Item 5
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 5 (a)
______________________________________________________________________________ TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer / Treasurer Mitch Sears, Chief Executive Officer
SUBJECT: Monthly Treasurer’s Report (Informational Item) – May 31, 2025 DATE: September 11, 2025
RECOMMENDATION:
Accept the Treasurer’s report on VCE’s cash, investments, debt, and unaudited financial statements (with comparative year to date information) and Actual vs. Budget year to date for the month ending May 31, 2025.
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 May 31, 2025.
Financial Statements for the period May 1, 2025 – May 31, 2025 In the Statement of Net Position, VCE, as of May 31, 2025, has a total of $60,721,054 in its checking, money market and lockbox accounts, $1,100,000 restricted assets for the Debt Service Reserve account, and $1,800,000 restricted assets related to supplier deposits. On May 31, 2025, VCE’s net position was $72,841,520.
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $5,027,105 of revenue (net of allowance for doubtful accounts), of which $5,457,592 was billed in, and $3,181,836 represents estimated unbilled revenue. The cost of electricity for the May revenue totaled $814,933 For May, VCE’s gross margin was approximately (84%) and the net income totaled $3,912,889. The year-to-date change in net position was $9,645,879.
Item 5
In the Statement of Cash Flows, VCE cash flows from operations were $2,269,518 due to May cash receipts of revenues being more than the monthly cash operating expenses.
Bank Account Balances (as of 05/31/2025):
Operating Account: $ 32,254,087
Insured Cash Sweep Account: $ 29,573,370
Debt Service Account: $ 1,100,000
CAISO Operational Account: $ 5,903,760
Total Cash on Deposit $ 68,831,217
Note: VCE receives 4.45% interest earnings for the average balance on the ICS account and CAISO operational account equal to the Local Agency Investment Fund (LAIF) state investmentsrate. May 2025 earnings were $127,961.
VCE’s Outstanding Loan Balances (as of 03/31/2025):
Valley Clean Energy Alliance has available at the financial institution a line of credit totaling $11,000,000 with $7,000,000 withdrawal limit, which expires on April 15, 2026. The related debt outstanding at the close of business on May 31, 2025 was $0. VCE has issued, but undrawn, letters of credit for a total of $3,897,000 for regulatory and power purchase requirements.
Actual vs. Budget Variances for the year to date ending May 31, 2025 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – ($3,101,021) and -10% – Unfavorable variance mainly driven by lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures. • Purchased Power – $1,962,247 and 8% – Favorable mainly due renewable energy credit sales in Q1 and lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures.
• Labor & Benefits $202,629 and 29% – Favorable Variance due to vacancy for additional budgeted positions.
• Financial Consultant $83,000 and 100% – Favorable Variance due to timing difference for investment grade credit rating.
• Programs $1,073,774 – Favorable Variance due to timing differences in AgFIT closeout, current year program activities, and member agency support services. • Strategic Plan Update and Customer Focus Groups - $50,000 and 100% – Favorable Variance due to customer focus groups delayed until late 2025-2026.
Attachments:
1) Financial Statements (Unaudited) May 1, 2025 to May 31, 2025 (with comparative year to date information.)
2) Actual vs. Budget for the year to date ending May 31, 2025
VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF MAY 1 TO MAY 31, 2025
PREPARED ON JULY 24, 2025
2 ASSETS
Current assets:
Cash and cash equivalents 60,721,054
Accounts receivable, net of allowance 7,828,077
Accrued revenue 3,181,836
Prepaid expenses 90,202
Inventory - Renewable Energy Credits -
Other current assets and deposits 7,710,643
Total current assets 79,531,812
Restricted assets:
Debt service reserve fund 1,100,000
Total restricted assets 1,100,000
TOTAL ASSETS $ 80,631,812
LIABILITIES
Current liabilities:
Accounts payable 272,288
Accrued payroll 160,150
Interest payable -
Due to member agencies -
Accrued cost of electricity 3,448,929
Other accrued liabilities 2,088,521
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 20,404
TOTAL LIABILITIES $ 7,790,292
NET POSITION
Net position:
Local Programs Reserve 1,085,585
Restricted 1,100,000
Unrestricted 70,655,935
TOTAL NET POSITION $ 72,841,520
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
MAY 31, 2025
(UNAUDITED)
3 FOR THE
PERIOD ENDING
MAY 31, 2025 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net $ 5,027,105 $ 27,849,980
Other revenue 100,000 $ 26,530
TOTAL OPERATING REVENUES 5,127,105 27,876,510
OPERATING EXPENSES
Cost of electricity 814,933 16,783,752
Contract services 205,456 1,030,761
Staff compensation 161,760 731,218
General, administration, and other 160,028 364,728
TOTAL OPERATING EXPENSES 1,342,177 18,910,459
TOTAL OPERATING INCOME (LOSS) 3,784,928 8,966,051
NONOPERATING REVENUES (EXPENSES)
Interest income 127,961 611,757
Interest and related expenses - -
Other Non Operating Revenues - -
TOTAL NONOPERATING REVENUES (EXPENSES) 127,961 611,757
CHANGE IN NET POSITION 3,912,889 9,577,808
Net position at beginning of period 68,928,630 63,263,712 Net position at end of period $ 72,841,520 $ 72,841,520 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENDITURES AND
MAY 31, 2025
4 FOR THE
PERIOD ENDING
MAY 31, 2025 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 5,153,208 $ 29,316,294 Payments received from other revenue sources 100,000 26,530 Receipts for security deposits with energy suppliers - - Payments to purchase electricity (2,633,498) (17,790,169) Payments for contract services, general, and adminstration (315,713) (1,888,558) Payments for member agency services - -
Payments for staff compensation (34,480) (163,312)
Return of security deposits to energy suppliers - -
Other cash payments - -
Net cash provided (used) by operating activities 2,269,518 9,500,785
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Principal payments of Debt - -
Interest and related expenses - -
Other Non Operating Revenue - -
Net cash provided (used) by non-capital financing activities - -
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 127,961 611,757
Net cash provided (used) by investing activities 127,961 611,757 NET CHANGE IN CASH AND CASH EQUIVALENTS 2,397,479 10,112,542 Cash and cash equivalents at beginning of period 60,198,947 60,198,947 Cash and cash equivalents at end of period 62,596,426 70,311,489 Cash and cash equivalents included in:
Cash and cash equivalents 60,721,054 60,721,054
Restricted assets 1,100,000 1,100,000
Cash and cash equivalents at end of period $ 61,821,054 $ 61,821,054
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
MAY 31, 2025
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
5 FOR THE
PERIOD ENDING
MAY 31, 2025 YEAR TO DATE
Operating Income (Loss) $ 3,784,928 $ 8,966,051
Depreciation expense
Increase (decrease) for uncollectible accounts 54,400 286,100 (Increase) decrease in net accounts receivable (378,666) 937,276 (Increase) decrease in accrued revenue 356,294 7,733
(Increase) decrease in prepaid expenses 5,775 25,747
(Increase) decrease in inventory - renewable energy credits - - (Increase) decrease in other assets and deposits 19,600 (15,927) Increase (decrease) in accounts payable 30,170 (477,143) Increase (decrease) in accrued payroll 22,895 8,675
Increase (decrease) in due to member agencies - -
Increase (decrease) in accrued cost of electricity (1,818,565) (1,006,417) Increase (decrease) in other accrued liabilities - -
Increase (decrease) security deposits with energy suppliers - - Increase (decrease) in user taxes and energy surcharges - - Increase (decrease) in security deposits from energy suppliers 237,803 797,315 Increase (decrease) in user taxes due to other governments (45,118) (28,626) Increase (decrease) in advances from public purpose programs - - Net cash provided (used) by operating activities $ 2,269,517 $ 9,500,785 (UNAUDITED)
MAY 31, 2025
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES
Adjustments to reconcile operating income to net cash provided (used) by
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
(WITH YEAR TO DATE INFORMATION)
VALLEY CLEAN ENERGY
2025 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 05/31/2025
Description YTD
Actuals
YTD
Budget
YTD
Variance
% over
/-under
Total Revenues $ 28,488,265 $ 31,661,000 $ (3,172,735) -10% Electric Revenue $ 27,849,979 $ 30,951,000 $ (3,101,021) -10% Interest Revenues $ 611,756 $ 410,000 $ 201,756 49%
Reimbursable Revenues $ 26,530 $ 300,000 $ (273,470) -91% Purchased Power $ 16,783,753 $ 19,683,000 $ (2,899,247) -15% Purchased Power Base $ 16,783,753 $ 18,746,000 $ (1,962,247) -10% Purchased Power Contingency 5% $ - $ 937,000 $ (411,639) -44% Labor & Benefits $ 672,341 $ 875,000 $ (202,659) -23%
Salaries & Wages/Benefits $ 511,021 $ 720,000 $ (208,979) -29% Contract Labor $ 104,783 $ 80,000 $ 24,783 31%
Human Resources & Payroll $ 56,537 $ 75,000 $ (18,463) -25% Office Supplies & Other Expenses $ 124,611 $ 224,800 $ (100,189) -45% Technology Costs $ 42,981 $ 22,800 $ 20,181 89%
Office Supplies $ 2,186 $ 5,000 $ (2,814) -56%
Travel $ 2,221 $ 22,000 $ (19,779) -90%
CalCCA Dues $ 76,160 $ 80,000 $ (3,840) -5%
CC Power $ - $ 90,000 $ (90,000) -100%
Memberships $ 1,064 $ 5,000 $ (3,936) -79%
Contractual Services $ 1,007,436 $ 1,170,000 $ (162,564) -14% Other Contract Services (e.g. IRP) $ - $ 30,000 $ (30,000) -100% Don Dame $ 1,678 $ 9,000 $ (7,322) -81%
Wholesale Energy Services (TEA) $ 365,674 $ 360,000 $ 5,674 2% 2030 100% Renewable & Storage $ - $ 12,500 $ (12,500) -100% Customer Support Call Center $ 421,284 $ 402,500 $ 18,784 5% Operating Services $ 73,667 $ 50,000 $ 23,667 47%
Commercial Legal Support $ 15,566 $ 10,000 $ 5,566 56%
Legal General Counsel $ 6,107 $ 35,000 $ (28,893) -83%
Regulatory Counsel $ 35,730 $ 85,000 $ (49,270) -58%
Joint CCA Regulatory counsel $ - $ 8,000 $ (8,000) -100% Legislative - (Lobbyist) $ 27,500 $ 28,750 $ (1,250) -4% Accounting Services $ - $ 1,250 $ (1,250) -100%
Financial Consultant $ - $ 83,000 $ (83,000) -100%
Audit Fees $ 60,230 $ 55,000 $ 5,230 10%
Marketing $ 56,229 $ 155,000 $ (98,771) -64%
Marketing Collateral $ 56,199 $ 135,000 $ (78,801) -58% Community Engagement Activities & Sponsorships $ 30 $ 20,000 $ (19,970) -100% Programs $ 18,726 $ 1,092,500 $ (1,073,774) -98%
Program Costs (Rebates, Incentives, etc.) $ 112,944 $ 300,000 $ (187,056) -62% Member Agency Advisory Services $ - $ 65,000 $ (65,000) -100% AG Fit $ (94,218) $ 720,000 $ (814,218) -113%
PIPP Program $ - $ 7,500 $ (7,500) -100%
Rents & Leases $ 10,050 $ 20,500 $ (10,450) -51%
Hunt Boyer Mansion $ 10,050 $ 10,500 $ (450) -4%
Lease Improvement $ - $ 10,000 $ (10,000) -100%
Other A&G $ 161,854 $ 390,100 $ (228,246) -59%
Development - New Members $ - $ 10,500 $ (10,500) -100% Strategic Plan Implementation $ 26,573 $ 32,000 $ (5,427) -17% Strategic Plan Update & Community Focus Group $ - $ 50,000 $ (50,000) -100% PG&E Data Fees $ 109,535 $ 125,000 $ (15,465) -12%
Insurance $ 25,746 $ 40,000 $ (14,254) -36%
Banking Fees $ - $ 132,600 $ (132,600) -100%
Miscellaneous Operating Expenses $ 7,385 $ 5,000 $ 2,385 48% Contingency $ - $ 100,000 $ (100,000) -100%
0 0
TOTAL OPERATING EXPENSES $ 18,842,386 $ 23,715,900 $ (4,873,514) -21% Interest on RCB Term loan $ - $ - $ - 100%
NET INCOME $ 7,945,100 9,645,879 $
Item 5
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 5 (b)
______________________________________________________________________________ TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer / Treasurer Mitch Sears, Chief Executive Officer
SUBJECT: Monthly Treasurer’s Report (Informational Item) – June 30, 2025 DATE: September 11, 2025
RECOMMENDATION:
Accept the Treasurer’s report on VCE’s cash, investments, debt, and unaudited financial statements (with comparative year to date information) and Actual vs. Budget year to date for the month ending June 30, 2025.
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 June 30, 2025.
Financial Statements for the period June 1, 2025 – June 30, 2025 In the Statement of Net Position, VCE, as of June 30, 2025, has a total of $64,590,527 in its checking, money market and lockbox accounts, $1,100,000 restricted assets for the Debt Service Reserve account, and $1,800,000 restricted assets related to supplier deposits. On June 30, 2025, VCE’s net position was $78,867,969 .
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $11,097,596 of revenue (net of allowance for doubtful accounts), of which $7,746,441 was billed in, and $ 6,642,820 represents estimated unbilled revenue. The cost of electricity for the June revenue totaled $4,781,728 For June, VCE’s gross margin was approximately 57% and the net income totaled $6,026,449. The year-to-date change in net position was $15,672,328.
Item 5
In the Statement of Cash Flows, VCE cash flows from operations were $3,979,618 due to June cash receipts of revenues being more than the monthly cash operating expenses.
Bank Account Balances (as of 06/30/2025):
Operating Account: $ 32,936,086
Insured Cash Sweep Account: $ 32,681,354
Debt Service Account: $ 1,100,000
CAISO Operational Account: $ 6,057,809
Total Cash on Deposit $ 72,775,246
Note: VCE receives 4.45% interest earnings for the average balance on the ICS account and CAISO operational account equal to the Local Agency Investment Fund (LAIF) state investments rate. June 2025 earnings were $128,496.
VCE’s Outstanding Loan Balances (as of 04/30/2025):
Valley Clean Energy Alliance has available at the financial institution a line of credit totaling $11,000,000 with $7,000,000 withdrawal limit, which expires on April 15, 2026. The related debt outstanding at the close of business on June 30, 2025 was $0. VCE has issued, but undrawn, letters of credit for a total of $3,897,000 for regulatory and power purchase requirements.
Actual vs. Budget Variances for the year to date ending June 30, 2025 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – ($4,606,425) and -11% – Unfavorable variance mainly driven by lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures. • Purchased Power – $3,583,519 and 14% – Favorable mainly due to renewable energy credit sales in Q1 and lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures.
• Labor & Benefits $230,629 and 22% – Favorable Variance due to vacancy for additional budgeted positions. Recruitments are in progress and expected to be filled in Q4. • Programs $1,214,890 – Favorable Variance due to timing differences in AgFIT closeout, current year program activities, and member agency support services. • Wholesale Energy Support $63,613 – Favorable Variance due to the IRP process being delayed by CPUC.
Attachments:
3) Financial Statements (Unaudited) June 1, 2025 to June 30, 2025 (with comparative year to date information.)
4) Actual vs. Budget for the year to date ending June 30, 2025
VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF JUNE 1 TO JUNE 30, 2025
PREPARED ON AUGUST 11, 2025
2 ASSETS
Current assets:
Cash and cash equivalents 64,590,527
Accounts receivable, net of allowance 9,687,334
Accrued revenue 6,642,820
Prepaid expenses 71,775
Inventory - Renewable Energy Credits -
Other current assets and deposits 7,864,692
Total current assets 88,857,149
Restricted assets:
Debt service reserve fund 1,100,000
Total restricted assets 1,100,000
TOTAL ASSETS $ 89,957,149
LIABILITIES
Current liabilities:
Accounts payable 301,485
Accrued payroll 139,854
Interest payable -
Due to member agencies -
Accrued cost of electricity 6,706,387
Other accrued liabilities 2,095,750
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 45,704
TOTAL LIABILITIES $ 11,089,180
NET POSITION
Net position:
Local Programs Reserve 1,085,585
Restricted 1,100,000
Unrestricted 76,682,384
TOTAL NET POSITION $ 78,867,969
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
JUNE 30, 2025
(UNAUDITED)
3 FOR THE
PERIOD ENDING
JUNE 30, 2025 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net $ 11,097,596 $ 38,947,576
Other revenue - $ 26,530
TOTAL OPERATING REVENUES 11,097,596 38,974,106
OPERATING EXPENSES
Cost of electricity 4,781,728 21,565,481
Contract services 194,186 1,224,947
Staff compensation 145,520 876,738
General, administration, and other 78,208 442,936
TOTAL OPERATING EXPENSES 5,199,643 24,110,102
TOTAL OPERATING INCOME (LOSS) 5,897,953 14,864,004
NONOPERATING REVENUES (EXPENSES)
Interest income 128,496 740,253
Interest and related expenses - -
Other Non Operating Revenues - -
TOTAL NONOPERATING REVENUES (EXPENSES) 128,496 740,253
CHANGE IN NET POSITION 6,026,449 15,604,257
Net position at beginning of period 72,841,520 63,263,712 Net position at end of period $ 78,867,969 $ 78,867,969 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENDITURES AND
JUNE 30, 2025
4 FOR THE
PERIOD ENDING
JUNE 30, 2025 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 5,879,955 $ 35,196,249 Payments received from other revenue sources - 26,530
Receipts for security deposits with energy suppliers - - Payments to purchase electricity (1,524,270) (19,314,439) Payments for contract services, general, and adminstration (230,547) (2,119,103) Payments for member agency services - -
Payments for staff compensation (145,520) (876,738)
Return of security deposits to energy suppliers - -
Other cash payments - -
Net cash provided (used) by operating activities 3,979,618 12,912,499
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Principal payments of Debt - -
Interest and related expenses - -
Other Non Operating Revenue - -
Net cash provided (used) by non-capital financing activities - -
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 128,496 740,253
Net cash provided (used) by investing activities 128,496 740,253 NET CHANGE IN CASH AND CASH EQUIVALENTS 4,108,115 13,652,752 Cash and cash equivalents at beginning of period 62,596,426 70,311,489 Cash and cash equivalents at end of period 66,704,541 83,964,241 Cash and cash equivalents included in:
Cash and cash equivalents 64,590,527 64,590,527
Restricted assets 1,100,000 1,100,000
Cash and cash equivalents at end of period $ 65,690,527 $ 65,690,527 (UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
JUNE 30, 2025
(WITH YEAR TO DATE INFORMATION)
5 FOR THE
PERIOD ENDING
JUNE 30, 2025 YEAR TO DATE
Operating Income (Loss) $ 5,897,953 $ 14,864,004
Depreciation expense
Increase (decrease) for uncollectible accounts 77,300 363,400 (Increase) decrease in net accounts receivable (1,998,785) (1,889,142) (Increase) decrease in accrued revenue (3,460,984) (3,193,522) (Increase) decrease in prepaid expenses 5,775 31,522
(Increase) decrease in inventory - renewable energy credits - - (Increase) decrease in other assets and deposits 12,651 (3,275) Increase (decrease) in accounts payable 29,197 (447,946) Increase (decrease) in accrued payroll (20,296) (11,621) Increase (decrease) in due to member agencies - -
Increase (decrease) in accrued cost of electricity 3,257,459 2,251,042 Increase (decrease) in other accrued liabilities - -
Increase (decrease) security deposits with energy suppliers - - Increase (decrease) in user taxes and energy surcharges - - Increase (decrease) in security deposits from energy suppliers 154,049 951,364 Increase (decrease) in user taxes due to other governments 25,300 (3,326) Increase (decrease) in advances from public purpose programs - - Net cash provided (used) by operating activities $ 3,979,619 $ 12,912,499
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES
Adjustments to reconcile operating income to net cash provided (used) by
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
JUNE 30, 2025
VALLEY CLEAN ENERGY
2025 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 06/30/2025
Description YTD
Actuals
YTD
Budget
YTD
Variance
% over
/-under
Total Revenues $ 39,714,357 $ 44,409,000 $ (4,694,643) -11% Electric Revenue $ 38,947,575 $ 43,554,000 $ (4,606,425) -11% Interest Revenues $ 740,252 $ 495,000 $ 245,252 50%
Reimbursable Revenues $ 26,530 $ 360,000 $ (333,470) -93% Purchased Power $ 21,565,481 $ 25,149,000 $ (3,583,519) -14% Purchased Power Base $ 21,565,481 $ 23,952,000 $ (2,386,519) -10% Purchased Power Contingency 5% $ - $ 1,197,000 $ (471,041) -39% Labor & Benefits $ 819,969 $ 1,050,000 $ (230,031) -22% Salaries & Wages/Benefits $ 622,990 $ 864,000 $ (241,010) -28% Contract Labor $ 123,834 $ 96,000 $ 27,834 29%
Human Resources & Payroll $ 73,145 $ 90,000 $ (16,855) -19% Office Supplies & Other Expenses $ 154,963 $ 264,500 $ (109,537) -41% Technology Costs $ 55,076 $ 26,000 $ 29,076 112%
Office Supplies $ 2,943 $ 6,000 $ (3,057) -51%
Travel $ 2,221 $ 22,500 $ (20,279) -90%
CalCCA Dues $ 93,660 $ 96,000 $ (2,340) -2%
CC Power $ - $ 108,000 $ (108,000) -100%
Memberships $ 1,064 $ 6,000 $ (4,936) -82%
Contractual Services $ 1,166,924 $ 1,378,400 $ (211,476) -15% Other Contract Services (e.g. IRP) $ - $ 36,000 $ (36,000) -100% Don Dame $ 2,088 $ 10,800 $ (8,713) -81%
Wholesale Energy Services (TEA) $ 368,387 $ 432,000 $ (63,613) -15% 2030 100% Renewable & Storage $ - $ 15,000 $ (15,000) -100% Customer Support Call Center $ 511,155 $ 483,000 $ 28,155 6% Operating Services $ 87,051 $ 60,000 $ 27,051 45%
Commercial Legal Support $ 15,910 $ 12,000 $ 3,910 33%
Legal General Counsel $ 7,928 $ 42,000 $ (34,073) -81%
Regulatory Counsel $ 79,177 $ 102,000 $ (22,823) -22%
Joint CCA Regulatory counsel $ - $ 9,600 $ (9,600) -100% Legislative - (Lobbyist) $ 33,000 $ 34,500 $ (1,500) -4% Accounting Services $ - $ 1,500 $ (1,500) -100%
Financial Consultant $ 2,000 $ 85,000 $ (83,000) -98%
Audit Fees $ 60,230 $ 55,000 $ 5,230 10%
Marketing $ 78,860 $ 186,000 $ (107,140) -58%
Marketing Collateral $ 78,830 $ 162,000 $ (83,170) -51% Community Engagement Activities & Sponsorships $ 30 $ 24,000 $ (23,970) -100% Programs $ 32,110 $ 1,247,000 $ (1,214,890) -97%
Program Costs (Rebates, Incentives, etc.) $ 125,678 $ 400,000 $ (274,322) -69% Member Agency Advisory Services $ - $ 78,000 $ (78,000) -100% AG Fit $ (93,568) $ 760,000 $ (853,568) -112%
PIPP Program $ - $ 9,000 $ (9,000) -100%
Rents & Leases $ 12,150 $ 24,600 $ (12,450) -51%
Hunt Boyer Mansion $ 12,150 $ 12,600 $ (450) -4%
Lease Improvement $ - $ 12,000 $ (12,000) -100%
Other A&G $ 203,856 $ 441,800 $ (237,944) -54%
Development - New Members $ - $ 12,600 $ (12,600) -100% Strategic Plan Implementation $ 40,641 $ 38,400 $ 2,241 6% Strategic Plan Update & Community Focus Group $ - $ 60,000 $ (60,000) -100% PG&E Data Fees $ 131,694 $ 150,000 $ (18,306) -12%
Insurance $ 31,521 $ 48,000 $ (16,479) -34%
Banking Fees $ - $ 132,800 $ (132,800) -100%
Miscellaneous Operating Expenses $ 7,716 $ 6,000 $ 1,716 29% Contingency $ - $ 120,000 $ (120,000) -100%
0 0
TOTAL OPERATING EXPENSES $ 24,042,029 $ 29,867,300 $ (5,825,271) -20% Interest on RCB Term loan $ - $ - $ - 100%
NET INCOME $ 14,541,700 15,672,328 $
Item 5
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 5 (c)
______________________________________________________________________________ TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer / Treasurer Mitch Sears, Chief Executive Officer
SUBJECT: Monthly Treasurer’s Report (Informational Item) – July 31, 2025 DATE: September 11, 2025
RECOMMENDATION:
Accept the Treasurer’s report on VCE’s cash, investments, debt, and unaudited financial statements (with comparative year to date information) and Actual vs. Budget year to date for the month ending July 31, 2025.
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 July 31, 2025.
Financial Statements for the period July 1, 2025 – July 31, 2025 In the Statement of Net Position, VCE, as of July 31, 2025, has a total of $66,927,853 in its checking, money market and lockbox accounts, $1,100,000 restricted assets for the Debt Service Reserve account, and $1,800,000 restricted assets related to supplier deposits. On July 31, 2025, VCE’s net position was $81,661,824.
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $9,586,291 of revenue (net of allowance for doubtful accounts), of which $11,445,082 was billed in, and $4,924,244 represents estimated unbilled revenue. The cost of electricity for the July revenue totaled $6,329,037 For July, VCE’s gross margin was approximately (35%) and the net loss totaled $2,793,855. The year-to-date change in net position was $18,466,183.
Item 5
In the Statement of Cash Flows, VCE cash flows from operations were $2,356,032 due to July cash receipts of revenues being more than the monthly cash operating expenses.
Bank Account Balances (as of 03/31/2025):
Operating Account: $ 34,956,738
Insured Cash Sweep Account: $ 32,801,263
Debt Service Account: $ 1,100,000
CAISO Operational Account: $ 6,127,821
Total Cash on Deposit $ 74,985,822
Note: VCE receives 4.45% interest earnings for the average balance on the ICS account and CAISO operational account equal to the Local Agency Investment Fund (LAIF) state investments rate. July 2025 earnings were $140,455.
VCE’s Outstanding Loan Balances (as of 03/31/2025):
Valley Clean Energy Alliance has available at the financial institution a line of credit totaling $11,000,000 with $7,000,000 withdrawal limit, which expires on April 15, 2026. The related debt outstanding at the close of business on July 31, 2025 was $0. VCE has issued, but undrawn, letters of credit for a total of $3,897,000 for regulatory and power purchase requirements.
Actual vs. Budget Variances for the year to date ending July 31, 2025 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – ($8,634,897) and -15% – Unfavorable variance mainly driven by lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures. • Purchased Power – $6,268,482 and 18% – Favorable mainly due to renewable energy credit sales in Q1 and lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures.
• Labor & Benefits $267,374 and 22% – Favorable Variance due to vacancy for additional budgeted positions. Recruitments are in progress and expected to be filled in Q4. • Programs $1,076,774 – Favorable Variance due to timing differences in AgFIT closeout, current year program activities, and member agency support services. • Wholesale Energy Support $56,518 – Favorable Variance due to the IRP process being delayed by CPUC.
Attachments:
5) Financial Statements (Unaudited) July 1, 2025 to July 31, 2025 (with comparative year to date information.)
6) Actual vs. Budget for the year to date ending July 31, 2025
VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF JULY 1 TO JULY 31, 2025
PREPARED ON AUGUST 31, 2025
2 ASSETS
Current assets:
Cash and cash equivalents 66,927,853
Accounts receivable, net of allowance 12,138,189
Accrued revenue 4,924,245
Prepaid expenses 263,693
Inventory - Renewable Energy Credits -
Other current assets and deposits 7,934,705
Total current assets 92,188,684
Restricted assets:
Debt service reserve fund 1,100,000
Total restricted assets 1,100,000
TOTAL ASSETS $ 93,288,684
LIABILITIES
Current liabilities:
Accounts payable 253,027
Accrued payroll 149,686
Interest payable -
Due to member agencies -
Accrued cost of electricity 7,256,679
Other accrued liabilities 2,105,194
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 62,275
TOTAL LIABILITIES $ 11,626,860
NET POSITION
Net position:
Local Programs Reserve 1,085,585
Restricted 1,100,000
Unrestricted 79,476,239
TOTAL NET POSITION $ 81,661,824
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
JULY 31, 2025
(UNAUDITED)
3 FOR THE
PERIOD ENDING
JULY 31, 2025 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net $ 9,586,291 $ 48,533,867
Other revenue - $ 26,530
TOTAL OPERATING REVENUES 9,586,291 48,560,397
OPERATING EXPENSES
Cost of electricity 6,329,037 27,894,518
Contract services 343,646 1,568,593
Staff compensation 137,225 1,013,963
General, administration, and other 122,983 565,919
TOTAL OPERATING EXPENSES 6,932,891 31,042,992
TOTAL OPERATING INCOME (LOSS) 2,653,400 17,517,405
NONOPERATING REVENUES (EXPENSES)
Interest income 140,455 880,708
Interest and related expenses - -
Other Non Operating Revenues - -
TOTAL NONOPERATING REVENUES (EXPENSES) 140,455 880,708
CHANGE IN NET POSITION 2,793,855 18,398,113
Net position at beginning of period 78,867,969 63,263,712 Net position at end of period $ 81,661,824 $ 81,661,824 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENDITURES AND
JULY 31, 2025
4 FOR THE
PERIOD ENDING
JULY 31, 2025 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 8,984,783 $ 44,181,032 Payments received from other revenue sources - 26,530
Receipts for security deposits with energy suppliers - - Payments to purchase electricity (5,778,746) (25,093,185) Payments for contract services, general, and adminstration (712,780) (2,831,883) Payments for member agency services - -
Payments for staff compensation (137,225) (1,013,963)
Return of security deposits to energy suppliers - -
Other cash payments - -
Net cash provided (used) by operating activities 2,356,032 15,268,531
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Principal payments of Debt - -
Interest and related expenses - -
Other Non Operating Revenue - -
Net cash provided (used) by non-capital financing activities - -
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 140,455 880,708
Net cash provided (used) by investing activities 140,455 880,708 NET CHANGE IN CASH AND CASH EQUIVALENTS 2,496,487 16,149,239 Cash and cash equivalents at beginning of period 62,596,426 70,311,489 Cash and cash equivalents at end of period 65,092,913 86,460,728 Cash and cash equivalents included in:
Cash and cash equivalents 66,927,853 66,927,853
Restricted assets 1,100,000 1,100,000
Cash and cash equivalents at end of period $ 68,027,853 $ 68,027,853
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
JULY 31, 2025
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
5 FOR THE
PERIOD ENDING
JULY 31, 2025 YEAR TO DATE
Operating Income (Loss) $ 2,653,400 $ 17,517,405
Depreciation expense
Increase (decrease) for uncollectible accounts 114,200 477,600 (Increase) decrease in net accounts receivable (2,536,475) (4,425,617) (Increase) decrease in accrued revenue 1,718,575 (1,474,947) (Increase) decrease in prepaid expenses 5,775 37,297
(Increase) decrease in inventory - renewable energy credits - - (Increase) decrease in other assets and deposits (197,693) (200,968) Increase (decrease) in accounts payable (48,458) (496,405) Increase (decrease) in accrued payroll 9,833 (1,788)
Increase (decrease) in due to member agencies - -
Increase (decrease) in accrued cost of electricity 550,291 2,801,333 Increase (decrease) in other accrued liabilities - -
Increase (decrease) security deposits with energy suppliers - - Increase (decrease) in user taxes and energy surcharges - - Increase (decrease) in security deposits from energy suppliers 70,012 1,021,376 Increase (decrease) in user taxes due to other governments 16,571 13,245 Increase (decrease) in advances from public purpose programs - - Net cash provided (used) by operating activities $ 2,356,032 $ 15,268,531 (UNAUDITED)
JULY 31, 2025
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES
Adjustments to reconcile operating income to net cash provided (used) by
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
(WITH YEAR TO DATE INFORMATION)
VALLEY CLEAN ENERGY
2025 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 07/31/2025
Description YTD
Actuals
YTD
Budget
YTD
Variance
% over
/-under
Total Revenues $ 49,441,103 $ 58,076,000 $ (8,634,897) -15% Electric Revenue $ 48,533,866 $ 57,081,000 $ (8,547,134) -15% Interest Revenues $ 880,707 $ 575,000 $ 305,707 53%
Reimbursable Revenues $ 26,530 $ 420,000 $ (393,470) -94% Purchased Power $ 27,894,518 $ 34,163,000 $ (6,268,482) -18% Purchased Power Base $ 27,894,518 $ 32,537,000 $ (4,642,482) -14% Purchased Power Contingency 5% $ - $ 1,626,000 $ (544,818) -34% Labor & Benefits $ 960,626 $ 1,225,000 $ (264,374) -22% Salaries & Wages/Benefits $ 727,556 $ 1,008,000 $ (280,444) -28% Contract Labor $ 141,993 $ 112,000 $ 29,993 27%
Human Resources & Payroll $ 91,077 $ 105,000 $ (13,923) -13% Office Supplies & Other Expenses $ 187,863 $ 304,200 $ (116,337) -38% Technology Costs $ 62,250 $ 29,200 $ 33,050 113%
Office Supplies $ 3,593 $ 7,000 $ (3,407) -49%
Travel $ 9,797 $ 23,000 $ (13,203) -57%
CalCCA Dues $ 111,160 $ 112,000 $ (840) -1%
CC Power $ - $ 126,000 $ (126,000) -100%
Memberships $ 1,064 $ 7,000 $ (5,936) -85%
Contractual Services $ 1,466,602 $ 1,586,800 $ (120,198) -8% Other Contract Services (e.g. IRP) $ - $ 42,000 $ (42,000) -100% Don Dame $ 1,941 $ 12,600 $ (10,660) -85%
Wholesale Energy Services (TEA) $ 447,482 $ 504,000 $ (56,518) -11% 2030 100% Renewable & Storage $ - $ 17,500 $ (17,500) -100% Customer Support Call Center $ 670,375 $ 563,500 $ 106,875 19% Operating Services $ 109,927 $ 70,000 $ 39,927 57%
Commercial Legal Support $ 17,162 $ 14,000 $ 3,162 23%
Legal General Counsel $ 15,316 $ 49,000 $ (33,685) -69% Regulatory Counsel $ 103,671 $ 119,000 $ (15,329) -13%
Joint CCA Regulatory counsel $ - $ 11,200 $ (11,200) -100% Legislative - (Lobbyist) $ 38,500 $ 40,250 $ (1,750) -4% Accounting Services $ - $ 1,750 $ (1,750) -100%
Financial Consultant $ 2,000 $ 87,000 $ (85,000) -98%
Audit Fees $ 60,230 $ 55,000 $ 5,230 10%
Marketing $ 116,538 $ 217,000 $ (100,462) -46%
Marketing Collateral $ 116,508 $ 189,000 $ (72,492) -38% Community Engagement Activities & Sponsorships $ 30 $ 28,000 $ (27,970) -100% Programs $ 51,984 $ 1,401,500 $ (1,349,516) -96%
Program Costs (Rebates, Incentives, etc.) $ 145,519 $ 500,000 $ (354,481) -71% Member Agency Advisory Services $ - $ 91,000 $ (91,000) -100% AG Fit $ (93,535) $ 800,000 $ (893,535) -112%
PIPP Program $ - $ 10,500 $ (10,500) -100%
Rents & Leases $ 26,703 $ 28,700 $ (1,997) -7%
Hunt Boyer Mansion $ 26,703 $ 14,700 $ 12,003 82%
Lease Improvement $ - $ 14,000 $ (14,000) -100%
Other A&G $ 260,019 $ 493,500 $ (233,481) -47%
Development - New Members $ - $ 14,700 $ (14,700) -100% Strategic Plan Implementation $ 46,929 $ 44,800 $ 2,129 5% Strategic Plan Update & Community Focus Group $ - $ 70,000 $ (70,000) -100% PG&E Data Fees $ 175,794 $ 175,000 $ 794 0%
Insurance $ 37,296 $ 56,000 $ (18,704) -33%
Banking Fees $ - $ 133,000 $ (133,000) -100%
Miscellaneous Operating Expenses $ 10,067 $ 7,000 $ 3,067 44% Contingency $ - $ 140,000 $ (140,000) -100%
0 0
TOTAL OPERATING EXPENSES $ 30,974,920 $ 39,566,700 $ (8,591,780) -22% Interest on RCB Term loan $ - $ - $ - 100%
NET INCOME $ 18,509,300 18,466,183 $