Bryan Texas Utilities FY18 Budget Presentation

Transcription

1 Bryan Texas Utilities FY18 Budget Presentation July 11, 2017 Gary Miller General Manager Bryan Texas Utilities

2 Safety

3 Safety BTU Incident Rate Through June, n o d a t a n o d a t a n o d a t a

4 BTU Peak Load (Megawatts) Annual Peak Load Growth 2.2% Annual Peak Load Growth 2.8%

5 Meters Customer Growth 60,000 City Rural 57,178 29% 50,000 40,000 40,415 11,762 20,760 36% 30,000 71% 20,000 10,000 28,653 36,418 64% 0 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 May'17

6 Residential Customer Billing Comparison

7 Commercial Billing Comparison

8 Reliable Public Power Provider (RP3) Diamond Award Winner Received designation from the American Public Power Association Recognized by APPA as among the best public power utilities in the nation when it comes to: Reliability Safety Work Force Development System Improvement

9 Excellence in Public Power Communication 2016 APPA Award of Merit for Winter Energy Tips video 2016 APPA Award of Merit for social media

10 Customer Programs Customer Incentives: $217.4k 24 customers Saved KW Customer Incentives: $60.7k 110 customers Saved 45.9 KW

11 FY18 Budget Highlights

12 $Million Capital Spending $35 $30 $25 $20 $15 $10 $5 $- FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Transmission Distribution Production Billing/AMI All Other

13 $Million Transmission Projects $35 $30 $25 $20 $15 $10 $5 $- FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22

14 Transmission Projects FY18-19 Proposed Prior Reconfigure Dansby 69 kv FY18 $ 6.5 mm $ 0.0 mm Graham Road Sub FY18 $ 3.0 mm $ 3.0 mm Nash Sub FY18-19 $ 6.5 mm $ 4.5 mm Snook to Steele Store FY18-19 $ 9.3 mm $ 9.3 mm Leonard Road Sub FY18-19 $ 6.0 mm $ 6.0 mm Rayburn to Nash 69 kv FY18-19 $ 0.9 mm $ 0.0 mm Steele Store Sub FY18-19 $ 4.5 mm $ 4.8 mm

15 Transmission Projects FY18-22 Proposed Prior Steele Store to Rita 138 kv FY18-20 $ 4.3 mm $ 3.3 mm Smetana Sub FY18-20 $ 8.2 mm $ 8.5 mm Highway 47 Sub FY18-21 $ 6.4 mm $ 6.4 mm FM 60 Sub FY18-21 $ 7.1 mm $ 7.1 mm Smetana to Steel Store 138 kv FY19-20 $ 5.8 mm $ 6.0 mm Atkins Sub 69 kv Upgrade FY20-21 $ 6.1 mm $ 6.1 mm FM60 to Enterprise 138 kv UG FY20-21 $16.0 mm $16.0 mm Backup Control Center FY20-21 $ 1.1 mm $ 1.1 mm Highway 6 Sub to Other 138 kv FY20-22 $ 1.3 mm $ 0.0 mm Bird Pond Sub FY21 22 $ 0.8 mm $ 4.2 mm Triangle Park #2 FY21-22 $ 0.8 mm $ 6.0 mm

16 Reconfigure Dansby 69kV Bus

17 Graham Road Substation

18 FY18 - FY22

19 $Million Transmission Cash Flows $30 $25 $20 $15 $ Net Cash Flows Cash Inflows Cash Outflows Projected rate of return on rate base decreases from 11.7% to 7.0% in FY $5 $ A 2014A 2015A 2016A 2017P 2018F 2019F 2020F 2021F 2022F

20 $ Million General Fund Transfer $15 $10 Electric Sales portion of GFT Transmission portion of GFT $8.8 $9.2 $ $ $11.4 $ $12.6 $ $ $13.8 $13.2 $ $ $ P 2018B 2019F 2020F 2021F 2022F

21 Distribution CIP Trends City (in millions of $) $25 $20 $15 $10 $5 - FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22

22 City Distribution Projects FY17-21 Proposed Prior New Customer Construction $ 20.0 mm $ 15.8 mm Distribution Improvements $ 10.8 mm $ 15.4 mm Distribution Replacements $ 12.0 mm $ 14.0 mm Feeder Construction $ 7.6 mm $ 8.9 mm Distribution Substations $ 11.6 mm $ 7.8 mm Totals $ 62.0 mm $ 61.9 mm

23 City Distribution Projects Pole Replacement Program FY18-22 Replacement of Aging Non-Jacketed UG Cable FY18-22 Nash Substation Feeder Rebuild FY18 LED Light Conversion FY18-22 Mobile Workforce Management FY18-19 Distribution Operations Service Center FY19-20 Meter Shop Offices FY21 $ 2.6 mm $ 1.8 mm $ 1.2 mm $ 1.0 mm $ 0.8 mm $ 2.9 mm $ 0.8 mm

24 City Distribution Projects Distribution Substations Nash Substation FY18-19 $ 2.3 mm Shady Lane Substation FY19 $ 1.5 mm Leonard Road Substation FY18-19 $ 1.8 mm Hwy 47 Substation FY18-21 $ 2.5 mm Thompson Creek 2nd Transformer FY20-21 $ 1.8 mm Rayburn 2nd Transformer FY21-22 $ 1.8 mm

25 Distribution CIP Trends Rural (in millions of $) $12 $10 $8 $6 $4 $2 $- FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Distribution (w/o AMI) AMI

26 Rural Distribution Projects FY17-21 Proposed Prior New Customer Construction $ 18.9 mm $ 15.9 mm Feeder Construction $ 8.3 mm $ 9.0 mm Distribution Replacements $ 10.2 mm $ 10.5 mm Distribution Improvements $ 2.5 mm $ 2.6 mm Distribution Substations $ 4.7 mm $ 3.7 mm Totals $ 44.6 mm $ 41.7 mm

27 Rural Distribution Projects Pole Replacement Program FY18-22 $ 7.8 mm Construct Thompson Creek & Koppe Bridge $ 0.5 mm Feeder Tie FY18-19 Reconductor Annex 0921 FY19 $ 0.6 mm Rebuild and Construct Lines along Hopes $ 0.5 mm Creek/Koppe Bridge FY21 Reconductor GP 1511 Double Circuit FY22 $ 0.7 mm

28 Rural Distribution Projects Distribution Substations Smetana Substation FY18-20 $ 2.5 mm Wellborn Substation Expansion FY20-21 $ 1.8 mm

29 Business Continuity FY21 $1.8mm

30 Financial Measures

31 BTU Credit Ratings AA Very strong capacity to meet financial commitments. A Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes..

32 Days Operating Cash City System

33 Debt Service Coverage City System

34 Days Operating Cash Rural System

35 Debt Service Coverage Rural System

36 Budget Summary

37 FY18 Expenditure Assumptions Overall Expenditures down $41.5M (Combined City & Rural) Energy costs Capacity costs Cash capital spending Debt service payments Transmission cost of service revenue Departmental O&M, GFT & other ($6.0) M ( 9.4) M (19.6) M (6.1) M (3.4) M 3.0 M

38 FY18 Budget Proposal City System (in thousands of $) Revenues FY 2017 Budget FY 2018 Proposal Operating Revenues Base Revenue $ 71,128 $ 71,020 Fuel Pass Through 77,679 71,191 Regulatory Charge Pass Through 15,245 16,582 Other Operating Revenue 28,839 31,862 Total Operating Revenue 192, ,655 Non-Operating Revenues 280 1,101 Total Revenues 193, ,756 Expenditures Operating Expenses Energy Cost 77,679 71,191 Capacity Cost 27,494 18,078 TCOS Expense - BTU 15,245 16,582 TCOS Expense - Wholesale 3,083 2,422 Departmental Expenses - Net 23,258 23,818 Total Operating Expenses 146, ,092 Non-Operating Expenses Annual Capital 17,920 12,570 Right-of-Way Payments 12,435 13,051 Debt Service 23,263 17,279 Total Non-Operating Expenditures 53,618 42,900 Total Expenditures 200, ,992 Net Increase (Decrease) (7,207) 16,764 Beginning Unrestricted Cash 42,304 51,951 Release of Restriced Collateral 2,000 - Ending Unrestricted Cash $ 37,097 $ 68,715 # of Days of Reserve (90 day min) Rate Stabilization Fund - Ending $ 1,698 $ 1,724

39 FY18 Budget Proposal City System Cont. (in thousands of $) CIP Summary FY 2017 Budget FY 2018 Proposal Bonds Issued $ - $ 45,100 Capital Expenditures from Bonds 53,257 33,483 Net Increase (Decrease) (53,257) 11,617 Beginning Bond Funds 53,257 27,916 Ending Bond Funds $ - $ 39,533

40 FY18 Budget Proposal Rural System (in thousands of $) Revenues Operating Revenues FY 2017 Budget FY 2018 Proposal Base Revenue $ 24,046 $ 25,904 Fuel Pass Through 14,943 15,383 Regulatory Charge Pass Through 4,299 5,012 Miscellaneous Total Operating Revenues 43,612 46,708 Non-Operating Revenues Interest Income Total Revenues 43,656 46,789 Expenditures Operating Expenses Purchased Power - Base 17,054 18,424 Purchased Power - Fuel 14,943 15,383 Purchased Power - Regulatory Charge 4,299 5,012 Departmental Expenses and Other 1,871 1,799 Total Operating Expenses 38,167 40,618 Non-Operating Expenses Annual Capital 3,665 4,826 Debt Service 1,969 1,825 Total Non-Operating Expenditures 5,634 6,651 Total Expenditures 43,801 47,269 Net Increase (Decrease) (144) (480) Beginning Unrestricted Cash 6,911 6,817 Ending Unrestricted Cash $ 6,766 $ 6,337 # of Days of Reserve (45 day min) 65 57

41 FY18 Budget Proposal Rural System Cont. (in thousands of $) FY 2017 Budget FY 2018 Proposal Bonds Issued $ - $ - Capital Expenditures from Bonds 4,308 4,504 Net Increase (Decrease) (4,308) (4,504) Beginning Bond Funds 8,994 4,504 Ending Bond Funds $ 4,685 $ -

42 Questions?

43 Next Steps Council Feedback Incorporate BTU Budget into total City Budget

44