Item 5
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 5
______________________________________________________________________________ TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer / Treasurer Mitch Sears, Chief Executive Officer
SUBJECT: Monthly Treasurer’s Report (Informational Item) – August 31, 2025 DATE: October 14, 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 August 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 August 31, 2025.
Financial Statements for the period August 1, 2025 – August 31, 2025 In the Statement of Net Position, VCE, as of August 31, 2025, has a total of $69,875,218 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 August 31, 2025, VCE’s net position was $83,624,556.
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $9,987,924 of revenue (net of allowance for doubtful accounts), of which $9,942,526 was billed in, and $5,097,749 represents estimated unbilled revenue. The cost of electricity for the August revenue totaled $7,822,465 For August, VCE’s gross margin was approximately 23% and the net income totaled $1,962,732. The year-to-date change in net position was $20,360,844.
Item 5
In the Statement of Cash Flows, VCE cash flows from operations were $3,012,086 due to August cash receipts of revenues being more than the monthly cash operating expenses.
Bank Account Balances (as of 03/31/2025):
Operating Account: $ 37,311,151
Insured Cash Sweep Account: $ 32,921,424
Debt Service Account: $ 1,100,000
CAISO Operational Account: $ 6,191,967
Total Cash on Deposit $ 77,524,542
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. August 2025 earnings were $141,835.
VCE’s Outstanding Loan Balances (as of 08/31/2025):
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 August 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 August 31, 2025 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – ($11,164,138) and -16% – Unfavorable variance mainly driven by lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures. • Purchased Power – $7,481,017 and 17% – 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 $309,610 and 22% – Favorable Variance due to vacancy for additional budgeted positions. Recruitments are in progress and expected to be filled in Q4. • Programs $1,504,525 – Favorable Variance due to timing differences in AgFIT closeout, current year program activities, and member agency support services. • Wholesale Energy Support $55,331 – Favorable Variance due to the IRP process being delayed by CPUC.
• Financial Consultant $88,150 – Favorable variance due to the timing of the investment-grade credit rating fees expected in Q4.
Attachments:
1) Financial Statements (Unaudited) August 1, 2025 to August 31, 2025 (with comparative year to date information.)
2) Actual vs. Budget for the year to date ending August 31, 2025
VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF AUGUST 1 TO AUGUST 31, 2025
PREPARED ON OCTOBER 6, 2025
2 ASSETS
Current assets:
Cash and cash equivalents 69,875,218
Accounts receivable, net of allowance 11,431,932
Accrued revenue 5,097,749
Prepaid expenses 281,564
Inventory - Renewable Energy Credits -
Other current assets and deposits 7,998,851
Total current assets 94,685,314
Restricted assets:
Debt service reserve fund 1,100,000
Total restricted assets 1,100,000
TOTAL ASSETS $ 95,785,314
LIABILITIES
Current liabilities:
Accounts payable 277,189
Accrued payroll 135,229
Interest payable -
Due to member agencies -
Accrued cost of electricity 7,802,748
Other accrued liabilities 2,113,913
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 31,680
TOTAL LIABILITIES $ 12,160,759
NET POSITION
Net position:
Local Programs Reserve 1,085,585
Restricted 1,100,000
Unrestricted 81,438,971
TOTAL NET POSITION $ 83,624,556
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
AUGUST 31, 2025
(UNAUDITED)
3 FOR THE
PERIOD ENDING
AUGUST 31, 2025 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net $ 9,987,924 $ 58,521,791
Other revenue - $ 26,530
TOTAL OPERATING REVENUES 9,987,924 58,548,321
OPERATING EXPENSES
Cost of electricity 7,822,465 35,716,983
Contract services 165,032 1,733,625
Staff compensation 126,603 1,140,566
General, administration, and other 52,928 618,846
TOTAL OPERATING EXPENSES 8,167,028 39,210,020
TOTAL OPERATING INCOME (LOSS) 1,820,897 19,338,301
NONOPERATING REVENUES (EXPENSES)
Interest income 141,835 1,022,543
Interest and related expenses - -
Other Non Operating Revenues - -
TOTAL NONOPERATING REVENUES (EXPENSES) 141,835 1,022,543 CHANGE IN NET POSITION 1,962,732 20,360,844
Net position at beginning of period 81,661,824 63,263,712 Net position at end of period $ 83,624,556 $ 83,624,556 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENDITURES AND
AUGUST 31, 2025
4 FOR THE
PERIOD ENDING
AUGUST 31, 2025 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 10,589,281 $ 54,770,313 Payments received from other revenue sources - 26,530
Receipts for security deposits with energy suppliers - - Payments to purchase electricity (7,276,395) (32,369,580) Payments for contract services, general, and adminstration (174,198) (3,006,081) Payments for member agency services - -
Payments for staff compensation (126,603) (1,140,566)
Return of security deposits to energy suppliers - -
Other cash payments - -
Net cash provided (used) by operating activities 3,012,086 18,280,617
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 141,835 1,022,543
Net cash provided (used) by investing activities 141,835 1,022,543 NET CHANGE IN CASH AND CASH EQUIVALENTS 3,153,921 19,303,159 Cash and cash equivalents at beginning of period 65,092,913 70,311,489 Cash and cash equivalents at end of period 68,246,834 89,614,648 Cash and cash equivalents included in:
Cash and cash equivalents 69,875,218 69,875,218
Restricted assets 1,100,000 1,100,000
Cash and cash equivalents at end of period $ 70,975,218 $ 70,975,218
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
AUGUST 31, 2025
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
5 FOR THE
PERIOD ENDING
AUGUST 31, 2025 YEAR TO DATE
Operating Income (Loss) $ 1,820,897 $ 19,338,301
Depreciation expense
Increase (decrease) for uncollectible accounts 99,200 576,800 (Increase) decrease in net accounts receivable 694,039 (3,731,578) (Increase) decrease in accrued revenue (173,505) (1,648,452) (Increase) decrease in prepaid expenses (37,471) (174)
(Increase) decrease in inventory - renewable energy credits - - (Increase) decrease in other assets and deposits 19,600 (181,368) Increase (decrease) in accounts payable 24,162 (472,243) Increase (decrease) in accrued payroll (14,457) (16,245) Increase (decrease) in due to member agencies - -
Increase (decrease) in accrued cost of electricity 546,070 3,347,403 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 64,146 1,085,522 Increase (decrease) in user taxes due to other governments (30,595) (17,350) Increase (decrease) in advances from public purpose programs - - Net cash provided (used) by operating activities $ 3,012,085 $ 18,280,616 (UNAUDITED)
AUGUST 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 08/31/2025
Description YTD
Actuals
YTD
Budget
YTD
Variance
% over
/-under
Total Revenues $ 59,570,862 $ 70,735,000 $ (11,164,138) -16% Electric Revenue $ 58,521,790 $ 69,600,000 $ (11,078,210) -16% Interest Revenues $ 1,022,542 $ 655,000 $ 367,542 56%
Reimbursable Revenues $ 26,530 $ 480,000 $ (453,470) -94% Purchased Power $ 35,716,983 $ 43,198,000 $ (7,481,017) -17% Purchased Power Base $ 35,716,983 $ 41,142,000 $ (5,425,017) -13% Purchased Power Contingency 5% $ - $ 2,056,000 $ (631,317) -31% Labor & Benefits $ 1,090,390 $ 1,400,000 $ (309,610) -22% Salaries & Wages/Benefits $ 830,293 $ 1,152,000 $ (321,707) -28% Contract Labor $ 156,893 $ 128,000 $ 28,893 23%
Human Resources & Payroll $ 103,204 $ 120,000 $ (16,796) -14% Office Supplies & Other Expenses $ 208,547 $ 343,900 $ (135,353) -39% Technology Costs $ 65,583 $ 32,400 $ 33,183 102%
Office Supplies $ 4,109 $ 8,000 $ (3,891) -49%
Travel $ 9,132 $ 23,500 $ (14,368) -61%
CalCCA Dues $ 128,660 $ 128,000 $ 660 1%
CC Power $ - $ 144,000 $ (144,000) -100%
Memberships $ 1,064 $ 8,000 $ (6,936) -87%
Contractual Services $ 1,566,452 $ 1,795,200 $ (228,748) -13% Other Contract Services (e.g. IRP) $ - $ 48,000 $ (48,000) -100% Don Dame $ 4,409 $ 14,400 $ (9,992) -69%
Wholesale Energy Services (TEA) $ 520,669 $ 576,000 $ (55,331) -10% 2030 100% Renewable & Storage $ - $ 20,000 $ (20,000) -100% Customer Support Call Center $ 669,964 $ 644,000 $ 25,964 4% Operating Services $ 104,314 $ 80,000 $ 24,314 30%
Commercial Legal Support $ 17,325 $ 16,000 $ 1,325 8%
Legal General Counsel $ 15,488 $ 56,000 $ (40,513) -72% Regulatory Counsel $ 129,205 $ 136,000 $ (6,795) -5%
Joint CCA Regulatory counsel $ - $ 12,800 $ (12,800) -100% Legislative - (Lobbyist) $ 44,000 $ 46,000 $ (2,000) -4% Accounting Services $ - $ 2,000 $ (2,000) -100%
Financial Consultant $ 850 $ 89,000 $ (88,150) -99%
Audit Fees $ 60,230 $ 55,000 $ 5,230 10%
Marketing $ 121,599 $ 248,000 $ (126,401) -51%
Marketing Collateral $ 121,569 $ 216,000 $ (94,431) -44% Community Engagement Activities & Sponsorships $ 30 $ 32,000 $ (31,970) -100% Programs $ 51,475 $ 1,556,000 $ (1,504,525) -97%
Program Costs (Rebates, Incentives, etc.) $ 145,010 $ 600,000 $ (454,990) -76% Member Agency Advisory Services $ - $ 104,000 $ (104,000) -100% AG Fit $ (93,535) $ 840,000 $ (933,535) -111%
PIPP Program $ - $ 12,000 $ (12,000) -100%
Rents & Leases $ 28,803 $ 32,800 $ (3,997) -12%
Hunt Boyer Mansion $ 28,803 $ 16,800 $ 12,003 71%
Lease Improvement $ - $ 16,000 $ (16,000) -100%
Other A&G $ 347,619 $ 545,200 $ (197,581) -36%
Development - New Members $ - $ 16,800 $ (16,800) -100% Strategic Plan Implementation $ 46,929 $ 51,200 $ (4,271) -8% Strategic Plan Update & Community Focus Group $ 58,971 $ 80,000 $ (21,029) -26% PG&E Data Fees $ 198,648 $ 200,000 $ (1,352) -1%
Insurance $ 43,071 $ 64,000 $ (20,929) -33%
Banking Fees $ - $ 133,200 $ (133,200) -100%
Miscellaneous Operating Expenses $ 10,079 $ 8,000 $ 2,079 26% Contingency $ - $ 160,000 $ (160,000) -100%
0 0
TOTAL OPERATING EXPENSES $ 39,141,947 $ 49,287,100 $ (10,145,153) -21% Interest on RCB Term loan $ - $ - $ - 100%
NET INCOME $ 21,447,900 20,428,915 $