Audit & Finance Committee Meeting
May 16, 2023
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
• Regular Agenda
Chair Report
Staff Report
Peninsula Clean Energy
Staff Report
• Banking Update
o Wilmington Account closed – funds transferred to Schwab • Insurance Update
o Policies renewed and invoices in process
Appointment of Audit and Finance
Committee Chair
FY 2022-2023 Q3 Financial Report
July 1, 2022 through March 31, 2023
Peninsula Clean Energy
FY 2022-2023 Year-to-Date Actual vs. Budget
Load Performance
• Total customer load is running near Budget all year
o Year-to-date is 0.6% below budget
o Q3 was 1.0% above Budget
8 Year-to-date Base load as of March 2023
(in kWh) Actual Budget Variance Variance as % Budget
Residential 1,150,164,839 1,185,165,159 (35,000,319) -3.0% Commercial and Industrial 1,482,588,614 1,462,312,679 20,275,935 1.4% Total 2,632,753,453 2,647,477,837 (14,724,384) -0.6%
Peninsula Clean Energy
Revenue – Quarterly Trend
9 Quarterly
• Q3 revenues were $35.1 MM above
Budget
• Offsetting earlier below-Budget
performance
• Current PCE customer rates
increased by approximately 50%
over prior rates
• 15% increase in PG&E rates
• 90% decrease in PCIA rates
Revenue by Quarter as of Mar 31,2023 March-23
Quarter
Actual Budget Var Fav/(Unf)
Q1-FY 2021/2022 $58.4 $61.0 ($2.6)
Q2-FY 2021/2022 $45.1 $52.5 ($7.5)
Q3-FY 2021/2022 $43.8 $50.3 ($6.5)
Q4-FY 2021/2022 $92.0 $58.4 $33.6
Total YTD 2021/2022 $239.2 $222.2 $17.0
Q1-FY 2022/2023 $114.0 $120.0 ($6.0)
Q2-FY 2022/2023 $101.2 $100.6 $0.6
Q3-FY 2022/2023 $107.1 $72.1 $35.1
Total YTD FY22/23 $322.3 $292.6 $29.7
Revenue vs Budget
Peninsula Clean Energy 10
Revenue (Last 13 months) March-23
Month
Actual Budget Var Fav/(Unf)
Mar-22 $14.7 $16.8 ($2.1)
Apr-22 $26.1 $15.5 $10.7
May-22 $29.5 $19.6 $9.9
Jun-22 $36.3 $23.3 $13.0
Jul-22 $35.2 $39.2 ($3.9)
Aug-22 $37.0 $41.1 ($4.1)
Sep-22 $41.7 $39.7 $2.0
Oct-22 $32.4 $33.8 ($1.4)
Nov-22 $33.8 $31.6 $2.2
Dec-22 $35.0 $35.2 ($0.2)
Jan-23 $34.9 $26.6 $8.3
Feb-23 $35.2 $23.2 $12.0
Mar-23 $37.1 $22.3 $14.8
Revenue Comparison vs Budget (in Millions)
Revenue – Monthly Trend
Peninsula Clean Energy
Cost of Energy – Quarterly Trend
11 Quarterly
• Q3 Cost of Energy was $6.9 MM
below Budget
• Despite slightly higher load
than Budget
• High cost of energy resulted in
significantly positive hedge
positions that were contracted
in earlier quarters
Cost of Energy by Quarter as of Mar 31,2023 March-23
Quarter
Actual Budget Var Fav/(Unf)
Q1-FY 2021/2022 $56.5 $57.6 $1.1
Q2-FY 2021/2022 $51.1 $53.9 $2.8
Q3-FY 2021/2022 $56.2 $52.9 ($3.4)
Q4-FY 2021/2022 $62.8 $52.3 ($10.5)
Total YTD 2021/2022 $226.7 $216.7 ($10.0)
Q1-FY 2022/2023 $84.9 $77.3 ($7.6)
Q2-FY 2022/2023 $71.6 $66.3 ($5.3)
Q3-FY 2022/2023 $51.3 $58.2 $6.9
Total YTD FY22/23 $207.8 $201.8 ($6.0)
Cost of Energy vs. Budget
Peninsula Clean Energy 12
Cost of Energy (Last 13 months) March-23
Month
Actual Budget Var Fav/(Unf)
Mar-22 $18.4 $16.9 ($1.5)
Apr-22 $19.5 $16.5 ($2.9)
May-22 $19.8 $17.6 ($2.2)
Jun-22 $23.6 $18.2 ($5.4)
Jul-22 $23.1 $23.7 $0.6
Aug-22 $25.7 $26.9 $1.2
Sep-22 $36.1 $26.7 ($9.4)
Oct-22 $19.1 $21.9 $2.8
Nov-22 $21.1 $21.5 $0.5
Dec-22 $31.4 $22.8 ($8.6)
Jan-23 $16.3 $19.8 $3.5
Feb-23 $17.6 $18.4 $0.7
Mar-23 $17.3 $20.0 $2.7
Revenue Comparison vs Budget (in Millions)
Cost of Energy – Monthly Trend
Peninsula Clean Energy
FY 2022-23 Q3 Financial Performance – Year to Date Actual vs. Budget 13 Actual Budget Var Fav/ (Unf) Actual Budget Var Fav/ (Unf)
OPERATING REVENUES
Electricity Sales, net 106,371,359 71,348,228 35,023,131 320,016,386 290,490,946 29,525,440 Green electricity premium 760,124 723,609 36,515 2,296,814 2,146,441 150,373 Total Operating Revenue 107,131,483 72,071,837 35,059,646 322,313,200 292,637,387 29,675,813
OPERATING EXPENSES
Cost of energy 51,256,411 58,193,387 6,936,976 207,764,061 201,771,798 (5,992,262) Staff compensation 2,088,010 2,145,805 57,795 5,792,783 6,437,416 644,633 Data Manager 955,618 900,000 (55,618) 2,719,069 2,700,000 (19,069) Service Fees - PG&E 330,268 337,500 7,232 990,818 1,012,500 21,682 Consultants & Professional Se 186,649 286,360 99,711 710,787 1,115,454 404,666 Legal 290,495 368,500 78,005 988,711 1,105,500 116,789
Communications and Noticin 459,335 719,677 260,342 1,048,517 1,948,531 900,014 General and Administrative 532,225 589,524 91,862 1,665,212 1,786,500 956,834 Community Energy Programs 2,462,318 2,160,000 (302,318) 4,409,826 6,480,000 2,070,174 Depreciation 18,618 24,000 5,382 56,765 72,000 15,235
Total Operating Expenses 58,579,947 65,724,753 7,179,368 226,146,549 224,429,699 (881,304) Operating Income (Loss) 48,551,535 6,347,083 42,204,452 96,166,651 68,207,688 27,958,963 Total Nonoperating Income/(Ex 2,515,759 150,000 2,365,759 1,967,412 450,000 1,517,412 CHANGE IN NET POSITION 51,067,294 6,497,083 44,570,211 98,134,063 68,657,688 29,476,375 Current Quarter Year-to-date
Quarter ending March 2023
Peninsula Clean Energy
Change in Net Position (Year-to-date)
14 YTD
• CINP is $98.1 MM, well above the
Budget level
Compared to Prior Year
• YTD of $98.1 MM is significantly
better than $35.1 MM loss in the prior
year
• Significant increases in rates more
than offset higher energy costs
Change in Net Position - YTD as of March 2023 March-23
Actual Budget Variance
Revenues $ 322,313,200 $ 292,637,387 $ 29,675,813
Cost of Energy 207,764,061 201,771,798 (5,992,262)
Other Opex 18,382,488 22,657,901 4,275,412
Non-Opex/ (Income) 1,967,412 450,000 1,517,412
Net Position $ 98,134,063 $ 68,657,688 $ 29,476,375
Change in Net Position - Year-over-year as of March 2023 YTD 2022-23 YTD 2021-22 Variance
Revenues $ 322,313,200 $ 147,248,296 $ 175,064,904
Cost of Energy 207,764,061 163,831,443 (43,932,617)
Other Opex 18,382,488 14,016,824 (4,365,664)
Non-Opex/ (Income) 1,967,412 (4,515,493) 6,482,905
Net Position $ 98,134,063 $ (35,115,464) $ 133,249,527
Accounts
Year-over-year Comparison (YTD)
Accounts
Year-to-date vs Budget
Peninsula Clean Energy
Cash Reserves – Days Cash on Hand
15 Cash Reserves - Days Cash on Hand
Actual March 31,
2023
Forecast June 30,
2023
Total Cash/ Investments Balance $ 222,127,480 $ 244,006,205 Restricted by Term/ Covenant $0 $0
Unrestricted Cash (per Approved Reserve Policy) $ 222,127,480 $ 244,006,205 Days Cash on Hand (per Approved Reserve Policy) 239 304 Approved Reserve Policy (Days Cash on Hand) 180 180
Unrestricted Operating Reserve Requirement (180 Days) $ 167,515,962 $ 144,693,144 Unrestricted Cash in Excess of Current Reserve Policy $ 54,611,517 $ 99,313,061 Peninsula Clean Energy
Cash and Investment Summary – Quarterly Trend
16 Investment Manager balances at
03/31/23:
• PFM = $64.7 MM
• FRB = $60.2 MM
Note: $14.7 MM of cash is on deposit with CAISO and not reflected in this summary Cash and Investment Summary - Quarterly Trend
Jun-21 Jun-22 Sep-22 Dec-22 Mar-23
Investment Account - US Bank (Combined PFM/FRB)
Asset Summary
Cash & Equivalents $ 2,785,233 $ 181,685 $ 2,561,110 $ 184,866 $ 284,672 Accrued Income $ - $ - $ -
Fixed Income $ 154,468,373 $ 125,734,015 $ 119,021,594 $ 122,716,994 $ 124,675,994 Ending Balance $ 157,253,606 $ 125,915,700 $ 121,582,704 $ 122,901,860 $ 124,960,666 Other Accounts (Unrestricted)
Unrestricted - Wilmington LockB $ 3,223,532 $ 8,133,146 $ 8,629,298 $ 9,255,756 $ 46,206,759 Operating Account - First Repub $ 4,340,702 $ 1,365,681 $ 13,332,832 $ 17,476,093 $ 29,023,794 Savings Account - First Republic $ 1,354,942 $ 74,032 $ 678,657 $ 36,540,546 $ 1,908,497 Fidelity MMA $ 20,029,063
Other Accounts $ - $ 22,908 $ 2,800 $ 2,800 $ (1,300)
Subtotal Unrestricted (non-In $ 8,919,176 $ 9,595,766 $ 22,643,588 $ 63,275,194 $ 97,166,813 Other Accounts (Restricted)
Restricted Cash - Wilmington Lo $ 500,000 $ - $ - $ - $ - Restricted Cash - First Republic $ 3,949,194 $ - $ - $ - $ - Subtotal Restricted (non-Inve $ 4,449,194 $ - $ - $ - $ - Total Cash $ 170,621,976 $ 135,511,466 $ 144,226,292 $ 186,177,054 $ 222,127,480 Unrestricted Cash $ 166,172,782 $ 135,511,466 $ 144,226,292 $ 186,177,054 $ 222,127,480 Peninsula Clean Energy
Cash Balances – May 5, 2023
17 As of May 5, 2023
First Republic $15.4 million
Fidelity $50.1 million
Wilmington $46.4 million
US Bank $125.7 million
Schwab -0-
Total $237.6 million
Peninsula Clean Energy
Financial Statement – Forecast Full Year FY2023
18 End of year forecast for
• CINP - $140.0 MM, well above
Budgeted level
• DCOH – 304 days
2023 2023 2023
Budget Forecast Variance - Fav/(Unf)
OPERATING REVENUES
Electricity Sales, net 364,961,141 428,282,058 63,320,918 Green electricity premium 2,822,550 2,972,923 150,373
perating Revenues 367,783,691 431,254,981 63,471,290
OPERATING EXPENSES
Cost of energy 264,208,440 269,342,688 (5,134,249)
Staff compensation 8,583,221 7,373,531 1,209,691
Data Manager 3,600,000 3,574,069 25,931
Service Fees - PG&E 1,350,000 1,305,818 44,182
Consultants & Professional Services 1,431,813 1,044,479 387,334 Legal 1,474,000 1,383,211 90,789
Communications and Noticing 2,686,208 1,524,403 1,161,805 General and Administrative 2,359,806 2,233,614 126,192
Community Energy Programs 8,640,000 5,542,963 3,097,037 Depreciation 96,000 80,765 15,235
Total Operating Expenses 294,429,488 293,405,542 1,023,946 Operating Income (Loss) 73,354,203 137,849,439 64,495,237 NON-OPERATING REVENUES (EXP.)
Total Nonoperating Income/(Expense) 600,000 2,192,412 1,592,412 CHANGE IN NET POSITION 73,954,203 140,041,851 66,087,648 Net Position at the beginning of period 174,211,272 167,670,734 (6,540,538) Net Position at the end of period 248,165,475 307,712,585 59,547,110 Total Cash & Cash Equivalents 244,006,205
Unrestricted Cash Days on Hand 304
Fiscal Year
FY 2023-2024
(July 1, 2023 – June 30, 2024)
Budget Review
Initial Draft
Peninsula Clean Energy
Schedule – Budget Review and Approval
20 • May 16, 2023 – Review Initial Draft Budget with Audit & Finance Committee • May 25, 2023 – Review Initial Draft Budget with Board of Directors • June 12, 2023 – Review Revised Draft Budget with Audit & Finance Committee • June 12, 2023 – Review Revised Draft Budget with Executive Committee • June 22, 2023 – Approve Final Budget by Board of Directors Peninsula Clean Energy
Draft Budget FY2023-2024 – Key Assumptions
21 PG&E Generation Rates – Slight decline in rates for next 4 years o January 1, 2024 – Increase 1%
PCIA Rates – Continuing decrease in rates as of January 1, 2024 o January 1, 2024
o San Mateo – Drop to $0.00 from already low rate
o Los Banos – Drop to $0.00 from already low rate
o After 2024
o Significant increases for next 4 years, near to rates of 2022, but still not approaching rates of 2021 Customer Rates to PCE – Relatively flat for next 3 years, then lower in 2027 and 2028 (but still well above low year of 2021) Cost of Energy –
o Budgeted at $311 million - Increase of $39 million (14%) over FY23 forecast o Resource Adequacy cost projection accounts for nearly $31 million of the increase o Overall budget includes 2 conservatism contingencies
o Energy Cost Volatility = $15 million/year
o 99% of 24x7 Hourly Renewable Project Delays = $56 million over 5 years; $770K in FY24 o To achieve this by 2027, requires signing of 15 projects on detailed planned timeline – delays would result in additional REC and RA costs and more market volatility exposure
o Total cost is 9% higher than FY23 forecast without conservatism adders Peninsula Clean Energy
Revenue Assumptions
22 2021 2022 2023 2024 2025 2026 2027 2028
Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Example Residential Rate: PG&E E-1 Rate
San Mateo County 0.11314 0.15152 0.15614 0.15737 0.16119 0.15934 0.14490 0.13533 YoY % Change 33.93% 3.05% 0.79% 2.42% -1.15% -9.06% -6.61% Los Banos 0.15152 0.15614 0.15737 0.16119 0.15934 0.14490 0.13533 YoY % Change 3.05% 0.79% 2.42% -1.15% -9.06% -6.61%
Example Business Rate: PG&E B10-S Summer Off-Peak
San Mateo County 0.10299 0.13999 0.14359 0.14472 0.14823 0.14653 0.13325 0.12445 YoY % Change 35.93% 2.57% 0.79% 2.42% -1.15% -9.06% -6.61% Los Banos 0.13999 0.14359 0.14472 0.14823 0.14653 0.13325 0.12445 YoY % Change 2.57% 0.79% 2.42% -1.15% -9.06% -6.61%
Calendar Year
PG&E Generation Rate Assumptions
Peninsula Clean Energy
Revenue Assumptions
23 2021 2022 2023 2024 2025 2026 2027 2028
Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Example Residential Rate: PG&E E-1 Rate
San Mateo County 0.04579 0.02010 0.00335 0.00000 0.00463 0.00932 0.01767 0.02331 YoY % Change -56.10% -83.33% -100.00% n/a 101.44% 89.52% 31.96% *
Los Banos 0.02572 0.00335 0.00000 0.00463 0.00316 0.01168 0.01800 YoY % Change -86.98% -100.00% n/a -31.72% 269.65% 54.09% *
Example Business Rate: PG&E B10-S Summer Off-Peak
San Mateo County 0.04764 0.02054 0.00338 0.00000 0.00467 0.00941 0.01783 0.02352 YoY % Change -56.88% -83.54% -100.00% n/a 101.44% 89.52% 31.96% *
Los Banos 0.02594 0.00338 0.00000 0.00467 0.00319 0.01179 0.01816 YoY % Change -86.97% -100.00% n/a -31.72% 269.65% 54.09% *
* Note - PCIA is expected to be negative. We have assumed zero.
PG&E PCIA Assumptions
Calendar Year
Peninsula Clean Energy
Revenue Assumptions
24 2021 2022 2023 2024 2025 2026 2027 2028
Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Example Residential Rate: PG&E E-1 Rate
San Mateo County 0.06120 0.12057 0.14388 0.14841 0.14740 0.14095 0.11889 0.10415 YoY % Change 97.02% 19.34% 3.15% -0.68% -4.38% -15.65% -12.40% *
Los Banos 0.11752 0.14388 0.14841 0.14740 0.14711 0.12488 0.10946 YoY % Change 22.43% 3.15% -0.68% -0.20% -15.11% -12.35% *
Example Business Rate: PG&E B10-S Summer Off-Peak
San Mateo County 0.04970 0.10895 0.13191 0.13637 0.13503 0.12867 0.10764 0.09359 YoY % Change 119.23% 21.08% 3.38% -0.98% -4.71% -16.34% -13.06% *
Los Banos 0.10544 0.13191 0.13637 0.13503 0.13489 0.11368 0.09895 YoY % Change 25.10% 3.38% -0.98% -0.10% -15.72% -12.96% PCE Customer Generation Rate Assumptions
Calendar Year
Peninsula Clean Energy
Cost of Energy Assumptions
25 • 100% Renewable Power by end of CY2025
• 99% Renewable Power on an Hourly Basis by end of CY2027 • Forward Price Curve from third-party provider based on March 22, 2023 pricing – details by nodes for each PPA and hedge contract • RA purchases at market prices in all months for each calendar year • EV Adoption rates add ~50 to 100GWh/year (1% to 3% of load) 2024 2025 2026 2027 2028
Forecast Forecast Forecast Forecast Forecast
Loss Adjusted Load 3,721,576,759 3,775,401,772 3,857,638,693 3,993,193,610 4,154,575,319 Calendar Year
Load Assumptions (MWh)
Peninsula Clean Energy
Staffing Assumptions
26 • Current 38 Positions
• FY24 Budget assumes adding:
o Account Services - Account Services Specialist (replacement) o Account Services - Rates Manager/Finance
o Reg - Leg - Junior Regulatory Analyst
o Marketing - Community Relations Specialist
o Programs - Associate Program Manager
o Data and Technology - Data Analyst
o Data and Technology - IT Analyst/Specialist
o Power Resource Specialist/ Analyst
o Senior Manager Local Generation
o HR Admin Assistance
Peninsula Clean Energy
Other Budgeting Assumptions
27 • Solar and Storage on Public Buildings
o Capital Outlay
o PV1 - $7.4 million in FY24
o PV2 - $43.0 million in FY25
o Investment Tax Credit – 30-35%
o PV1 - $2.2 million in FY26
o PV2 - $15.0 million in FY27
o Repayment based on usage over 20-year period
Peninsula Clean Energy
Draft Budget FY24 – Summary
28 2023 2023 2023 2024
Budget Forecast Variance - Fav/(Unf) Draft Budget
OPERATING REVENUES
Electricity Sales, net 364,961,141 428,282,058 63,320,918 471,670,872 Green electricity premium 2,822,550 2,972,923 150,373 2,953,162 perating Revenues 367,783,691 431,254,981 63,471,290 474,624,034
OPERATING EXPENSES
Cost of energy 264,208,440 269,342,688 (5,134,249) 311,261,389 Staff compensation 8,583,221 7,373,531 1,209,691 10,922,801 Data Manager 3,600,000 3,574,069 25,931 3,871,152
Service Fees - PG&E 1,350,000 1,305,818 44,182 1,400,000 Consultants & Professional Services 1,431,813 1,044,479 387,334 1,788,491 Legal 1,474,000 1,383,211 90,789 1,574,558
Communications and Noticing 2,686,208 1,524,403 1,161,805 2,850,940 General and Administrative 2,359,806 2,233,614 126,192 4,027,236 Community Energy Programs 8,640,000 5,542,963 3,097,037 11,726,000 Depreciation 96,000 80,765 15,235 234,750
Total Operating Expenses 294,429,488 293,405,542 1,023,946 349,657,317 Operating Income (Loss) 73,354,203 137,849,439 64,495,237 124,966,717 NON-OPERATING REVENUES (EXP.)
Total Nonoperating Income/(Expense) 600,000 2,192,412 1,592,412 645,192 CHANGE IN NET POSITION 73,954,203 140,041,851 66,087,648 125,611,909 Net Position at the beginning of period 174,211,272 167,670,734 (6,540,538) 300,430,872 Net Position at the end of period 248,165,475 307,712,585 59,547,110 426,042,781 Total Cash & Cash Equivalents 244,006,205 379,902,700
Unrestricted Cash Days on Hand 304 397
Fiscal Year Fiscal Year
Peninsula Clean Energy
Draft Budget FY2023-2028 – Budget Summary & 5-year Plan 2023 2024 2025 2026 2027 2028
Forecast Draft Budget Projection Projection Projection Projection
OPERATING REVENUES
Electricity Sales, net 428,282,058 471,670,872 484,233,036 482,737,236 452,054,000 402,863,671 Green electricity premium 2,972,923 2,953,162 2,961,637 2,978,004 2,994,557 3,019,185 perating Revenues 431,254,981 474,624,034 487,194,674 485,715,240 455,048,558 405,882,856
OPERATING EXPENSES
Cost of energy 269,342,688 311,261,389 383,611,464 382,474,223 344,299,885 329,946,422 Staff compensation 7,373,531 10,922,801 11,578,169 12,272,859 13,009,231 13,789,784 Data Manager 3,574,069 3,871,152 4,103,421 4,349,626 4,610,604 4,887,240 Service Fees - PG&E 1,305,818 1,400,000 1,484,000 1,573,040 1,667,422 1,767,468 Consultants & Professional Services 1,044,479 1,788,491 1,091,949 1,119,665 1,168,642 1,199,674 Legal 1,383,211 1,574,558 1,633,099 1,707,767 1,786,843 1,870,626 Communications and Noticing 1,524,403 2,850,940 2,964,912 3,048,580 3,134,757 3,223,520 General and Administrative 2,233,614 4,027,236 3,748,298 3,929,634 4,121,293 4,336,551 Community Energy Programs 5,542,963 11,726,000 20,630,000 25,781,000 30,355,000 32,935,000 Depreciation 80,765 234,750 1,062,250 2,466,694 2,616,000 2,616,000 Total Operating Expenses 293,405,542 349,657,317 431,907,562 438,723,088 406,769,676 396,572,285 Operating Income (Loss) 137,849,439 124,966,717 55,287,112 46,992,152 48,278,882 9,310,571 NON-OPERATING REVENUES (EXP.)
Total Nonoperating Income/(Expense) 2,192,412 645,192 673,580 703,218 734,160 766,463 CHANGE IN NET POSITION 140,041,851 125,611,909 55,960,692 47,695,370 49,013,041 10,077,033 Net Position at the beginning of period 167,670,734 300,430,872 426,132,781 482,188,873 529,985,368 579,105,600 Net Position at the end of period 307,712,585 426,042,781 482,093,473 529,884,244 578,998,409 589,182,634 Total Cash & Cash Equivalents 244,006,205 379,902,700 433,325,042 484,752,203 533,919,686 544,157,425 Unrestricted Cash Days on Hand 304 397 367 406 482 504
Fiscal Year Fiscal Year
Peninsula Clean Energy
Context for Discussion of Excess Funds
30 • Rates and Energy Prices have been very volatile for past 2-3 years • DCOH is projected to be 397 as of June 2024
o If the PCIA on January 2024 is the same as January 2022 (January 2021 was the highest), revenues would be approximately $30 million lower for 6-month period - $60 million for full 12- month period – DCOH for FY24 would end 31 days lower
o If energy costs are $15 million higher than budgeted, DCOH would be approx. 360 • Increase Discount
o Each additional 1% discount reduces total revenue by approx. $5 million/year o Residential – approximately 40% of benefit applied to 282,000 customers o Each 1% reduces the average Residential bill by approx. $8/year o Wide range of bills. Reduction benefit is skewed to large houses and big users o Commercial – approximately 60% of benefit applied to 30,000 customers o Each 1% reduces the average Commercial bill by approx. $100/year o Top 1,500 customers (rate class B19) would save an average of $300/year Peninsula Clean Energy
Alternatives for Excess Funds
31 1. “Extra” Reserve
o Set aside extra reserves –
o Would have no accounting impact, but would enable identification of specific reserves for specific purposes o Would be separate “restricted” reserve reducing standard DCOH calculation o Implement GASB 62
o “Moves” revenues from one period to another – effect of smoothing net position o Used by Utility companies that set rates based on net position o Also used to smooth income to satisfy bond covenants
2. $500 Refund to CARE/FERA Customers
o CARE – Total 41,044: San Mateo (35,206), Los Banos (5,838) o FERA – Total 1,526: San Mateo (1,301), Los Banos (225) o Total cost of approx. $21,285,000
o Would reduce projected DCOH to approx. 375 on June 30, 2024 Peninsula Clean Energy
Next Steps
• Some additional internal discussions to firm up specific Program budgeting and strategies
• Update to year-end FY24 forecast to reflect April 2023 financial results if available in time for June AF meeting 32 Committee Members’ Reports
Adjournment