presentation intertie-parker davis workplan mtg fy2020 120117 · 2019. 7. 26. · fy20 work plan...

FY20 Work Plan Preview Meeting | 1

AGENDA

• Welcome• Work Plan Meeting Schedule• FY17 Budget vs Actual • FY20 Strategic Budget Guidance• Cash Flow & Unobligated Balances• Budget Calendar• Ten Year Plan Process Update• Vegetation Management Update


Work Plan Meeting Schedule

• FY20 Work Plan Preview Meeting (Today)– FY17 Final Budget Execution– FY20 Strategic Budget Guidance– FY20 New FTE Requested

• FY20 Work Plan Meeting (April)– FY14‐17 Actuals– FY18‐19 Budget Requests– FY20 Formulated Work Plan– FY21‐24 Out Years Work Plan

FY17 Budget vs ActualIntertie and Parker Davis

WAPA HeadquartersColin Marquez


Bottom Line Up Front• WAPA‐Wide:

1. OCIO Evolution led to cost shifts (offsets)2. Additional program requirements related to IT primarily in

support of Power Marketing and Operations (itemized later)3. Senior Management decision to replace the Power

Repayment Study• Parker‐Davis / Intertie:

1. Shift in IT related requirements from Parker‐Davis / Intertie to the DSW Indirect cost pool

2. Surpluses in Parker‐Davis and Intertie partially offset by shortfall in DSW indirect cost pool

3. DSW indirect cost pool partially distributed to Parker‐Davis and Intertie (53% and 12%, respectively)


Terms and DefinitionsTerm Definition

Indirect Program requirements that are not assignable to specific projects (i.e. overhead)

Expense Program requirements that are not capitalized but are related to specific projects

Capital Program requirements that are capitalized and related to specific projects

Direct Program requirements from HQ organizations that are charged directly to regional projects (expense/capital)

Direct Allocation

Program requirements from HQ organizations that are charged to a regional indirect cost pool (i.e. regional overhead)

Work Plan Requirements identified during formulation

Revalidated Requirements identified after formulation during the beginning of the execution year – remains within formulated control totals


Terms and Definitions (continued)Term Definition

WAPA‐HQ Program requirements managed by HQ organizations

DSW ‐ Indirect Program requirements related to DSW that are considered indirect (i.e. overhead)

Parker‐Davis Program requirements related directly to Parker‐Davis

Intertie Program requirements related directly to Intertie

A0 Administrative Includes the Chief Executive Officer, Chief Strategy Officer, Public Affairs, General Counsel, Economic Impact and Diversity, Washington Liaison Office

A2 OCIO Office of the Chief Information Officer

A7 OCOO Office of the Chief Operating Officer (includes Design, Natural Resources, Technical Services, Safety, Security, Risk & Reliability, Asset Management, HR, Procurement, ETPC, Aviation)

A8 OCFO Office of the Chief Financial Officer


WAPA‐HQ Budget vs Actual

• Indirect– Nearly 100% executed ‐ $58M– Approximate distribution:

• Parker‐Davis ‐ ~12%• Intertie ‐ ~3%

• Capital ‐ $8.6M– Revalidation per HQ 10‐Year Capital Plan presented September 2016 – Infrastructure, Cyber Security, Enterprise Applications

– Senior Management decision to invest in Power Repayment Study replacement


DSW – Indirect Budget vs Actual

• Indirect– Approximate distribution – follows direct labor

• Parker‐Davis ‐ ~53%• Intertie ‐ ~12%

– ~($2.2M) shortfall• Partially offset (~$1.2M) with cost shift from Parker‐Davis / Intertie to better align costs with beneficiary / requirements owner

• Partially offset (~$.4M) due to changes in IT Evolution budgeting

– ~$185K administrative support for IT partially budgeted in G1000 – DSW Admin Org

– ~$230K IT SCADA support services budgeted for in RMR


DSW – Indirect Budget vs Actual

• Indirect (continued)– Remaining shortfall of ~($.6M)

• ~$115K contract modification for Power Management and Marketing programmer support (previously discussed)

• ~$120K middleware software maintenance renewal (previously discussed)

• ~$145K Wifi enablement for field offices• ~$230K partial unfunded for data historian software renewal which is required by operations, power marketing and maintenance


Parker‐Davis Budget vs Actual

• Expense– $1M surplus primarily driven by cost shifts in IT to DSW‐Indirect power system

• Capital– Surplus due to fewer capital charges from Design & Engineering


Intertie Budget vs Actual

• Expense– $200K surplus primarily driven by cost shifts in IT to DSW‐Indirect power system

• Capital– Shortfall due to more capital charges from Design & Engineering

FY20 Strategic Budget Guidance Update

WAPA HeadquartersColin Marquez


FY20 Strategic Budget Guidance

• Investment drivers• Assumptions / constraints• Cost savings / avoidance

• Read more: The Source ‐ Budget Allocation


Investment Drivers• Engineering salary increases – est. ~$1.2M• Leadership development• Cyber risk• Market start‐up costs


Assumptions / Constraints• Investment drivers must be offset• FTE neutral• Inflation at 2% for labor / non‐labor• Revalidate Trust & Reimbursable assumptions• Increases over FY19 work plan require approval


Cost savings / avoidance• Organizational Approach to Markets (OAM)• Program assessments• Reduction in facility footprint / cost• Strategic sourcing

Cookie Break!

FY17 Budget vs ActualIntertie and Parker Davis


Parker Davis O&MBudget Activity Description Budget Actuals (Shortfall) % Executed

Maintenance N/FGPD COMMM Communication & Control 996,105$ 1,118,182$ (122,077)$ 112% N/FGPD LINCM Lines, Direct Hrs, No Specific Job 1,365,092$ 1,569,909$ (204,817)$ 115% N/FGPD LINSM O&M of Trans Lines 5,608,406$ 6,515,139$ (906,733)$ 116% N/FGPD STUDM Transmission/Engineering Studies 1,934,224$ 1,481,791$ 452,433$ 77% N/FGPD SUBCM Subs, Direct Hrs, No Specific Job 3,378,951$ 3,927,361$ (548,410)$ 116% N/FGPD SUBSM O&M of Subs & Related Facilities 5,815,949$ 5,658,103$ 157,846$ 97%

Total Maintenance 19,098,727$ 20,270,484$ (1,171,757)$ 106%

Non-Maintenance N/FGPD BILLM Power Billing 568,036$ 424,217$ 143,819$ 75% N/FGPD CAREM Conserv & Renew Energy 85,208$ 41,900$ 43,308$ 49% N/FGPD FINAM Financial Management 382,561$ 281,411$ 101,150$ 74% N/FGPD GWAMM General Western Allocation 5,739,105$ 2,531,640$ 3,207,465$ 44% N/FGPD MRKTM Power Marketing 2,708,220$ 2,541,307$ 166,913$ 94% N/FGPD SAFEM Safety & Security 566,740$ 500,463$ 66,277$ 88% N/FGPD SOLDM Sys Ops & Load Dispatch 5,940,919$ 5,704,033$ 236,886$ 96% N/FGPD SUPTM Data Activities Charges 890,875$ 4,456,732$ (3,565,857)$ 500% N/FGPD SVCFM DSWR Service Facility Clearing 1,016,053$ 1,217,692$ (201,639)$ 120%

Total Non-Maintenance 17,897,717$ 17,699,395$ 198,322$ 99%

Subtotal O&M 36,996,444$ 37,969,879$ (973,435)$ 103%


Parker Davis Capital ProgramFY17 FY17 Available FY17

Budget Activity Description Budget Actuals (Shortfall) % Executed

Replacements N/FGPD COMMB Replace Comm & Control Equip 885,000$ 185,274$ 699,726$ 21% N/FGPD LINSB Transmission Lines 2,200,000$ 2,947,488$ (747,488)$ 134% N/FGPD MOVPM Movable Property 1,275,000$ 4,347,385$ (3,072,385)$ 341% N/FGPD SUBSB Replace Substation Equip 3,162,000$ 3,002,128$ 159,872$ 95%

Subtotal RRADs 7,522,000$ 10,482,275$ (2,960,275)$ 139%

Construction Appropriated Multiple Projects 500,000$ 3,019,514$ (2,519,514)$ 604% Prepayment Multiple Projects 21,072,000$ 4,714,932$ 16,357,068$ 22%

Subtotal Construction 21,572,000$ 7,734,446$ 13,837,554$ 36%

Grand Total 66,090,444$ 56,186,601$ 9,903,843$ 85%


Intertie O&MFY17 FY17 Available FY17


Maintenance N/FGIN COMMM Communication & Control 167,978$ 194,603$ (26,625)$ 116% N/FGIN LINCM Lines, Direct Hrs, No Specific Job 208,478$ 139,039$ 69,439$ 67% N/FGIN LINSM O&M of Trans Lines 863,446$ 179,104$ 684,342$ 21% N/FGIN STUDM Transmission/Engineering Studies 363,668$ 304,799$ 58,869$ 84% N/FGIN SUBCM Subs, Direct Hrs, No Specific Job 396,394$ 1,086,528$ (690,134)$ 274% N/FGIN SUBSM O&M of Subs & Related Facilities 2,553,321$ 2,494,873$ 58,448$ 98%

Total Maintenance 4,553,285$ 4,398,947$ 154,338$ 97%

Non-Maintenance N/FGIN BILLM Power Billing 113,992$ 73,701$ 40,291$ 65% N/FGIN FINAM Financial Management 85,339$ 62,790$ 22,549$ 74% N/FGIN GWAMM General Western Allocation 1,293,342$ 602,459$ 690,883$ 47% N/FGIN MRKTM Power Marketing 739,172$ 670,494$ 68,678$ 91% N/FGIN SAFEM Safety & Security 117,563$ 98,983$ 18,581$ 84% N/FGIN SOLDM Sys Ops & Load Dispatch 676,354$ 631,750$ 44,604$ 93% N/FGIN SOLWM Mead-Phoenix O&M 1,503,969$ 1,913,664$ (409,695)$ 127% N/FGIN SUPTM Data Activities Charges 192,168$ 1,057,303$ (865,135)$ 550% N/FGIN SVCFM DSWR Service Facility Clearing 215,229$ 285,227$ (69,998)$ 133%

Total Non-Maintenance 4,937,128$ 5,396,372$ (459,244)$ 109%

Subtotal O&M 9,490,413$ 9,795,319$ (304,906)$ 103%


Intertie Capital ProgramFY17 FY17 Available FY17


Replacements N/FGIN COMMB Replace Comm & Control Equip 100,000$ (462)$ 100,462$ 0% N/FGIN LINSB Transmission Lines 1,500,000$ 50,000$ 1,450,000$ 3% N/FGIN MOVPB Movable Property 40,000$ 214,433$ (174,433)$ 536% N/FGIN SUBSB Replace Substation Equip 1,560,000$ 1,289,127$ 270,873$ 83%

Subtotal RRADs 3,200,000$ 1,553,098$ 1,646,902$ 49%

Construction Appropriated Multiple Projects 1,015,000$ 3,895,732$ (2,880,732)$ 384% Prepayment Multiple Projects 7,923,000$ 409,964$ 7,513,036$ 5%

Subtotal Construction 8,938,000$ 4,305,696$ 4,632,304$ 48%

Grand Total 21,628,413$ 15,654,113$ 5,974,300$ 72%


Cash Flow&

Unobligated Balances


Unobligated Balances Strategy• https://www.wapa.gov/About/Documents/financial/unobligated‐

balances‐strategy.pdf• O&M

– One quarter’s annual budget plus 21 days– Contingency for Continuing Resolution and/or Government shutdown

• Capital– Three years– Support the near‐term alternatively financed capital and construction

program projects• PPW

– Highest 3‐year cumulative actual amount of net energy needed to meet Pick‐Sloan Program’s contractual energy obligations (2005‐2007)


Beg Bal FY 2018 FY 2019 FY 2020 FY 2021 FY 2022Prepayment Inflows 67,167,105 69,245,513 69,245,513 69,245,513 69,245,513 69,245,513

OutflowsO&M Budget ‐ 47,466,061 46,893,960 47,831,839 48,788,476 49,764,246 RRADs Budget ‐ ‐ ‐ ‐ ‐ ‐ Construction ‐ 23,145,000 10,008,000 28,696,000 19,404,000 3,933,000

Total Outflows ‐ 70,611,061 56,901,960 76,527,839 68,192,476 53,697,246

Net Prepayment Total 67,167,105 (1,365,548) 12,343,553 (7,282,326) 1,053,037 15,548,267

609 Inflows ‐ 20,806,000 20,806,000 20,806,000 20,806,000 20,806,000

609 OutflowsUPF Purchase Power Expense ‐ 10,600,000 10,600,000 10,600,000 10,600,000 10,600,000 Transfers Within Western (Line Loss) ‐ 230,000 230,000 230,000 230,000 230,000

609 Outflows ‐ 10,830,000 10,830,000 10,830,000 10,830,000 10,830,000

Net 609 Total - 9,976,000 9,976,000 9,976,000 9,976,000 9,976,000

Return to TreasuryPrepayment ‐ ‐ ‐ ‐ ‐ 609 9,976,000 9,976,000 9,976,000 9,976,000 9,976,000

NET PREPAYMENT AND 609 CASH 67,167,105 (1,365,548) 12,343,553 (7,282,326) 1,053,037 15,548,267

End of Year Cash 67,167,105 65,801,557 78,145,110 70,862,784 71,915,821 87,464,088

Unobligated Balance3 years construction 58,108,000 52,033,000 52,388,000 54,014,000 74,980,000 O&M 111 days 14,458,971 14,748,150 15,043,113 15,343,976 15,650,855 Total ‐ 72,566,971 66,781,150 67,431,113 69,357,976 90,630,855

Parker Davis & IntertieFiscal Years 2018 Through 2022 Forecast


Budget Process


FY18 FY19 FY20August FTE requests to OCFO

SeptemberCongress passes budget/CRA for FY18

HQ TYP Meeting

Administrator's decision on FTEHQ TYP Meeting

October

Administrator's Budget guidance issuedHQ budget & Direct Charge Plan provided to customersRegions submit TYP to OCFO

November Budget Revalidation

MDCC/TCC prioritization of appropriated capital fundsHQ Budget presentation to customersBudget formulation (labor rates)

DecemberFY18 budget reports are available with allocationsWAPA‐wide TYCP Meeting (FY18‐27) WAPA‐wide TYCP Meeting (FY18‐27)

Final HQ budget provided to Seniors & RegionsPD/IN FY20 Work Plan Preview MeetingWAPA‐wide TYCP Meeting (FY18‐27)Budget formulation (labor hours)

January President sends budget to Congress Budget formulation (non‐labor)February O&M, RRADs & C&R data entry

March

PPW data entryOutyear estimate ‐ escalationRegional Manager review of O&M

April PD/IN Work Plan Meeting PD/IN Work Plan MeetingBudget submitted to OCFO w/preliminary rate analysisPD/IN Work Plan Meeting

MayAdministrator approves WAPA budgetWAPA budget submission to DOE

JuneHouse/Senate Appropriation Subcommittees issue marks to Western

July Prepare carryover authority planAugust

SeptemberHQ TYP MeetingCongress passes budget/CRA for FY19

HQ TYP Meeting

House/Senate Appropriation Subcommittees review budget (Feb‐Apr)

CY20

18CY

2017


Ten Year PlanProcess Update


Vegetation Management

Program Update


Questions?