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, May 9, 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 the Minutes for the February 14, 2022 Audit & Finance Committee Meeting
REGULAR AGENDA
3. Chair Report (Discussion)
1 4. Staff Report (Discussion)
5. Review Financial Reports and Investment Summary for Third Quarter Fiscal Year (FY) 2022-2023 (Discussion)
6. Review Fiscal Year 2022-2023 Draft Budget (Discussion)
7. Overview of Stochastic Modeling to Evaluate and Measure Risk to Cost of Energy (Discussion)
8. 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: May 3, 2022
COMMITTEE MEETING DATE: May 09, 2022
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: Majority Present
TO: Honorable Peninsula Clean Energy Authority Audit & 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: ..titl e
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. 1
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 will now sunset on January 1, 2024.
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 & 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.
On February 14, 2022, the Peninsula Clean Energy Audit & Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361.
DISCUSSION:
Because of continuing concerns regarding COVID-19 transmission, especially when individuals are grouped together in close quarters, it is recommended that the Peninsula Clean Energy Audit & 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 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 & 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, Governor Newsom extended the sunset provision of AB361 and Government Code Section 11133(g) to January 1, 2024 due to surges and instability inCOVID-19 cases; and,
WHEREAS, California Department of Public Health (“CDPH”) and the federal Centers for Disease Control and Prevention (“CDC”) caution that COVID-19 continues to be highly transmissible and that even fully vaccinated individuals can spread the virus to others; and,
WHEREAS, the Committee has an important governmental interest in protecting the health, safety and welfare of those who participate in its meetings; 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 & Finance Committee, and; 8 28637147v1
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, on February 14, 2022, 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.
2. The Committee finds that meeting in person would present imminent risks to the health or safety of attendees.
9 28637147v1
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, February 14, 2022
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:
Donna Colson, Burlingame
Carlos Romero, East Palo Alto
Laurence May, Hillsborough, Chair
Jeff Aalfs, Portola Valley
John Keener, Director Emeritus
Pradeep Gupta, Director Emeritus
Absent:
Staff: Jan Pepper, Chief Executive Officer
Andy Stern, Chief Financial Officer
Shayna Barnes, Operations Specialist
Marc Hershman, Director of Government Affairs
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 Colson moved, seconded by Director Aalfs to set the Agenda and approve Agenda Item Numbers 1-2.
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 the Minutes for the November 8 and November 18, 2021 Audit and Finance Committee Meetings
11 Item No. 2
MOTION PASSED: 3-0 (Absent: East Palo Alto)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
Burlingame Director Colson X
East Palo Alto Director Romero X
Hillsborough Director May X
Portola Valley Director Aalfs X
Totals 3 1
REGULAR AGENDA
3. Chair Report
None
4. Staff Report
None
5. Review Financial Reports and Investment Summary for 2nd Quarter Fiscal Year (FY) 2021- 2022 (Discussion)
Andy Stern, CFO, gave a presentation on the 2nd Quarter Fiscal Year 2021-2022 Financial Review including the quarterly and monthly trend for revenue and cost of energy, a review of the cash and investment summary, and a review of the financial statement.
Vice Chair Colson asked for input on the influence of higher rates driving energy conservation and how that would affect revenue projections. Andy explained that this wasn’t factored in but that as rates increase with PG&E there will be a bump in revenue. Vice Chair Colson further explained that the increase in prices has been a challenge for those on a fixed-income. Andy explained that gas usage and heating generally drive up the costs of bills during the winter months. Andy also explained that due to the Power Charge Indifference Adjustment (PCIA) rate dropping, our rates would be increasing by 50% which would result in a 20% increase in customer’s bills.
Jan Pepper, CEO, explained that our rates our tied to PG&E’s rates, which are increasing, and that with the decreasing PCIA rates the difference in rates would equal about .09 cents per kilowatt hour (kWh) for customers. Vice Chair Colson emphasized the importance of messaging and sharing data.
Chair May asked about impact of solar residential solar power installations on our revenue and if we track that data. Andy explained that there is data for the amount that customers use and for customers that are on metering but that we wouldn’t know how much energy solar customers are self-generating.
Director Emeritus Gupta asked for clarification on the timing of consumption and energy billing.
Andy clarified that an estimate is used to allocate revenues to the month based on usage to try and get a more accurate revenue estimate.
Vice Chair Colson asked how the information in this presentation would affect budgeting for FY 2022-2023. Andy explained that with the upcoming change in the PCIA rates to a more normal 12 Item No. 2
level, revenues would be increasing significantly. Jan and Andy explained the benefits of Peninsula Clean Energy’s hedging strategy and shared that a cost of service analysis for rate setting is being planned. Director Aalfs added that as Peninsula Clean Energy enters more long term solar and wind contracts backed with batteries Peninsula Clean Energy’s volatility decreases.
Director Aalfs asked if there was a point in the main vintage in San Mateo County where the PCIA would expire. Jan explained that there is no information from the CPUC on when or if PCIA rates will ever expire. Andy further explained that the PCIA rates dropped significantly this year because the costs went up so much last year thus creating a substantial difference between what PG&E paid versus the market costs.
Director Emeritus Keener suggested structuring a different rate structure than that used by PG&E.
6. Approval of a Revised 2022 Audit and Finance Committee Schedule of Meetings (Action) MOTION: Director Aalfs moved, seconded by Director Colson to approve the Revised 2022 Audit and Finance Committee Schedule of Meetings.
MOTION PASSED: 3-0 (Absent: East Palo Alto)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
Burlingame Director Colson X
East Palo Alto Director Romero X
Hillsborough Director May X
Portola Valley Director Aalfs X
Totals 3 1
7. Committee Members’ Reports
Director Aalfs asked if he could attend the Power Conference in March.
Director Colson expressed her gratitude to Andy Stern for his flexibility as we have worked on the CFO search.
ADJOURNMENT
Meeting was adjourned at 9:25 a.m.
13 Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
March 31, 2022
($000s)
14 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 March 31, 2022 Unaudited $145,266 March 31, 2022 Unaudited $138,338 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 March 31, 2022 Unaudited YTD ($35,077) March 31, 2022 Unaudited YTD $163,831 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 March 31, 2022 Unaudited YTD $147,248 March 31, 2022 Unaudited YTD $177,810 FY2021‐2022 Budget $222,240 FY2021‐2022 Budget $241,812 Change in Net Position Cost of Electricty
Revenues Total Operating Expenses
March 31, 2022
($000s)
Net Position Balance Unrestricted Cash/Investments Balance Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
15 NOTE: FINANCIAL STATEMENTS ARE PRELIMINARY UNTIL THE ANNUAL AUDIT IS COMPLETED. ‐ Revenues below Budget. Revenues were $6.5 MM below Budget in Q3; 12.9% below the budgeted level.
Total load was 7.5% below budget for Q3 and 4.6% below Budget for the YTD.
Residential load was substantially below Budget level. Commercial loads also below Budget, but to a lesser extent. ‐ Total Expenses below Budget. Total Expenses were $2.4 MM above below Budget in Q3 ‐ Most categories were below except Cost of Energy. Although energy prices had been lower than Budget through most of the year, market prices for energy rose significantly in Q3. Although hedge strategies and practices mitigated much of the price increases significant spikes were felt throughout the market. Expenses were above Budget despite lod usage below Budget.
Almost all other expense categories are below Budget for YTD. Program expenses ended Q3‐YTD $3.8 MM below Budget, but may increase significantly depending on the timing of a $2 MM payment to State of California for already‐approve EV charger program.
Customer Accounts Energy Used
March 31, 2022
($000s)
YTD Revenues YTD Expenses
Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
$163,834
$147,248
$0 $50,000 $100,000 $150,000 $200,000
YTD Revenues ‐ Actual vs. Budget
Actual Revenues ‐ YTD Budget Revenues ‐ YTD
$183,749
$177,810
$0 $50,000 $100,000 $150,000 $200,000
YTD Expenses ‐ Actual vs. Budget
Actual Expenses ‐ YTD Budget Expenses ‐ YTD
268,517 ,
90.6%
27,882 ,
9.4%
Customer Accounts
Residential Commercial/Industrial
1,056,542 ,
41.8%
1,469,765 ,
58.2%
YTD Customer Energy Billed (MWh)
Residential Commercial/Industrial
16 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 145,147 $ $ 161,851 $ (16,704) 89.7% 219,619 $ 66.1% 182,192 $ Green electricity premium 2,101 1,983 118 106.0% 2,621 80.2% 2,007 Total Operating Revenues $147,248 $163,834 ($16,585) 89.9% $222,240 66.3% $184,199
OPERATING EXPENSES
Cost of energy 163,831 164,384 553 99.7% 216,706 75.6% 167,381 Staff compensation 4,601 4,836 235 95.1% 6,464 71.2% 4,136 Data Manager 2,539 2,565 26 99.0% 3,420 74.3% 2,535Service Fees ‐ PG&E 928 945 17 98.2% 1,260 73.7% 940 Consultants/Professional Svcs 795 1,018 222 78.2% 1,351 58.9% 1,511Legal 866 1,221 355 70.9% 1,616 53.6% 1,062Communications/Noticing 1,066 1,592 526 66.9% 2,068 51.5% 1,100General and Administrative 1,540 1,685 146 91.4% 2,259 68.1% 1,269 Community Energy Programs 1,581 5,423 3,841 29.2% 6,556 24.1% 1,185 Depreciation 62 80 19 76.5% 112 55.1% 69
Total Operating Expenses 177,810 183,749 5,939 96.8% 241,812 73.5% 181,188 Operating Income (Loss) ($30,562) ($19,915) ($10,646) 153.5% ($19,572) 156.2% $3,011Total Nonoperating Inc/(Exp) (4,515) 675 ‐ (5,190) 669.0% 900 ‐501.7% (369) CHANGE IN NET POSITION ($35,077) ($19,240) ($15,837) ($18,672) $2,642 Year‐to‐date Full Year (FY 2021‐2022)
Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
March 31, 2022
($000s)
17 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 March 31, 2022, 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
April 27, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 18 ASSETS
Current assets
Cash and cash equivalents 8,820,301 $
Accounts receivable, net of allowance 15,267,817
Accrued revenue 7,975,307
Investments 17,000,397
Other receivables 995,417
Prepaid expenses 2,082,578
Deposits 7,947,922
Restricted cash 500,000
Total current assets 60,589,739
Noncurrent assets
Capital assets, net of depreciation 281,772
Intangible assets 1,903,075
Investments 112,037,057
Deposits and other assets 192,878
Total noncurrent assets 114,414,782
Total assets 175,004,521
LIABILITIES
Current liabilities
Accrued cost of electricity 21,468,404
Accounts payable 996,947
Other accrued liabilities 652,028
User taxes and energy surcharges due to other governments 730,876 Supplier deposits - energy suppliers 1,949,090
Lease liability 461,218
Total current liabilities 26,258,563
Noncurrent liabilities
Supplier deposits - energy suppliers 1,593,433
Lease liability 1,886,382
Total noncurrent liabilities 3,479,815
Total liabilities 29,738,378
NET POSITION
Investment in capital assets 281,772
Restricted for security collateral 500,000
Unrestricted 144,484,371
Total net position 145,266,143 $
As of March 31, 2022
STATEMENT OF NET POSITION
PENINSULA CLEAN ENERGY AUTHORITY
See accountants' compilation report. 2 19
OPERATING REVENUES
Electricity sales, net 142,649,987 $
Green electricity premium 2,101,241
Grant revenue 2,497,067
Total operating revenues 147,248,295
OPERATING EXPENSES
Cost of electricity 163,831,444
Contract services 7,321,945
Staff compensation 4,600,723
General and administration 1,618,419
Depreciation and amortization 378,683
Total operating expenses 177,751,214
Operating income (loss) (30,502,919)
NONOPERATING REVENUES (EXPENSES)
Liquidated damages revenue 493,183
Interest and investment income (loss) (5,008,676)
Finance costs (58,844)
Nonoperating revenues (expenses), net (4,574,337)
CHANGE IN NET POSITION (35,077,256)
Net position at beginning of period (as restated) 180,343,399 Net position at end of period 145,266,143 $
PENINSULA CLEAN ENERGY AUTHORITY
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Nine Months Ended March 31, 2022
See accountants' compilation report. 3 20
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 156,495,914 $
Receipts from supplier security deposits 1,889,091
Payments to suppliers for electricity (164,510,882)
Payments for other goods and services (9,678,630)
Payments for staff compensation (4,552,810)
Payments of taxes and surcharges to other governments (2,650,664) Net cash provided (used) by operating activities (23,007,981)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Finance costs paid (58,844)
Deposits and collateral paid (4,109,931)
Net cash provided (used) by non-capital
financing activities (4,168,775)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments on lease assets and to acquire capital assets 401,965
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investment sales 46,227,398
Investment income received 1,431,515
Purchase of investments (27,717,424)
Net cash provided (used) by investing activities 19,941,489 Net change in cash and cash equivalents (6,833,302)
Cash and cash equivalents at beginning of period 16,153,603 Cash and cash equivalents at end of period 9,320,301 $
Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) 8,820,301 $
Restricted cash 500,000
Cash and cash equivalents 9,320,301 $
Nine Months Ended March 31, 2022
STATEMENT OF CASH FLOWS
PENINSULA CLEAN ENERGY AUTHORITY
See accountants' compilation report. 4 21
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) (30,502,919) $
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation and amortization expense 376,867
Provision for uncollectible accounts (363,801)
Nonoperating liquidated damages revenue 493,183
(Increase) decrease in:
Accounts receivable 3,505,980
Accrued revenue 2,979,704
Other receivables 3,353,485
Prepaid expenses 1,488,634
Increase (decrease) in:
Accrued cost of electricity (2,105,852)
Accounts payable (250,161)
Other accrued liabilities (1,178,683)
User taxes and energy
surcharges due to other governments (18,111)
Supplier security deposits (786,307)
Net cash provided (used) by operating activities (23,007,981) $ Nine Months Ended March 31, 2022
STATEMENT OF CASH FLOWS (continued)
PENINSULA CLEAN ENERGY AUTHORITY
See accountants' compilation report. 5 22
Cash Disbursements - 2,520,783.92 - 11,326,999.38
Taxable Interest 175,345.65 731,839.81Realized Gain/Loss - 203,120.72 - 413,073.33Change In Unrealized Gain/Loss - 2,043,875.57 - 2,735,904.83Change In Accrued Income 45,340.31 - 900.14 PENINSULA CLEAN ENERGY - FRB Page 3 of 22
Period from January 1, 2022 to March 31, 2022
CURRENT PERIOD YEAR TO DATE
01/01/2022 TO 03/31/2022 07/01/2021 TO 03/31/2022
Beginning Market Value 69,262,874.96 78,460,818.58DisbursementsTotal Disbursements - 2,520,783.92 - 11,326,999.38Asset ActivityTotal Asset Activity - 2,026,310.33 - 2,418,038.49Net Change In Market Value - 4,547,094.25 - 13,745,037.87Ending Market Value 64,715,780.71 64,715,780.71
MARKET VALUE RECONCILIATION
23 Cash And Equivalents 75,797.40 0.12
U.S. Government Issues 46,835,709.16 72.37Corporate Issues 17,525,861.23 27.08Accrued Income 278,412.92 0.43PENINSULA CLEAN ENERGY - FRB Page 5 of 22 Period from January 1, 2022 to March 31, 2022
03/31/2022 % OF
ASSETS MARKET VALUE MARKET
Total Assets 64,437,367.79 99.57Grand Total 64,715,780.71 100.00
ASSET SUMMARY
BONDS 99.45%
24 Cash Disbursements - 2,500,000.00 - 11,288,151.39
Benefit Payments - 17,570.24 - 17,570.24Taxable Interest 243,213.99 697,242.49Realized Gain/Loss - 246,128.32 - 424,256.81Change In Unrealized Gain/Loss - 2,131,726.03 - 2,826,733.32Change In Accrued Income - 35,346.22 - 40,037.33 PENINSULA CLEAN ENERGY - PFM Page 3 of 51
Period from January 1, 2022 to March 31, 2022
CURRENT PERIOD YEAR TO DATE
01/01/2022 TO 03/31/2022 07/01/2021 TO 03/31/2022
Beginning Market Value 69,580,837.62 78,792,787.40DisbursementsTotal Disbursements - 2,517,570.24 - 11,305,721.63Asset ActivityTotal Asset Activity - 2,169,986.58 - 2,593,784.97Net Change In Market Value - 4,687,556.82 - 13,899,506.60Ending Market Value 64,893,280.80 64,893,280.80
MARKET VALUE RECONCILIATION
25 Cash And Equivalents 15,770.60 0.02
U.S. Government Issues 42,844,583.30 66.02Corporate Issues 15,357,359.96 23.67Municipal Issues 6,473,940.30 9.98Accrued Income 201,626.64 0.31PENINSULA CLEAN ENERGY - PFM Page 5 of 51 Period from January 1, 2022 to March 31, 2022
03/31/2022 % OF
ASSETS MARKET VALUE MARKET
Total Assets 64,691,654.16 99.69Grand Total 64,893,280.80 100.00
ASSET SUMMARY
BONDS 99.67%
26