natural gas rate study and long-term financial plan presented november 19, 2013 capex consulting...

Natural Gas Rate Study

and Long-Term Financial PlanPresented

November 19, 2013

Capex Consulting Group

Email: [email protected]

Web site: www.capexconsulting.com

Falfurrias Utility Board Falfurrias, Texas

mailto:[email protected]

http://www.capexconsulting.com/

Seven Year Financial Performance

Page: 2

FALFURRIAS UTILITY BOARDUTILITY COST OF SERVICE AND RATE DESIGN STUDYSUMMARY OF REVENUES & EXPENDITURES

NATURAL GAS

2007 Adj. Budget

2008 Adj. Budget

2009 Adj. Budget

2010 Adj. Budget

2011 Adj. Budget

2012 Adj. Budget

2013 Adj. Budget

AVG. ANNUAL GROWTH 2007 - 13

OPERATING REVENUENatural Gas Sales $797,692 $838,568 $725,465 $822,278 $709,548 $851,000 $845,000 0.96%Total Other Charges for Services $18,736 $24,247 $17,831 $39,202 $51,527 $19,555 $16,750 -1.85%Total Non-Operating Revenue $207,026 $25,941 $19,130 $7,798 $10,119 $5,235 $3,450 -49.46%Total Operating Revenues $1,023,454 $888,756 $762,427 $869,277 $771,195 $875,790 $865,200 -2.76%OPERATING EXPENSES NATURAL GAS $886,649 $839,113 $709,432 $824,951 $832,993 $783,830 $708,575 -3.7%Operating Income (Loss) $136,805 $49,643 $52,995 $44,327 -$61,798 $91,960 $156,626 2.28%

Operating Expenses Trends

Page: 3

FALFURRIAS UTILITY BOARDUTILITY COST OF SERVICE AND RATE DESIGN STUDYSUMMARY OF REVENUES & EXPENDITURESNATURAL GAS

2007 Adj. Budget

2008 Adj. Budget

2009 Adj. Budget

2010 Adj. Budget

2011 Adj. Budget

2012 Adj. Budget

2013 Adj. Budget

AVG. ANNUAL GROWTH 2007 - 13

Total Operating Revenues $1,023,454 $888,756 $762,427 $869,277 $771,195 $875,790 $865,200 -2.8%Labor & BenefitsTotal $187,675 $216,483 $196,803 $244,826 $244,908 $254,150 $221,650 2.8%Operations & Maintenance

Cost of Product $464,088 $500,380 $320,494 $343,452 $261,549 $220,000 $170,000 -15.4%Repairs & Maintenance $168,704 $53,245 $116,840 $156,614 $243,920 $214,000 $214,000 4.0%Vehicles Gas & Maintenance $9,640 $11,828 $11,232 $9,333 $13,929 $14,200 $16,000 8.8%Office Supplies -- Non-Dept. $3,733 $4,557 $4,467 $4,417 $3,989 $4,350 $4,200 2.0%Office Expense -- Non-Dept. $10,929 $8,658 $11,766 $12,188 $9,952 $11,280 $14,520 4.8%Legal & Accounting -- Non-Dept. $5,719 $4,176 $751 $5,580 $6,710 $8,190 $10,500 10.7%Prof. Legal Services -- Non-Dept. $2,976 $8,435 $11,666 $3,416 $17,312 $17,475 $14,400 30.1%Ins. (TML) Liability Prop. W/C $4,634 $0 $0 $191 $2,989 $6,300 $10,500 14.6%Safety Depart. Expense $0 $0 $0 $2,256 $3,200 $3,600 $3,480

GRAND TOTAL $886,649 $839,113 $709,432 $824,951 $832,993 $783,830 $708,575 -3.7%

Key Metrics by Customer Class

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TABLE I-4FALFURRIAS UTILITY BOARD2012-13 COST OF SERVICE AND RATE DESIGN STUDYKEY METRICS BY CUSTOMER CLASS

Customer Class

Ttl Consumpt -

CCF

Billed Revenue

Avg. No. of Accts

Avg Cons/Acct -

CCF

Avg Revenue

per Account

Avg Revenue per CCF

FY 2007 432,304 $894,816 1,263 29 $59 $2.07

FY 2008 394,467 $835,946 1,229 27 $57 $2.12

FY 2009 336,296 $712,877 1,190 24 $50 $2.12

FY 2010 388,922 $827,386 1,163 28 $59 $2.13

FY 2011 366,449 $815,923 1,141 27 $60 $2.23

FY 2012 384,694 $829,789 1,136 28 $61 $2.16

Avg Grth Rate -2.31% -1.50% -2.09% -0.22% 0.61% 0.83%

Avg Cons/Acct 27

ALL CUSTOMER CLASSES

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TABLE I-4FALFURRIAS UTILITY BOARD2012-13 COST OF SERVICE AND RATE DESIGN STUDYKEY METRICS BY CUSTOMER CLASS

Customer Class

Ttl Consumpt -

CCF

Billed Revenue

Avg. No. of Accts

Avg Cons/Acct -

CCF

Avg Revenue

per Account

Avg Revenue per CCF

Ttl Consumpt -

CCF

Billed Revenue

Avg. No. of Accts

Avg Cons/Acct -

CCF

Avg Revenue

per Account

Avg Revenue per CCF

FY 2007 261,268 $514,368 1,196 18 $35.83 $1.97 114,715 $220,147 48 199 $382 $1.92

FY 2008 229,448 $450,166 1,167 16 $32.16 $1.96 105,578 $195,304 49 179 $330 $1.85

FY 2009 206,658 $426,661 1,131 15 $31.45 $2.06 86,380 $166,282 47 154 $296 $1.93

FY 2010 233,499 $476,723 1,106 18 $35.91 $2.04 96,021 $183,138 43 185 $354 $1.91

FY 2011 194,488 $399,462 1,086 15 $30.65 $2.05 86,303 $165,299 42 173 $332 $1.92

FY 2012 181,341 $374,283 1,081 14 $28.85 $2.06 123,695 $234,422 41 250 $475 $1.90

Avg Grth Rate -7.04% -6.16% -2.00% -5.14% -4.24% 0.95% 1.52% 1.26% -3.06% 4.72% 4.46% -0.25%

Avg Cons/Acct 16 190

Customer Class

Ttl Consumpt -

CCF

Billed Revenue

Avg. No. of Accts

Avg Cons/Acct -

CCF

Avg Revenue

per Account

Avg Revenue per CCF

Ttl Consumpt -

CCF

Billed Revenue

Avg. No. of Accts

Avg Cons/Acct -

CCF

Avg Revenue

per Account

Avg Revenue per CCF

FY 2008 23,330 $64,054 0 5,833 $16,014 $2.75 0 $0 0 0 $0 $0.00

FY 2009 40,792 $113,269 1 3,399 $9,439 $2.78 0 $0 0 0 $0 $0.00

FY 2010 55,977 $158,378 1 4,665 $13,198 $2.83 0 $0 0 0 $0 $0.00

FY 2011 81,381 $239,413 1 6,782 $19,951 $2.94 0 $0 0 0 $0 $0.00

FY 2012 75,115 $208,287 1 6,260 $17,357 $2.77 0 $0 0 0 $0 $0.00

Avg Grth Rate 22.57% 22.51% 0.00% 22.57% 22.51% -0.05% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Avg Cons/Acct 5,276 0

Residential ICL

Detention Center

Commercial ICL

CC7

History of Gas Purchases and Sales

Page: 6

TABLE II-7FALFURRIAS UTILITY BOARDNATURAL GAS SYSTEM ACTIVITY

Wholesale Natural Gas Purchases -

MCF

Avg. MMBTU per

MCF


MMBTU

Retail Natural Gas

Sales - MMBTUs

Retail Natural Gas Sales - MCF

Percent of Wholesale

MMBTUs Sold at Retail

FY 2009 46,193 1.0452 48,281 35,150 33,630 73%FY 2010 49,494 1.0233 50,649 39,800 38,892 79%FY 2011 44,484 1.0031 44,622 36,759 36,645 82%FY 2012 41,930 0.9937 41,664 38,225 38,469 92%AVERAGE 30,350.2 1.0163 30,869.4 37,483.4 36,909 81%AVG. ANNUAL GROWTH RATE

-3.2% -1.7% -4.8% 2.8% 4.6% #NUM!

Advantages of Therm Billing

Page: 7

• The energy factor of the natural gas is derived from the corresponding monthly statement provided by the City’s wholesale natural gas supplier

• By billing in therms, FUB’s natural gas customers will pay for the heating value of their natural gas, not the volume of gas used

• Losses should be reduced as a result of the conversion

Cost of Unsold / Unaccounted Gas

Page: 8



MMBTU

Retail Natural Gas

Sales - MMBTUs

Total Paid for Wholesale

Gas

Avg. Wholesale Cost per MMBTU

Annual Value of Unsold Gas

FY 2009 48,281 35,150 $295,303 $6.12 $80,315FY 2010 50,649 39,800 $341,300 $6.74 $73,108FY 2011 44,622 36,759 $261,240 $5.85 $46,036FY 2012 41,664 38,225 $159,496 $3.83 $13,164AVERAGE 30,869.4 37,483.4 $264,335 $5.63 $53,156AVG. ANNUAL GROWTH RATE

-4.8% 2.8% -18.6% -14.5% -45.3%

History of Account Growth

Page: 9

TABLE II-1FALFURRIAS UTILITY BOARD

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012Jan. - Sept. 2013

NATURAL GASResidential ICL 1,196 1,167 1,131 1,106 1,086 1,081 1,066 -1.9% (22) Residential OCL 5 4 3 4 3 3 3 -4.4% (0) Commercial ICL 48 49 47 43 42 41 40 -2.9% (1) Commercial OCL 2 2 1 2 3 3 3 7.0% 0 Detention Center 0 0 1 1 1 1 1 0 City (RC 9) 12 7 7 7 7 7 6 -10.2% (1) SYSTEM TOTAL 1,263 1,229 1,190 1,163 1,141 1,136 1,120 -2.0% (24) Annual Rate of Increase -2.7% -3.1% -2.3% -1.9% -0.4% -1.4%

ACCOUNTS BY CUSTOMER CLASSANNUAL AVERAGE Average

Annual Rate of Growth

2007-2013

Average No. of New

Accts per Annum

Page: 10

FALFURRIAS UTILITY BOARDREVENUE TO DEMAND COMPARISON BY CUSTOMER CLASS

NATURAL GAS

Customer Class

FY 2012 Billed Revenue - Net of Wholesale

Gas Purchases

FY 2012 Natural Gas

Volume Delivered

% Billed Revenue to

Total

% Billed Usage to

Total

Residential ICL $302,342 18,134,100 45.1% 47.1%Residential OCL $1,040 42,500 0.2% 0.1%Commercial ICL $189,363 12,369,500 28.3% 32.2%Commercial OCL $9,298 399,800 1.4% 1.0%Detention Center $168,252 7,511,500 25.1% 19.5%City (RC 9) $0 12,000 0.0% 0.0%Total $670,293 38,469,400 100% 100.0%

Average Cost of Delivered MMBTU, net of Wholesale Gas Cost

Page: 11


Retail Natural Gas

Sales - MMBTUs

Operating Budget Net of

Gas Purchases

Net Operating Costs per Delivered MMBTU

FY 2009 35,150 $388,938 $11.07FY 2010 39,800 $481,499 $12.10FY 2011 36,759 $571,444 $15.55FY 2012 38,225 $563,830 $14.75

FUB - Current Retail Natural Gas Rate Structure

Page: 12

FALFURRIAS UTILITY BOARD

CURRENT NATURAL GAS RATE STRUCTURE - INCLUDES WHOLESALE GAS

Residential ICL

Residential OCL

Commercial ICL

Commercial OCL

Detention Center City (RC 9)

Min. Charge $11.67 $17.51 $11.67 $17.51 $17.51 $0.00Volumetric Rate - per CCF

0.0 3.0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.003.0 6.0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.006.0 10.0 $1.945 $2.918 $1.945 $2.918 $2.918 $0.000

10.0 15.0 $1.945 $2.918 $1.945 $2.918 $2.918 $0.00015.0 20.0 $1.945 $2.918 $1.945 $2.918 $2.918 $0.00020.0 30.0 $1.945 $2.918 $1.945 $2.918 $2.918 $0.00030.0 50.0 $1.945 $2.918 $1.945 $2.918 $2.918 $0.00050.0 100.0 $1.945 $2.918 $1.945 $2.918 $2.918 $0.000

100.0 200.0 $1.945 $2.918 $1.945 $2.918 $2.918 $0.000200.0 Greater $1.845 $2.768 $1.845 $2.768 $2.768 $0.000

Residential Natural Gas Rate Comparison Usage = 10 CCF

Page: 13

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Current Residential Natural Gas Bill @ 10 CCF, Net of Wholesale Gas Costs

Commercial Natural Gas Rate Comparison Usage = 200 CCF

Page: 14

$173.66

$296.11

$0

$50

$100

$150

$200

$250

$300

$350

Current Commercial Natural Gas Bill

@ 200 CCF

Forecast Net Revenue Required from Rates

Page: 15

FALFURRIAS UTILITY BOARDFORECAST NET REVENUE REQUIREMENT

Debt Service & Reserves

Sub TotalLess Non

Rate Revenues

NGAS SYSTEM - FYE Value % Increase Value % Increase Value

% Increas

e

2013 $538,575 $65,000 $0 $603,575 -$20,200 $583,3752014 $553,611 2.8% $67,275 3.5% $0 $620,886 -$18,801 $602,084 3.2%2015 $573,412 3.6% $69,630 3.5% $0 $643,042 -$19,056 $623,986 3.6%2016 $593,046 3.4% $72,067 3.5% $0 $665,113 -$19,315 $645,798 3.5%2017 $612,575 3.3% $74,589 3.5% $0 $687,164 -$19,578 $667,586 3.4%2018 $632,091 3.2% $76,827 3.0% $0 $708,918 -$19,845 $689,074 3.2%2019 $651,576 3.1% $79,131 3.0% $0 $730,708 -$20,115 $710,593 3.1%2020 $671,668 3.1% $81,505 3.0% $0 $753,174 -$20,390 $732,784 3.1%2021 $692,387 3.1% $83,951 3.0% $0 $776,337 -$20,669 $755,668 3.1%2022 $713,751 3.1% $86,469 3.0% $0 $800,220 -$20,952 $779,268 3.1%2023 $735,782 3.1% $89,063 3.0% $0 $824,845 -$21,239 $803,606 3.1%

Cap OutlaysNet Revenue Required

from RatesPersonnel & O&M

Forecast Cash Flow under Current Rates

Page: 16

FALFURRIAS UTILITY BOARDCASH FLOW SUMMARY-NATURAL GAS

2013 2014 2015 2016 2017 2018

Natural Gas Consumpt. Scenario Average Average Average Average Average Average

Price of Purchased Gas - MMBTU $4.64 $4.64 $4.74 $4.84 $4.94 $5.00Rate Rev - Base $156,448 $158,097 $159,759 $161,434 $163,123 $164,824

Rate Rev - Volumetric & Purchased $580,347 $583,420 $586,510 $589,616 $592,738 $595,877

Non-Rate Revenues $20,200 $18,801 $19,056 $19,315 $19,578 $19,845

TOTAL REVENUES $756,995 $760,318 $765,325 $770,365 $775,439 $780,546

O&M, Net of Depr. & Purchased Gas $538,575 $553,648 $573,488 $593,161 $612,778 $632,338

Purchased Gas $179,172 $180,121 $184,977 $189,880 $194,830 $198,240

TOTAL EXPENSES $717,747 $733,769 $758,465 $783,042 $807,608 $830,578Net Rev. Avail. For Debt Svc. $39,248 $26,549 $6,860 ($12,676) ($32,169) ($50,032)

CASH FOR CAPITAL OUTLAYS $39,248 $26,549 $6,860 ($12,676) ($32,169) ($50,032)

Total Capital Outlays $65,000 $67,275 $69,630 $72,067 $74,589 $76,827FY END BALANCE ($25,752) ($40,726) ($62,770) ($84,743) ($106,758) ($126,859)

FYEFYE

Proposed Gas Rates: Residential ICL

Page: 17

FALFURRIAS UTILITY BOARDPROPOSED RATES: Residential ICLNO. ACCOUNTS 1,066AVERAGE CONSUMPTION - CCF 15.44

Minimum Charge 01/01/13 01/01/14 01/01/15 01/02/16 01/01/17 01/01/18Avg Annual

Increase

Standard Connection $11.67 $12.42 $13.27 $14.22 $15.27 $16.42 7.1%

Consumption Charge - Per Therm

0 3 $0.00 $0.00 $0.68 $0.89 $1.06 $1.80

3 6 $0.00 $0.71 $0.75 $1.02 $1.63 $1.80

6 10 $1.95 $1.94 $1.88 $1.83 $1.81 $1.80 -1.5%

10 15 $1.95 $1.94 $1.88 $1.83 $1.81 $1.80 -1.5%

15 20 $1.95 $1.94 $1.88 $1.83 $1.81 $1.80 -1.5%

20 30 $1.95 $1.94 $1.91 $1.86 $1.84 $1.84 -1.1%

30 50 $1.95 $1.94 $1.91 $1.86 $1.84 $1.84 -1.1%

50 100 $1.95 $1.94 $1.91 $1.86 $1.84 $1.84 -1.1%

100 200 $1.95 $1.94 $1.91 $1.86 $1.84 $1.84 -1.1%

200 Greater $1.85 $1.94 $1.91 $1.86 $1.84 $1.84 -0.1%

$ Incr. $ Incr. $ Incr. $ Incr. $ Incr. $ Incr.

Usage 0 $11.67 $12.42 $13.27 $14.22 $15.27 $16.42 7.1%

Cost Increase $0.75 $0.85 $0.95 $1.05 $1.15 $0.95

Usage 10 $19.43 $22.28 $25.05 $27.20 $30.54 $34.38 $0.12

Cost Increase $2.85 $2.77 $2.15 $3.34 $3.84 $2.99

Usage 15 $29.14 $31.96 $34.41 $36.31 $39.55 $43.36 8.3%

Cost Increase $2.83 $2.44 $1.90 $3.24 $3.82 $2.85

Usage 20 $38.84 $41.64 $43.76 $45.42 $48.55 $52.35 6.2%

Cost Increase $2.80 $2.12 $1.65 $3.14 $3.80 $2.70

Impact on Monthly Bill

Proposed Gas Rates: Residential OCL

Page: 18

FALFURRIAS UTILITY BOARDPROPOSED RATES: Residential OCLNO. ACCOUNTS 3AVERAGE CONSUMPTION - CCF 12.58


Increase



0 3 $0.00 $0.00 $1.03 $1.33 $1.60 $2.70

3 6 $0.00 $1.07 $1.13 $1.53 $2.45 $2.70

6 10 $2.92 $2.91 $2.81 $2.74 $2.71 $2.70 -1.5%

10 15 $2.92 $2.91 $2.81 $2.74 $2.71 $2.70 -1.5%

15 20 $2.92 $2.91 $2.81 $2.74 $2.71 $2.70 -1.5%

20 30 $2.92 $2.91 $2.87 $2.79 $2.76 $2.75 -1.2%

30 50 $2.92 $2.91 $2.87 $2.79 $2.76 $2.75 -1.2%

50 100 $2.92 $2.91 $2.87 $2.79 $2.76 $2.75 -1.2%

100 200 $2.92 $2.91 $2.87 $2.79 $2.76 $2.75 -1.2%

200 Greater $2.77 $2.91 $2.87 $2.79 $2.76 $2.75 -0.1%


Usage 0 $17.51 $18.63 $19.91 $21.33 $22.91 $24.63 7.1%

Cost Increase $1.12 $1.28 $1.43 $1.58 $1.72 $1.42

Usage 10 $29.15 $33.43 $37.58 $40.80 $45.81 $51.56 12.1%

Cost Increase $4.27 $4.15 $3.23 $5.00 $5.76 $4.48

Usage 15 $43.71 $47.95 $51.61 $54.46 $59.32 $65.04 8.3%

Cost Increase $4.23 $3.67 $2.85 $4.85 $5.73 $4.27

Usage 20 $58.27 $62.47 $65.65 $68.12 $72.83 $78.52 6.1%

Cost Increase $4.19 $3.18 $2.48 $4.70 $5.70 $4.05


Proposed Gas Rates: Commercial ICL

Page: 19

FALFURRIAS UTILITY BOARDPROPOSED RATES: Commercial ICL

NO. ACCOUNTS 40AVERAGE CONSUMPTION - CCF 188.08


Increase



0 3 $0.00 $0.34 $1.13 $1.64 $1.71 $1.80

3 6 $0.00 $0.97 $1.41 $1.64 $1.71 $1.80

6 10 $1.95 $1.94 $1.88 $1.83 $1.81 $1.80 -1.5%

10 15 $1.95 $1.94 $1.88 $1.83 $1.81 $1.80 -1.5%

15 20 $1.95 $1.94 $1.88 $1.83 $1.81 $1.80 -1.5%

20 30 $1.95 $1.94 $1.91 $1.86 $1.84 $1.84 -1.1%

30 50 $1.95 $1.94 $1.91 $1.86 $1.84 $1.84 -1.1%

50 100 $1.95 $1.94 $1.91 $1.86 $1.84 $1.84 -1.1%

100 200 $1.95 $1.94 $1.91 $1.86 $1.84 $1.84 -1.1%

200 300 $1.85 $1.94 $1.91 $1.86 $1.84 $1.84 -0.1%

300 400 $1.85 $1.94 $1.91 $1.86 $1.84 $1.84 -0.1%

400 500 $1.85 $1.94 $1.91 $1.86 $1.84 $1.84 -0.1%

500 1,000 $1.85 $1.94 $1.91 $1.86 $1.84 $1.84 -0.1%

1,000 1,500 $1.85 $1.94 $1.91 $1.86 $1.84 $1.84 -0.1%

1,500 2,000 $1.85 $1.94 $1.91 $1.86 $1.84 $1.84 -0.1%

2,000 Greater $1.85 $1.83 $1.87 $1.90 $1.92 $1.94 1.0%


Usage 0 $11.67 $13.92 $16.27 $18.72 $21.27 $23.92 15.4%

Cost Increase $2.25 $2.35 $2.45 $2.55 $2.65 $2.45

Usage 15 $29.14 $35.26 $40.68 $44.93 $47.73 $50.86 11.8%

Cost Increase $6.12 $5.42 $4.25 $2.80 $3.13 $4.35

Usage 30 $58.27 $64.32 $69.11 $72.62 $75.12 $78.19 6.1%

Cost Increase $6.05 $4.80 $3.51 $2.50 $3.07 $3.98

Usage 100 $194.38 $200.08 $202.77 $202.78 $203.88 $206.67 1.2%

Cost Increase $5.70 $2.70 $0.01 $1.10 $2.79 $2.46

Usage 200 $388.86 $394.06 $393.76 $388.76 $387.87 $390.26 0.1%

Cost Increase $5.20 -$0.30 -$4.99 -$0.90 $2.39 $0.28


Proposed Gas Rates: BCDC

Page: 20

FALFURRIAS UTILITY BOARDPROPOSED RATES: Detention CenterNO. ACCOUNTS 1AVERAGE CONSUMPTION - CCF 5,234


Increase



0 3 $0.00 $0.51 $1.69 $2.46 $2.57 $2.70

3 6 $0.00 $1.46 $2.11 $2.46 $2.57 $2.70

20 30 $2.92 $2.91 $2.87 $2.79 $2.76 $2.75 -1.2%

200 300 $2.77 $2.91 $2.87 $2.79 $2.76 $2.75 -0.1%

2,000 Greater $2.77 $2.74 $2.80 $2.85 $2.88 $2.90 1.0%


Usage 4,000 $11,101.57 $11,307.99 $11,350.51 $11,316.85 $11,325.18 $11,366.49 0.5%

Cost Increase $206.41 $42.52 -$33.66 $8.33 $41.31 $52.98

Usage 5,000 $13,869.55 $14,045.46 $14,147.98 $14,166.82 $14,205.15 $14,268.96 0.6%

Cost Increase $175.91 $102.52 $18.84 $38.33 $63.81 $79.88

Usage 6,000 $16,637.52 $16,782.93 $16,945.45 $17,016.79 $17,085.12 $17,171.43 0.6%

Cost Increase $145.41 $162.52 $71.34 $68.33 $86.31 $106.78


Pro Forma Cash Flow under Restructured Rates – Average Consumption

Page: 21

FALFURRIAS UTILITY BOARDCASH FLOW SUMMARY-NATURAL GAS

2013 2014 2015 2016 2017 2018

Natural Gas Consumpt. Scenario Average Average Average Average Average Average

Price of Purchased Gas - MMBTU $4.64 $4.64 $4.74 $4.84 $4.94 $5.00Rate Rev - Base $156,448 $168,273 $181,571 $196,365 $212,679 $230,535

Rate Rev - Volumetric & Purchased $580,347 $625,542 $656,342 $672,635 $697,568 $730,845

Non-Rate Revenues $20,200 $18,801 $19,056 $19,315 $19,578 $19,845

TOTAL REVENUES $756,995 $812,616 $856,969 $888,315 $929,825 $981,224

O&M, Net of Depr. & Purchased Gas $538,575 $553,648 $573,488 $593,161 $612,778 $632,338

Purchased Gas $179,172 $180,121 $184,977 $189,880 $194,830 $198,240

TOTAL EXPENSES $717,747 $733,769 $758,465 $783,042 $807,608 $830,578Net Rev. Avail. For Debt Svc. $39,248 $78,847 $98,504 $105,274 $122,217 $150,646

CASH FOR CAPITAL OUTLAYS $39,248 $78,847 $98,504 $105,274 $122,217 $150,646

Total Capital Outlays $65,000 $67,275 $69,630 $72,067 $74,589 $76,827FY END BALANCE ($25,752) $11,572 $28,874 $33,207 $47,628 $73,819

FYEFYE

Recommended Next Steps

Page: 22

• Evaluate no-charge gas accounts• Consider billing in hundreds of units instead of

thousands• Consider billing in MMBTus instead of Cubic Feet • Incorporate Staff, Board, and Council comments

into study• Advise ratepayers of proposed increases• Draft rate ordinance

natural gas rate study and long-term financial plan presented november 19, 2013 capex consulting...

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