Treasurer—s report: San Diego Community Power posts positive net position; Chandler outlines conservative investment strategy

The Finance and Risk Management Committee of San Diego Community Power received and filed the treasurer's report for the period ending Dec. 31, 2024, after presentations from the agency—s CFO and the portfolio manager from Chandler Asset Management.

Why it matters: The report showed a positive net position for the six-month fiscal period and described the authority—s liquidity, reserves progress and investment strategy as staff and the investment manager positioned cash and securities for a 2025 environment they expect will favor three- to five-year maturities.

Dr. Eric Washington, chief financial officer and treasurer, said the authority ended the reporting period with a net position of $38,388,000 on $756,000,000 of revenue and $717,800,000 of expenses. "We ended that period with a net position of $38,388,000," Washington said, noting the cost of power accounted for roughly 91% of expense in the period reported.

Bill Dennehy, co-chief investment officer at Chandler Asset Management, presented the investment portfolio and an economic outlook. Dennehy said Chandler manages the authority—s $50 million mandate with a safety-then-liquidity-then-return approach consistent with the California Government Code and the authority—s investment policy. He described a conservative portfolio concentrated in high-quality securities with a stated objective of generating reasonable returns over the investment cycle while maintaining liquidity and safety.

Dennehy outlined market expectations that shorter-term interest rates may decline gradually during 2025 while longer-term yields could remain stable, making three- to five-year securities attractive for excess cash. He said the portfolio had grown and produced positive returns since inception; an intra-quarter decline in market value after an election-driven rise in yields produced a negative total return for Oct. 1-Dec. 31 that was nevertheless better than the benchmark. Chandler reported that market value had recovered in early January.

Washington summarized liquidity and reserve metrics cited in the presentation: a reported contribution to reserves of $38.388 million, total liquidity of approximately $583 million when accounting for unrestricted cash plus available line of credit, and an illustrative days-cash-on-hand metric near 188 days (120 days on a cash-only basis) at the period end. Washington also told the committee the agency maintains a participation rate above 95% among eligible customers.

The committee had no public comments on the item and voted to receive and file the report. Directors asked that the presentation materials be posted on the agency website; staff said they would be posted following the meeting.

What was not specified: The report summarized portfolio composition and compliance; it did not include detailed line-item holdings in the public presentation. Chandler noted that every security in the portfolio is rated by at least one major rating agency (S&P, Moody's or Fitch) and that portfolio managers adhere to California Government Code and the agency—s investment policy.

Next steps: Staff will continue monthly treasury reporting and coordinate posting of the presentation materials to the agency website.