Regular Board Meeting
April 25, 2024
Item 4: CEO Report
2 Item 4: CEO Report
•CEA Outreach Efforts
•Presence at Community Events
•Presentations to Community Groups
•Enrollment Statistics
3 Completed Community Events
Event Date
MainStreet Oceanside, Sunset Market 3/28/24 5pm – 9pm
Oceanside Country Club Senior Center 4/1/24 10:30 – 12:30pm Vista Chamber of Commerce, Government Affairs Meeting 4/4/24 12pm – 1:30pm MainStreet Oceanside, Farmers Market 4/4/24 9am – 1pm
San Marcos Chamber of Commerce, Spring Fling 4/7/24 9am – 5pm City of Vista, Launch Reception & Presentation 4/9/24 3pm – 7pm Vista Farmers Market 4/13/24 8am – 12pm
4 Completed Community Events Cont.
Event Date
Vista Farmers Market 4/13/24 8am – 12pm
Progressive Labor Alliance 4/13/24 2:30pm – 4pm
Alta Vista Botanical Gardens, Earth Day 4/20/24 10am – 3pm Vista Deputy Mayor Melendez Town Hall 4/22/24 6pm – 7pm Sony Electronics, Earth Day Fair 4/23/24 11:30am – 1:30pm Dr. Bronner’s Staff Earth Day Extravaganza 4/26/24 9:30am – 1pm Carlsbad Chamber of Commerce, Green Business Expo 4/27/24 9am – 1pm 5 Upcoming Community Events
Event Date
City of Vista, Staff Lunch & Learn 5/1/24 12pm – 1pm
Vista Business Breakfast 5/2/24 8am – 10am
MainStreet Oceanside, Farmers Market 5/2/24 9am – 1pm
San Diego County Farm Bureau, Graze at the Fields 5/2/24 6pm – 8:30pm Vista Councilmember O’Donnell Town Hall 5/10/24 6pm – 7:30pm Vista Farmers Market 5/11/24 8am – 12pm
Hunter Industries Employee Resource Fair 5/14/24 5:30am – 2pm 6 Upcoming Community Events Cont.
Event Date
Carlsbad Green Business Network Conference 5/15/24 11am – 11:30pm San Diego Equality Awards 5/17/24 6pm – 8pm
Ocean Hills Country Club, Senior Expo 5/18/24 10am -2pm Escondido Downtown Business Association, Street Festival 5/19/24 10am – 6pm Vista Strawberry Festival 5/26/24 8am-6pm
7 Oceanside & Vista Enrollment Stats
8 CEA Enrollment Stats
9 Questions/Discussion
10 Item 5: Regulatory Update and
Regulatory/Legislative Strategy
11 Questions/Discussion
03/28/24 12
Item 6: Financial Review Year to
Date & Forecasting through June
2024
13 Topics for Financial Review (this meeting)
• Actual financial performance through February 2024
• Forecast through June 2024
• Revenue overview
• Expense overview
• JPM Morgan credit line compliance
14 Upcoming Board Meeting (May 30, 2024)
• Draft FY2024-2025 Budget and 5-year Outlook
Financial Performance through February 29, 2024
15 YTD Actuals through
2/29/2024
Total Operating Revenues 133,926,839
Total Cost of Energy 121,690,692
Other Operating Expenses (excluding Energy) 3,446,210
Total Operating Expenses 125,136,902
Operating Income (Loss) 8,789,937
Total Nonoperating Income/(Expense) (697,715)
CHANGE IN NET POSITION 8,092,222
Net Position at the beginning of period (6,452,287)
Net Position at the end of period 1,639,935
Total Cash 6,415,457
-
Total Line of Credit Used 4,950,000
Financial Performance Projected through June 30, 2024
16 YTD Actuals through Forecast through
2/29/2024 6/30/2024
Total Operating Revenues 133,926,839 200,209,558
Total Cost of Energy 121,690,692 191,744,333
Other Operating Expenses (excluding Energy) 3,446,210 5,980,347 Total Operating Expenses 125,136,902 197,724,680
Operating Income (Loss) 8,789,937 2,484,878
Total Nonoperating Income/(Expense) (697,715) (1,151,063) CHANGE IN NET POSITION 8,092,222 1,333,816
Net Position at the beginning of period (6,452,287) 10,689,949 Net Position at the end of period 1,639,935 12,023,765
Total Cash 6,415,457 3,444,766
Letter of Credit - -
Total Line of Credit Used 4,950,000 24,950,000
FY2023-2024 Revenue Shortfall
• Revenues (billing to Customers) are expected to be
approximately 12% lower than the budgeted level:
• Equal to $28.2 million shortfall
• Actual loads are approximately 3% lower than budgeted mostly due to “softer” use across the state.
• Cooler-than-average Summer temps
• Historical datasets provided by SDG&E for the expansion communities (Encinitas/San Marcos and Oceanside/Vista) appear to have been overstated which led us to project higher usage than we have seen
• Current full-year FY2024 load forecast is approximately 12% lower than the original budget – in line with revenue shortfall
17 Energy Costs – deeper dive
• With revenue lower than budget mostly due to lower load, we would have expected energy costs to also be lower.
• However,
• Resource Adequacy prices are significantly higher
• Renewable/GHG-Free Energy prices are significantly
higher
18 19
• CAISO forward energy prices
for the next 12-month period
(Bold RED line) have recently
declined and are now 18%
lower compared to one year
ago
• Reductions are primarily the
result of sharp declines in
natural gas prices
• For conservatism, CEA has
consistently been hedged well
in advance which locked in
prices at higher rates
CAISO Energy Prices
20 • 2025 RA markets remain
extremely tight
• Sellers are reluctant to transact
pending new slice of day
framework implementation for
2025
• 2025 RA prices are projecting
higher than the heights of 2024
• CEA has been mitigating some of
the cost increases by paying
penalties in high summer months
• Possible relief in 2026-27 as
delayed storage projects reach
commercial operation $0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Resource Adequacy Prices ($/kW-mo)
Jan-23 Jul-23 Current
Resource Adequacy Prices
21 $-
$10
$20
$30
$40
$50
$60
$70
$80
Jan 2023 Jul 2023 Jan 2024
PCC 1 Renewable Energy Prices ($/MWh)
Product Premium
($/MWh)
PCC 1 Renewable $70 to $85
PCC 2 Renewable $60 to $75
PCC 3 Renewable $5 to $10
Large Hydro $25 to $35
Nuclear TBD
$-
$5
$10
$15
$20
$25
$30
$35
Jan 2023 Jul 2023 Jan 2024
Large Hydro Energy Prices ($/MWh)
Current Product Pricing
~$20
~$5
Clean Energy Prices
FY2023-2024 Expenses Below Budget – But not enough to make up for revenue shortfall • Energy expenses expected to be $8.2 million less than budget • Other expenses expected to be $4.2 million less than budget • Interest expense/income expected to $0.5 more than budget • Net result is that Total Expenses are expected to be
approximately $12.0 million less than budget
• Not enough to make up for the $28.2 million revenue shortfall 22 Financial Performance Projected through June 30, 2024 23 Forecast through Budget Variance
6/30/2024 FY2023-2024 Fav/(Unf)
Total Operating Revenues 200,209,558 228,415,000 (28,205,442) Total Cost of Energy 191,744,333 200,000,000 8,255,667
Other Operating Expenses (excluding Energy) 5,980,347 10,161,205 4,180,858 Total Operating Expenses 197,724,680 210,161,205 12,436,525 Operating Income (Loss) 2,484,878
Total Nonoperating Income/(Expense) (1,151,063) (700,000) (451,063) CHANGE IN NET POSITION 1,333,816 17,553,795 (16,219,979) Net Position at the beginning of period (6,452,287) 2,369,978 (8,822,265) Net Position at the end of period (5,118,471) 19,923,773 (25,042,244) FY2024-2025 Budget Timeline
• Board Meeting May 30, 2024 – Draft Budget Review
• Board Meeting June 27, 2024 – Final Budget Approval
24 Questions/Discussion
25