STAFF REPORT
Agenda Item # 7.1
AGENDA DATE: May 22, 2025
TO: Board of Directors
PREPARED BY:
Richard Engel, Director of Power Resources
Lori Biondini, Director of Business Planning and Finance Jaclyn Harr, TEA Account Director – California
SUBJECT: Energy Risk Management Semi-Annual Report
BACKGROUND
The RCEA Board of Directors adopted an Energy Risk Management Policy in December 2016, most recently revised in December 2024 (https://redwoodenergy.org/wp-content/uploads/sites/850/2024/12/Energy-Risk-Management-Policy.pdf), to establish functions and procedures to manage the risks associated with the Community Choice Energy (CCE) program’s power procurement activities. In accordance with this policy, staff presents updates at minimum twice yearly on activities and projected financial performance to the Board during business meetings.
SUMMARY
RCEA staff and the Energy Authority (TEA) California Account Director Jaclyn Harr will provide an energy risk management update.
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
Not applicable.
EQUITY IMPACTS
Not applicable.
RECOMMENDED ACTION
Accept Energy Risk Management Semi-Annual Report.
ATTACHMENTS
Energy Risk Management Semi-Annual Report slides will be presented at the meeting. 191
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RCEA
Energy Risk Management
Semi-Annual Report
May 2025 Board Meeting
Financial Update
CONFIDENTIAL & PROPRIETARY 33
Overview of Financial Drivers*
CCE Revenues:
• Fiscal Year 24-25 electricity sales revenue lower than budgeted • Updated load forecast for 2025+
• Calendar year 2026 and 2027 PG&E rate forecast updated (2026: per May ERRA, 2027: per NewGen)
• -$12.3MM in FY 25-26, -$11.9MM in FY 26-27
Net Power Costs:
• Forward energy price changes over forecast horizon:
• Calendar year 2025 costs up 7% (100% hedged)
• Calendar years 2026 and 2027 costs up 11% (average hedged: ~95%) and 10% (average hedged:
~70%), respectively
• Decreased prices for environmental products (RECs & Carbon-Free) and capacity products (RA)
34 Legend
Green = improved since FY budget revision Feb ‘25
Red = worse since FY budget revision Feb ‘25
*Per Financial Models dated 2/11/25 and 5/6/25.
Fiscal Year Net CCE Revenue Forecast
35 FY 24-25 FY 25-26 FY 26-27
Feb 2025 Board $17,400,000 $14,700,000 $100,000
May 2025 Board $9,500,000 $6,100,000 $(6,500,000)
-$10MM
-$5MM
$0MM
$5MM
$10MM
$15MM
$20MM
Calendar Year Net CCE Revenue Forecast
36 CY 2025 CY 2026 CY 2027
Feb 2025 Board $35,500,000 $(8,300,000) $7,500,000
May 2025 Board $22,700,000 $(12,000,000) $(3,500,000)
-$15MM
-$10MM
-$5MM
$0MM
$5MM
$10MM
$15MM
$20MM
$25MM
$30MM
$35MM
$40MM
37 Two-Year Cash Projection based on CCE Net Revenues
May - Dec 2025 CY 2026 Jan - Dec 2027
Min Avg Ending Min Avg Ending Min Avg Ending
Feb 2025 Board $38.2M $51.5M $65.5M $61.0M $63.8M $62.3M $55.5M $62.5M $67.8M May 2025 Board $35.2M $43.7M $53.2M $45.2M $50.2M $45.6M $40.5M $42.5M $41.2M $0MM
$5MM
$10MM
$15MM
$20MM
$25MM
$30MM
$35MM
$40MM
$45MM
$50MM
$55MM
$60MM
$65MM
$70MM
$75MM
Feb 2025 Board May 2025 Board
Historical vs. Forecast RCEA Usage
CONFIDENTIAL & PROPRIETARY 38
Year-over-Year PG&E Rates & RCEA PCIA
CONFIDENTIAL & PROPRIETARY 39
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00
$200.00
2024 2025 2026
PG&E Residential Gen Rate
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2024 2025 2026
Vintage Year 2016 Residential PCIA
2024 Gen 2025 Gen 2026 Gen
$148.50 $178.96 $123.34
20.51% -31.08%
2024 PCIA 2025 PCIA 2026 PCIA
$11.30 $11.10 $12.61
-1.77% 13.60%
Forecasted PG&E Generation Rate & PCIA
40 $(50)
$-
$50
$100
$150
$200
$250
May-25
Jun-25
Jul-25
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Sep-27
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$/MWh
Feb 2025 Board Gen Rate May 2025 Board Gen Rate Feb 2025 Board PCIA May 2025 Board PCIA Forward Energy Prices for RCEA
41 $-
$20
$40
$60
$80
$100
$120
May-25
Jun-25
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$/MWh
Feb 2025 Board Forward On-Peak May 2025 Board Forward On-Peak Feb 2025 Board Forward Off-Peak May 2025 Board Forward Off-Peak
STAFF REPORT
Agenda Item # 8.1
AGENDA DATE: May 22, 2025
TO: Board of Directors
PREPARED BY: Elizabeth Burks, Executive Director
Eileen Verbeck, Deputy Executive Director
SUBJECT: Approve CCA Funded Programs for FY 2025-2026
BACKGROUND
RCEA’s adopted Board Operating Guidelines specify the types of items considered to be CCA program related and therefore limited to CCA voting members. One such item is approval of CCA-funded program allocations. In preparing the draft FY 2025-2026 budget, staff identified several programs that will be funded in part or completely through revenue generated from electricity sales (CCA funded). Staff seeks approval for the following proposed CCA-funded programs for fiscal year 2025-2026. The programs listed below do not include programs completely funded through funding sources outside of the CCA generated revenue.
SUMMARY
Staff is proposing the following programs funded by revenue generated from electricity sales for fiscal year 2025-2026.
Program Description Amount Proposed in FY
25-26 Budget
Transportation – Operate
electric vehicle network
(REVNet)
Includes operations and
maintenance costs for
existing electric vehicle
charging network. (Note: A
portion of these costs are
offset by revenue
generated by customers
utilizing the charging
stations. The amount
proposed is the amount
not offset by revenue
generation).
$30,000
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Program Description Amount Proposed in FY
25-26 Budget
Transportation – Install 16
additional charging
stations (NCRCN grant)
RCEA received multi-year
CEC grant funds
($700,000) that require
match ($175,000). The
match funds include staff
time and construction
costs.
$57,000 in match funds
Transportation – Electric
Vehicle and E-bike
incentives
Customer incentives to
purchase electric forms of
transportation and staff
time.
$100,000 in direct
incentives to customers
plus staff time
Transportation – Fleet
Electrification Technical
Assistance
Staff time to provide
technical assistance to
state, Tribal and local
government fleets subject
to Advanced Clean Fleets
regulations to transition to
zero-emission vehicles.
Staff time only
Match for Caltrans
Wayfinding Program
RCEA proposes installing
signs directing drivers to
EV chargers. Caltrans has
a match program for the
installation of signs on
highways. Costs include
signs and staff time.
$10,000 plus staff time
Energy Lending Library Offer lending library
including induction cook
tops for the public to try
before committing to
purchase. Costs include
equipment and staff time.
$2,500 plus staff time
Resiliency – Tribal Energy
Resilience and
Sovereignty Program
RCEA is the awardee of a
Department of Energy
funding allocation of $88M
to develop four Tribally-owned microgrids. The
DOE has delayed the
execution of the contract.
This is providing staff time
and consulting costs to
negotiate a final award and
draft partner contracts.
$50,000 in legal and
accounting plus staff time
Generation – Net Energy
Metering (NEM)
Provide an annual cash
out to rooftop solar
customers that generate
The amount is calculated
annually based on
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Program Description Amount Proposed in FY
25-26 Budget
excess power. RCEA
credits the retail generation
rate plus an additional
$0.01/kWh bonus.
customer generation and
use
Generation – Bioenergy
Market Adjusting Tariff
(BioMAT) and Feed-in-Tariff (FIT)
FIT is a program to
encourage local renewable
energy production by
offering above-market
pricing for local projects.
BioMAT is a program to
encourage small bioenergy
sources of power that also
offers above-market
pricing. Budget includes
staff time and outreach.
$30,000 in professional
services and staff time
Generation – Redwood
Coast Airport Microgrid
A solar and battery storage
system owned and
operated by RCEA. Budget
includes maintenance and
staff time. (Note: RCAM
generates income to off-set this cost, but it is
aggregated in our
electricity sale revenue.
Exact RCAM revenues
cannot be calculated at
this time. Budgeted
amount does not include
revenue offsets.)
$169,000 operations and
maintenance plus staff
time.
Strategic Planning and
Outreach
Funds allocated for staff
time and resources to
engage in regional
coordination, increase
community engagement,
and energy planning
$276,000 in professional
services and
communications and
outreach plus staff time
The estimated costs of the above-mentioned programs are less than 2% of the total annual revenue generated by electricity sales. The programs listed above have been included in the draft budget to be presented at this meeting. Staff requests approval of the programs and the direction to include these items in the final budget. The budget will be approved by the full Board at the June meeting.
195
ALIGNMENT WITH RCEA’S STRATEGIC PLAN
The proposed programs support the following sections of RCEA’s RePower Humboldt strategic plan goals.
1.1.1 Regional Energy Planning & Coordination – Attract Energy-related Business.
1.4.3 Planning – Assist with Climate Action Planning
1.4.4 Planning – Support Countywide Strategic Energy Planning
1.5.4 Education – Provide Energy Efficiency, Conservation and Electrification Education and Training.
2.1.1 Support Member Agency and Local Government Energy Management
2.1.5 Integrate Distributed Energy Resources.
2.1.7 Support and Deploy Microgrids
2.2.2 Support Electrification
2.4.1 Support Customer Installation of Distributed Generation
3.2.1 Support Local Vehicle Fleet Owners Leading by Example
3.2.3 Support Electric Vehicle Adoption
3.3.1 Develop Transportation Electrification Infrastructure
4.1.1 Maximize the Use of Local Renewable Energy to the Extent Technically and Economically Feasible and Prudent.
4.1.7 Power Resources: Distributed Generation
4.1.8 Power Resources: Solar
4.1.11 Power Resources: Bioenergy
4.3.2 Provide Electricity Buyback from Self Generators
4.3.4 Provide Match Funding for State, Federal and Foundation Energy Grants.
EQUITY IMPACTS
RCEA continues to develop programs that serve all members of our community. Funds included in the strategic planning and outreach will be used to better develop strategies and tools to reach hard-to-reach, disinvested, disadvantaged, and underserved rural customers.
Additionally, RCEA’s engagement in the TERAS Project furthers the following RCEA Racial Justice Plan initiatives:
External Partnerships and Programs
1. Tribal Engagement:
b) RCEA staff will continue and expand efforts to identify opportunities to collaborate with local Tribes as partners on sustainable energy initiatives.
3. Energy justice in power procurement and energy resource development:
a) RCEA staff will incorporate energy justice best practices and affordability into renewable development and power purchase solicitations and resource planning.
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b) RCEA will continue to include project location and community benefit in its evaluation criteria for power solicitations, to contract for projects that benefit racially diverse communities and to avoid projects that are detrimental to those communities.
FINANCIAL IMPACT
The estimated annual cost to fund these programs for fiscal year 2025-26 is $724,500 plus associated staff time. Staff time to implement these programs utilize existing staff.
No additional positions are being requested at this time.
STAFF RECOMMENDATION
Approve the proposed programs funded by revenue generated from electricity sales and direct staff to include the programs in the fiscal year 2025-2026 budget for full Board adoption.
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CCA-Funded Programs
• CCA-Funded Programs are programs funded in part or
completely through revenue generated from electricity
sales.
• Following programs are proposed for FY 25-26
• These programs are included in the draft FY 25-26 budget presented later.
• Board Operating Guidelines specify that CCE voting
members must approve CCA-funded program allocations.
Transportation Programs
• Redwood Electric Vehicle Network (REVNet)
• North Coast Resilient Charging Network (NCRCN)
• Electric Vehicle and E-Bike Incentives
• Fleet Electrification Technical Assistance
• Caltrans Wayfinding Match Program
Energy Efficiency Programs
• Energy Lending Library
Resiliency Programs
• Tribal Energy Resilience and Sovereignty Program (TERAS) Generation Programs
• Net Energy Metering (NEM)
• Bioenergy Market Adjusting Tariff (BioMAT)
• Feed-in-Tariff (FIT)
• Redwood Coast Airport Microgrid
Strategic Planning and
Outreach
• Allocate resources to engage in regional coordination for activities associated with:
• Regional Climate Action Plan
• Offshore Wind
• Transmission Planning Process
• Increase community engagement.
Programs Funded with
External Funds
• Northern Rural Energy Network (NREN)
• Local Government Partnership (LGP)
• Regional Resilience Grant Program (RRGP)
STAFF REPORT
Agenda Item # 10.1
AGENDA DATE: May 22, 2025
TO: Board of Directors
PREPARED BY:
Elizabeth Burks, Executive Director
Eileen Verbeck, Deputy Executive Director
Lori Biondini, Director of Business Planning and Finance SUBJECT: Proposed Budget for Fiscal Year 2025-26
SUMMARY
Attached is the proposed budget for fiscal year 2025-2026 (FY25-26) for the Board’s consideration. Electricity sales revenue and power costs are forecasted to be reduced due to decreased customer load in Humboldt County. Funds for the Northern Rural Energy Network (NREN) customer programs are flowing to RCEA and comprise a large portion of the non-electricity sales revenue and operating expenses in the proposed budget.
RCEA Work Goals for Fiscal Year 2025-2026
Fiscal Year 2025-2026 will be the first full year with newly appointed Executive Director Elizabeth Burks. In drafting the budget, the Executive Director received input from each Department on upcoming work goals for the new fiscal year. In receiving that input the following focus areas were identified as top priorities.
1. Internal Operational Effectiveness, Financial Position, and Team Cohesiveness.
RCEA has experienced growth and staff turnover in the last several years. Nearly half of the current staff have been with RCEA for three years or less. RCEA programs have also grown during this time, most notably through the Northern Rural Energy Network, which has 12 full-time equivalent staff and millions of dollars in passthrough funds and local programs. RCEA has also matured as a community choice energy aggregator (CCA), and it is time to stabilize our financial position.
We want to make sure that we are working with the right organizational structure, with technology and internal processes that support us to do the best work we can. We are prioritizing funding cash reserves to improve our financial position and create opportunities for savings and investments. We want to build on the team culture that fosters inclusiveness, collaboration, and an openness to continuous improvement.
199
Proposed efforts that are included in the draft budget:
• Hiring a third party to do organizational assessment
• Procuring advanced accounting and payroll software, moving internal file access to SharePoint, adopting project management tools such as Monday.com
• Progress towards reserve goals and investing cash reserves • Internal process improvements to streamline operations • Internal mentorship programs and professional development opportunities
2. Excellence in Delivery of Existing Programs.
RCEA has a long history of delivering meaningful programs to benefit our community and the climate. This year we have a full suite of programs to deliver that will promote equity, efficiency, affordability, and resiliency. Through our CCA we’ll be working towards a power portfolio of 100% renewable and carbon free energy.
Proposed efforts that are included in the draft budget:
• Full launch and implementation of the NREN programs. As the portfolio manager, we will maintain a high level of transparency, accountability and trust with the NREN partners.
• Continue support of the Tribal Energy Resilience and Sovereignty (TERAS) project.
• Continue the Regional Resilience Grant Program (RRGP) • Continue the Local Government Program
• Continue to operate and expand the Redwood Electric Vehicle Charging Network (REVNet)
• Offer another round of electric vehicle and e-bike rebates • Continue to offer Net Energy Metering to electricity customers, the Feed-in Tariff and Bioenergy Market Adjusting Tariff (BioMat) to small renewable energy generators, and operate the Redwood Coast Airport Microgrid • Continue procurement of local battery energy storage
3. Engagement with Our Community and Planning for the Future.
This year we want to elevate awareness of RCEA and encourage engagement in our planning efforts, participation in our programs, and regional collaboration.
We’ll be considering big decisions that will steer the future of RCEA such as changing to a cost-of-service rate setting model and want to make sure we have wide participation in this decision making. We want our programs to be equitable and succeed in meeting needs identified by our community, including Tribal Nations and government partners. Along with evaluating cost of service ratemaking, we will begin to plan for a comprehensive update to the RCEA strategic plan which will take place in the following fiscal year. 200
Proposed efforts that are included in the draft budget:
• Cost of Service Rate Setting Analysis
• Elevated awareness of RCEA, our mission, programs, and engagement opportunities
• Preparing the Integrated Resource Plan (Spring 2026)
• Collaboration with regional partners on offshore wind and Regional Climate Action Plan implementation
• Continued engagement with CalCCA and CCPower
• Preparation for RCEA strategic plan update and Humboldt’s Electric Future (power portfolio planning) FY 26-27
BUDGET ASSUMPTIONS
Forecasted electricity sales and wholesale power costs are based on modeling provided by The Energy Authority dated May 5, 2025, which assumes maintaining retail generation rates at 0.5% below Pacific Gas & Electric Company (PG&E) retail generation rates.
Last May, the Board approved pausing RCEA’s goal of procuring 100% renewable and carbon-free energy by calendar year 2025 due to anticipated negative net-revenue for the fiscal year. The forecast had greatly improved by mid-year and this budget assumes resuming the 100% clean and renewable goal in calendar year 2026.
REVENUES
• State Contracts $1,634,000: Revenue in this category includes funding from the California Energy Commission North Coast Resilient Charging Network (NCRCN) for constructing electric vehicle resilience hubs around the County, as well as funds from the Governor’s Office of Planning and Research, Regional Resilience Grant Program (RRGP) for Energy-Resilient Fire Services in High-Threat Communities. This project will design and install solar + storage at rural fire stations. Grant funds will be used to cover staff time for project management and pass-through funds for engineering, design, and construction services. • REVNet Sales $77,000: Revenue in this category includes funding from the use of the RCEA owned electric vehicle charging network.
• Non-Government Agencies $9,993,607: Revenue in this category includes funding from PG&E’s Local Government Partnership Program for implementing the public agency energy efficiency program and funding from PG&E for Northern Rural Energy Network (NREN) for residential and commercial energy efficiency programs.
• Electricity Sales $71,539,945: This line item includes anticipated electricity sales revenue. This total assumes $2,212,576 (3% of projected electricity sales) to be uncollectable due to customer non-payment. This line item has a degree of uncertainty and, it is hoped, represents a conservative forecast. 201
EXPENSES
• Wholesale Power Supply $57,612,586: Power supply costs continue to be RCEA’s largest expense. Energy costs for the fiscal year represent what has already been procured through RCEA’s previously approved hedging strategy, existing power purchase agreement cost estimates, day-ahead energy costs, renewable and carbon-free procurement, and all other required energy products such as resource adequacy and grid management/congestion charges. • Personnel $6,404,096: This item maintains all positions on the current adopted organization chart (no new positions), and includes staff training and travel, and funds to support Board member travel.
The proposed budget for personnel costs is 20% more than the 2024-25 fiscal year personnel budget. External funding covers $2.2M of these costs.
The increase is due to the following factors:
o The fiscal year 2024-25 budget accounted for the Executive Director position being vacant for 6 months ($145,000)
o Medical premium costs increased 9% ($63,000)
o Four full-time positions were frozen and vacant for 6 months ($555,000) o A proposed Cost of Living Adjustment (COLA) of 6% for all staff ($300,000,see below section on COLA for more details).
• Facilities and Operations $2,171,607: This line item is for operation costs associated with the RCEA offices, information technology, dues and memberships, and costs associated with RCEA-owned or managed assets.
NREN funds will cover $577,720 of these costs for database development, software and memberships. We have also included $60,000 for upgrading financial software.
Staff received several quotes for architectural design and engineering of the planned new construction office building and determined that these services would cost about $1.2M. Staff recommend allocating funds to hire a consultant to look at the long-term financial feasibility of new construction versus purchasing or leasing a more permanent office location ($445,829).
• Communications and Outreach $363,250: This item includes funds for community events, advertising, and required CCE customer mailings. Funds have also been included to research RCEA’s community brand awareness and begin a campaign to increase community knowledge of RCEA and our programs.
NREN will fund $40,000 of this line item.
• Professional and Program Services $9,936,158: This line item includes contracted services for energy scheduling coordination, energy procurement credit fees, data management, legal services, accounting services, regulatory services, as well as grant-specific professional services, including electric vehicle charging station design engineering and installation. Funds have also been budgeted for participation in California Community Power joint actions, a pathway to joint procurement from new renewable energy projects. Funds have been allocated to conduct the Cost-of-Service rate making study. 202
This line item also includes $5.1 million of passthrough funding to NREN partners.
• Incentives and Rebates $1,622,655: This line item is for direct incentives and rebates paid out to CCE and NREN customers and includes $100,000 to continue providing electric vehicle and e-bike rebates. NREN will fund $1.5 million of the total amount, which will include residential and commercial energy efficiency rebates and incentives.
COST OF LIVING ADJUSTMENT (COLA)
Per RCEA’s Board adopted Compensation Policy, staff is directed to prepare a biennial salary survey utilizing labor market agencies and benchmark classifications. In early 2025, RCEA staff, with Board direction, engaged Gallagher Consulting to perform a full classification and compensation study. Staff have delayed the internal biennial salary study pending the results of the third-party classification and compensation study, which is anticipated to be completed by September 2025. Staff proposes to present the results and recommendations to the Board along with the mid-year budget review in early 2026 so that the Board may act on the results of the study with the budget outlook in mind.
In recognition that RCEA salaries have not increased since 2023, Staff recommends a COLA salary adjustment of 6% for all staff, effective July 1, 2025. Staff reviewed the Bureau of Labor Statistics’ Consumer Price Index – All Urban Consumers, West Region (CPI-W) and the Social Security Administration total cost-of-living adjustment (COLA) for 2024 and 2025. The CPI-W increased 5.1% (2.9% in 2024 and 2.2% in 2025), and the Social Security Administration increased 5.6%. (2.5% in 2024 and 2.6% in 2025).
The Cities of Arcata and Eureka provided 5%, 3% and 3% wage increases for 2024, 2025 and 2026 respectively, which indicate that a 6% increase is appropriate.
The Board may also extend this COLA to the Executive Director’s salary schedule. The COLA will be accounted for and reflected in the final class and compensation study results presented to the Board.
SUMMARY OF RESERVES
RCEA’s CCE program guidelines set the cash reserve target at $35M by the end of year five under projected market conditions and a minimum of at least $10M under adverse market conditions. These amounts were meant to reflect cumulative net revenue, considering the other launch goals, including providing customer rate savings and customer-serving programs, and procuring local and renewable energy. The 2021 and 2022 market conditions greatly affected RCEA’s ability to meet these goals.
The Board adopted a reserve policy in January 2025 that defines reserves as RCEA’s unrestricted cash position, and sets a reserve target of 180 days cash on hand based on forecasted annual CCE operating expenses. The target amount must then be maintained over a 12-month period, prior to exploring options for utilizing excess funds. Based on the proposed budget, the current reserve goal is approximately $33.1M.
As of May 9, 2025, RCEA has a cash balance of $37M. However, this amount includes a total of $10.2M in restricted funds leaving a balance of $23.4M of unrestricted cash (reserves).
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The financial model projects that RCEA will have negative net revenue for fiscal years 2026-27 and 2027-28 (-$3.4M and -$3.5M respectively). Energy markets and forecasted retail rates can change drastically during the fiscal year and may change the net revenue projections. However, building cash reserves is crucial to stabilizing rates and continuing operations in the event of actual negative net revenue in the future. To this end, the proposed budget includes allocating $5M net revenue as reserves.
The preliminary draft budget presented at the meeting has been shared with the Board’s Finance Subcommittee and they have made no changes to the proposal.
STAFF RECOMMENDATION
Provide direction to staff on the draft Fiscal Year 2025-2026 budget.
ATTACHMENTS
1. Draft Fiscal Year 2025-26 RCEA Budget
204
Redwood Coast Energy Authority Fiscal Year 2025-2026 Proposed Budget Community
Choice Energy Biomat/FIT REVNet NCRCN RRPG
Proposed New
Programs RCAM
Revenue
State Contracts 277,661 1,245,149
REVNet Sales & LCFS Credits 77,000
Non-government Contracts 1,887
Electricity Sales 73,752,521
Uncollectable Accounts (2,212,576)
Total 71,539,945 - 77,000 277,661 1,245,149 - 1,887
Expense
WHOLESALE POWER SUPPLY
CAISO/Market Participation Costs
Total
Bilateral Costs
Resource Adequacy 9,544,859 5,000
PPA Costs 26,180,427
PPA Revenues (16,027,860)
PCC1 RECs 1,826,772
PCC3 RECs 704,000
Carbon Free Energy 464,406
Total
Sub-total 57,612,586 - - - - - 5,000
PERSONNEL EXPENSES
Payroll
Full-time Salaries 655,230 20,076 15,082 29,865 155,124 150,693 60,242 Part-time Salaries 31,483 - 16,570 - - 14,913 -
Employee Benefits-Insurance 174,925 5,107 4,740 12,278 37,716 48,609 14,570 Paryoll Taxes 58,371 1,706 2,690 2,539 13,186 14,077 5,121 Worker's Comp 3,983 116 184 173 900 961 349
PTO
Total
Other Personnel Costs
Safety - - - - 4,500
Staff Training, Development & Related Travel 30,000 10,000 7,500 Local Mileage 200 200 500 750 100 400
Recruitment & Screening
Administrative Service Fees/Bus Passes
Total
Sub-total 954,191 27,005 39,465 45,355 207,675 239,352 92,682
FACILITIES AND OPERATIONS
Offices/Workstations
Office Supplies
Furniture & Equipment
IT Hardware & Supplies
Software 2,500 400
IT Subcontractors
Office Lease and BOD/CAC Space Rental
Office Utilities & Mobile Phones/Hotspots
Office Maintenance Supplies
Office Maintenance Services
Total
Major Capital Assets
Operations & Maintenance 62,800 167,894
Capital Contributions 5,000 -
Total
Property & Liability Insurance
Dues & Memberships 252,744 815
Sub-total 255,244 - 67,800 - - - 169,109
POWER RESOURCES INFRASTRUCTURE PLANNING and TRANSPORTATION (IP&T)
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Redwood Coast Energy Authority Fiscal Year 2025-2026 Proposed Budget Community
Choice Energy Biomat/FIT REVNet NCRCN RRPG
Proposed New
Programs RCAM
POWER RESOURCES INFRASTRUCTURE PLANNING and TRANSPORTATION (IP&T)
COMMUNICATIONS AND OUTREACH
CCA Account Services
Printing, postage & delivery 90,000
General Events 1,000 1,500 5,000
Outside Professional Services
Sponsorships and Commuity Support
Advertising & Media - - 10,000
Sub-total 91,000 1,500 - 5,000 - 10,000 -
PROFESSIONAL & PROGRAM SERVICES
Regulatory 95,000
Program Related Professional Services 30,000 280,000 1,037,474 CC Power - special projects 390,632
CalCCA - special projects 15,000
NREN Partner Pass-thru
Accounting 100,000
Legal 40,000 4,000
Wholesale Services - TEA 896,946
Procurement Credit - TEA 572,390
Data Management - Calpine 808,002
Customer Billing - PG&E 256,634
Sub-total 3,174,604 30,000 - 284,000 1,037,474 - -
INCENTIVES & REBATES
Developer Fund/Grant Fund Match - 10,000
EV/EVSE/E-bike Incentives to Customers - - - - 100,000
Residential Equipment Efficiency - - - -
Commercial Equipment Efficiency - - - -
Lending Library
Sub-total - - - - - 110,000 -
NON OPERATING COSTS
Sub-total 6,000 - - - - - 120,000
Total Expense 62,093,625 58,505 107,265 334,355 1,245,149 359,352 386,791 Net Income 9,446,320 (58,505) (30,265) (56,694) 0 (359,352) (384,904) Reserves / Rate Stablization 5,000,000
206
Redwood Coast Energy Authority Fiscal Year 2025-2026 Proposed Budget Revenue
State Contracts
REVNet Sales & LCFS Credits
Non-government Contracts
Electricity Sales
Uncollectable Accounts
Total
Expense
WHOLESALE POWER SUPPLY
CAISO/Market Participation Costs
Total
Bilateral Costs
Resource Adequacy
PPA Costs
PPA Revenues
PCC1 RECs
PCC3 RECs
Carbon Free Energy
Total
Sub-total
PERSONNEL EXPENSES
Payroll
Full-time Salaries
Part-time Salaries
Employee Benefits-Insurance
Paryoll Taxes
Worker's Comp
PTO
Total
Other Personnel Costs
Safety
Staff Training, Development & Related Travel
Local Mileage
Recruitment & Screening
Administrative Service Fees/Bus Passes
Total
Sub-total
FACILITIES AND OPERATIONS
Offices/Workstations
Office Supplies
Furniture & Equipment
IT Hardware & Supplies
Software
IT Subcontractors
Office Lease and BOD/CAC Space Rental
Office Utilities & Mobile Phones/Hotspots
Office Maintenance Supplies
Office Maintenance Services
Total
Major Capital Assets
Operations & Maintenance
Capital Contributions
Total
Property & Liability Insurance
Dues & Memberships
Sub-total
NREN
Implementation NREN EMV
NREN
Marketing
PG&E Local
Government
Partnership
Program
Efficiency Lending
Library
7,374,328 163,898 474,799 296,099
7,374,328 163,898 474,799 296,099 -
- - - - -
722,550 4,675 17,256 216,632 13,927
145,268 - 8,029 - -
204,900 1,297 4,501 54,583 4,854
73,765 397 2,149 18,414 1,184
5,033 27 147 1,256 81
22,000 3,213
2,000 2,000
1,175,516 6,397 32,081 296,098 20,046
500
400,000
130,000
530,000 500 - - -
DEMAND-SIDE MANAGEMENT (DSM)
207
Redwood Coast Energy Authority Fiscal Year 2025-2026 Proposed Budget
COMMUNICATIONS AND OUTREACH
CCA Account Services
Printing, postage & delivery
General Events
Outside Professional Services
Sponsorships and Commuity Support
Advertising & Media
Sub-total
PROFESSIONAL & PROGRAM SERVICES
Regulatory
Program Related Professional Services
CC Power - special projects
CalCCA - special projects
NREN Partner Pass-thru
Accounting
Legal
Wholesale Services - TEA
Procurement Credit - TEA
Data Management - Calpine
Customer Billing - PG&E
Sub-total
INCENTIVES & REBATES
Developer Fund/Grant Fund Match
EV/EVSE/E-bike Incentives to Customers
Residential Equipment Efficiency
Commercial Equipment Efficiency
Lending Library
Sub-total
NON OPERATING COSTS
Sub-total
Total Expense
Net Income
Reserves / Rate Stablization
NREN
Implementation NREN EMV
NREN
Marketing
PG&E Local
Government
Partnership
Program
Efficiency Lending
Library
DEMAND-SIDE MANAGEMENT (DSM)
10,000 30,000
10,000 - 30,000 - -
1,147,706 157,000 320,000
3,000,951 92,718
4,148,657 157,000 412,718 - -
949,446
560,709
2,500
1,510,155 - - - 2,500
- - - - -
7,374,328 163,897 474,799 296,098 22,546
0 0 0 0 (22,546)
208
Redwood Coast Energy Authority Fiscal Year 2025-2026 Proposed Budget Revenue
State Contracts
REVNet Sales & LCFS Credits
Non-government Contracts
Electricity Sales
Uncollectable Accounts
Total
Expense
WHOLESALE POWER SUPPLY
CAISO/Market Participation Costs
Total
Bilateral Costs
Resource Adequacy
PPA Costs
PPA Revenues
PCC1 RECs
PCC3 RECs
Carbon Free Energy
Total
Sub-total
PERSONNEL EXPENSES
Payroll
Full-time Salaries
Part-time Salaries
Employee Benefits-Insurance
Paryoll Taxes
Worker's Comp
PTO
Total
Other Personnel Costs
Safety
Staff Training, Development & Related Travel
Local Mileage
Recruitment & Screening
Administrative Service Fees/Bus Passes
Total
Sub-total
FACILITIES AND OPERATIONS
Offices/Workstations
Office Supplies
Furniture & Equipment
IT Hardware & Supplies
Software
IT Subcontractors
Office Lease and BOD/CAC Space Rental
Office Utilities & Mobile Phones/Hotspots
Office Maintenance Supplies
Office Maintenance Services
Total
Major Capital Assets
Operations & Maintenance
Capital Contributions
Total
Property & Liability Insurance
Dues & Memberships
Sub-total
STRATEGIC
PLANNING
CAPE/unfunded
energy planning &
regional
coordination NREN PA TERAS
111,190 1,634,000
- 77,000
851,139 831,458 9,993,607
- 73,752,521
- (2,212,576)
- 851,139 - - 942,648 83,244,552
34,919,982
9,549,859
26,180,427
(16,027,860)
1,826,772
704,000
464,406
22,697,604
- - - - - 57,617,586
130,209 288,183 98,989 1,077,174 3,655,907
12,455 - - 52,040 280,757
34,622 78,662 30,389 490,938 1,202,690
12,126 24,496 8,414 144,470 383,103
827 1,671 574 9,858 26,141
570,434 570,434
6,119,033
5,000 9,500
17,200 4,500 60,000 154,413
500 6,650
64,000 64,000
50,500 50,500
285,063
190,239 410,212 138,366 4,500 2,524,915 6,404,096
1,000 15,300 16,800
13,000 13,000
55,000 55,000
46,220 16,993 119,612 185,725
76,000 476,000
135,000 135,000
81,000 81,000
8,000 8,000
17,000 17,000
987,525
230,694
445,829 450,829
681,523
105,000 105,000
6,000 8,000 397,559
6,000 47,220 - 16,993 1,078,741 2,171,607
GENERAL &
ADMIN
FISCAL YEAR
2025-2026 BUDGET
PROGRAM ADMIN COMMUNITY
STRATEGIES
209
Redwood Coast Energy Authority Fiscal Year 2025-2026 Proposed Budget
COMMUNICATIONS AND OUTREACH
CCA Account Services
Printing, postage & delivery
General Events
Outside Professional Services
Sponsorships and Commuity Support
Advertising & Media
Sub-total
PROFESSIONAL & PROGRAM SERVICES
Regulatory
Program Related Professional Services
CC Power - special projects
CalCCA - special projects
NREN Partner Pass-thru
Accounting
Legal
Wholesale Services - TEA
Procurement Credit - TEA
Data Management - Calpine
Customer Billing - PG&E
Sub-total
INCENTIVES & REBATES
Developer Fund/Grant Fund Match
EV/EVSE/E-bike Incentives to Customers
Residential Equipment Efficiency
Commercial Equipment Efficiency
Lending Library
Sub-total
NON OPERATING COSTS
Sub-total
Total Expense
Net Income
Reserves / Rate Stablization
STRATEGIC
PLANNING
CAPE/unfunded
energy planning &
regional
coordination NREN PA TERAS
GENERAL &
ADMIN
FISCAL YEAR
2025-2026 BUDGET
PROGRAM ADMIN COMMUNITY
STRATEGIES
90,000
17,250 24,750
105,500 105,500
28,000 28,000
65,000 115,000
- - - 215,750 - 363,250
55,000 150,000
247,904 3,220,084
390,632
15,000
55,802 3,149,471
25,000 103,000 228,000
90,000 25,000 90,000 249,000
896,946
572,390
808,002
256,634
55,000 393,706 50,000 - 193,000 9,936,158
10,000
- - - 100,000
- - - 949,446
- - - 560,709
2,500
- - - - - 1,622,655
- - - - 3,200 129,200
251,239 851,138 188,366 237,243 3,799,856 78,244,552
(251,239) 0 (188,366) (237,243) (2,857,208)
5,000,000
-
210
Fiscal Year 2025-26 Draft
Budget
RCEA Annual
Work Goals
Efficient
Internal
Operations
Excellent
Program
Delivery
Community
Engagement
& Planning
Summary
FY 24-25 Adopted
Budget
FY 25-26 Draft
Budget
Revenue $95.4M $83.2M
Expense $81.6M $78.2M
Projected Net
Revenue/ Addition
to Cash Reserves
$13.8M $5M
Revenue
FY 24-25 Adopted
Budget
FY 25-26 Draft
Budget
Electricity Sales $80.4M $71.5M
Grants and Contracts $9M $11.7M
Program Related Service Fees
(REVNet sales, project delay damages)
$5.9M $77,000
Expense
FY 24-25 Adopted
Budget
FY 25-26 Draft
Budget
Wholesale Power Supply $64.8M $57.6M
Personnel $5.4M $6.4M
Facilities and Operations $1.2M $2.2M
Communications and Outreach $276,200 $363,250
Professional and Program
Services
$8.9M $9.9M
Incentives and Rebates $965,605 $1.6M
Non-Operating Costs $129,000 $129,200
• Includes maintaining 0.5% retail rate discount from PG&E • Based on financial modeling from May 5, 2025
• Includes reinstating renewable energy targets for 2026 • TEA recently adjusted their financial modeling, resulting in more accurate load forecasting which decreased RCEA’s expected energy revenue and wholesale power expense
FY 24-25 Adopted
Budget
FY 25-26 Draft
Budget
Electricity Sales $80.4M $71.5M
Wholesale Power Supply $64.8M $57.6M
• External funding covers $2.2M of personnel costs
• No new positions are being requested
• Amount includes staff training and professional development including Board travel ($154K)
• Includes the remaining amount for the class and comp study ($50,000) • The result is a 20% increase from last year ($1M)
• COLA increase of 6% - $300K
• Executive Director position was vacant 6 months - $145K • Medical premiums increased 9% - $63K
• Four vacant positions unfrozen in February - $555,000 FY 24-25 Adopted
Budget
FY 25-26 Draft
Budget
Personnel $5.4M $6.4M
Personnel - COLA
• RCEA’s compensation policy includes a biennial salary survey that would be due this year;
• However, RCEA hired a consultant to perform a full Classification and Compensation study expected to be complete in Sept. 2025 • Results and recommendations will be presented to Board with mid-year budget review
• In recognition that salaries haven’t increased since 2023, Staff propose a cost-of-living (COLA) adjustment for 2024 and 2025, effective July 1 with adoption of the budget.
2024 2025 Total
All Urban Consumers, West Region 2.9% 2.2% 5.1%
Social Security Administration 2.5% 2.6% 5.6%
• External funding covers $577,720 of operations (database, other software, memberships)
• Amount includes new financial software ($60,000)
• Includes part of CalCCA and CC Power membership costs ($252,744) • Includes some consultation/design costs for office building ($445,829) FY 24-25 Adopted
Budget
FY 25-26 Draft
Budget
Facilities and Operations $1.2M $2.17M
• External funds cover $40,000 of the total
• Includes:
• Events
• Advertising
• Required CCE customer mailings
• Research and brand awareness
• Sponsorships of local events
FY 24-25 Adopted
Budget
FY 25-26 Draft
Budget
Communication and Outreach $276,200 $363,250
• External funding covers $6.4M of the total
• NREN contracts ($5.1M)
• Regional Resilience Grant Program (RRGP) contracts ($1.03M) • California Energy Commission North Coast Resilient Charging Network (NCRCN) contracts ($284,000)
• Includes 2024 and 2025 financial audits ($103,000)
• Special projects through CalCCA and CC Power ($320,000) • Includes $100,000 for Cost of Service Rate Making Analysis • Data management/metering, billing, and day-ahead energy procurements/scheduling (TEA) services ($2.5M)
FY 24-25 Adopted
Budget
FY 25-26 Draft
Budget
Professional and Program Services $8.9M $9.9M
• External funding covers $1.5M of the total
• NREN incentives and rebates for Humboldt residential and commercial customers
• Electric Vehicle (EV), residential EV charging equipment, and E-bike rebates ($100,000)
• Caltrans Wayfinding Match funds ($10,000)
FY 24-25 Adopted
Budget
FY 25-26 Draft
Budget
Incentives and Rebates $965,605 $1.6M
Net Revenue Summary
• The proposed budget includes putting all net revenue into Reserves ($5M) • Reserve Policy – 180 days cash on hand ($33.1M proposed) • As of May 9, 2025, the cash balance is $37M.
• This includes $6.3M for CCE operations cash flow,
• $700K for non-CCE operations cash flow,
• $6.6M of pre-paid NREN funding
• Leaves $23.4M of completely unrestricted cash
Looking Forward
• The May 5, 2025 financial model shows negative net revenue for fiscal years 2026-27 and 2027-28 (-$3.4M and -$3.5M respectively) • Building cash reserves is crucial to stabilizing rates and increasing RCEA’s creditworthiness
STAFF REPORT
Agenda Item # 11.1
AGENDA DATE: May 22, 2025
TO: Board of Directors
FROM: Elizabeth Burks, Executive Director
SUBJECT: Executive Director’s Report
SUMMARY
Executive Director Elizabeth Burks will provide updates on topics as needed.
RECOMMENDED ACTION
None. (Information only.)
ATTACHMENT
None.
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