WestLight Energy Audit and Finance Committee
August 12, 2024

Audit & Finance Committee Meeting
August 12, 2024
The meeting will begin shortly. Thank you!
Chair Report
Staff Report
Peninsula Clean Energy
Staff Report
• Prepay transaction on track for end of September, pending market conditions • Completed RFP for Prepay Supplier and engaged Goldman Sachs in June • Finalized structure and in process of assigning four PPAs for a transaction value of ~$1.1 billion
• Estimated savings of ~$6 million per year (~11%), market dependent • JP Morgan / First Republic Bank integration on May 27 • Transition challenging, but finally compete; fee waiver • Increased yield on excess cash generating ~$600k/year of interest income • Will consider possible RFP for banking services later this year 4 Q4 and FY24 Financial Review
PRELIMINARY (Subject to Audit)
Peninsula Clean Energy
(in MWh) Actual Budget Variance Var (%)
Residential 1,371,234 1,490,177 (118,943) -8.0%
Commercial & Industrial 1,976,988 2,004,261 (27,274) -1.4% Total 3,348,222 3,494,438 (146,217) -4.2%
FY24 Base Load
• FY24 load 4.2% below budget
• Mild summer and warmer winter
• Under-estimating behind the meter
generation and over-estimating EV charging
behavior
• Updated load forecasting methodology for FY25
6 Customer Load
200,000
225,000
250,000
275,000
300,000
325,000
350,000
Total Load (MWh)
Actuals Budget FY22-23 Actual
Peninsula Clean Energy
Actual Budget Fav/(Unf) 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 2022/2023 $428.8 $367.8 $61.0 16.6%
Q1-FY 2023/2024 $133.0 $136.0 ($3.0) -2.2%
Q2-FY 2023/2024 99.5 115.9 (16.3) -14.1%
Q3-FY 2023/2024 111.4 114.0 (2.6) -2.2%
Q4-FY 2023/2024 109.9 108.8 1.0 1.0%
Total FY 2023/2024 $453.8 $474.6 ($20.8) -4.4%
Variance
Revenues
7 • Q4 revenues $1 million (1%) above
budget
• Delayed damages of $4.5 million
• Offset in part by lower load
• FY24 revenues $20.8 million
(-4.4%) below budget
• $12 million CARE/FERA rebate in
December
• Lower load than budgeted
• Offset in part by non-energy
revenues
Peninsula Clean Energy
Actual Budget Fav/(Unf) 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 2022/2023 $265.2 $264.2 ($1.0) -0.4%
Q1-FY 2023/2024 $93.3 $90.5 ($2.8) -3.1%
Q2-FY 2023/2024 70.0 70.5 0.5 0.8%
Q3-FY 2023/2024 82.0 80.4 (1.6) -2.0%
Q4-FY 2023/2024 78.7 69.9 (8.8) -12.7%
Total FY 2023/2024 $324.0 $311.3 ($12.7) -4.1%
Variance
Cost of Energy
8 • Q4 cost of energy $8.8 million
(12.7%) higher than budget,
despite lower load
• Higher Resource Adequacy
(RA) costs (~$13 million),
which was expected
• Congestion costs
Peninsula Clean Energy
Actual Budget
Var
Fav/(Unf)
Var
Fav/(Unf)
Revenues $453.8 $474.6 ($20.8) -4.4%
Cost of Energy 324.0 311.3 (12.7) -4.1%
Gross Profit $129.8 $163.4 ($33.5) -20.5%
Other Opex 36.7 39.4 2.7 6.8%
Non-Operating Income 16.4 0.6 15.8 2449.2%
Change in Net Position $109.6 $124.6 ($15.0) -12.1%
FY 2024 FY 2023
Var
Fav/(Unf)
Var
Fav/(Unf)
Revenues $453.8 $428.8 $25.0 5.8%
Cost of Energy 324.0 265.2 (58.8) -22.2%
Gross Profit $129.8 $163.5 ($33.7) -20.6%
Other Opex 36.7 26.0 (10.7) -41.2%
Non-Operating Income 16.4 2.4 14.0 580.7%
Change in Net Position $109.6 $140.0 ($30.4) -21.7%
FY24 vs FY23 (in millions)
FY24 Actual vs Budget (in millions)
Change in Net Position (CINP)
9 • FY24 CINP of $109.6 million is
$15 million below budget and $30
million below FY23
• Primarily due to CARE/FERA
rebate and higher energy costs
• Offset in part by interest income
and OpEx savings
• Staff compensation below
budget by $1.1 million due to
delayed hiring
• Lower marketing, legal and
G&A expenses, offset in part
by Customer Programs
Peninsula Clean Energy
(in millions) Jun-23 Sep-23 Dec-23 Mar-24 Jun-24
First Republic / JP Morgan $32.4 $40.2 $45.7 $15.5 $16.3 Other Accounts 0.1 0.0 0.0 0.0 0.0
Cash $32.4 $40.2 $45.7 $15.5 $16.3
CAMP 0.0 0.0 90.2 141.8 163.8
PFM 64.3 64.5 106.7 107.0 107.9
Chandler (was FRB) 60.0 60.2 102.1 102.6 103.5
Fidelity 50.5 71.4 0.0 0.0 0.0
Schwab 46.7 57.4 0.2 0.0 0.0
Total Investments $221.6 $253.4 $299.3 $351.4 $375.2
Total Cash & Investments $254.1 $293.7 $345.0 $366.9 $391.6 Days Cash on Hand 319 351 370 395
Cash and Investment Summary – Quarterly Trend
10 Peninsula Clean Energy
($ in '000) 2024 2025 2026 2027 2028 2029
Actual Budget Forecast Forecast Forecast Forecast
Operating Revenues 453,805 461,693 465,087 485,877 468,199 507,085 Rate Stabilization Fund 15,000 53,000 - - -
Total Revenues 453,805 476,693 518,087 485,877 468,199 507,085 Cost of Energy 323,966 423,404 456,581 417,955 395,243 427,633 Gross Profit 129,839 53,289 61,506 67,921 72,956 79,451 Operating Expenses 36,712 57,140 67,817 72,631 69,720 82,566 Operating Income (Loss) 93,127 (3,851) (6,311) (4,710) 3,236 (3,115) Non-Operating Income 16,447 9,103 7,820 7,011 7,061 7,110 CHANGE IN NET POSITION 109,574 5,252 1,509 2,301 10,297 3,995 Cash 391,552 342,592 273,313 270,057 276,135 276,773
DCOH 395 260 191 202 218 199
11 FY24 Actual and 5-Year Forecast
Note: FY24 results exclude deferral of revenues to the Rate Stabilization Fund Cash position and DCOH
reverts to target range
over 5-year forecast
Page added to Audit & Finance
Committee presentation
Appendix
Peninsula Clean Energy 13
Detailed Financial Statement
Actual Budget Var Fav/(Unf) Actual Budget Var Fav/(Unf) Electricity Sales $103,614,315 $108,101,584 ($4,487,268) $440,996,883 $471,670,872 ($30,673,989) Non-Energy Revenues $5,531,366 $0 $5,531,366 $9,827,382 $0 $9,827,382 Green Electricity Premium 717,148 715,877 1,272 2,980,743 2,953,162 27,581 Total Revenues 109,862,829 108,817,460 1,045,369 453,805,008 474,624,034 (20,819,026) Cost of Energy 78,725,770 69,880,172 (8,845,597) 323,966,214 311,261,389 (12,704,825) Gross Profit 31,137,059 38,937,288 (7,800,228) 129,838,794 163,362,645 (33,523,851) Compensation 2,637,659 2,708,200 (110,790) 9,841,887 10,922,801 1,080,913 Data Manager 887,679 967,788 80,109 3,539,517 3,871,152 331,635 Service Fees (PG&E) 334,757 350,000 15,243 1,324,333 1,400,000 75,667 Consultants & Professional Services 500,047 354,412 (145,635) 1,951,283 1,788,491 (162,792) Legal 242,445 390,640 148,194 878,760 1,574,558 695,798 Communications & Noticing 569,887 527,510 (42,377) 2,196,219 2,850,940 654,721 General & Administrative 907,486 929,552 22,066 3,140,284 4,027,236 886,952 Community Energy Programs 3,626,183 3,181,500 (444,683) 13,754,071 12,726,000 (1,028,071) Depreciation 26,464 101,083 74,619 85,604 234,750 149,146 Operating Expenses 9,913,938 9,510,685 (403,253) 36,711,958 39,395,928 2,683,970 OPERATING INCOME 21,223,121 29,426,602 (8,203,481) 93,126,835 123,966,717 (30,839,882) Non-Operating Income 3,961,499 161,298 3,800,201 16,447,273 645,192 15,802,081 CHANGE IN NET POSITION $25,184,621 $29,587,900 ($4,403,280) $109,574,108 $124,611,909 ($15,037,801) Quarter Ending June 2024 FY 2024
Peninsula Clean Energy 14
Revenues – Monthly Trend (13 months)
Actual Budget Var Fav/(Unf) Var Fav/(Unf) %
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%
Oct-23 37.8 38.2 (0.4) -1.1%
Nov-23 35.0 36.8 (1.7) -4.7%
Dec-23 26.7 40.9 (14.2) -34.7%
Jan-24 39.3 41.9 (2.5) -6.0%
Feb-24 36.2 37.7 (1.5) -3.9%
Mar-24 35.9 34.4 1.4 4.2%
Apr-24 32.4 31.2 1.2 3.9%
May-24 34.9 33.7 1.2 3.7%
Jun-24 42.6 44.0 (1.4) -3.2%
Revenue Comparison vs. Budget (in millions)
Peninsula Clean Energy 15
Cost of Energy – Monthly Trend (13 months)
Actual Budget Var Fav/(Unf) Var Fav/(Unf) %
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%
Oct-23 25.5 24.1 (1.4) -5.7%
Nov-23 21.0 21.4 0.4 1.7%
Dec-23 23.7 25.0 1.4 5.5%
Jan-24 32.6 32.1 (0.5) -1.7%
Feb-24 24.1 25.8 1.6 6.4%
Mar-24 25.2 22.5 (2.7) -12.0%
Apr-24 16.8 20.4 3.5 17.4%
May-24 27.6 22.5 (5.1) -22.5%
Jun-24 34.3 27.0 (7.3) -27.1%
Cost of Energy Comparison vs. Budget (in millions)
Adjournment