Austin Energy Quarterly Financial Report

Transcription

1 Item 10 Austin Energy Quarterly Financial Report Second Quarter Fiscal Year 2018 January - March Electric Utility Commission May 21, 2018

2 Disclaimer This information is unaudited and should be read in conjunction with the audited Comprehensive Annual Financial Reports for the City of Austin, when published on nance/main.cfm 2

3 Agenda Executive Summary Financial Policy Compliance QUARTERLY Financial Report Financial Performance Measures Actual to Budget Analysis Balance Sheet Snapshot Market and Industry Analyses 3

4 Executive Summary About Us Substantially compliant with all financial policies Our Mission & Vision Generally meet financial metrics supporting AA credit rating. Our $ 618 Revenue Marketing Plan Balance sheet is liquid and adequately capitalized. Million Revenues Operating revenues exceed budget by 0.4% mostly due to slightly higher consumption. Our $ 479 Targets Million Expenses Operating expenses exceed budget by 1.1% due to higher Power Supply and Customer Care expenses. Operating Plan Residential bills are affordable and representative of customers by district. 4

5 Financial Policy Compliance Financial policies are memorialized and adopted by ordinance each year during the budgeting process. Compliance Debt Reserves Operating Non-Compliance Debt Policies Reserves Policies Operating Policies Full Compliance Partial Compliance Full Compliance Power Supply and Capital Reserve balances below minimums but total cash above minimum of $410m 5

6 Financial Performance Measures AA Standard & Poor s Global Ratings Achieved November 2016 Excessive Liquidity Coverage Efficiency Leverage Deficient Days Cash on Hand Debt Service Coverage Ratio Operating Margins Debt to Capitalization Minimum > 150 Days Minimum > 2.0 Minimum > 10% Minimum < 50% Actual 216 Days Actual 3.9 Actual 9.7% Actual 44.2% Excludes General Fund Transfer 6

7 Financial Performance Measures Austin Energy s Affordability Goal has two metrics. Compliance Affordability Competitiveness Non-Compliance Affordability Metric Competitiveness Metric Full Compliance Since 2013 Non-Compliance Since 2015 Maintain system average rates at or below 2% annual compound growth rate that began October Maintain an average annual system rate in the lower 50% of all Texas utilities serving residential, commercial and industrial customers as measured by published data from the Energy Information Administration (EIA) Form

8 Actual to Budget Analysis $300 Budget Based Operating Revenues Fiscal Year Through March 31, 2018 $250 Millions of $ $200 $150 $100 $50 $0 Billed Base Power Supply Regulatory Transmission Miscellaneous Community Benefit Actual Budget 8

9 Actual to Budget Analysis Millions of $ $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 Budget Based Operating Expenses Fiscal Year Through March 31, 2018 Actual Budget 9

10 Budget Based Fund Summary Fiscal Year Through March 31, 2018 Actual to Budget Analysis Variance to Budget Favorable (Unfavorable) Millions of $ Actual Budget Amount % Prior Year Actual Variance to Prior Year Favorable (Unfavorable) Amount % Operating Revenues $617.7 $614.9 $ % $623.6 ($5.9) (1.0%) Operating Expenses (5.4) (1.1%) % Operating Income (Loss) $138.7 $141.3 ($2.6) (1.9%) $118.7 $ % Interest Revenue % % Debt Service (41.0) (40.3) (0.7) (1.8%) (43.7) % Income (Loss) Before Transfers $102.5 $102.7 ($0.2) (0.2%) $77.7 $ % Administrative Support (13.0) (13.0) 0 0% (12.9) (0.1) (1.0%) General Fund (54.5) (54.5) 0 0% (54.0) (0.5) (0.9%) Economic Development (3.4) (3.4) 0 0% (3.7) % CTM Fund (4.3) (4.3) 0 0% (3.9) (0.4) (12.1%) Other City Transfers (1.1) (1.1) 0 0% 0 (1.1) 0% Internal Transfers / CIP (64.3) (64.3) 0 0% (32.0) (32.3) (100.8%) Excess (Deficiency) of Revenues ($38.1) ($37.9) ($0.2) (0.6%) ($28.8) ($9.3) (32.4%) 10

11 Actual to Budget Analysis 1,600 Actual to Budget Retail Electric kwh Sales Gigawatt Hours (Gwh) 1,400 1,200 1, Actual Budget 11

12 Actual to Budget Analysis Millions of $ $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Actual to Budget Non-Power Supply Revenues Actual Budget 12

13 Actual to Budget Analysis Millions of $ $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Actual to Budget Power Supply Actual Cost Budget PSA Revenue 13

14 Actual to Budget Analysis Capital Improvement Plan Summary Type of Financing Type of Project $13.4 Distribution $29.3 $35.3 Cash Debt Contributions in Aid of Construction On-Site Energy Transmission Joint Projects General Substations Power Production $0 $20 $40 $60 $80 $100 Millions of $ FY 2018 Spend Plan Year-to-Date 14

15 GAAP Financial Summary Comparative Statement of Net Position $ in Millions 3/31/2017 3/31/2018 Change Cash $363 $389 $26 Accounts Receivable (net) (11) Other Under-Recoveries 17 7 (10) Debt Service Contingency Reserve Power Supply Stabilization Reserve Capital Reserve Nuclear Decommissioning Reserve Other Restricted Assets Other Assets Capital Assets 2,599 2,591 (8) Total Assets $4,374 $4,458 $84 Income Statement 6 Months Ending $ in Millions 3/31/2017 3/31/2018 Operating Revenues $423 $430 Power Supply Revenues Power Supply Expenses Non-Power Supply Expenses Depreciation Expense Operating Income/(Loss) $59 $60 Other Revenue (Expense) $(10) $1 General Fund Transfer Net Income/(Loss) $(5) $7 Debt Service Coverage Debt Equity Ratio 44% 44% Current Liabilities $121 $127 $6 Power Supply Over-Recovery (23) Other Over-Recoveries 14 8 (6) Revenue Bonds 1,327 1,284 (43) Commercial Paper Other Long-Term Liabilities Average Number of Customers 468, ,401 Total Sales in Gigawatt Hours 5,867 5,976 Retained Earnings 1,826 1, Total Liabilities and Fund Equity $4,374 $4,458 $84 Q Q Q Q

16 Actual to Budget Analysis Power Generation Cost by Fuel Type Consumption vs. Generation (GWh) 5.0% 21.0% 15.0% 59.0% 8,000 6,000 4,000 2, ,134 Consumption 7, ,819 1,960 2,444 Generation 3,000 Renewables Coal Nuclear Natural Gas *Costs include fuel for generation, fuel transportation, renewable Power purchases agreements and hedging activity. Historical Q2 System Peak Demand (MW) Renewables Coal Nuclear Natural Gas Renewable Power as Percent of Consumption 2,800 2,600 2,400 2,246 2,385 2,257 2,381 Renewables 40% 2,200 2, % Non-renewables 16

17 Market and Industry Analyses Residential Affordability Often times Austin Energy cites the average residential use as a proxy. But is it representative of the customers in your district and is it affordable? 17

18 Consumption Correlates to Bill 2016 Monthly Average Residential Usage (kwh/customer) 2016 Monthly Average Residential Bill ($/Customer) EL PASO ELECTRIC CO 637 EL PASO ELECTRIC CO $79.30 AUSTIN ENERGY 861 AUSTIN ENERGY $91.80 SOUTHWESTERN PUBLIC SERVICE CO 944 SOUTHWESTERN PUBLIC $94.72 GREEN MOUNTAIN ENERGY 970 CITY OF NEW BRAUNFELS - (TX) $ CITY OF SAN ANTONIO - (TX) 1,114 GREEN MOUNTAIN ENERGY $ BROWNSVILLE PUBLIC UTILITIES 1,119 SOUTHWESTERN ELECTRIC $ RELIANT ENERGY RETAIL SERVICES 1,160 BOUNCE ENERGY, INC. $ TEXAS 1,168 BROWNSVILLE PUBLIC UTILITIES $ SOUTHWESTERN ELECTRIC POWER CO 1,175 CITY OF SAN ANTONIO - (TX) $ TXU ENERGY RETAIL CO LP 1,180 ENTERGY TEXAS INC. $ BLUEBONNET ELECTRIC COOP, INC 1,192 PEDERNALES ELECTRIC COOP, INC $ BOUNCE ENERGY, INC. 1,196 BLUEBONNET ELECTRIC COOP, INC $ PEDERNALES ELECTRIC COOP, INC 1,213 AMIGO ENERGY $ CITY OF NEW BRAUNFELS - (TX) 1,218 TEXAS $ NUECES ELECTRIC COOPERATIVE 1,244 RELIANT ENERGY RETAIL SERVICES $ ENTERGY TEXAS INC. 1,266 TXU ENERGY RETAIL CO LP $ AMIGO ENERGY 1,299 NUECES ELECTRIC COOPERATIVE $ ,0001,2001,400 $0.00 $50.00 $ $ $

19 Residential Consumption Map 2017 Average Residential kwh I Lake Travis West Lake & Rollingwood Downtown W.E. Long Lake 290 Residential customers use energy in different amounts. The darker the Red the higher the use. ABIA 71 The darker the Green the lower the use. 19

20 FY2017 Residential Bill Distribution Thousands Overall : 854 D9 : 675 D3 : 675 D7 : 691 D6 : 718 D5 : 761 D4 : 724 D1 : 792 D2 : 856 D8 : 878 D10 : 996 In 8 of the 10 districts, the district average is below the system average Outside : T1 T2 T3 T4 T5 20

21 System Residential & District Average Average kwh per Bill 3,000 2,500 2,000 1,500 1,000 In most districts, 75% of the customers have similar consumption D1 D2 D3 D4 D5 D6 D7 D8 D9 D10 Out District Average Utility wide average The gray box displays where 75% of customer s consumption falls 21

22 QUESTIONS? 22