Regular Board Meeting
May 30, 2024
Item 5: CEO Report
2 Item 5: CEO Report
•CEA Outreach Efforts
•Presence at Community Events
•Enrollment Statistics
•Solar Plus Update
• Long-Term Geothermal PPA Update
3 Completed Community Events
Event Date
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 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 4 Completed Community Events
Event Date
Vista Farmers Market 5/11/24 8am – 12pm
Hunter Industries Employee Resource Fair 5/14/24 5:30am – 2pm Carlsbad Green Business Network Conference 5/15/24 11am – 11:30pm California Efficiency & Demand Management Council 6/16/24 11am – 1:30pm 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
5 Oceanside & Vista Enrollment Stats
6 City # of Eligible
Customers
# of Opt-Downs to
50%
Renewable
# of Opt-Ups to
100%
Renewable
# of Opt-Outs
Participatio
n Rate
Oceanside 63,944 89 32 2,147 96.7%
Vista 34,707 28 249 806 97.7%
TOTAL 98,651 117 281 2,953 97.0%
CEA Enrollment Stats
7 POWER SUPPLY PRODUCT APRIL
2024
MAY
2024
Net
Change
Clean Impact – 50% Renewable 537 544 +7
Clean Impact Plus - 75% Carbon Free 151,828 246,558 +94,730 Green Impact – 100% Renewable 674 850 +176
TOTAL ACCOUNTS 153,039 247,952 94,913
Solar Plus Update • 8 Enrolled Contracts • Carlsbad – 2 • San Marcos – 4 • Escondido – 2 • 8 Rejections • 7 Customer initiated • 1 Tesla initiated 8 Solar Plus Update
• Program Expansion Opportunities
• Oceanside and Vista are now launched
• Increasing Solar Plus specific outreach
• Tesla providing additional consultation/sales
resources
9 Long-Term PPA Update:
Cape/Fervo Geothermal Project
• 15-Year PPA for Geothermal Project in Beaver County, UT • Project meets CPUC Midterm Reliability Requirements
• PPA requires quarterly update reports be provided
• Report indicates no major hurdles encountered and the Project is on track to meet its Commercial Operation Date (COD) of June 1, 2026
• Will provide an average of 31,200 MWh per year
10 Questions/Discussion
11 Item 6: Regulatory Update
12 Questions/Discussion
03/28/24 13
Item 7: Fiscal Year 2024-25
Budget Discussion
14 FY2024-2025 Draft Budget
And
5-Year Outlook through June 2029
Board Meeting May 30, 2024 Meeting
FY 2023-2024 Year End Forecast
&
FY2024-2025 Draft Budget Detail
Financial Performance Projected through June 30, 2024
17 YTD Actuals through Forecast through Budget
Variance: Budget
to FY Forecast
3/31/2024 6/30/2024 FY2023-2024 Fav/(Unf)
Net Operating Revenues $142,666,265 $199,237,067 $228,415,000 ($29,177,933) Total Cost of Energy $134,804,312 $191,716,170 $200,000,000 $8,283,830 Other Expenses (excluding Energy) $4,025,314 $5,920,234 $10,161,205 $4,240,971 Total Operating Expenses 138,829,626 197,636,404 210,161,205 12,524,801 Total Non-operating Income/(Expense) (774,660) (1,177,736) (700,000) (477,736) CHANGE IN NET POSITION $3,061,978 $422,927 $17,553,795 ($17,130,868) Net Position at the beginning of period ($6,452,287) ($6,452,287) $2,369,978 ($8,822,265) Net Position at the end of period ($3,390,308) ($6,029,360) $19,923,773 ($25,953,133) Total Cash $7,422,596 $4,136,471
Total Line of Credit Used $9,950,000 $26,950,000
Key Assumptions
• Budgeting monthly going forward (annually before) will enable monthly YTD comparisons – will still adopt Annual Budget • Channelside included starting January 2025
• Programs Budget
• FY2025 - $600K
• FY2026 - $2.0 million
• FY2027 - $4.0 million
• FY2028 - $6.0 million
• FY2029 - $8.0 million
• Staffing and Administration
• No additional positions (yet)
• Assumed costs increase ~25% per year over current level • Accounts for potential staff increases and associated office-related expenses
18 5-Year Outlook – Current Rates
19 Preliminary Budget Outlook Outlook Outlook Outlook
FY2024-2025 FY2025-2026 FY2026-2027 FY2027-2028 FY2028-2029 Total Operating Revenues $314,043,070 $342,024,196 $349,099,350 $354,556,941 $360,241,315 Total Cost of Energy $317,403,431 $351,223,210 $399,620,179 $368,237,937 $339,309,865 Other Operating Expenses (excluding Energy) $9,402,131 $12,203,744 $15,817,361 $19,825,809 $24,336,608 Total Operating Expenses $326,805,563 $363,426,954 $415,437,540 $388,063,746 $363,646,474 Operating Income (Loss) ($12,762,493) ($21,402,758) ($66,338,190) ($33,506,805) ($3,405,158) Total Nonoperating Income/(Expense) ($958,143) ($729,180) ($971,543) ($1,601,352) ($1,844,451) CHANGE IN NET POSITION ($13,720,636) ($22,131,938) ($67,309,733) ($35,108,156) ($5,249,609) Rate Summary and Analysis
Current Rates and Requirements
• Adopted January 2023 Effective February 2023
• Current Average Monthly Residential Winter CEA Charge - $25 • Current Average Monthly Residential Summer CEA Charge - $90 • JPMorgan covenant compliance
• Resulted in revenues sufficient to recover costs
• Met Debt Service Coverage Ratio & Days Liquidity on Hand • Addressed cash flow needs
• Achieved Rate Stability
• Achieved Rate competitiveness to SDG&E
21 22
(Winter Avg Monthly)
338 kWh
Current
SDG&E
Current
CEA
Solana
Beach
Current CEA
Carlsbad &
Del Mar
Current CEA
Escondido
& San
Marcos
Current CEA
Oceanside
& Vista
Generation $30.17 $25.02 $25.02 $25.02 $25.02
SDGE - PCIA $2.48 ($.09) $7.97 0.70
SDGE - Franchise Fees 1.37 1.37 1.37 1.37 1.37
SDGE - Delivery Charges 139.01 139.01 139.01 139.01 139.01 Total Avg Monthly Bill $170.55 $167.88 $165.31 $173.37 $166.10 Winter Rates: November – May (7 months)
Summer Rates: June – October (5 months)
Average Total Bill– Residential TOU-DR1
Winter Rates
23 (Summer Avg Monthly)
377 kWh
Current
SDG&E
Current
CEA
Solana
Beach
Current CEA
Carlsbad &
Del Mar
Current CEA
Escondido
& San
Marcos
Current CEA
Oceanside
& Vista
Generation $80.42 $89.83 $89.83 $89.83 $89.83
SDGE - PCIA $2.76 ($.10) $8.89 $0.78
SDGE - Franchise Fees 2.04 2.04 2.04 2.04 2.04
SDGE - Delivery Charges 105.22 105.22 105.22 105.22 105.22 Total Avg Monthly Bill $187.68 $199.85 $196.99 $205.98 $197.87 Average Total Bill– Residential TOU-DR1
Summer Rates
Winter Rates: November – May (7 months)
Summer Rates: June – October (5 months)
24 Winter – 338 kWh
Summer – 377 kWh
Solana Beach
VY 2017
Carlsbad & Del Mar
VY 2020
Escondido & San
Marcos
VY 2022
Oceanside &
Vista
VY 2023
Avg CEA Cust Winter Bill $167.88 $165.31 $173.37 $166.10 Avg SDGE Cust Winter Bill $170.54 $170.54 $170.54 $170.54 Winter $ Difference ($2.66) ($5.23) $2.83 ($4.46)
Winter % Variance -1.6% -3.2% 1.6% -2.7%
Avg CEA Cust Summer Bill $199.85 $196.99 $205.97 $197.87 Avg SDGE Cust Summer
Bill $187.68 $187.68 $187.68 $187.68
Summer $ Difference $12.17 $9.31 $18.29 $10.18
Summer % Variance 6% 4.7% 8.9% 5.1%
Current Total Bill Comparisons – Residential TOU-DR1
Includes Generation & Delivery Costs
Winter Rates: November – May (7 months)
Summer Rates: June – October (5 months)
Average Annual Variance to SDG&E
25 Winter – 338 kWh
Summer – 377 kWh
Solana Beach
VY 2017
Carlsbad & Del
Mar
VY 2020
Escondido & San
Marcos
VY 2022
Oceanside &
Vista
VY 2023
Total Average Annual
Difference $42.12 $9.85 $111.20 $19.76
Average Monthly Diff $3.51 $0.82 $9.27 $1.65
Average % Diff to SDG&E 1.9% 0.5% 5.0% 0.9%
Winter Rates: November – May (7 months)
Summer Rates: June – October (5 months)
Rate-Setting Priorities
• JPMorgan covenant compliance
• Result in revenues sufficient to recover costs and fund reserves • Meet Debt Service Coverage Ratio & Days Liquidity on Hand • Address cash flow needs
• Provide funds to meet Climate Action Goals
• Increasing Renewable Energy to achieve 100% Renewable by 2035 • Rate Stability
• Meet Board-set financial reserve policy (5% of revenues) • Financial stability and credit rating
• Rate competitive to SDG&E
26 Rate Change Options Considered
• Option 1: 10% Effective 7/1/2024 & 10% Effective 7/1/2025 • Results in annualized total bill increase of 6.0%
• Option 2: 20% Effective 11/1/2024
• Results in annualized total bill increase of 5.7%
• Option 3: 30% Winter Rate Change & 15% Summer Rate
Change Effective 11/1/2024
• Results in annualized total bill increase of 5.4%
• All three options result in meeting rate setting priorities and JPMorgan covenants
27 Rate Change Option Considerations
• Rate Change effective 7/1 impacts customers during
summer months
• Bills already increase by average $30 beginning in June • 10% CEA rate increase would add an additional $9 per month in July 2024 and an additional $10 in July 2025
• Change from summer rates to winter rates on 11/1 results in average Total bill reduction of $30
• Softens impact of rate change on 11/1
• Changing summer rates by a lower percentage than winter rates results in smoothing electric bills throughout the year 28 Annualized Total Bill Impact
Average Total
Winter Bill
Average Total
Summer Bill
Annualized
Average
Monthly Bill
Annualize
d
% Change
Current Rates $170 $200 $182.50
Option 1 $175.25 $219 $193.48 6.0%
Option 2 $175 $218 $192.92 5.7%
Option 3 $177.50 $213 $192.29 5.4%
Winter Rates: November – May (7 months)
Summer Rates: June – October (5 months)
Comparison of Average Monthly
Impact Rate Change Options
30 $5.00
$18.00
$7.50
$13.00
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
Winter Summer
Option 1 Option 2 Option 3
Total $5.75
Total $19.00
10% on
7/1/2025
10% on
7/1/2024
10% on
7/1/2025
10% on
7/1/2024
Annualized Total Bill Comparison to SDG&E
Current Rates
3 Rate Change Options – Variance based on PCIA Vintage
8.1%
6.6%
11.4%
7.1%
7.8%
6.3%
10.2%
6.8%
7.5%
6.0%
10.0%
6.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Solana Beach Carlsbad/Del Mar Escondido & San Marcos Oceanside & Vista Option 1 Option 2 Option 3
Change in Net Position
Comparison of 3 Rate Options
32 Preliminary
Budget Outlook Outlook Outlook Outlook
FY2024-2025 FY2025-2026 FY2026-2027 FY2027-2028 FY2028-2029 Option 1 $16,023,845 $42,858,479 ($73,071) $34,108,861 $65,992,341 Option 2 $14,609,849 $39,760,299 ($3,274,828) $30,812,800 $62,599,855 Option 3 $23,909,606 $41,313,234 ($1,714,207) $32,417,541 $64,249,695 Cash Balance Comparison
33 Credit Line fully repaid in Sept 2024 and Sept 2025
under all scenarios. No drawdowns are required
after Sept 2025.
(5,000,000)
15,000,000
35,000,000
55,000,000
75,000,000
95,000,000
115,000,000
135,000,000
Option 1
Option 2
Option 3
Note: Negative balance would require higher credit line drawdown.
FY2024-2025 Budget Timeline
• Board Meeting May 30, 2024 – Draft Budget Review
• Updated financial results through March 2024
• Board Meeting June 27, 2024 – Final Budget Approval and approval of any rate change
• With updated financial results through April 2024
34 Questions/Discussion
35