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Community Power posts $112 million boost to net position; board approves LAIF enrollment
Summary
San Diego Community Power reported fiscal-year 2025 results showing a $112 million improvement in net position, strong cash reserves and high customer retention; the committee voted to recommend joining the Local Agency Investment Fund to seek higher yields.
San Diego Community Power’s Finance and Risk Management Committee on Sept. 18 received a treasurer’s report showing the agency finished the fiscal year ending June 30, 2025, ahead of budget and voted to recommend board adoption of a resolution authorizing enrollment in the State of California’s Local Agency Investment Fund (LAIF).
For the record, Dr. Eric Washington, chief financial officer and treasurer, told the committee that the agency finished the year “ahead of budget with a change in that position. The bottom line number of $112,000,000,” which he said was “approximately $78,000,000 over our projected budget.” Washington attributed the improvement to several factors, including lower-than-expected charges for uncollectible accounts and lower energy costs, and he said investment earnings also contributed.
The report said unrestricted cash was about 63% of the target on a pure cash basis and that the organization ended the year with about 112 days cash on hand. Washington also reported stable participation rates of roughly 95–96%, which he said reflects customers electing to remain with community power.
Investment advisor Daniel (Dan) Delaney of Chancellor Asset Management presented the portfolio review and economic outlook. Delaney said staff has been “proactive” in positioning assets and that the portfolio’s average purchase yield at June 30 was about 4.3%, with total portfolio value reported in the presentation at roughly 400 million (presentation used nonstandard currency symbols; the committee discussion referenced U.S. dollar results). He said the portfolio was broadly high quality and compliant with the agency’s investment policy and relevant California code parameters.
The committee voted to recommend board adoption of a resolution authorizing the agency to invest monies in LAIF, the state-run investment pool. Washington explained that LAIF supports daily liquidity and historically higher yields for short-term balances; the presentation said LAIF would permit deposits up to $75,000,000 and up to 15 transactions per month for the account the committee would use. Washington said moving some lower-yielding short-term funds into LAIF could increase yields “by about 2%” compared with the agency’s money market alternatives, and that earnings could be directed to reserves according to the investment policy.
The treasurer’s report item was presented as a receive-and-file information item. The LAIF authorization was presented as a recommendation to the board and the committee approved forwarding the resolution for board consideration by roll-call vote.
The committee asked for the investment advisor’s slide deck and related compliance materials to be shared with members; Delaney agreed to provide the packet to Washington for circulation.
The committee will bring the recommended LAIF resolution to the full board for a vote at a later meeting.
