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, February 10, 2025
8:30 am
PLEASE NOTE: This meeting will be held in a hybrid format with both in-person and Zoom participation options for members of the public;
Board members shall appear in person.
In-Person Meeting Location:
PCEA Lobby, 2075 Woodside Road, Redwood City, CA 94061
Zoom, Virtual Meeting Link:https://pencleanenergy.zoom.us/j/89514559357 Meeting ID: 895-1455-9357 Passcode: 2075 Phone: +1 (669) 444-9171
INTRODUCTION
This meeting of the Peninsula Clean Energy Audit and Finance Committee will be held at the Peninsula Clean Energy Lobby: 2075 Woodside Road, Redwood City, CA 94061 and by teleconference pursuant to California Assembly Bill 2449 and the Ralph M. Brown Act, CA Gov’t Code. Section 54950, et seq.
Members of the Committee are expected to attend the meeting in person and should reach out to our General Counsel for Peninsula Clean Energy, Jennifer Stalzer, with questions or accommodation information ([email protected]). For information regarding how to participate in the meeting remotely, please refer to the instructions at the end of the agenda. In addition, a video broadcast of the meeting can be viewed at https://www.peninsulacleanenergy.com/Audit and Finance-committee following the meeting.
Public Participation
The PCEA Audit and Finance Committee meeting may be accessed through Zoom online at https://pencleanenergy.zoom.us/j/89514559357. The meeting ID is: 895-1455-9357 and the passcode is:
2075. The meeting may also be accessed via telephone by dialing +1(669) 444-9171. Enter the webinar ID: 895-1455-9357, then press #. (Find your local number:
https://pencleanenergy.zoom.us/u/kTlH1Ocod). Peninsula Clean Energy uses best efforts to ensure audio and visual clarity and connectivity. However, it cannot guarantee the connection quality.
Members of the public can also attend this meeting physically at the Peninsula Clean Energy Lobby at 2075 Woodside Road, Redwood City, CA 94061.
Written public comments may be emailed to PCEA Board Clerk, Nelly Wogberg ([email protected]) and such written comments should indicate the specific agenda item on which the member of the public is commenting.
Spoken public comments will be accepted during the meeting in the Board Room(s) or remotely through Zoom at the option of the speaker. Please use the “Raise Your Hand” function in the Zoom platform, or press *6 if you phoned into the meeting, to indicate that you would like to provide comment.
Please note that Peninsula Clean Energy Audit and Finance Committee meetings are a limited public 1 1. Approval of Minutes from the November 12, 2024 Audit and Finance Committee Meeting
2. Chair Report
3. Staff Report
4. Review of Peninsula Clean Energy's Cash Investment Performance and Market Overview (Discussion)
5. Q2 Fiscal Year 2024-2025 Financial Report (Quarter Ending December 31, 2024) (Discussion)
6. Committee Members' Reports (Discussion)
forum, and all public comment must relate to something that is within the subject matter jurisdiction of the Committee. If comments do not relate to the subject matter jurisdiction of the Committee, we will stop the comment and move on to the next speaker. General Counsel will assist in identifying comments that are not related to the subject matter jurisdiction of the Committee.
ADA Requests
Individuals who require 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, should contact Nelly Wogberg, Board Clerk, by 10:00 a.m. on the day before the meeting at ([email protected]). Notification in advance of the meeting will enable PCEA to make reasonable arrangements to ensure accessibility to this meeting, the materials related to it, and your ability to comment.
Closed Captioning is available for all PCEA Board meetings. While watching the video broadcast in Zoom, please enable captioning.
CALL TO ORDER / ROLL CALL / APPROVE TELECONFERENCE PARTICIPATION UNDER AB 2449
This item is reserved to approve teleconference participation request for this meeting by Director pursuant to Brown Act revisions of AB 2449 due to an emergency circumstance to be briefly described.
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
REGULAR AGENDA
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 Website at:
https://www.peninsulacleanenergy.com.
JOINING INSTRUCTIONS
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
Videoconference with Computer Audio - see Option 1 below Videoconference with Phone Call Audio - see Option 2 below 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:
From your computer, click on the following link that is also included in the meeting calendar invitation: https://pencleanenergy.zoom.us/j/89514559357 The Zoom application will open on its own or you will be instructed to open Zoom.
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.
Click the blue, "Join with Computer Audio" button.
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.
Option 2 Videoconference with Phone Call Audio
From your computer, click on the following link that is also included in the Meeting Calendar Invitation: https://pencleanenergy.zoom.us/j/89514559357 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.
Please dial +1 (669) 444-9171.
You will be instructed to enter the meeting ID: 895-1455-9357 followed by #.
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.
After a few seconds, your phone audio should be connected to the Zoom application on your computer.
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:
Please dial +1 (669) 444-9171.
You will be instructed to enter the meeting ID: 895-1455-9357 followed by #.
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.
You will be instructed to enter the meeting passcode 2075 followed by #. 4 DATE: February 7, 2025
MEETING DATE: February 10, 2025
VOTE REQUIRED: Majority Vote
TO: Honorable Peninsula Clean Energy Authority Audit and Finance Committee FROM: Nelly Wogberg, Board Clerk
SUBJECT: Approval of Minutes from the November 12, 2024 Audit and Finance Committee Meeting
Item No. 1
PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
RECOMMENDATION
Approval of Minutes from the November 12, 2024 Audit and Finance Committee Meeting ATTACHMENTS:
11-12-2024 Draft Minutes.pdf
5 Regular Meeting of the Audit and Finance Committee of the Peninsula Clean Energy Authority (PCEA)
Minutes
Monday, November 12, 2024
8:30 a.m.
Zoom Video Conference and Teleconference
CALL TO ORDER
Meeting was called to order at 8:38 a.m. in virtual teleconference, in the Peninsula Clean Energy Authority lobby and in Los Banos City Hall Conference Room B.
ROLL CALL
Participating:
Tom McCune, Belmont
Donna Colson, Burlingame, Chair
Carlos Romero, East Palo Alto
Leslie Ragsdale, Hillsborough
Absent:
Paul Llanez, Los Banos
A quorum was established.
PUBLIC COMMENT: None
ACTION TO SET AGENDA AND TO APPROVE CONSENT AGENDA ITEMS Public Comment: None
MOTION: Director Colson moved, seconded by Director Ragsdale to set the Agenda and approve Agenda Item Number 1.
1. Approval of the 2025 Audit and Finance Committee Meeting Schedule
2. Approval of Minutes from the October 15, 2024 Audit and Finance Committee Meeting MOTION PASSED: 4-0 (Absent: Los Banos)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
Belmont Director McCune X
Burlingame Director Colson X
East Palo Alto Director Romero X
Hillsborough Director Ragsdale X
Los Banos Director Llanez X
Totals 4 1
6 REGULAR AGENDA
3. Chair Report
Carlos Romero, Chair of the Audit and Finance Committee gave a brief chair report.
4. Staff Report
Nick Bijur, Chief Financial Officer, provided an update to the Committee.
5. Q1 Fiscal Year 2025 Financial Report (Quarter Ending September 30, 2024) (Discussion) Nick Bijur, Chief Financial Officer, provided an overview of the Q1 Fiscal Year 2025 Financial Report.
Public Comment: None
6. Committee Members’ Reports
Leslie Ragsdale made a brief committee member report.
ADJOURNMENT
Meeting was adjourned at 9:34 a.m.
7 DATE: February 7, 2025
MEETING DATE: February 10, 2025
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Audit and Finance Committee FROM: Nick Bijur, Chief financial Officer
SUBJECT: Review of Peninsula Clean Energy's Cash Investment Performance and Market Overview (Discussion)
Item No. 4
PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
RECOMMENDATION
Receive report and provide any feedback. This is a discussion item only.
BACKGROUND
Justin Resuello and Monique Spyke from PFM Asset Management will provide an overview of current economic and financial markets, as well as the performance of PCE's investment portfolio managed by PFM.
8 DATE: February 7, 2025
MEETING DATE: February 10, 2025
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Audit and Finance Committee FROM: Nicholas Bijur, Chief Financial Officer
SUBJECT: Q2 Fiscal Year 2024-2025 Financial Report (Quarter Ending December 31, 2024) (Discussion)
Item No. 5
PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
RECOMMENDATION
Receive report and provide any feedback. This is a discussion item only.
BACKGROUND
Staff will review financial results for the quarter ending December 31, 2024.
ATTACHMENTS:
2Q25 Financial Reports.pdf
9 Fiscal Year Actual/Budget Amount Fiscal Year Actual/Budget Amount June 30, 2016 Audited ($1,044) June 30, 2016 Audited $3,833 June 30, 2017 Audited $21,711 June 30, 2017 Audited $18,882 June 30, 2018 Audited $85,365 June 30, 2018 Audited $64,689 June 30, 2019 Audited $140,139 June 30, 2019 Audited $114,069 June 30, 2020 Audited $189,072 June 30, 2020 Audited $177,629 June 30, 2021 Audited $180,717 June 30, 2021 Audited $165,652 June 30, 2022 Audited $167,671 June 30, 2022 Audited $135,090 June 30, 2023 Audited $307,626 June 30, 2023 Audited $254,074 June 30, 2024 Audited $349,200 June 30, 2024 Audited $389,062 December 31, 2024 Actual $394,739 December 31, 2024 Actual $400,746 June 30, 2025 Budget $354,452 June 30, 2025 Budget $342,592 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 $48,933 FY2019-2020 Audited $216,066 FY2020-2021 Audited ($8,355) FY2020-2021 Audited $213,834 FY2021-2022 Audited ($13,046) FY2021-2022 Audited $226,678 FY2022-2023 Audited $139,955 FY2022-2023 Audited $265,208 FY2023-2024 Audited $41,574 FY2023-2024 Audited $325,171 FY2024-2025 6mo. Act + 6mo. Fcst $61,443 FY2024-2025 6mo. Act + 6mo. Fcst $377,695 FY2024-2025 Budget $5,252 FY2024-2025 Budget $423,404
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 $5,603
FY2017-2018 Audited $244,738 FY2017-2018 Audited $10,836 FY2018-2019 Audited $259,782 FY2018-2019 Audited $12,877 FY2019-2020 Audited $278,093 FY2019-2020 Audited $15,272 FY2020-2021 Audited $228,101 FY2020-2021 Audited $22,469 FY2021-2022 Audited $237,899 FY2021-2022 Audited $19,861 FY2022-2023 Audited $428,218 FY2022-2023 Audited $25,946 FY2023-2024 Audited $388,613 FY2023-2024 Audited $36,664 FY2024-2025 6mo. Act + 6mo. Fcst $473,341 FY2024-2025 6mo. Act + 6mo. Fcst $50,016 FY2024-2025 Budget $476,693 FY2024-2025 Budget $57,140
Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
December 31, 2024
($000s)
Net Position Balance Unrestricted Cash/Investments Balance Revenues Total Other Operating Expenses
Change in Net Position Cost of Electricty
10 Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
December 31, 2024
($000s)
FY 2025 Q2 Revenue FY 2025 Q2 Expense
Customer Accounts Energy Used
283,758 , 91%
28,390 , 9%
Customer Accounts
Residential Commercial/Industrial
381,005 , 43%
513,362 , 57%
FY 2025 Q2 Energy Usage (MWh)
Residential Commercial/Industrial
$109,471
$111,660
$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000
Actual vs. Budget
Actual Revenues - FY 2025 Q2 Budget Revenues - FY 2025 Q2 $76,988
$115,163
$0 $50,000 $100,000 $150,000
Actual vs. Budget
Actual Expenses - FY 2025 Q2 Budget Expenses - FY 2025 Q2 11 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 December 31, 2024, and the statement of revenues, expenses, and changes in net position, and the statement of cash flows for the six months 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
January 24, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 12 ASSETS
Current assets
Cash and cash equivalents 115,454,380$
Accounts receivable, net of allowance 32,673,811
Accrued revenue 23,427,045
Investments 15,684,518
Other receivables 29,096,762
Prepaid expenses 1,140,618
Deposits and other assets 12,737,651
Total current assets 230,214,785
Noncurrent assets
Cash and cash equivalents 68,000,000
Investments 199,376,784
Other receivables 6,127,583
Deposits and other assets 191,489
Capital assets, net of depreciation and amortization 9,607,261 Total noncurrent assets 283,303,117
Total assets 513,517,902
LIABILITIES
Current liabilities
Accrued cost of electricity 38,624,933
Accounts payable 3,358,996
Other accrued liabilities 1,478,207
Deferred revenue 3,003,869
User taxes and energy surcharges due to other governments 796,348 Deposits - energy suppliers 269,999
Lease liability 549,002
Total current liabilities 48,081,354
Noncurrent liabilities
Deposits - energy suppliers 2,249,451
Lease liability 447,731
Total noncurrent liabilities 2,697,182
Total liabilities 50,778,536
DEFERRED INFLOWS OF RESOURCES
Rate Stabilization Fund 68,000,000
NET POSITION
Net investment in capital assets 8,343,287
Unrestricted 386,396,079
Total net position 394,739,366$
As of December 31, 2024
STATEMENT OF NET POSITION
PENINSULA CLEAN ENERGY AUTHORITY
See accountants' compilation report. 2 13
OPERATING REVENUES
Electricity sales, net 240,765,673$
Green electricity premium 1,562,876
Liquidated damages revenue 7,635,203
Grant revenue 1,468,308
Total operating revenues 251,432,060
OPERATING EXPENSES
Cost of electricity 194,751,713
Contract services 6,020,209
Staff compensation 6,692,414
Other operating expenses 8,648,222
Depreciation and amortization 289,197
Total operating expenses 216,401,755
Operating income (loss) 35,030,305
NONOPERATING REVENUES (EXPENSES)
Investment income 10,526,805
Finance costs (17,844)
Nonoperating revenues (expenses), net 10,508,961
CHANGE IN NET POSITION 45,539,266
Net position at beginning of period 349,200,100
Net position at end of period 394,739,366$
PENINSULA CLEAN ENERGY AUTHORITY
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Six Months Ended December 31, 2024
See accountants' compilation report. 3 14
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 249,070,214$
Receipts from grantors 1,468,308
Other operating receipts 7,563,523
Payments to suppliers for electricity (220,717,552)
Payments for other goods and services (16,563,052)
Payments for deposits and collateral (8,547,113)
Payments for staff compensation (6,577,017)
Payments of taxes and surcharges to other governments (3,692,373) Net cash provided (used) by operating activities 2,004,938
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchases of capital assets (2,914,012)
Payments of lease liability (281,199)
Net cash provided (used) by capital and related financing activities (3,195,211)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of investments 29,508,907 Investment income received 8,399,755
Purchase of investments (33,196,968)
Net cash provided (used) by investing activities 4,711,694 Net change in cash and cash equivalents 3,521,421
Cash and cash equivalents at beginning of period 179,932,959 Cash and cash equivalents at end of period 183,454,380$ Reconciliation to the Statement of Net Position
Cash and cash equivalents (current) 115,454,380$
Cash and cash equivalents (noncurrent) 68,000,000
Cash and cash equivalents 183,454,380$
NONCASH INVESTING ACTIVITIES
Unrealized appreciation and timing differences in investment income 2,127,050$
NONCASH CAPITAL FINANCING ACTIVITIES
Capital acquisitions included in accounts payable and other liabilities 267,241$ Six Months Ended December 31, 2024
STATEMENT OF CASH FLOWS
PENINSULA CLEAN ENERGY AUTHORITY
See accountants' compilation report. 4 15
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) 35,030,305$
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation and amortization expense 289,197
(Increase) decrease in:
Accounts receivable, net of allowance (292,482)
Accrued revenue 2,313,305
Other receivables (24,675,675)
Prepaid expenses 3,470,510
Deposits and other assets (7,376,363)
Increase (decrease) in:
Accrued cost of electricity (5,043,688)
Accounts payable 619,298
Other accrued liabilities 579,170
Deferred revenue (1,368,288)
User taxes and energy
surcharges due to other governments (370,351)
Deposits - energy suppliers (1,170,000)
Net cash provided (used) by operating activities 2,004,938$ Six Months Ended December 31, 2024
STATEMENT OF CASH FLOWS
PENINSULA CLEAN ENERGY AUTHORITY
(continued)
See accountants' compilation report. 5 16
Taxable Interest 869,571.33 1,845,389.91
Realized Gain/Loss - 71,273.51 - 57,540.36Change In Unrealized Gain/Loss - 1,502,588.24 1,269,971.17Change In Accrued Income - 24,711.94 - 138,119.22 PENINSULA CLEAN ENERGY - PFM Page 3 of 74
Period from October 1, 2024 to December 31, 2024
CURRENT PERIOD YEAR TO DATE
10/01/2024 TO 12/31/2024 07/01/2024 TO 12/31/2024
Beginning Market Value 111,579,345.69 107,930,641.83Asset ActivityTotal Asset Activity - 729,002.36 2,919,701.50Net Change In Market Value - 729,002.36 2,919,701.50Ending Market Value 110,850,343.33 110,850,343.33
MARKET VALUE RECONCILIATION
17 Cash And Equivalents 354,024.26 0.32
U.S. Government Issues 88,912,927.67 80.21Corporate Issues 18,312,429.90 16.52Foreign Issues 964,739.60 0.87Municipal Issues 1,531,421.10 1.38Accrued Income 774,800.80 0.70PENINSULA CLEAN ENERGY - PFM Page 5 of 74 Period from October 1, 2024 to December 31, 2024
12/31/2024 % OF
ASSETS MARKET VALUE MARKET
Total Assets 110,075,542.53 99.30Grand Total 110,850,343.33 100.00
ASSET SUMMARY
CASH EQUIV & ACCR 1.02%
BONDS 98.98%
18 Taxable Interest 677,063.70 1,876,860.93
Realized Gain/Loss - 254,585.73 - 581,757.80Change In Unrealized Gain/Loss - 1,408,684.48 1,613,376.85Change In Accrued Income 197,497.95 - 104,458.66 PENINSULA CLEAN ENERGY - CHANDLER Page 3 of 48
Period from October 1, 2024 to December 31, 2024
CURRENT PERIOD YEAR TO DATE
10/01/2024 TO 12/31/2024 07/01/2024 TO 12/31/2024
Beginning Market Value 107,069,732.17 103,477,002.29Asset ActivityTotal Asset Activity - 788,708.56 2,804,021.32Net Change In Market Value - 788,708.56 2,804,021.32Ending Market Value 106,281,023.61 106,281,023.61
MARKET VALUE RECONCILIATION
19 Cash And Equivalents 156,318.74 0.15
U.S. Government Issues 62,657,362.69 58.95Corporate Issues 37,886,669.12 35.65Foreign Issues 3,702,777.50 3.48Municipal Issues 1,092,974.25 1.03Accrued Income 784,921.31 0.74PENINSULA CLEAN ENERGY - CHANDLER Page 5 of 48 Period from October 1, 2024 to December 31, 2024
12/31/2024 % OF
ASSETS MARKET VALUE MARKET
Total Assets 105,496,102.30 99.26Grand Total 106,281,023.61 100.00
ASSET SUMMARY
BONDS 99.11%
20 21
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