2075 Woodside Road | Redwood City, CA 94061
(650) 260-0005 | peninsulacleanenergy.com
Regular Meeting of the Audit and Finance Committee of the Peninsula Clean Energy Authority (PCEA)
AGENDA
Monday, February 14, 2022
8:30 a.m.
Zoom Link: https://pencleanenergy.zoom.us/j/82172572134 Meeting ID: 821-7257-2134 Passcode: 2075 Phone: +1(253)215-8782 NOTE: Please see attached document for additional detailed teleconference instructions.
In accordance with AB 361, the Committee will adopt findings that meeting in person would present imminent risks to the health or safety of attendees of in-person meetings. Consistent with those findings, this Committee Meeting will be held remotely. PCEA shall make every effort to ensure that its video conferenced meetings are accessible to people with disabilities as required by Governor Newsom’s March 17, 2020 Executive Order N-29-20. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials should contact Nelly Wogberg, Board Clerk, at least 2 working days before the meeting at [email protected]. Notification in advance of the meeting will enable PCEA to make best efforts to reasonably accommodate accessibility to this meeting and the materials related to it.
If you wish to speak to the Audit and Finance Committee, please use the “Raise Your Hand” function in the Zoom platform or press *6 if you phoned into the meeting. If you have anything that you wish to be distributed to the Audit and Finance Committee and included in the official record, please send to [email protected].
CALL TO ORDER / ROLL CALL
PUBLIC COMMENT
This item is reserved for persons wishing to address the Committee on any PCEA-related matters that are not otherwise on this meeting agenda. Public comments on matters listed on the agenda shall be heard at the time the matter is called. Members of the public who wish to address the Committee are customarily limited to two minutes per speaker. The Committee Chair may increase or decrease the time allotted to each speaker.
ACTION TO SET AGENDA AND TO APPROVE CONSENT AGENDA ITEMS
1. Adopt Findings Pursuant to AB 361 to Continue Fully Teleconferenced Committee Meetings Due to Health Risks Posed by In-Person Meetings
2. Approval of Minutes for the November 8 and November 18, 2021 and Audit and Finance Committee Meetings
REGULAR AGENDA
3. Chair Report (Discussion)
1 4. Staff Report (Discussion)
5. Review Financial Reports and Investment Summary for 2nd Quarter Fiscal Year (FY) 2021- 2022 (Discussion)
6. Approval of a Revised 2022 Audit & Finance Committee Schedule of Meetings (Action)
7. Committee Members’ Reports (Discussion)
ADJOURNMENT
Public records that relate to any item on the open session agenda are available for public inspection. The records are available at the Peninsula Clean Energy offices or on PCEA’s Website at: https://www.peninsulacleanenergy.com. 2 Instructions for Joining a Zoom Meeting via Computer or Phone Best Practices:
• Please mute your microphone when you are not speaking to minimize audio feedback • If possible, utilize headphones or ear buds to minimize audio feedback • If participating via videoconference, audio quality is often better if you use the dial-in option (Option 2 below) rather than your computer audio
Options for Joining
A. Videoconference with Computer Audio – see Option 1 below B. Videoconference with Phone Call Audio– see Option 2 below C. Calling in via Telephone/Landline – see Option 3 below Videoconference Options:
Prior to the meeting, we recommend that you install the Zoom Meetings application on your computer by clicking here https://zoom.us/download.
If you want full capabilities for videoconferencing (audio, video, screensharing) you must download the Zoom application.
Option 1 Videoconference with Computer Audio:
1. From your computer, click on the following link that is also included in the Meeting Calendar Invitation : https://pencleanenergy.zoom.us/j/82172572134
2. The Zoom application will open on its own or you will be instructed to open Zoom.
3. After the application opens, the pop-up screen below will appear asking you to choose ONE of the audio conference options. Click on the Computer Audio option at the top of the pop-up screen.
4. Click the blue, “Join with Computer Audio” button.
5. In order to enable video, click on “Start Video” in the bottom left-hand corner of the screen. This menu bar is also where you can mute/unmute your audio.
3 Option 2 Videoconference with Phone Call Audio:
1. From your computer, click on the following link that is also included in the Meeting Calendar Invitation: https://pencleanenergy.zoom.us/j/82172572134
2. The Zoom Application will open on its own or you will be instructed to Open Zoom.
3. After the application opens, the pop-up screen below will appear asking you to choose ONE of the audio conference options. Click on the Phone Call option at the top of the pop-up screen.
4. Please dial +1 (253) 215-8782.
5. You will be instructed to enter the meeting ID: 821-7257-2134 followed by #.
6. You will be instructed to enter in your participant ID. Your participant ID is unique to you and is what connects your phone number to your Zoom account.
7. After a few seconds, your phone audio should be connected to the Zoom application on your computer.
8. In order to enable video, click on “Start Video” in the bottom left-hand corner of the screen. This menu bar is also where you can mute/unmute your audio.
Audio Only Options:
Please note that if you call in/use the audio only option, you will not be able to see the speakers or any presentation materials in real time.
Option 3: Calling in via Telephone/Landline:
1. Dial +1 (253) 215-8782.
2. You will be instructed to enter the meeting ID: 821-7257-2134 followed by #.
3. You will be instructed to enter your Participant ID followed by #. If you do not have a participant ID or do not know it, you can press # to stay on the line.
4. You will be instructed to enter the meeting passcode 2075 followed by #. 4 Item No. 1
PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: February 10, 2022
COMMITTEE MEETING DATE: February 14, 2022
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: Majority Present
TO: Honorable Peninsula Clean Energy Authority Audit and Finance Committee
FROM: Jan Pepper, Chief Executive Officer, Peninsula Clean Energy Authority SUBJECT: Resolution to Make Findings Allowing Continued Remote Meetings Under Brown Act
RECOMMENDATION: ..title
Adopt a resolution finding that, as a result of the continuing COVID-19 pandemic state of emergency declared by Governor Newsom, meeting in person would present imminent risks to the health or safety of attendees.
..body
BACKGROUND:
On June 11, 2021, Governor Newsom issued Executive Order N-08-21, which rescinded his prior Executive Order N-29-20 and set a date of October 1, 2021 for public agencies to transition back to public meetings held in full compliance with the Brown Act. The original Executive Order provided that all provisions of the Brown Act that required the physical presence of members or other personnel as a condition of participation or as a quorum for a public meeting were waived for public health reasons. If these waivers fully sunset on October 1, 2021, legislative bodies subject to the Brown Act would have to contend with a sudden return to full compliance with in-person meeting requirements as they existed prior to March 2020, including the requirement for full physical public access to all teleconference locations from which committee members were participating.
On September 16, 2021, the Governor signed AB 361, a bill that formalizes and modifies the teleconference procedures implemented by California public agencies in response to the Governor’s Executive Orders addressing Brown Act compliance during shelter-in-place periods. AB 361 allows a local agency to continue to use teleconferencing under the same basic rules as provided in the Executive Orders when certain circumstances occur or when certain findings have been made and adopted by the local agency. On January 5, 2022, Governor Newsom extended the sunset provision of AB361 and Government Code Section 11133(g) from January 31, 2022 to April 1, 2022 due to the surge in Omicron variant related COVID-19 cases and hospitalizations. 5 Item No. 2
AB 361 requires that, if the state of emergency remains active for more than thirty (30) days, the agency must make findings by majority vote to continue using the bill’s exemption to the Brown Act teleconferencing rules. The findings are to the effect that the need for teleconferencing persists due to the nature of the ongoing public health emergency and the social distancing recommendations of local public health officials.
Effectively, this means that agencies, including PCEA, must agendize a Brown Act meeting and make findings regarding the circumstances of the emergency on a thirty (30) day basis. If at least thirty (30) days have transpired since its last meeting, the Committees must vote whether to continue to rely upon the law’s provision for teleconference procedures in lieu of in-person meetings.
AB 361 allows for meetings to be conducted virtually as long as there is a gubernatorially-proclaimed public emergency in combination with (1) local health official recommendations for social distancing or (2) adopted findings that meeting in person would present risks to health. AB 361 is effective immediately as urgency legislation and will now sunset on April 1, 2022.
On September 25, 2021, the Peninsula Clean Energy Board of Directors approved a thirty (30) day extension of remote meetings in accordance with AB 361. Out of an abundance of caution given AB 361’s narrative that describes each legislative body’s responsibility to reauthorize remote meetings, staff and counsel brings this memo and corresponding resolution to the attention of the Audit and Finance Committee.
On September 29, 2021, the Peninsula Clean Energy Audit & Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361.
On October 12, 2021, the Peninsula Clean Energy Audit & Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361.
On November 8, 2021, the Peninsula Clean Energy Audit & Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361.
On November 18, 2021, the Peninsula Clean Energy Audit & Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361.
DISCUSSION:
Because local rates of transmission of COVID-19 are in the “high transmission” tier as measured by the Centers for Disease Control, it is recommended that the Peninsula Clean Energy Audit and Finance Committee avail itself of the provisions of AB 361 allowing continuation of online meetings by adopting findings to the effect that conducting in-person meetings would present an imminent risk to the health and safety of attendees. A resolution to that effect and directing staff to agendize the renewal of such findings in the event that thirty (30) days has passed since the Committee’s last meeting, is attached hereto.
6 28637147v1
RESOLUTION NO. _____________
PENINSULA CLEAN ENERGY AUTHORITY, COUNTY OF SAN MATEO,
STATE OF CALIFORNIA
* * * * * *
RESOLUTION FINDING THAT, AS A RESULT OF THE CONTINUING COVID-19
PANDEMIC STATE OF EMERGENCY DECLARED BY GOVERNOR NEWSOM,
MEETING IN PERSON FOR MEETINGS OF THE PENINSULA CLEAN ENERGY
AUDIT AND FINANCE COMMITTEE WOULD PRESENT IMMINENT RISKS TO THE
HEALTH OR SAFETY OF ATTENDEES
______________________________________________________________ WHEREAS, on March 4, 2020, the Governor proclaimed pursuant to his authority under the California Emergency Services Act, California Government Code section 8625, that a state of emergency exists with regard to a novel coronavirus (a disease now known as COVID-19); and
WHEREAS, on June 4, 2021, the Governor clarified that the “reopening” of California on June 15, 2021 did not include any change to the proclaimed state of emergency or the powers exercised thereunder, and as of the date of this Resolution, neither the Governor nor the Legislature have exercised their respective powers pursuant to California Government Code section 8629 to lift the state of emergency either by proclamation or by concurrent resolution in the state Legislature; and WHEREAS, on March 17, 2020, Governor Newsom issued Executive Order N-29-20 that suspended the teleconferencing rules set forth in the California Open Meeting law, Government Code section 54950 et seq. (the “Brown Act”), provided certain requirements were met and followed; and
7 28637147v1
WHEREAS, on September 16, 2021, Governor Newsom signed AB 361 that provides that a legislative body subject to the Brown Act may continue to meet without fully complying with the teleconferencing rules in the Brown Act provided the legislative body determines that meeting in person would present imminent risks to the health or safety of attendees, and further requires that certain findings be made by the legislative body every thirty (30) days; and,
WHEREAS, on January 5, 2022, Governor Newsom extended the sunset provision of AB361 and Government Code Section 11133(g) from January 31, 2022 to April 1, 2022 due to the surge in Omicron variant related COVID-19 cases; and, WHEREAS, California Department of Public Health (“CDPH”) and the federal Centers for Disease Control and Prevention (“CDC”) caution that the Omicron variant of COVID-19, currently the dominant strain of COVID-19 in the country, is more transmissible than prior variants of the virus and that even fully vaccinated individuals can spread the virus to others resulting in rapid and alarming rates of COVID-19 cases and hospitalizations ; and,
WHEREAS, the CDC has established a “Community Transmission” metric with 4 tiers designed to reflect a community’s COVID-19 case rate and percent positivity; and,
WHEREAS, the County of San Mateo currently has a Community Transmission metric of “High Transmission” which is the most serious of the tiers; and, WHEREAS, the Committee has an important governmental interest in protecting the health, safety and welfare of those who participate in its meetings; 8 28637147v1
WHEREAS, on September 25, 2021, the Peninsula Clean Energy Board of Directors approved a thirty (30) day extension of remote meetings in accordance with AB 361. Out of an abundance of caution given AB 361’s narrative that describes each legislative body’s responsibility to reauthorize remote meetings, staff and counsel bring this resolution to the attention of the Audit and Finance Committee, and; WHEREAS, on September 29, 2021, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361, and;
WHEREAS, on October 12, 2021, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361, and;
WHEREAS, on November 8, 2021, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361, and;
WHEREAS, in the interest of public health and safety, as affected by the emergency caused by the spread of COVID-19, the Committee deems it necessary to find that meeting in person would present imminent risks to the health or safety of attendees, and thus intends to invoke the provisions of AB 361 related to teleconferencing.
NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that
1. The recitals set forth above are true and correct.
9 28637147v1
2. The Committee finds that meeting in person would present imminent risks to the health or safety of attendees.
3. Staff is directed to return no later than thirty (30) days, or, alternatively, at the next scheduled meeting of the Committee, after the adoption of this resolution with an item for the Committee to consider making the findings required by AB 361 in order to continue meeting under its provisions.
4. Staff is directed to take such other necessary or appropriate actions to implement the intent and purposes of this resolution.
* * * * * *
10 Item No. 2
Regular Meeting of the Audit and Finance Committee of the Peninsula Clean Energy Authority (PCEA)
Minutes
Monday, November 8, 2021
8:30 a.m.
Zoom Video Conference and Teleconference
CALL TO ORDER
Meeting was called to order at 8:32 a.m. in virtual teleconference.
ROLL CALL
Participating Remotely:
Carole Groom, San Mateo County
Donna Colson, Burlingame
Carlos Romero, East Palo Alto
Laurence May, Hillsborough, Chair
John Keener, Director Emeritus
Pradeep Gupta, Director Emeritus
Absent: Jeff Aalfs, Portola Valley
Staff: Jan Pepper, Chief Executive Officer
Andy Stern, Chief Financial Officer
Rafael Reyes, Director of Energy Programs
Jennifer Stalzer Kraske, Deputy County Counsel
Nelly Wogberg, Board Clerk
A quorum was established.
PUBLIC COMMENT
None
ACTION TO SET AGENDA AND TO APPROVE CONSENT AGENDA ITEMS MOTION: Director Romero moved, seconded by Director Groom to set the Agenda and approve Agenda Item Number 1.
1. Approval of the Minutes for the August 9 and October 12, 2021 Meetings
2. Adopt Findings Pursuant to AB 361 to Continue Fully Teleconferenced Board Meetings Due to Health Risks Posed by In-Person Meetings
MOTION PASSED: 4-0 (Absent: Portola Valley)
11 Item No. 2
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Groom X
Burlingame Director Colson X
East Palo Alto Director Romero X
Hillsborough Director May X
Portola Valley Director Aalfs X
Totals 4 1
REGULAR AGENDA
3. Chair Report
None
4. Staff Report
None
5. Review of Quarterly Financials (Discussion)
Andy Stern, Chief Financial Officer, gave a presentation on the quarterly financials for Quarter 1 (Q1) ending September 30, 2021 and reviewed the change in accounting standards to Governmental Accounting Standards Board (GASB) 87, and California Independent System Operator (CAISO) Deposits.
Board Members discussed CAISO collateral deposit levels and variance levels between budget and actual levels of energy costs.
6. Approval of 2022 Audit and Finance Committee Schedule of Meetings (Action) Nelly Wogberg, Board Clerk, explained the proposed 2022 Audit and Finance Committee Meeting Schedule to be in compliance with AB 361 guidelines including a number of meetings that would begin just before the monthly Board of Directors Meetings.
MOTION: Director Romero moved, seconded by Director Colson to Approve the 2022 Audit and Finance Committee Schedule of Meetings.
MOTION PASSED: 3-0 (Absent: San Mateo County, Portola Valley)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Groom X
Burlingame Director Colson X
East Palo Alto Director Romero X
Hillsborough Director May X
Portola Valley Director Aalfs X
Totals 3 2
12 Item No. 2
7. Committee Members’ Reports
None
ADJOURNMENT
Meeting was adjourned at 9:08 a.m.
13 Item No. 2
Special Meeting of the Audit and Finance Committee of the Peninsula Clean Energy Authority (PCEA)
Minutes
Thursday, November 18, 2021
6:25 p.m.
Zoom Video Conference and Teleconference
CALL TO ORDER
Meeting was called to order at 6:33 p.m. in virtual teleconference.
ROLL CALL
Participating Remotely:
Donna Colson, Burlingame
Laurence May, Hillsborough, Chair
Jeff Aalfs, Portola Valley
John Keener, Director Emeritus
Pradeep Gupta, Director Emeritus
Absent: Carole Groom, San Mateo County
Carlos Romero, East Palo Alto
Staff: Jennifer Stalzer Kraske, Deputy County Counsel
Nelly Wogberg, Board Clerk
A quorum was established.
PUBLIC COMMENT
None
ACTION TO SET AGENDA AND TO APPROVE CONSENT AGENDA ITEMS MOTION: Director Aalfs moved, seconded by Director Colson to set the Agenda and approve Agenda Item Number 1.
1. Adopt Findings Pursuant to AB 361 to Continue Fully Teleconferenced Board Meetings Due to Health Risks Posed by In-Person Meetings
MOTION PASSED: 3-0 (Absent: San Mateo County, East Palo Alto)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Groom X
Burlingame Director Colson X
East Palo Alto Director Romero X
14 Item No. 2
Hillsborough Director May X
Portola Valley Director Aalfs X
Totals 3 2
ADJOURNMENT
Meeting was adjourned at 6:35 p.m.
15 Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
December 31, 2021
($000s)
16 Fiscal Year Ending Actual/Budget Amount Fiscal Year Ending Actual/Budget Amount June 30, 2016 Audited ($1,044) June 30, 2016 Audited $2,333 June 30, 2017 Audited $21,711 June 30, 2017 Audited $17,382 June 30, 2018 Audited $85,365 June 30, 2018 Audited $64,889 June 30, 2019 Audited $140,135 June 30, 2019 Audited $114,069 June 30, 2020 Audited $188,923 June 30, 2020 Audited $178,176 June 30, 2021 Audited $180,343 June 30, 2021 Audited $166,173 December 31, 2021 Unaudited $166,605 December 31, 2021 Unaudited $155,462 June 30, 2022 Budget $165,599 June 30, 2022 Budget $165,593 Fiscal Year Actual/Budget Amount Fiscal Year Actual/Budget Amount FY2015‐2016 Audited ($1,044) FY2015‐2016 Audited $0
FY2016‐2017 Audited $22,755 FY2016‐2017 Audited $64,501 FY2017‐2018 Audited $63,655 FY2017‐2018 Audited $170,135 FY2018‐2019 Audited $54,774 FY2018‐2019 Audited $194,035 FY2019‐2020 Audited $48,788 FY2019‐2020 Audited $216,066 FY2020‐2021 Audited ($8,285) FY2020‐2021 Audited $213,834 December 31, 2021 Unaudited YTD ($13,738) December 31, 2021 Unaudited YTD $107,606 FY2021‐2022 Budget ($18,672) FY2021‐2022 Budget $216,706 Fiscal Year Actual/Budget Amount Fiscal Year Actual/Budget Amount FY2015‐2016 Audited $0 FY2015‐2016 Audited $1,041
FY2016‐2017 Audited $93,129 FY2016‐2017 Audited $70,104 FY2017‐2018 Audited $244,738 FY2017‐2018 Audited $180,970 FY2018‐2019 Audited $259,782 FY2018‐2019 Audited $206,964 FY2019‐2020 Audited $278,093 FY2019‐2020 Audited $231,482 FY2020‐2021 Audited $228,101 FY2020‐2021 Audited $236,373 December 31, 2021 Unaudited YTD $103,409 December 31, 2021 Unaudited YTD $116,826 FY2021‐2022 Budget $222,240 FY2021‐2022 Budget $241,812 Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
Revenues Total Operating Expenses
December 31, 2021
($000s)
Net Position Balance Unrestricted Cash/Investments Balance Change in Net Position Cost of Electricty
17 NOTE: FINANCIAL STATEMENTS ARE PRELIMINARY UNTIL THE ANNUAL AUDIT IS COMPLETED. ‐ Revenues below Budget. Revenues were $7.5 MM below Budget in Q2; well below the budgeted level.
Total load was 2.3% below budget for Q2 and 3.1% below Budget for the YTD.
Residential load was substantially below Budget level.
‐ Total Expenses below Budget. Total Expenses were $6.1 MM below Budget in Q2 ‐ All categories were below Budget.
Savings in Cost of Energy was nearky half of the Q2 savings. Although energy prices were high, lower usage and successful hedging practices mitigated the high prices.
YTD Total expenses were $8.4 MM below Budget negating a substantial portion of the revenue shortfall.
Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
Customer Accounts Energy Used
December 31, 2021
($000s)
YTD Revenues YTD Expenses
$113,498
$103,409
$0 $50,000 $100,000 $150,000 $200,000
YTD Revenues ‐ Actual vs. Budget
Actual Revenues ‐ YTD Budget Revenues ‐ YTD
$125,210
$116,826
$0 $50,000 $100,000 $150,000 $200,000
YTD Expenses ‐ Actual vs. Budget
Actual Expenses ‐ YTD Budget Expenses ‐ YTD
268,370 ,
90.5%
28,212 ,
9.5%
Customer Accounts
Residential Commercial/Industrial
686,581 ,
40.6%
1,005,104 ,
59.4%
YTD Customer Energy Billed (MWh)
Residential Commercial/Industrial
18 Actual Budget
Variance:
Favorable /
(Unfavorable)
YTD Actual as
% of YTD
Budget Budget
YTD Actual as
% of Full Year
Budget
Prior Year
Actual (YTD)
OPERATING REVENUES
Electricity Sales, net 101,941 $ $ 112,160 $ (10,219) 90.9% 219,619 $ 46.4% 136,568 $ Green electricity premium 1,468 1,338 130 109.7% 2,621 56.0% 1,366 Total Operating Revenues $103,409 $113,498 ($10,090) 91.1% $222,240 46.5% $137,934
OPERATING EXPENSES
Cost of energy 107,606 111,527 3,922 96.5% 216,706 49.7% 117,939 Staff compensation 2,919 3,208 289 91.0% 6,464 45.2% 2,717 Data Manager 1,694 1,710 16 99.0% 3,420 49.5% 1,689Service Fees ‐ PG&E 615 630 15 97.6% 1,260 48.8% 626 Consultants/Professional Svcs 525 754 229 69.7% 1,351 38.9% 1,262Legal 652 823 170 79.3% 1,616 40.4% 786Communications/Noticing 880 1,116 236 78.9% 2,068 42.5% 601General and Administrative 968 1,102 134 87.8% 2,259 42.9% 831 Community Energy Programs 926 4,289 3,363 21.6% 6,556 14.1% 865 Depreciation 41 51 10 80.2% 112 36.9% 48
Total Operating Expenses 116,826 125,210 8,384 93.3% 241,812 48.3% 127,363 Operating Income (Loss) ($13,417) ($11,712) ($1,706) 114.6% ($19,572) 68.6% $10,571Total Nonoperating Inc/(Exp) (321) 450 ‐ (771) 71.3% 900 ‐35.6% 522 CHANGE IN NET POSITION ($13,738) ($11,262) ($2,477) ($18,672) $11,093 Year‐to‐date Full Year (FY 2021‐2022)
Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
December 31, 2021
($000s)
19 1
ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Peninsula Clean Energy Authority
Management is responsible for the accompanying financial statements of Peninsula Clean Energy Authority (PCE), a California Joint Powers Authority, which comprise the statement of net position as of December 31, 2021, and the statement of revenues, expenses, and changes in net position, and the statement of cash flows for the period then ended, in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
PCE’s annual audited financial statements will include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to PCE because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
January 24, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 20 ASSETS
Current assets
Cash and cash equivalents 16,855,236 $
Accounts receivable, net of allowance 19,032,395
Accrued revenue 9,426,663
Investments 21,557,015
Other receivables 851,214
Prepaid expenses 1,613,894
Deposits 7,947,593
Restricted cash 500,000
Total current assets 77,784,010
Noncurrent assets
Capital assets, net of depreciation 302,488
Intangible assets 2,008,801
Investments 116,580,034
Deposits and other assets 248,976
Total noncurrent assets 119,140,299
Total assets 196,924,309
LIABILITIES
Current liabilities
Accrued cost of electricity 23,975,772
Accounts payable 846,248
Other accrued liabilities 586,728
User taxes and energy surcharges due to other governments 773,472 Supplier deposits - energy suppliers 85,319
Lease liability 453,803
Total current liabilities 26,721,342
Noncurrent liabilities
Supplier deposits - energy suppliers 1,593,433
Lease liability 2,004,329
Total noncurrent liabilities 3,597,762
Total liabilities 30,319,104
NET POSITION
Investment in capital assets 302,488
Restricted for security collateral 500,000
Unrestricted 165,802,717
Total net position 166,605,205 $
As of December 31, 2021
STATEMENT OF NET POSITION
PENINSULA CLEAN ENERGY AUTHORITY
See accountants' compilation report. 2 21
OPERATING REVENUES
Electricity sales, net 101,940,979 $
Green electricity premium 1,467,578
Liquidated damages revenue 493,183
Total operating revenues 103,901,740
OPERATING EXPENSES
Cost of electricity 107,605,516
Contract services 5,019,372
Staff compensation 2,919,388
General and administration 989,066
Depreciation and amortization 252,604
Total operating expenses 116,785,946
Operating income (loss) (12,884,206)
NONOPERATING REVENUES (EXPENSES)
Interest and investment income (loss) (813,909)
Finance costs (40,079)
Nonoperating revenues (expenses), net (853,988)
CHANGE IN NET POSITION (13,738,194)
Net position at beginning of period (as restated) 180,343,399 Net position at end of period 166,605,205 $
PENINSULA CLEAN ENERGY AUTHORITY
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Six Months Ended December 31, 2021
See accountants' compilation report. 3 22
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 106,618,363 $
Receipts from supplier security deposits 25,320
Payments to suppliers for electricity (105,120,227)
Payments for other goods and services (6,672,591)
Payments for staff compensation (2,968,395)
Payments of taxes and surcharges to other governments (1,786,188) Net cash provided (used) by operating activities (9,903,718)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Finance costs paid (40,079)
Deposits and collateral paid (4,165,700)
Net cash provided (used) by non-capital
financing activities (4,205,779)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments on lease assets and to acquire capital assets 263,805
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investment sales 31,419,989
Investment income received 1,012,096
Purchase of investments (17,384,760)
Net cash provided (used) by investing activities 15,047,325 Net change in cash and cash equivalents 1,201,633
Cash and cash equivalents at beginning of period 16,153,603 Cash and cash equivalents at end of period 17,355,236 $ Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) 16,855,236 $
Restricted cash 500,000
Cash and cash equivalents 17,355,236 $
Six Months Ended December 31, 2021
STATEMENT OF CASH FLOWS
PENINSULA CLEAN ENERGY AUTHORITY
See accountants' compilation report. 4 23
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) (12,884,206) $
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation and amortization expense 252,604
Revenue adjusted for allowance for uncollectible accounts 781,425 (Increase) decrease in:
Accounts receivable (1,403,824)
Accrued revenue 1,528,348
Other receivables 3,487,024
Prepaid expenses 1,957,318
Increase (decrease) in:
Accrued cost of electricity 401,520
Accounts payable (400,860)
Other accrued liabilities (997,474)
User taxes and energy
surcharges due to other governments 24,485
Supplier security deposits (2,650,078)
Net cash provided (used) by operating activities (9,903,718) $ Six Months Ended December 31, 2021
STATEMENT OF CASH FLOWS (continued)
PENINSULA CLEAN ENERGY AUTHORITY
See accountants' compilation report. 5 24
Cash Disbursements - 20,904.76 - 8,806,215.46
Taxable Interest 315,956.69 556,494.16Realized Gain/Loss - 134,234.18 - 209,952.61Change In Unrealized Gain/Loss - 525,071.42 - 692,029.26Change In Accrued Income - 66,677.70 - 46,240.45 PENINSULA CLEAN ENERGY - FRB Page 3 of 26
Period from October 1, 2021 to December 31, 2021
CURRENT PERIOD YEAR TO DATE
10/01/2021 TO 12/31/2021 07/01/2021 TO 12/31/2021
Beginning Market Value 69,693,806.33 78,460,818.58DisbursementsTotal Disbursements - 20,904.76 - 8,806,215.46Asset ActivityTotal Asset Activity - 410,026.61 - 391,728.16Net Change In Market Value - 430,931.37 - 9,197,943.62Ending Market Value 69,262,874.96 69,262,874.96
MARKET VALUE RECONCILIATION
25 Cash And Equivalents 166,157.16 0.24
U.S. Government Issues 48,409,426.83 69.89Corporate Issues 20,454,218.36 29.53Accrued Income 233,072.61 0.34PENINSULA CLEAN ENERGY - FRB Page 5 of 26 Period from October 1, 2021 to December 31, 2021
12/31/2021 % OF
ASSETS MARKET VALUE MARKET
Total Assets 69,029,802.35 99.66Grand Total 69,262,874.96 100.00
ASSET SUMMARY
BONDS 99.42%
26 Cash Disbursements - 17,951.46 - 8,788,151.39
Taxable Interest 203,776.33 454,028.50Realized Gain/Loss - 110,175.18 - 178,128.49Change In Unrealized Gain/Loss - 595,323.82 - 695,007.29Change In Accrued Income 16,910.96 - 4,691.11 PENINSULA CLEAN ENERGY - PFM Page 3 of 44
Period from October 1, 2021 to December 31, 2021
CURRENT PERIOD YEAR TO DATE
10/01/2021 TO 12/31/2021 07/01/2021 TO 12/31/2021
Beginning Market Value 70,083,600.79 78,792,787.40DisbursementsTotal Disbursements - 17,951.46 - 8,788,151.39Asset ActivityTotal Asset Activity - 484,811.71 - 423,798.39Net Change In Market Value - 502,763.17 - 9,211,949.78Ending Market Value 69,580,837.62 69,580,837.62
MARKET VALUE RECONCILIATION
27 28
1 Audit & Finance Committee Revised 2022 Meeting Schedule Meeting Date: Time: Primary Purpose: Location:
_________________________________________________________________________________________________________ February 14, 2022 8:30 am Q2-FY 2021 Financial Review Video/Teleconference May 9, 2022 8:30 am Q3-FY2021 Financial Review/Budget Draft #1 Video/Teleconference June 13, 2022 8:30 am Budget Draft #2/Budget Final Video/Teleconference August 8, 2022 8:30 am Q4-FY2021 Financial Review Video/Teleconference October 12, 2022 (Wednesday) 8:30 am Review Audited Financial Statements FY2021 Video/Teleconference November 7, 2022 8:30 am Q1-FY2022 Financial Review Video/Teleconference 29