ßETJTOil

Bnxrol\t PIIDzo2o PnnLIMI\TARY BuucETPueLrc HrnRrNc

NovEMBER 6, 201,9

P nES ENTTATIO}T App ROACH

o

a

a

Budgets are "full of numbers"

Numbers without context can lack meaning

We will attempt to provide meaning through contextr Challenges & strategic focusr Current financial positionr Long term cost trendsr Benchm ark utility comparisonsr Year over year comparison

o-DññI 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/CommentsB. Final Public Questions/Comments

-Dlfrt 2020 Budget Hearing - November 6,20L9 o

314r-.{

tFI

o

BUUGET DEvELoPMEltr ScnE DULE,

Oct22 Nov 6 Nov 12 Nov 26 Dec 10

Pu blicHearing:

Preliminary2020 Budget

CommissionMeeting

DistributeHigh-LevelPreliminary2020 Budgetlnformation

CommissionMeeting,Public

CommentPeriodGlosed

Final2020 BudgetConsideredfor Adoption

PublicComment

PeriodOpened

ffi 2020 Budget Hearing - November 6,2019 o

2o2o Pnn LIMIIrARY BUnGET

o 2O2O Preliminary Budget is a Draft Budgetr Ongoing review of assumptions fo r all budget categoriesr Final budget recommendation on December 10th

Final Budget will Reflect:r Public commentr Commission direction

o

o.¡:ñ¡fi?¡ 2020 Budget Hearing - November 6,2019

2o2o P npLIMI\IARy BUpGET AssuMprlolts

No planned rate increase

o [\o budgeted increase in 2O2Oo Likely need for retail revenue increase in 2O2L

nË

Planned reserve drawdown of $3.0 million

2020 Budget Hearing - November 6,2019 o

SrnerEGIc CoxrEXTo CUnRENT BTxNTIUMo 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 SvstemPower 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 Technoli

Communitv Education. Salmon in the Schools. Energ¡/ Experience. RiverFest/Snake River Dams

Cunnu\T BrnNNruM

o

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)

III

o1

o2

03

o4

05

Power Contracts & Markets

ric System Investments

Resource Adequacy

Stewardship & Rates

Value of Hydro

Wffid$

ffiffi 2020 Budget Hearing - November 6, 2019

Fwe¡ucIAL METRIcS

AvERAGE Rnrerr, Rannsl2or8 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

16.318.8

6.9

1.3.2

10.5

16.6

1 Revenues - includes all charges to customer2 American Public Power Association

I 2020 Budget Hearing - November 6,2019 @

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

kwh1,350

$119

¡¡M¡d-c"

Energy lndependence Act (ElA) eslimqled impoct on Benton PUD rqtes =$3.00 per month

L¡J

ulUJ

UJ

UJ

ItlttlBenlon PUD hqs been ql or

below lhe mediqn since 2005

ffi 2020 Budget Hearing - November 6,20L9

DEgr Pnn CUSTOME,RWPTIDA' 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 surueyrespondents

($7,450)Benton PUD

Projected 2079($e04)

District below the median and average of Washington PUDs

ffi$m 2A20 Budget Hearing - November 6,2019 @

Dner SnnvIcE, ScnEDULE,

120!6 E2OII I2O1.O --AvÉAnnual

$ 5,0

qt

,9

>Ø

2020 Budget Hearing - November 6,20L9

Devs Cesn oN Hexn (RnsERVEs)WPUDA' Sunvny - DncnrungR 2o7B (DtsrRIBurIo¡¡ SvsrEMS Owrv)

Currentforecast shows a twoyear drop in reserves withreserves levelin{, out andsllghtly rebuildin{ in 2022

Median for surveyrespondents

(763)

Benton PUD

Projected 2079(705)

lWashington PUD Association

oñ

Source.' WPUDA Source Book (Sept 2019)

ag,o

350

300

250

200

150

100

50

o

:::$.,{-"ç5*o,Þ.t

Þ$

.*ù.- .ffi

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

II 2020 Budget Hearing - November 6,2019 @

CnexGE r\r Nnr AssETs2o2o PnnrrMn{ARy Buncnr vs. 2o1g Orucnvdr BUDGET

1,,O64

1,O1,9

(8e8)

1,,408

340

56

(263r'

24,35814,349L0,055

2,065

71,45030,557

L,2372

72,5t43r,576

339

25,76614,68910,111,

1,,802

Revenues (less sales for resale)

Expenses

BPA Power & TransmissionOther Purchases & Services

Net ConservationLess: Sales for Resale

Net Power Supply

Operations a nd Mai ntenanceTaxes

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)

ndituresitalGross Ca

Dollors in thoussnds

84,010ì 86,062ì l2,O52l

2020Preliminary

Budget

S141,163 i

20!9Original

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,4çzlBETTOT

ä.u-D @flruffix9?*

2020 Budget Hearing * November 6,2019

V)E-{U)o

()

ú14

3oÈ

È\

ExpE,\TSE,S ANTD EXPE\TDITURESl{nr Powøn Expnxsn

2020 Preliminary BudgetTotal Net Expenditures

$146.1 million*

o&ML7.60/o

$25.8M

Taxes/OtherDebt

Service4,2o/o

Net CapitaltO.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

Supply57.5o/o

et

$14,7M

I -drË @

Gnoss PowER SUpPLY CosT BY SouRcE

BPA Power58.2o/o Gross Power Supply

$104.4 million

BPATransmission

Ll.3o/o

Frederickson*t7.2o/o

AncillaryServices

2,60/o

ffi

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

I 2020 Budget Hearing - November 6,20t9 @

BUUGET AssuMPTIol{sTNCLUDES BPA AnoprED Rtrns FoR 2o2o (nppncrIvg OcronER 7, zotg)

BP-20

0.0%

!.5%

3.6o/o

$0.8M

I.2o/o

BPA Power & TransmissionDescription

Power - Base

Power - FRP* Surcharge

Transmission

As applied to Benton PUD

Annual $ lncrease

Ann ual % lncrease*Financial Reserve Policy

ãõl$t 2020 Budget Hearing - November 6,20L9 o

2.85o/oBenton PUD Total

Block (Fixed) L.48o/o

Slice (Variable) r.370/,

BUoGET ASSUMPTIO}TSINCLIIDES BPA 2O2O WATNN FONNCAST

Type% Generation

Received

BPA Forecasted 2O2OAnnual Generation

9,500I,t24

9,000 8,802

8,500

8,000

,500

7,000

6,500

6,000r BPA WY19 StudyI 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

==(o

EET|OT

äü.0 @

Two Fqctors:I ) Climqte2) Court Ordered Spill

Net Cost lmpoct: $sOOk -

$1.3M per yetlr

2020 Budget Hearing - November 6,2019

BUUGET ASSUMPTIO}TSPowan Supprv Br RncuuroRY

r No BPA Cost Recovery Adjustment Clauses (CRACs)

r BPA Financial Reserve Policy Surcharge $580kr 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

8EJrnl

æ.u.0 @ffi 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 Budget25th percentile

Sig n ifica n t Un certa in ty

NET PowE,R COSTS+ç20tg October Forecast

Worse than 5th percentile

a_t__

'$84.0 $83.6$-85 .4

-$8zo- .aa

$78.5$.80.9 $80;f-

-'c; -$80s -.5'-'-'$86.1 :l ,ja

&77-2- a a o

$73.8

P $753 szo5 sos

$60$55$50$45$40

-$7-L9.

$ Better

t$59-5

$46J-

,SrS"flordg"f,Ëù"f.FetS"df"dP

#rdÈ

ffi

{-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

I 2020 Budget Hearing - November 6,20t9 @

FuruRE UxcERTAIltrYPOwgn 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"

@#Ë 2020 Budget Hearing - November 6,2019

I

|to\T-PowER Cosrs

2o2o ltünr CapITAL

Net Capital:

$1S.S million*

o&ML7.60/o

Taxes/OtherLO.L%

Debt Service4.2o/o

* Capital is net of $1.8 million of capital contributions

Net CapitalLO.60/o

8Eflfnr

ä-lr'Dm 2020 Budget Hearing - November 6,2019 @

CeprrAL PrexNI¡{c

Capital plonning fo, distribution system irnprot)ements is

driuen bA our strategic objectiue to prouide cornpetitíue,

reliable and efficient deliuerA s7stems

o 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

o Enterprise Risk Management

ffi 2020 Budget Hearing * November 6,2019 @

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)

8Err0r

æ.U-D ffi 2020 Budget Hearing - November 6,20L9 @

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 PointSwitch Upgra de/AdditionsTra 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 SubstationPla nt Ma ¡ ntena nce for conti nued OperationsCable - Repair& Replacement {Mult¡ple Year Project)

Capacity & Relia bility - SubstationsOther- 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 CarryOverlnf ormation Technology Subtotal

Network I nfra structu re

Operationa I Technol ogy

Enterprise Applications, and Data AnalyticsGeneral 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 replacementsOthe 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

5t2,7924,533

2,O77

!,77t1,500

878

745

547

s36

263

(s8)

s1,158

776

213

t69$szr340

55

40

40

39

to7

815

700

217

369

2020 Capital Projects

Gross Capital SL7,29znhñrã 2020 Budget Hearing - November 6,20t9 @

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]

8Errnt

ä-u-Diffim 2020 Budget Hearing - November 6,20L9

SOUTHRIDGE SUBSTATION+$4M Total

2O2O Budget: $2.6M

ITIEw SUSSTATIOI\

+

Tn txsMlsslol.{ RpIIABILITYIrnPRovEMEI{T PnoJE cTs

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

Net PowerSupply57.5o/o

o&M:

$25.8 million

o&M17.60/o

Taxes/Otherto.!o/o

Net CapitalLO.60/o

Debt Service4.2o/o

@ffi 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

s16411,327

L,070

4,915

Stto10,500

948

4,707

(s12)

827

122

208

2327327 7

ncreased costs tied to increased revenues (s1,o7o) (ss+s¡ StzzLess: 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 SaNESC 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

Originallncrease/

(Decrease)

o//o

ChangeB et

BErînr

ä-4.0 ffi 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 $3e8S378---$ga1

$366$348 $s+s

$411

$445 $451

$451$_433

$3eo

2009 20LO 20L1, 20L2 20L3 20t4 20L5 20L6 20L7 20L8 20L9 2020Budget 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¡erfactoríng ín the effects of ínflatíon(s)

Benton PUD

confÍnues fobe below

APPA

benchmq,rk

II 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 2020Budget 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)

ffi 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

63.5018.00

24.25

Less: FTEs utilized by other local utilities

Customer Programs & Services

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

Operationsrevious budincluded inRemove - rentice inadvertentlrentice moved to Journ Additiona In

Executive / HR / Communications

Finance & Business Services

Engi neeri ng/Power Ma na gement

OperationsI nformati on Tech nol ogy

Customer Programs & Services

Directorate2O2O 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)

@-nn¡t 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

0

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

400

oooCL

Et¡l¡.ocl9,oEoù.o=o

9,oEo+.ÎDãooCDaú

o

0

AttritionNOT

includedin 2O2Obudget

154 JíZ- - 150--15L - J-52* 752--*753 /l Âo4Ât

9¿rOr¡1,

339 '342

:r___-

15

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)

ffi

-o.2%5

4.5%

o.o%

42.9%

3

75

L4,5!3

745s3se

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

6972

250

3

L75

Payroll

Regular Labor- Salaries and Wages

Overtime Wases

Payroll Taxes & EmployeeBenefits

Soci a I Se cu rityMed ica re

State I ndustria l/Unempl oyme ntWashington State Sick Leave

Publ ic Employee Reti rement System 1

Defe rred Compensati on Match

ss2s221

L54

22

l_,908

281'

272

ssoL2L5

153

22

1,839

272

2.7%

2.9%

o.6%

2.6%

3.7%

3.2%

-t.9o/o

I

24

68

s6

T

T

ntri butions

L,qeoR & BExEFITS

Dollors in thousands B

o//o

Change

lncrease/(Decrease)

2020

PreliminaryBudget

20t9Original

$2.7024.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

øcÊ

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/oNormal Cost

4.760/oPlan l UAAL

Total Employer Rate 12.680/o

2020 Employer Contribution Rates

PERSl

7.9Oo/oPlan 2 Members

2O2O Employee Contribution Rates

2O2O PNPLIMI}TARY BUOGE,TPt¡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 7l. 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{DITURESDnnr/Taxns/Orrunn

Net PowerSupply57.5%

Taxes/OtherLO.lo/o

Debt Service4.2o/o

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

DebUTaxes/Othen

$20.8 million*

o&M17,60/o

Net CapitaltO.60/o

@tñl¡¡tH:?Â*

I 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,agqI

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

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

2o2o lrTnr BnoADBANTD Cesn Frow

7.ú/"

l-,353

Net Capital

1031,465

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

OriginalBudget

2020

PreliminaryBudget

o//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 WithoutNoaNet NoaNet

Assessments / Assessments /Su

I

Broadband Cash lnflow zOLl. - Proiected 2019: s¡.rn¡ sr.srvr

L) Summary does not include depreciotion

hË 2020 Budget Hearing - November 6, 2019 @

BETJTOfl

SUUMARY & Nnxr SrEPs

I

Kpy QunsrroNTs

Does budget provide or demonstrate:

L Resources to maintain our system and provide for growth inour communities?

2. Resources to address key strategic challenges?

3. Good fiscal stewardship of our customers' assets throughsound financial planning and policies?

4. A long-term view to maintain or improve:r System reliability?r Competitive retail rates?r Customer satisfaction?

-fr¡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

æ-a.Dtf[E 2020 Budget Hearing - November 6,2019 @

o

CouMIssIoI\tER

aun sTIoI\ts & CouMnltrs

a

CUSToMER

aUESTIoNTS & CouMnltrs

Eruo OF

PnESENTATION

2020 Budget Hearing - November 6, 2019 @