Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Financial Performance topic
No spam. Unsubscribe anytime.
Treasurer reports strong investment returns and FY2024-25 surplus; staff warns of ongoing operational and regulatory risks
Summary
San Diego Community Powers CFO reported a net position boost year-to-date and a fiscal-year surplus above budget driven by higher customer demand, investment returns and non-energy cost savings; staff nevertheless flagged PCIA volatility and other risks that inform the proposed reserves change.
San Diego Community Powers chief financial officer, Dr. Eric Washington, told the Finance, Risk & Audit Committee that the agency finished the reported quarter and fiscal year in stronger-than-budgeted financial shape but still faces ongoing operational and regulatory risks.
In his quarter presentation Dr. Washington said the agency ended the period with a net position "just under $87,000,000" year to date and noted net operating revenue figures and energy-cost savings. He reported unrestricted cash and investments at just under $450,000,000, about 90% of the periods stated reserve target of $498,000,000, and said staff measured 162 days cash on hand from unrestricted cash and investments.
Investment advisor Dan Delaney of Chandler Asset Management told the committee the portfolio is "safe, very liquid, and producing very strong returns," citing an average purchase yield around 4.2% and outperformance versus the benchmark. Delaney and Dr. Washington urged extending maturities and diversifying across high-quality asset classes to lock in higher yields as short-term rates ease.
At the fiscal-year review Dr. Washington said audited results for the year ending 06/30/2025 showed a net position about $67,000,000 above budget and operating revenues about $22,000,000 above budget driven in part by higher customer demand and lower uncollectible accounts. He pointed to approximately $15,000,000 in non-energy operating expense savings and nearly $1,000,000 saved in marketing outreach.
During Q&A Vice Chair Suzuki asked how personnel savings (cited at about $2,900,000) were calculated; Dr. Washington explained savings come from positions budgeted but not yet filled and from vacancies and timing differences, plus associated benefits and related costs that had not yet been incurred. Director of Finance Timothy Manglumont added that a large jump in reported figures (from about $65.7M to $253.4M on one slide) reflects customer onboarding and a Power Charge Indifference Adjustment (PCIA) effect that staff will analyze further.
Staff framed the financial results as demonstrating prudent management while underscoring the need to build reserves and manage PCIA volatility; the committee received the treasurers report and placed it on file.
