Item 5
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 5A
______________________________________________________________________________ TO: Board of Directors
FROM: Mitch Sears, Executive Director
Edward Burnham, Finance and Operations Director
SUBJECT: Financial Update – January 31, 2023 (unaudited) financial statements (with comparative year to date information) and Actual vs. Budget year to date ending January 31, 2023
DATE: June 15, 2023
RECOMMENDATION:
Accept the following Financial Statements (unaudited) for the period of January 1, 2023 to January 31, 2023 (with comparative year to date information) and Actual vs. Budget year to date ending January 31, 2023.
BACKGROUND & DISCUSSION:
The attached financial statements are prepared in a form to satisfy the debt covenants with River City Bank pursuant to the Line of Credit and are required to be prepared monthly.
The Financial Statements include the following reports:
• Statement of Net Position
• Statement of Revenues, Expenditures and Changes in Net Position • Statement of Cash Flows
In addition, Staff is reporting the Actual vs. Budget variances year to date ending January 31, 2023.
Financial Statements for the period January 1, 2023 – January 31, 2023 In the Statement of Net Position, VCE, as of January 31, 2023, has a total of $5,968,106 in its checking, money market and lockbox accounts, $1,100,000 restricted assets for the Debt Service Reserve account, $1,800,000 restricted assets related to supplier deposits, and $2,066,806 restricted assets for the Power Purchases Reserve account. VCE has incurred obligations from Member agencies and owes as of January 31, 2023 a total of $11,939. VCE member obligations are incurred monthly due to staffing, accounting, and legal services.
Item 5
The term loan with River City Bank includes a current portion of $487,492 and a long-term portion of 181,284. On January 31, 2022, VCE’s net position was $13,814,322.
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $ 6,405,983 of revenue (net of allowance for doubtful accounts), of which $6,523,365 was billed in January, and $3,236,478 represent estimated unbilled revenue. The cost of electricity for the January revenue totaled $7,586,903. For January, VCE’s gross margin was approximately -7% and the net loss totaled ($1,596,212). The year-to-date change in net position was ($1,596,212).
In the Statement of Cash Flows, VCE cash flows from operations were 1,326,151 due to January cash receipts of revenues being more than the monthly cash operating expenses.
Actual vs. Budget Variances for the year to date ending January 31, 2023 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – ($1,888,017) and -23% – Unfavorable variance revenue model error on the timing of rate change isolated to January-2023 and retail load variance lower than forecasted. • Purchased Power – ($321,903) and -4% – Unfavorable variance due to gas prices driving short-term power market increases during winter months.
• Wholesale Energy Services – (66,810) and 130% unfavorable variance related to the transition of services to TEA starting in Q123 budgeted for Q223.
• Programs – AgFIT – 53,995 and 98% favorable variance for timing difference for the amortized budget.
Attachments:
1) Financial Statements (Unaudited) January 1, 2023 to January 31, 2023 (with comparative year to date information.)
2) Actual vs. Budget for the year to date ending January 31, 2023
VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF JANUARY 1 TO JANUARY 31, 2023
PREPARED ON APRIL 6, 2023
2 ASSETS
Current assets:
Cash in Yolo County Treasury
Cash and cash equivalents 5,968,106 $
Accounts receivable, net of allowance 10,629,761 Accrued revenue 3,348,687 Prepaid expenses 16,636 Other current assets and deposits 1,959,196 Total current assets 21,922,386 Restricted assets:
Debt service reserve fund 1,100,000
Power purchase reserve fund 2,066,806
Total restricted assets 3,166,806
Noncurrent assets:
Total noncurrent assets - TOTAL ASSETS $ 25,089,192
LIABILITIES
Current liabilities:
Accounts payable 544,370 $
Accrued payroll 130,095 Interest payable 2,056 Due to member agencies 11,939 Accrued cost of electricity 7,161,025 Other accrued liabilities 891,373 Security deposits - energy supplies 1,800,000 User taxes and energy surcharges 65,237 Limited Term Loan 487,492 Total current liabilities 11,093,587 Noncurrent liabilities Term Loan- RCB 181,284
Total noncurrent liabilities 181,284 TOTAL LIABILITIES $ 11,274,871
NET POSITION
Net position:
Local Programs Reserve 224,500 Restricted 3,166,806 Unrestricted 10,423,016 TOTAL NET POSITION $ 13,814,322 (UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
JANUARY 31, 2023
3 FOR THE PERIOD
ENDING
JANUARY 31, 2023 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net 6,405,983 $ 6,405,983 $
Other revenue 41,844 41,844
TOTAL OPERATING REVENUES 6,447,827 6,447,827
OPERATING EXPENSES
Cost of electricity 7,586,903 7,586,903
Contract services 303,268 303,268
Staff compensation 118,805 118,805
General, administration, and other 46,325 46,325
TOTAL OPERATING EXPENSES 8,055,301 8,055,301
TOTAL OPERATING INCOME (LOSS) (1,607,474) (1,607,474)
NONOPERATING REVENUES (EXPENSES)
Interest income 13,259 13,259
Interest and related expenses (1,997) (1,997)
TOTAL NONOPERATING REVENUES (EXPENSES) 11,262 11,262
CHANGE IN NET POSITION (1,596,212) (1,596,212)
Net position at beginning of period 15,410,534 15,410,534 Net position at end of period $ 13,814,322 $ 13,814,322 (UNAUDITED)
CHANGES IN NET POSITION
FOR THE PERIOD OF JANUARY 1, 2023 TO JANUARY 31, 2023
(WITH COMPARATIVE YEAR TO DATE INFORMATION)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENDITURES AND
4 FOR THE
PERIOD ENDING
JANUARY 31,
2023 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales 6,959,389 $ 6,959,389 $ Payments received from other revenue sources 41,844 41,844 Payments to purchase electricity (5,034,903) (5,034,903) Payments for contract services, general, and adminstration (535,184) (535,184) Payments for staff compensation (104,995) (104,995)
Net cash provided (used) by operating activities 1,326,151 1,326,151 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Loans from member agencies
Draw of line of credit
Transfer to restricted cash
Principal payments of Debt 137,808 137,808 Interest and related expenses (2,189) (2,189) Net cash provided (used) by non-capital financing activities 135,619 135,619 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of nondepreciable assets
Acquisition of capital assets
Net cash provided (used) by capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 13,259 13,259 Net cash provided (used) by investing activities 13,259 13,259 NET CHANGE IN CASH AND CASH EQUIVALENTS 1,475,029 1,475,029 Cash and cash equivalents at beginning of period 7,659,883 7,659,883 Cash and cash equivalents at end of period $ 9,134,912 9,134,912 $ Cash and cash equivalents included in:
Cash and cash equivalents 5,968,106 5,968,106 Restricted assets 3,166,806 3,166,806 Cash and cash equivalents at end of period $ 9,134,912 $ 9,134,912 (WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
FOR THE PERIOD OF JANUARY 1 TO JANUARY 31, 2023
5 FOR THE
PERIOD ENDING
JANUARY 31,
2023 YEAR TO DATE
Operating Income (Loss) (1,607,474) $ (1,607,474) $
(Increase) decrease in net accounts receivable 455,325.88 455,325.88 (Increase) decrease in accrued revenue 81,710 81,710.00 (Increase) decrease in prepaid expenses (16,636) (16,636.00) Increase (decrease) in accounts payable 144,841 144,841.00 Increase (decrease) in accrued payroll 13,810 13,810.00 Increase (decrease) in due to member agencies (194,505) (194,505.00) Increase (decrease) in accrued cost of electricity 2,552,000 2,552,000.00 Increase (decrease) in other accrued liabilities (119,291) (119,291.49) Increase (decrease) in user taxes and energy surcharges 16,371 16,371.00 Net cash provided (used) by operating activities $ 1,326,151 1,326,151 $ FOR THE PERIOD OF JANUARY 1 TO JANUARY 31, 2023
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY
2023 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 01/31/23
Description YTD
Actuals
YTD
Budget
YTD
Variance
%
over/-under
Electric Revenue $ 6,405,983 $ 8,294,000 $ (1,888,017) -23% Interest Revenues $ 13,259 $ 3,500 $ 9,759 279%
Purchased Power $ 7,586,903 $ 7,265,000 $ 321,903 4%
Purchased Power Base $ 7,586,903 $ 6,919,000 $ 667,903 10% Purchased Power Contingency 2% $ - $ 346,000 $ (346,000) -100% Labor & Benefits $ 115,866 $ 120,200 $ (4,334) -4%
Salaries & Wages/Benefits $ 92,568 $ 100,000 $ (7,432) -7% Contract Labor (SMUD Staff Aug) $ - $ 2,500 $ (2,500) -100% Human Resources & Payroll $ 23,298 $ 17,700 $ 5,598 32% Office Supplies & Other Expenses $ 17,029 $ 17,200 $ (171) -1% Technology Costs $ 3,432 $ 3,100 $ 332 11%
Office Supplies $ 1,610 $ 200 $ 1,410 705%
Travel $ - $ 500 $ (500) -100%
CalCCA Dues $ 10,752 $ 11,100 $ (348) -3%
CC Power $ - $ 2,100 $ (2,100) -100%
Memberships $ 1,235 $ 200 $ 1,035 518%
Contractual Services $ 275,874 $ 224,400 $ 51,474 23%
Other Contract Services $ - $ 2,200 $ (2,200) -100%
Don Dame $ 800 $ 900 $ (100) -11%
SMUD - Credit Support $ 35,076 $ 45,600 $ (10,524) -23% SMUD - Wholesale Energy Services $ 118,110 $ 51,300 $ 66,810 130% SMUD - Call Center $ 68,646 $ 69,100 $ (454) -1%
SMUD - Operating Services $ 18,694 $ 5,300 $ 13,394 253% Commercial Legal Support $ 3,860 $ 2,500 $ 1,360 54%
Legal General Counsel $ - $ 13,600 $ (13,600) -100%
Regulatory Counsel $ 13,765 $ 17,500 $ (3,736) -21%
Joint CCA Regulatory counsel $ 3,959 $ 2,800 $ 1,159 41% Legislative - (Lobbyist) $ 5,500 $ 5,500 $ - 0%
Accounting Services $ 5,964 $ 2,400 $ 3,564 149%
Financial Consultant $ - $ 3,500 $ (3,500) -100%
Audit Fees $ 1,500 $ 2,200 $ (700) -32%
Marketing $ 27,444 $ 22,000 $ 5,444 25%
Marketing Collateral $ 27,394 $ 21,000 $ 6,394 30%
Community Engagement Activities & Sponsorships $ 50 $ 1,000 $ (950) -95% Programs $ 21,036 $ 14,500 $ (14,500) -100%
Program Costs $ - $ 14,500 $ (14,500) -100%
Programs - EV $ 14,950 $ - $ 14,950 100%
Programs - AgFIT $ 1,005 $ 55,000 $ (53,995) -98%
Programs - Heat Pump $ 5,081 $ - $ 5,081 100%
Rents & Leases $ 8,238 $ 2,200 $ 6,038 274%
Hunt Boyer Mansion $ 8,238 $ 2,200 $ 6,038 274%
Other A&G $ 2,911 $ 38,150 $ (35,239) -92%
Development - New Members $ - $ 2,100 $ (2,100) -100%
Strategic Plan Implementation $ - $ 12,000 $ (12,000) -100% PG&E Data Fees $ (29) $ 23,000 $ (23,029) -100%
Insurance $ 2,940 $ 950 $ 1,990 209%
Banking Fees $ - $ 100 $ (100) -100%
Miscellaneous Operating Expenses $ - $ 600 $ 600 100%
Contingency $ - $ 20,000 $ 20,000 100%
TOTAL OPERATING EXPENSES 8,055,300 $ 7,724,250 $ 351,214 $ 5% Interest on RCB loan $ 1,997 $ 2,200 $ (203) -9%
Interest Expense - Bridge Loan $ - $ 2,500 $ (2,500) -100% NET INCOME (1,638,056) $ 568,550 $ (2,226,770) $ -392%
Item 5
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 5B
______________________________________________________________________________ TO: Board of Directors
FROM: Mitch Sears, Executive Director
Edward Burnham, Finance and Operations Director
SUBJECT: Financial Update – February 28, 2023 (unaudited) financial statements (with comparative year to date information) and Actual vs. Budget year to date ending February 23, 2023
DATE: June 15, 2023
RECOMMENDATION:
Accept the following Financial Statements (unaudited) for the period of February 1, 2023 to February 28, 2023 (with comparative year to date information) and Actual vs. Budget year to date ending February 28, 2023.
BACKGROUND & DISCUSSION:
The attached financial statements are prepared in a form to satisfy the debt covenants with River City Bank pursuant to the Line of Credit and are required to be prepared monthly.
The Financial Statements include the following reports:
• Statement of Net Position
• Statement of Revenues, Expenditures and Changes in Net Position • Statement of Cash Flows
In addition, Staff is reporting the Actual vs. Budget variances year to date ending February 28, 2023.
Financial Statements for the period February 1, 2023 – February 31, 2023 In the Statement of Net Position, VCE, as of February 28, 2023, has a total of $2,200,070 in its checking, money market and lockbox accounts, $1,100,000 restricted assets for the Debt Service Reserve account, $1,800,000 restricted assets related to supplier deposits, and $3,404,816 restricted assets for the Power Purchases Reserve account. VCE has incurred obligations from Member agencies and owes as of Item 5
February 28, 2023 a total of $11,939. VCE member obligations are incurred monthly due to staffing, accounting, and legal services.
The term loan with River City Bank includes a current portion of $443,882 and long-term portion of 181,284. On February 28, 2022, VCE’s net position is $13,769,235.
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $ 5,897,893 of revenue (net of allowance for doubtful accounts), of which $5,652,061 was billed in February, and $3,659,130 represent estimated unbilled revenue. The cost of electricity for the February revenue totaled $5,397,922. For February, VCE’s gross margin was approximate 8% and net loss totaled ($45,087). The year-to-date change in net position was ($1,641,299).
In the Statement of Cash Flows, VCE cash flows from operations were (2,398,369) due to February cash receipts of revenues being less than the monthly cash operating expenses.
Actual vs. Budget Variances for the year to date ending February 28, 2023 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – ($2,644,124) and -18% – Unfavorable variance revenue model error on the timing of rate change isolated to January-2023 and retail load variance lower than forecasted. • Purchased Power – ($183,825) and -1% – Unfavorable variance due to gas prices driving short-term power market increases during winter months.
• Wholesale Energy Services – (133,322) and 130% unfavorable variance related to the transition of services to TEA starting in Q123 budgeted for Q223.
• Operational Support Services (SMUD) – ($52,868) and 499% unfavorable variance related to Percentage of Income Payment Plan (PIPP) program implementation, bill presentment, and base green rate implementation. • Programs – AgFIT – 66,806 and 61% favorable variance for timing difference for the amortized budget.
Attachments:
3) Financial Statements (Unaudited) February 1, 2023 to February 28, 2023 (with comparative year to date information.)
4) Actual vs. Budget for the year to date ending February 28, 2023
VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF FEBRUARY 1 TO FEBRUARY 28, 2023
PREPARED ON APRIL 6, 2023
2 ASSETS
Current assets:
Cash in Yolo County Treasury
Cash and cash equivalents $ 2,200,070
Accounts receivable, net of allowance 10,480,628
Accrued revenue 3,659,130
Prepaid expenses 39,876
Other current assets and deposits 1,959,196
Total current assets 18,338,901
Restricted assets:
Debt service reserve fund 1,100,000
Power purchase reserve fund 3,404,816
Total restricted assets 4,504,816
Noncurrent assets:
Total noncurrent assets -
TOTAL ASSETS $ 22,843,717
LIABILITIES
Current liabilities:
Accounts payable $ 557,829
Accrued payroll 136,943
Interest payable 1,736
Due to member agencies 11,939
Accrued cost of electricity 4,867,081
Other accrued liabilities 1,044,486
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 29,302
Limited Term Loan 443,882
Total current liabilities 8,893,198
Noncurrent liabilities
Term Loan- RCB 181,284
Total noncurrent liabilities 181,284
TOTAL LIABILITIES $ 9,074,482
NET POSITION
Net position:
Local Programs Reserve 224,500
Restricted 4,504,816
Unrestricted 9,039,919
TOTAL NET POSITION $ 13,769,235
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
FEBRUARY 28, 2023
3 FOR THE PERIOD
ENDING
FEBRUARY 28, 2023 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net $ 5,897,893 $ 12,303,876
Other revenue - $ 41,844
TOTAL OPERATING REVENUES 5,897,893 $ 12,345,720
OPERATING EXPENSES
Cost of electricity 5,397,922 $ 12,984,825
Contract services 342,607 $ 645,875
Staff compensation 125,632 $ 244,437
General, administration, and other 89,092 $ 135,417
TOTAL OPERATING EXPENSES 5,955,253 $ 14,010,554
TOTAL OPERATING INCOME (LOSS) (57,360) $ (1,664,834)
NONOPERATING REVENUES (EXPENSES)
Interest income 14,009 $ 27,268
Interest and related expenses (1,736) $ (3,733)
TOTAL NONOPERATING REVENUES
(EXPENSES) 12,273 $ 23,535
CHANGE IN NET POSITION (45,087) $ (1,641,299)
Net position at beginning of period 13,814,322 $ 29,224,856 Net position at end of period $ 13,769,235 $ 27,583,557
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENDITURES AND
(UNAUDITED)
CHANGES IN NET POSITION
FOR THE PERIOD OF FEBRUARY 1, 2023 TO FEBRUARY 28, 2023 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
4 FOR THE
PERIOD ENDING
FEBRUARY 28,
2023 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 5,700,648 $ 12,660,037 Payments received from other revenue sources - $ 41,844 Payments to purchase electricity (7,691,866) $ (12,726,769) Payments for contract services, general, and adminstration (288,367) $ (823,551) Payments for staff compensation (118,784) $ (223,779)
Net cash provided (used) by operating activities (2,398,369) (1,072,218)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Principal payments of Debt (43,610) 94,198
Interest and related expenses (2,056) (4,245)
Net cash provided (used) by non-capital financing
activities (45,666) 89,953
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of nondepreciable assets
Acquisition of capital assets
Net cash provided (used) by capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 14,009 27,268
Net cash provided (used) by investing activities 14,009 27,268 NET CHANGE IN CASH AND CASH EQUIVALENTS (2,430,026) (954,997) Cash and cash equivalents at beginning of period 9,134,912 16,794,795 Cash and cash equivalents at end of period $ 6,704,886 $ 15,839,798 Cash and cash equivalents included in:
Cash and cash equivalents 2,200,070 8,168,176
Restricted assets 4,504,816 7,671,622
Cash and cash equivalents at end of period $ 6,704,886 $ 15,839,798
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
FOR THE PERIOD OF FEBRUARY 1 TO FEBRUARY 28, 2023
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
5 FOR THE
PERIOD ENDING
FEBRUARY 28,
2023 YEAR TO DATE
Operating Income (Loss) $ (57,360) $ (1,664,834)
(Increase) decrease in net accounts receivable 149,132.76 604,459 (Increase) decrease in accrued revenue (310,443) (228,733) (Increase) decrease in prepaid expenses (23,240) (39,876) Increase (decrease) in accounts payable 13,459 158,300
Increase (decrease) in accrued payroll 6,848 20,658
Increase (decrease) in due to member agencies - (194,505) Increase (decrease) in accrued cost of electricity (2,293,944) 258,056 Increase (decrease) in other accrued liabilities 153,113 33,822 Increase (decrease) in user taxes and energy surcharges (35,935) (19,564) Net cash provided (used) by operating activities $ (2,398,369) $ (1,072,218)
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
FOR THE PERIOD OF FEBRUARY 1 TO FEBRUARY 28, 2023
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
VALLEY CLEAN ENERGY
2023 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 02/28/23
Description YTD
Actuals
YTD
Budget
YTD
Variance
%
over/-under
Electric Revenue $ 12,303,876 $ 14,948,000 $ (2,644,124) -18% Interest Revenues $ 27,268 $ 7,000 $ 20,268 290%
Purchased Power $ 12,984,825 $ 12,801,000 $ 183,825 1%
Purchased Power Base $ 12,984,825 $ 12,191,000 $ 793,825 7% Purchased Power Contingency 2% $ - $ 610,000 $ (610,000) -100% Labor & Benefits $ 238,554 $ 240,400 $ (1,846) -1%
Salaries & Wages/Benefits $ 188,955 $ 200,000 $ (11,045) -6% Contract Labor (SMUD Staff Aug) $ - $ 5,000 $ (5,000) -100% Human Resources & Payroll $ 49,599 $ 35,400 $ 14,199 40% Office Supplies & Other Expenses $ 32,307 $ 34,400 $ (2,093) -6% Technology Costs $ 6,302 $ 6,200 $ 102 2%
Office Supplies $ 2,266 $ 400 $ 1,866 466%
Travel $ - $ 1,000 $ (1,000) -100%
CalCCA Dues $ 21,504 $ 22,200 $ (696) -3%
CC Power $ - $ 4,200 $ (4,200) -100%
Memberships $ 2,235 $ 400 $ 1,835 459%
Contractual Services $ 584,681 $ 445,500 $ 139,181 31%
Other Contract Services $ - $ 4,400 $ (4,400) -100%
Don Dame $ 507 $ 1,800 $ (1,293) -72%
SMUD - Credit Support $ 69,508 $ 87,800 $ (18,292) -21% SMUD - Wholesale Energy Services $ 235,922 $ 102,600 $ 133,322 130% SMUD - Call Center $ 137,345 $ 138,300 $ (955) -1%
SMUD - Operating Services $ 63,468 $ 10,600 $ 52,868 499% Commercial Legal Support $ 11,900 $ 5,000 $ 6,900 138%
Legal General Counsel $ 4,171 $ 27,200 $ (23,029) -85%
Regulatory Counsel $ 27,530 $ 35,000 $ (7,471) -21%
Joint CCA Regulatory counsel $ 8,338 $ 5,600 $ 2,738 49% Legislative - (Lobbyist) $ 10,500 $ 11,000 $ (500) -5%
Accounting Services $ 12,492 $ 4,800 $ 7,692 160%
Financial Consultant $ - $ 7,000 $ (7,000) -100%
Audit Fees $ 3,000 $ 4,400 $ (1,400) -32%
Marketing $ 61,247 $ 44,000 $ 17,247 39%
Marketing Collateral $ 61,197 $ 42,000 $ 19,197 46%
Community Engagement Activities & Sponsorships $ 50 $ 2,000 $ (1,950) -98% Programs $ 74,625 $ 29,000 $ (29,000) -100%
Program Costs $ - $ 29,000 $ (29,000) -100%
Programs - EV $ 26,350 $ - $ 26,350 100%
Programs - AgFIT $ 43,194 $ 110,000 $ (66,806) -61%
Programs - Heat Pump $ 5,081 $ - $ 5,081 100%
Rents & Leases $ 6,588 $ 4,400 $ 2,188 50%
Hunt Boyer Mansion $ 6,588 $ 4,400 $ 2,188 50%
Other A&G $ 27,727 $ 76,300 $ (48,573) -64%
Development - New Members $ - $ 4,200 $ (4,200) -100%
Strategic Plan Implementation $ - $ 24,000 $ (24,000) -100% PG&E Data Fees $ 21,847 $ 46,000 $ (24,153) -53%
Insurance $ 5,880 $ 1,900 $ 3,980 209%
Banking Fees $ - $ 200 $ (200) -100%
Miscellaneous Operating Expenses $ - $ 1,200 $ 600 50%
Contingency $ - $ 40,000 $ 20,000 50%
TOTAL OPERATING EXPENSES 14,010,553 $ 13,716,200 $ 281,528 $ 2% Interest on RCB loan $ 3,733 $ 4,300 $ (567) -13%
Interest Expense - Bridge Loan $ - $ 2,500 $ (2,500) -100% NET INCOME (1,683,143) $ 1,232,000 $ (2,902,318) $ -236% Item 5
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 5C
______________________________________________________________________________ TO: Board of Directors
FROM: Mitch Sears, Executive Director
Edward Burnham, Finance and Operations Director
SUBJECT: Financial Update – March 31, 2023 (unaudited) financial statements (with comparative year to date information) and Actual vs. Budget year to date ending March 31, 2023
DATE: June 15, 2023
RECOMMENDATION:
Accept the following Financial Statements (unaudited) for the period of March 1, 2023 to March 31, 2023 (with comparative year to date information) and Actual vs. Budget year to date ending March 31, 2023.
BACKGROUND & DISCUSSION:
The attached financial statements are prepared in a form to satisfy the debt covenants with River City Bank pursuant to the Line of Credit and are required to be prepared monthly.
The Financial Statements include the following reports:
• Statement of Net Position
• Statement of Revenues, Expenditures and Changes in Net Position • Statement of Cash Flows
In addition, Staff is reporting the Actual vs. Budget variances year to date ending March 31, 2023.
Financial Statements for the period March 1, 2023 – March 31, 2023 In the Statement of Net Position, VCE, as of March 31, 2023, has a total of $4,310,216 in its checking, money market and lockbox accounts, $1,100,000 restricted assets for the Debt Service Reserve account, $1,800,000 restricted assets related to supplier deposits, and $3,412,240 restricted assets for the Power Purchases Reserve account. VCE has incurred obligations from Member agencies and owes as of March Item 5
31, 2023 a total of $6,084. VCE member obligations are incurred monthly due to staffing, accounting, and legal services.
The term loan with River City Bank includes a current portion of $399,953 and long-term portion of 181,284. On March 31, 2022, VCE’s net position is $14,395,010.
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $ 6,873,783 of revenue (net of allowance for doubtful accounts), of which $7,549,454 was billed in March, and $3,177,457 represent estimated unbilled revenue. The cost of electricity for the March revenue totaled $5,640,639. For March, VCE’s gross margin was approximate 18% and net income totaled $625,775.
The year-to-date change in net position was ($1,015,524).
In the Statement of Cash Flows, VCE cash flows from operations were 2,148,125 due to March cash receipts of revenues being more than the monthly cash operating expenses.
Actual vs. Budget Variances for the year to date ending March 31, 2023 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – ($2,428,341) and -11% – Unfavorable variance revenue model error on the timing of rate change isolated to January-2023 and retail load variance lower than forecasted. • Purchased Power – ($435,464) and -2% – Unfavorable variance due to gas prices driving short-term power market increases during winter months.
• Wholesale Energy Services – ($281,443) and 130% unfavorable variance related to the transition of services to TEA starting in Q123 budgeted for Q223.
• Operational Support Services (SMUD) – ($69,160) and 435% unfavorable variance related to Percentage of Income Payment Plan (PIPP) program implementation, bill presentment, and base green rate implementation. • Programs – AgFIT – $100,752 and 61% unfavorable variance for timing difference for the amortized budget. • Banking Fees – $74,950 or 100% unfavorable variance due to timing difference for renewal of letter of credit budgeted in May-23
Attachments:
5) Financial Statements (Unaudited) March 1, 2023 to March 31, 2023 (with comparative year to date information.)
6) Actual vs. Budget for the year to date ending March 31, 2023
VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF MARCH 1 TO MARCH 31, 2023
PREPARED ON MAY 16, 2023
2 ASSETS
Current assets:
Cash in Yolo County Treasury
Cash and cash equivalents $ 4,310,216
Accounts receivable, net of allowance 8,427,447
Accrued revenue 5,336,887
Prepaid expenses 31,411
Other current assets and deposits 1,959,196
Total current assets 20,065,156
Restricted assets:
Debt service reserve fund 1,100,000
Power purchase reserve fund 3,412,240
Total restricted assets 4,512,240
Noncurrent assets:
Total noncurrent assets -
TOTAL ASSETS $ 24,577,396
LIABILITIES
Current liabilities:
Accounts payable $ 602,274
Accrued payroll 155,216
Interest payable 1,787
Due to member agencies 6,084
Accrued cost of electricity 5,853,987
Other accrued liabilities 1,136,887
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 44,914
Limited Term Loan 399,953
Total current liabilities 10,001,102
Noncurrent liabilities
Term Loan- RCB 181,284
Total noncurrent liabilities 181,284
TOTAL LIABILITIES $ 10,182,386
NET POSITION
Net position:
Local Programs Reserve 224,500
Restricted 4,512,240
Unrestricted 9,658,270
TOTAL NET POSITION $ 14,395,010
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
MARCH 31, 2023
3 FOR THE PERIOD
ENDING
MARCH 31, 2023 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net $ 6,873,783 $ 19,177,659
Other revenue 229,250 $ 271,094
TOTAL OPERATING REVENUES 7,103,033 $ 19,448,753
OPERATING EXPENSES
Cost of electricity 5,640,639 $ 18,625,464
Contract services 329,369 $ 975,244
Staff compensation 142,872 $ 387,309
General, administration, and other 377,701 $ 513,118
TOTAL OPERATING EXPENSES 6,490,581 $ 20,501,135
TOTAL OPERATING INCOME (LOSS) 612,452 $ (1,052,382)
NONOPERATING REVENUES (EXPENSES)
Interest income 15,110 $ 42,378
Interest and related expenses (1,787) $ (5,520)
TOTAL NONOPERATING REVENUES
(EXPENSES) 13,323 $ 36,858
CHANGE IN NET POSITION 625,775 $ (1,015,524)
Net position at beginning of period 13,769,235 $ 42,994,091 Net position at end of period $ 14,395,010 $ 41,978,567 (UNAUDITED)
FOR THE PERIOD OF MARCH 1, 2023 TO MARCH 31, 2023
(WITH COMPARATIVE YEAR TO DATE INFORMATION)
4 FOR THE
PERIOD ENDING
MARCH 31, 2023 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 7,264,821 $ 19,924,858 Payments received from other revenue sources 229,250 $ 271,094 Payments to purchase electricity (4,653,733) $ (17,380,502) Payments for contract services, general, and adminstration (567,614) $ (1,391,165) Payments for staff compensation (124,599) $ (348,378)
Net cash provided (used) by operating activities 2,148,125 1,075,907
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Principal payments of Debt (43,929) 50,269
Interest and related expenses (1,736) (5,981)
Net cash provided (used) by non-capital financing
activities (45,665) 44,288
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of nondepreciable assets
Acquisition of capital assets
Net cash provided (used) by capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 15,110 42,378
Net cash provided (used) by investing activities 15,110 42,378 NET CHANGE IN CASH AND CASH EQUIVALENTS 2,117,570 1,162,573 Cash and cash equivalents at beginning of period 6,704,886 23,499,681 Cash and cash equivalents at end of period $ 8,822,456 $ 24,662,254 Cash and cash equivalents included in:
Cash and cash equivalents 4,310,216 12,478,392
Restricted assets 4,512,240 12,183,862
Cash and cash equivalents at end of period $ 8,822,456 $ 24,662,254 (WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
FOR THE PERIOD OF MARCH 1 TO MARCH 31, 2023
5 FOR THE
PERIOD ENDING
MARCH 31, 2023 YEAR TO DATE
Operating Income (Loss) $ 612,452 $ (1,052,382)
(Increase) decrease in net accounts receivable 2,053,181.84 2,657,640 (Increase) decrease in accrued revenue (1,677,756) (1,906,490) (Increase) decrease in prepaid expenses 8,465 (31,411)
Increase (decrease) in accounts payable 44,445 202,745
Increase (decrease) in accrued payroll 18,273 38,931
Increase (decrease) in due to member agencies (5,855) (200,360) Increase (decrease) in accrued cost of electricity 986,906 1,244,962 Increase (decrease) in other accrued liabilities 92,402 126,223 Increase (decrease) in user taxes and energy surcharges 15,611 (3,952) Net cash provided (used) by operating activities $ 2,148,125 $ 1,075,907 FOR THE PERIOD OF MARCH 1 TO MARCH 31, 2023
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY
2023 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 03/31/23
Description YTD
Actuals
YTD
Budget
YTD
Variance
%
over/-under
Electric Revenue $ 19,177,659 $ 21,606,000 $ (2,428,341) -11% Interest Revenues $ 42,378 $ 10,500 $ 31,878 304%
Purchased Power $ 18,625,464 $ 18,190,000 $ 435,464 2%
Purchased Power Base $ 18,625,464 $ 17,323,000 $ 1,302,464 8% Purchased Power Contingency 2% $ - $ 867,000 $ (867,000) -100% Labor & Benefits $ 378,484 $ 360,600 $ 17,884 5%
Salaries & Wages/Benefits $ 303,875 $ 300,000 $ 3,875 1% Contract Labor (SMUD Staff Aug) $ - $ 7,500 $ (7,500) -100% Human Resources & Payroll $ 74,609 $ 53,100 $ 21,509 41% Office Supplies & Other Expenses $ 81,485 $ 51,600 $ 29,885 58% Technology Costs $ 3,572 $ 9,300 $ (5,728) -62%
Office Supplies $ 3,073 $ 600 $ 2,473 412%
Travel $ - $ 1,500 $ (1,500) -100%
CalCCA Dues $ 32,256 $ 33,300 $ (1,044) -3%
CC Power $ 41,029 $ 6,300 $ 34,729 551%
Memberships $ 1,555 $ 600 $ 955 159%
Contractual Services $ 913,535 $ 694,800 $ 218,735 31%
Other Contract Services $ - $ 6,600 $ (6,600) -100%
Don Dame $ 828 $ 2,700 $ (1,872) -69%
SMUD - Credit Support $ 91,111 $ 133,200 $ (42,089) -32% SMUD - Wholesale Energy Services $ 460,343 $ 178,900 $ 281,443 157% SMUD - Call Center $ 206,152 $ 207,500 $ (1,348) -1%
SMUD - Operating Services $ 85,060 $ 15,900 $ 69,160 435% Commercial Legal Support $ 8,396 $ 7,500 $ 896 12%
Legal General Counsel $ 3,811 $ 40,800 $ (36,989) -91%
Regulatory Counsel $ 20,672 $ 52,500 $ (31,829) -61%
Joint CCA Regulatory counsel $ 5,525 $ 8,400 $ (2,875) -34% Legislative - (Lobbyist) $ 16,500 $ 16,500 $ - 0%
Accounting Services $ 6,637 $ 7,200 $ (563) -8%
Financial Consultant $ - $ 10,500 $ (10,500) -100%
Audit Fees $ 8,500 $ 6,600 $ 1,900 29%
Marketing $ 62,170 $ 66,000 $ (3,830) -6%
Marketing Collateral $ 61,712 $ 63,000 $ (1,288) -2%
Community Engagement Activities & Sponsorships $ 458 $ 3,000 $ (2,542) -85% Programs $ 307,283 $ 43,500 $ (43,500) -100%
Program Costs $ - $ 43,500 $ (43,500) -100%
Programs - EV $ 36,450 $ - $ 36,450 100%
Programs - AgFIT $ 265,752 $ 165,000 $ 100,752 61%
Programs - Heat Pump $ 5,081 $ - $ 5,081 100%
Rents & Leases $ 4,938 $ 6,600 $ (1,662) -25%
Hunt Boyer Mansion $ 4,938 $ 6,600 $ (1,662) -25%
Other A&G $ 127,775 $ 114,450 $ 13,325 12%
Development - New Members $ - $ 6,300 $ (6,300) -100%
Strategic Plan Implementation $ - $ 36,000 $ (36,000) -100% PG&E Data Fees $ 43,705 $ 69,000 $ (25,295) -37%
Insurance $ 8,820 $ 2,850 $ 5,970 209%
Banking Fees $ 75,250 $ 300 $ 74,950 24983%
Miscellaneous Operating Expenses $ - $ 600 $ 600 100%
Contingency $ - $ 20,000 $ 20,000 100%
TOTAL OPERATING EXPENSES 20,501,134 $ 19,548,150 $ 686,901 $ 4% Interest on RCB loan $ 5,520 $ 6,100 $ (580) -10%
Interest Expense - Bridge Loan $ - $ 2,500 $ (2,500) -100% NET INCOME (1,286,618) $ 2,059,750 $ (3,080,285) $ -150% Item 5
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 5D
______________________________________________________________________________ TO: Board of Directors
FROM: Mitch Sears, Executive Director
Edward Burnham, Finance and Operations Director
SUBJECT: Financial Update – April 30, 2023 (unaudited) financial statements (with comparative year to date information) and Actual vs. Budget year to date ending April 30, 2023
DATE: June 15, 2023
RECOMMENDATION:
Accept the following Financial Statements (unaudited) for the period of April 1, 2023 to April 30, 2023 (with comparative year to date information) and Actual vs. Budget year to date ending April 30, 2023.
BACKGROUND & DISCUSSION:
The attached financial statements are prepared in a form to satisfy the debt covenants with River City Bank pursuant to the Line of Credit and are required to be prepared monthly.
The Financial Statements include the following reports:
• Statement of Net Position
• Statement of Revenues, Expenditures and Changes in Net Position • Statement of Cash Flows
In addition, Staff is reporting the Actual vs. Budget variances year to date ending April 30, 2023.
Financial Statements for the period April 1, 2023 – April 30, 2023 In the Statement of Net Position, VCE, as of April 30, 2023, has a total of $3,817,909 in its checking, money market and lockbox accounts, $1,100,000 restricted assets for the Debt Service Reserve account, $1,800,000 restricted assets related to supplier deposits, and $3,419,970 restricted assets for the Power Item 5
Purchases Reserve account. VCE has incurred obligations from Member agencies and owes as of April 30, 2023 a total of $6,734. VCE member obligations are incurred monthly due to staffing, accounting, and legal services.
The term loan with River City Bank includes a current portion of $356,074 and long-term portion of 181,284. On April 30, 2022, VCE’s net position is $15,295,724.
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $ 6,022,839 of revenue (net of allowance for doubtful accounts), of which $5,128,625 was billed in April, and $4,288,909 represent estimated unbilled revenue. The cost of electricity for the April revenue totaled $4,857,964.
For April, VCE’s gross margin was approximate 19% and net income totaled $900,714. The year-to-date change in net position was ($114,810).
In the Statement of Cash Flows, VCE cash flows from operations were (456,628) due to April cash receipts of revenues being less than the monthly cash operating expenses.
Actual vs. Budget Variances for the year to date ending April 30, 2023 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – ($2,577,502) and -9% – Unfavorable variance revenue model error on the timing of rate change isolated to January-2023 and retail load variance lower than forecasted. • Purchased Power – ($1,438,428) and -7% – Unfavorable variance due to gas prices driving short-term power market increases during winter months.
• Wholesale Energy Services – ($327,161) and 129% unfavorable variance related to the transition of services to TEA starting in Q123 budgeted for Q223.
• Operational Support Services (SMUD) – ($102,857) and 485% unfavorable variance related to Percentage of Income Payment Plan (PIPP) program implementation, bill presentment, and base green rate implementation. • Banking Fees – $74,950 or 100% unfavorable variance due to timing difference for renewal of letter of credit budgeted in May-23
Attachments:
7) Financial Statements (Unaudited) April 1, 2023 to April 30, 2023 (with comparative year to date information.)
8) Actual vs. Budget for the year to date ending April 30, 2023
VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF APRIL 1 TO APRIL 30, 2023
PREPARED ON JUNE 8, 2023
2 ASSETS
Current assets:
Cash in Yolo County Treasury
Cash and cash equivalents 3,817,909 $
Accounts receivable, net of allowance 10,171,782 Accrued revenue 4,288,910 Prepaid expenses 48,047 Other current assets and deposits 2,227,703 Total current assets 20,554,351 Restricted assets:
Debt service reserve fund 1,100,000
Power purchase reserve fund 3,419,970
Total restricted assets 4,519,970
Noncurrent assets:
Total noncurrent assets - TOTAL ASSETS $ 25,074,321
LIABILITIES
Current liabilities:
Accounts payable 662,161 $
Accrued payroll 92,243 Interest payable 1,599 Due to member agencies 6,734 Accrued cost of electricity 5,109,205 Other accrued liabilities 1,515,145 Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 54,153 Limited Term Loan 356,074 Total current liabilities 9,597,314 Noncurrent liabilities Term Loan- RCB 181,284
Total noncurrent liabilities 181,284 TOTAL LIABILITIES $ 9,778,598
NET POSITION
Net position:
Local Programs Reserve 224,500 Restricted 4,519,970 Unrestricted 10,551,254 TOTAL NET POSITION $15,295,724 (UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
APRIL 30, 2023
3 FOR THE PERIOD
ENDING
APRIL 30, 2023 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net 6,022,839 $ 25,200,498 $
Other revenue 353,375 624,469 $
TOTAL OPERATING REVENUES 6,376,214 $ 25,824,967
OPERATING EXPENSES
Cost of electricity 4,857,964 23,483,428 $
Contract services 465,538 1,440,782 $
Staff compensation 125,626 512,935 $
General, administration, and other 42,490 555,608 $
TOTAL OPERATING EXPENSES 5,491,618 $ 25,992,753
TOTAL OPERATING INCOME (LOSS) 884,596 $ (167,786)
NONOPERATING REVENUES (EXPENSES)
Interest income 17,717 60,095 $
Interest and related expenses (1,599) (7,119) $
TOTAL NONOPERATING REVENUES
(EXPENSES) 16,118 $ 52,976
CHANGE IN NET POSITION 900,714 $ (114,810)
Net position at beginning of period 14,395,010 57,389,101 $ Net position at end of period $ 15,295,724 $ 57,274,291
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENDITURES AND
(UNAUDITED)
CHANGES IN NET POSITION
FOR THE PERIOD OF APRIL 1, 2023 TO APRIL 30, 2023
(WITH COMPARATIVE YEAR TO DATE INFORMATION)
4 FOR THE
PERIOD ENDING
APRIL 30, 2023 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales 5,335,719 $ 25,260,577 $ Payments received from other revenue sources 353,375 624,469 Payments to purchase electricity (5,602,746) (22,983,248) Payments for contract services, general, and adminstration (85,869) (1,477,034) Payments for staff compensation (188,599) (536,977) Net cash provided (used) by operating activities 887,786 (456,628) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Principal payments of Debt (43,879) 6,390 Interest and related expenses (1,787) (7,768) Net cash provided (used) by non-capital financing activities (1,378) (45,666)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of nondepreciable assets
Acquisition of capital assets
Net cash provided (used) by capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 17,717 60,095 Net cash provided (used) by investing activities 17,717 60,095 NET CHANGE IN CASH AND CASH EQUIVALENTS (484,577) 677,996 Cash and cash equivalents at beginning of period 8,822,456 32,322,137 Cash and cash equivalents at end of period $ 33,000,133 8,337,879 $ Cash and cash equivalents included in:
Cash and cash equivalents 3,817,909 16,296,301 Restricted assets 4,519,970 16,703,832 Cash and cash equivalents at end of period $ 8,337,879 $ 33,000,133 (WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
FOR THE PERIOD OF APRIL 1 TO APRIL 30, 2023
5 FOR THE
PERIOD ENDING
APRIL 30, 2023 YEAR TO DATE
Operating Income (Loss) 884,596 $ (167,786) $
(Increase) decrease in net accounts receivable (1,744,335.88) 913,305 (Increase) decrease in accrued revenue 1,047,977 (858,513) (Increase) decrease in prepaid expenses (16,636) (48,047) Increase (decrease) in accounts payable 59,887 262,632 Increase (decrease) in accrued payroll (62,973) (24,042) Increase (decrease) in due to member agencies 650 (199,710) Increase (decrease) in accrued cost of electricity (744,782) 500,180 Increase (decrease) in other accrued liabilities 378,258 504,481 Increase (decrease) in user taxes and energy surcharges 9,239 5,287 Net cash provided (used) by operating activities $ 619,279 (456,628) $ FOR THE PERIOD OF APRIL 1 TO APRIL 30, 2023
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY
2023 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 04/30/23
Description YTD
Actuals
YTD
Budget
YTD
Variance
%
over/-under
Electric Revenue $ 25,200,498 $ 27,778,000 $ (2,577,502) -9% Interest Revenues $ 60,095 $ 14,000 $ 46,095 329%
Purchased Power $ 23,483,428 $ 22,045,000 $ 1,438,428 7% Purchased Power Base $ 23,483,428 $ 20,994,000 $ 2,489,428 12% Purchased Power Contingency 2% $ - $ 1,051,000 $ (1,051,000) -100% Labor & Benefits $ 501,170 $ 480,800 $ 20,370 4%
Salaries & Wages/Benefits $ 402,992 $ 400,000 $ 2,992 1% Contract Labor (SMUD Staff Aug) $ - $ 10,000 $ (10,000) -100% Human Resources & Payroll $ 98,178 $ 70,800 $ 27,378 39% Office Supplies & Other Expenses $ 99,567 $ 68,800 $ 30,767 45% Technology Costs $ 9,552 $ 12,400 $ (2,848) -23%
Office Supplies $ 4,423 $ 800 $ 3,623 453%
Travel $ - $ 2,000 $ (2,000) -100%
CalCCA Dues $ 43,008 $ 44,400 $ (1,392) -3%
CC Power $ 41,029 $ 8,400 $ 32,629 388%
Memberships $ 1,555 $ 800 $ 755 94%
Contractual Services $ 1,339,349 $ 987,500 $ 351,849 36% Other Contract Services $ - $ 8,800 $ (8,800) -100%
Don Dame $ 828 $ 3,600 $ (2,772) -77%
SMUD - Credit Support $ 119,740 $ 178,300 $ (58,560) -33% SMUD - Wholesale Energy Services $ 685,061 $ 298,900 $ 386,161 129% SMUD - Call Center $ 274,899 $ 276,700 $ (1,801) -1%
SMUD - Operating Services $ 124,057 $ 21,200 $ 102,857 485% Commercial Legal Support $ 18,908 $ 10,000 $ 8,908 89%
Legal General Counsel $ 5,462 $ 54,400 $ (48,938) -90%
Regulatory Counsel $ 37,621 $ 70,000 $ (32,380) -46%
Joint CCA Regulatory counsel $ 7,525 $ 11,200 $ (3,675) -33% Legislative - (Lobbyist) $ 22,000 $ 22,000 $ - 0%
Accounting Services $ 7,288 $ 9,600 $ (2,312) -24%
Financial Consultant $ - $ 14,000 $ (14,000) -100%
Audit Fees $ 35,960 $ 8,800 $ 27,160 309%
Marketing $ 101,895 $ 88,000 $ 13,895 16%
Marketing Collateral $ 101,437 $ 84,000 $ 17,437 21%
Community Engagement Activities & Sponsorships $ 4,000 458 $ (3,542) $ -89% Programs $ 311,009 $ 58,000 $ (58,000) -100%
Program Costs $ - $ 58,000 $ (58,000) -100%
Programs - EV $ 38,950 $ - $ 38,950 100%
Programs - AgFIT $ 266,978 $ 220,000 $ 46,978 21%
Programs - Heat Pump $ 5,081 $ - $ 5,081 100%
Rents & Leases $ 3,288 $ 8,800 $ (5,512) -63%
Hunt Boyer Mansion $ 3,288 $ 8,800 $ (5,512) -63%
Other A&G $ 152,602 $ 152,600 $ 2 0%
Development - New Members $ - $ 8,400 $ (8,400) -100%
Strategic Plan Implementation $ - $ 48,000 $ (48,000) -100% PG&E Data Fees $ 65,592 $ 92,000 $ (26,408) -29%
Insurance $ 11,760 $ 3,800 $ 7,960 209%
Banking Fees $ 75,250 $ 400 $ 74,850 18713%
Miscellaneous Operating Expenses $ - $ 600 $ 600 100%
Contingency $ - $ 20,000 $ 20,000 100%
TOTAL OPERATING EXPENSES 25,992,308 $ 23,910,100 $ 1,812,399 $ 8% Interest on RCB loan $ 7,119 $ 7,800 $ (681) -9%
Interest Expense - Bridge Loan $ - $ 2,500 $ (2,500) -100% NET INCOME (738,835) $ 3,871,600 $ (4,340,626) $ -112%