Audit & Finance Committee Meeting
December 11, 2023
Staff Report
Peninsula Clean Energy
Staff Report
Investment Management Update
o Chandler – Account established, transferred holdings from First Republic o CAMP – Account established, awaiting funding
o First Republic Investment Management – Terminated account o Schwab and Fidelity – Notified of pending termination and closure Expect to fund all new accounts and close old accounts prior to December 31 Cost of Service Study Update
o Nearly complete on initial phase of model
o Will result in rough/broad estimates
o Next steps: Continue research and prepare initial presentation for Audit & Finance Committee in calendar Q1
FY 2023-2024
Q1'23 Financial Review
July 1, 2023 through September 30, 2023
Peninsula Clean Energy
• Q1’24 load 3.9% below budget
• Most of shortfall in Residential and occurred in September • September was particularly cool, especially relative to prior years 5 Customer Load
(in kWh) Actual Budget Variance Variance (%)
Residential 321,269,687 346,457,035 (25,187,348) -7.3%
Commercial and Industrial 517,672,294 526,258,402 (8,586,108) -1.6% Total 838,941,981 872,715,438 (33,773,456) -3.9%
Year-to-date Base load as of September 2023
Peninsula Clean Energy
Revenue – Quarterly Trend
6 • Q1’24 revenue $3.0 million (-2.2%) below
Budget
• Majority of shortfall due to September
usage
• July/August combined in-line with
budget
• Q1’24 revenue $19.0 million (+17%) above
prior year, mostly due to higher rates
Actual Budget Var Fav/(Unf) Var Fav/(Unf) %
Q1-FY 2022/2023 $114.0 $120.0 ($6.0) -5.0%
Q2-FY 2022/2023 $101.2 $100.6 $0.6 0.6%
Q3-FY 2022/2023 $107.1 $72.1 $35.1 48.6%
Q4-FY 2022/2023 $106.4 $75.1 $31.3 41.6%
Total YTD 2022/2023 $428.8 $367.8 $61.0 16.6%
Q1-FY 2023/2024 $133.0 $136.0 ($3.0) -2.2%
Revenue vs. Budget (in millions)
Peninsula Clean Energy 7
Revenue – Monthly Trend
Actual Budget Var Fav/(Unf) Var Fav/(Unf) %
Sep-22 $41.7 $39.7 $2.0 5.1%
Oct-22 $32.4 $33.8 ($1.4) -4.2%
Nov-22 $33.8 $31.6 $2.2 7.1%
Dec-22 $35.0 $35.2 ($0.2) -0.5%
Jan-23 $34.9 $26.6 $8.3 31.2%
Feb-23 $35.2 $23.2 $12.0 51.9%
Mar-23 $37.1 $22.3 $14.8 66.2%
Apr-23 $32.0 $20.0 $12.1 60.4%
May-23 $34.6 $24.0 $10.6 44.1%
Jun-23 $39.8 $31.2 $8.7 27.8%
Jul-23 $42.8 $44.2 ($1.3) -3.0%
Aug-23 $48.1 $46.5 $1.6 3.5%
Sep-23 $42.0 $45.3 ($3.3) -7.3%
Revenue Comparison vs. Budget (in millions)
Peninsula Clean Energy
Cost of Energy – Quarterly Trend
8 • Q1’24 Cost of Energy $3.3 million (3.6%)
above Budget, despite lower load
• Lower generation volume (compared
to Budget), which in combination with
lower market prices due to a mild
summer, resulted in lower
credits/revenue from our resources
• Higher congestion costs, especially
during mid-day hours
• Resource Adequacy (RA) costs in-line with Budget, but expected to be above Budget for full fiscal year
(~$15 million)
Actual Budget Var Fav/(Unf) Var Fav/(Unf) %
Q1-FY 2022/2023 $84.9 $77.3 ($7.6) -9.8%
Q2-FY 2022/2023 $71.6 $66.3 ($5.3) -8.0%
Q3-FY 2022/2023 $51.3 $58.2 $6.9 11.9%
Q4-FY 2022/2023 $57.4 $62.4 $5.0 8.0%
Total YTD 2022/2023 $265.2 $264.2 ($1.0) -0.4%
Q1-FY 2023/2024 $93.8 $90.5 ($3.3) -3.6%
Cost of Energy vs. Budget (in millions)
Peninsula Clean Energy 9
Cost of Energy – Monthly Trend
Actual Budget Var Fav/(Unf) Var Fav/(Unf) %
Sep-22 $36.1 $26.7 ($9.4) -35.2%
Oct-22 $19.1 $21.9 $2.8 12.8%
Nov-22 $21.1 $21.5 $0.5 2.2%
Dec-22 $31.4 $22.8 ($8.6) -37.6%
Jan-23 $16.3 $19.8 $3.5 17.5%
Feb-23 $17.6 $18.4 $0.7 4.0%
Mar-23 $17.3 $20.0 $2.7 13.7%
Apr-23 $19.1 $19.3 $0.1 0.7%
May-23 $19.9 $21.4 $1.5 7.0%
Jun-23 $18.4 $21.8 $3.4 15.4%
Jul-23 $29.2 $29.0 ($0.2) -0.7%
Aug-23 $37.3 $34.0 ($3.2) -9.5%
Sep-23 $27.3 $27.5 $0.2 0.7%
Cost of Energy Comparison vs. Budget (in millions)
Peninsula Clean Energy
Actual Budget Variance
Revenues $132,967,774 $135,954,525 ($2,986,750)
Cost of Energy 93,757,220 90,481,836 (3,275,384)
Other Opex 7,852,198 10,371,144 2,518,947
Nonoperating Income/(Expense) 1,882,920 161,298 1,721,622 Change in Net Position $33,241,276 $35,262,842 ($2,021,566) YTD 2024 YTD 2023 Variance
Revenues $132,967,774 $113,968,259 $18,999,515
Cost of Energy 93,757,220 84,875,611 (8,881,609)
Other Opex 7,852,198 5,441,460 (2,410,738)
Nonoperating Income/(Expense) 1,882,920 (2,126,486) 4,009,406 Change in Net Position $33,241,276 $21,524,702 $11,716,574 Year-to-Date vs Budget
Year-over-Year Comparison (YTD)
Change in Net Position (CINP)
10 • Q1’24 CINP $33.2 million:
• $2.0 million below Budget, yet well
above last year
• Q1’24 Operating Expenses:
• Continues to be below Budget partly
due to timing
• Significantly higher than last year
largely due to expansion of customer
rebates and other program incentives
• Nonoperating Income favorable due to
interest income (higher rates)
Peninsula Clean Energy 11
Detailed Financial Statement
Actual Budget Var Fav/(Unf)
OPERATING REVENUES
Electricity sales, net 132,199,193 135,178,222 (2,979,030) Green electricity premium 768,582 776,302 (7,721)
Total Operating Revenue 132,967,774 135,954,525 (2,986,750)
OPERATING EXPENSES
Cost of energy 93,757,220 90,481,836 (3,275,384)
Staff compensation 2,166,968 2,798,200 631,232
Data manager 884,790 967,788 82,998
Service fees - PG&E 330,166 350,000 19,834
Consultants & professional services 323,300 637,912 314,612 Legal 185,456 402,640 217,183
Communications and noticing 512,808 901,710 388,902
General and administrative 668,534 1,107,395 438,861
Community Energy Programs 2,761,705 3,181,500 419,795
Depreciation 18,470 24,000 5,530
Total Operating Expenses 101,609,418 100,852,980 (756,437) Operating Income 31,358,356 35,101,544 (3,743,188)
Nonoperating Income/(Expense) 1,882,920 161,298 1,721,622 CHANGE IN NET POSITION 33,241,276 35,262,842 (2,021,566) Quarter Ending September 2023
Peninsula Clean Energy
Cash Reserves – Days Cash on Hand (DCOH)
12 • DCOH of 263 greater than policy (180)
• Note that DCOH typically lower in Q1
due to higher quarterly expenses
• Surplus Funds Committee recommended
distribution of $68 million across various
customer programs
• $12 million rebates to CARE/FERA
customers to be distributed by end of
calendar year
9/30/2023
Total Cash/ Investments $293,675,669
Days Cash on Hand 263
Approved Reserve Policy (Days Cash on Hand) 180
Operating Reserve Requirement (180 Days) $200,985,662
Cash in Excess of Current Reserve Policy $92,690,008
Peninsula Clean Energy
Cash and Investment Summary – Quarterly Trend
13 Investment Manager balances as
of 9/30/2023:
• PFM = $64.5 MM
• FRB = $60.2 MM
Note: $14.7 MM of cash is on deposit with CAISO and not reflected in this summary 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023
Investment Account - US Bank (Combined PFM/FRB)
Cash & Equivalents 2,561,110 184,866 284,672 505,766 191,771 Accrued Income 487,221 502,759 592,377 568,609 621,047
Fixed Income 118,534,373 122,214,235 124,083,617 123,279,696 123,836,170 Investment Account 121,582,704 122,901,860 124,960,666 124,354,070 124,648,988 Other Accounts (Unrestricted)
Unrestricted - Wilmington LockBox 8,629,298 9,255,756 46,206,759 62,335 0 Operating Account - First Republic 13,332,832 17,476,093 19,568,740 12,913,309 10,518,642 Savings Account - First Republic 678,657 36,540,546 1,908,497 8,497 71,346 PG&E Deposit - First Republic 0 0 9,455,054 19,460,122 29,633,492 Fidelity MMA 0 0 20,029,063 50,529,226 71,361,961
Schwab MMA 0 0 0 46,743,235 57,438,668
Other Accounts 2,800 2,800 (1,300) 2,800 2,572
Other Accounts (Unrestricted) 22,643,588 63,275,194 97,166,813 129,719,523 169,026,681 Total Cash $144,226,292 $186,177,054 $222,127,480 $254,073,593 $293,675,669 Adjournment