WESTERN GENERATION AGENCT

Transcription

1 WESTERN GENERATION AGENCT Wauna Cogeneration Project Third Quarter Financial Statements -September 30, 20i8

2 WAUNA COGENERATION PROJECT FINANCIAL STATEMENTS Tlie following financial statements represent the financial position of the Western Generation Agency as of September 30, 2018, and the changes in its financial position and its cash flows for the nine months then ended. The Western Generation Agency has implemented a system of internal accounting procedures and controls to meet its responsibility for the integrity and objectivity of its financial statements related to the Wauna Cogeneration Project. The following financial statements have been prepared in conformity to generally accepted accounting principles for utilities and reflect, in the opinion of the Agency, a fair statement of the Agency's financial condition through the third quarter of Ow^ - Barbara Haas, Treasurer Western Generation Agency October 18, 20i8

3 STATEMENTS OF NET POSITION SEPTEMBER 30, 2018 AND 2017 ASSETS & DEFERRED OUTFLOWS OF RESOURCES DIFFERENCE CURRENT ASSETS Cash and Cash Equivalents Receivable Prepaid Expenses 732, , , 158, , 218, , , (485, ) 676, (1, ) TOTAL CURRENT ASSETS 2, 339, , 150, , RESTRICTED CASH AND INVESTMENTS Debt Service-Series A Debt Service Reserve -Series A EWEB Preferred Equity Fund Maintenance Fund TOTAL RESTRICTED CASH AND INVESTMENTS 2, 765, , 184, , , 204, , 568, , 184, , , , 442, , (257, ) (177, ) (238, ) PLANT IN SERVICE Plant in Service LESS: Accumulative Depreciation NET PLANT IN SERVICE 67, 350, (60,290, ) 7, 059, , 350, (57, 466, ) 9, 883, (2, 824, ) (2, 824, ) OTHER ASSETS Other Regulatory Asset Unamortized Bond Costs, Net 282, , , , (113, ) (70, ) TOTAL OTHER ASSETS 442, , (184, ) TOTAL ASSETS $ 17, 045, $ 20, 103, $ (3, 057, ) LIABILITIES & NET POSITION CURRENT LIABILITIES Accounts Payable Accrued Interest Bonds Payable, Current Portion TOTAL CURRENT LIABILITIES 330, , , 500, , 970, , , , 185, , 012, (316, ) (39, ) 315, (41, ) PREFERRED DIVIDEND PAYABLE 22, (22, ) LONG TERM DEBT, net of current portion 7, 673, , 152, (3, 479, ) TOTAL LIABILITIES 11,643, , 187, (3, 543, ) NET POSITION Net Investment in Capital Assets Restricted For: Debt Service and Reserve Major Maintenance Unrestricted (3, 954, ) 6, 949, , , 151, (4, 223,408.53) 7, 010, , , 697, , (60, ) (177, ) 454, TOTAL NET POSITION 5, 401, , 916, , TOTAL LIABILITIES AND NET POSITION $ 17, 045, $ 20, 103, $ (3, 057,845.59) Unaudited - For Internal Use Only.

4 STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018 AND THE NINE MONTHS ENDED SEPTEMBER 30, 2018 AND rd Qtr AMOUNT Y-T-D AMOUNT 2017 Y-T-D AMOUNT Y-T-D DIFFERENCE OPERATING REVENUES Power Sales $ 2, 176, $ 7, 423, $ 7, 367, $ 56, OPERATING EXPENSES Operators Fee Fuel Expense Electricity Expense Major Maintenance Expense Scheduling & Balancing Expense Administrative Expense Professional Services Insurance Expense General Expense Depreciation Expense Property Taxes Expense Steam Efficiency Payment TOTAL OPERATING EXPENSES 49, , , , , , , , , , ,425, , , , 087, , , , , , , , 118, , , , 595, , , , 033, , , , , , , , 118, , , , 464, , (66,346.00) 53, (805,227.58) 1, (2, ) (45, ) (2, ) (107.00) (838.53) (3, ) (869, ) INCOME FROM OPERATIONS 750, , 828, , 902, ,998,84 OTHER INCOME Investment Earnings 5, , , , OTHER EXPENSES Interest Expense and Related Amortization Interest Expense on Cumulative Preferred Dividend 163, , , , , , (119,437.49) (32, ) TOTAL OTHER EXPENSES 165, , , (151, ) NET INCOME BEFORE CUMULATIVE PREFERRED DIVIDEND 591, , 349, , 268, , 080, Cumulative Preferred Dividend NET INCOME 1, $ 589, , ,296, , , 153, (62, ) 1, 143, Total Net Position, beginning of year Distributions Preferred Equity Distributions 5, 917, (1, 258, ) (1, 553, ) 4, 867, (507, ) 1, 049, (751, ) (1, 553, ) TOTAL NET POSITION $ 5, 401, $ 5, 513, $ (112, ) Unaudited - For Internal Use Only.

5 STATEMENT OF CHANGES IN NET POSTITION FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 FOR THE YEAR ENDED DECEMBER 31, 2017 Eugene Water & Electric Board Preferred Equity Capital Clatskanie People's Utility District Capital Totals Balance as of December 31, 2016 $ 2, 150, , 358, , 358, ,867, Preferred Equity Distributions (597, ) Members Distributions Income (253, ) 1, 077, (253, ) 1, 077, (597, ) (507, ) 2, 154, Balance as of December 31, , 553, , 181, , 181, , 917, Preferred Equity Distributions (1, 553, ) Members Distributions Income (629, ) 1, 148, (629, ) 1, 148, (1, 553, ) (1, 258, ) 2, 296, Balance at September 30, 2018 $ $ 2, 700, $ 2, 700, $ 5, 401, Unaudited - For Internal Use Only.

6 STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017 Cash Flows from Operating Activities Receipts from EWEB Payments to Georgia Pacific Payment for Administrative and General Cost Net cash from operating activities $ 7, 004, (1, 971, ) (392, ) 4, 641, $ 8, 367, (2, 578,609.45) (444, ) 5, 344, Cash Flows from Investing Activities Proceeds from Investments Interest Received on Investments Net cash from investing activities 14, , , , Cash Flows from Capital and Related Financing Activities Interest Payments on Bonds Bond Principal Payments Preferred Equity Dividends and Interest Equity Distributions Net cash used in capital and related financing Change in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (640, ) (3, 185, ) (112, ) (2, 812, ) (6, 750, ) (2, 094, ) 10, 031, $ 7, 936, (804, ) (3, 385, ) (2, 307,843.50) (1, 104,594.40) (7, 602,312.90) (2, 246, ) 10, 907, $ 8, 661, Reconciliation to Balance Sheet Cash and Cash Equivalents Restricted Cash Equivalents $ 732, , 204, $ 7, 936, $ 1, 218, , 442, $ 8, 661, Reconciliation of operating income to net cash from operating activities: Net Operating Revenue Adjustments to reconcile operating income to net cash from operating activities: Depreciation (Increase) decrease in assets: Receivable Regulatory Asset Prepayments and current assets Increase (decrease) in liabilities: Accounts Payable & Accrued Liabilities Net cash from operating activities $ 2, 828, , 118, (296, ) 84, , (133, ) $ 4, 641, $ 1, 902, , 118, , 027, , , , $ 5, 344, Unaudited - For Internal Use Only.

7 WAUNA COGENERATION PROJECT Management Discussion of Operations July 1 to September 30, 2018

8 WAUNA COGENERATION PROJECT MANAGEMENT DISCUSSION OF OPERATIONS The following discussion provides an overview of the operation of the Wauna Cogeneration Project (Project) between July 1, 2018 and September 30, Turbine-Generator. The Turbine-Generator operated well during the third quarter of The unit experienced two minor outages during the quarter. One was found to be due to a loose wire on a speed probe. This issue was corrected quickly. The second outage was caused by a lack of steam load at the mill during a recovery boiler fan wash. The T/G unit was offline for almost 46 hours during this event. Overall, the unit operated for 2, 162 out of 2,208 hours this quarter. No other issues were observed or reported with unit operation during the quarter. Wauna CoGeneration Project 2018 Production 3rd Quarter 12, , '- 11, , , , , , , , , " 8, July-18 August-18 September-18

9 The Project produced 31, megawatt hours (MWh) of electricity in the third quarter of As a comparison, for the second quarter of 2018, 29, MWh of electricity were produced, and for the third quarter of 2017, 33, MWh of electricity were produced. The unit availability for the third quarter of 2018 was %. Fluidized Bed Boiler (FEB). The fluidized bed boiler continues to operate successfully. Future Expected Operation. No additional unit maintenance outages are scheduled for A scheduled mill outage in November for a boiler wash may take the unit down for two days. No additional outages are anticipated in 2018.