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) – June 30, 2026 DATE: September 10, 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 June 30, 2026.
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, 2026.
Financial Statements for the period June 1, 2026 – June 30, 2026 In the Statement of Net Position, VCE, as of June 30, 2026, has a total of $80,332,123 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, 2026, VCE’s net position was $91,645,092.
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $4,929,222 of revenue (net of allowance for doubtful accounts), of which $4,270,736 was billed in, and $2,379,101 represents estimated unbilled revenue. The cost of electricity for the June revenue totaled $3,549,149 For June, VCE’s gross margin was approximately 30% and the net income totaled $1,065,841. The year-to-date change in net position was ($3,118,914.
Item 5
In the Statement of Cash Flows, VCE cash flows from operations were ($453,606) due to June cash receipts of revenues being more than the monthly cash operating expenses.
Bank Account Balances (as of 06/30/2026):
Operating Account $41,766,028
Insured Cash Sweep Account $39,701,950
Debt Service Account $1,100,000
CAISO Operational Account $7,917,580
Total Cash on Deposit $90,485,559
Note: VCE receives 5.72% 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 2026 earnings were $156,068.
VCE’s Outstanding Loan Balances (as of 06/30/2026):
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, 2027. The related debt outstanding at the close of business on October 31, 2026 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 June 30, 2026 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – $440,940 and 8% – Favorable variance mainly driven by favorable PG&E PCIA rate adjustments than forecasted, resulting from final actual results for PG&E included in the December true-up process and lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures.
• Purchased Power – $2,616,887 and 5% – Favorable mainly due to lower power costs resulting in less PPA cost recoveries, increased curtailment energy, and lower load than forecasted by residential and agriculture customers due to mild winter and summer temperatures. • Salaries & Wages – 137,769 and 13% favorable, driven by a vacancy in the Budgeted Policy Analyst role currently in recruitment and underfilled positions. • CC Power $108,000 and 100% Favorable due to the timing difference between amortization of budgeted expenses and actual expenses.
• Other Contracting Services $54,730 and 72% Favorable due to the timing difference between amortization of budgeted expenses and actual expenses due to delayed regulatory proceedings. • Programs $645,104 – 92% Favorable Variance due to timing differences from the anticipated EV phase II program being deferred to Q426.
• Marketing Plan / Focus Groups $75,000 – 100% Favorable Variance due to being deferred to Q426.
Attachments:
1) Financial Statements (Unaudited) June 1, 2026 to June 30, 2026 (with comparative year to date information.)
2) Actual vs. Budget for the year to date ending June 30, 2026
VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF JUNE 1 TO JUNE 30, 2026
PREPARED ON AUGUST 21, 2026
2 ASSETS
Current assets:
Cash and cash equivalents $ 80,332,123
Accounts receivable, net of allowance 6,612,975
Accrued revenue 2,379,101
Prepaid expenses 175,429
Inventory - Renewable Energy Credits -
Other current assets and deposits 9,724,463
Total current assets 99,224,090
Restricted assets:
Debt service reserve fund 1,100,000
Total restricted assets 1,100,000
TOTAL ASSETS $ 100,324,090
LIABILITIES
Current liabilities:
Accounts payable 272,331
Accrued payroll 71,330
Interest payable -
Due to member agencies -
Accrued cost of electricity 4,198,199
Other accrued liabilities 2,289,528
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 47,610
TOTAL LIABILITIES $ 8,678,999
NET POSITION
Net position:
Designated Funds $ 18,849,585
Local Programs Reserve 2,709,585
Rate Stabilization 12,284,000
Customer Difidends 3,856,000
Restricted 1,100,000
Unrestricted 71,695,507
TOTAL NET POSITION $ 91,645,092
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
JUNE 30, 2026
(UNAUDITED)
3 FOR THE
PERIOD ENDING
JUNE 30, 2026 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net $ 4,929,222 $ 19,430,940
Other revenue 0 31,375
TOTAL OPERATING REVENUES 4,929,222 19,462,315
OPERATING EXPENSES
Cost of electricity 3,579,149 21,366,879
Contract services 235,027 1,251,459
Staff compensation 150,662 920,591
General, administration, and other 47,080 486,534
TOTAL OPERATING EXPENSES 4,011,918 24,025,463
TOTAL OPERATING INCOME (LOSS) 917,304 (4,563,148)
NONOPERATING REVENUES (EXPENSES)
Interest income 148,537 917,467
Interest and related expenses - -
Other Non Operating Revenues - -
TOTAL NONOPERATING REVENUES (EXPENSES) 148,537 917,467
CHANGE IN NET POSITION 1,065,841 (3,645,681)
Net position at beginning of period 90,579,251 95,290,772 Net position at end of period $ 91,645,092 $ 91,645,092 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENDITURES AND
JUNE 30, 2026
4 FOR THE
PERIOD ENDING
JUNE 30, 2026 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 2,958,926 $ 24,663,117 Public purpose program receipts - -
Payments received from other revenue sources 0 31,375
Receipts for security deposits with energy suppliers - - Payments to purchase electricity (2,999,298) (21,220,547) Payments for contract services, general, and adminstration (269,148) (1,723,913) Payments for member agency services - -
Payments for staff compensation (144,086) (970,105)
Tax and surcharge payments to other governments - -
Other cash payments - -
Net cash provided (used) by operating activities (453,606) 779,928
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 148,537 917,467
Net cash provided (used) by investing activities 148,537 917,467 NET CHANGE IN CASH AND CASH EQUIVALENTS (305,069) 1,697,395 Cash and cash equivalents at beginning of period 81,737,192 79,734,728 Cash and cash equivalents at end of period 81,432,123 81,432,123 Cash and cash equivalents included in:
Cash and cash equivalents 80,332,123 80,332,123
Restricted assets 1,100,000 1,100,000
Cash and cash equivalents at end of period $ 81,432,123 $ 81,432,123
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
JUNE 30, 2026
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
5 FOR THE
PERIOD ENDING
JUNE 30, 2026 YEAR TO DATE
Operating Income (Loss) $ 917,304 $ (4,563,148)
Depreciation expense
Increase (decrease) for uncollectible accounts 42,500 209,800 (Increase) decrease in net accounts receivable (1,318,140) 3,636,379 (Increase) decrease in accrued revenue (714,003) 1,384,577 (Increase) decrease in prepaid expenses 18,735 18,604
(Increase) decrease in inventory - renewable energy credits - - (Increase) decrease in other assets and deposits - -
Increase (decrease) in accounts payable 7,548 (20,206)
Increase (decrease) in accrued payroll 6,577 (49,514)
Increase (decrease) in due to member agencies - -
Increase (decrease) in accrued cost of electricity 566,526 162,014 Increase (decrease) in other accrued liabilities - -
Increase (decrease) security deposits with energy suppliers - - Increase (decrease) in user taxes and energy surcharges 19,348 1,421 Increase (decrease) in security deposits from energy suppliers - - Increase (decrease) in user taxes due to other governments - - Increase (decrease) in advances from public purpose programs - - Net cash provided (used) by operating activities $ (453,606) $ 779,928 (UNAUDITED)
JUNE 30, 2026
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
2026 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 06/30/2026
Description YTD
Actuals
YTD
Budget
YTD
Variance
% over
/-under
Total Revenues $ 20,379,783 $ 19,662,000 $ 717,783 4%
Electric Revenue $ 19,430,941 $ 18,990,000 $ 440,941 2% Interest Revenues $ 917,466 $ 660,000 $ 257,466 39%
Reimbursable Revenues $ 31,375 $ 12,000 $ 19,375 161%
Purchased Power $ 20,840,113 $ 23,457,000 $ (2,616,887) -11% Purchased Power Base $ 20,840,113 $ 22,297,000 $ (1,456,887) -7% Purchased Power Contingency 5% $ - $ 1,160,000 $ (1,160,000) -100% Labor & Benefits $ 936,237 $ 1,074,000 $ (137,763) -13% Salaries & Wages/Benefits $ 758,329 $ 870,000 $ (111,671) -13% Contract Labor $ 100,660 $ 108,000 $ (7,340) -7%
Human Resources & Payroll $ 77,248 $ 96,000 $ (18,752) -20% Office Supplies & Other Expenses $ 196,141 $ 263,500 $ (67,359) -26% Technology Costs $ 63,130 $ 25,000 $ 38,130 153%
Office Supplies $ 12,321 $ 6,000 $ 6,321 105%
Travel $ 14,026 $ 22,500 $ (8,474) -38%
CalCCA Dues $ 105,000 $ 96,000 $ 9,000 9%
CC Power $ - $ 108,000 $ (108,000) -100%
Memberships $ 1,665 $ 6,000 $ (4,336) -72%
Contractual Services $ 1,178,187 $ 1,393,900 $ (215,713) -15% Other Contract Services (e.g. IRP) $ 20,880 $ 75,000 $ (54,120) -72% Don Dame $ 2,794 $ 18,000 $ (15,206) -84%
Wholesale Energy Services (TEA) $ 393,554 $ 432,000 $ (38,446) -9% 2030 100% Renewable & Storage $ - $ 15,000 $ (15,000) -100% Customer Support Call Center $ 483,981 $ 483,000 $ 981 0% Operating Services $ 460 $ 60,000 $ (59,540) -99%
Commercial Legal Support $ 61,653 $ 15,000 $ 46,653 311% Legal General Counsel $ 34,051 $ 39,000 $ (4,949) -13%
Regulatory Counsel $ 108,213 $ 102,000 $ 6,213 6%
Joint CCA Regulatory counsel $ - $ 9,600 $ (9,600) -100% Legislative - (Lobbyist) $ 33,000 $ 34,500 $ (1,500) -4% Accounting Services $ - $ 1,800 $ (1,800) -100%
Financial Consultant $ - $ 9,000 $ (9,000) -100%
Audit Fees $ 39,600 $ 55,000 $ (15,400) -28%
Marketing $ 152,403 $ 199,000 $ (46,597) -23%
Marketing Collateral $ 152,403 $ 160,000 $ (7,597) -5%
Community Engagement Activities & Sponsorships $ - $ 39,000 $ (39,000) -100% Programs $ 53,896 $ 699,000 $ (645,104) -92%
Program Costs (Rebates, Incentives, etc.) $ 42,317 $ 480,000 $ (437,683) -91% Member Agency Advisory Services $ - $ 12,000 $ (12,000) -100% AG Fit $ 11,578 $ 132,000 $ (120,422) -91%
PIPP Program $ - $ 75,000 $ (75,000) -100%
Rents & Leases $ 12,600 $ 26,100 $ (13,500) -52%
Hunt Boyer Mansion $ 12,600 $ 14,100 $ (1,500) -11%
Lease Improvement $ - $ 12,000 $ (12,000) -100%
Other A&G $ 127,017 $ 376,700 $ (249,683) -66%
Development - New Members $ - $ 7,500 $ (7,500) -100%
Strategic Plan Implementation $ 11,759 $ 38,400 $ (26,641) -69% Strategic Plan Update & Community Focus Group $ - $ 75,000 $ (75,000) -100% PG&E Data Fees $ 44,117 $ 150,000 $ (105,883) -71%
Insurance $ 34,289 $ 48,000 $ (13,711) -29%
Banking Fees $ 36,852 $ 57,800 $ (20,948) -36%
Miscellaneous Operating Expenses $ 2,104 $ 6,000 $ (3,896) -65% Contingency $ - $ 120,000 $ (120,000) -100%
0 0
TOTAL OPERATING EXPENSES $ 23,498,697 $ 27,615,200 $ (4,116,503) -15% Interest on RCB Term loan $ - $ - $ - 100%
NET INCOME $ (7,953,200) (3,118,914) $