Item 7
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 7 (a)
______________________________________________________________________________ TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer / Treasurer Mitch Sears, Chief Executive Officer
SUBJECT: Monthly Treasurer’s Report (Informational Item) – October 31, 2025 DATE: February 12, 2026
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 October 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 October 31, 2025.
Financial Statements for the period October 1, 2025 – October 31, 2025 In the Statement of Net Position, VCE, as of October 31, 2025, has a total of $73,345,000 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 October 31, 2025, VCE’s net position was $89,579,190.
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $6,830,862 of revenue (net of allowance for doubtful accounts), of which $7,640,855 was billed in, and $4,007,527 represents estimated unbilled revenue. The cost of electricity for the October revenue totaled $4,627,299 For October, VCE’s gross margin was approximately 34% and the net income totaled $1,854,294. The year-to-date change in net position was $26,318,186.
Item 7
In the Statement of Cash Flows, VCE cash flows from operations were $2,643,858 due to October cash receipts of revenues being more than the monthly cash operating expenses.
Bank Account Balances (as of 10/31/2025):
Operating Account $39,832,783
Insured Cash Sweep Account $35,162,773
Debt Service Account $1,100,000
CAISO Operational Account $6,377,486
Total Cash on Deposit $82,473,042
Note: VCE receives 6.19% 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. October 2025 earnings were $140,891.
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 October 31, 2025 was $0. VCE has issued, but undrawn, letters of credit for a total of $266,989 for regulatory.
Actual vs. Budget Variances for the year to date ending October 31, 2025 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – ($11,056,979) and -13% – Unfavorable variance mainly driven by lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures. • Purchased Power – $8,439,957 and 15% – 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 $424,520 and 24% – Favorable Variance due to vacancy for additional budgeted positions. Recruitments are in progress and expected to be filled in Q4. • Legal Services $121,600 – Favorable Variance due to AgFIT to PG&E administered HFP pilot, current year shared regulatory proceedings by CalCCA.
• Programs $1,799,172 – Favorable Variance due to timing differences in AgFIT closeout, current year program activities, and member agency support services. • Marketing & Engagement $146,250 – Favorable Variance due to lower forecasted activities for support of programs and events.
• Other Contract Services (e.g. IRP) 60,000 – Favorable Variance due to the IRP process being delayed by CPUC.
Attachments:
1) Financial Statements (Unaudited) October 1, 2025 to October 31, 2025 (with comparative year to date information.)
2) Actual vs. Budget for the year to date ending October 31, 2025
VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF OCTOBER 1 TO OCTOBER 31,
2025 PREPARED ON DECEMBER 17, 2025
2 ASSETS
Current assets:
Cash and cash equivalents 74,345,000
Accounts receivable, net of allowance 9,979,470
Accrued revenue 4,007,527
Prepaid expenses 426,222
Inventory - Renewable Energy Credits -
Other current assets and deposits 8,184,369
Total current assets 96,942,588
Restricted assets:
Debt service reserve fund 1,100,000
Total restricted assets 1,100,000
TOTAL ASSETS $ 98,042,588
LIABILITIES
Current liabilities:
Accounts payable 243,673
Accrued payroll 101,638
Interest payable -
Due to member agencies -
Accrued cost of electricity 4,156,525
Other accrued liabilities 2,092,100
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 69,462
TOTAL LIABILITIES $ 8,463,398
NET POSITION
Net position:
Local Programs Reserve 1,085,585
Restricted 1,100,000
Unrestricted 87,393,605
TOTAL NET POSITION $ 89,579,190
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
OCTOBER 31, 2025
(UNAUDITED)
3 FOR THE
PERIOD ENDING
OCTOBER 31, 2025 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net $ 6,830,862 $ 76,700,484
Other revenue - $ 26,530
TOTAL OPERATING REVENUES 6,830,862 76,727,014
OPERATING EXPENSES
Cost of electricity 4,627,299 47,387,042
Contract services 236,745 2,177,231
Staff compensation 117,291 1,373,585
General, administration, and other 136,124 772,701
TOTAL OPERATING EXPENSES 5,117,459 51,710,560
TOTAL OPERATING INCOME (LOSS) 1,713,403 25,016,455
NONOPERATING REVENUES (EXPENSES)
Interest income 140,891 1,301,731
Interest and related expenses - -
Other Non Operating Revenues - -
TOTAL NONOPERATING REVENUES (EXPENSES) 140,891 1,301,731 CHANGE IN NET POSITION 1,854,294 26,318,186
Net position at beginning of period 87,724,896 63,263,712 Net position at end of period $ 89,579,190 $ 89,581,897 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENDITURES AND
OCTOBER 31, 2025
4 FOR THE
PERIOD ENDING
OCTOBER 31, 2025 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 10,667,961 $ 76,470,329 Payments received from other revenue sources - 26,530
Receipts for security deposits with energy suppliers - - Payments to purchase electricity (7,674,172) (47,685,863) Payments for contract services, general, and adminstration (373,532) (3,696,108) Payments for member agency services - -
Payments for staff compensation (117,291) (1,373,585)
Return of security deposits to energy suppliers - -
Other cash payments - -
Net cash provided (used) by operating activities 2,502,966 23,741,303
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 140,891 1,301,731
Net cash provided (used) by investing activities 140,891 1,301,731 NET CHANGE IN CASH AND CASH EQUIVALENTS 2,643,858 25,043,035 Cash and cash equivalents at beginning of period 71,340,142 90,006,110 Cash and cash equivalents at end of period 73,984,000 115,049,145 Cash and cash equivalents included in:
Cash and cash equivalents 74,345,000 74,345,000
Restricted assets 1,100,000 1,100,000
Cash and cash equivalents at end of period $ 75,445,000 $ 75,445,000
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
OCTOBER 31, 2025
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
5 FOR THE
PERIOD ENDING
OCTOBER 31, 2025 YEAR TO DATE
Operating Income (Loss) $ 1,713,403 $ 25,016,455
Depreciation expense
Increase (decrease) for uncollectible accounts 79,600 763,600 (Increase) decrease in net accounts receivable 2,717,171 (1,591,379) (Increase) decrease in accrued revenue 1,036,540 (558,229) (Increase) decrease in prepaid expenses (36,300) (85,781) (Increase) decrease in inventory - renewable energy credits - - (Increase) decrease in other assets and deposits 11,434 (240,419) Increase (decrease) in accounts payable (12,096) (505,758) Increase (decrease) in accrued payroll (50,376) (49,836) Increase (decrease) in due to member agencies - -
Increase (decrease) in accrued cost of electricity (3,046,874) (298,821) 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 74,364 1,271,040 Increase (decrease) in user taxes due to other governments 16,101 20,432 Increase (decrease) in advances from public purpose programs - - Net cash provided (used) by operating activities $ 2,502,967 $ 23,741,303 (UNAUDITED)
OCTOBER 31, 2025
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES
Adjustments to reconcile operating income to net cash provided
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 10/31/2025
Description YTD
Actuals
YTD
Budget
YTD
Variance
% over
/-under
Total Revenues $ 77,637,281 $ 88,786,000 $ (11,148,719) -13% Electric Revenue $ 76,309,021 $ 87,366,000 $ (11,056,979) -13% Interest Revenues $ 1,301,730 $ 820,000 $ 481,730 59%
Reimbursable Revenues $ 26,530 $ 600,000 $ (573,470) -96% Purchased Power $ 47,387,043 $ 55,827,000 $ (8,439,957) -15% Purchased Power Base $ 47,387,043 $ 53,170,000 $ (5,782,957) -11% Purchased Power Contingency 5% $ - $ 2,657,000 $ (841,378) -32% Labor & Benefits $ 1,325,480 $ 1,750,000 $ (424,520) -24% Salaries & Wages/Benefits $ 1,023,142 $ 1,440,000 $ (416,858) -29% Contract Labor $ 183,917 $ 160,000 $ 23,917 15%
Human Resources & Payroll $ 118,421 $ 150,000 $ (31,579) -21% Office Supplies & Other Expenses $ 260,994 $ 430,100 $ (169,106) -39% Technology Costs $ 77,605 $ 45,600 $ 32,005 70%
Office Supplies $ 5,409 $ 10,000 $ (4,591) -46%
Travel $ 13,256 $ 24,500 $ (11,244) -46%
CalCCA Dues $ 163,660 $ 160,000 $ 3,660 2%
CC Power $ - $ 180,000 $ (180,000) -100%
Memberships $ 1,064 $ 10,000 $ (8,936) -89%
Contractual Services $ 1,953,713 $ 2,212,000 $ (258,287) -12% Other Contract Services (e.g. IRP) $ - $ 60,000 $ (60,000) -100% Don Dame $ 2,876 $ 18,000 $ (15,125) -84%
Wholesale Energy Services (TEA) $ 672,408 $ 720,000 $ (47,592) -7% 2030 100% Renewable & Storage $ - $ 25,000 $ (25,000) -100% Customer Support Call Center $ 830,288 $ 805,000 $ 25,288 3% Operating Services $ 115,560 $ 100,000 $ 15,560 16%
Commercial Legal Support $ 34,882 $ 20,000 $ 14,882 74% Legal General Counsel $ 17,763 $ 70,000 $ (52,238) -75% Regulatory Counsel $ 116,638 $ 170,000 $ (53,362) -31%
Joint CCA Regulatory counsel $ - $ 16,000 $ (16,000) -100% Legislative - (Lobbyist) $ 55,000 $ 57,500 $ (2,500) -4% Accounting Services $ - $ 2,500 $ (2,500) -100%
Financial Consultant $ 48,070 $ 93,000 $ (44,930) -48%
Audit Fees $ 60,230 $ 55,000 $ 5,230 10%
Marketing $ 163,750 $ 310,000 $ (146,250) -47%
Marketing Collateral $ 163,720 $ 270,000 $ (106,280) -39% Community Engagement Activities & Sponsorships $ 30 $ 40,000 $ (39,970) -100% Programs $ 65,828 $ 1,865,000 $ (1,799,172) -96%
Program Costs (Rebates, Incentives, etc.) $ 159,363 $ 800,000 $ (640,637) -80% Member Agency Advisory Services $ - $ 130,000 $ (130,000) -100% AG Fit $ (93,535) $ 920,000 $ (1,013,535) -110%
PIPP Program $ - $ 15,000 $ (15,000) -100%
Rents & Leases $ 33,003 $ 41,000 $ (7,997) -20%
Hunt Boyer Mansion $ 33,003 $ 21,000 $ 12,003 57%
Lease Improvement $ - $ 20,000 $ (20,000) -100%
Other A&G $ 443,246 $ 648,600 $ (205,354) -32%
Development - New Members $ - $ 21,000 $ (21,000) -100% Strategic Plan Implementation $ 108,345 $ 64,000 $ 44,345 69% Strategic Plan Update & Community Focus Group $ 58,971 $ 100,000 $ (41,029) -41% PG&E Data Fees $ 221,309 $ 250,000 $ (28,691) -11%
Insurance $ 54,621 $ 80,000 $ (25,379) -32%
Banking Fees $ - $ 133,600 $ (133,600) -100%
Miscellaneous Operating Expenses $ 12,136 $ 10,000 $ 2,136 21% Contingency $ - $ 200,000 $ (200,000) -100%
0 0
TOTAL OPERATING EXPENSES $ 51,645,194 $ 63,293,700 $ (11,648,506) -18% Interest on RCB Term loan $ - $ - $ - 100%
NET INCOME $ 25,992,087 $ 25,492,300
Item 7
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 7 (b)
______________________________________________________________________________ TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer / Treasurer Mitch Sears, Chief Executive Officer
SUBJECT: Monthly Treasurer’s Report (Informational Item) – November 30, 2025 DATE: February 12, 2026
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 November 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 November 30, 2025.
Financial Statements for the period November 1, 2025 – November 30, 2025 In the Statement of Net Position, VCE, as of November 30, 2025, has a total of $76,653,542 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 November 30, 2025, VCE’s net position was $88,737,398.
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $4,386,879 of revenue (net of allowance for doubtful accounts), of which $5,004,788 was billed in, and $3,456,396 represents estimated unbilled revenue. The cost of electricity for the November revenue totaled $4,902,296 For November, VCE’s gross margin was approximately -8% and the net losstotaled $841,792.
The year-to-date change in net position was $25,558,750.
Item 7
In the Statement of Cash Flows, VCE cash flows from operations were $4,498,782 due to November cash receipts of revenues being more than the monthly cash operating expenses.
Bank Account Balances (as of 11/30/2025):
Operating Account $42,040,968
Insured Cash Sweep Account $35,284,677
Debt Service Account $1,100,000
CAISO Operational Account $6,534,935
Total Cash on Deposit $84,960,580
Note: VCE receives 6.05% 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.
November 2025 earnings were $143,496.
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 October 31, 2025 was $0. VCE has issued, but undrawn, letters of credit for a total of $266,989 for regulatory.
Actual vs. Budget Variances for the year to date ending November 30, 2025 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – ($12,888,100) and -14% – Unfavorable variance mainly driven by lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures. • Purchased Power – $7,206,661 and 12% – 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 $465,533 and 24% – Favorable Variance due to vacancy for additional budgeted positions. Recruitments are in progress and expected to be filled in Q4. • Programs $1,862,053 – Favorable Variance due to timing differences in AgFIT closeout, current year program activities, and member agency support services. • Marketing & Engagement $164,825 – Favorable Variance due to lower forecasted activities for support of programs and events.
• Other Contract Services (e.g. IRP) 66,000 – Favorable Variance due to the IRP process being delayed by CPUC.
Attachments:
3) Financial Statements (Unaudited) November 1, 2025 to November 30, 2025 (with comparative year to date information.)
4) Actual vs. Budget for the year to date ending November 30, 2025
VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF NOVEMBER 1 TO NOVEMBER 30, 2025
PREPARED ON FEBRUARY 1, 2026
2 ASSETS
Current assets:
Cash and cash equivalents 76,653,542
Accounts receivable, net of allowance 8,467,825
Accrued revenue 3,456,397
Prepaid expenses 400,847
Inventory - Renewable Energy Credits -
Other current assets and deposits 8,341,819
Total current assets 97,320,429
Restricted assets:
Debt service reserve fund 1,100,000
Total restricted assets 1,100,000
TOTAL ASSETS $ 98,420,429
LIABILITIES
Current liabilities:
Accounts payable 244,041
Accrued payroll 109,188
Interest payable -
Due to member agencies -
Accrued cost of electricity 5,421,782
Other accrued liabilities 2,095,884
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 12,136
TOTAL LIABILITIES $ 9,683,031
NET POSITION
Net position:
Local Programs Reserve 1,085,585
Restricted 1,100,000
Unrestricted 86,551,813
TOTAL NET POSITION $ 88,737,398
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
NOVEMBER 30, 2025
(UNAUDITED)
3 FOR THE
PERIOD ENDING
NOVEMBER 30, 2025 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net $ 4,386,879 $ 81,087,363
Other revenue - $ 26,530
TOTAL OPERATING REVENUES 4,386,879 81,113,893
OPERATING EXPENSES
Cost of electricity 4,902,296 52,289,338
Contract services 202,675 2,379,906
Staff compensation 131,716 1,505,301
General, administration, and other 135,480 825,825
TOTAL OPERATING EXPENSES 5,372,167 57,000,371
TOTAL OPERATING INCOME (LOSS) (985,288) 24,113,523
NONOPERATING REVENUES (EXPENSES)
Interest income 143,496 1,445,228
Interest and related expenses - -
Other Non Operating Revenues - -
TOTAL NONOPERATING REVENUES (EXPENSES) 143,496 1,445,228 CHANGE IN NET POSITION (841,792) 25,558,750
Net position at beginning of period 89,579,190 63,263,712 Net position at end of period $ 88,737,398 $ 88,822,462 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENDITURES AND
NOVEMBER 30, 2025
4 FOR THE
PERIOD ENDING
NOVEMBER 30, 2025 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 6,442,229 $ 82,912,558 Payments received from other revenue sources - 26,530
Receipts for security deposits with energy suppliers - - Payments to purchase electricity (3,637,040) (51,322,902) Payments for contract services, general, and adminstration (318,187) (3,931,938) Payments for member agency services - -
Payments for staff compensation (131,716) (1,505,301)
Return of security deposits to energy suppliers - -
Other cash payments - -
Net cash provided (used) by operating activities 2,355,286 26,178,946
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 143,496 1,445,228
Net cash provided (used) by investing activities 143,496 1,445,228 NET CHANGE IN CASH AND CASH EQUIVALENTS 2,498,782 27,624,174 Cash and cash equivalents at beginning of period 73,984,000 73,984,000 Cash and cash equivalents at end of period 76,482,782 101,608,174 Cash and cash equivalents included in:
Cash and cash equivalents 76,653,542 76,653,542
Restricted assets 1,100,000 1,100,000
Cash and cash equivalents at end of period $ 77,753,542 $ 77,753,542 (UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
NOVEMBER 30, 2025
(WITH YEAR TO DATE INFORMATION)
5 FOR THE
PERIOD ENDING
NOVEMBER 30, 2025 YEAR TO DATE
Operating Income (Loss) $ (985,288) $ 24,113,523
Depreciation expense
Increase (decrease) for uncollectible accounts 49,900 813,500 (Increase) decrease in net accounts receivable 1,340,869 (250,508) (Increase) decrease in accrued revenue 551,130 (7,099)
(Increase) decrease in prepaid expenses 5,775 (80,006)
(Increase) decrease in inventory - renewable energy credits - - (Increase) decrease in other assets and deposits 19,600 (220,819) Increase (decrease) in accounts payable 368 (505,390)
Increase (decrease) in accrued payroll 7,550 (42,286)
Increase (decrease) in due to member agencies - -
Increase (decrease) in accrued cost of electricity 1,265,257 966,436 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 157,450 1,428,490 Increase (decrease) in user taxes due to other governments (57,325) (36,893) Increase (decrease) in advances from public purpose programs - - Net cash provided (used) by operating activities $ 2,355,286 $ 26,178,946
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Adjustments to reconcile operating income to net cash provided
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
NOVEMBER 30, 2025
VALLEY CLEAN ENERGY
2025 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 11/30/2025
Description YTD
Actuals
YTD
Budget
YTD
Variance
% over
/-under
Total Revenues $ 82,167,656 $ 95,149,000 $ (12,981,344) -14% Electric Revenue $ 80,695,900 $ 93,584,000 $ (12,888,100) -14% Interest Revenues $ 1,445,226 $ 905,000 $ 540,226 60%
Reimbursable Revenues $ 26,530 $ 660,000 $ (633,470) -96% Purchased Power $ 52,289,339 $ 59,496,000 $ (7,206,661) -12% Purchased Power Base $ 52,289,339 $ 56,664,000 $ (4,374,661) -8% Purchased Power Contingency 5% $ - $ 2,832,000 $ (918,411) -32% Labor & Benefits $ 1,459,467 $ 1,925,000 $ (465,533) -24% Salaries & Wages/Benefits $ 1,131,122 $ 1,584,000 $ (452,878) -29% Contract Labor $ 198,723 $ 176,000 $ 22,723 13%
Human Resources & Payroll $ 129,622 $ 165,000 $ (35,378) -21% Office Supplies & Other Expenses $ 271,811 $ 469,800 $ (197,989) -42% Technology Costs $ 85,254 $ 48,800 $ 36,454 75%
Office Supplies $ 6,077 $ 11,000 $ (4,923) -45%
Travel $ 13,256 $ 25,000 $ (11,744) -47%
CalCCA Dues $ 166,160 $ 176,000 $ (9,840) -6%
CC Power $ - $ 198,000 $ (198,000) -100%
Memberships $ 1,064 $ 11,000 $ (9,936) -90%
Contractual Services $ 2,141,721 $ 2,435,400 $ (293,679) -12% Other Contract Services (e.g. IRP) $ - $ 66,000 $ (66,000) -100% Don Dame $ 3,431 $ 19,800 $ (16,370) -83%
Wholesale Energy Services (TEA) $ 746,262 $ 792,000 $ (45,738) -6% 2030 100% Renewable & Storage $ - $ 27,500 $ (27,500) -100% Customer Support Call Center $ 909,988 $ 885,500 $ 24,488 3% Operating Services $ 115,684 $ 110,000 $ 5,684 5%
Commercial Legal Support $ 42,778 $ 22,000 $ 20,778 94% Legal General Counsel $ 21,652 $ 77,000 $ (55,349) -72% Regulatory Counsel $ 133,128 $ 187,000 $ (53,872) -29%
Joint CCA Regulatory counsel $ - $ 17,600 $ (17,600) -100% Legislative - (Lobbyist) $ 60,500 $ 63,250 $ (2,750) -4% Accounting Services $ - $ 2,750 $ (2,750) -100%
Financial Consultant $ 48,070 $ 95,000 $ (46,930) -49%
Audit Fees $ 60,230 $ 70,000 $ (9,770) -14%
Marketing $ 176,175 $ 341,000 $ (164,825) -48%
Marketing Collateral $ 175,256 $ 297,000 $ (121,744) -41% Community Engagement Activities & Sponsorships $ 919 $ 44,000 $ (43,081) -98% Programs $ 157,447 $ 2,019,500 $ (1,862,053) -92%
Program Costs (Rebates, Incentives, etc.) $ 159,363 $ 900,000 $ (740,637) -82% Member Agency Advisory Services $ - $ 143,000 $ (143,000) -100% AG Fit $ (1,916) $ 960,000 $ (961,916) -100%
PIPP Program $ - $ 16,500 $ (16,500) -100%
Rents & Leases $ 35,103 $ 45,100 $ (9,997) -22%
Hunt Boyer Mansion $ 35,103 $ 23,100 $ 12,003 52%
Lease Improvement $ - $ 22,000 $ (22,000) -100%
Other A&G $ 474,158 $ 700,300 $ (226,142) -32%
Development - New Members $ - $ 23,100 $ (23,100) -100% Strategic Plan Implementation $ 111,476 $ 70,400 $ 41,076 58% Strategic Plan Update & Community Focus Group $ 58,971 $ 110,000 $ (51,029) -46% PG&E Data Fees $ 243,315 $ 275,000 $ (31,685) -12%
Insurance $ 60,396 $ 88,000 $ (27,604) -31%
Banking Fees $ - $ 133,800 $ (133,800) -100%
Miscellaneous Operating Expenses $ 12,139 $ 11,000 $ 1,139 10% Contingency $ - $ 220,000 $ (220,000) -100%
0 0
TOTAL OPERATING EXPENSES $ 57,017,361 $ 67,663,100 $ (10,645,739) -16% Interest on RCB Term loan $ - $ - $ - 100%
NET INCOME $ 25,150,295 $ 27,485,900
Item 7
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 7 (c)
______________________________________________________________________________ TO: Board of Directors
FROM: Edward Burnham, Chief Financial Officer / Treasurer Mitch Sears, Chief Executive Officer
SUBJECT: Monthly Treasurer’s Report (Informational Item) – December 31, 2025 DATE: February 12, 2026
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 December 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 December 31, 2025.
Financial Statements for the period December 1, 2025 – December 31, 2025 In the Statement of Net Position, VCE, as of December 31, 2025, has a total of $79,013,892 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 December 31, 2025, VCE’s net position was $94,049,205.
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $7,315,915 of revenue (net of allowance for doubtful accounts), of which $7,460,485 was billed in, and $3,410,317 represents estimated unbilled revenue. The cost of electricity for the December revenue totaled $1,645,260 For December, VCE’s gross margin was approximately 78% and the net income totaled $5,311,807. The year-to-date change in net position was $30,871,429.
Item 7
In the Statement of Cash Flows, VCE cash flows from operations were $3,233,387 due to December cash receipts of revenues being more than the monthly cash operating expenses.
Bank Account Balances (as of 12/31/2025):
Operating Account $42,282,795
Insured Cash Sweep Account $37,417,161
Debt Service Account $1,100,000
CAISO Operational Account $7,346,171
Total Cash on Deposit $88,146,127
Note: VCE receives 6.05% 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. December 2025 earnings were $153,000.
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 October 31, 2025 was $0. VCE has issued, but undrawn, letters of credit for a total of $266,989 for regulatory.
Actual vs. Budget Variances for the year to date ending December 31, 2025 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – ($12,424,185) and -12% – Unfavorable variance mainly driven by lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures. • Purchased Power – $10,057,407 and 12% – 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 $469,164 and 23% – Favorable Variance due to vacancy for additional budgeted positions. 2 of 3 successful recruitments completed in Q4. • Programs $1,952,260 – Favorable Variance due to timing differences in AgFIT closeout, current year program activities, and member agency support services. • Marketing & Engagement $176,890 – Favorable Variance due to lower forecasted activities for support of programs and events.
• Other Contract Services (e.g. IRP) 72,000 – Favorable Variance due to the IRP process being delayed by CPUC.
Attachments:
5) Financial Statements (Unaudited) December 1, 2025 to December 31, 2025 (with comparative year to date information.)
6) Actual vs. Budget for the year to date ending December 31, 2025
VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF DECEMBER 1 TO DECEBER 31,
2025 PREPARED ON FEBRUARY 1, 2026
2 ASSETS
Current assets:
Cash and cash equivalents 79,013,892
Accounts receivable, net of allowance 9,580,149
Accrued revenue 3,410,317
Prepaid expenses 389,517
Inventory - Renewable Energy Credits -
Other current assets and deposits 9,153,055
Total current assets 101,546,929
Restricted assets:
Debt service reserve fund 1,100,000
Total restricted assets 1,100,000
TOTAL ASSETS $ 102,646,929
LIABILITIES
Current liabilities:
Accounts payable 275,960
Accrued payroll 120,355
Interest payable -
Due to member agencies -
Accrued cost of electricity 4,269,113
Other accrued liabilities 2,101,541
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 30,754
TOTAL LIABILITIES $ 8,597,724
NET POSITION
Net position:
Local Programs Reserve 1,085,585
Restricted 1,100,000
Unrestricted 91,863,620
TOTAL NET POSITION $ 94,049,205
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
DECEMBER31, 2025
(UNAUDITED)
3 FOR THE
PERIOD ENDING
DECEMBER 31, 2025 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net $ 7,315,915 $ 88,403,278
Other revenue - $ 26,530
TOTAL OPERATING REVENUES 7,315,915 88,429,808
OPERATING EXPENSES
Cost of electricity 1,645,260 53,934,599
Contract services 210,702 2,590,608
Staff compensation 168,510 1,673,811
General, administration, and other 132,636 957,589
TOTAL OPERATING EXPENSES 2,157,108 59,156,607
TOTAL OPERATING INCOME (LOSS) 5,158,807 29,273,201
NONOPERATING REVENUES (EXPENSES)
Interest income 153,000 1,598,228
Interest and related expenses - -
Other Non Operating Revenues - -
TOTAL NONOPERATING REVENUES (EXPENSES) 153,000 1,598,228 CHANGE IN NET POSITION 5,311,807 30,871,429
Net position at beginning of period 88,737,398 63,263,712 Net position at end of period $ 94,049,205 $ 94,135,140 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENDITURES AND
DECEMBER 31, 2025
4 FOR THE
PERIOD ENDING
DECEMBER 31, 2025 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 6,342,689 $ 89,255,247 Payments received from other revenue sources - 26,530
Receipts for security deposits with energy suppliers - - Payments to purchase electricity (2,797,929) (54,120,831) Payments for contract services, general, and adminstration (305,862) (4,236,932) Payments for member agency services - -
Payments for staff compensation (168,510) (1,673,811)
Return of security deposits to energy suppliers - -
Other cash payments - -
Net cash provided (used) by operating activities 3,070,387 29,250,202
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 153,000 1,598,228
Net cash provided (used) by investing activities 153,000 1,598,228 NET CHANGE IN CASH AND CASH EQUIVALENTS 3,223,387 30,848,430 Cash and cash equivalents at beginning of period 76,482,782 76,482,782 Cash and cash equivalents at end of period 79,706,169 107,331,212 Cash and cash equivalents included in:
Cash and cash equivalents 79,013,892 79,013,892
Restricted assets 1,100,000 1,100,000
Cash and cash equivalents at end of period $ 80,113,892 $ 80,113,892
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
DECEMBER 31, 2025
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
5 FOR THE
PERIOD ENDING
DECEMBER 31, 2025 YEAR TO DATE
Operating Income (Loss) $ 5,158,807 $ 29,273,201
Depreciation expense
Increase (decrease) for uncollectible accounts 74,400 887,900 (Increase) decrease in net accounts receivable (1,940,501) (2,191,012) (Increase) decrease in accrued revenue 46,080 38,981
(Increase) decrease in prepaid expenses 5,775 (74,231)
(Increase) decrease in inventory - renewable energy credits - - (Increase) decrease in other assets and deposits 5,556 (215,264) Increase (decrease) in accounts payable 31,920 (473,471) Increase (decrease) in accrued payroll 11,167 (31,119)
Increase (decrease) in due to member agencies - -
Increase (decrease) in accrued cost of electricity (1,152,669) (186,233) 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 811,236 2,239,726 Increase (decrease) in user taxes due to other governments 18,618 (18,276) Increase (decrease) in advances from public purpose programs - - Net cash provided (used) by operating activities $ 3,070,387 $ 29,250,203 (UNAUDITED)
DECEMBER 31, 2025
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES
Adjustments to reconcile operating income to net cash provided
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 12/31/2025
Description YTD
Actuals
YTD
Budget
YTD
Variance
% over
/-under
Total Revenues $ 89,636,571 $ 102,195,000 $ (12,558,429) -12% Electric Revenue $ 88,011,815 $ 100,436,000 $ (12,424,185) -12% Interest Revenues $ 1,598,226 $ 990,000 $ 608,226 61%
Reimbursable Revenues $ 26,530 $ 769,000 $ (742,470) -97% Purchased Power $ 53,934,599 $ 63,992,000 $ (10,057,401) -16% Purchased Power Base $ 53,934,599 $ 60,946,000 $ (7,011,401) -12% Purchased Power Contingency 5% $ - $ 3,046,000 $ (926,134) -30% Labor & Benefits $ 1,630,836 $ 2,100,000 $ (469,164) -22% Salaries & Wages/Benefits $ 1,271,030 $ 1,728,000 $ (456,970) -26% Contract Labor $ 218,361 $ 192,000 $ 26,361 14%
Human Resources & Payroll $ 141,445 $ 180,000 $ (38,555) -21% Office Supplies & Other Expenses $ 301,891 $ 509,500 $ (207,609) -41% Technology Costs $ 94,269 $ 52,000 $ 42,269 81%
Office Supplies $ 6,268 $ 12,000 $ (5,732) -48%
Travel $ 16,630 $ 25,500 $ (8,870) -35%
CalCCA Dues $ 183,660 $ 192,000 $ (8,340) -4%
CC Power $ - $ 216,000 $ (216,000) -100%
Memberships $ 1,064 $ 12,000 $ (10,936) -91%
Contractual Services $ 2,331,551 $ 2,643,800 $ (312,249) -12% Other Contract Services (e.g. IRP) $ - $ 72,000 $ (72,000) -100% Don Dame $ 3,799 $ 21,600 $ (17,802) -82%
Wholesale Energy Services (TEA) $ 820,718 $ 864,000 $ (43,282) -5% 2030 100% Renewable & Storage $ - $ 30,000 $ (30,000) -100% Customer Support Call Center $ 989,782 $ 966,000 $ 23,782 2% Operating Services $ 116,119 $ 120,000 $ (3,881) -3%
Commercial Legal Support $ 54,884 $ 24,000 $ 30,884 129% Legal General Counsel $ 23,850 $ 84,000 $ (60,151) -72% Regulatory Counsel $ 148,101 $ 204,000 $ (55,899) -27%
Joint CCA Regulatory counsel $ - $ 19,200 $ (19,200) -100% Legislative - (Lobbyist) $ 66,000 $ 69,000 $ (3,000) -4% Accounting Services $ - $ 3,000 $ (3,000) -100%
Financial Consultant $ 48,070 $ 97,000 $ (48,930) -50%
Audit Fees $ 60,230 $ 70,000 $ (9,770) -14%
Marketing $ 195,110 $ 372,000 $ (176,890) -48%
Marketing Collateral $ 193,829 $ 324,000 $ (130,171) -40% Community Engagement Activities & Sponsorships $ 1,281 $ 48,000 $ (46,719) -97% Programs $ 221,740 $ 2,174,000 $ (1,952,260) -90%
Program Costs (Rebates, Incentives, etc.) $ 203,348 $ 1,000,000 $ (796,652) -80% Member Agency Advisory Services $ - $ 156,000 $ (156,000) -100% AG Fit $ 18,392 $ 1,000,000 $ (981,608) -98%
PIPP Program $ - $ 18,000 $ (18,000) -100%
Rents & Leases $ 37,203 $ 49,200 $ (11,997) -24%
Hunt Boyer Mansion $ 37,203 $ 25,200 $ 12,003 48%
Lease Improvement $ - $ 24,000 $ (24,000) -100%
Other A&G $ 508,530 $ 752,000 $ (243,470) -32%
Development - New Members $ - $ 25,200 $ (25,200) -100% Strategic Plan Implementation $ 113,776 $ 76,800 $ 36,976 48% Strategic Plan Update & Community Focus Group $ 58,971 $ 120,000 $ (61,029) -51% PG&E Data Fees $ 265,357 $ 300,000 $ (34,643) -12%
Insurance $ 66,171 $ 96,000 $ (29,829) -31%
Banking Fees $ 4,255 $ 134,000 $ (129,745) -97%
Miscellaneous Operating Expenses $ 13,009 $ 12,100 $ 909 8% Contingency $ - $ 240,000 $ (240,000) -100%
0 0
TOTAL OPERATING EXPENSES $ 59,174,469 $ 72,844,600 $ (13,670,131) -19% Interest on RCB Term loan $ - $ - $ - 100%
NET INCOME $ 29,350,400 30,462,102 $