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 12, 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/meetings-events 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 forum, and all public comment must relate to something that is within the subject matter jurisdiction of the 1 1. Approval of Minutes from the February 10, 2025 Audit and Finance Committee Meeting
2. Chair Report
3. Staff Report
4. Q3 Fiscal Year 2025 Financial Report (Quarter Ending March 31, 2025) (Discussion)
5. Review Fiscal Year 2025-2026 Draft Budget (Discussion)
6. Recommend to the Board of Directors Approval of a Two-Year Contract with Maher Accountancy (Action)
7. Residential Solar Program and Credit Enhancement Options (Discussion)
8. Committee Members' Reports (Discussion)
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: May 9, 2025
MEETING DATE: May 12, 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 February 10, 2025 Audit and Finance Committee Meeting
Item No. 1
PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
RECOMMENDATION
Approval of Minutes from the February 10, 2025 Audit and Finance Committee Meeting ATTACHMENTS:
02-10-2025 A&FC Draft Minutes .pdf
5 Regular Meeting of the Audit and Finance Committee of the Peninsula Clean Energy Authority (PCEA)
Minutes
Monday, February 10, 2025
8:30 a.m.
Zoom Video Conference and Teleconference
CALL TO ORDER
Meeting was called to order at 8:37 a.m. in virtual teleconference and in the Peninsula Clean Energy Authority lobby.
ROLL CALL
Participating:
Donna Colson, Burlingame, Chair
Carlos Romero, East Palo Alto
Leslie Ragsdale, Hillsborough
Absent: Tom McCune, Belmont
A quorum was established.
PUBLIC COMMENT
None
ACTION TO SET AGENDA
Public Comment: None
MOTION: Director Ragsdale moved, seconded by Director Colson to set the Agenda.
MOTION PASSED: 3-0 (Absent: Belmont)
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
Totals 3 1
ACTION TO APPROVE CONSENT AGENDA ITEMS
Public Comment: None
MOTION: Director Ragsdale moved, seconded by Director Colson to set the Agenda and approve Agenda Item Number 1.
6 1. Approval of the Minutes for the November 12, 2024 Meeting MOTION PASSED: 3-0 (Absent: Belmont)
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
Totals 3 1
REGULAR AGENDA
2. Chair Report
None
3. Staff Report
Nick Bijur, Chief Financial Officer, provided an update to the Committee on a few financial updates including an accounting RFP, an update to approved Peninsula Clean Energy rate changes, and an update on the staff Risk Oversight Committee.
4. Review of Peninsula Clean Energy's Cash Investment Performance and Market Overview (Discussion) Nick Bijur, Chief Financial Officer
Nick Bijur, Chief Financial Officer, introduced Monique Spyke, Managing Director, and Justin Resuello, Institutional Sales and Relationship Manager at PFM Asset Management. Monique and Justin gave the Audit and Finance Committee an update on Peninsula Clean Energy’s portfolio, finance strategy, and future market conditions.
Public Comment: None
5. Q2 Fiscal Year 2024-2025 Financial Report (Quarter Ending December 31, 2024) (Discussion)
Nick Bijur, gave a presentation on the second quarter Fiscal Year 2024-2025 Financial Report for quarter ending December 31, 2024.
Public Comment: None
6. Committee Members’ Reports
Director Ragsdale asked for clarification if the Turnkey Programs is up and running and if she could announce it at a Hillsborough Council meeting.
ADJOURNMENT
Meeting was adjourned at 9:54 a.m.
7 DATE: May 2, 2025
MEETING DATE: May 12, 2025
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Audit and Finance Committee FROM: Nicholas Bijur, Chief Financial Officer
SUBJECT: Q3 Fiscal Year 2025 Financial Report (Quarter Ending March 31, 2025) (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
Staff will review financial results for the quarter ending March 31, 2025 and year-to-date.
ATTACHMENTS:
3Q Financials.pdf
8 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 March 31, 2025 Actual $403,260 March 31, 2025 Actual $416,831 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 9mo. Act + 3mo. Fcst $62,267 FY2024-2025 9mo. Act + 3mo. Fcst $362,047 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 9mo. Act + 3mo. Fcst $449,220 FY2024-2025 9mo. Act + 3mo. Fcst $45,844 FY2024-2025 Budget $476,693 FY2024-2025 Budget $57,140
Revenues Total Other Operating Expenses
Change in Net Position Cost of Electricty
March 31, 2025
($000s)
Net Position Balance Unrestricted Cash/Investments Balance Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
9 Customer Accounts Energy Used
March 31, 2025
($000s)
FY 2025 Q3 Revenue FY 2025 Q3 Expense
Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
284,559 , 91%
28,791 , 9%
Customer Accounts
Residential Commercial/Industrial
386,957 , 44%
488,391 , 56%
FY 2025 Q3 Energy Usage (MWh)
Residential Commercial/Industrial
$104,602
$110,686
$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000
Actual vs. Budget
Actual Revenues - FY 2025 Q3 Budget Revenues - FY 2025 Q3 $102,699
$120,265
$0 $50,000 $100,000 $150,000
Actual vs. Budget
Actual Expenses - FY 2025 Q3 Budget Expenses - FY 2025 Q3 10 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, 2025, and the statement of revenues, expenses, and changes in net position, and the statement of cash flows for the nine 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
April 28, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 11 ASSETS
Current assets
Cash and cash equivalents 129,141,643$
Accounts receivable, net of allowance 27,997,808
Accrued revenue 17,852,252
Investments 16,871,532
Other receivables 35,816,493
Prepaid expenses 2,885,692
Deposits and other assets 2,132,719
Total current assets 232,698,139
Noncurrent assets
Cash and cash equivalents 68,000,000
Investments 202,817,738
Other receivables 6,856,489
Deposits and other assets 191,860
Capital assets, net of depreciation and amortization 10,308,982 Total noncurrent assets 288,175,069
Total assets 520,873,208
LIABILITIES
Current liabilities
Accrued cost of electricity 38,482,109
Accounts payable 2,901,384
Other accrued liabilities 1,321,140
Deferred revenue 2,740,221
User taxes and energy surcharges due to other governments 775,716 Deposits - energy suppliers 279,999
Lease liability 557,518
Total current liabilities 47,058,087
Noncurrent liabilities
Deposits - energy suppliers 2,249,451
Lease liability 305,309
Total noncurrent liabilities 2,554,760
Total liabilities 49,612,847
DEFERRED INFLOWS OF RESOURCES
Rate Stabilization Fund 68,000,000
NET POSITION
Net investment in capital assets 8,601,394
Unrestricted 394,658,967
Total net position $ 403,260,361
As of March 31, 2025
STATEMENT OF NET POSITION
PENINSULA CLEAN ENERGY AUTHORITY
See accountants' compilation report. 2 12
OPERATING REVENUES
Electricity sales, net 340,474,422$
Green electricity premium 2,572,642
Liquidated damages revenue 10,672,395
Grant revenue 2,314,523
Total operating revenues 356,033,982
OPERATING EXPENSES
Cost of electricity 287,420,411
Contract services 9,262,025
Staff compensation 10,429,272
Other operating expenses 11,522,644
Depreciation and amortization 458,746
Total operating expenses 319,093,098
Operating income (loss) 36,940,884
NONOPERATING REVENUES (EXPENSES)
Investment income 17,144,600
Finance costs (25,223)
Nonoperating revenues (expenses), net 17,119,377
CHANGE IN NET POSITION 54,060,261
Net position at beginning of period 349,200,100
Net position at end of period $ 403,260,361
PENINSULA CLEAN ENERGY AUTHORITY
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Nine Months Ended March 31, 2025
See accountants' compilation report. 3 13
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 359,260,180$
Receipts from grantors 1,038,380
Other operating receipts 26,903,949
Payments to suppliers for electricity (327,609,431)
Payments for other goods and services (21,206,241)
Payments for deposits and collateral (8,745,168)
Payments for staff compensation (10,360,412)
Payments of taxes and surcharges to other governments (5,234,182) Net cash provided (used) by operating activities 14,047,075
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchases of capital assets (3,207,762)
Payments of lease liability (422,485)
Net cash provided (used) by capital and related financing activities (3,630,247)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of investments 47,459,814 Investment income received 12,586,042
Purchase of investments (53,254,000)
Net cash provided (used) by investing activities 6,791,856 Net change in cash and cash equivalents 17,208,684
Cash and cash equivalents at beginning of period 179,932,959 Cash and cash equivalents at end of period 197,141,643$ Reconciliation to the Statement of Net Position
Cash and cash equivalents (current) 129,141,643$
Cash and cash equivalents (noncurrent) 68,000,000
Cash and cash equivalents 197,141,643$
NONCASH INVESTING ACTIVITIES
Unrealized appreciation and timing differences in investment income 4,558,558$
NONCASH CAPITAL FINANCING ACTIVITIES
Capital acquisitions included in accounts payable and other liabilities 844,761$ Nine Months Ended March 31, 2025
STATEMENT OF CASH FLOWS
PENINSULA CLEAN ENERGY AUTHORITY
See accountants' compilation report. 4 14
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) $ 36,940,884
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation and amortization expense 458,746
(Increase) decrease in:
Accounts receivable, net of allowance 4,383,521
Accrued revenue 7,888,098
Other receivables (32,271,646)
Prepaid expenses 1,725,436
Deposits and other assets 3,285,197
Increase (decrease) in:
Accrued cost of electricity (5,186,512)
Accounts payable (415,834)
Other accrued liabilities 422,103
Deferred revenue (1,631,936)
User taxes and energy
surcharges due to other governments (390,983)
Deposits - energy suppliers (1,160,000)
Net cash provided (used) by operating activities $ 14,047,074 Nine Months Ended March 31, 2025
STATEMENT OF CASH FLOWS
PENINSULA CLEAN ENERGY AUTHORITY
(continued)
See accountants' compilation report. 5 15
Non-Cash Deliveries - .01 - .01
Taxable Interest 887,454.93 2,732,844.84Realized Gain/Loss - 70,067.08 - 127,607.44Change In Unrealized Gain/Loss 1,381,772.03 2,651,743.20Change In Accrued Income 12,731.29 - 125,387.93 00247001 PENINSULA CLEAN ENERGY - PFM Page 3 of 76
Period from January 1, 2025 to March 31, 2025
CURRENT PERIOD YEAR TO DATE
01/01/2025 TO 03/31/2025 07/01/2024 TO 03/31/2025
Beginning Market Value 110,850,343.33 107,930,641.83DisbursementsTotal Disbursements - .01 - .01Asset ActivityTotal Asset Activity 2,211,891.17 5,131,592.67Net Change In Market Value 2,211,891.16 5,131,592.66Ending Market Value 113,062,234.49 113,062,234.49
MARKET VALUE RECONCILIATION
16 1 1 1 1 1 1 1 1 1 1 1 1 111 11 11 11 11 1 1 1 1 11 1 1 11111 1 1 1 1 1 1 1 11 1 1 1 1 111 111 1 1 1 1 1 1 1 1 1 1 1 11 111 1 111 11 1 11 11 1 11 1111 11 111 1 1 1 1 111 1 1 1 1 1 1 11 11 1 111 1 1 1 1 1 1 1 11 1 1 11 1 1 11 1111 1 1 11 111 1 1 111 1 11 1 1 11 11 111 111 1 1 1 1 1 11 11 1 111 1 11111111111111111111 Non-Cash Deliveries - .01 - .01Taxable Interest 887,454.93 2,732,844.84Realized Gain/Loss - 70,067.08 - 127,607.44Change In Accrued Income 12,731.29 - 125,387.93 00247001 PENINSULA CLEAN ENERGY - PFM Page 4 of 76
Period from January 1, 2025 to March 31, 2025
CURRENT PERIOD YEAR TO DATE
01/01/2025 TO 03/31/2025 07/01/2024 TO 03/31/2025
Beginning Cost 110,931,644.25 109,281,913.92DisbursementsTotal Disbursements - .01 - .01Asset ActivityTotal Asset Activity 830,119.14 2,479,849.47Ending Cost 111,761,763.38 111,761,763.38
COST RECONCILIATION
17 Cash And Equivalents 58,139.65 0.05
U.S. Government Issues 90,691,242.01 80.21Corporate Issues 19,007,325.84 16.81Foreign Issues 973,709.00 0.86Municipal Issues 1,544,285.90 1.37Accrued Income 787,532.09 0.70 00247001 PENINSULA CLEAN ENERGY - PFM Page 5 of 76 Period from January 1, 2025 to March 31, 2025
03/31/2025 % OF
ASSETS MARKET VALUE MARKET
Total Assets 112,274,702.40 99.30Grand Total 113,062,234.49 100.00
ASSET SUMMARY
BONDS 99.25%
18 Taxable Interest 1,151,100.22 3,027,961.15
Realized Gain/Loss - 52,843.21 - 634,601.01Change In Unrealized Gain/Loss 1,262,981.51 2,876,358.36Change In Accrued Income - 133,604.43 - 238,063.09 01849704 PENINSULA CLEAN ENERGY - CHANDLER Page 3 of 53 Period from January 1, 2025 to March 31, 2025
CURRENT PERIOD YEAR TO DATE
01/01/2025 TO 03/31/2025 07/01/2024 TO 03/31/2025
Beginning Market Value 106,281,023.61 103,477,002.29Asset ActivityTotal Asset Activity 2,227,634.09 5,031,655.41Net Change In Market Value 2,227,634.09 5,031,655.41Ending Market Value 108,508,657.70 108,508,657.70
MARKET VALUE RECONCILIATION
19 1 1 1 1 1 1 1 1 1 1 1 1 111 11 1 11 1 1 1 1 11 1 111 1 111 11111 11 11 11 11 1 111 11 1111 1111 1 1 1 11 1 1 1 1 1 1 11 111 1 11 111 11 111 11 11 11 1 1 1 1 1 1 1 1 1 111 1 111 1111 11111 11 1 1 1 1 1 1 1 11 1 111 11 11 1 11 1 1 11 1 11 1 1 1 1 1 1 1 1 11 1 1 1 1 11 1 1111 11 111 1 1 11 1 1 1 1 1 1 11111111111111111111 Taxable Interest 1,151,100.22 3,027,961.15Realized Gain/Loss - 52,843.21 - 634,601.01Change In Accrued Income - 133,604.43 - 238,063.09 01849704 PENINSULA CLEAN ENERGY - CHANDLER Page 4 of 53 Period from January 1, 2025 to March 31, 2025
CURRENT PERIOD YEAR TO DATE
01/01/2025 TO 03/31/2025 07/01/2024 TO 03/31/2025
Beginning Cost 107,423,054.79 106,232,410.32Asset ActivityTotal Asset Activity 964,652.58 2,155,297.05Ending Cost 108,387,707.37 108,387,707.37
COST RECONCILIATION
20 Cash And Equivalents 384,633.72 0.35
U.S. Government Issues 61,010,290.60 56.23Corporate Issues 41,599,266.05 38.34Foreign Issues 3,757,627.50 3.46Municipal Issues 1,105,522.95 1.02Accrued Income 651,316.88 0.60 01849704 PENINSULA CLEAN ENERGY - CHANDLER Page 5 of 53 Period from January 1, 2025 to March 31, 2025
03/31/2025 % OF
ASSETS MARKET VALUE MARKET
Total Assets 107,857,340.82 99.40Grand Total 108,508,657.70 100.00
ASSET SUMMARY
BONDS 99.05%
21 22
23 DATE: May 2, 2025
MEETING DATE: May 12, 2025
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Audit and Finance Committee FROM: Nicholas Bijur, Chief Financial Officer
SUBJECT: Review Fiscal Year 2025-2026 Draft Budget (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 present a preliminary look at the proposed Fiscal Year 2025-2026 budget.
ATTACHMENTS:
Summary_Forecast.pdf
24 Draft 5-Year Forecast
As of May 8, 2025
2025 2026 2027 2028 2029 2030
9 Mo. Act + Fcst Budget Forecast Forecast Forecast Forecast Revenues 454,959,920 403,676,914 347,108,577 378,229,052 451,565,681 453,806,390 Cost of Energy 368,852,605 343,037,648 351,391,003 363,618,843 386,739,115 398,260,807 Revenue less Energy Costs 86,107,315 60,639,265 (4,282,427) 14,610,209 64,826,565 55,545,583Staff Compensation 14,087,390 16,210,565 17,917,668 19,363,471 20,331,645 21,348,227Programs 17,522,488 21,700,000 27,050,000 27,650,000 27,650,000 27,150,000General & Administrative 14,006,921 16,485,234 16,770,182 17,599,787 17,978,275 18,455,907 Operating Expenses 45,616,799 54,395,799 61,737,850 64,613,258 65,959,920 66,954,134Operating Income (Loss) 40,490,516 6,243,466 (66,020,277) (50,003,049) (1,133,355) (11,408,551)Interest Income 20,330,881 15,547,290 14,887,184 13,144,471 12,515,388 12,411,866 Change in Net Position 60,821,397 21,790,757 (51,133,093) (36,858,578) 11,382,034 1,003,315 Note: Forecast excludes utilization of the Rate Stabilization Fund 25 DATE: May 2, 2025
MEETING DATE: May 12, 2025
VOTE REQUIRED: Majority Vote
TO: Honorable Peninsula Clean Energy Authority Board of Directors FROM: Nicholas Bijur, Chief Financial Officer
SUBJECT: Recommend to the Board of Directors Approval of a Two-Year Contract with Maher Accountancy (Action)
Item No. 6
PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
RECOMMENDATION
Recommend to the Peninsula Clean Energy (PCE) Board of Directors to engage Maher Accountancy (Maher) for a two-year contract commencing on July 1, 2025 in an amount not to exceed $690,000.
BACKGROUND
PCE has engaged Maher Accountancy to provide external accounting, payroll, and annual audit support services since 2016. A summary of services that are provided as part of Maher’s monthly fee is as follows:
Process payroll, including managing and reporting payroll taxes.
Manage and process Accounts Payable including use of a cloud-based document management system supporting management review of expenses, segregation of duties, and access to source invoice and vendor data.
Set-up of wire transfer payments to vendors paid by wire.
Maintain the general ledger by posting billings and accruing revenue/expenses by reconciliation of PCE’s data manager reports of customer activity and Accounts Receivable.
Perform bank reconciliations.
Publish monthly financial statements showing monthly and year-to-date summaries compared to the Board-approved budget.
Monthly updated web portal providing access to professional services contract management.
As part of PCE’s effort to maximize value and determine if there are other viable accounting firms who could perform the services required at higher quality and/or lower cost, PCE issued a Request for Proposal (RFP) for accounting support in January 2025. In addition to posting the RFP on PCE’s website and LinkedIn, Staff proactively reached out to several potential accounting firms. PCE received five proposals and identified three firms for interviews. Staff 26 met with the three firms, one of which was Maher Accountancy, in March and conducted reference checks.
DISCUSSION
After considerable deliberation, Staff recommends continuing the relationship with and entering into a two-year contract with Maher Accountancy. Staff's evaluation concluded that the other shortlisted firms can't match Maher’s expertise and experience with CCAs, the costs across firms are comparable, and switching firms would involve significant costs, time, and risk. Furthermore, PCE has been very satisfied with the level of service and support provided by Maher over the years.
The proposed cost of the accounting services will be $24,500 per month for the first contract year plus $18,000 for support of the annual audit. The total cost of $312,000 represents a
7.5% increase over the prior contract year. The increase is largely due to an increase in work required to support PCE’s various customer programs as well as growth in PCE’s staff which necessitates additional payroll and related support. Maher's proposal includes a 5% escalation in the second contract year and $25,000 for contingency per year, which will only be spent if the scope of work increases significantly. All non-financial terms will be in substantially the same form as the prior agreement with Maher executed on August 28, 2024.
FISCAL IMPACT
The total fees in the first contract year from July 1, 2025, through June 30, 2026, will be $312,000, which is included in the proposed budget. The proposed fee is in line with accounting services provided to other CCAs of similar size and complexity. 27 DATE: May 5, 2025
MEETING DATE: May 12, 2025
VOTE REQUIRED: None
TO: Honorable Peninsula Clean Energy Authority Audit and Finance Committee FROM: Rafael Reyes, Senior Director of Energy Programs
SUBJECT: Residential Solar Program and Credit Enhancement Options (Discussion) Item No. 7
PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
RECOMMENDATION
Information and discussion only
BACKGROUND
Peninsula Clean Energy’s mission is to reduce greenhouse gas emissions by expanding access to sustainable and affordable energy solutions. In 2018, PCE initiated community programs, which have been developed within three major pillars: Building decarbonization, Transportation decarbonization and Distributed Energy Resources. In September 2021, the Board adopted a new aspirational target supporting the region in reaching 100% decarbonization in buildings and transportation by 2035 and directed staff to analyze the feasibility of that target and return with an assessment and plan. The detailed analysis was delivered to the Board in September 2022 and assessed current market conditions, funding and financing availability, economics, and policy status. The plan also provided guidance on strategies to deliver significant emissions reductions within a scope that the agency is well positioned to affect.
The core strategy was defined as follows: To decarbonize buildings and transportation, align energy use with renewables, and deliver community benefits in segments PCE is best positioned to influence - progressively developing and adapting programs that inform customer preference, innovation, and policy. In addition, to demonstrate scalable, sustainable business models and mobilize market forces state-wide. The Decarbonization Plan also identified major barriers in scaling decarbonization and identified the need to develop new business models to achieve scalability. The opportunity for a more comprehensive plan on how to foster distributed energy resource (DER) development in PCE’s service territory was also confirmed in subsequent Board discussions regarding PCE's Strategic Plan for 2026 – 2030.
On April 24, 2025 staff presented the proposed DER Framework the Board. The DER Framework includes sev goals to foster the development of DERs in its service area under a customer-centric approach during the 2025 – 2030 timeframe. Two of the goals are as follows:
28 1. PCE will expand its behind-the-meter local power portfolio by 15 MW of solar and 35 MWh of storage via two core initiatives – (1) developing a General Market Residential Solar + Storage Program and (2) expanding PCE’s Solar + Storage for Public Buildings Program (GovPV). Scalable and self-sustaining financial solutions are central to achieving this goal.
2. PCE will initially strive towards integrating additional DERs such as solar + storage and EV readiness under PCE’s existing residential electrification program, the Home Upgrade Program. In a second step, PCE will also work towards providing integrated program offerings across the breadth of DERs to local government and commercial customers.
DISCUSSION
These goals provide direction for PCE's DER program that is currently under development.
There are also financial implications to consider that will influence program success and scale. For example, PCE is dealing with a volatile energy market with material uncertainties in the medium-term which, if prolonged, could weaken PCE's ability to self-fund local decarbonization efforts. In addition, deployment of solar (and storage) systems across our service territory introduces some loss of load and associated loss of revenue, which necessitates careful planning and evaluation of potential financing options.
The current program design for the residential solar + storage program incorporates all key objectives previously identified: reduce customer friction to accelerate adoption, address affordability and scalability issues, integrate services, and foster ongoing financial sustainability for the Agency.
For residential solar and storage, an intermediate step was taken with the Board-approved PCE Solar and Battery Savings (SBS) program launched last year. The PCE SBS program has and will continue to secure State funds through the statewide Self-Generation Incentive Program (SGIP) to deploy solar and storage systems to income-qualified homes. For this program, PCE contracted with solar developer Haven Energy Services to manage customer engagement, financing, tax credits, and installations. The solar and storage systems will also offer grid services, connected through the distributed energy resource management system (DERMS) being put into place. This program is launched and ongoing.
The next phase is facilitating solar and storage systems for general market rate customers, and a solar developer will also be required. However, costs and complexity for general market customers remains very high. This includes high lending rates from commercial lenders and many private finance providers have high friction processes – slow approvals, high rates, and/or requirements that are challenging for contractors and customers. PCE has provided on-bill financing (OBF) for electrification, which has been popular. But the OBF program, known as Zero Percent Finance, has numerous limitations, including limited total capital and lack of full recourse if a customer departs PCE service. This increases the risk for larger loans and the longer terms needed for solar + battery and large projects. At the same time, numerous “fintech” financial services companies are making strides to reduce transaction friction opening the potential for a more user-friendly process and potentially improved rates.
To support our next steps, PCE plans to release two RFPs in the coming months to address the Agency’s strategic goals for the general residential sector:
29 1. Solar and Storage Developer: This partner would be responsible for delivering installations, managing financing and tax credits, and ensuring services are delivered to PCE specifications for customers selecting turnkey installations. This service provider is intended to reduce equipment and installation complexity for customers.
2. Financial Services: This partner would offer optional financing to customers interested in securing credit services. The services would be aimed at streamlined, low-friction transaction process with beneficial terms and pricing. PCE’s objective is to secure superior/preferred loan terms for our customers by providing, as a starting point, marketing and program support.
For the financial services piece, in addition to the programmatic features listed above, PCE is exploring a possible role for credit enhancements to improve the financing terms. The general concept is that PCE would provide a pool of funds to support the financing, improving the interest rate and/or other loan terms. Specific approaches vary such as interest rate buydowns, loan loss reserves, and loan participations. Some approaches also enable revenue generation which can offset some of the lost revenue from the transition to solar + battery and loss of generation sales.
Credit enhancements are widely used in a number of arenas such as affordable housing and economic development. As part of PCE's financial services research, staff will explore the potential for credit enhancements using existing balance sheet funds to improve customer terms and generate program revenues.
Staff will return to the Audit and Finance Committee with our findings and a request for guidance/approval before implementing final program design that would include a credit feature.
FISCAL IMPACT
None at this time.
30