PROPOSED FY 2019-20 BUDGET FINANCE & ADMINISTRATION COMMITTEE - - PowerPoint PPT Presentation
Item 2 PRESENTATION PROPOSED FY 2019-20 BUDGET FINANCE & ADMINISTRATION COMMITTEE August 6, 2019 1 Item 2 PRESENTATION Strategic Jun Department Plan Jul Budgets approved developed Finance & Admin Aug Committee Review
FINANCE & ADMINISTRATION COMMITTEE August 6, 2019
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FY 2019-20 Operating Budget Strategic Plan approved Department Budgets developed Proposed Budget reviewed by Board Approval from Board Oct 1 – New Budget Year
Aug Sept
Oct
Aug Jul Jun Finance & Admin Committee Review
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2020
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Customer Accounts
Energy Sales (MWh’s)
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Res. 90% C&I 9% Other 1% Res 34% C&I 64% Other 2%
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Energy 99% Other 1%
million of budgeted revenues are from energy sales to customers
economic downturn and changes in rates
vulnerability from Direct Access
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Energy Supply Cost
the Mid-Year as commodity prices have stabilized
2019-20
to creep up in costs
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Energy & REC 80% Capacity 12% Other 5% Contingency 3%
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Variable 94% Fixed 6%
$16.9 Million Fixed Cost Budget
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$267.9 Million Expense Budget
Billing 21% Data Mgmt 8% Personnel 30% Professional Svc 20% Marketing 7% G&A 10% Debt Svd 1% Capex 3% Other 0% Item 2 PRESENTATION
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$0 $50 $100 $150 $200 $250 $300 $350
MWh Sales 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000
Millions Total Costs Revenue Surplus/(Deficit)
Low fixed costs keeps us nimble to changing environment
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Strategic Plan
Funding to support increased Board input into the strategic planning process. Overall focus change of the document to be less task specific and more agency direcitonal
PG&E Bankruptcy
Funding for continued monitoring and strategic action as the bankruptcy unfolds
Collaboration
Continued collaboration with the “Mag 5” or
CCA’s on various issues
Board
General Counsel Board/Committee meetings support
Executive Administration
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Cybersecurity
Major new funding to support cybersecurity initiatives Focus is on security and reliability
Credit Rating
Funding for Moody’s Financial Advisor Renew Line of Credit
Facility Improvements
Increased rent budget to support larger work area Increase capital budget to support move either in this building or somewhere else
HR/Payroll Improvements
Maintain competitive compensation and benefits package Rollout of better payroll and human resource services
Risk Management Power Pre-Pay
Support for analysis and possible execution of an agreement
Finance & Administration
Support for risk management of agency (insurance, etc.) Support for risk management of energy supply and compliance
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PPA Negotiations
Consultants and Legal support for not just new PPA negotiations but issues that arise from the 3 PPA’s signed last year
Portfolio Optimization
Controlling Power Supply Costs Assist with Direct Access strategies and response
Operations
Scheduling Coordination Resource Adequacy cost- sharing consultant Other Power Procurement support including risk management, load forecasting, and software tools to support more integrated trade system
Integrated Resource Plan (IRP)
Preparation and filing in 2020 All areas of the agency involved but Reg/Leg will be partnering with Power Supply
Power Supply
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Data Management
Negotiations for contract renewal with Calpine Long-Term data management strategies
Outreach
Outreach grants Events
Awareness
Market surveys Advertising
Programs Support
Continued rollout of Heat Pump Water Heater program Various support to rollout programs
Required Notifications
Funding for various mailers that are required by the CPUC such as the annual joint rate mailer with coordination of PG&E
Account Services & Community Relations
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Pro-Active with Legislature
Funding for Lobbyist presence Funding for continued communications with key stakeholders
CalCCA
Membership Dues Support of various committee’s and initiatives
Rates Workforce Development
Funding for continued support of the workforce development initiative
Regulatory & Legislative
PG&E General Rate Case 2020 ERRA Forecast
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Programs Funding
Continue with the 2% of energy revenues formula for annual funding of programs Carryover unused $ from this fiscal year by creating programs fund
Programs Roadmap
Continued rollout of various programs identified in the roadmap with updates during the fiscal year
Other
Various software and licensing support to pursue data analytics, customer resource center and other programs support
Decarbonization & Grid Innovations
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Innovations Dept.
“building/construction” related decarbonization
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customer specific options
agency in the future
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$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2022-23
$ in Thousands Reserves Target Min Max
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Still unknown on PCIA and PG&E Rates
RATES
Customer reserves; plan of reorganization
PG&E BANKRUPTCY
Higher market prices for capacity and energy; underlying commodity volatility; credit rating
POWER SUPPLY
Prepare now for 2020 and potential further expansion
DIRECT ACCESS
RESERVES
IOUs exit retail; Central Buyer; credit rating
LEGISLATION
PG&E Restructuring; Central Buyer
REGULATIONS
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$225
$235
Making, $273
Goal 10: Bundled energy and renewable resources, $200 12: Carbon-Free Energy, $244,756
$ in Thousands
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