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) – July 31, 2026 DATE: October 8, 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 July 31, 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 July 31, 2026.
Financial Statements for the period July 1, 2026 – July 31, 2026 In the Statement of Net Position, VCE, as of July 31, 2026, has a total of $80,619,916 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, 2026, VCE’s net position was $93,205,771.
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCE recorded $7,384,046 of revenue (net of allowance for doubtful accounts), of which $6,752,438 was billed in, and $3,107,951 represents estimated unbilled revenue. The cost of electricity for the July revenue totaled $5,520,537 For July, VCE’s gross margin was approximately 30% and the net income totaled $1,560,679. The year-to-date change in net position was ($2,085,001).
Item 5
In the Statement of Cash Flows, VCE cash flows from operations were $290,673 due to July cash receipts of revenues being more than the monthly cash operating expenses.
Bank Account Balances (as of 07/31/2026):
Operating Account $41,983,925
Insured Cash Sweep Account $39,832,346
Debt Service Account $1,100,000
CAISO Operational Account $8,040,305
Total Cash on Deposit $90,956,577
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. July 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 July 31, 2026 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue – $1,695,897 and 6% – 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 – $3,372,350 and 11% – 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 – 173,987 and 14% favorable, driven by a vacancy in the Budgeted Policy Analyst role currently in recruitment and underfilled positions. • Other Contracting Services $66,620 and 76% Favorable due to the timing difference between amortization of budgeted expenses and actual expenses due to delayed regulatory proceedings. • Programs $724,288 – 90% 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) July 1, 2026 to July 31, 2026 (with comparative year to date information.)
2) Actual vs. Budget for the year to date ending July 31, 2026
VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF JULY 1 TO JULY 31, 2026
PREPARED ON SEPTEMBER 2, 2026
2 ASSETS
Current assets:
Cash and cash equivalents $ 80,619,916
Accounts receivable, net of allowance 8,204,473
Accrued revenue 3,107,952
Prepaid expenses 271,512
Inventory - Renewable Energy Credits -
Other current assets and deposits 9,847,188
Total current assets 102,051,041
Restricted assets:
Debt service reserve fund 1,102,881
Total restricted assets 1,102,881
TOTAL ASSETS $ 103,153,922
LIABILITIES
Current liabilities:
Accounts payable 257,207
Accrued payroll 36,378
Interest payable -
Due to member agencies -
Accrued cost of electricity 5,487,483
Other accrued liabilities 2,297,157
Security deposits - energy supplies 1,800,000
User taxes and energy surcharges 69,926
TOTAL LIABILITIES $ 9,948,151
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 1,102,881
Unrestricted 73,253,305
TOTAL NET POSITION $ 93,205,771
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
JULY 31, 2026
(UNAUDITED)
3 FOR THE
PERIOD ENDING
JULY 31, 2026 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net $ 7,384,046 $ 26,814,986
Other revenue - 31,375
TOTAL OPERATING REVENUES 7,384,046 26,846,361
OPERATING EXPENSES
Cost of electricity 5,520,537 26,887,416
Contract services 230,074 1,481,533
Staff compensation 147,776 1,068,367
General, administration, and other 81,048 567,581
TOTAL OPERATING EXPENSES 5,979,435 30,004,897
TOTAL OPERATING INCOME (LOSS) 1,404,611 (3,158,537)
NONOPERATING REVENUES (EXPENSES)
Interest income 156,068 1,073,535
Interest and related expenses - -
Other Non Operating Revenues - -
TOTAL NONOPERATING REVENUES (EXPENSES) 156,068 1,073,535 CHANGE IN NET POSITION 1,560,679 (2,085,001)
Net position at beginning of period 91,645,092 95,290,772 Net position at end of period $ 93,205,771 $ 93,205,771 (WITH COMPARATIVE YEAR TO DATE INFORMATION)
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENDITURES AND
JULY 31, 2026
4 FOR THE
PERIOD ENDING
JULY 31, 2026 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 5,093,640 $ 29,756,758 Public purpose program receipts - -
Payments received from other revenue sources - 31,375
Receipts for security deposits with energy suppliers - - Payments to purchase electricity (4,390,541) (25,611,088) Payments for contract services, general, and adminstration (385,766) (2,109,678) Payments for member agency services - -
Payments for staff compensation (182,728) (1,152,833)
Tax and surcharge payments to other governments - -
Other cash payments - -
Net cash provided (used) by operating activities 134,605 914,533
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 156,068 1,073,535
Net cash provided (used) by investing activities 156,068 1,073,535 NET CHANGE IN CASH AND CASH EQUIVALENTS 290,673 1,988,069 Cash and cash equivalents at beginning of period 81,432,123 79,734,728 Cash and cash equivalents at end of period 81,722,797 81,722,797 Cash and cash equivalents included in:
Cash and cash equivalents 80,619,916 80,619,916
Restricted assets 1,102,881 1,102,881
Cash and cash equivalents at end of period $ 81,722,797 $ 81,722,797 (UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
JULY 31, 2026
(WITH YEAR TO DATE INFORMATION)
5 FOR THE
PERIOD ENDING
JULY 31, 2026 YEAR TO DATE
Operating Income (Loss) $ 1,404,611 $ (3,158,537)
Depreciation expense
Increase (decrease) for uncollectible accounts 67,300 277,100 (Increase) decrease in net accounts receivable (1,651,170) 1,985,208 (Increase) decrease in accrued revenue (728,851) 655,726 (Increase) decrease in prepaid expenses (96,083) (77,479) (Increase) decrease in inventory - renewable energy credits - - (Increase) decrease in other assets and deposits - -
Increase (decrease) in accounts payable (15,124) (35,329) Increase (decrease) in accrued payroll (34,952) (84,466) Increase (decrease) in due to member agencies - -
Increase (decrease) in accrued cost of electricity 1,166,559 1,328,573 Increase (decrease) in other accrued liabilities - -
Increase (decrease) security deposits with energy suppliers - - Increase (decrease) in user taxes and energy surcharges 22,316 23,737 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 $ 134,605 $ 914,533
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)
JULY 31, 2026
VALLEY CLEAN ENERGY
2026 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 07/31/2026
Description YTD
Actuals
YTD
Budget
YTD
Variance
% over
/-under
Total Revenues $ 27,919,897 $ 26,224,000 $ 1,695,897 6% Electric Revenue $ 26,814,987 $ 25,450,000 $ 1,364,987 5% Interest Revenues $ 1,073,534 $ 760,000 $ 313,534 41%
Reimbursable Revenues $ 31,375 $ 14,000 $ 17,375 124%
Purchased Power $ 26,360,650 $ 29,633,000 $ (3,272,350) -11% Purchased Power Base $ 26,360,650 $ 28,167,000 $ (1,806,350) -6% Purchased Power Contingency 5% $ - $ 1,466,000 $ (311,798) -21% Labor & Benefits $ 1,084,013 $ 1,258,000 $ (173,987) -14% Salaries & Wages/Benefits $ 882,189 $ 1,020,000 $ (137,811) -14% Contract Labor $ 115,312 $ 126,000 $ (10,688) -8%
Human Resources & Payroll $ 86,512 $ 112,000 $ (25,488) -23% Office Supplies & Other Expenses $ 228,788 $ 325,000 $ (96,212) -30% Technology Costs $ 73,229 $ 50,000 $ 23,229 46%
Office Supplies $ 13,085 $ 7,000 $ 6,085 87%
Travel $ 18,310 $ 23,000 $ (4,691) -20%
CalCCA Dues $ 122,500 $ 112,000 $ 10,500 9%
CC Power $ - $ 126,000 $ (126,000) -100%
Memberships $ 1,665 $ 7,000 $ (5,336) -76%
Contractual Services $ 1,374,183 $ 1,617,050 $ (242,867) -15% Other Contract Services (e.g. IRP) $ 20,880 $ 87,500 $ (66,620) -76% Don Dame $ 3,916 $ 21,000 $ (17,084) -81%
Wholesale Energy Services (TEA) $ 478,653 $ 504,000 $ (25,347) -5% 2030 100% Renewable & Storage $ - $ 17,500 $ (17,500) -100% Customer Support Call Center $ 566,565 $ 563,500 $ 3,065 1% Operating Services $ 460 $ 70,000 $ (69,540) -99%
Commercial Legal Support $ 57,302 $ 17,000 $ 40,302 237% Legal General Counsel $ 41,419 $ 46,000 $ (4,581) -10%
Regulatory Counsel $ 123,298 $ 119,000 $ 4,298 4%
Joint CCA Regulatory counsel $ - $ 11,200 $ (11,200) -100% Legislative - (Lobbyist) $ 38,500 $ 40,250 $ (1,750) -4% Accounting Services $ - $ 2,100 $ (2,100) -100%
Financial Consultant $ - $ 10,500 $ (10,500) -100%
Audit Fees $ 43,190 $ 55,000 $ (11,810) -21%
Marketing $ 157,483 $ 232,500 $ (75,017) -32%
Marketing Collateral $ 157,483 $ 187,000 $ (29,517) -16% Community Engagement Activities & Sponsorships $ - $ 45,500 $ (45,500) -100% Programs $ 78,712 $ 803,000 $ (724,288) -90%
Program Costs (Rebates, Incentives, etc.) $ 45,710 $ 560,000 $ (514,290) -92% Member Agency Advisory Services $ - $ 14,000 $ (14,000) -100% AG Fit $ 33,002 $ 154,000 $ (120,998) -79%
PIPP Program $ - $ 75,000 $ (75,000) -100%
Rents & Leases $ 14,700 $ 30,450 $ (15,750) -52%
Hunt Boyer Mansion $ 14,700 $ 16,450 $ (1,750) -11%
Lease Improvement $ - $ 14,000 $ (14,000) -100%
Other A&G $ 172,594 $ 418,300 $ (245,706) -59%
Development - New Members $ - $ 9,500 $ (9,500) -100%
Strategic Plan Implementation $ 29,716 $ 44,800 $ (15,084) -34% Strategic Plan Update & Community Focus Group $ - $ 75,000 $ (75,000) -100% PG&E Data Fees $ 66,327 $ 175,000 $ (108,673) -62%
Insurance $ 39,700 $ 56,000 $ (16,300) -29%
Banking Fees $ 36,852 $ 58,000 $ (21,148) -36%
Miscellaneous Operating Expenses $ 7,009 $ 7,000 $ 9 0% Contingency $ - $ 140,000 $ (140,000) -100%
0 0
TOTAL OPERATING EXPENSES $ 29,478,132 $ 34,464,300 $ (4,986,168) -14% Interest on RCB Term loan $ - $ - $ - 100%
NET INCOME $ (8,240,300) (1,558,235) $