chief Executive Officer to execute all documents, subject to Special and General Counsel approval.
03/30/23 8
Item 7: Consider JPMorgan Credit and
Fee Agreement Amendments
• Background
• January 21, 2021 – Resolution 2021-004 adopted approving credit agreement with JPMorgan in the amount of $6MM to fund start-up costs and initial cash flow;
• January 13, 2022 – Resolution No. 2022-001 adopted approving increase in credit agreement from $6MM to $15MM for cash flow and energy supply procurement collateral requirements
• Cash flow forecasts reflect need to increase from $15MM to $25MM to meet near term temporary cash flow needs and
procurements related to Oceanside and Vista expansion
03/30/23 9
Item 7: Consider JPMorgan Credit and
Fee Agreement Amendments
• New Credit Terms
• Effective date March 31, 2023
• Letter of Credit fees set at 2.0%
• Used for energy supply collateral requirements
• Undrawn fee rate decrease from 2.15% to 1.25%
• Fee charged for Line of Credit funds available but unused by CEA • Unchanged Credit Terms
• $5MM Principal payment due December 31, 2023
• Funds become available after 30 days
• Full repayment due January 31, 2026
03/30/23 10
Item 7: Consider JPMorgan Credit and
Fee Agreement Amendments
• Cost Estimates through Life of Line of Credit:
• Interest Costs are within pro forma limits and will be included in FY 2023/24 Proposed Budget.
03/30/23 11
Line of Credit Utilized $ Line of Credit
Utilized %
Interest Costs Total Costs
$15,000,000 60% $3,861,180 $3,871,180
$18,750,000 75% $4,626,708 $4,636,708
$25,000,000 100% $5,902,587 $5,912,587
Questions/Discussion
03/30/23 12
Item 8: Input into FY 2023/24
Budget Priorities and Board
Subcommittee for CEO
Recruitment
03/30/23 13
Item 8: Budget Priorities and Board
Subcommittee for CEO Recruitment
• Recommendation:
1) Provide input into priorities to be considered when developing draft FY 2023/24 budget to be presented to Board at Public Hearing May 25, 2023; and
2) Appoint Board Subcommittee for CEO Recruitment.
03/30/23 14
Item 8: Budget Priorities and Board
Subcommittee for CEO Recruitment
• Background:
• Section 4.6.2 of CEA Joint Powers Agreement specifies the Board is to adopt an annual budget prior to the commencement of each fiscal year.
• CEA’s budget to be drafted by staff should reflect prioritization and policies as established by the Board.
03/30/23 15
Item 8: Budget Priorities and Board
Subcommittee for CEO Recruitment
• Priorities of FY 2022/23 Budget:
• Financial Stability
• Meeting Regulatory Compliance
• Successful Expansion to Escondido and San Marcos
03/30/23 16
Item 8: Budget Priorities and Board
Subcommittee for CEO Recruitment
• Recommended Priorities for FY 2023/24 Budget:
• Financial Stability
• Expenditures within estimated revenues
• Fund Minimum 5% contribution to Reserves
• Meeting Regulatory Compliance
• Operational and Procurement Requirements
• Meet Credit Covenants
• Rates Sufficient to Cover Costs
• Meet Days Liquidity on Hand
• Fund Principal Payment due 12/31/23
03/30/23 17
Item 8: Budget Priorities and Board
Subcommittee for CEO Recruitment
• Recommended Priorities for FY 2023/24 Budget:
• Successful Expansion to Oceanside & Vista
• Outreach efforts for effective education and communication to minimize Opt-outs
• Maximize support of Local businesses and local jobs in procurements
• Support Community Advisory Committee
03/30/23 18
Item 8: Budget Priorities and Board
Subcommittee for CEO Recruitment
• CEO Recruitment
• Recommend recruitment of locally based CEO
• Appoint Board Subcommittee to lead effort
• Selection of recruiting firm
• Initial review of candidates
• Recommendation of top candidates to full Board for consideration • Funds are available in FY 2022/23 for hiring of recruitment firm.
03/30/23 19
Questions/Discussion
03/30/23 20
Item 9: CEO Administrative
Report; General Counsel Brown
Act Update; Regulatory Counsel
Report
03/30/23 21
Item 9: CEO Update
03/30/23 22
4/2/23 9 - 5 San Marcos April Spring Fling Along Via Vera Cruz 4/4/23 11:30am Kiwanis Presentation
One Safe Place,
1040 Los Vallecitos
4/13/23 7pm
Escondido Historic District
Presentation Via Zoom
4/25/23 6-7:30pm League of Women Voters Webinar Via Zoom 4/26/23 11-2:30 Sony Electronics Earth Day Fair
16525 Via Esprillo,
San Diego
5/21/23 8 - 5 Escondido Street Festival
Escondido San Marcos Both Cities
Total Eligible Customers 57,236 37,931 95,167
Total Opt-Outs 521 399 920
Opt-Out Percentage 0.91% 1.05% 0.97%
03/30/23 23
Item 9: CEO Update
Opt-Out Stats – Escondido and San Marcos through March 15, 2023 Top Reasons Cited for Opt-Out:
Dislike Being Automatically Enrolled
Rate or Cost Concerns
Questions/Discussion
03/30/23 24