Executive Committee Meeting
Friday, March 3, 2023
12:00 P.M.
Charles F. McGlashan Board Room, 1125 Tamalpais Avenue, San Rafael, CA 94901 Mt. Diablo Room, 2300 Clayton Road, Suite 1150, Concord, CA 94920
Members of the public who wish to observe the meeting and/or offer public comment may do so telephonically via the following teleconference call-in number and meeting ID:
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Agenda Page 1 of 2
1. Roll Call/Quorum
2. Board Announcements (Discussion)
3. Public Open Time (Discussion)
4. Report from Chief Executive Officer (Discussion)
5. Consent Calendar (Discussion/Action)
C.1 Approval of 2.3.23 Meeting Minutes
6. Fiscal Year 2023/24 Proposed Budgets (Discussion/Action)
7. Deep Green Resource Mix and New Service Offering (Discussion)
8. Review Draft 3.16.23 Board Agenda (Discussion)
MCE ~r::ri~~~ng Energy Future
CONTRA COSTA I MARIN I NAPA I SOLANO
MARIN COUNTY I NAPA CO UNTY I UNINCORPORATED CONTRA COSTA COUNTY I UNINCORPORATED SOLANO COUNTY
BENICIA I CONCORD I DANVILLE I EL CERRITO I FAIRFIELD I LAFAYETTE I MARTINEZ I MORAGA I OAKLEY
PINOLE I PITTSBURG I PLEASANT HILL I RICHMOND I SAN PABLO I SAN RAMON I VALLEJO I WALNUT CREEK Agenda Page 2 of 2
9. Committee Matters & Staff Matters (Discussion)
10. Adjourn
The Executive Committee may discuss and/or take action on any or all of the items listed on the agenda irrespective of how the items are described.
DISABLED ACCOMMODATION: If you are a person with a disability which requires an accommodation or an alternative format, please call MCE at 1 (888) 632-3674 at least 72 hours before the meeting start time to ensure arrangements for accommodation.
DRAFT
MCE EXECUTIVE COMMITTEE MEETING MINUTES
Friday, February 3, 2023
12:00 P.M.
The Executive Committee Meeting was conducted pursuant to the requirements of Assembly Bill No. 361 (September 16, 2021) which allows a public agency to use teleconferencing during a Governor-proclaimed state of emergency without meeting usual Ralph M. Brown Act teleconference requirements. Committee Members, staff and members of the public were able to participate in the Committee Meeting via teleconference.
Present: Eli Beckman, Town of Corte Madera
Cindy Darling, City of Walnut Creek
Kevin Haroff, City of Larkspur
Devin Murphy, City of Pinole
Laura Nakamura, Alternate, City of Concord
Gabe Quinto, City of El Cerrito
Holli Thier, Town of Tiburon
Sally Wilkinson, City of Belvedere
Absent: Barbara Coler, Town of Fairfax
David Fong, Town of Danville
Max Perrey, City of Mill Valley
Shanelle Scales-Preston, City of Pittsburg
Staff
& Others: Jesica Brooks, Board Clerk
Alice Havenar-Daughton, Director of Customer Programs
Darlene Jackson, Lead Board Clerk
Vicken Kasarjian, Chief Operating Officer
Catalina Murphy, Associate General Counsel
Jamie Tuckey, Chief of Staff
Alex Valenti, Senior Customer Programs Manager
Dawn Weisz, Chief Executive Officer
1. Roll Call
Chair Haroff called the regular Executive Committee meeting to order at 12:07 p.m. with quorum established by roll call.
2. Board Announcements (Discussion)
There were none.
3. Public Open Time (Discussion)
Chair Haroff opened the public comment period and there were no comments.
AI #05 C.1: 2.3.23 Meeting Minutes
DRAFT
4. Resolution No. 2022-02 Authorizing Continued Remote Teleconference Meetings for the Board of Directors and Every Committee of the Board of Directors Pursuant to Government Code Section 54953(e) (Discussion/Action) Catalina Murphy, Associate General Counsel, presented this item and addressed questions from Committee members.
Chair Haroff opened the public comment period and there were no comments.
Action: It was M/S/C (Quinto/Thier) to adopt proposed Resolution No. 2023- 02 Authorizing Remote Teleconference Meetings for the Board of Directors and Every Committee of the Board of Directors Pursuant to Government Code Section 54953(e). Motion carried by unanimous roll call vote. (Absent:
Directors Coler, Darling, Fong, Perrey, and Scales-Preston).
5. Report from Chief Executive Officer (Discussion)
Dawn Weisz, CEO, introduced this item and addressed questions from Committee members.
Chair Haroff opened the public comment period and there were no comments.
6. Consent Calendar (Discussion/Action)
C.1 Approval of 12.2.22 Meeting Minutes
C.2 Second Agreement with Energy Solutions
C.3 Schedule A.3 to Master Services Agreement with CLEAResult Consulting Inc.
Chair Haroff opened the public comment period and there were no comments.
7. Seventh Agreement with The Energy Alliance Association (Discussion/Action) Alice Havenar-Daughton, Director of Customer Programs, and Alex Valenti, Senior Customer Programs Manager, presented this item and addressed questions from Committee members.
Chair Haroff opened the public comment period and there were no comments.
Action: It was M/S/C (Quinto/Thier) to approve Consent Calendar item C.1.
Motion carried by roll call vote. (Abstained: Directors Beckman and Wilkinson
Absent: Directors Coler, Fong, Perrey, and Scales-Preston).
Action: It was M/S/C (Thier/Beckman) to approve Consent Calendar item C2- C.3. Motion carried by unanimous roll call vote. (Absent: Directors Coler, Fong, Perrey, and Scales-Preston).
AI #05 C.1: 2.3.23 Meeting Minutes
DRAFT
Action: It was M/S/C (Quinto/Darling) to approve the proposed Seventh Agreement with The Energy Alliance Association. Motion carried by unanimous roll call vote. (Absent: Directors Coler, Fong, Perrey, and Scales-Preston).
8. In-Person Meetings and Teleconferencing Options Under the Brown Act and AB 2449 (Discussion/Action)
Catalina Murphy, Associate General Counsel, presented this item and addressed questions from Committee members.
Chair Haroff opened the public comment period and there were no comments.
Action: It was M/S/C (Thier/Darling) to recommend to the Board of Directors, when a state-proclaimed State of Emergency is not in place, to hold Board and Committee meetings beginning March 1, 2023 under the Default Teleconferencing Rules. Motion carried by unanimous roll call vote. (Absent:
Directors Coler, Fong, Perrey, and Scales-Preston).
9. MCE Formation Documents and Voting Rules Discussion (Discussion) Catalina Murphy, Associate General Counsel, presented this item and addressed questions from Committee members.
Chair Haroff opened the public comment period and there were no comments.
Action: No action required.
10. Review Draft 2.16.23 Board Agenda (Discussion)
Dawn Weisz, CEO, presented this item and addressed questions from Committee members.
Chair Haroff opened the public comment period and there were no comments.
Action: No action required.
11. Committee Matters & Staff Matters (Discussion)
There were none.
12.Adjournment
Chair Haroff adjourned the meeting at 1:49 p.m. to the next scheduled Executive Committee Meeting on March 3, 2023.
___________________________________________
Kevin Haroff, Chair
AI #05 C.1: 2.3.23 Meeting Minutes
DRAFT
Attest:
___________________________________________
Dawn Weisz, Secretary
AI #05 C.1: 2.3.23 Meeting Minutes
1 March 3, 2023
TO: MCE Executive Committee
FROM: Garth Salisbury, Chief Financial Officer & Treasurer Maíra Strauss, Manager of Finance
RE: Fiscal Year 2023/24 Proposed Budgets (Agenda Item #06) ATTACHMENTS: A. Proposed FY 2023/24 Operating Fund Budget B. Proposed FY 2023/24 Program Development Fund Budget
C. Proposed FY 2023/24 Resiliency VPP Fund Budget
D. Proposed FY 2023/24 Energy Efficiency Program Fund Budget E. MCE Policy 013: Reserve Policy
Dear Executive Committee Members:
Summary:
MCE’s fiscal year (FY) runs from April 1 through March 31 of the following calendar year.
Before the end of every fiscal year, MCE’s staff present proposed Budgets to the Executive Committee and Board for consideration for MCE’s Operating Fund, Energy Efficiency (EE) Program Fund, Program Development Fund (PDF)
1 and the Resiliency VPP Fund2 for the
upcoming fiscal year. These Budgets authorize staff to:
1. Spend funds within the limits set forth in each budget line item and apply budgeted contingency amounts if necessary;
2. Fund MCE’s Program Development Fund, Electric Vehicle and other customer programs;
3. Fund MCE’s Resiliency VPP Fund; and
4. Move closer to reaching MCE’s reserve targets by further funding MCE’s Operating Fund balances and reserves.
The attached Proposed Budgets reflect MCE’s projected revenue, expenditures and 1 Previously called the “Local Renewable Energy and Program Development Fund.” 2 Previously called the “Resiliency Fund.” We are now adding “VPP” for MCE’s investments in Virtual Power Plant technology.
MCE Empowering
Our Clean
Energy Future
CONTRA COSTA I MARIN I NAPA I SOLANO
2 contingencies for FY 2023/24, and are anticipated to allow MCE to continue providing a minimum of 60% renewable energy and move closer to our goal of 95% greenhouse gas (GHG)-free energy for our customers. The rate increases implemented on January 1 of this year are also anticipated to result in additional revenue to enable MCE to cover the costs for energy and resource adequacy (RA) and make progress on reaching the Board’s Reserve Policy goals.
The proposed FY 2023/24 Operating Fund Budget is projected to result in an increase of $99,663,000 to MCE’s Net Position at the end of the fiscal year, assuming continuation of the current rate schedule and no further significant increases in market prices. Staff has incorporated contingencies into the proposed budget including a summer heat wave and continued grid congestion which can negatively impact the availability of MCE’s solar resources. An addition to MCE’s Net Position of $99,663,000 would result in achieving 81% of the Board Reserve Policy Goals and 82% of the Board liquidity goal by the end of the fiscal year in 2024. At the conclusion of the 2023/24 fiscal year Staff may propose, and the Board could consider, deferring some of this projected revenue into the Operating Reserve Fund for use in future years. Any deferral into the Operating Reserve Fund would reduce the addition to Net Position by a like amount. Staff will update the Board on the progress and status of the budget throughout the fiscal year.
Staff requests that the Executive Committee review and discuss the proposed Budgets and recommend to the full Board for approval, with any requested amendments, at its March 16, 2023 meeting.
FY 2023/24 Operating Fund Budget Highlights:
Attached is the Proposed FY 2023/24 Operating Fund Budget (Attachment A). For comparison purposes, Proposed FY 2023/24 is shown alongside the current year’s Approved Budget and actual results through November 2022 and projections through March 31, 2023 (“Projected Budget”).
Revenue – Electricity (+$170,000,000, 26.2% increase): Electricity revenue is projected to go up by $170 million primarily due to the effects of a full fiscal year with the rate adjustment passed by your Board in December 2022. Sales volume (GWh) is projected to be up slightly (1.2%) due to load growth within the existing customer base. Projected Net Electricity Revenue is adjusted downward by an assumed delinquency rate of 2% of Electricity Revenues, which represents over $16 million in projected uncollectible revenue.
Cost of energy (+$171,000,000, 34.5% increase): Cost of energy is expected to go up by $171 million over the current budget and about $100 million over the projected actuals for the current fiscal year. Expenses associated with the purchase of energy include our power purchase agreements, charges by the California Independent Systems Operator (CAISO) for MCE load, services performed by the CAISO, RA costs and other regulatory energy requirements necessary to meet the energy needs of our customers.
Personnel (+$2,502,000, 15.5% increase): This increase is reflective of cost-of-living 3 adjustments to salaries, promotions, a budgeted assumption of merit increases for staff in 2024 (a combined 10.5%), fully integrating the full year’s costs of new FTEs added last year, and the anticipated addition of 7 new FTEs over the course of the fiscal year (a combined 5%). This would increase FTE headcount from 89 to 96.
Furthermore, MCE is continuing its successful workforce development program through hiring and training 9 interns, 3 fellows, and 2 temporary staff. The program allows members of MCE’s service area, who may not have otherwise had the opportunity to work in the renewable energy industry, to get professional development and education in the industry.
Overall, the proposed personnel costs represent 2.3% of the total Operating Fund Budget, which is slightly less than the current fiscal year (2.6% in FY 2022/23). Personnel costs are net of a $2.3 million allocation of MCE staff time to CPUC Funded Programs and other grant program administration.
Data Manager (-$628,000, 10.9% decrease): This decrease captures the first full year of moving in-house some of the previously outsourced call center services plus the shift to a more cost-effective data management services provider.
Technical and Scheduling Consultants (+$247,000, 24.0% increase): Current energy market price volatility in addition to unprecedented increases in energy and RA costs require staff to work with a number of technical consultants. These consultants allow us to develop new and more advanced strategies to better predict our daily and hourly customer load and to respond to new regulatory mandates. MCE is proactively educating staff and working with more specialized technical consultants to better manage these risks and to implement more sophisticated energy scheduling strategies.
Legal and Policy Services (+$84,000, 6.0% increase): Legal counsel expenses support MCE’s contracting, human resources, financial and regulatory activities including market restructuring issues. Certain legal counsel expenses are expected to be down slightly due to changing counsel to more cost-effective firms. Additionally, CalCCA continues to take on a number of the regulatory and policy issues on behalf of all CCAs in California thus reducing the expenses that were previously borne directly by MCE. These reductions in legal costs have been offset by additional costs to support/advise MCE’s staff on employment law, storage technologies and financing matters such as MCE's potential bonding activities and electricity prepayment transactions.
Communications Services (+$253,000, 11.8% increase): Communications costs are associated with print, online, social, and video advertising; printing and mailing customer notices including compliance notices, targeted program marketing and on-going engagement; maintaining the website; community outreach and sponsorships; and special events. MCE is also investing in customer engagement campaigns, increasing diverse customer outreach, and promoting our clean power supply and programs. Costs for Communication Services are expected to increase modestly in anticipation of additional vendor support for Customer Programs marketing, and communications to increase participation, maintain and grow our customer base, as well as more in-person engagement 4 and outreach with the pandemic winding down.
Other services (+$101,000, 4.4% increase): Other services encompass certain expenses which are not captured in other budget categories, such as consulting related to the ongoing support of Customer Relationship Management (CRM) software and the Digital Analytics Platform (DAP) developed by the Technology and Analytics Department.
General and Administration (+$167,000, 6.2% increase): General and administration costs include office supplies, data, travel, dues and subscriptions, support for California Community Choice Association (CalCCA), and other related expenses. Increased costs are associated with increased regulatory and legislative activities, CRM licenses for use by our Public Affairs Department, Customer Programs Department, and Legal and Policy Department, and load forecasting software for use by the Power Resources Department to allow for more sophisticated resource allocation and optimization of load scheduling.
Occupancy (-$18,000, 1.8% decrease): Decreased costs are expected to impact the budget by the end of the fiscal year due to an anticipated renegotiation of existing office leases.
Finance and Contingency (no change): As the operating cost components of the Finance Department are allocated in all of the other budget line items, only the Contingency is represented here. This line represents $1.5 million or 0.2% of the total Operating Fund Budget. Staff proposes once again that it be managed/allocated based upon actual outcomes and needs within the group budgets throughout the fiscal year.
Non-Operating Revenue and Expense, Fund Transfer and Other Updates:
Grant income (+ $3,104,000, 136% increase): MCE receives grants from government and non-profit organizations to support certain activities connected to MCE’s mission. Grant income varies year to year as grants can be “one time” or can be provided to MCE under multiple year agreements. Some grants expired in the current fiscal year and others are starting in the 2023/24 fiscal year. The following grants or portions thereof are included:
1. $1,000,000 (2022-2027) to support MCE’s Healthy Homes program in Richmond.
Funded by the California Strategic Growth Council Transformative Climate Communities program.
2. $ 750,000 (2023-2025) to support MCE’s Healthy Homes program across our service area. Funded by congressionally directed community spending requests (federal earmarks).
3. $750,000 (2020-2025) to support solar combined with storage installations for non-profits in Marin. Funded by the Marin Community Foundation.
4. $500,000 (2023-2025) to support solar combined with storage installations for community resiliency centers. Funded by federal earmarks. 5 5. $1,500,000 (2022-2024) to support EV charging installations in Contra Costa disadvantaged communities in partnership with the Contra Costa Transportation Authority. Funded by the California Energy Commission.
6. $180,000 (2022-2023) to support EV charging installations at multifamily properties in Marin. Funded by the Marin Community Foundation.
7. $86,000 (2023-2024) to support EV charging installations at multifamily properties.
Funded by the California Energy Commission Reliable, Equitable, and Accessible Charging for multi-family Housing (REACH) program.
8. $2,000,000 (2023-2025) to support EV charging installations. Funded by congressionally directed community spending requests (federal earmarks).
9. $1,762,000 for Disadvantaged Communities Green Tariff and Community Solar Green Tariff Programs (DACG-GT). The program enables income-qualified, residential customers in disadvantaged communities who may be unable to install solar on their roof to benefit from utility scale clean energy and receive a 20% bill discount.
Interest Income (+$3,500,000, +233% increase): Increased interest income is expected to result from a targeted investment strategy developed by MCE Staff and the retention of an outside investment management company to take advantage of the increase in interest rates and further additions to our reserves over the course of the fiscal year.
FY 2023/24 Program Development Fund (PDF)
The PDF is financed by a transfer from the Operating Fund equal to 50% of the 1¢/kWh premium for Deep Green service and additional amounts if approved by the Board. For the 2023/24 budget year, in addition to a $1,970,000 transfer representing 50% of the incremental 1¢/kWh, MCE will receive $500,000 of Federal earmarked funds for EV rebates.
This fund will be used for incentives, technical assistance, community education, and implementation of the following programs:
• Transportation electrification.
o Rebates for newly purchased and leased EVs for income-qualified residents. o Rebates for charging ports installed at workplaces and multifamily properties. o MCE’s EV smart charging app, MCE Sync, which automates home EV charging to use the least expensive and cleanest energy on the grid. • Fleet electrification.
• Low-income solar rebates.
o Rebates for solar installations when paired with storage for income-qualified residents. Expenditures primarily target residential single-family and multi-family rooftop installations. • Building electrification.
6 • Rebates for electric, grid-enabled Heat Pump Water Heaters.
FY 2023/24 Resiliency VPP Fund
On November 21, 2019, your Board approved the creation of a Resiliency VPP Fund with initial funding in the amount of $3,000,000 plus an incremental funding of $3,000,000 in FY 2020/21, $1,000,000 in FY 2021/22, and $2,000,000 in FY 2022/23. The creation of this fund was in large part a response to PG&E’s Public Safety Power Shutoff (PSPS) events. Power outages significantly impact the safety, reliability, health and welfare of our customers, and disproportionately affect vulnerable populations. MCE is working to help strengthen our communities by piloting energy storage paired with solar to retain essential power supply during power outages while minimizing the use of carbon-emitting generators and fossil-fuel technologies.
Staff is recommending an additional $500,000 of Federally earmarked funds and $750,000 from Marin Community Foundation bringing the total funding to date to $10,250,000.
Energy Efficiency Program Fund
($28,757,000, 40% increase): The Energy Efficiency Program Fund uses funding authorized by the California Public Utilities Commission (CPUC) to support multifamily, commercial, agricultural, industrial, single family and workforce development sub-programs. The Energy Efficiency Program Fund supports the activities of the Energy Efficiency (EE) Program and the Low-Income Families and Tenants (LIFT) Pilot Program, Peak FLEXmarket, and Residential Market Programs. The funds awarded from the CPUC have increased from $20,183,000 in FY 2022/23 to $28,757,000 in FY 2023/2024.
Fiscal Impacts: The net impact of the Proposed Operating Fund Budget is a projected $99,663,000 contribution to MCE’s net position during FY 2023/24. The projections assume no change to MCE’s current rates and are based on the best available information regarding market prices for any unhedged power supply.
Potential FY 2023/24 Budget Impacts: A number of anticipated and unanticipated events could have a measurable effect on MCE’s portfolio and finances in the coming fiscal year.
These include:
1) System energy, renewable energy and resource adequacy prices may end up being higher than anticipated due to market volatility, scarcity, availability and/or due to regulatory changes that can diminish the value of existing contracts, or drive-up costs;
2) Customer Energy Demand – As we continue to experience climate change through extreme weather events, including summer heat waves, severe cold temperatures, and drought, energy demand can outpace our hedged energy supply and negatively impact MCE’s finances. This is particularly true when day-ahead and/or real-time market prices are abnormally high. 7 Projected Impacts on MCE’s Reserve Policy Goals: If results are as anticipated with the proposed budget, MCE would make significant progress on meeting the Board approved reserve and liquidity targets:
Recommendation: Recommend approval of the proposed FY 2023/24 Operating Fund, Energy Efficiency Fund, Program Development Fund, and Resiliency VPP Fund Budgets to the MCE Board of Directors.
Reserve & Liquidity Requirement Targets FY 2022/23 FY 2023/24 Reserve Target ($) 336,540,000 423,000,000
Projected Actual Reserves ($) 241,051,000 341,051,000
% of Target 72% 81%
Liquidity Target ($) 368,811,000 463,562,000
Total Projected Liquidity ($) 265,832,424 380,832,424
Projected Days Liquidity on Hand 173 197
Target Days Liquidity on Hand 240 240
Reserve
Projections
Liquidity
Projections
A. Proposed FY 2023/24 Operating Fund Budget
Fiscal Year
2022/23
Approved
Budget
Fiscal Year
2022/23
Projected
Budget
Fiscal Year
2023/24
Proposed
Budget
Approved vs
Proposed $
Variance
(Under) Over
Approved vs
Proposed %
Variance
(Under) Over
As % of Net
Electricity
Revenue
ENERGY REVENUE
Operating Revenues 647,152,000 $ 642,543,000 $ 816,760,000 $ 169,608,000 $ 26.2% Uncollectible Accounts (18,459,000) (18,335,000) (16,621,000) (1,838,000) -10.0% REVENUE - ELECTRICITY NET 628,693,000 624,208,000 800,139,000 171,446,000 27.3% 100.0%
ENERGY EXPENSES
Cost of Energy 495,310,000 566,383,000 665,973,000 170,663,000 34.5% 83.2% NET ENERGY REVENUE 133,383,000 57,825,000 134,166,000 783,000 0.6% 16.8%
OPERATING EXPENSES
Personnel 16,167,000 15,636,000 18,669,000 2,502,000 15.5% 2.3% Data Manager 5,762,000 5,917,000 5,134,000 (628,000) -10.9% 0.6% Technical and Scheduling Consultants 1,028,000 955,000 1,275,000 247,000 24.0% 0.2% Service Fees - PG&E 2,465,000 2,250,000 2,527,000 62,000 2.5% 0.3% Legal and Policy Services 1,403,000 908,000 1,487,000 84,000 6.0% 0.2% Communication Services 2,152,000 1,429,000 2,405,000 253,000 11.8% 0.3% Other Professional Services 2,318,000 1,790,000 2,419,000 101,000 4.4% 0.3% General and Administrative 2,688,000 2,070,000 2,855,000 167,000 6.2% 0.4% Occupancy 1,028,000 1,027,000 1,010,000 (18,000) -1.8% 0.1% Contingency 1,500,000 - 1,500,000 - 0.0% 0.2%
TOTAL OPERATING EXPENSES 36,511,000 31,982,000 39,281,000 2,770,000 7.6% 4.9% OPERATING INCOME 96,872,000 25,843,000 94,885,000 (1,987,000) -2.1% 11.9%
NONOPERATING REVENUES
Grant Income 2,281,000 1,862,000 5,385,000 3,104,000 136.1% 0.7% Other Income - 7,982,000 - - -
Interest Income 1,500,000 2,602,000 5,000,000 3,500,000 233.3% 0.6% TOTAL NONOPERATING REVENUES 3,781,000 12,446,000 10,385,000 (2,061,000) -54.5% 1.3%
NONOPERATING EXPENSES
Banking Fees and Financing Costs 222,000 167,000 222,000 - 0.0% 0.0% Grant Expenses 2,281,000 152,000 5,385,000 3,104,000 136.1% 0.7% TOTAL NONOPERATING EXPENSES 2,503,000 319,000 5,607,000 3,104,000 124.0% 0.7% CHANGE IN NET POSITION 98,150,000 37,970,000 99,663,000 1,513,000 1.5% 12.5% Budgeted Net Position Beginning of Period 215,657,000 203,279,000 241,249,000 25,592,000 11.9% 0.30 Change in Net Position 98,150,000 37,970,000 99,663,000 1,513,000 1.5% 12.5% BUDGETED NET POSITION END OF PERIOD 313,807,000 241,249,000 340,912,000 27,105,000 8.6% 0.43
CAPITAL EXPENDITURES, INTERFUND TRANSFERS & OTHER
Capital Outlay 75,000 389,000 - 314,000 418.7% 0.0%
Transfer to Resiliency VPP Fund 2,000,000 2,000,000 (2,000,000) - -100.0% 0.0% Transfer to Program Development Fund 1,712,000 1,712,000 1,970,000 258,000 15.1% 0.2% CARES 5,000,000 2,637,000 (5,000,000) - -100.0% 0.0%
TOTAL CAPITAL EXPENDITURES, INTERFUND TRANSFERS &
OTHER 8,787,000 6,349,000 2,359,000 (6,428,000) -73.2% 0.3%
0.0%
BUDGETED NET INCREASE IN OPERATING FUND BALANCE 89,363,000 31,621,000 97,304,000 7,941,000 8.9% 12.2% MCE Operating Fund
Proposed Budget Fiscal Year 2023/24
From April 1, 2023 through March 31, 2024
AI #06 Att. A: Prop. FY 2023/24 Operating Fund Budget
~MCE ~r::ri~':.'~"9
'M ( Energy Future
CONTRA COSTA I MARIN I NAPA I SOLANO
B. Proposed FY 2023/24 Program Development Fund Budget
MCE
Program Development Fund
Proposed Budget Fiscal Year 2023/24
From April 1, 2023 through March 31, 2024
Fiscal Year
2022/23
Approved Budget
Fiscal Year
2022/23
Projected Budget
Fiscal Year
2023/24
Proposed Budget
REVENUE AND OTHER SOURCES
Transfer from Operating Fund $ 770,000 $ 770,000 $ -
Deep Green Transfer 942,000 942,000 1,970,000
TOTAL REVENUE AND OTHER SOURCES 1,712,000 1,712,000 1,970,000
EXPENDITURES AND OTHER USES
Local Pilot Programs 3,436,000 1,087,000 4,850,000
Low Income Solar Programs 100,000 50,000 -
Regional Heat Pump Water Heater Program 200,000 200,000 360,000 TOTAL EXPENDITURES AND OTHER USES 3,736,000 1,337,000 5,210,000 Net Increase (Decrease) in Fund Balance (2,024,000) 375,000 (3,240,000) Fund Balance at Beginning of Period* 2,033,000 2,913,000 3,288,000 Fund Balance at End of Period 9,000 3,288,000 48,000
*Beginning balance for FY 2023/24 differs from budget FY 2022/23 ending balance due to delays in actual fund spending.
Prior year committed 2,227,638 3,979,638
Approximate end of 2023/24
AI #06 Att. B: Prop. FY 2023/24 Program Development Fund Budget ~MCE ~r::r~~~~ng ' M ( Energy Future
CONTRA COSTA I MARIN I NAPA I SOLANO
C. Proposed FY 2023/24 Resiliency VPP Fund Budget
MCE
Resiliency VPP Fund
Proposed Budget Fiscal Year 2023/24
From April 1, 2023 through March 31, 2024
Fiscal Year
2022/23
Approved
Budget
Fiscal Year
2022/23
Projected
Budget
Fiscal Year
2023/24
Proposed
Budget
REVENUE AND OTHER SOURCES 0
Marin Community Foundation Grant - $ - $ 750,000 $
Federally Directed Funding - - 500,000
Transfer from Operating Fund 2,000,000 2,000,000 -
Total Revenue and Other Sources 2,000,000 2,000,000 1,250,000
EXPENDITURES AND OTHER USES
Efforts Related to Marin Community Foundation Grant 485,000 - 750,000 VPP Solar Storage - - 2,000,000
VPP Efforts 3,379,000 1,350,000 500,000
TOTAL EXPENDITURES AND OTHER USES 3,864,000 1,350,000 3,250,000 Net Increase (Decrease) in Fund Balance (1,864,000) 650,000 (2,000,000) Fund Balance at Beginning of Period* 2,838,000 3,582,276 4,232,276 Fund Balance at End of Period 974,000 4,232,276 2,232,276 *Beginning balance for FY 2023/24 differs from budget FY 2022/23 ending balance due to delays in actual fund spending. 9000000 2,514,000
4,292,496 2,514,000
4,707,504 3,357,504
1,125,228
3,582,276
AI #06 Att. C: Prop. FY 2023/24 Resiliency VPP Fund Budget ~MCE ~i::r~~~~ng
'M ( Energy Future
CONTRA COSTA I MARIN I NAPA I SOLANO
D. Proposed FY 2023/24 Energy Efficiency Program Fund Budget MCE
Energy Efficiency Fund
Proposed Budget Fiscal Year 2023/24
From April 1, 2023 through March 31, 2024
Fiscal Year
2022/23
Approved
Budget
Fiscal Year
2022/23
Projected
Budget
Fiscal Year
2023/24
Proposed
Budget
REVENUE AND OTHER SOURCES
Public Purpose Energy Efficiency Program 14,705,000 $ 6,995,000 $ 14,982,000 $ Public Purpose Low Income Families and Tenants Pilot Program 1,625,000 426,000 1,625,000 Peak FLEXmarket 3,854,000 117,000 8,250,000
ResMap 37,000 - 3,900,000
TOTAL REVENUE AND OTHER SOURCES 20,184,000 7,575,000 28,757,000
EXPENDITURE AND OTHER USES
Public Purpose Energy Efficiency Program 14,705,000 6,995,000 $ 14,982,000 Public Purpose Low Income Families and Tenants Pilot Program 1,625,000 426,000 1,625,000 Peak FLEXmarket 3,854,000 117,000 8,250,000
ResMap 37,000 - 3,900,000
TOTAL EXPENDITURES AND OTHER USES 20,184,000 7,575,000 28,757,000
BALANCE - - -
28,863,120
AI #06 Att. D: Prop. FY 2023/24 Energy Efficiency Program Fund Budget ~MCE ii::r~~~~ng ' M ( Energy Future
CONTRA COSTA I MARIN I NAPA I SOLANO
POLICY 013: Reserve Policy
Policy Statement
MCE will adopt budgets and establish rates that provide for a growing Reserve until target funding levels are met.
The Reserve will grow to and be maintained at a funding level equal to or exceeding 60% of projected energy and operating expenses for the current fiscal year. The Reserve will be accounted for as the Net Position in MCE’s financial statements.
The MCE Board will adopt budgets and establish rates for MCE with the goal of building and maintaining Reserves at or above the target level by March 2022, subject to MCE’s ability to meet operational expenditures and maintain competitive rates.
Policy Purpose
MCE will prudently manage its operations in a manner that supports its long-term financial independence and stability while providing sufficient financial capacity to meet short term obligations. This Reserve Policy is important in meeting MCE’s strategic objectives, securing favorable commercial terms from both third-party service providers and lenders and in the maintenance and potential improvement in MCE’s stand-alone credit ratings.
Adequate Reserves will enable MCE to satisfy working capital requirements, procure energy at competitive rates, adhere to loan or bond covenants, cover unanticipated expenditures, and support rate stability.
Relationship to the Budget, Liquidity and Periodic Review By setting rates and authorizing expenditures through approved Budgets, MCE determines targeted additions to Reserves. Staff will carefully monitor MCE’s liquidity to ensure it meets the objectives of the organization with the goal of securing 240 days liquidity on hand1. Staff will review the Reserve Policy annually to ensure it meets the needs of the agency. The future development of MCE may require the expansion of reserve requirements to support new activities such as major expansion of MCE activities or the acquisition of generating assets. 1 Days liquidity on hand = (unrestricted cash and investments + unused bank lines of credit) x 365 / (operating expenses + cost of energy, each for the current fiscal year) AI #06 Att. E: MCE Policy 013: Reserve Policy
MC
APPROVED
Date: 11/21/2019
MARIN CLEAN ENERGY
DRAFT
Board of Directors Meeting
Thursday, March 16, 2023
7:00 P.M.
Charles F. McGlashan Board Room, 1125 Tamalpais Avenue, San Rafael, CA 94901 Mt. Diablo Room, 2300 Clayton Road, Suite 1150, Concord, CA 94920
Members of the public who wish to observe the meeting and/or offer public comment may do so telephonically via the following teleconference call-in number and meeting ID:
For Viewing Access Join Zoom Meeting:
https://us02web.zoom.us/j/86784992940?pwd=SDF1NUpjbWZVRy9BRnBTSFJYcXZpUT09
Dial: (669) 900-9128
Webinar ID: 867 8499 2940
Passcode: 314955
Agenda Page 1 of 2
1. Roll Call/Quorum
2. Board Announcements (Discussion)
3. Public Open Time (Discussion)
4. Report from Chief Executive Officer (Discussion)
5. Consent Calendar (Discussion/Action)
C.1 Approval of 2.16.23 Meeting Minutes
C.2 Approved Contracts for Energy Update
6. Amendment to MCE Investment Policy (Discussion/Action)
7. Fiscal Year 2023/24 Proposed Budget (Discussion/Action) AI #08: Draft 3.16.23 Board Agenda
MCE ~r::rih!~~ng Energy Future
CONTRA COSTA I MARIN I NAPA I SOLANO
MARIN COUNTY I NAPA CO UNTY I UNINCORPORATED CONTRA COSTA COUNTY I UNINCORPORATED SOLANO COU N TY
BENICIA I CONCORD I DANVILLE I EL CERRITO I FAIRFIELD I LAFAYETTE I MARTINEZ I MORAGA I OAKLEY
PINOLE I PITTSBURG I PLEASANT HILL I RICHMOND I SAN PABLO I SAN RAMON I VALLEJO I WALNUT CREEK Agenda Page 2 of 2
8. Deep Green Resource Mix and New Service Offering
(Discussion/Action)
9. Generation Project Request for Information (Discussion)
10. Public Affairs Update (Discussion)
11. Customer Programs Update (Discussion)
12. Board Matters & Staff Matters (Discussion)
13. Adjourn
The Board may discuss and/or take action on any or all of the items listed on the agenda irrespective of how the items are described.
DISABLED ACCOMMODATION: If you are a person with a disability which requires an accommodation or an alternative format, please call MCE at 1 (888) 632-3674 at least 72 hours before the meeting start time to ensure arrangements for accommodation.
AI #08: Draft 3.16.23 Board Agenda