New SV Clean Energy
PowerPoint Template
Subtitle
Item 3
PRESENTATION
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Item 3
Purpose
PRESENTATION
Present findings of the
stress test analyses
Presentation
Highlights
Recap of ERM Framework
Construction of Stress Test
Scenario
Overview of Modeled Price
Collapse
Results and Implied
Reserve Targets
Next Steps
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Item 3
PRESENTATION
Recap of the ERM Framework
Comprehensive organization-wide assessment of risks
Optimally manage enterprise risks to achieve the organization’s mission and goals.
1. Risk Register
Record of organization’s risks
Lists current and additional risk mitigations
Identifies a risk owner
2. Risk Matrix
Assess the likelihood and consequence of risk
Calibrate risks
Identify risk tolerance levels
3. Stress Tests
An essential component of ERM
Model scenarios of interrelated risks that are
extreme but plausible
Important for commodity trading portfolios
because of the inherent weakness of market risk
measures in assessing black swans, such as
disruptions in markets
Impact/Consequence
Frequency/Likelihood
Insignificant Minor Moderate Major Catastrophic
Risk Easily
Mitigated
through Day-to-Day Operations
Risk is
Manageable/Low
Impact on Mission
Moderate Erosion
of
Reserves/lmpact
on Mission
Significant
Erosion of
Reserves/lmpact
on Mission
Risk of
Existence
Certain >90% chance High(l) High (2) Extreme (3) Extreme (4) Extreme (5) Likely 50%- 90% Chance Moderate (6) High (7) High (8) Extreme (10) Moderate 10%-50% Chance Low (11) Moderate ( 12) High (13) Extreme (15) Unlikely but Plausible 5%-10% Chance Low (16) Low (17) Moderate (18) High (19) Extreme (20) Rare <=5% Chance Low (21) Low ( 22) Moderate (23) High (24) High (25) Additional review slides are in the appendix (20-23).
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Item 3
PRESENTATION
Stress Test
Extreme but plausible scenarios that can deplete reserves and make SVCE uncompetitive.
Insight from 2022 analyses
Last year, SVCE conducted five
stress test scenarios -four of
them were impacted by market
price uncertainties
Among them, the price collapse
scenario was the most
consequential
Price collapse scenario under an
economic recession remains as
one of the most significant risks
® Stress Test Scenarios
Extreme but plausible scenarios that can deplete reserves and make SVCE uncompetitive. • Ensure adequacy of
reserves and
organizational resiliency
* Guide development of
strategic plan
* Shape FY 22-23 budget
and reserve targets
• Price uncertainty Drives
the first 4 scenarios
Stress Scenarios for CY 2023 to CY2027 (five-year horizon):
1. Significant drop in energy prices including REC
• Higher PCIA and lower PG&E Gen Rate
2. Insufficient financial liquidity
• Price collapse triggers credit downgrade
Collateralcalls from counterpartiesand CAISO
• Increase in POLR (Provider of Last Resort)Hinding (called FSR-Financial Security Requirement)
3. PPAs default, renegotiate for higher prices, and/or delay start • RPS non-compliance penalty
• Replacemenialhigher prices
4 Load loss due to direct access and distributed load
5 Threat to Public Services or Facilities
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Item 3
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CD 2023 Stress Test Scenario Description
Economic Recession
Forward Energy Prices Collapse to the one percentile level Economic Recession Creates Load Loss
Customer Uncollectables Increase
Additional Financial Liquidity Stress
Increase in POLR (Provider of Last Resort) funding (called FSR -Financial Security Requirement)
Large Counterparty Collateral Postings
MTM Losses on Investments
5 Item 3
PRESENTATION
Key Takeaways-Price Uncertainty
Biggest contributor to risk: PCIA and PG&E Generation Rate Uncertainty.
PCIA and PG&E Gen Rate determine SVCE Rates and
therefore Revenues
Revenues Revenues
Revenues decline when prices decline
PG&E Gen Rate:
cn
(D
+-•
CO
o:
SVCE
discount
CD
0 LU
O
o
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Item 3
PRESENTATION
Key Takeaways - Price Uncertainty - Cont’d
Big contributor to PCIA and PG&E Generation Rate Uncertainty is Market Prices.
Next Year’s PCIA & Current Year’s actual O. Forecast of Next PG&E Gen Rate // realized Prices OC Year’s Market Prices Can’t fully bank the current year’s margin
Deviations between actual and forecast costs are tracked in balancing accounts and trued up next year If prices drop, then there can be a substantial draw from reserves PCIA2023 = PCIA Balancing Account2022 + Forecast Balance Balancing Account = (Prior Year’s Forecast Prices2022 - Actual Prices2022)* PCIA Portfolio Forecast Balance = (Legacy Contract Costs -Forecast Prices2023)* PCIA Portfolio PG&E Gen Rate Set Similarly
PG&E Gen Rate = ERRA Balancing Account + Forecast Costs * Simplified representation of concepts
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Item 3
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Key Takeaways -Price Uncertainty - Cont’d
Price collapse poses biggest financial risk.
Revenues drop significantly
Loss of revenues far exceed
savings from lower power
procurement costs
Power procurement savings
dampened by existing hedges
2024 Prices 2024 Prices xp
2023 Prices "T
PCIA >p
PG&E Rate 'T
SVCE Revenues
2023 Prices 4^
^cia \
PG&E Rate
\^VCE Revenues
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Item 3
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Past, Current, and Stress Case Modeled Commodity Prices Forward prices are at all time
high.
Extreme case of runup in prices
110
Can’t predict future but price
trends could reverse, and
prices could drop equally or 55 80
more.
60 Prices were trading closer to
the modeled stress test levels
as recently as 15 to 18 months
ago.
2023 2024 2025 2026 2027 2028 / \
1st Percentile Prices Modeled $ 45.0 $ 46.9 $ 48.0 $ 46.3 $ 41.4 -18 -15 -12 -9 -6 -3 0 3 6 9 12 15 18
Months Relative to Now
9 Source: http://epis.com/powermarketinsights/index.php/2017/05/18/how-good-is-the-eia-at-predicting-henry-hub/ 70% during the 2008 financial crisis
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Item 3
PRESENTATION
Modeled Price Collapse Comparison to Past Prices
Volatility in Natural Gas Markets Translates to Volatility in Electricity Markets 2008 financial crisis natural
gas prices dropped ~70%
with a corresponding drop in
power prices
Stress test modeled price
drop from base case to the
one percentile level is about
a 44%
Depended on assessment of
current market volatility
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Item 3
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Base Case versus Stress Scenario
Base Case
High forward prices result in low PCIA and high
PG&E Gen rates resulting in healthy SVCE Margins
If current forward prices are realized and other
model assumptions prevail:
Significant growth in reserves from FY2023 level of $219 million to $390 million at the end of FY2024
Continued strong growth in margins over the next 5 years Caveats:
PCIA and PG&E Gen Rate portfolio assumptions based on
public data as best modeled by NewGen Consultants
PG&E’s portfolio management strategy and portfolio contents may change from those modeled
CPUC may moderate rate impacts
Uncertainty increases further out in time
Focus on delta of the base case to stress test
results
Stress Case
If the modeled stress scenario were to occur,
reserves would drop from $224 million at the end
of FY2023 to only $39 million at the end of
FY2025 (A drawdown of $185 Million from our
reserves)
Projected Days Cash on hand will also be below
the minimum target of 120 DCH
Days Cash on Hand
2024 2025 2026 2027 2028
157 ^41 (14) (62} (1Z3>
Below minimum
target of 120 DCOH.
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Item 3
PRESENTATION
1 Risk Mitigations
Best Mitigation
Hold Sufficient Reserves
Other Mitigations
Revisit the current energy hedging
strategy
Allow for loss in revenues from price
collapse to be mitigated by a reduction in
power supply costs
Challenge: Determining the level of
hedging given the uncertainty in
modeling PCIA and PG&E Generation
Rates
SVCE is spearheading analysis jointly
with CaICCA consultant, NewGen
Strategies
Use the results of these analyses to propose a reserve target for the next fiscal year’s budget
Build reserves such that if the stress scenario were to occur, reserves do not fall below the minimum reserve threshold of holding 120 DCOH over the next 2 years and 90 DCOH over the years 3 to 5
Current Illustrative New Targets
Minimum 120 120
Goal (Target) 285 270
Maximum (Upper Target) 490 390
12 The stress test analysis will be updated using prices consistent with those used to construct next year’s fiscal budget. The above table will then be revised and will be used to update the targets in the reserves policy.
Item 3
PRESENTATION
1 Next Steps
June 14, 2023 August September 13, 2023
Staff presents stress
analysis to the Board
Finance Committee and Board
review and provides staff feedback
on the proposed budget and any
changes to reserves targets
Board approves FY 2023 -2024
budget with updated reserves
targets
13 New SV Clean Energy
PowerPoint Template
Subtitle
Item 3
PRESENTATION
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Item 3
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CD Stress Test Scenario Construction -2023
Economic Recession
Price Drop
Increase in POLR
Resource Adequacy (RA)
reform and market
uncertainties, along with
increased procurement
targets and potential
penalties, increase
procurement costs
Bad Debt @ 1%
Potential Load Loss
Large Counterparty
Collateral Postings
MTM Losses on
Investments
Scenario Construction (revenue side)
Bad Debt @ 1%
4% Discount until Dec 2023 and
1% thereafter
5% Load Loss
10% modeling error adjustment to
NewGen model forecast based on
past trends
Scenario Construction (cost side)
Energy: Statistical 1 percentile low
case prices (extreme but plausible
scenario)
RA : Fundamental Forecast based
Term : Balance of fiscal year 2023 to
FY2028 (5+years)
Price drops for all forward months to
the 1 percentile level taking into
account current forward prices
Hedges and MTR executed per ERM
thresholds (hedge to max targets)
Evaluation of Collateral postings at
stress price levels
15 Item 3
PRESENTATION
Load
(Twh)
Load Assumptions and Forecast
Historical Load (Twh) Forecasted Load Scenarios
16 Item 3
PRESENTATION
CD Days Cash on Hand CCA Comparable
SVCE Target Days on Hand is 285
CCA Published Targets
SCP 280
MCE 240
3CE 183
EBCE 183
PCE 180
SJCA 180
17 Item 3
PRESENTATION
Summary of Base Case Results
High forward prices result in low PCIA and high PG&E Gen Rates resulting in healthy SVCE Margins.
Base Case $ millions
Revenues
Power Supply Cost
Operating Margin
Other Costs
Net Contribution to Reserves
Reserve Balance
Days Cash on Hand
Constructed for stress analysis. Does
not account for additional expenditures
for programs and customer discounts
beyond the1 % level.
Fiscal Year (BY)
1 2023 2024 2025 2026 2027 2028
$ 251 $ 573 $ 574 $ 525 $ 498 $ 471
S 212 $ 364 $ 377 $ 387 $ 379 S 372
$ 39 $ 210 $ 196 $ 138 $ 119 $ 98
$ 29 $ 39 $ 32 $ 32 $ 32 $ 33
$ 10 $ 170 $ 164 $ 106 $ 86 $ 66
S 219 S 390 S 554 $ 660 S 746 S 812
353 494 575 662 732
Less uncertainty
More uncertainty
18 Item 3
PRESENTATION
Summary of Stress Test Results
Base Case Fiscal Year (BY)
2023 2024 2025 2026 2027 2028
Revenues $ 251 $ 573 $ 574 $ 525 $ 498 $ 471
Power Supply Cost $ 212 $ 364 $ 377 $ 387 $ 379 $ 372
Operating Margin $ 39 $ 210 $ 196 $ 138 $ 119 $ 98
Other Costs $ 29 $ 39 $ 32 $ 32 $ 32 $ 33
Net Contribution to Reserves $ 10 $ 170 $ 164 $ 106 $ 86 $ 66 Reserve Balance $ 219 $ 390 $ 554 $ 660 $ 746 $ 812
Days Cash on Hand 353 494 575 662 732
Stress Case Pl
BY 2023 2024 2025 2026 2027 2028
Revenues $ 242 S 333 $ 228 $ 289 $ 294 $ 280
Power Supply Cost $ 198 S 322 $ 313 $ 308 $ 306 $ 303
Operating Margin $ 44 $ 11 S (85) $ (19) $ (12) $ (23)
Other Costs $ 29 $ 39 S 32 $ 32 $ 32 $ 33
Net Contribution to Reserves $ 15 $ (29) S (117) $ (51) $ (45) $ (55) Reserve Balance $ 224 $ 196 $ 79 $ 27 $ (18) $ (73)
Reserve Balance after POLR Adjustment $ 224 $ 156 $ 39 $ (13) $ (58) $ (113) Days Cash on Hand 157 41 (14) (62) (123)| 19
Unmitigated With Current Mitigations With Additional Mitigations 1 Financial Economic Recession: Prices Collapse and PCIA goes up and revenues go down Amrit Reserves to withstand the shocks; Stress Tests, Cashflow Modeling Reassess reserve adequacy Extreme (15) Extreme (14) High? (13) (Depends on Reserve Set Aside) 2 Financial Price Collapse leads to insufficient liquidity (collateral postings) Amrit Reserves to withstand the shocks; Stress Tests, Cashflow Modeling Reassess reserve adequacy High (13) Moderate (12) Low (11) 3 Financial Load Loss to due economic recession (may not be immediate financial impact) Amrit Reserves to withstand the shocks Reassess reserve adequacy Moderate (12) Low (11) Low (11) 4 Financial Bad Debt increase due to economic recession Adam Send back to PG&E after 3 months of non-payment; Reserves to withstand the shock Reassess reserve adequacy Moderate (12) Moderate (12) Moderate (12) 5 Financial Price collapse and increase in desire for DA (as PCIA goes up) subject to the DA cap Amrit Reserves to maintain competitive pricing; CPUC Decision not opening DA None Low (22) Low (22) Low (22) 6 Financial Load Loss due to DA and distributed/ behind the meter (generation and storage) Adam Custom Customer Pricing; CPUC Decision not opening DA Moderate (12) Moderate (12) Moderate (12) 7 Financial Significant PPAs default/delay/renegotiate for higher prices Monica Supplier & Technology diversity; plan for contingencies; Contractual language for delay damages and default provisions Moderate (23) Moderate (23) Moderate (23) 8 Financial Counterparty Default - Loss of MS business - Risk of losing prepay Amrit Credit risk management Update credit guidelines Moderate (23) Moderate (23) Moderate (23) 9 Financial Member agency leaving Girish Strong SVCE value proposition; Effective communication and alignment with members Moderate (23) Moderate (23) Moderate (23) 10 Financial Governance Risk (Limited knowledge of key stakeholders resulting in an uneconomic/suboptimal business model/operations; Divergent Board member objectives) Girish Continous training and stakeholder interest alignment Moderate (23) Moderate (23) Moderate (23) 11 Financial PG&E failures affect our cashflows since they are our cash register (high gas prices leading to customer bad debt, billing issues) Adam Seek fair treatment from CPUC; No residential waterfall Moderate (12) Low (11) Low (11) 12 Regulatory/Compliance POLR Proceeding - Large Tie up of Financial Reserves Amrit Hold Adequate Reserves Manage and shape regulatory proceeding against PG&E Pool Proposal Extreme (14) High (13) Moderate (18) 13 Regulatory/Compliance CPE Policy Procurement (Pumped Storage, Ofshore wind etc, more asset procurement); Loss of procurement autonomy thru backstop procurement (@ governers office) Monica Manage and shape regulatory proceeding (add more specifics?) Moderate (23) Moderate (23) Moderate (23) 14 Regulatory/Compliance RA reform, uncertainties on design and procurement targets and penalties for market structural imbalances Monica Manage and shape regulatory proceeding (add more specifics?) High (13) High (13) High (13) 15 Regulatory/Compliance Loss of PG&E hydro and Nuclear allocation Monica Manage and shape regulatory proceeding (add more specifics?) Moderate (12) Moderate (12) Moderate (12) 16 Regulatory/Compliance CPUC rejects some of our MTR contracts - especially if it's out of money Monica Manage and shape regulatory proceeding (add more specifics?) Low (17) Low (17) Low (17) 17 Regulatory/Compliance CPUC imposed hedges that may not be optimal for our portfolio Monica Manage and shape regulatory proceeding (add more specifics?) High (19) High (19) High (19) 18 Regulatory/Compliance Potential for deregistration (CPUC No longer lets us operate as an LSE) Monica Manage and shape regulatory proceeding (add more specifics?) High (25) High (25) High (25) 19 Regulatory/Compliance Green Regulatory Risk - Change in the accounting of green. REC has a definition today, Green e / Green prime - VREP has some exchange between REC and Cap/Trade, this could increase our costs in the long term. Monica Low (22) Low (22) Low (22) 20 Reputational Risk of Relevancy - IOUs power portfolio just as green. How do we distinguish ourselves? What's our value proposition?Justin Cheaper (competitive advantage thru tax exempt financing) and community benefits from programs Moderate (18) Moderate (18) Moderate (18) 21 Reputational Emissions on PCL increase; Impact on our mission and customers perception of our value proposition Adam Effective customer communications Moderate (23) Moderate (23) Moderate (23) 22 Reputational Customer Activism & Unfavorable Political scenarios derailing our mission - High PG&E T&D costs and high energy prices resulting in more customer activism and movement against electrification; customer affordability - Political environments ("Make Coal Great Again!")
- Lobbying from natural gas industry Adam Effective customer communications Moderate (23) Moderate (23) Moderate (23) 23 Reputational Aggressive SVCE electrification efforts creates customer backlash ("Let go of my gas stoves!") Justin Moderate (23) Moderate (23) 24 Reputational Daisy and 3rd Party (Calpine, other Vendors) System Failures and Data Breach - Customer Identifiable data compromised; Mandatory customer communication - Customers Opt Out
- CPUC Compliance Risk
Justin CPUC Data audit; Contract provisions Moderate (18) Moderate (23) Moderate (18) 25 Reputational Risk of not spending program dollars well (impact on the reserves - give back the reserves) Justin Moderate (23) Moderate (23) Moderate (23) 26 Reputational Grid Readiness to support our mission Justin Moderate (23) Moderate (23) Moderate (23) 27 Reputational Stranded Program Assets (technology changes, hydrogen cheaper than electricity) Justin Moderate (23) Moderate (23) Moderate (23) 28 Reputational Major Disruption of the T&D/Grid operator, Grid Reliability - affects our mission Girish Moderate (18) Moderate (18) Moderate (18) 29 Operational and Business Continuity Natural Disaster Recovery (Earthquake, flooding) - Cover key business functions (procurement, scheduling, collateral calls …) Monica Key Desk Procedures Low (22) Low (22) Low (22) Operational and Business Continuity Staff turnover Amrit - Employer of Choice Initiatives -benefits,Comp, Hybrid Work, Team Buildings Key Desk Procedures; BPO Moderate (18) Moderate (18) Moderate (18) 30 Operational and Business Continuity Cyber risks (wire fraud, social engineering, ransomware) Amrit IT IRP Plans and Tabetop exercises, VCISO, Human Firewall Trainings Moderate (18) Moderate (18) Moderate (18) 31 Operational and Business Continuity Insider Threat/Rogue Employee Amrit Code of Conduct, Risk Controls Moderate (23) Moderate (23) Moderate (23) 32 Operational and Business Continuity Physical Security/Active Shooter Amrit Staff Training Moderate (23) Moderate (23) Moderate (23) 33 Operational and Business Continuity Scheduling system failure Monica Schedule remotely Low (22) Low (22) Low (22) 34 Operational and Business Continuity Calpine system failure Adam Moderate (23) Moderate (23) Moderate (23) 35 Operational and Business Continuity Daisy Failures (Quality of data impact on Revenue forecasting) Justin Low (22) Low (22) Low (22) Proposed Stress Tests (Modeled Scenarios) Economic Recession (Price Collapse -5th percentile) Coupled with Adverse Regulatory Outcomes (POLR) Extreme (20) Extreme (20) High(19) Draft Confidential Initial Placement to Get Discussions Going Risk Matrix Placement (Impact over 5-years) Risk ID Risk Category Risk Description Risk Owner (Initial Straw Proposal) Current Mitigations (High level right now to get discussions going) Any Additional Planned Mitigations/Actions (High level right now to get discussions going) Item 3
PRESENTATION
Key Components of our ERM Framework
Impact/Consequence
Frequency/Likelihood
20 Risk Matrix
OPast, Current, and Stress Case Modeled Commodity Prices Stress
Tests
• Most of the increase occurred
in the last 12 months.
• Can t predict future but price
Risk
Register
Model scenarios (financial position, systems, and processes) of interrelated risks that are extreme but plausible
Develop appropriate risk management strategies, including the adequacy of reserves
Record of organization’s risks
Identify current and additional planned mitigations
Identify risk owner
Risk Rubric. Assess the likelihood and consequence of risk events
Calibrate risks
Identify risk tolerance -level of acceptance
Insignificant Minor VIoderate Major <
Mitigated Riskis
High(l) High (2)
!
Mil l|
Erosion of
Moderate (6) High (7)
Moderate {12)
High (8)
| Moderate (18) | High (19) 1
Moderate (23) | High (24) |
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Insignificant Minor Moderate Major Catastrophic
Risk Easily
Mitigated
through Day-to-Day Operations
Risk is
Manageable/Low
Impact on Mission
Moderate Erosion
of
Reserves/Impact
on Mission
Significant
Erosion of
Reserves/Impact
on Mission
Risk of
Existence
Certain >90% chance High (1) High (2) Extreme (3) Extreme (4) Extreme (5) Likely 50%- 90% Chance Moderate (6) High (7) High (8) Extreme (9) Extreme (10) Moderate 10%-50% Chance Low (11) Moderate (12) High (13) Extreme (14) Extreme (15) Unlikely but Plausible 5%-10% Chance Low (16) Low (17) Moderate (18) High (19) Extreme (20) Rare <=5% Chance Low (21) Low (22) Moderate (23) High (24) High (25) Item 3
PRESENTATION
Risk Matrix
Assess the likelihood (frequency of
occurrence) and consequence (impact)
Calibrate risks and optimally direct
Significant financial risks will be explicitly
quantified and used for reserve planning,
like last year’s stress test analyses
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Draft and illustrative
Risk ID Risk Category Risk Description Risk Owner Current Mitigations Additional Planned Mitigations
Risk Matrix Placement (Impact over 5-years)
Unmitigated With Current
Mitigations
With Additional
Mitigations
1 Financial Prices Collapse; PCIA
Increases; Revenues Decrease Amrit
Reserves to withstand the
shocks; Stress Tests, Cashflow
modeling
Reassess reserve
adequacy Extreme (15) Extreme (14) High (13)
.
7 Financial
Significant Number of PPAs
Default/Delay/Renegotiate for
higher prices
Monica
Supplier & Technology Diversity;
Plan for Contingencies;
Contractual language for delay
damages and default provisions
Moderate (14) Moderate (12) Moderate (12)
13 Regulatory/Compliance POLR Proceeding - Large Tie
Up of Financial Reserves Amrit Hold Adequate Reserves
Manage and shape
regulatory
proceeding
Extreme (14) High (13) Moderate (18)
26 Reputational
Ineffective or sluggish
spending of approved program
dollars
Justin
Program plans developed with
stakeholders, ongoing feedback
during design/management,
increased staff/resources, and
emphasizing larger-scale
programs.
Additional staffing,
new supporting
systems, and public
reporting on impacts.
Moderate (23) Moderate (23) Moderate (23)
.
29 Reputational
Major disruption of the
T&D/Grid operator, Grid
Reliability - affects our mission
Girish Shape Regulatory and Legislative
Initiatives Moderate (18) Moderate (18) Moderate (18)
30 Operational and Business
Continuity
Natural Disaster Recovery
(Earthquake, flooding)
- Cover key business
functions (procurement,
scheduling, collateral calls …)
Monica System backups and desk
procedures
Add'l Desk
Procedures and
Continuity Plans
Low (22) Low (22) Low (22)
.
35 Operational and Business
Continuity Calpine system failure Adam Moderate (23) Moderate (23) Moderate (23) Proposed Stress Tests (Modeled Scenarios)
Economic Recession (Price Collapse -1 percentile) Coupled with Adverse Regulatory Outcomes (POLR); Increase RA/procurement costs; MTM Losses on Investments
Reserves; Strong Advocacy
Additional Reserves;
Revist Hedging
Strategy
Extreme (20) High(19) Moderate (18)
Item 3
PRESENTATION
CD Risk Register
Risk Register:
Record of risks
Briefly describes each risk
Lists existing and planned mitigations
Ranks risks
Identifies risk owner
Cross-functional teams brainstormed and
identified an initial set of critical risks
Bucketed the risks into the following initial
categories:
Financial
Regulatory and Compliance
Reputational
Operational and Business Continuity
An expanded view is shown in the next slide.
22 Unmitigated With Current
Mitigations
With Additional
Mitigations
1 Financial
Prices Collapse; PCIA
Increases; Revenues Decrease Amrit
Reserves to withstand the
shocks; Stress Tests, Cashflow
modeling
Reassess reserve
adequacy Extreme (15) Extreme (14) High (13)
.
7 Financial
Significant Number of PPAs
Default/Delay/Renegotiate for
higher prices
Monica
Supplier & Technology Diversity;
Plan for Contingencies;
Contractual language for delay
damages and default provisions
Moderate (14) Moderate (12) Moderate (12)
13 Regulatory/Compliance POLR Proceeding - Large Tie Up of Financial Reserves Amrit Hold Adequate Reserves
Manage and shape
regulatory
proceeding
Extreme (14) High (13) Moderate (18)
26 Reputational
Ineffective or sluggish
spending of approved program
dollars
Justin
Program plans developed with
stakeholders, ongoing feedback
during design/management,
increased staff/resources, and
emphasizing larger-scale
programs.
Additional staffing,
new supporting
systems, and public
reporting on impacts.
Moderate (23) Moderate (23) Moderate (23)
.
29 Reputational
Major disruption of the
T&D/Grid operator, Grid
Reliability - affects our mission
Girish Shape Regulatory and Legislative
Initiatives
Moderate (18) Moderate (18) Moderate (18)
30 Operational and
Business Continuity
Natural Disaster Recovery
(Earthquake, flooding)
- Cover key business
functions (procurement,
scheduling, collateral calls …)
Monica System backups and desk
procedures
Add'l Desk
Procedures and
Continuity Plans
Low (22) Low (22) Low (22)
.
35 Operational and
Business Continuity
Calpine system failure Adam Moderate (23) Moderate (23) Moderate (23) Proposed Stress Tests (Modeled Scenarios)
Reserves; Strong Advocacy
Additional Reserves;
Revist Hedging
Strategy
Extreme (20) High(19) Moderate (18)
Economic Recession (Price Collapse -1 percentile) Coupled with Adverse Regulatory Outcomes (POLR); Increase RA/procurement costs; MTM Losses on Investments
Draft and illustrative
Risk Matrix Placement (Impact over 5-years)
Risk ID Risk Category Risk Description Risk Owner Current Mitigations Additional Planned
Mitigations
Item 3
PRESENTATION
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23 New SV Clean Energy
PowerPoint Template
Subtitle
Item 4
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
Amrit Singh
Finance and Administration Committee
May 12, 2023
FY 23-24 Budget
Framework
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Item 4
Purpose
PRESENTATION
Discuss Budget Framework
1. 2.
3. 4.
5. Seeking high-level feedback/validation
on principles and assumptions
Budget numbers to be computed in
July based on feedback
Methodology could be tweaked if
results from actual numbers in July do
not align with expectations
Revenue Modeling
PCIA and PG&E Gen Rate
Uncertainty
Reserve Targets
Customer Discount Rate,
Additional Funding for Programs
and Set Aside for Reserves
Power Supply Costs
Other Cost Drivers
Personnel, Business Process
Optimization, Cybersecurity
Item 4
PRESENTATION
FY23-24 Budget will be ready for Discussion in August
May 12 May/June August (tbd) August 9
3 Item 4
PRESENTATION
0 SVCE Planning & Budgeting Process
Budget
Comprehensive assessment of risks and
opportunities to optimally achieve mission
SVCE Mission: Reduce dependence on fossil fuels by
providing carbon-free, affordable, and reliable electricity and innovative programs for the SVCE community.
Organization-wide priorities and
alignment toward achieving the mission
Funding in alignment with achieving
the strategic focus areas
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Item 4
PRESENTATION
Revenue Forecast Depends on PG&E Generation and PCIA Rates PG&E Generation
Rate: 14.96 C/kWh
4% SVCE discount J
O O
$ 5
* Power Charge Indifference Adjustment (PCIA) is a
charge our customers pay to PG&E such that they can
recover commitments made on behalf of the customer
when they were part of PG&E’s portfolio.
Issue: Rate Uncertainty Staff
Recommendation
Implications/Reasons
PG&E is expected to
issue the 2023 ERRA
forecast on May 15 with
preliminary 2024 PG&E
generation and PCIA
rate forecasts
PG&E will update this
forecast in the fall.
CPUC normally adopts
the rate in December
based on this update
Given the high volatility
in power prices, when
staff prepares the
Budget in July, the
PG&E estimate may be
outdated
Use latest market
data in Cal-CCA
NewGen model
after calibrating
the NewGen
model to PG&E’s
forecasted rates
Likely aligns revenues
closer to rates that PG&E
will update in October
Better aligns revenues with
power supply costs
Primarily for budget setting
purposes
Additional expenditures
based on headroom
projections can be made
by the Board in December
when actual PG&E and
PCIA rates are known
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Item 4
PRESENTATION
1 Issue: Update Reserve Targets Staff Recommendation Implications/Reasons 1 Ensure SVCE maintains sufficient
reserves to manage risks such as those
modeled under the Stress Test analyses
Staff will update the stress test analyses
in July using market prices consistent
with those used to develop the annual
budget
Target to keep reserves above 120 Days
Cash On Hand (DCOH) for FY 2023-
2024 and FY 2024-2025
Reset Upper Reserve Target such that
over the next 5 fiscal years reserves do
not fall below 90 DCOH
FY 24 margins not guaranteed
given true-up in 2023 for PCIA
and PG&E Gen rate
If adverse conditions
materialize, need 120 days to
reshape strategy and secure
additional liquidity
Increase upper reserve target
to take advantage of good
margin years to manage risks
over 5-year period
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Item 4
PRESENTATION
Additional Funding for Programs, Customer Discounts,
and Building Reserves
1% customer discount over 12 months of
2024 is ~$5 million*
1% discount over 9 months (Jan -Sep
2024) ~$3.5 million*
Monthly Average Bill Savings of 1%*
Discount:
Residential - ~$0.67
Small Commercial - ~$2.41
Medium Commercial -~$26.58
Issue: Balancing
Priorities
Staff Recommendation Implications/Reasons
Continue to provide
competitively-priced and
high-valued services to
SVCE customers
Funds not needed to
cover cost-of-service flow
to customers via lower
SVCE rates (discount to
comparable PG&E rates)
Cost-of-service includes
funds needed to cover
operations, meet reserve
targets, and fund
decarbonization programs
To be developed later after
completing the budget analysis
Likely to keep current discount
through the end of this year
Set a preliminary discount for
next year
Board can change the budgeted
discount rate once actual PG&E rates
are known towards the end of the
year
Staff plans to present several options
to the Board on different levels of
discount rates, additional spending
on programs, and set aside for
reserves
Reaching new target
reserve levels ensures
SVCE can withstand
adverse risk scenarios
Keeping the discount
rate to a reasonable
level
Enables additional
funding for valued
customer programs
such as
decarbonization
efforts
Ensures there’s more
organizational
resiliency to respond
to risks over the 5-yr
planning horizon
* Based on 4/27/23 Forward prices 7
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Item 4
PRESENTATION
Power Supply Expenses
(>90% of Expenses)
Issue: Volatile Power Prices Staff Recommendation Implications/Reasons Power prices are near record high levels
and are very volatile
In addition to PG&E Gen Rate and PCIA
uncertainty, power price volatility makes
budget projections highly uncertain
Budget will be developed based on a
snapshot of market prices in July
Currently hedged ~79%
Remaining 21% exposed to volatile market
prices
Contract delays/renegotiations further add
uncertainty
Resource adequacy requirements are
changing, and costs are high, but more
hedged next year
Continue hedging to current ERM
(Energy Risk Management) targets
Continue with SVCE’s 100% clean policy
Maintain a high customer value
proposition with 100% clean
energy and serve SVCE’s
mission
Furthers SVCE focus toward
24x7 clean energy goal
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Item 4
PRESENTATION
Other Costs
(Staffing, Cost of living/Merit, Operations)
Status Staff Recommendation Implications/Reasons
Review and assess staffing in all
areas of the organization
10 new budgeted positions
added in FY22-23 budget
11 new staff hired since Sept
2022
4 remaining vacancies
Adjust employee salaries for
cost-of-adjustment and
merit/promotions
Review existing employee
benefits to remain competitive
with peer CCAs
Decarb Programs continue to
ramp -quantity of rebates /
scope of outreach
Current budgeted headcount of 49
Directors will be surveyed for future staffing
needs during budget development process
Adjustment for COLA
Consider basing on 6-month (Jan -June
2023) rolling average of SF Bay Area CPI -
current trailing 6-mo average is 5.48%
CEO discretion applied depending on
employee pay relative to market range,
performance, and date of hire
Any additional increases for merit and
promotions based on CEO discretion
Employee benefits -to be reviewed/
updated during budget process
Evaluate staff levels needed to:
Scale up programs team
Reduce high level of existing employee workload
Advance strategic focus area goals
Create organizational depth for business continuity
Sustained investments in cybersecurity
preparedness and business process optimization
projects
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Item 4
PRESENTATION
Next Steps
Discussion of the budget framework with the
Executive Committee
Analyze PG&E’s forecast of 2024 generation and
PCIA rates
Staff to develop recommendations with some
options for:
Customer Discount Levels
Additional funding for Programs
Set aside for Reserves
Staffing Needs
Employee Cost of Living, Merit, and Benefits adjustments May 12 May/June August (tbd) August 9
Present draft budget for Finance Committee review in early August and then to the Board Board adopts the budget in September
10 Item 4
PRESENTATION
Thank you! / Questions?
11 SVCE PG&E SVCE PG&E SVCE PG&E SVCE PG&E
Rate Schedule (eff. Jan 1, 2023) E-TOUC E-TOUC B-1 B-1 B-10 B-10 B-19S B-19S Average Usage (kWh/month) 491 491 1,851 1,851 19,390 19,390 148,625 148,625 Annual Peak Demand (kW) 499 499
PG&E Electric Delivery $ 93.36 $ 93.36 $ 334.88 $ 334.88 $ 3,484.91 $3,484.91 $18,457.74 $18,457.74 Electric Generation $ 71.63 $ 76.66 $ 258.55 $ 276.71 $ 3,319.99 $3,550.05 $20,835.80 $22,292.26 PG&E Added Fees (PCIA, Franchise) $ 1.96 $ - $ 7.09 $ - $ 91.06 $ - $ 564.78 $ - Average Total Cost $ 166.95 $ 170.02 $ 600.52 $ 611.59 $ 6,895.96 $7,034.96 $39,858.32 $40,750.00 Average Monthly Savings $ 3.07 $ 11.07 $ 139.00 $ 891.68 Residential Small Commercial Medium Commercial Large Commercial Item 4
PRESENTATION
(^) Typical Customer Bill Savings
(Current Rates)
12 Item 4
PRESENTATION
Hedged 79% for FY24
O Current Energy Hedge Levels
Table 1Calendar Year Energy NOP Tolerance Bands
Period* Minimum
Tolerance
Maximum
Tolerance
Prompt Quarter 85% 110%
Current Balance
of Year
80% 110%
Year 2 70% 90%
Year 3 55% 80%
Year 4 50% 80%
Year 5 50% 80%
Net Open Position Tolerance and Positions
120%
40%
20%
0%
2023 Q 2023 2024 2025 2026 2027
Base ^■Tolerance Range -O-Contracted
13 SILICON VALLEY CLEAN ENERGY
MY 2022-23 OPERATING BUDGET
($ in thousands)
MY 2022-23
ADJUSTED
DESCRIPTION BUDGET
ENERGY REVENUES
Energy Sales 522,853
Green Prime 1,055
Other Income 50
TOTAL ENERGY REVENUES 523,958
ENERGY EXPENSES
Power Supply 392,436
OPERATING MARGIN 131,522
OPERATING EXPENSES
Data Management 3,413
PG&E Fees 1,470
Salaries and Retirement 11,285
Professional Services 8,016
Marketing & Promotions 862
Notifications 131
Lease 525
General & Administrative 1,857
TOTAL OPERATING EXPENSES 27,559
OPERATING INCOME (LOSS) 103,963
NON-OPERATING REVENUES
Interest Income 3,870
Grant Income 0
TOTAL NON-OPERATING REVENUES 3,870
NON-OPERATING EXPENSES
Financing 3
Interest 0
TOTAL NON-OPERATING EXPENSES 3
TOTAL NON-OPERATING INCOME
(EXPENSES) 3,867
CHANGE IN NET POSITION 107,830
CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER
Capital Outlay 200
Transfer to CRCR Fund 0
Transfer to Program Fund 9,765
Nuclear Allocation 1,900
Multi Family Direct Install Program 9,500
Electrification Discount Program 9,500
Customer Bill Relief 3,600
Other 0
TOTAL CAPITAL EXPENDITURES, INTERFUND
TRANSFERS & OTHER $34,465
BALANCE AVAILABLE FOR RESERVES $73,365
Item 4
PRESENTATION
2022-2023 Mid¬
Year Operating
Budget
14 New SV Clean Energy
PowerPoint Template
Subtitle
Item 5
PRESENTATION
SILICON VALLEY
CLEAN ENERGY
Treasurers Report Format
Changes
Amrit Singh
Aidas Baublys
Finance and Administration Committee
May 12, 2023
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Item 5
PRESENTATION
Purpose
Discuss Proposed Changes to the
Monthly Treasurers Report
Staff is revising the monthly
Treasurers report to more concisely
and informatively represent financials
Main Areas of Discussion
Review Changes to Report:
Summary Pages
Investment Summary Reports
Customer Data
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Item 5
PRESENTATION
CD Old Reporting vs New
Old Format: New Format:
Summary Summary
FYTD Financial Statements:
Statement of Net Position
FYTD Statement of Revenues / Expenses
FYTD Statement of Cash Flows
Budgetary Comparisons:
Statement of Revenues / Expenses
Program Funding / Expenses
FYTD Financial Statements:
Statement of Net Position
FYTD Statement of Revenues / Expenses
FYTD Statement of Cash Flows
Budgetary Comparisons:
Statement of Revenues / Expenses
Program Funding / Expenses
Monthly Statement of Revenues / Expenses Monthly Statement of Revenues / Expenses Investment Summary Investment Summary
Number of Customer Accounts
Accounts Receivable Aging Report
Retail Load Statistics: Sales, Number of
Accounts, Participation, Receivable Aging 3
Financial Highlights for the month of February 2023:
> SVCE operations resulted in a change in net position of $13.3 million for the month of February and $42.5 million for fiscal-year-to-date (FYTD). > Retail GWh sales for the month landed 5.3% above budget. > FYTD operating margin of $50.2 million or ~26.1% is above amended budget expectations of 13.1% operating margin for the fiscal year to date. > FYTD Power Supply costs are -14.6% below mid-year budget. > SVCE is investing ~93.4% of available funds generating FYTD interest/divident income of $1.5 million.
Change in Net Position Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Total Amended
Budget
Actual 10,608 10,380 2,026 6,211 13,295 - - - - - - - 42,520 73,365 Power Supply Costs Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Total Amended
Budget
Energy & REC's 18,322 15,903 13,022 10,566 9,996 67,809 Wholesale Sales (976) (300) (436) - - (1,711)
Capacity 4,101 4,063 4,228 2,207 2,360 16,958
CAISO Charges (538) 3,364 10,935 2,124 9,626 25,510
NEM Expense 204 (150) (438) (510) (136) (1,030)
Charge/Credit (IST/Net Rev) 2,104 (1,060) 8,054 21,448 4,167 34,712 Net Power Costs 23,218 21,819 35,365 35,834 26,012 - - - - - - - 142,249 392,436 Other Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Total Amended
Budget
Capital Expenditures 34 - 4 - 17 55 200
Energy Programs 73 182 898 156 158 1,466 15,007
Load Statistics - GWh Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Total Amended
Budget
Retail Sales Actual 299 296 341 341 311 1,588
Retail Sales Budget 315 308 331 336 295 309 290 313 340 358 369 342 3,907 3,907 * The financial results in this report are preliminary and subject to change pending closing of the books for the fiscal year. Any potential changes are not expected to be significant.
Financial Statement Highlights* ($ in 000's)
SILICON VALLEY CLEAN ENERGY AUTHORITY
Item 5
PRESENTATION
Current Report - Summary Pages 1& 2
Other Statistics and Ratios
Working Capital
Current Ratio
Operating Margin
Expense Coverage Days
$261244,931
7.3 25.8%
194
Long-Term Debt $0
Total Accounts 277,956
Opt-Out Accounts (Month) 144
Opt-Out Accounts (FYTD) 379
Opt-Up Accounts (Month) (36)
Opt-Up Accounts (FYTD) (41)
Retail Sales - Month Retail Sales -YTD
Controllable O&M - Month Controllable 0&M- YTD
4 •
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Illustrative Report - not necessarily based on actual numbers Page 1 Balance Sheet Highlights:
> SVCE operations resulted in a change in net position of $13.3 million for the month of February and $42.5 million for fiscal-year-to-date (FYTD). > Net position increased further to $255.2 M
> SVCE is investing ~93.4% of available funds generating FYTD interest/divident income of $1.5 million. *Does not yet recognize unspent program dollars
SVCE Yield-bearing Accounts:
Combined Ending Balance 161.7 M
Total Interest/Div Earned FYTD 1.4 M
Average Return On Investmens** 3.8%
* Includes River City Bank (RCB) accounts - Money Market, Collateral and ICS; CAMP; PFM Portfolio ** Average annualized Yield for the current month
*The portfolio benchmark is the ICE BofAML 1-3 Year Treasury Index. Source: Bloomberg
SILICON VALLEY CLEAN ENERGY AUTHORITY
Financial Statement Highlights* ($ in millions)
February, 2023
223.3 M 233.7 235.7 M 241.9 M 255.2 M
-250 M
-150 M
-50 M
50 M
150 M
250 M
350 M
-16 M
-12 M
-8 M
-4 M
0 M
4 M
8 M
12 M
16 M
20 M
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Net Position Change in Net Position Change in Net Position*
Net Position (Right Y-Axes) MidYear Budget (Left Y-Axis) Actual (Left Y-Axes) 208 220 222 216
194
0 50
100
150
200
250
300
350
400
450
500
Oct Nov Dec Jan Feb
Days Cash on Hand (DCOH)
DCOH Maximum Reserves Target Reserves Minimum Reserves
$ 1,471.8 K
$ 91.5 K $ 111.4 K$ 172.9 K
$ 549.1 K $ 547.0 K
$ 0 K
$ 200 K
$ 400 K
$ 600 K
$ 800 K
$ 1,000 K
$ 1,200 K
$ 1,400 K
$ 1,600 K
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept
Investment Income
Actual Cumulative Budget Actual Money
Market
Account (RCB)
7%
Collateral
Account (RCB)
0%
Insured Cash
Sweep Account
(RCB)
6%
California Asset
Management Program
(CAMP)
87%
SVCE Yield-Bearing Accounts
X Month, 2023
Item 5
PRESENTATION
New Report -
Summary Page 1
Balance Sheet
Highlights
Change in Net
Position
Days Cash on Hand
(DCOH)
Investment Account
Summary
Investment
Breakdown
Investment Portfolio
performance vs
Benchmark
slome numbers in this slide are fictitious and used for illustrative purposes only. •
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Illustrative Report - not necessarily based on actual numbers Page 2 Summary of Actual Results vs. Budget (includes alocated but unspent program dollars):
> FYTD operating margin of $50.2 million or ~26.1% is above amended budget expectations of 13.1% operating margin for the fiscal year to date. > FYTD Power Supply costs are -14.6% below mid-year budget. > Retail GWh sales for the month landed 5.3% above budget.
Variance Explanation:
$ in thousands Actual Budget % Dif Actual Budget % Dif Main Drivers:
Revenue 40.3 M 38.6 M 4.2% 192.5 M 191.6 M 0.5%
Power Suply Cost 26.0 M 28.8 M -9.8% 142.2 M 166.5 M -14.6% Operating Margin 14.2 M 9.8 M 45.4% 50.2 M 25.0 M 100.5% Operating Expences (ex Power) 1.3 M 2.3 M -42.4% 7.6 M 11.6 M -33.9% Other Non-Operating Items -0.5 M -0.3 M 73.3% 50.2 M 25.0 M 100.5% Net Increase in Available Fund
Balance 13.4 M 7.8 M 72.5% 9.7 M -19.7 M -149.3%
Customer Load Statistics:
Total Accounts 277,956
Opt-Out Accounts (Month) 144
Opt-Out Accounts (FYTD) 379
Opt-Up Accounts (Month) (36)
Opt-Up Accounts (FYTD) (41)
Program Funds:
General Program Fund
CRCR Fund**
Electrification Discount Fund
** Customer Relief and Community Resilience Fund
* The financial results in this report are preliminary and subject to change pending closing of the books for the fiscal year. Any potential changes are not expected to be significant. Higher than projected load levels for December-February.
SILICON VALLEY CLEAN ENERGY AUTHORITY
Financial Statement Highlights* ($ in millions)
February, 2023
February Fiscal YTD
Reflects Interest Income and $19M transfer to Program Funds in December and $3.6M CRCR alocation in January Additional $19M Alocated to Program Funds
Beginning Balance End Balance YTD Contributions YTD Expenditures $ - $ 9,500,000 $ 9,500,000 $ -
January - the variance mainly reflects a big drop in prices from December'22 to January'23 resulting in $21.5M net power cost savings compading to MY Budget estimations
February - mainly reflects the below budget net power suply cost and saving in all categories of other operating expences. $ 28,536,229 $ 48,234,931 $ 21,165,000 $ 1,466,298
$ 7,982,993 $ 11,582,993 $ 3,600,000 $ -
$14M higher CAISO cost due to neutralities and September adjustment Staffing vacancies, underrunning professional services, lower marketing expenses and PG&E fees Power Supply
94.0%
Personnel
2.4%
Contract
Services
2.5%
G & A
1.0%
Depreciation
0.2%
YTD Operating Expenses
716 K 876 K 572 K
21,610 K
5,650 K
-3,000 K
2,000 K
7,000 K
12,000 K
17,000 K
22,000 K
Oct Nov Dec Jan Feb
Net Increase in Available Fund Balance
Comparing Actuals to Mid-Year Budget
250,207 250,391 250,506 250,466
27,507 27,476 27,450 27,484
92%
93%
94%
95%
96%
97%
98%
-
50,000
100,000
150,000
200,000
250,000
300,000
Oct Nov Dec Jan
Customer Accounts and Participation Rate
Res Accounts Com Accounts Customer Participation
-4%
-2%
0%
2%
4%
6%
-
50 100
150
200
250
300
350
400
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept
Retail Sales - Actual vs Budget (GWh)
Retail Sales Actual (GWh) Retail Sales Budget (GWh)
Load deviation from the Budget (Left Y-Axes)
X Month, 2023
Item 5
PRESENTATION
New Report -
Summary Page 2
Actual Results vs
Budget
Breakdown of
Operating Expenses
Key Operating
Numbers vs Budget
(for the Month and
FYTD)
Summary of
Customer Load and
Account Statistics
Program Funding and
Expenses
1 1 1 1
iniliiiilli mi
Some numbers in this slide are fictitious and used for illustrative purposes only.
YTD
Return on Investments Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Total $91,459 $111,370 $172,923 $549,063 $546,985 $0 $0 $0 $0 $0 $0 $0 $1,471,800 Portfolio Invested
Average daily portfolio available to invest* 172,316,490 194,339,856 206,387,935 204,912,664 186,285,344 Average daily portfolio invested 159,489,912 182,240,450 193,643,770 187,505,697 173,917,058 % of average daily portfolio invested 92.6% 93.8% 93.8% 91.5% 93.4% Detail of Portfolio
Annualized
Yield Carrying Value Interest Earned
Money Market - River City Bank 1.07% $10,567,974 $19,106 ICS Account** 2.32% $10,022,948 $17,597
CAMP Account*** 4.73% $140,996,992 $510,145
* Note: Balance available to invest does not include lockbox funds. ** IntraFi Cash Service Account (ICS) - River City Bank *** California Asset Management Program (CAMP)
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SILICON VALLEY CLEAN ENERGY AUTHORITY
INVESTMENTS SUMMARY
October 1, 2022 through February 28, 2023
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Item 5
PRESENTATION
O Current Report - Investment Summary
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Illustrative Report - not necessarily based on actual numbers Ending Balance of SVCE Accounts: Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Checking Account (RCB) $ 6,269,889 $ 9,104,028 $ 41,068,791 $ 23,271,450 $ 45,744,475 $ - $ - $ - $ - $ - $ - $ - Money Market Account (RCB) $ 190,073,783 $ 205,159,899 $ 181,299,497 $ 30,548,868 $ 10,567,974 $ - $ - $ - $ - $ - $ - $ - Pledgor Account (RCB) $ 11,610,937 $ 7,115,513 $ 4,631,418 $ 6,205,439 $ - $ - $ - $ - $ - $ - $ - $ - Collateral Account (RCB) $ 162,083 $ 162,159 $ 162,277 $ 162,415 $ 132,553 $ - $ - $ - $ - $ - $ - $ - Insured Cash Sweep Account (RCB) $ - $ - $ - $ 10,005,352 $ 10,022,948 $ - $ - $ - $ - $ - $ - $ - California Asset Management Program (CAMP) $ - $ - $ - $ 140,486,848 $ 140,996,992 $ - $ - $ - $ - $ - $ - $ - PFM Asset Management Investment Portfolio $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Ending Balance $ 208,116,692 $ 221,541,600 $ 227,161,983 $ 210,680,372 $ 207,464,943 $ - $ - $ - $ - $ - $ - $ - Return On Investments:
Annual % Yield Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Money Market Account (RCB) 0.50% 0.58% 0.85% 1.01% 1.07% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Collateral Account (RCB) 0.50% 0.58% 0.86% 1.00% 1.11% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% IntraFi Cash Service Account ("ICS") 0.00% 0.00% 0.00% 2.19% 2.32% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% California Asset Management Program (CAMP) 0.00% 0.00% 0.00% 4.53% 4.73% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% PFM Asset Management Investment Portfolio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Average Return On Investmens: 0.51% 0.57% 0.87% 3.46% 3.77% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Interest Earned Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Money Market Account (RCB) $ 67,742 $ 86,116 $ 139,598 $ 49,401 $ 19,106 $ - $ - $ - $ - $ - $ - $ - Collateral Account (RCB) $ 69 $ 77 $ 118 $ 138 $ 138 $ - $ - $ - $ - $ - $ - $ - IntraFi Cash Service Account ("ICS") $ - $ - $ - $ 5,352 $ 17,597 $ - $ - $ - $ - $ - $ - $ - California Asset Management Program (CAMP) $ - $ - $ - $ 486,848 $ 510,145 $ - $ - $ - $ - $ - $ - $ - PFM Asset Management Investment Portfolio $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Interest/Div Earned $ 67,811 $ 86,193 $ 139,716 $ 541,738 $ 546,985 $ - $ - $ - $ - $ - $ - $ - CAMP Portfolio Statistics
As of February 28, 2023
Beginning Market Value $ 140,486,848
Ending Market Value $ 140,996,992
Amount Invested
Yield at Market 4.53% Weighted Average Maturity (days) 28 PFM Portfolio Statistics
As of February 28, 2023
Portfolio Par Value
Portfolio Market Value
Amount Invested
Yield at Cost
Yield at Market
Benchmark Yield Weighted Average Maturity (days)
SVCE Invetment Policy:
https://svcleanenergy.org/wp-content/uploads/2018/10/FP-08_Investments-Policy-F.pdf
SILICON VALLEY CLEAN ENERGY AUTHORITY
INVESTMENTS SUMMARY
October 1, 2022 through February 28, 2023
2.00%
7.70%
39.75%
37.03%
6.64% 6.88%
0.00%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0 - 6 Months 6 - 12 Months1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Over 5 Years Maturity Distribution
U.S. Treasury
Bond / Note
38%
Supra-National
Agency Bond /
Note
3%
Municipal Bond /
Note…
Federal Agency
Commercial…
Mortgage-Backed Security
FA Bond/Note
15%
Corporate Note
21%
Certificate of
Deposit
1%
Asset-Backed
Security
15%
SVCE PFM Portfolio Investment
Repurchase
Agreements, 33.6%
Certificates of
Deposit, 25.6%
Commercial Paper,
29.6%
US Agencies , 5.3%
US Treasuries,
1.6%
Muney Market
Funds, 1.6%
SupraNational
Debt, 0.6%
Corporate Notes,
2.3%
Camp Pool Composition (based on market value) Comparison to Banchmark Chart will be included once we have 3 Months return
data with PFM
Comparison to Banchmark
Chart will be included once
we have 3 Months return
data with PFM
Item 5
PRESENTATION
New Report -
Investment
Summary
Balances of SVCE
Accounts
Breakdown of
Annualized Returns
on Investments
Interest Earned
CAMP Portfolio
Statistics
PFM Portfolio
Statistics
Item 5
PRESENTATION
Thousands
Thousands
Current Report- Customer Accounts &
Receivables
CUSTOMER ACCOUNTS
RESIDENTIAL ACCOUNTS
NON-RESIDENTIAL ACCOUNTS
28.0 SILICON VALLEY CLEAN ENERGY AUTHORITY
ACCOUNTS RECEIVABLE AGING REPORT
October November December January February March April May June July August September 0 to 30 days 77.4% 76.1% 80.5% 82.3% 81.3%
31 to 60 days 7.6% 7.9% 5.1% 4.8% 5.3%
61 to 90 days 4.6% 4.8% 4.0% 2.7% 3.2%
91 to 120 days 3.4% 2.9% 2.3% 2.5% 2.1%
Over 120 days 7.0% 8.3% 8.1% 7.8% 8.2%
AGE SUMMARY
Accounts Receivable Days
30 Days
$43,599,536
TOTAL DUE
Bad Debt % (Budget)
1%
•
•
•
•
•
•
Illustrative Report - not necessarily based on actual numbers Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept YTD
Retail Sales Actual (GWh) 307 311 341 341 311 1,611
Retail Sales Budget (GWh) 315 308 331 336 295 309 290 313 340 358 369 342 1,290 Load deviation from the Budget (Left Y-Axes) -2.5% 1.1% 3.1% 1.3% 5.3% 24.9% Customer Participation Rate Res 96.4% 96.4% 96.4% 96.4% 96.4% Customer Participation Rate Com 96.7% 96.7% 96.7% 96.7% 96.7% Total Accounts 277,714 277,867 277,956 277,956 277,956
Opt-Out Accounts 74 62 99 144 144 523
Opt-Up Accounts -3 4 -6 -36 -36 -77
0.08 30.37
Age Summary (as of 2/27/2023)
<30 days $35,455,725
<60 days $2,295,688
<90 days $1,381,371
<120 days $905,906
Older $3,560,846
February 2023 FYTD
Bad Debt % (Actual)
X%
TOTAL DUE
Bad Debt % (Budget )
X%
Accounts Receivable Days
30 Days
$43,599,536
SILICON VALLEY CLEAN ENERGY AUTHORITY
RETAIL SALES, CUSTOMER ACCOUNTS AND AGING REPORT
'17-'18 '18-'19 '19-'20 '20-'21 21-'22
Total 308551.8 417275.08 415187.01 639454.85 885995
% Revenue 0.001233704 0.001427028 0.001398734 0.002636939 0.002453493 Average/Month 25712.65 34772.92333 34598.9175 79931.85625 73832.91667 0 10000
20000
30000
40000
50000
60000
70000
80000
90000
0 100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
SVCE Write-offs By Fiscal Year
Item 5
PRESENTATION
New Report -
Customer Load /
Account
Statistics
Retails Sales (GWH)
vs Budget
Customer
Participation Rate
Number of Accounts
Opt-Outs & Opt-Ups
Receivable Aging
Summary
Customer
Delinquency
Information
SVCEs Arrearage Total for customers 31+ days late, 120+ days late >120 Days 31+ Days
• Green arrow indicates receipt of
$1.3M in Federal CAPP funds
Date Amount
High 11/29/2021 $7.99M
Low 4/17/2020 $2.54M
Current 1/30/2023 $7.45M
• An additional $717k in CAPP
funding provided winter ’23
• Growth at red arrow indicates short¬
term PG&E billing-hold issue in falL^
’22 that was quickly resolved.
Item 5
PRESENTATION
Thank you! / Questions?
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