UDWIREMC 2018 Key Ratio Trend Analysis Brian Stavish Regional Vice - PowerPoint PPT Presentation

UDWIREMC 2018 Key Ratio Trend Analysis Brian Stavish Regional Vice President September 23, 2019

CFC’s KRTA  Developed by CFC in 1975  A statistical look at your cooperative  Allows a comparison to other cooperatives  Shows trends  Can help identify areas of strength and areas that may be improved  A good board and management tool

2018 KRTA Theme  Slow Customer Growth Across the Country  KWH Sales Increased 6.49% Across the USA  Strong Financial Performance by Cooperatives  Power Cost Stabilizes  Debt Cost Continues to Decrease

10.0 12.0 14.0 16.0 -6.0 -4.0 -2.0 State 2018 vs 2017 Growth in kWh Sales by 0.0 2.0 4.0 6.0 8.0 TEXAS MISSOURI ARKANSAS DE/MD/VA TENNESSEE 2018 OKLAHOMA KENTUCKY SOUTH CAROLINA ALABAMA 2017 INDIANA MISSISSIPPI LOUISIANA NORTH CAROLINA OHIO/WV 6.49 (US MEDIAN 2018) ILLINOIS GEORGIA KANSAS SOUTH DAKOTA NJ/PA WISCONSIN IOWA UTAH MICHIGAN MINNESOTA FLORIDA COLORADO -1.02 (US MEDIAN 2017) ME/NH/NY/RI/VT ARIZONA NEW MEXICO NORTH DAKOTA WYOMING MONTANA CA/NV IDAHO AK/HI NEBRASKA WASHINGTON OREGON

Key Industry Ratios  Annual Growth in Number of Consumers (%) – Ratio 115  Average Residential Usage Kwh per Month – Ratio 61  Power Cost – Ratio 88

National Growth Trends –KRTA #115 Annual % Growth in Number of Consumers 3.00 2.50 2.00 1.50 1.00 0.50 0.00 1997 98 99 2000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 -0.50 -1.00 UDWIREMC US Median 6

National Growth Trends – KRTA #61 Residential Kwh Monthly Usage 1,300.00 1,200.00 1,100.00 1,000.00 900.00 UDWIREMC US Median 7

National Trends – KRTA #88 Power Costs 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 1997 98 99 2000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 UDWIREMC US Median 8

UDWIREMC’s 2018 Ratios  Let’s take a look at some key ratios for UDWIREMC.

Key Financial Ratios  Modified Debt Service Coverage (MDSC) -Ratio 10 – Coop’s ability to repay principal and interest – CFC’s requirement is 1.35  Equity as a percent of total assets – Ratio 16 – Ability/willingness to finance plant w/o bank debt – RUS requirement 30%, CFC requirement of 20%

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Key Expense Ratios  Power Cost – Ratio 88 & 90  Depreciation & Amortization – Ratio 96  Salary Cost – Ratio 113  Interest on Long-term Debt – Ratio 23  These 4 categories total approximately 85% of Total Cost of Electric Service

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Other Key Ratios  Total Consumers Served – Ratio 1  Total Kwh Sold – Ratio 2  Total Miles of Line – Ratio 5  Annual Capital Credits Retired (%) – Ratio 24  Cumulative Capital Credits Retired (%) – Ratio 26  Residential Revenue Per Kwh Sold (mills) – Ratio 38  Residential Kwh Sales Per Total Kwh Sales (%) – Ratio 69  Total Controllable Expense per Consumer ($) – Ratio 87  Average Service Availability Index – Ratio 145

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