YEAR-END FINANCIAL REPORT JUNE 30, 2012 PUBLIC UTILITIES BOARD 12/7/12

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1 YEAR-END FINANCIAL REPORT JUNE 30, 2012 PUBLIC UTILITIES BOARD 12/7/12

2 ELECTRIC UTILITY JUNE 30, 2012

3 ELECTRIC UTILITY FINANCIAL HIGHLIGHTS OF 2011/12 Strong Operating Results & Stable Growth $288.6M Net Retail Revenues - $10.2M (3.7%) higher than PY Transferred $33.5M to the General Fund Maintained 20% Renewable Portfolio Standard Standard & Poor s & Fitch affirmed (AA-) rating

4 ELECTRIC UTILITY REVENUES- BUDGET TO ACTUAL COMPARISON JUNE 30, 2012 (In $1,000 S) $350,000 $323 M $333 M $329 M $300,000 $250,000 $200,000 $150,000 $100,000 Prior Yr - 11 Actual - 12 Budget - 12 Retail sales Wholesale sales Transmission revenue Other operating income Investment income Other non-operating income

5 ELECTRIC UTILITY EXPENSES - BUDGET TO ACTUAL COMPARISON JUNE 30, 2012 (In $1,000 S) $350,000 $309 M $312 M $326 M $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Prior Yr - 11 Actual - 12 Budget - 12 Power Supply Other O & M Debt Service Property Acquisition GFT

6 ELECTRIC UTILITY POWER RESOURCES GROSS PURCHASES/PRODUCTION - JUNE 30, 2012 Riverside Energy Resource Center (2% MW) Market Transactions & Long-Term Contracts (32%) Avg 3.4 cents per kwh Green Power (19%)- Including Hoover - Avg 5.2 cents per kwh Springs Generating Project (<1%-40 MW) Palo Verde Nuclear Generating Station (4%-11.7 MW) - Avg 4.7 cents per kwh Intermountain Power Project (34% MW) Avg 6.1 cents per kwh San Onofre Nuclear Generating Station (8%-38.5 MW) - Avg 13.6 cents per kwh Clearwater Cogeneration Facility (<1%-29.5 MW)

7 ELECTRIC UTILITY AVERAGE COST OF POWER, NET OF WHOLESALE & TRANSMISSION REVENUES (CENTS PER KWH) Transmission Generation Wholesale Revenue Transmission Revenue

8 ELECTRIC UTILITY OPERATING CASH BALANCES - JUNE 30, 2012 (In $1,000 S) $210,000 $178,700 $169,200 $195,300 $180,000 $34,500 $150,000 $28,900 $9,800 $14,200 $7,800 $120,000 $90,000 $60,000 $140,000 $155,000 $153,000 $30,000 $0 Beginning Balance Expected Y-T-D Balance Actual Y-T-D Balance Operating Reserve Advances to City Operating Cash

9 ELECTRIC UTILITY CAPITAL/EQUIPMENT FUNDING JUNE 30, 2012 (In $1,000 S) $54,000 $51.3 M $44.9M $48,000 $42,000 $36,000 $30,000 $24,000 $18,000 $12,000 $6,000 $0 Jun-11 Jun-12 Developer fees/others Bond proceeds Rates/reserves RERC/RTRP Non-Cash Contributions

10 ELECTRIC UTILITY - OPERATING RATIO 100% 80% 70.5% 76.3% 70.3% 68.2% 72.3% 69.6% 60% 40% 20% 0% Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 ACTUAL - PRIOR YEAR ACTUAL - CURRENT YEAR INDUSTRY MEDIAN (APPA) The operating ratio reflects the Utility s Operating and Maintenance Costs to operating revenues. A low ratio indicates positive results. Industry Average = 73.8%

11 ELECTRIC UTILITY UNRESTRICTED CURRENT RATIO Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 ACTUAL - PRIOR YEAR ACTUAL - CURRENT YEAR INDUSTRY MEDIAN (APPA) The Unrestricted Current Ratio indicates the Utility s ability to meet short term liabilities. A higher ratio indicates positive results. Industry Average = 1.6

12 ELECTRIC UTILITY - DEBT RATIO 100% 80% 60% 57.8% 64.8% 61.7% 58.9% 63.7% 62.2% 40% 20% 0% Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 ACTUAL -PRIOR YEAR ACTUAL - CURRENT YEAR INDUSTRY MEDIAN (APPA) The Debt Ratio indicates what proportion of debt the Utility has in relation to Utility assets. This ratio is favorable when it is lower. Industry Average = 61.1%

13 ELECTRIC UTILITY DEBT SERVICE COVERAGE Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 ACTUAL - PRIOR YEAR INDUSTRY MEDIAN (APPA) ACTUAL - CURRENT YEAR BOND COVENANTS The Debt Service Coverage is used as a benchmark to measure the Utility s ability to produce enough cash to cover our debt service payments. A higher ratio is more favorable. Industry Mean = 2.06

14 WATER UTILITY JUNE 30, 2012

15 WATER UTILITY FINANCIAL HIGHLIGHTS OF 2011/12 Strong Financial Ratios Credit Ratings: Standard & Poor s affirmed Water (AAA) - 4/13/12 Moody s rating affirmed (Aa2) 4/13/12 Fitch rating affirmed (AA+) 5/7/11 $59.6M Net Retail Revenues - $4.4M (8.0%) higher than PY Transferred $6.3M to the General Fund 4 th year of Water Independence

16 WATER UTILITY REVENUES- BUDGET TO ACTUAL COMPARISON JUNE 30, 2012 (In $1,000 S) $83 M $67 M $66 M $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Prior Yr-11 Actual-12 Budget-12 Retail sales Other operating income Other non-operating income Wholesale sales Investment income

17 WATER UTILITY EXPENSES BUDGET TO ACTUAL COMPARISON JUNE 30, 2012 (In $1,000 S) $55 M $55 M $62 M $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Prior Yr-11 Actual-12 Budget-12 O & M Debt Service GFT

18 WATER UTILITY OPERATING CASH BALANCES - JUNE 30, 2012 (In $1,000 S) $56,800 $63,200 $64,900 $70,000 $60,000 $50,000 $40,000 $20,800 $24,200 $20,400 $1,000 $30,000 $20,000 $36,000 $39,000 $43,500 $10,000 $0 Beginning Balance Expected Y-T-D Balance Actual Y-T-D Balance Operating Reserve Advances to City Operating Cash

19 WATER UTILITY CAPITAL/EQUIPMENT FUNDING - JUNE 30, 2012 (In $1,000 S) $40,000 $35,000 $30,000 $30.6M $28.2M $25,000 $20,000 $15,000 $10,000 $5,000 $0 Jun-11 Jun-12 Developer fees/others Bond proceeds Rates/reserves Non-Cash Contributions

20 WATER UTILITY - OPERATING RATIO 100% 80% 63.3% 68.8% 66.3% 63.8% 60% 58.1% 55.7% 40% 20% 0% Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 ACTUAL - PRIOR YEAR INDUSTRY MEDIAN (Moody's) ACTUAL - CURRENT YEAR The operating ratio reflects the Utility s Operating and Maintenance Costs to operating revenues. A low ratio indicates positive results. Industry Average = 74.1%

21 WATER UTILITY UNRESTRICTED CURRENT RATIO Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 ACTUAL - PRIOR YEAR INDUSTRY MEDIAN (Moody's) ACTUAL - CURRENT YEAR The Unrestricted Current Ratio indicates the Utility s ability to meet short term liabilities. A higher ratio indicates positive results. Industry Average = 2.5

22 WATER UTILITY - DEBT RATIO 50.0% 45.0% 46.7% 43.7% 43.0% 40.0% 35.0% 30.0% 25.0% 30.3% 38.0% 37.2% 20.0% Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 ACTUAL - PRIOR YEAR ACTUAL - CURRENT YEAR INDUSTRY MEDIAN (Moody's) The Debt Ratio indicates what proportion of debt the Utility has in relation to Utility assets. This ratio is favorable when it is lower. Industry Average = 35.5%

23 WATER UTILITY DEBT SERVICE COVERAGE Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 ACTUAL - PRIOR YEAR INDUSTRY MEDIAN (Moody's) ACTUAL - CURRENT YEAR BOND COVENANTS The Debt Service Coverage is used as a benchmark to measure the Utility s ability to produce enough cash to cover our debt service payments. A higher ratio is more favorable. Industry Mean = 1.86

California Municipal Finance Authority Anaheim Public Utilities Department Electric Revenue Bonds New Issue Report

California Municipal Finance Authority Anaheim Public Utilities Department Electric Revenue Bonds New Issue Report Public Power / U.S.A. Ratings New Issue $110,110,000 CFMA Qualified Obligation Refunding