Bnxrol\t PIID zo2o PnnLIMI\TARY BuucET PueLrc HrnRrNc NovEMBER 6, - - PowerPoint PPT Presentation

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Bnxrol\t PIID zo2o PnnLIMI\TARY BuucET

PueLrc HrnRrNc

NovEMBER 6, 201,9

P nES ENTTATIO}T App ROACH

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Budgets are "full of numbers" Numbers without context can lack meaning

We will attempt to provide meaning through context

r Challenges & strategic focus r Current financial position

r Long term cost trends r Benchm ark utility comparisons

r Year over year comparison

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2020 Budget Hearing - November 6,20L9

AcnNDA

• 1. Overview
• 2. Strategic Context
• 3. Financial Metrics
• 4. Power Costs
• S. lt[on-power Costs
• 6. Summary & lttext Steps
• 7. Final Commissioner Questions/Comments
• B. Final Public Questions/Comments
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2020 Budget Hearing - November 6,20L9

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BUUGET DEvELoPMEltr ScnE DULE,

Oct22

Nov 6 Nov 12 Nov 26 Dec 10

Pu blic

Hearing:

Preliminary

2020 Budget

Commission Meeting Distribute High-Level Preliminary

2020 Budget

lnformation Commission

Meeting,

Public Comment Period

Glosed Final 2020 Budget Considered

for Adoption Public Comment Period

Opened

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2020 Budget Hearing - November 6,2019

2o2o Pnn LIMIIrARY BUnGET

• 2O2O Preliminary Budget is a Draft Budget

r Ongoing review of assumptions fo r all budget categories r Final budget recommendation on December 10th

Final Budget will Reflect:

r Public comment r Commission direction

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2020 Budget Hearing - November 6,2019

2o2o P npLIMI\IARy BUpGET AssuMprlolts

No planned rate increase

• [\o budgeted increase in 2O2O
• Likely need for retail revenue increase in 2O2L

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Planned reserve drawdown of $3.0 million

2020 Budget Hearing - November 6,2019

SrnerEGIc CoxrEXT

• CUnRENT BTxNTIUM
• ÌrTnxr Brcx\TIUM

( (

2or8 -2o19)

2o2o-2ozr)

. Leslie Sub & Feeders

. Orchard View Sub Bay 2 & Feeders

. Benton City Sub rebuild . Chevron Sub transformer purchase

. Transmission projects design

Electric Svstem Power Supply

. Public Generating Pool - PGP

. Clean Enerry Transformation Act . California markets

. BPA cost trendline

Broadband Svstem

. Access internet program

. L4o/o revenue increase since 2OLT

. Cybersecurity

. Resiliency . Data analytics

n Technol

i

Communitv Education

. Salmon in the Schools

. Energ¡/ Experience . RiverFest/Snake River Dams

Cunnu\T BrnNNruM

• Customer ProÉrams

. Payment kiosks . lmmediate service restore . Prepay . Low income veterans . Low income workshop

Stewardship

. Rates in lowest third of benchmarks

. Strong audit results

. Fitch Ratings upgrade . Employee driven safety culture

l{E xr B t E I{NTI uM (zo 2o - 20 2L)

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• 1
• 2

03

• 4

05

Power Contracts & Markets ric System Investments Resource Adequacy Stewardship & Rates Value of Hydro

Wffid

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2020 Budget Hearing - November 6, 2019

Fwe¡ucIAL METRIcS

AvERAGE Rnrerr, Rannsl

2or8 REpoRT oN AvEnacE REvnNUE (Cervrs PER xWH) 2

Residential Commercial lndustrial

Total

Benton PUD

WA Publicly Owned WA lnvestor Owned WA Cooperatives

8.6 9.2 10.6

9.r

6.8

7.9

9.9 8.1 5.5 5.1

7.9

6.5

7.L 7.5

1-0.0

8.3

National Average California

12.9

ro.7

16.3 18.8 6.9

1.3.2

10.5 16.6

1 Revenues - includes all charges to customer

2 American Public Power Association

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2020 Budget Hearing - November 6,2019

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MO\TTHLY BTLL CONNPARISOI{

Rns¡rE¡vrur

Average Monthly Bill October L,2OL9 $200 $180 $160 $14o $120

$roo

$ao $oo $+o $zo $o

."ôS'

Average bill information has been calculated by Benton PUD staff from publicly available information from

• ther utilities'weþsifes. Calculation is Benton PUD's best effott to provide comparable information.

kwh

1,350 $119

¡¡M¡d-c" Energy lndependence Act (ElA) eslimqled impoct on Benton PUD rqtes =$3.00 per month

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Benlon PUD hqs been ql or below lhe mediqn since 2005

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2020 Budget Hearing - November 6,20L9

DEgr Pnn CUSTOME,R

WPTIDA' Sr¡nvny - DncnrusvR 2o1B (DtsrRrBUTro¡¡ SrsrEMS Oxrv)

lWâshington PUD Association

s1,807-----

$992

Source.'WPUDA Source Book (Sepf 2019)

$4,OOO

$3,500

$3,OOO

$2,500

$2,OOO

$1,500

$1,OOO

$5oo

""$-""0N-ñ."";"*".""$-"ñ'*!ee"o"-*-.-os'*"c.g".iu5¡n"*ð*.."s

Median for suruey respondents

($7,450)

Benton PUD Projected 2079

($e04)

District below the median and average of Washington PUDs

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2A20 Budget Hearing - November 6,2019

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Dner SnnvIcE, ScnEDULE,

120!6 E2OII I2O1.O --AvÉAnnual

$ 5,0

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2020 Budget Hearing - November 6,20L9

Devs Cesn oN Hexn (RnsERVEs)

WPUDA' Sunvny - DncnrungR 2o7B (DtsrRIBurIo¡¡ SvsrEMS Owrv)

Currentforecast shows a two year drop in reserves with reserves levelin{, out and sllghtly rebuildin{ in 2022 Median for survey respondents (763) Benton PUD Projected 2079 (705)

lWashington PUD Association

• ñ

Source.' WPUDA Source Book (Sept 2019)

ag,o

350 300 250 200 150 100 50

• :::$.,{-"ç5*o

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Þ$ .*ù.- .

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Measures the number of days utility can cover its operatinS,expenses using unrestricted reserves and assuming no additional revenue I

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2020 Budget Hearing - November 6,2019

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CnexGE r\r Nnr AssETs

2o2o PnnrrMn{ARy Buncnr vs. 2o1g Orucnvdr BUDGET

1,,O64 1,O1,9

(8e8) 1,,408 340 56 (263r'

24,358 14,349

L0,055 2,065

71,450 30,557

L,237

2

72,5t4 3r,576

339

25,766 14,689

10,111, 1,,802 Revenues (less sales for resale) Expenses BPA Power & Transmission

Other Purchases & Services

Net Conservation Less: Sales for Resale

Net Power Supply Operations a nd Mai ntenance

Taxes Depreci a ti on/Amorti zati on

I nterest Expense/Other

Non-Power Expenses Net lncome Before Contributions

Ca pita I Contributions

Change in Net Assets (Net lncome)

nditures ital

Gross Ca Dollors in thoussnds

84,010ì 86,062ì

l2,O52l 2020 Preliminary Budget S141,163 i

20!9

Original Budget

Sreg,re+ i

lncrease/ (Decrease) 52,979

5t,42L

49,758'

1,663 5,732 2,364 3,368 Sz,sg¿ Sq,qzg S3,1os

itl,zgE. Srg,775ì (5z,4çzl

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x9?* 2020 Budget Hearing * November 6,2019

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ExpE,\TSE,S ANTD EXPE\TDITURES

l{nr Powøn Expnxsn

2020 Preliminary Budget Total Net Expenditures

$146.1 million*

• &M

L7.60/o

$25.8M

Taxes/Other Debt Service

4,2o/o

Net Capital

tO.60/o

$15.5M $6.2M

* /Vef of secondary market sales of $20.4 million, capital contributions of $1.7 million,

and Build America Bonds subsidy of $0.4 million 2020 Budget Hearing - November 6,20L9

$84.O M Supply

57.5o/o

et $14,7M

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Gnoss PowER SUpPLY CosT BY SouRcE

BPA Power 58.2o/o

Gross Power Supply

$104.4 million

BPA

Transmission

Ll.3o/o

Frederickson*

t7.2o/o

Ancillary Services

2,60/o

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* Gross cost excludes the estimated secondary market sales from Frederickson of $11.7 million.

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2020 Budget Hearing - November 6,20t9

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BUUGET AssuMPTIol{s

TNCLUDES BPA AnoprED Rtrns FoR 2o2o (nppncrIvg OcronER 7, zotg) BP-20 0.0%

!.5%

3.6o/o

$0.8M

I.2o/o

BPA Power & Transmission

Description Power - Base Power - FRP* Surcharge Transmission

As applied to Benton PUD

Annual $ lncrease

Ann ual % lncrease

*Financial Reserve Policy

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2020 Budget Hearing - November 6,20L9

2.85o/o

Benton PUD Total Block (Fixed)

L.48o/o

Slice (Variable) r.370/,

BUoGET ASSUMPTIO}TS

INCLIIDES BPA 2O2O WATNN FONNCAST

Type % Generation Received BPA Forecasted 2O2O

Annual Generation

9,500

I,t24

9,000

8,802

8,500 8,000 ,500 7,000 6,500 6,000

r BPA WY19 Study I BPA WY2O Study

=

(u

12,ooo

11,OOO 1_0,000

9,o00 7,000

6,O00

BPA Forecasted 2O2O Monthly Generation Shaping

Jan Feb

==

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Two Fqctors:

I ) Climqte

2) Court Ordered Spill

Net Cost lmpoct: $sOOk - $1.3M per yetlr

2020 Budget Hearing - November 6,2019

BUUGET ASSUMPTIO}TS

Powan Supprv Br RncuuroRY

r No BPA Cost Recovery Adjustment Clauses (CRACs)

r BPA Financial Reserve Policy Surcharge $580k

r Frederickson fixed cost recovery of 34o/o r Compliance with EIA renewable mandate

r Lïo/o mandate costs $3.2M in 2020 up from 9o/o or $2.6M in 2019

r No cap & trade or carbon tax policies r Power cost risk modeled at the 25th percentile

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2020 Budget Hearing - November 6,2019

2o2o PowER SUpPLY ScpNARIos

Budget (October Proiection) 25ü percentile = S84.0tl

October 2OLg Projection

(2020 Prel i m i na ry B udget)

25th percentile

. BPA power rates increased by 33% since 2Ot1, . lncludes BP-20 Adopted rates . Assumes future BPA increases of 4% every other year

20tg Original Budget

25th percentile

Sig

n ifica n t Un certa in ty

NET PowE,R COSTS+ç

20tg October Forecast

Worse than 5th percentile

a

_t__'$84.0

$83.6

$-85.4

• $8zo-

.a

a

$78.5 $.80.9 $80;f-

• 'c; -$80s
• .5'-'-'

$86.1

:l

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a

&77-2-

a a o

$73.8

P $75

3 szo 5 sos

$60 $55 $50 $45 $40

• $7-L9.

$

Better

t

$59-5 $46J-

,SrS"flordg"f ,Ëù"f

.FetS

"df"dP #rdÈ

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{-Actual --aF2O!9 Original Budget ' Ç ' Forecast

* Net powercosfs (NPC) = gross power cosfs (including power and transmission) tess sales for resale.

lr/PC ís þased on the 25th percentitefor 2020 and the 50th percentilefor 2021-2024

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2020 Budget Hearing - November 6,20t9

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FuruRE UxcERTAIltrY

POwgn MaRKE,T VOLqTILITY

. Concerns for resource adequacy in the future . Changing electricity supply mix over the next five years and beyond

. Planned. retirements of about 5,ooo MW of dispatchable generationl (coal)

. New resources being installed are variable energy resources (wind and solar)

. Do not provide same amount of effective capacity for resource adequacy purposes

. BPA continues to face cost pressures . Beginning to bend the cost curve . Increasing participation in California Power Markets . Increase chance of power market price volatility . Experienced in summer and winter peak periods the previous two years

• 1. Source: Northwest Power Pool, "Exploring a Resource Adequacy Program for the Pacific Northwest"

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2020 Budget Hearing - November 6,2019

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|to\T-PowER Cosrs

2o2o ltünr CapITAL

Net Capital:

$1S.S million*

• &M

L7.60/o

Taxes/Other

LO.L%

Debt Service

4.2o/o

* Capital is net of $1.8 million of capital contributions

Net Capital

LO.60/o

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2020 Budget Hearing - November 6,2019

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CeprrAL PrexNI¡{c

Capital plonning fo, distribution system irnprot)ements is driuen bA our strategic objectiue to prouide cornpetitíue, reliable and efficient deliuerA s7stems

• Planning Criteria Includes:

. Ensure reliable electric service . Normal and contingency conditions

. Accommodate load growth

. Ensure we are not overloading equipment . Ensure public and worker safety

• Enterprise Risk Management

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2020 Budget Hearing * November 6,2019

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CApITAL Pt¿¡ultING (co¡vrn¡unn)

.Other Factors Influencing Capital Planning:

. Material and technology improvements

. Long equipment lead times . Life cycle costing

. \TIMBY perspectives (not in my back yard)

'Customer growth .Increasing reliability expectations (zr" Century Grid)

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2020 Budget Hearing - November 6,20L9

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2o2o C,IpITAL PnoJEcTs

(E

REffOfl

ä.4.0

Trammission / substat¡on suhota¡

Tra n smis s ion Line - Phillips to Spa w (Multiple Yea r Project)

Hedges 1l-5 kV Meteri ng Point Switch Upgra de/Additions

Tra n s m i s s i o n i m p rove me nts ( Po I es, Fi xtu re s, etc.)

Distribution Subtotal Customer Growth Southri dge Substation

Pla nt Ma ¡ ntena nce for conti nued Operations

Cable - Repair& Replacement {Mult¡ple Year Project) Capacity & Relia bility - Substations

Other- Repair & Replace (lncludes JU NESCCompliance program)

Southri dge Substation Feeder Getaways Distrí bution System I mprovements

ca pa city & Re I ia bil ¡ty - SCADA

Overhead Al locations &Anticipated CarryOver

lnf ormation Technology Subtotal

Network I nfra structu re Operationa I Technol ogy Enterprise Applications, and Data Analytics

General Plant Subtotal

Li ne Truck Replacements (Prosser)

Doble Relaylest Set

Tra ns portati on Equi pment (Locator Truck)

Communication Equipment / 800 MHz Radios

Facil ities improvements a nd replacements Othe r - tra nsforme r & mete r s hop equ ipme nt Broadband Subtotal Adva nced Wi reless/Sma I I Cell Custome r Con necti ons (Mu I ti -te na nt, I i ne exte ns i ons) Backbone and Laterals Electronics and other Sszo 253 204 L48

15

5t2,792 4,533

2,O77

!,77t

1,500 878 745 547 s36 263 (s8) s1,158 776 213

t69 $szr

340 55 40 40 39

to7

815 700 217 369

2020 Capital Projects

Gross Capital SL7,29z

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SuesrATror{s & DrsrRIBUTIol{ ( $ L2. BM)

Rnrresrr,rry AT "EDGES" oF DISTRIBUTIoN sysrEM [$r.8M]

/ CusrovrER GRo\ rru [$+.gM]

r UNonnçRouND cABLE REpr-acEMENT [$r.SM]

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2020 Budget Hearing - November 6,20L9

SOUTHRIDGE SUBSTATION +$4M Total

2O2O Budget: $2.6M

ITIEw SUSSTATIOI\

+

Tn txsMlsslol.{ RpIIABILITY IrnPRovEMEI{T PnoJE cTs

2o2o OpnRATIolts & MaINTE\TAI\ucE (O&M)

Net Power Supply

57.5o/o

• &M:

$25.8 million

• &M

17.60/o

Taxes/Other to.!o/o Net Capital

LO.60/o

Debt Service

4.2o/o

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2020 Budget Hearing - November 6,20L9

• 6,8%

7s% 12s%

4.4% 3.L%

ss%

Operating Expenses Transmission Operation & Ma intena nce Distribution Operation & Maintenance

Broa d ba nd Expe ns e

Customer Accounting & Collections Admi nistrative & Gene ra I

s164 11,327 L,070 4,915

Stto

10,500 948 4,707 (s12) 827 122 208 232 732

7 7

ncreased costs tied to increased revenues

(s1,o7o) (ss+s¡

Stzz

Less: Broadband Less: Leap year additional labor Less: Shift of labor, overtime, and benefits from capitalto O&M Less: Move non-barg merit from July Lst backto April 1st

Less:Expanded/change of scope, reliability, and safetyenhancements in 2020 Budget Move to subscription based sofitware (previouslycapitalized and depreciated) Overtime increased for historical experience on callouts related to public safety Ability to ha ndle to ma jor outage phone traffic (eliminate busy signa l) s

(

7) 5 TT4

218 liance - Public Sa

NESC Com

3

(Srra¡

(21_8)

(s7) (12e) (s7) (46)

(rzs)

(s7) (46l'

OppRATror{s & MarNTEl{ANTcE

Dollars in thousonds Subtotal before NESC Compliance - Public Safety Total Operating & Maintenance Costs

Total Electric O&M Total O&M with Adiustments

Szs,zog 523,832 it,gll

s.B%

s25,766 $24,358 s1,408 5.8% 524,696 523,4Lo 51,286 s24.04s s23,410 s63s 2.7%

2020 Preliminary

B

20L9 Original lncrease/ (Decrease)

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Change

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2020 Budget Hearing - November 6, 20L9

OpERATIolts AltD MeINTEltAltcE

$650 $600 $550 $500

• .t481

$450 $400 $350

$360

$300 O&M(l) Cost per Customer - APPA(2) Benchmark

_$_58_4_ --- $567

$561 $542

$a80---5a79 --- $4

$462 $456

$467----

• $431-

$458

$3e5 $40o

$3e8

S378---$ga1

$366

$348 $s+s

$411 $445 $451 $451

$_433

$3eo

2009 20LO 20L1, 20L2 20L3 20t4 20L5 20L6 20L7 20L8 20L9 2020

Budget Budget

f$t¿tsd Year Benton PUD Dollars -I-Benchmark - APPA +¡Benton PUD 2O2O Constant Dollars

(t) OAM = non-power operøiíons & moìnlenance cosl (dislribvtion, fronsmission, cuslomer occounfs, and sdminislrolive ond

generol). Excludes Broadbond.

(2) Americøn Public Power Associofion - 2Ol7 medion for West u¡ili¡ies.

¡i¡ tnttorion rate ulilìzed comes from ø prodvcer price index Íor eleclrìc utilìIies, which on averdgehos been slightly under 3o/o

O8,ulú Cosf per Cusfomer hos declined sf¡er

factoríng ín the effects of ínflatíon(s) Benton PUD confÍnues fo be below APPA benchmq,rk

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2020 Budget Hearing - November 6,20L9

DrsTRrBUTro\r O&M

$11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000

Distribution O&M(l) Cost per Circuit Line Mile - APPA(2) Benchmark

$e,683 $8,372 $7,064 $6,232

$,6,33G $7,L71" $7,L2

• -$o 576

$

$6;328 S6;432 $5,990 $5,985 $6,111 6,2L3 $5,987 $6,066 $6,265

• $5,446--$5;ij-så- -$Þ,-8-41--$5.255

s4,699

$5,132 $4,gr7

$5,2L7

s4ÍS3-$4506--

2009 20LO 20LL 20L2 20L3 20L4 20L5 20L6 20L7 20L8 20L9 2020

Budget Bu

+Stated Year Benton PUD Dollars {DBenchmark - APPA +¡Benton PUD 2O2O Constant Dollars

(l) Disrribution O&lll only. Exclqdes Broodbond.

(2) Americon Public Power Associofíon - 2OI7 medion lor West ufifi'fies. (3) lnflolion rote uÍìlized cornes from s producer prìce índex for eleclrìc uiìlìties, whích on dveroge hos been slìghtly Benion PUD

confínues fo be

below APPA

benchmork Díslriloutíon O&M Cosl per Círcuí¡ Lìne Míle hos remoíned Ílsl after foclorìng în lhe effecfs of infla¡ìon(3)

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2020 Budget Hearing - November 6,2019

under 3o/o

AUTHoRIZED SreFFIltG

FullTime uivalent Positio

5

(1.00 1.00 (1.00) (1.00) (1.10) 10.00

1_4.00

26.25 64.50 18.00 25.25 (1.10) 10.00

1.4.OO

26.25 63.50 18.00 24.25

Less: FTEs utilized by other local utilities

Customer Programs & Services

Remove - Ma nager of Customer Engagement (Restructured depa rtment)

Operations revious bud included in

Remove -

rentice inadvertentl rentice moved to Journ Additiona I

n

Executive / HR / Communications Finance & Business Services

Engi neeri ng/Power Ma na gement

Operations

I nformati on Tech nol ogy

Customer Programs & Services Directorate

2O2O Staffing Plan

2OL9 Staffing Plan Increase/ (Decrease

Authorized Positions 1s6.00 1s8.00

(2.00)

Authorized Positions

154.90 156.90 (2.00)

Net lncrease/ Decrease) in FTE's

(2.00)

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2020 Budget Hearing - November 6,20L9

CusToMERs PER DtsrRIcT EUPLoYEE

55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000

Actual,annual average for years 2009-2020

300 200 100

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Actual Budget

Definition of Customer per American Public Power Association

Note: -Average customer figures have been restated to óe consistent with method used by new enterprise system.

• FTE figures have been restated and now inctude a reduction for the FTEs shared and paid for by other

utitities """':;:ffi'r"",*ffi;"TuTiî*'"'""" @

400

• CL

E t¡l

¡.

• cl

9,

• E
• ù.
• =
• 9,
• E
• +.

ÎD

ã

• CD

aú

• Attrition

NOT

included in 2O2O budget

154 JíZ- - 150--15L - J-52* 752--*753

/l Âo

4Ât

9¿rOr¡1,

339 '342

:r___-

1

5

48,309

• h?-.--T-

158

4^4

{55

1

¡1,,14,t 53,7 2t14 50,746

329 l.28 , 334

• 322

I I

l

• -'

Electric Customers

(12.5o/o increase)

Customers per Employee (193% increase)

FTE Employees (5.7% decrease)

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• o.2%

5

4.5%

• .o%

42.9%

3

75

L4,5!3 745 s3se

57 2.8% 8.3% 688 1.4,124

Life I ns u ra nce

Short Term Disability Admin Fee Change in Personal Leave / Other

69 72 250

3

L75 Payroll

Regular Labor- Salaries and Wages Overtime Wases

Payroll Taxes & EmployeeBenefits

Soci a I Se cu rity

Med ica re

State I ndustria l/Unempl oyme nt Washington State Sick Leave

Publ ic Employee Reti rement System

1

Defe rred Compensati on Match ss2s 221 L54 22

l_,908 281'

272 ssoL 2L5 153 22 1,839 272 2.7% 2.9%

• .6%

2.6% 3.7% 3.2%

• t.9o/o

I

24 68 s 6

T T

ntri butions

L,qeoR & BExEFITS

Dollors in thousands

B

• /

/o

Change

lncrease/ (Decrease) 2020 Preliminary Budget

20t9

Original

$2.70

24.Oo/o

22.OoÁ

20.Oo/o L8.Oo/o L6,Oo/o L4.Oo/o L2.Oo/o tO.Qo/o 8.Oo/o 6.Oo/o 4.Oo/o 2.Oo/o

O.Oo/o

$2.40 $2.10

• $

1-. 88 - -$ 1-. $8 - -$ 1-' e1- - 51-.-e1

ø

c Ê Ø

$1.80

• $a.66--$l-66

$1.50 $1.20 $0.90 $0.60 $0.30

$-

$r-32__ $1.23

L2.T Oo/o L2.T Oo/o L2.86o/o $_1.o8__

8$O

• 2fÁ- 9 -2Le/o - - - - - - - - -

L1-.L8o/o

7.25o/o 7.2Lo/o 5.29o/o 5.3to/o

2008 2009 20LO 20t1, 20L2 20L3 20L4 20L5 20L6 20t7 20L8 20L9 2020

ffi¡¡ualized PERS Cost Stated in Current Dollars *Employer Contribution Rate

PERS Pfans 7,,2, &3 7.92o/o

Normal Cost

4.760/o

Plan l UAAL Total Employer Rate

12.680/o

2020 Employer Contribution Rates

PERSl

7.9Oo/o

Plan 2 Members 2O2O Employee Contribution Rates

2O2O PNPLIMI}TARY BUOGE,T

Pt¡nrtc EltttproyEE RnrtnEMEr{T Svsrnlw - EruproyER CoxrnIBLrrIor{

• PERS employer contributíon rate is 72'86%'in 2O2O
• Annualízed PERS cost included in chart rs based on current labor multiplied by the annual employer rate
• Rate chan$es, when implemented, are $enerally effective July 7
• l. Ptan 7 members' contribution rate is statutorily set at 6.O0/o, Members in Ptan 3 make contributionsto a defíned contribution plan.

I

2020 Budget Hearing - November 6,2019

2o2o ExpEI{DITURES

Dnnr/Taxns/Orrunn

Net Power Supply 57.5% Taxes/Other

LO.lo/o

Debt Service

4.2o/o

* Debt is net of $0.4 million Build America Bonds subsidy

DebUTaxes/Othen $20.8 million*

• &M

17,60/o

Net Capital

tO.60/o

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2020 Budget Hearing - November 6,2019

2o2o Du,gr SEnvIcE, TexEs, A\TD OrnER

56 s34o 65 190 94 10,055

5t4pqs

2,L50 3,750 (4s4)

lO,lLL

S14,689

2,2L5 3,940

(360) Non-Cash Expenses

De p re ci a ti o n/Am o rti za ti o n

Other Expenditures:

Ta xes

lnterest Expense *

De bt Se rvice Principa I

Debt Premium & Expense Amortization

2020 Preliminary Budget 20L9 Original Budget lncrease/ (Decrease) Dollars in thousands Total Other Expenditures Total Non-Cash Expenses Szo,agq

519,795 i

s6Se

S10,1tt Sto,oss

5so

* lnterest expense is net of the Build America Bonds federal subsidy of 50.¿ million and

includes 5q0,000 annuol fee on Line of Credit

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ffi¡ ilmñ 2020 Budget Hearing - November 6,20L9

2o2o lrTnr BnoADBANTD Cesn Frow

7.ú/"

l-,353

Net Capital

103

1,465 1,353 1,568

2,O27

674

49.896

Net lncome

1

• 5.0%

N/A N/A 93%

• 12.9%

(68) 816 (74) S22s

(r22) 52,4!3

(s48)

1,,285

816 (74) s2,638 (1,070) Revenue

Operating Expenses Base Ca pita I

Sma ll Cell

Capital Contributions

Tota I Broadba nd Cash lnf low/(Outf low)

($4se) s112

($szr¡

• 509.8%

Dollars ín thousonds lncrease/ (Decrease) 20L9 Original Budget 2020 Preliminary Budget

• /

/o

Change Five Year Rolling Net Cash Test $z.rrvr $0.¿nn Future 5 Years (2020-20241 Previous 5 Years

(20L6-202ol Broadband Cash (Outflor) Through 2010:

(S12.eM) ($s.zrtn¡

W¡th

Without

NoaNet

NoaNet Assessments / Assessments /

Su

I

Broadband Cash lnflow zOLl. - Proiected 2019:

s¡.rn¡

sr.srvr L) Summary does not include depreciotion

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2020 Budget Hearing - November 6, 2019

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BETJTOfl

SUUMARY & Nnxr SrEPs

I

Kpy QunsrroNTs

Does budget provide or demonstrate:

L Resources to maintain our system and provide for growth in

• ur communities?
• 2. Resources to address key strategic challenges?
• 3. Good fiscal stewardship of our customers' assets through

sound financial planning and policies?

• 4. A long-term view to maintain or improve:

r System reliability? r Competitive retail rates? r Customer satisfaction?

• f

r¡G

2020 Budget Hearing - November 6,2019

@

Npxr SrEPs

Noveueen 6

. Public Hearing . Open public comment period

NoveuBER 12 & 26

. Commission meeting . Review customer comments . Review budget updates (if applicable) . Public Comment period closed (Nov. 26)

DecervlBER 10

. Review customer comments . Consider Adoption of 2020 Budget

8EffiON

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2020 Budget Hearing - November 6,2019

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• CouMIssIoI\tER

aun sTIoI\ts & CouMnltrs

a

CUSToMER

aUESTIoNTS & CouMnltrs

Eruo OF

PnESENTATION

2020 Budget Hearing - November 6, 2019

@