AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER
AGENDA
Meeting of the Finance and Risk Management Committee
San Diego Community Power (Community Power)
Thursday, February 20, 2025
3 p.m.
City of Chula Vista
Council Chambers, 276 Fourth Avenue, Chula Vista, CA
The meeting will be held in person at the above date, time and location. Finance and Risk Management Committee (FRMC) Members and members of the public may attend in person. Under certain circumstances, FRMC Members may also attend and participate in the meeting virtually pursuant to the Brown Act (Gov.
Code § 54953). As a convenience to the public, Community Power provides a call-in option and internet-based option for members of the public to virtually observe and provide public comments at its meetings. Additional details on in-person and virtual public participation are below. Please note that, in the event of a technical issue causing a disruption in the call-in option or internet-based option, the meeting will continue unless otherwise required by law, such as when an FRMC Member is attending the meeting virtually pursuant to certain provisions of the Brown Act.
Note: Any member of the public may provide comments to the FRMC on any agenda item. When providing comments, it is requested that you provide your name and city of residence for the record. Commenters are requested to address their comments to the FRMC as a whole through the Chair. Comments may be provided in one of the following manners:
1. Providing oral comments during the meeting. Anyone attending in person desiring to address the FRMC is asked to fill out a speaker’s slip and present it to the Clerk of the Board. To provide remote comments during the meeting, join the Zoom meeting by computer, mobile phone, or dial-in number. On Zoom video conference by computer or mobile phone, use the “Raise Hand” feature.
This will notify the moderator that you wish to speak during a specific item on the agenda or during non-agenda Public Comment. Members of the public will not be shown on video but will be able to speak when called upon. If joining the meeting using the Zoom dial-in number, you can raise your hand by pressing *9. Comments will be limited to three (3) minutes.
2. Written Comments. Written public comments must be submitted prior to the start of the meeting to [email protected]. Please indicate a specific agenda item when submitting your comment. All written comments received prior to the meeting will be provided to the FRMC 1 AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER
members. In the discretion of the Chair, the first ten (10) submitted comments shall be stated into the record of the meeting. Comments read at the meeting will be limited to the first 400 words. Comments received after the start of the meeting will be collected, sent to the FRMC members, and be part of the public record.
If you have anything that you wish to be distributed to the FRMC, please provide it via [email protected], who will distribute the information to the Members.
The public may participate using the following remote options:
Teleconference Meeting Webinar
https://sdcommunitypower-org.zoom.us/j/95148519712
Telephone (Audio Only) (669) 900-6833 or (253) 215-8782 | Webinar ID:
95148519712
WELCOME
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED ON THE AGENDA
PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
Opportunity for members of the public to address the FRMC on any items not on the agenda but within the jurisdiction of the FRMC. Members of the public may provide a comment in any manner described above.
CONSENT CALENDAR
1. Approve January 16, 2025, Meeting Minutes
2 AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER
REGULAR AGENDA
2. Amendment of the FY 2024-25 Operating Budget, the FY 2024-25 Capital Budget, and the FY 2025-29 Capital Investment Plan
Recommendation: Recommend Board approval to amend the FY 2024-2025 Operating Budget, the FY 2024-2025 Capital Budget, and the FY 2025-2029 Capital Investment Plan.
3. Treasurer’s Report for Period Ending December 31, 2024 Recommendation: Receive and File Treasurer's Report for Period Ending December 31, 2024.
Committee Member Announcements
FRMC Members may briefly provide information to other members and the public.
There is to be no discussion or action taken on comments made by FRMC Members unless authorized by law.
ADJOURNMENT
The Finance and Risk Management Committee will adjourn to the next regular meeting scheduled on March 20, 2025, at 3 pm.
Compliance with the Americans with Disabilities Act
Community Power Committee meetings comply with the protections and prohibitions of the Americans with Disabilities Act. Individuals with a disability who require a modification or accommodation, including auxiliary aids or services, in order to participate in a public meeting may contact [email protected].
Requests for disability-related modifications or accommodations require different lead times and should be provided at least 72-hours in advance of the public meeting.
Availability of Committee Documents
Copies of the agenda and related materials are available at https://sdcommunitypower.org/resources/meeting-notes/. Late-arriving documents related to an agenda item, which are distributed to a majority of the Committee Members prior to or during the Committee meeting are available for public review as required by law. Public records, including agenda-related documents, can be requested electronically at [email protected] or by mail to SD Community Power, PO BOX 12716, San Diego, CA 92112. The documents may also be posted at Community Power’s website. Such public records are also available for inspection by contacting [email protected] to arrange an appointment.
3 MEETING MINUTES – FINANCE AND RISK MANAGEMENT COMMITTEE –COMMUNITY POWER– JANUARY 16, 2025
FINANCE AND RISK MANAGEMENT COMMITTEE
SAN DIEGO COMMUNITY POWER (COMMUNITY POWER)
City of Chula Vista
Council Chambers, 276 Fourth Avenue, Chula Vista, CA
Regular Meeting Minutes
January 16, 2025
______________________________________________________________________
WELCOME
CALL TO ORDER
Interim Chair Aguirre called the Finance and Risk Management Committee meeting to order at 3:04 p.m.
ROLL CALL
PRESENT: Interim Chair Aguirre, City of Imperial Beach and Director Yamane, City of National City
ABSENT: None
STAFF: Chief Financial Officer/Treasurer Washington; General Counsel Tyagi; Senior Director of Data Analytics and Customer Operations Utouh; Rates and Strategy Manager Lu; Clerk of the Board Hernandez; and Assistant Clerk of the Board Vences
PLEDGE OF ALLEGIANCE
Interim Chair Aguirre led the Pledge of Allegiance.
ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED ON THE AGENDA There were no items added, withdrawn, or reordered on the agenda.
PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
There were no public comments.
4 MEETING MINUTES – FINANCE AND RISK MANAGEMENT COMMITTEE –COMMUNITY POWER– JANUARY 16, 2025
CONSENT CALENDAR
1. Approve October 17, 2024, Meeting Minutes
2. Approval of 2025 Meeting Schedule for San Diego Community Power (Community Power) Finance and Risk Management Committee There were no public comments on Consent Item Nos. 1-2.
Motioned by Director Yamane and seconded by Interim Chair Aguirre to approve Consent Item Nos. 1-2. The motion carried unanimously as follows:
AYES: Interim Chair Aguirre and Director Yamane
NOES: None
ABSTAINED: None
ABSENT: None
REGULAR AGENDA
3. Approve a Contract with Maher Accountancy for General Accounting Professional Services in an Amount Not-to-Exceed $1,131,000 from February 1, 2025, through January 31, 2027, and for Two Optional One-Year Extensions in an Amount Not-to-Exceed $377,000 Each Respective Year, and Authorize the Chief Executive Officer to Execute the Contract Dr. Washington presented an overview of a proposed contract with Maher Accountancy for General Accounting Professional Services.
There were no public comments on Item No. 3.
Director Yamane reminded Dr. Washington that the contract expiration year should be 2028. Dr. Washington concurred with Director Yamane and shared that when this item is presented to the Board, the year would be corrected to 2028 to align the three-year initial period.
Following Committee questions, discussion and comments, Director Yamane motioned and seconded by Interim Chair Aguirre to recommend Board approve a contract with Maher Accountancy for General Accounting Professional Services in an Amount Not-to-Exceed $1,131,000 from February 1, 2025, through January 31, 2028, and for Two Optional One-Year Extensions in an Amount Not-to-Exceed $377,000 for Each Respective Year, and, Authorize the Chief Executive Officer to Execute the Contract. The motion carried unanimously as follows:
AYES: Interim Chair Aguirre and Director Yamane
NOES: None
5 MEETING MINUTES – FINANCE AND RISK MANAGEMENT COMMITTEE –COMMUNITY POWER– JANUARY 16, 2025 ABSTAINED: None
ABSENT: None
4. Review of Treasurer’s Report for Period Ending November 30, 2024 Dr. Washington presented the Treasurer’s Report for Period Ending November 30, 2024.
There were no public comments on Item No. 4.
Committee members received and filed Item No. 4.
5. Update on 2025 Projected Rate Changes
Mr. Utouh and Mr. Lu provided an update on 2025 Projected Rate Changes.
There were no public comments on Item No. 5.
Committee members received and filed Item No. 5.
Committee Member Announcements
None.
ADJOURNMENT
The Finance and Risk Management Committee meeting was adjourned at 3:26 p.m. to the next Finance and Risk Management Committee meeting scheduled on Thursday, February 20, 2025.
____________________________________
Sandra Vences, Assistant Clerk of the Board
6 SAN DIEGO COMMUNITY POWER
Staff Report – Item 2
-------------------------------------------------------------------------------------------------------------------- TO: Finance and Risk Management Committee
FROM: Dr. Eric W. Washington, Chief Financial Officer/Treasurer VIA: Karin Burns, Chief Executive Officer
SUBJECT: Amendment of the FY 2024-25 Operating Budget, the FY 2024-25 Capital Budget, and the FY 2025-29 Capital Investment Plan DATE: February 20, 2025
-------------------------------------------------------------------------------------------------------------------- RECOMMENDATION:
Recommend Board approval to amend the FY 2024-2025 Operating Budget, the FY 2024-2025 Capital Budget, and the FY 2025-2029 Capital Investment Plan.
BACKGROUND:
On October 1, 2019, the Founding Members of San Diego Community Power (Community Power) adopted the Joint Powers Agreement which was amended and restated on December 16, 2021 (JPA). Section 4.6.2 of the JPA specifies that the Community Power Board of Directors (Board) shall adopt an annual budget prior to the commencement of the fiscal year. The Community Power fiscal year runs from July 1 to June 30.
Section 7.3.1 of the JPA specifies that the Board may revise the budget from time to time as may be necessary to address contingencies and unexpected expenses. On June 27, 2024, the Board approved the FY 2024-25 Operating Budget which included net revenue of $1,177,925,889 and total expenses of $1,127,468,231, resulting in a net position of $34,006,627.
The FY 2024-25 Operating Budget has undergone substantial revisions to both operating revenues and expenses. Notably, on February 7, 2025, the Board approved a retroactive rate adjustment, effective February 1, 2025. This adjustment incorporates increased revenue and energy cost projections. Further budget modifications include reductions in non-energy expenditures across personnel, professional services and consultants, marketing and outreach, and general and administrative functions. These adjustments reflect updated staffing timelines, alignment of professional service costs with known needs, reallocation of resources within the capital investment plan and proactive fiscal management of general and administrative expenses.
7 Staff therefore recommends approving an amendment to the FY 2024-25 Operating Budget to increase total net operating revenues to $1,221,258,172 and total expenses to $1,187,090,169, resulting in a net position of $34,168,003 for FY 2024-25. Additionally, staff recommend approving an amendment to the FY 2024-25 Capital Budget to increase total expenses to $144,212,340 and an amendment to the FY 2025-29 Capital Investment Plan to $155,910,762.
ANALYSIS AND DISCUSSION
Proposed Amended FY 2024-25 Operating Budget
The amendment to the FY 2024-25 Operating Budget updates the original budget presented to the Board in June 2024. This amendment reflects a substantial increase in projected revenues (accounting for a decrease in projected uncollectibles) and rising energy costs. The budget incorporates the rate change approved by the Board on February 7, 2025, and aligns with the Community Power’s most recent projections.
Furthermore, it reduces non-energy costs by 5.6% ($3 million) and allocates $3 million to the Capital Investment Plan. This allocation will further support the highly successful solar battery savings program, which continues to sustain high customer demand.
Table 1 illustrates the proposed amendment to the FY 2024-25 Operating Budget in comparison to Community Power’s operating budgets from prior years.
Table 1. Community Power Operating Budgets
The proposed, amended FY 2024-25 Operating Budget includes the key assumptions outlined below. A more detailed breakdown and explanation of revenues and expenses are presented in Attachment A.
Budget Net Revenues Total Cost Net Position
FY 2021 Approved $22,632,170 $37,310,047 ($14,677,877)
FY 2021 Amendment $26,286,909 $34,135,000 ($7,848,091)
FY 2022 Approved $315,137,651 $297,409,999 $17,727,652
FY 2022 Amendment $378,053,506 $342,177,063 $35,876,443 FY 2023 Approved $708,984,646 $695,936,815 $13,047,831
FY 2023 Amendment $929,791,929 $772,078,709 $157,713,220 FY 2024 Approved $1,292,472,530 $1,002,038,710 $290,433,820 FY 2024 Amendment $1,304,274,067 $1,071,601,284 $232,672,783 FY 2025 Approved $1,177,925,889 $1,143,919,261 $34,006,627 FY 2025 Amendment (Proposed) $1,221,258,172 $1,187,090,169 $34,168,003 8 Net Revenue
Community Power’s main source of revenue currently is from the retail sale of electricity to its customers. Generally, retail sales are calculated based on customer load (i.e. customer energy usage) multiplied by the associated rate class of the customer. The Board recently approved rate changes during its February 7, 2025, meeting, which became effective on February 1, 2025. Revenue budgeted for FY 2024-25 reflects a full fiscal cycle of retail sales to our commercial and industrial customer base and retail sales to our residential customer base.
Additional assumptions for net operating revenue include:
• Enrollment of customers is complete from member jurisdictions in Phases 1, 2, 3 and 4.
• 95% participation rate across all jurisdictions.
• A 1.75% uncollectible rate which is a decrease from the 4.5% uncollectible rate assumed in the adopted budget.
• Rates were approved by the Board on February 7, 2025, and were retroactive to February 1, 2025.
• Community Power’s default PowerOn service is 3% less expensive compared to San Diego Gas and Electric’s (SDG&E) generation rates and the PowerBase service electricity generation rate is 5% less expensive than SDG&E’s generation rates.
• Power100 and Power100 Green-e Certified maintain premiums of $0.01/kWh and $0.02/kWh, respectively.
• Further mid-year rate changes are subject to Board approval.
Cost of Energy
The cost of energy, the largest cost in Community Power’s budget, has increased from $1,073.7 million in the adopted FY 2024-25 Operating Budget to $1,116.8 million in the amended FY 2024-25 Operating Budget. The largest drivers of energy costs going up are increases to renewable costs and increases to resource adequacy costs.
The California Public Utilities Commission publishes annual market-price benchmarks (MPBs) that estimate the average market price and noted that the MPB for Renewables increased from $54.56/MWh in 2024 to $71.24/MWh in 2025. Similarly, the MPB for resource adequacy (system) increased from $26.26/MWh in 2024 to $40.32/MWh in 2025; taken together, increases in renewable and resource adequacy costs translated into an increase in energy costs for Community Power.
Operating Expenses
Community Power’s non-energy operating expenses fall into four categories: personnel , professional services and consultants, marketing and outreach, and general and administrative. Community Power generally has direct control of these costs and actively manages them. Overall, the proposed, amended FY 2024-25 Operating Budget includes an overall savings of 5.6% from $53.8 million to $50.8 million in non-energy expenses.
Given that Community Power’s non-energy operating expenses are a small percentage 9 of total expenses, non-energy operating expenses had a minimal impact on the overall total expense. Expense assumptions include the following:
• Personnel include salaries, payroll taxes, benefits, and excused absence and paid time off for staff. The recruitment strategy includes increasing staffing levels to 87 (instead of eighty in the adopted budget) by the end of FY 2024-25. • Professional Services and Consultants include SDG&E fees, data management fees from Calpine, technical support (for rate setting, load analysis, energy scheduling, etc.), legal/regulatory services and other general contracts related to IT services, audits, and accounting services. • Marketing and Outreach includes expenses for communication consultants, mailers, printing, sponsorships, and partnerships to educate the community about Community Power as well as support local community events and programs. • General and Administration budget covers the cost of office space, equipment, membership dues, and other general operational costs.
Net Position
The proposed, amended FY 2024-25 Operating Budget results in a net position of $34,168,003.
The following table illustrates Community Power’s proposed, amended FY 2024-25 Operating Budget compared to its adopted FY 2024-25 Operating Budget.
Table 2. Amended FY 2024-25 Operating Budget compared to Adopted FY 2024-25 Operating Budget
Item FY25 Approved Budget FY25 Amendment (Proposed) Difference Revenue
Gross Ratepayer Revenues $1,233,430,250 $1,243,010,863 $9,580,613 (Less 1.75%* Uncollectible ) $55,504,361 $21,752,690 ($33,751,671) Net Revenue $1,177,925,889 $1,221,258,172 $43,332,284
Expenditures
Cost of Energy $1,073,648,137 $1,116,836,549 $43,188,412 Non-Energy $53,820,095 $50,802,590 ($3,017,505)
Subtotal Operating Expense $1,127,468,231 $1,167,639,139 $40,170,908 Debt Service $1,276,000 $1,276,000 $0
CIP Transfer $15,175,030 $18,175,030 $3,000,000
Total Expense $1,143,919,261 $1,187,090,169 $3,000,000
Net Position $34,006,627 $34,168,003 $161,376
10 Proposed Amended FY 2024-25 Capital Budget and FY 2025-29 CIP The Community Power Capital Investment Plan (CIP) contains the individual capital projects, major equipment purchases, and major programs for the agency that are intended to span multiple years and that are considered one-time projects rather than recurring projects. The first year of the FY 2025-29 CIP is Community Power’s FY 2024- 25 Capital Budget.
The proposed, amended FY 2024-25 Operating Budget proposes $3.0 million as a one-time portion of net operating revenues be transferred to the CIP, and that any unspent funds remain in the CIP and carried forward to the subsequent fiscal year.
The approved FY 2024-25 Capital Budget totals $16.4 million, while the approved FY 2025-29 Capital Improvement Program (CIP) totals $20.3 million. Which includes, $3.9 million in unspent continuing funds, previously appropriated by the Board, are carried forward as revenue.
The proposed amended FY 2024-25 Capital Budget would increase to $143.7 million, and the FY 2025-29 CIP would increase to $147.6 million. These increases include:
• $3.0 million contribution from the operating budget to provide additional funding for the Solar Battery Savings Program in FY 2024-25.
• $124.3 million in external CPUC funding for the Regional Energy Network (REN), previously approved and appropriated by the Board on January 23, 2025.
Budget Development Timeline
On July 28, 2022, the Board adopted a budget development schedule as part of the SDCP Budget Policy. This development schedule includes a mid-year budget review through the proposed budget amendment.
Table 3. Current Budget Development Schedule
11 FISCAL IMPACT:
The amended FY 2024-25 Operating Budget aligns revenues with the rate increase approved by the Board on February 7, 2025, effective February 1, 2025. The amendment also incorporates higher energy costs, adjusts expenses for known personnel, marketing, communications, professional services, and general and administrative costs, and includes a savings in non-operating expenses of 5.6% or $3 million. Revenues increase by 3.7% or $43.3 million, while the cost of energy increases by 4% or $43.2 million. The contribution to community programs, in particular with the Solar Battery Savings Program, through the CIP increases by $3 million. The net position increases by $161,376, resulting in an overall reduction in the budget.
ATTACHMENTS:
Attachment A: Amendment of the FY 2024-25 Operating Budget, the FY 2024-25 Capital Budget, and the FY 2025-29 Capital Investment Plan
12 ITEM 2
ATTACHMENT A
13 FISCAL YEAR 2024-25 AMENDED
BUDGET
for the period
July 1, 2024,
through
June 30, 2025
14 2
TABLE 1: FY2024-25 BUDGET AMENDMENT
San Diego Community Power
Budget Amendment for FY 2024-25 (Proposed)
Supplemental Details
OPERATING REVENUES
FY 2024-25
Adopted Budget
FY 2024-25
Revised Budget
FY 2024-25
Amended Budget
% of Net
Revenues
Gross Ratepayer Revenues $ 1,233,430,250 $ 1,233,430,250 $ 1,243,010,863 (Less Uncollectible Customer Accounts) $ (55,504,361) $ (55,504,361) $ (21,752,690) Net Operating Revenues $ 1,177,925,889 $ 1,177,925,889 $ 1,221,258,172 100.0%
COST OF ENERGY
Cost of Energy $ 1,073,648,137 $ 1,073,648,137 $ 1,116,836,549 Total Cost of Energy $ 1,073,648,137 $ 1,073,648,137 $ 1,116,836,549 91.4% Gross Net Position $ 104,277,752 $ 104,277,752 $ 104,421,623 8.6%
OPERATING EXPENSES
Professional Services and Consultants
Data Management $ 14,575,524 $ 14,575,524 $ 14,569,264
SDG&E Fees $ 3,435,746 $ 3,435,746 $ 3,435,746
Technical Support $ 1,998,333 $ 1,998,333 $ 2,098,333
Legal/Regulatory $ 2,088,000 $ 2,088,000 $ 2,138,000
Other Services $ 2,701,628 $ 2,701,628 $ 2,104,999
Total Prof. Svcs. Costs $ 24,799,232 $ 24,799,232 $ 24,346,342 2.0% Personnel Costs
Salaries $ 15,065,155 $ 15,065,155 $ 14,988,227
Benefits (retirement/health) $ 2,483,394 $ 2,483,394 $ 2,549,522 Payroll Taxes $ 1,021,494 $ 1,021,494 $ 1,030,146
Total Personnel Costs $ 18,570,043 $ 18,570,043 $ 18,567,895 1.5% Marketing and Outreach
Printing $ 1,193,954 $ 1,193,954 $ 1,107,143
Sponsorships/Local Memberships $ 1,146,450 $ 1,146,450 $ 1,201,450 Marketing and Communications $ 670,000 $ 670,000 $ 670,000 Total Mrktg and Outreach Costs $ 3,010,404 $ 3,010,404 $ 2,978,593 0.2% General and Administration
Other G & A $ 6,189,744 $ 6,189,744 $ 3,629,255
Cal CCA Dues $ 460,000 $ 460,000 $ 460,000
Rent $ 723,080 $ 723,080 $ 744,264
Insurance $ 67,592 $ 67,592 $ 67,592
Total G & A Costs $ 7,440,416 $ 7,440,416 $ 4,901,111 0.4% Net Operating Expenses $ 53,820,095 $ 53,820,095 $ 50,793,940 4.2% Total Operating Expenses $ 1,127,468,231 $ 1,127,468,231 $ 1,167,630,489 95.6% Operating Income (Loss) $ 50,457,657 $ 50,457,657 $ 53,627,683 4.4%
NON-OPERATING REVENUES (EXPENSES)
Investment income $ - $ - $ -
Interest and Related Expenses $ (1,276,000) $ (1,276,000) $ (1,276,000) Transfer to Capital Investment Program $ (15,200,000) $ (15,200,000) $ (18,200,000) Total Non-Operating Revenues (Expenses) $ (16,476,000) $ (16,476,000) $ (19,476,000) -1.6% CHANGE IN NET POSITION $ 33,981,657 $ 33,981,657 $ 34,151,683 2.8% 15 3
Budget Amendment Overview
Budget-in Brief
The proposed FY 2024-25 Operating Budget Amendment is the first full fiscal year of full enrollment from Phases 1, 2, 3 and 4 for all ratepayers, inclusive of net-energy metering customers, from Community Power’s member jurisdictions within the San Diego region. This budget therefore provides the first representation in the agency’s history of what full revenues and expenses are expected to be moving forward.
As Community Power has scaled to full enrollment, the agency is thoughtfully scaling the agency by adding 7 staff to grow from 80 to 87 total staff. By the end of FY 2024-25, Community Power is expected to have a similar operating budget and staffing levels compared to its peer CCAs of similar customer and load size. Additionally, and similarly, by the end of FY 2024-25, Community Power’s reserves and total liquidity are expected to be comparable to its CCA counterparts who have investment-grade credit ratings.
The proposed FY 2024-25 Operating Budget Amendment additionally contains savings in all non-energy operating budget categories including reduced general and administration, professional services and consultants, and personnel costs. Even more, revenue has significantly increased due to estimated reduction in uncollectible rates decreasing from 4.5% to
1.75%, reflecting a reduction in projected arrearages.
The cost of energy, the largest cost in Community Power’s budget, has increased from $1,073.7 million in the FY 2024-25 Adopted Budget to $1,116.8 million in the FY 2024-25 Operating Budget Amendment. The largest drivers of energy costs going up are increases to renewable costs and increases to resource adequacy costs. The California Public Utilities Commission publishes annual market-price benchmarks (MPBs) that estimate the average market price and noted that the MPB for Renewables increased from $54.56/MWh in 2024 to $71.24/MWh in 2025. Similarly, the MPB for resource adequacy (system) increased from $26.26/MWh in 2024 to $40.32/MWh in 2025; taken together, increases in renewable and resource adequacy costs translated to an increase in energy costs for Community Power.
Lastly, this budget continues to include the Community Power Capital Investment Plan (CIP) that contains one-time revenue and one-time expenses for programs and projects over multi-year periods, including one-time operating investments from the operating budget to the CIP.
Notable adjustments include a $3.0 million contribution from the Operating Budget to the Solar Battery Savings Program and the approval of $124.3M in external funding for the Regional Energy Network (REN). The first year of the CIP represents Community Power’s Capital Budget.
By the end of FY 2024-25, Community Power will be on track to nearly hitting its 180-days cash on hand Strategic Plan Goal reserve target and expects to achieve this target by October 2025. 16 4
Proposed Budget Amendment
The Community Power FY 2024-25 (FY25) Proposed Budget Amendment is presented in further detail in the following pages. The table below summarizes the revenue and expense budgets adopted for FY25 in comparison to the proposed FY25 Amended Budget.
TABLE 2: OPERATING BUDGET OVERVIEW
FY25 Adopted FY25 Revised1 FY25 Amended
Gross Revenue 1,233.4 1,233.4 1,243.0
Less Uncollectible Accounts (55.5) (55.5) (21.8)
Net Operating Revenues 1,177.9 1,177.9 1,221.3
Cost of Energy 1,073.7 1,073.7 1,116.8
Non-Energy Costs 53.8 53.8 50.8
Subtotal Operating Expense 1,127.5 1,127.5 1,167.6
Debt Service 1.3 1.3 1.3
CIP 15.2 15.2 18.5
Total Expenses 16.5 16.5 19.8
Net Position 33.9 33.9 33.9
Amounts displayed in millions, $
1 The revised column reflects actions taken by the Community Power Board of Directors prior to the budget amendment, including the approval of the Regional Energy Network on January 23, 2025. 17 5
Operating Revenue
Community Power’s main source of revenue currently is from the retail sale of electricity to its customers. Revenue budgeted for FY 2024-25 reflects a full fiscal cycle of retail sales to our commercial and industrial customer base and retail sales to our residential customer base.
Generally, retail sales are calculated based on customer load (i.e. customer energy usage) multiplied by the associated rate class of the customer.
Additional assumptions for net operating revenue include:
a. Enrollment of customers is complete from member jurisdictions in Phases 1, 2, 3 and 4.
b. 95% participation rate across all jurisdictions.
c. A 1.75% uncollectible rate which is a decrease from the 4.5% uncollectible rate assumed in the adopted budget.
• Rates were approved by the Board on February 7, 2025, and were retroactive to February 1, 2025.
• Community Power’s default PowerOn service is 3% less expensive compared to San Diego Gas and Electric’s (SDG&E) generation rates and the PowerBase service electricity generation rate is 5% less expensive than SDG&E’s generation rates. • Power100 and Power100 Green-e Certified maintain premiums of $0.01/kWh and $0.02/kWh, respectively.
d. Further mid-year rate changes are subject to Board approval.
The following table summarizes the revenues for FY25 Amended Budget and the FY25 Adopted Operating Budget. Note that Gross Revenue and Less Uncollectible Accounts are based on projected numbers from rate setting that was approved by the Board on February 7, 2025.
TABLE 3: OPERATING REVENUE BY BUDGET LEVEL 2
FY25 Adopted FY25 Revised FY25 Amended
Gross Ratepayer Revenues 1,233.4 1,233.4 1,243.0
(Less Uncollectible Customer
Accounts)2 (55.5) (55.5) (21.8)
Net Operating Revenues 1,177.9 1,177.9 1,221.3
Amounts displayed in millions, $
2 The amendment to the FY25 budget reduces the adopted assumption for uncollectible accounts from 4.5% to
1.75%.
18 6
Operating Expenses
Expenses in the Community Power Operating Budget fall into five budget level 2 categories:
cost of energy, personnel costs, professional services and consultants, marketing and outreach, and general and administration.
• Cost of Energy – Cost of Energy includes all the various services purchased from the power market through our suppliers. This includes purchased energy, capacity, CAISO fees and other miscellaneous power market expenses.
• Personnel – Personnel costs include salaries, payroll taxes, benefits, and excused absence and paid time off for staff. In addition, costs include assumptions from the Board adopted compensation policy including potential merit and cost-of-living increase. • Professional services and consultants
o Legal/Regulatory Services – Community Power retains legal counsel to assist with the complex aspects of the regulatory, compliance, power supply contract negotiations and its general legal needs. This line item will also allow for the retention of both a state and federal lobbyist to support Community Power’s legislative and regulatory efforts.
o Technical Support – Community Power engages consultants to assist with rate setting, policies, joint-rate comparisons with the IOU, load analysis, and a scheduling coordinator. After electric power is scheduled for delivery to customers and consumed by those customers, the actual electric consumption must be trued up against the forecasted and scheduled energy. This true-up occurs through the settlement process. Settlements also entail addressing several other market and regulatory requirements. As Community Power grows its internal staff, it will look to continue to in-house portions of this service. o Other Services – Community Power contracts or plans to contract for Audit services (data and financial), Accounting services, and other services as needed.
Community Power continues to examine if these services are more cost effective or efficient to bring in-house. As Community Power expands its in-house functions, Community Power expects a reduction in the related professional services support areas.
o SDG&E Service Fees – Service fees paid to SDG&E consist of a charge of a fixed fee per account per month. The fees cover SDG&E’s costs associated with meter reading additional data processing and bill coordination as mandated and regulated by the California Public Utilities Commission (CPUC). There are also numerous small fees associated with data requests.
19 7
o Data Management – Broad scope of services that includes all “back office” billing data validation, bill coordination with SDG&E, call center services and billing technical support, customer enrollment database management, move- in/move-out services, customer research for enrollment support, and many support functions related to data reporting.
• Marketing and Outreach – Marketing and Outreach involves promoting Community Power services and engaging with the community through campaigns, public relations, events, and educational programs to increase awareness, drive customer enrollment, and build positive relationships. It also includes outreach to underserved communities to ensure equitable access to Community Power’s clean, renewable energy services.
• General and Administration – General and Administration costs include leasing office space, industry fees or memberships (e.g., CalCCA dues), equipment and software, as well as other general operational costs including Board and Committee expenses, Board stipends, staff travel or professional development, team building, etc.
The table below summarizes the expenses for the FY25 Amended Budget and the FY25 Adopted Operating Budget. Note that Community Power reduced expenses in non-energy costs.
TABLE 4: OPERATING EXPENSES BY BUDGET LEVEL 2
FY25 Adopted FY25 Revised FY25 Amended
Cost of Energy 1,073.7 1,073.7 1,116.8
Professional Services and
Consultants 24.8 24.8 24.3
Personnel Costs 18.6 18.6 18.6
Marketing and Outreach 3.0 3.0 3.0
General and Administration 7.4 7.4 4.9
Subtotal Operating Expenses 1,127.5 1,127.5 1,167.6
Interest and Related Expenses 1.3 1.3 1.3
Capital Investment Program
(Transfer Out) 15.2 15.2 18.2
20 8
Total Expenses 1,111.0 1,111.0 1,147.3
Amounts displayed in millions, $
Non-Operating Revenues (Expenses)
Non-operating revenue represents interest income earned on cash reserves. Non-operating expenses represent interest paid on borrowed funds under the bank credit facility maintained by Community Power used to finance a portion of its operations. Expenses also include other bank related fees (i.e., letter of credit issuance fees, renewal fees, etc.).
Community Power Capital Investment Program (CIP)
Continuing in FY 2024-25 is the CIP for FY 2025-29 which will contain all the individual capital projects, major equipment purchases, and major programs for the agency that are intended to span multiple years and that are considered one-time projects rather than recurring projects. The first year of the FY 2025-29 CIP is Community Power’s capital budget.
The FY 2024-25 operating budget amendment proposes $3.0 million as a one-time portion of net operating revenues be transferred to the CIP, and that unspent funds are kept within the CIP and carried forward to the subsequent fiscal year.
The CIP includes funding for local development feasibility studies, customer program pilot projects, member agency grants, community grants, a customer education platform, and other community-focused areas.
The proposed amended FY2024-25 Capital Budget totals $143.7 million, and the proposed amended FY 2025-29 CIP totals $155.4 million, which $7.8 million is subject to Board approval during the annual budget process and are subject to change. Additionally, $3.9 million in unspent continuing funds were appropriated by the Board in prior fiscal years and is represented as Carryforward revenue.
21 9
The FY25 Budget Amendment includes an increase in the capital budget and CIP resulting from:
1. Proposed $3.0 million contribution from the operating budget to provide additional funding for the Solar Battery Savings Program.
2. $124.3M in external CPUC funding for the Regional Energy Network (REN), previously approved and appropriated by the Board on January 23, 2025.
TABLE 5: FY 2025-2029 CIP BUDGET APPROPRIATION
Carryforward3 FY25 Adopted FY25 Revised FY25 Amended
Operating Transfer Out - 15.2 15.2 18.2
Operating Transfer In 3.2 15.2 15.2 18.2
DAC-GT CSGT - 0.5 0.5 0.5
Energy Efficiency - 0.7 125.0 125.0
CDFA Healthy
Refrigeration Grant
Program
0.7 - - -
Total CIP Revenue 3.9 16.4 140.7 143.7
Amounts displayed in millions, $
3 Carryforward has been trued-up since the adopted budget. 22 10
TABLE 6: FY 2025-29 CIP BUDGET EXPENSES BY PROGRAM TYPE Carryforward FY25 Adopted FY25 Revised FY25 Amended
Energy Awareness and
Education - 0.0 0.0 0.0
Application Assistance - 0.3 0.3 0.3
Disadvantaged
Communities Green
Tariff and Community
Solar Green Tariff
- 0.5 0.5 0.5
Pilot Programs 2.2 1.0 1.0 1.0
Grant Programs 0.6 0.2 0.2 0.2
Distributed Energy
Resources: Energy
Storage Systems
0.3 10.6 10.6 13.6
Energy Efficiency 0.7 0.7 125.0 125.0
Flexible Load 0.1 0.5 0.5 0.5
Information
Technology: Upgrades - 2.6 2.6 2.6
Total CIP Expenses 3.9 16.4 140.7 143.7
Amounts displayed in millions, $
23 11
TABLE 7: FY 2025-29 CIP PROGRAMS AND PROJECTS
Carryforward FY25 Amended FY26 FY27 FY28 FY29 Total
Energy Awareness and
Education - 0.0 - - - - 0.0
Application Assistance - 0.3 - - - - 0.3
Disadvantaged Communities
Green Tariff and Community
Solar Green Tariff
- 0.5 0.5 0.5 0.5 0.5 2.5
Pilot Programs 2.2 1.0 - - - - 3.2
Grant Programs 0.6 0.2 - - - - 0.6
Distributed Energy
Resources: Energy Storage
Systems
0.3 13.6 - - - - 13.9
Energy Efficiency 0.7 125.0 0.7 0.7 0.7 0.7 128.5
Flexible Load 0.1 0.5 - - - - 0.6
Information Technology:
Upgrades - 2.6 1.6 1.4 - - 5.6
Total CIP Expenses 3.9 143.7 2.8 2.6 1.2 1.2 155.4
Amounts displayed in millions, $
24 12
Operating Expenses by Department
The table below summarizes the FY25 Proposed Operating Budget expenses by department.
All personnel costs including fringe benefits are included in the Operations department.
Departments were established as part of the FY25 Operating Budget and are not shown in the prior year. The Power Services department includes Cost of Energy in their Expenses.
TABLE 8: OPERATING EXPENSES BY DEPARTMENT
FY25 Adopted FY25 Revised FY25 Amended
Power Services 1,075.6 1,075.6 1,118.9
Executive 0.2 0.2 0.2
Operations 22.5 22.5 20.6
Finance 3.5 3.5 2.1
Customer Operations 19.3 19.3 19.3
Data Analytics and IT 1.4 1.4 1.4
Public Affairs 1.8 1.8 1.8
Programs 0.0 0.0 0.0
Regulatory Affairs 0.7 0.7 0.7
Human Resources 0.7 0.7 0.7
Legal 1.8 1.8 1.8
Clerk of Board 0.0 0.0 0.1
Total Operating Expenses 1,127.5 1,127.5 1,167.6
Amounts displayed in millions, $
25 13
Personnel by Department
The table below summarizes the projected personnel from the FY25 Adopted Operating Budget and the full-time equivalent (FTE) personnel in the FY25 Amended Operating Budget. While personnel may be authorized, they must be filled. Detailed information showing filled and proposed FTE transfers by department is included in the following personnel by department section below. Personnel budget is included within the Operations department.
TABLE 9: PERSONNEL BY DEPARTMENT
FY25 Adopted FY25 Revised FY25 Amended
Power Services 16.0 16.0 16.0
Executive 1.0 1.0 5.0
Operations 6.0 6.0 3.0
Finance 8.0 8.0 9.0
Customer Operations 8.0 8.0 8.0
Data Analytics and IT 7.0 7.0 9.0
Public Affairs 12.0 12.0 12.0
Programs 11.0 11.0 12.0
Regulatory Affairs 5.0 5.0 5.0
Human Resources 4.0 4.0 4.0
Legal 2.0 2.0 2.0
Clerk of Board 0.0 0.0 2.0
Total FTEs 80.0 80.0 87.0
26 14
Budget by Department
Power Services
Budget Amendment Highlights
• The cost of energy, the largest cost in Community Power’s budget, has increased from $1,073.7 million to $1,116.8 million.
• The largest drivers of energy costs going up are increases to renewable costs and increases to resource adequacy costs.
• The proposed budget amendment also includes one additional analyst position to support Community Power’s energy portfolio.
Department Positions
FY25 Adopted FY25 Revised FY25 Amended
Power Services 16.0 16.0 16.0
TABLE 10: POWER SERVICES POSITIONS
Executive
Budget Amendment Highlights
• All Executive Team personnel, including the COO, CFO, CCO, and General Counsel, have been transitioned from their related departments into the Executive Department.
Department Positions
FY25 Adopted FY25 Revised FY25 Amended
Executive 1.0 1.0 5.0
TABLE 11: EXECUTIVE POSITIONS
27 15
Operations
Budget Amendment Highlights
• Increased funding for office safety measures.
• A $2.4M reduction in Corporate Filing and Tax Registration.
Department Positions
FY25 Adopted FY25 Revised FY25 Amended
Operations 6.0 6.0 3.0
TABLE 12: OPERATIONS POSITIONS
Finance
Budget Amendment Highlights
• The Finance team proposes adding three positions, including a summer intern, which will not be counted as a full-time equivalent (FTE).
• A budget of $72K is allocated to support the Procurement and Risk Management teams.
Department Positions
FY25 Adopted FY25 Revised FY25 Amended
Finance 8.0 8.0 9.0
TABLE 13: FINANCE POSITIONS
Customer Operations
Budget Amendment Highlights
• $6K has been reallocated to obtain Green-e Energy certification, ensuring our renewable energy products meet strict environmental and consumer protection standards.
Department Positions
FY25 Adopted FY25 Revised FY25 Amended
Customer Operations 8.0 8.0 8.0
TABLE 14: CUSTOMER OPERATIONS POSITIONS
28 16
Data Analytics and IT
Budget Amendment Highlights
• Additional funding has been allocated to enhance office security measures. • Two additional personnel are proposed to improve Data Analytics capabilities.
Department Positions
FY25 Adopted FY25 Revised FY25 Amended
Data Analytics and IT 7.0 7.0 9.0
TABLE 15: DATA ANALYTICS AND IT POSITIONS
Public Affairs
Budget Amendment Highlights
• Continued outreach to educate the community of the benefits of community choice and to encourage awareness of our mission.
Department Positions
FY25 Adopted FY25 Revised FY25 Amended
Public Affairs 12.0 12.0 12.0
TABLE 16: PUBLIC AFFAIRS POSITIONS
Programs
Budget Amendment Highlights
• An additional $3.0 million from the Operating Budget has been allocated to the Solar Battery Savings Program.
• An additional $124.3 million in external funding for the Regional Energy Network was approved at the January 2025 Board of Directors meeting.
Department Positions
FY25 Adopted FY25 Revised FY25 Amended
Programs 11.0 11.0 12.0
TABLE 17: PROGRAMS POSITIONS
29 17
Regulatory and Legislative Affairs
Budget Amendment Highlights
• $15K increase for the Local Energy Aggregation Network (LEAN) membership will benefit Community Power through joint federal advocacy and funding opportunities.
Department Positions
FY25 Adopted FY25 Revised FY25 Amended
Regulatory and Legislative Affairs 5.0 5.0 5.0
TABLE 18: REGULATORY AND LEGISLATIVE AFFAIRS POSITIONS
Human Resources
Budget Amendment Highlights
• The budget has been increased to account for the additional potential support of 6 FTE positions and 1 intern should the budget amendment be approved.
Department Positions
FY25 Adopted FY25 Revised FY25 Amended
Human Resources 4.0 4.0 4.0
TABLE 19: HUMAN RESOURCES POSITIONS
Legal
Budget Amendment Highlights
• Additional personnel are proposed to enhance the capabilities of the in-house Legal department.
Department Positions
FY25 Adopted FY25 Revised FY25 Amended
Legal 2.0 2.0 3.0
TABLE 20: LEGAL POSITIONS
30 18
Clerk of Board
Budget Amendment Highlights
• The Clerk of the Board has transitioned out of Operations and established as its own department.
Department Positions
FY25 Adopted FY25 Revised FY25 Amended
Clerk of Board 0.0 0.0 2.0
TABLE 21: CLERK OF BOARD POSITIONS
31 SAN DIEGO COMMUNITY POWER
Staff Report – Item 3
____________________________________________________________________________________ TO: Finance and Risk Management Committee
FROM: Dr. Eric W. Washington, Chief Financial Officer/Treasurer VIA: Karin Burns, Chief Executive Officer
SUBJECT: Treasurer’s Report for Period Ending December 31, 2024 DATE: February 20, 2025
____________________________________________________________________________________ RECOMMENDATION:
Receive and File Treasurer’s Report for Period Ending December 31, 2024.
BACKGROUND:
San Diego Community Power (Community Power) maintains its accounting records on a full accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) as applicable to governmental enterprise funds. SDCP has prepared its year-to-date financial statements for the six-month period ended December 31, 2024, along with budgetary comparisons.
Additionally, on May 25, 2023, the Community Power Board of Directors (Board) adopted the Community Power Investment Policy, which was subsequently revised on June 27, 2024. The objectives of the Investment Policy are to (1) safeguard the principal of investment funds, (2) meet the liquidity needs of Community Power, (3) achieve a return on funds invested, and (4) exercise a high standard of care on investment funds. The Investment Policy additionally includes provisions for regular reporting to the Financial and Risk Management (FRMC) which will be included in the Treasurer’s Report.
In an effort to increase public transparency and in alignment with section 1.a of the Community Power Delegated Contract Authority Policy, Community Power will also report newly executed contracts between $50,000 and $125,000 for goods and services in the Treasurer’s Report.
Community Power additionally reports monthly metrics during its Board meetings as part of its Update on Back-Office Operations. As part of the Treasurer’s Report, certain key metrics related to risk are presented during FRMC meetings.
On June 27, 2024, the Community Power Board approved an operating budget for Fiscal Year 2024-25 that included net operating revenues of $1,177,925,889 total expenses of 32 $1,143,919,262 and a resulting net position of $34,006,627. The approved Fiscal Year 2024-25 budget also includes a capital budget to fund 16 projects, totaling 23 active projects during the fiscal year for $16,434,280.
ANALYSIS AND DISCUSSION:
Financial Results
Actual financial results for the period ended 12/31/2024: $756.0 million in net operating revenues were reported compared to $731.4 million budgeted for the period. $717.7 million in total expenses were reported (including $687.7 million in energy costs) compared to $677.4 million budgeted for the period (including $634.4 million budgeted for energy costs). After expenses, Community Power’s change in net position of $38.4 million was reported year-to-date for Fiscal Year 2024-25. The following is a summary of the actual results compared to the adopted Fiscal Year 2024-25 Operating Budget.
Table 1: Budget Comparison Versus Actual Result
Budget Comparison
YTD FY25 as of
12/31/24 (6 months) FY25 YTD Budget Budget Variance ($) Budget (%) Net Operating Revenues $ 756,048,845 $ 731,417,225 $ 24,631,620 103% Total Expenses $ 717,660,481 $ 677,423,389 $ 40,237,092 106% Change in Net Position $ 38,388,364 $ 53,993,836 $ (15,605,472) -29% • Net operating revenues finished $24.6 million (or 3.0 percentage points) over the budget due to a decrease in projected uncollectible accounts. • Operating expenses finished $40.2 million (or 6.0 percentage points) over the budget similarly due to higher-than-expected resource adequacy and CAISO costs which were partially offset by savings in non-energy costs. 33 Figure 1: Budget Comparison versus Actual Results
For the six-month period ending December 31, 2024, Community Power contributed $38,388,364 to its net position compared to the expected contribution of $53,993,836 per the Fiscal Year 2024-25 budget. Total Community Power reserves at the end of the period were $ $371,032,793 based on cash and cash equivalents – unrestricted, and total available liquidity (including lines of credit) was $583,532,793. Community Power has a total Fiscal Year 2024-25 year-end reserve target of $556,027,397 which is equivalent to 180-days of total operating expenses as set in Community Power’s Reserve Policy and Strategic Goals
Investment Portfolio Report
Chandler Asset Management manages Community Power’s investment portfolio. As of December 31, 2024, the market value was $50.3M compared to the $24.8M market value as September 30, 2024. The rise in market value is reflective of an increase in the dollar amount of asset under management. The following is a snapshot of overall characteristics of the portfolio.
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
$800,000,000
Net Operating Revenues Total Expenses Change in Net Position YTD FY25 Results v. Budget
YTD FY25 as of 12/31/24 (6 months) FY25 YTD Budget
34 Contract Execution between $50,000 and $125,000
In December 2024, Community Power did not execute any contracts between $50,000 and $125,000.
Metrics
Figure 2: Participation Rates as of 2/8/2025
The participation rate for Community Power reflects full enrollment of current member agencies. We are reporting on the opt outs and eligible accounts associated with the phase based on those accounts that we have noticed for enrollment on a rolling basis as of the reporting month.
35 Staff are also presenting the state of Community Power Arrearages related to financial risk for FRMC consideration and for regular review. Additional metrics can be added by request. The below arrearage data includes Community Power’s Receivables aged 120+ Days as of February 8, 2025.
Figure 3: State of SDCP Arrearages as of 2/08/2025
Figure 4: State of SDCP Arrearages Residential vs Commercial as of 2/08/2025 FISCAL IMPACT:
N/A
COMMITTEE REVIEW:
N/A
ATTACHMENTS:
Attachment A: 2024 Year-to-Date Period Ended 12/31/2024 Financial Statements. 36 ITEM 3
ATTACHMENT A
37 1
ACCOUNTANTS’ COMPILATION REPORT
Management
San Diego Community Power
Management is responsible for the accompanying financial statements of San Diego Community Power (a California Joint Powers Authority) which comprise the statement of net position as of December 31, 2024, and the related 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. San Diego Community Power’s annual audited financial statements 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 the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
February 5, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 38 Current assets
Cash and cash equivalents - unrestricted 371,032,793$
Cash and cash equivalents - restricted 500,000
Accounts receivable, net of allowance 99,031,447
Accrued revenue 44,684,315
Prepaid expenses 2,430,052
Other receivables 3,421,156
Deposits 19,128,889
Investments 1,936,977
Total current assets 542,165,629
Noncurrent assets
Cash and cash equivalents - restricted 1,147,000
Investments 35,620,723
Capital assets, net of depreciation and amortization 503,667 Total noncurrent assets 37,271,390
Total assets 579,437,019
Current liabilities
Accrued cost of electricity 138,875,527
Accounts payable 4,065,038
Other accrued liabilities 2,190,428
State surcharges payable 587,833
Deposits - energy suppliers 3,143,000
Lease liability 483,612
Total current liabilities 149,345,438
Noncurrent liabilities
Deposits - energy suppliers 4,410,450
Total noncurrent liabilities 4,410,450
Total liabilities 153,755,888
Restricted for security collateral 1,647,000
Unrestricted 424,034,131
Total net position 425,681,131$
NET POSITION
SAN DIEGO COMMUNITY POWER
STATEMENT OF NET POSITION
As of December 31, 2024
ASSETS
LIABILITIES
See accountants' compilation report. 2
39 OPERATING REVENUES
Electricity sales, net $ 755,568,971
Grant revenue 352,500
Other income 1,218,049
Total operating revenues 757,139,520
OPERATING EXPENSES
Cost of electricity 688,775,015
Contract services 10,041,650
Staff compensation 7,595,860
Other operating expenses 5,643,338
Depreciation and amortization 256,178
Total operating expenses 712,312,041
Operating income 44,827,479
NON-OPERATING REVENUES (EXPENSES)
Investment income 5,888,016
Interest expense (416,746)
Nonoperating revenues (expenses), net 5,471,270
CHANGE IN NET POSITION 50,298,749
Net position at beginning of year 375,382,382
Net position at end of year $ 425,681,131
SAN DIEGO COMMUNITY POWER
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Six Months Ended December 31, 2024
See accountants' compilation report.
40 3
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 793,522,716$
Receipts of supplier security deposits 4,867,455
Other operating receipts 1,548,355
Payments to suppliers for electricity (669,837,112)
Payments for other goods and services (16,182,698)
Payments for staff compensation (7,276,865)
Payments for deposits and collateral (1,645,050)
Payments of state surcharges (1,235,027)
Net cash provided by operating activities 103,761,774
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Proceeds from bank note 55,500,000
Principal payments - bank note (55,500,000)
Interest payments (393,961)
Net cash provided (used) by noncapital
financing activities (393,961)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments of lease liability (308,340)
Net cash used by capital and related financing activities (308,340)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 5,588,706
Proceeds from investment sales and maturities of investments Purchase of investments (37,410,496)
Net cash provided (used) by investing activities (31,821,790) Net change in cash and cash equivalents 71,237,683
Cash and cash equivalents at beginning of year 301,442,110 Cash and cash equivalents at end of year 372,679,793$
Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) 371,032,793$
Restricted cash - current 500,000
Restricted cash - noncurrent 1,147,000
Cash and cash equivalents 372,679,793$
NONCASH INVESTING ACTIVITIES
Unrealized appreciation and timing differences in investment income 299,310$
SAN DIEGO COMMUNITY POWER
STATEMENT OF CASH FLOWS
Six Months Ended December 31, 2024
See accountants' compilation report. 4
41 Operating income $ 44,827,479
Adjustments to reconcile operating income to net
cash provided by operating activities
Depreciation and amortization expense 256,178
(Increase) decrease in:
Accounts receivable, net 4,480,718
Accrued revenue 32,179,108
Prepaid expenses 32,588,348
Other receivables 2,619,808
Deposits (6,966,690)
Increase (decrease) in:
Accrued cost of electricity (9,240,789)
Accounts payable (942,840)
Other accrued liabilities 1,027,113
State surcharges payable 58,891
Deposits - energy suppliers 2,874,450
Net cash provided by operating activities $ 103,761,774
SAN DIEGO COMMUNITY POWER
STATEMENT OF CASH FLOWS (continued)
Six Months Ended December 31, 2024
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
See accountants' compilation report.
42 5
1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
San Diego Community Power
Management is responsible for the accompanying operating fund and capital investment program fund budgetary comparison schedules of San Diego Community Power (SDCP), a California Joint Powers Authority, for the six months ended December 31, 2024, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. 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 statement 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, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
These special purpose statements are prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of SDCP.
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.
SDCP’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 SDCP because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
February 5, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 43 Budget Actual
Budget
Variance
(Under) Over
Actual/
Budget % Budget
Budget
Remaining
REVENUES AND OTHER SOURCES
Gross Ratepayer Revenues 765,881,911 769,026,943$ 3,145,032 100% 1,233,400,000 $ $ 464,373,057 Less: Uncollectible Customer Accounts (34,464,686) (13,457,972) 21,006,714 39% (55,500,000) (42,042,028) Grant Revenue - 352,500 352,500 na - (352,500)
Other Income - 127,374 127,374 na - (127,374)
Total Revenues and Other Sources 731,417,225 756,048,845 24,631,620 1,177,900,000 421,851,155
OPERATING EXPENSES
Cost of Energy 634,397,000 687,684,339 53,287,339 108% 1,073,700,000 386,015,661 Professional Services and Consultants 12,414,616 9,323,926 (3,090,690) 75% 24,800,000 15,476,074 Personnel Costs 9,259,784 7,595,860 (1,663,924) 82% 18,600,000 11,004,140 Marketing and Outreach 1,513,427 1,181,801 (331,626) 78% 3,000,000 1,818,199 General and Administration 4,000,562 1,628,205 (2,372,357) 41% 7,400,000 5,771,795 Total Operating Expenses 661,585,389 707,414,131 45,828,742 1,127,500,000 420,085,869 Operating Income (Loss) 69,831,836 48,634,714 (21,197,122) 50,400,000 1,765,286
NON-OPERATING REVENUES (EXPENSES)
Investment Income - 5,888,016 5,888,016 na (5,888,016) - Interest and Related Expenses (638,000) (934,366) (296,366) 146% (1,300,000) (365,634) Transfer to Capital Investment Program (15,200,000) (15,200,000) 100% (15,200,000) - - Total Non-Operating Revenues (Expenses) (15,838,000) (10,246,350) 5,591,650 (16,500,000) (6,253,650) NET CHANGE $ 53,993,836 $ 38,388,364 $ (15,605,472) $ 33,900,000 $ (4,488,364)
SAN DIEGO COMMUNITY POWER
BUDGETARY COMPARISON SCHEDULE
Six Months Ended December 31, 2024
OPERATING FUND
Year-to-Date Annual
See accountants' compilation report.
44 Annual
Budget YTD Actual
Budget
Remaining
REVENUES AND OTHER SOURCES
Transfer in from Operating Fund 15,200,000$ $ 15,200,000 $ -
EXPENDITURES AND OTHER USES
Program expenditures 16,400,000 3,336,642 (13,063,358)
Net increase (decrease) in fund balance $ (1,200,000) 11,863,358 Fund balance at beginning of period 3,492,291
Fund balance at end of period $ 15,355,649
SAN DIEGO COMMUNITY POWER
BUDGETARY COMPARISON SCHEDULE
Six Months Ended December 31, 2024
CAPITAL INVESTMENT PROGRAM FUND
See accountants' compilation report.
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