Audit & Finance Committee Meeting
February 14, 2022
Peninsula Clean Energy
Agenda
• Call to Order / Roll Call
• Public Comment (for items not on the Agenda)
• Action to set the Agenda and Approve Consent Items
• Chair Report
• Staff Report - None
FY2021-2022
Q2 Financial Review
Ending December 31, 2021
Peninsula Clean Energy
Revenue – Quarterly Trend
4 Quarterly
• Q2 revenues were $7.5 MM below
Budget
• Total load was 2.3% below
Budget during Q2 and 3.1%
below budget for the YTD
• Residential load was 4.7% below
Budget during Q2 and 7.4%
below Budget for the YTD
• Budget was increased over last
year with assumption of improved
economic climate.
Revenue by Quarter as of
Actual Budget Var Fav/(Unf)
Q1-FY2020/21 75.1 69.3 5.8
Q2-FY2020/21 62.9 41.2 21.7
Q3-FY2020/21 46.3 49.7 (3.4)
Q4-FY2020/21 43.9 55.6 (11.7)
Total YTD 2020/21 $228.1 $215.7 $12.4
Q1-FY2021/22 58.4 61.0 (2.6)
Q2-FY2021/22 45.1 52.5 (7.5)
Total YTD FY2021/22 $103.4 $113.5 ($10.1)
Quarter Revenue Comparison vs Budget
December-21
Peninsula Clean Energy
Cost of Energy – Quarterly Trend
5 Quarterly
• Q2 Cost of Energy was $2.8 MM
below Budget
• Load was 2.3% below Budget
• 100% hedged position
mitigated significantly high
prices throughout the quarter
• Prior Fiscal Year – Significantly
impacted by summer weather
including fire and smoke events.
Cost of Energy by Quarter as of
Actual Budget Var Fav/(Unf)
Q1-FY2020/21 66.7 55.3 (11.4)
Q2-FY2020/21 51.2 51.0 (0.1)
Q3-FY2020/21 49.4 46.7 (2.8)
Q4-FY2020/21 46.5 44.4 (2.0)
Total YTD 2020/21 $213.8 $197.4 ($16.4)
Q1-FY2021/22 56.5 57.6 1.1
Q2-FY2021/22 51.1 53.9 2.8
Q2-FY2021/22 $107.6 $111.5 $3.9
Quarter COE Comparison vs Budget
December-21
Peninsula Clean Energy
Financial Statement vs. Budget – Quarter and YTD
Quarterly and YTD Results
• Revenues
• Q2 was $7.5 MM below Budget.
• Residential revenues made up 2/3 of
that shortfall as Residential load was
well below Budget through November
• Expenses
• Q2 was $6.1 MM below Budget
• Energy costs $2.8 MM below Budget
despite energy prices being higher this
Summer than expected
• Significantly hedged positions mitigated
energy market costs
• Energy Programs $2.6 MM below Budget
(and $3.4 MM for YTD) – could catch-up
based on timing
• Change in Net Position
• Q4 was negative $11.6 MM – but not
significantly worse than the Q2 expected level
6 `
Actual Budget Var Fav/(Unf) Actual Budget Var Fav/(Unf)
OPERATING REVENUES
Electricity Sales, net 44,322,953 51,855,358 (7,532,405) 101,940,979 112,160,281 (10,219,301) Green electricity premium 730,895 656,538 74,357 1,467,577 1,338,072 129,504 Total Operating Revenues 45,053,848 52,511,896 (7,458,048) 103,408,556 113,498,353 (10,089,797)
OPERATING EXPENSES
Cost of energy 51,141,560 53,948,142 2,806,582 107,605,515 111,527,103 3,921,588 Staff compensation 1,441,396 1,603,960 162,564 2,919,387 3,207,920 288,533 Data Manager 845,118 855,000 9,882 1,693,623 1,710,000 16,377 Service Fees - PG&E 300,588 315,000 14,412 615,042 630,000 14,958 Consultants & Professional Services 246,030 428,410 182,380 525,256 753,820 228,564 Legal 333,634 409,000 75,367 652,357 822,750 170,393
Marketing and Noticing 375,978 569,589 193,611 879,738 1,115,618 235,880 General and Administrative 512,987 550,236 37,250 968,343 1,102,398 134,055 Community Energy Programs 531,673 3,151,403 2,619,730 925,612 4,288,931 3,363,319 Depreciation 20,514 26,794 6,280 41,152 51,337 10,185
Total Operating Expenses 55,749,477 61,857,534 6,108,057 116,826,025 125,209,878 8,383,853 Operating Income (Loss) (10,695,629) (9,345,637) (1,349,992) (13,417,469) (11,711,525) (1,705,944) Total Nonoperating Income/(Expense) (883,893) 225,000 (1,108,893) (320,726) 450,000 (770,726) CHANGE IN NET POSITION (11,579,523) (9,120,637) (2,458,885) (13,738,195) (11,261,525) (2,476,670)
CHANGE IN NET POSITION
Net Position at the beginning of period 178,184,727 182,130,333 (3,945,606) 180,343,399 184,271,220 (3,927,821) Change in Net Position (11,579,523) (9,120,637) (2,458,885) (13,738,195) (11,261,525) (2,476,670) Net Position at the end of period 166,605,204 173,009,695 (6,404,491) 166,605,204 173,009,695 (6,404,491) Ending Total Cash (Restricted/Unrestricted) 155,962,332 176,243,044 (20,280,712) 155,962,332 176,243,044 (20,280,712) Quarter ending December 2021
Current Quarter Year-to-date
Peninsula Clean Energy
Revenue – Monthly Trend
7 Revenue (Last 13 months)
Actual Budget Var Fav/(Unf)
Dec-20 $20.0 $12.7 $7.2
Jan-21 $19.4 $17.1 $2.2
Feb-21 $13.1 $15.4 ($2.3)
Mar-21 $13.8 $17.2 ($3.4)
Apr-21 $12.7 $15.0 ($2.2)
May-21 $13.9 $17.2 ($3.4)
Jun-21 $17.3 $23.4 ($6.1)
Jul-21 $19.0 $19.4 ($0.3)
Aug-21 $20.0 $21.0 ($0.9)
Sep-21 $19.3 $20.7 ($1.4)
Oct-21 $14.6 $20.1 ($5.5)
Nov-21 $14.5 $15.3 ($0.8)
Dec-21 $16.0 $17.1 ($1.1)
December-21
Month Revenue Comparison vs Budget
Peninsula Clean Energy
Cost of Energy – Monthly Trend
8 Cost of Energy (Last 13 months)
Actual Budget Var Fav/(Unf)
Dec-20 $18.2 $17.8 ($0.3)
Jan-21 $17.8 $16.3 ($1.5)
Feb-21 $15.8 $15.2 ($0.6)
Mar-21 $15.9 $15.2 ($0.7)
Apr-21 $15.4 $14.1 ($1.3)
May-21 $16.9 $14.5 ($2.4)
Jun-21 $14.1 $15.8 $1.7
Jul-21 $18.4 $17.9 ($0.6)
Aug-21 $20.6 $20.4 ($0.1)
Sep-21 $17.5 $19.3 $1.8
Oct-21 $17.4 $18.0 $0.6
Nov-21 $15.0 $16.7 $1.7
Dec-21 $18.8 $19.3 $0.5
December-21
Month COE Comparison vs Budget
Peninsula Clean Energy
Change in Net Position (Year-to-date)
9 Change in Net Position - YTD as of
Actual Budget Var Fav/(Unf)
Revenues $103.4 $113.5 ($10.1)
Cost of Energy 107.6 111.5 3.9
Other Opex 9.2 13.7 4.5
Non-Opex/(Income) 0.3 (0.5) (0.8)
Net Position ($13.7) ($11.3) ($2.5)
Accounts
December-21
Year-to-date vs Budget
Change in Net Position - Year-over-year
YTD 2021-22 YTD 2020-21 Var Fav/(Unf)
Revenues $103.4 $137.9 ($34.5)
Cost of Energy 107.6 117.9 10.3
Other Opex 9.2 9.4 0.2
Non-Opex/(Income) 0.3 (0.5) (0.8)
Net Position ($13.7) $11.1 ($24.8)
Year-over-year Comparison (YTD)
December-21
Accounts
YTD
• CINP is $2.5 worse than Budget due
to lower revenues than Budget
Vs, Prior Year
• YTD of $13.7 MM loss versus $11.1
MM gain in prior year
• Revenues significantly lower offset by
somewhat lower costs
Peninsula Clean Energy
Cash and Investment Summary – Quarterly Trend
10 Investment Manager balances at 12/31/21:
• PFM = $69.6 MM
• FRB = $69.3 MM
Note: $7.9 MM of cash is on deposit with CAISO and not reflected in this summary Jun-19 Jun-20 Jun-21 Sep-21 Dec-21
Investment Account - USBank (Combined PFM/FRB)
Asset Summary
Cash & Equivalents $ 4,507,825 $ 58,937,363 $ 2,785,233 $ 297,110 $ 236,618 Fixed Income $ 90,743,561 $ 105,343,286 $ 153,947,396 $ 138,960,485 $ 138,137,049 Accrued Income $ 546,170 $ 520,977 $ 519,812 $ 470,045
Ending Balance $ 95,251,385 $ 164,826,819 $ 157,253,606 $ 139,777,407 $ 138,843,713 Other Accounts (Unrestricted)
Unrestricted - M&T LockBox $ 758,192 $ - $ -
Unrestricted - Wilmington LockBox $ 5,632,155 $ 5,030,087 $ 2,465,340 $ 4,922,087 $ 3,979,987 Operating Account - First Republic $ 3,299,345 $ 5,834,142 $ 4,340,702 $ 6,123,653 $ 2,585,297 Savings Account - First Republic $ 9,885,949 $ 2,484,545 $ 1,354,942 $ 6,604,575 $ 10,066,905 Other Accounts $ 573 $ - $ - $ 36 $ (13,570)
Subtotal Unrestricted (non-Investment accounts) $ 18,818,022 $ 13,348,775 $ 8,919,176 $ 17,650,351 $ 16,618,619 Other Accounts (Restricted)
Restricted Cash - Wilmington LockBox $ 1,500,000 $ 1,000,000 $ 500,000 $ 500,000 $ 500,000 Restricted Cash - First Republic $ 11,665,799 $ 31,386,560 $ 3,949,194 $ 3,308,546 $ - Subtotal Restricted (non-Investment accounts) $ 13,165,799 $ 32,386,560 $ 4,449,194 $ 3,808,546 $ 500,000 Total Cash $ 127,235,206 $ 210,562,154 $ 170,621,976 $ 161,236,304 $ 155,962,332 Unrestricted Cash $ 114,069,407 $ 178,175,594 $ 166,172,782 $ 157,427,758 $ 155,462,332 Peninsula Clean Energy
Cash Reserves – Days Cash on Hand
11 Actual December 31, 2021 Forecast June 30, 2022
Total Cash/Investments Balance $155,962,332 $159,124,379 Restricted by Term/Covenant 500,000 500,000
Unrestricted Cash (per Approved Reserve Policy) $155,462,332 $158,624,379 Days Cash on Hand (per Approved Reserve Policy) 243 236 Approved Reserve Policy (Days Cash on Hand) 180 180
Unrestricted Operating Reserve Requirement (180 Days) 120,479,766 121,039,098 Unrestricted Cash in Excess of Current Reserve Policy $34,982,566 $37,585,281 Peninsula Clean Energy
Financial Statement – Forecast Full year FY2022
12 FY 2021-2022 Budget & Forecast FY 2022 FY 2022 Variance Variance Approved Budget Forecasted Full Year
FY2021-2022
Forecast $ vs.
FY21/22 Budget
Fav/(Unf)
Forecast % vs.
FY21/22 Budget
Fav/(Unf)
OPERATING REVENUES
Electricity Sales, net 219,619,107 231,573,759 11,954,652 5.4% ECO100 Premium 2,621,034 2,877,577 256,542 9.8%
Total Operating Revenues 222,240,141 234,451,336 12,211,194 5.5%
OPERATING EXPENSES
Cost of electricity 216,705,953 220,334,481 (3,628,528) -1.7% Personnel 6,464,275 6,464,275 - 0.0%
Data Manager 3,420,000 3,420,000 - 0.0%
Service Fees - PG&E 1,260,000 1,260,000 - 0.0%
Professional Services 1,351,204 1,351,204 - 0.0%
Legal 1,615,500 1,615,500 - 0.0%
Marketing and Noticing 2,068,197 2,068,197 - 0.0%
General and Administrative 2,259,391 2,259,391 - 0.0%
Community Energy Programs 6,555,671 6,555,671 - 0.0%
Depreciation 111,675 111,675 - 0.0%
Total Operating Expenses 241,811,865 245,440,393 (3,628,528) -1.5% Operating Income/(Loss) (19,571,724) (10,989,057) 8,582,666 43.9% 0 Total Non-operating Income/(Expense) 900,000 412,910 (487,090) -54.1% CHANGE IN NET POSITION (18,671,724) (10,576,147) 8,095,576 43.4%
CHANGE IN NET POSITION
Net Position at the beginning of period 184,271,220 180,343,399 (3,927,821) Inc/(Dec) in Net Position (18,671,724) (10,576,147) 8,095,576 Net Position at the end of period 165,599,497 169,767,252 4,167,755 Approx. Cash & Cash Equivalents 168,332,845 159,124,379 DCOH (Per Policy) 236
Forecasted EOY
Improvement from 1H
FY2022
• Revenues
• $10.1 MM below Budget
at 12/31/21
• $22.3 MM improvement
• Cost of Energy
• $3.9 MM below Budget at
12/31
• $7.5 MM deterioration
• Change in Net Position
• $13.7 MM below Budget
at 12/31
• $3.1 MM improvement –
likely much better than
Budget
• Assumes significant
catch-up in spending in
other areas – likely
conservative