LINCOLN ELECTRIC SYSTEM Revenue & Expense Statement (Condensed) DECEMBER 2018 PRELIMINARY

YEAR TO DATE LINCOLN ELECTRIC SYSTEM Revenue & Expense Statement (Condensed) DECEMBER 2018 (Dollar amounts in 000) 2018 2018 Percentage Actual Budget Difference Difference 10) Total Revenue $333,101 $320,678 $12,423 4% 11) Power Costs 129,741 136,996 (7,255) -5% generation and expenses. 12) Other Operating Expenses 70,147 85,176 (15,029) -18% 13) Depreciation 51,349 51,221 128 0% 14) Total Expenses 251,237 273,393 (22,156) -8% 15) Operating Income 81,864 47,285 34,579 73% 16) Non-Operating Expense (Income) 39,935 41,407 (1,472) -4% 17) Change in Net Position (Net Revenue) $41,929 $5,878 $36,051 613% Comments On a YTD basis, Retail revenue is slightly above budget. YTD energy use per customer (residential) continues to be notable as it is 8% above 2017. Wholesale revenue is 27.2% above budget YTD primarily due to higher than budgeted sales into the SPP IM as WS4 and TBGS have been called on to generate more than expected / budgeted due to favorable pricing. Produced Power costs are 5% below budget on a YTD basis primarily due to lower than budgeted LRS operation and maintenance costs, partially offset by higher WS4, Rokeby, and TBGS energy costs. Purchased Power costs are 5% below budget primarily due to favorable pricing in SPP IM, lower WS3 energy expenses and lower renewable wind Other Operating expenses (operation & maintenance, administrative & general) are under budget (-18%) due to the timing of project spending in categories including line clearance, wheeling, transmission (balanced portfolio credit), sustainable energy program participation, consulting services, and software purchases. YE Projection Budget 9) Debt Service Coverage 2.80 2.11 Actual Budget 10) Days Cash on Hand (Days) 216 75

FINANCIAL AND OPERATING STATEMENT December 2018 Preliminary LES.com

INDEX REVENUE & EXPENSE STATEMENT - CURRENT MONTH ------------------------------------------------------------- 1 REVENUE & EXPENSE STATEMENT - YEAR-TO-DATE ----------------------------------------------------------------- 2 REVENUES, ENERGY & CUSTOMERS - CURRENT MONTH ----------------------------------------------------------- 3 REVENUES, ENERGY & CUSTOMERS - YEAR-TO-DATE --------------------------------------------------------------- 4 OPERATING EXPENSE STATEMENT - CURRENT MONTH ------------------------------------------------------------- 5 OPERATING EXPENSE STATEMENT - YEAR-TO-DATE ----------------------------------------------------------------- 6 BALANCE SHEET --------------------------------------------------------------------------------------------------------------------- 7 STATEMENT OF CASH FLOWS -------------------------------------------------------------------------------------------------- 8 DEBT SERVICE COVERAGE ------------------------------------------------------------------------------------------------------ 9 INVESTMENT REPORT ----------------------------------------------------------------------------------------------------------- 10 NOTE: Federal Energy Regulatory Commission accounting guidance for the Southwest Power Pool Integrated Market (SPP IM) transactions (purchases, sales and other charges) requires netting together these transactions based on the time increments. If, during the time increment, sales to SPP are greater than purchases from SPP, the net amount is recorded as wholesale revenue. If, during the time increment, purchases from SPP are greater than sales to SPP, the net amount is recorded as purchased power cost. Because of this netting process, the energy (MWH s) amounts no longer directly correlate to wholesale revenue.

REVENUE & EXPENSE STATEMENT DECEMBER 2018 CURRENT MONTH CURRENT CURRENT VARIANCE FROM LAST YEAR VARIANCE FROM DESCRIPTION MONTH MONTH BUDGET MONTH LAST YEAR ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT % OPERATING REVENUES 1. Retail $21,612,326 $20,873,573 $738,753 3.5% $20,463,558 $1,148,768 5.6% 2. Wholesale 3,687,869 3,310,347 377,522 11.4% 3,256,654 431,215 13.2% 3. Other Revenue 744,041 491,251 252,790 51.5% 653,276 90,765 13.9% 4. City Dividend 617,685 613,085 4,600 0.8% 589,109 28,576 4.9% 5. Total Operating Revenues 26,661,921 25,288,256 1,373,665 5.4% 24,962,597 1,699,324 6.8% OPERATING EXPENSES 6. Purchased Power 5,950,792 6,177,424 (226,632) -3.7% 7,381,009 (1,430,217) -19.4% 7. Produced Power 5,268,432 5,456,357 (187,925) -3.4% 6,985,749 (1,717,317) -24.6% 8. Operations 1,599,744 2,423,399 (823,655) -34.0% 977,139 622,605 63.7% 9. Maintenance 638,949 689,015 (50,066) -7.3% 1,035,407 (396,458) -38.3% 10. Administrative & General 2,969,484 3,786,111 (816,627) -21.6% 2,604,310 365,174 14.0% 11. Depreciation 4,293,211 4,340,151 (46,940) -1.1% 4,312,949 (19,738) -0.5% 12. Total Operating Expenses 20,720,612 22,872,457 (2,151,845) -9.4% 23,296,563 (2,575,951) -11.1% 13. OPERATING INCOME 5,941,309 2,415,799 3,525,510 145.9% 1,666,034 4,275,275 256.6% NONOPERATING EXPENSES (INCOME) 14. Interest Expense 2,191,224 2,199,882 (8,658) -0.4% 1,900,414 290,810 15.3% 15. Capitalized Interest (211,720) (266,279) 54,559-20.5% (91,577) (120,143) 131.2% 16. Payments in Lieu of Taxes 962,584 1,006,103 (43,519) -4.3% 992,568 (29,984) -3.0% 17. City Dividend Expense 635,337 635,337 0 0.0% 622,269 13,068 2.1% 18. Other 120 0 120 - - 10,500,000 (10,499,880) -100.0% 19. Total Other Expense 3,577,545 3,575,043 2,502 0.1% 13,923,674 (10,346,129) -74.3% 20. Interest Income (445,872) (245,657) (200,215) 81.5% 19,239 (465,111) -2417.5% 21. Total Nonoperating Expense (Income) 3,131,673 3,329,386 (197,713) -5.9% 13,942,913 (10,811,240) -77.5% 22. Income Before Contributions 2,809,636 (913,587) 3,723,223 407.5% (12,276,879) 15,086,515 122.9% CONTRIBUTED CAPITAL 23. Contributed Capital Received 46,342 107,320 (60,978) -56.8% 51,739 (5,397) -10.4% 24. Contributed Capital Used (46,342) (107,320) 60,978-56.8% (51,739) 5,397-10.4% 25. Net Contributed Capital 0 0 0 - - 0 0 - - 26. CHANGE IN NET POSITION $2,809,636 ($913,587) $3,723,223 407.5% ($12,276,879) $15,086,515 122.9% Page 1

REVENUE & EXPENSE STATEMENT DECEMBER 2018 YEAR-TO-DATE VARIANCE FROM LAST YEAR VARIANCE FROM DESCRIPTION YEAR TO DATE YEAR TO DATE BUDGET YEAR TO DATE LAST YEAR ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT % OPERATING REVENUES 1. Retail $275,719,203 $273,242,307 $2,476,896 0.9% $267,817,933 $7,901,270 3.0% 2. Wholesale 42,267,362 33,238,414 9,028,948 27.2% 38,947,437 3,319,925 8.5% 3. Other Revenue 7,636,258 6,684,691 951,567 14.2% 7,477,273 158,985 2.1% 4. City Dividend 7,478,264 7,512,140 (33,876) -0.5% 7,307,029 171,235 2.3% 5. Total Operating Revenues 333,101,087 320,677,552 12,423,535 3.9% 321,549,672 (5,796,378) 3.6% OPERATING EXPENSES 6. Purchased Power 70,380,380 74,436,173 (4,055,793) -5.4% 82,079,576 (11,699,196) -14.3% 7. Produced Power 59,360,199 62,560,299 (3,200,100) -5.1% 64,415,171 (5,054,972) -7.8% 8. Operations 20,593,627 30,177,917 (9,584,290) -31.8% 22,368,660 (1,775,033) -7.9% 9. Maintenance 7,940,505 8,732,079 (791,574) -9.1% 7,732,482 208,023 2.7% 10. Administrative & General 41,613,233 46,265,793 (4,652,560) -10.1% 40,101,888 1,511,345 3.8% 11. Depreciation 51,349,398 51,221,239 128,159 0.3% 50,953,931 395,467 0.8% 12. Total Operating Expenses 251,237,342 273,393,500 (22,156,158) -8.1% 267,651,708 (16,414,366) -6.1% 13. OPERATING INCOME 81,863,745 47,284,052 34,579,693 73.1% 53,897,964 27,965,781 51.9% NONOPERATING EXPENSES (INCOME) 14. Interest Expense 25,205,330 25,321,729 (116,399) -0.5% 23,062,052 2,143,278 9.3% 15. Capitalized Interest (1,806,065) (2,052,417) 246,352-12.0% (673,061) (1,133,004) 168.3% 16. Payments in Lieu of Taxes 12,661,721 13,467,830 (806,109) -6.0% 13,009,332 (347,611) -2.7% 17. City Dividend Expense 7,519,504 7,519,500 4 0.0% 7,364,842 154,662 2.1% 18. Other (1,149) 0 (1,149) - - 10,502,473 (10,503,622) -100.0% 19. Total Other Expense 43,579,341 44,256,642 (677,301) -1.5% 53,265,638 (9,686,297) -18.2% 20. Interest Income (3,644,554) (2,849,870) (794,684) 27.9% (1,456,413) (2,188,141) 150.2% 21. Total Nonoperating Expense (Income) 39,934,787 41,406,772 (1,471,985) -3.6% 51,809,225 (11,874,438) -22.9% 22. Income Before Contributions 41,928,958 5,877,280 36,051,678 613.4% 2,088,739 39,840,219 1907.4% CONTRIBUTED CAPITAL 23. Contributed Capital Received 906,721 1,287,807 (381,086) -29.6% 935,929 (29,208) -3.1% 24. Contributed Capital Used (906,721) (1,287,807) 381,086-29.6% (935,929) 29,208-3.1% 25. Net Contributed Capital 0 0 0 - - 0 0 - - 26. CHANGE IN NET POSITION $41,928,958 $5,877,280 $36,051,678 613.4% $2,088,739 $39,840,219 1907.4% Page 2

REVENUES, ENERGY & CUSTOMERS DECEMBER 2018 CURRENT MONTH CURRENT CURRENT VARIANCE FROM LAST YEAR VARIANCE FROM DESCRIPTION MONTH MONTH BUDGET MONTH LAST YEAR ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT % REVENUE 1. Residential $9,239,699 $9,040,703 $198,996 2.2% $8,095,142 $1,144,557 14.1% 2. Commercial (a) 8,122,535 8,682,009 (559,474) -6.4% 8,023,081 99,454 1.2% 3. Industrial 2,319,668 2,563,365 (243,697) -9.5% 2,410,534 (90,866) -3.8% 4. Street Light 199,580 194,148 5,432 2.8% 194,478 5,102 2.6% 5. Total Billed 19,881,482 20,480,225 (598,743) -2.9% 18,723,235 1,158,247 6.2% 6. Unbilled Change 1,730,844 393,348 1,337,496 0.0% 1,740,323 (9,479) 0.0% 7. Total Retail 21,612,326 20,873,573 738,753 3.5% 20,463,558 1,148,768 5.6% 8. SPP Sales 2,319,023 1,920,901 398,122 20.7% 2,082,231 236,792 11.4% 9. Contract Sales 1,368,846 1,389,446 (20,600) -1.5% 1,174,423 194,423 16.6% 10. Total Wholesale 3,687,869 3,310,347 377,522 11.4% 3,256,654 431,215 13.2% 11. Total $25,300,195 $24,183,920 $1,116,275 4.6% $23,720,212 $1,579,983 6.7% ENERGY (Megawatt-Hours) 12. Residential 107,177 104,417 2,760 2.6% 92,080 15,097 16.4% 13. Commercial (a) 112,616 121,484 (8,868) -7.3% 111,352 1,264 1.1% 14. Industrial 34,601 39,208 (4,607) -11.8% 36,245 (1,644) -4.5% 15. Street Light 1,531 1,756 (225) -12.8% 1,746 (215) -12.3% 16. Total Billed 255,925 266,865 (10,940) -4.1% 241,423 14,502 6.0% 17. Unbilled Change 27,685 8,838 18,847 0.0% 26,440 1,245 0.0% 18. Total Retail 283,610 275,703 7,907 2.9% 267,863 15,747 5.9% 19. SPP Sales 103,159 81,920 21,239 25.9% 85,173 17,986 21.1% 20. Contract Sales 55,298 54,237 1,061 2.0% 35,033 20,265 57.8% 21. Total Wholesale 158,457 136,157 22,300 16.4% 120,206 38,251 31.8% 22. Total 442,067 411,860 30,207 7.3% 388,069 53,998 13.9% CUSTOMERS 23. Residential 123,693 123,482 211 0.2% 122,210 1,483 1.2% 24. Commercial (a) 16,964 16,864 100 0.6% 16,802 162 1.0% 25. Industrial 176 176 0 0.0% 177 (1) -0.6% 26. Street Light 5 5 0 0.0% 5 0 0.0% 27. Total Retail 140,838 140,527 311 0.2% 139,194 1,644 1.2% 28. Wholesale 7 7 0 0.0% 7 0 0.0% 29. Total 140,845 140,534 311 0.2% 139,201 1,644 1.2% Page 3

REVENUES, ENERGY & CUSTOMERS DECEMBER 2018 YEAR-TO-DATE VARIANCE FROM LAST YEAR VARIANCE FROM DESCRIPTION YEAR TO DATE YEAR TO DATE BUDGET YEAR TO DATE LAST YEAR ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT % REVENUE 1. Residential $125,460,251 $120,124,090 $5,336,161 4.4% $117,303,463 $8,156,788 7.0% 2. Commercial (a) 115,407,546 116,123,887 (716,341) -0.6% 113,751,166 1,656,380 1.5% 3. Industrial 31,487,360 33,213,718 (1,726,358) -5.2% 32,153,969 (666,609) -2.1% 4. Street Light 2,529,622 2,332,986 196,636 8.4% 2,318,590 211,032 9.1% 5. Total Billed 274,884,779 271,794,681 3,090,098 1.1% 265,527,188 9,357,591 3.5% 6. Unbilled Change 834,424 1,447,626 (613,202) 0.0% 2,290,745 (1,456,321) 0.0% 7. Total Retail 275,719,203 273,242,307 2,476,896 0.9% 267,817,933 7,901,270 3.0% 8. SPP Sales 25,595,296 17,113,014 8,482,282 49.6% 24,012,723 1,582,573 6.6% 9. Contract Sales 16,672,066 16,125,400 546,666 3.4% 14,934,714 1,737,352 11.6% 10. Total Wholesale 42,267,362 33,238,414 9,028,948 27.2% 38,947,437 3,319,925 8.5% 11. Total $317,986,565 $306,480,721 $11,505,844 3.8% $306,765,370 $11,221,195 3.7% ENERGY (Megawatt-Hours) 12. Residential 1,308,303 1,229,019 79,284 6.5% 1,196,667 111,636 9.3% 13. Commercial (a) 1,504,735 1,522,147 (17,412) -1.1% 1,477,742 26,993 1.8% 14. Industrial 453,693 495,221 (41,528) -8.4% 470,520 (16,827) -3.6% 15. Street Light 20,482 21,138 (656) -3.1% 21,159 (677) -3.2% 16. Total Billed 3,287,213 3,267,525 19,688 0.6% 3,166,088 121,125 3.8% 17. Unbilled Change 12,052 16,998 (4,946) 0.0% 28,594 (16,542) 0.0% 18. Total Retail 3,299,265 3,284,523 14,742 0.4% 3,194,682 104,583 3.3% 19. SPP Sales 1,040,294 702,003 338,291 48.2% 907,206 133,088 14.7% 20. Contract Sales 607,743 556,805 50,938 9.1% 473,066 134,677 28.5% 21. Total Wholesale 1,648,037 1,258,808 389,229 30.9% 1,380,272 267,765 19.4% 22. Total 4,947,302 4,543,331 403,971 8.9% 4,574,954 372,348 8.1% CUSTOMERS 23. Residential 122,940 122,727 213 0.2% 121,614 1,326 1.1% 24. Commercial (a) 16,906 16,806 100 0.6% 16,687 219 1.3% 25. Industrial 176 176 0 0.0% 176 0 0.0% 26. Street Light 5 5 0 0.0% 5 0 0.0% 27. Total Retail 140,027 139,714 313 0.2% 138,482 1,545 1.1% 28. Wholesale 7 7 0 0.0% 7 0 0.0% 29. Total 140,034 139,721 313 0.2% 138,489 1,545 1.1% Page 4

OPERATING EXPENSE STATEMENT DECEMBER 2018 CURRENT MONTH CURRENT CURRENT VARIANCE FROM LAST YEAR VARIANCE FROM DESCRIPTION MONTH MONTH BUDGET MONTH LAST YEAR ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT % POWER COST 1. SPP Purchased Power $577,656 $556,650 $21,006 3.8% $445,812 $131,844 29.6% 2. Non-Owned Asset Power 5,373,136 5,620,774 (247,638) -4.4% 6,935,197 (1,562,061) -22.5% 3. Total Purchased Power 5,950,792 6,177,424 (226,632) -3.7% 7,381,009 (1,430,217) -19.4% 4. Produced Power 5,268,432 5,456,357 (187,925) -3.4% 6,985,749 (1,717,317) -24.6% 5. Total Power Cost 11,219,224 11,633,781 (414,557) -3.6% 14,366,758 (3,147,534) -21.9% OPERATION & MAINTENANCE (O&M) 6. Energy Delivery 1,679,922 1,841,104 (161,182) -8.8% 1,612,874 67,048 4.2% 7. Transmission 558,771 1,271,310 (712,539) -56.0% 399,672 159,099 39.8% 8. Total O & M Expense 2,238,693 3,112,414 (873,721) -28.1% 2,012,546 226,147 11.2% ADMINISTRATIVE & GENERAL (A&G) 9. Administration 139,075 216,749 (77,674) -35.8% 166,245 (27,170) -16.3% 10. Communication & Corporate Records 134,990 186,320 (51,330) -27.5% 187,041 (52,051) -27.8% 11. Corporate Operations 151,494 410,626 (259,132) -63.1% (695,874) 847,368-121.8% 12. Customer Services 805,438 1,031,162 (225,724) -21.9% 493,941 311,497 63.1% 13. Financial Services 270,187 315,929 (45,742) -14.5% 292,798 (22,611) -7.7% 14. Power Supply 297,734 332,943 (35,209) -10.6% 339,861 (42,127) -12.4% 15. Technology Services 1,170,566 1,292,382 (121,816) -9.4% 1,820,298 (649,732) -35.7% 16. Total A & G Expense 2,969,484 3,786,111 (816,627) -21.6% 2,604,310 365,174 14.0% 17. DEPRECIATION 4,293,211 4,340,151 (46,940) -1.1% 4,312,949 (19,738) -0.5% 18. TOTAL OPERATING EXPENSE $20,720,612 $22,872,457 ($2,151,845) -9.4% $23,296,563 ($2,575,951) -11.1% Page 5

OPERATING EXPENSE STATEMENT DECEMBER 2018 YEAR-TO-DATE VARIANCE FROM LAST YEAR VARIANCE FROM DESCRIPTION YEAR TO DATE YEAR TO DATE BUDGET YEAR TO DATE LAST YEAR ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT % POWER COST 1. SPP Purchased Power $7,667,135 $9,666,618 ($1,999,483) -20.7% $4,998,257 $2,668,878 53.4% 2. Non-Owned Asset Power 62,713,245 64,769,555 (2,056,310) -3.2% 77,081,319 (14,368,074) -18.6% 3. Total Purchased Power 70,380,380 74,436,173 (4,055,793) -5.4% 82,079,576 (11,699,196) -14.3% 4. Produced Power 59,360,199 62,560,299 (3,200,100) -5.1% 64,415,171 (5,054,972) -7.8% 5. Total Power Cost 129,740,579 136,996,472 (7,255,893) -5.3% 146,494,747 (16,754,168) -11.4% OPERATION & MAINTENANCE (O&M) 6. Energy Delivery 21,813,168 24,066,225 (2,253,057) -9.4% 18,479,169 3,333,999 18.0% 7. Transmission 6,720,964 14,843,771 (8,122,807) -54.7% 11,621,973 (4,901,009) -42.2% 8. Total O & M Expense 28,534,132 38,909,996 (10,375,864) -26.7% 30,101,142 (1,567,010) -5.2% ADMINISTRATIVE & GENERAL (A&G) 9. Administration 2,273,991 2,456,125 (182,134) -7.4% 2,279,650 (5,659) -0.2% 10. Communication & Corporate Records 2,161,705 2,863,070 (701,365) -24.5% 1,950,100 211,605 10.9% 11. Corporate Operations 5,556,268 5,643,331 (87,063) -1.5% 4,371,169 1,185,099 27.1% 12. Customer Services 10,145,574 12,051,953 (1,906,379) -15.8% 10,708,620 (563,046) -5.3% 13. Financial Services 3,641,839 4,020,725 (378,886) -9.4% 3,551,652 90,187 2.5% 14. Power Supply 3,792,402 4,050,518 (258,116) -6.4% 3,950,739 (158,337) -4.0% 15. Technology Services 14,041,454 15,180,071 (1,138,617) -7.5% 13,289,958 751,496 5.7% 16. Total A & G Expense 41,613,233 46,265,793 (4,652,560) -10.1% 40,101,888 1,511,345 3.8% 17. DEPRECIATION 51,349,398 51,221,239 128,159 0.3% 50,953,931 395,467 0.8% 18. TOTAL OPERATING EXPENSE $251,237,342 $273,393,500 ($22,156,158) -8.1% $267,651,708 ($16,414,366) -6.1% Page 6

BALANCE SHEET DECEMBER 2018 ASSETS & DEFERRED OUTFLOWS OF RESOURCES LIABILITIES AND NET POSITION END OF VARIANCE END OF VARIANCE DESCRIPTION MONTH SINCE DESCRIPTION MONTH SINCE BALANCE JANUARY 1 BALANCE JANUARY 1 CURRENT ASSETS: CURRENT LIABILITIES: 1. Revenue Fund (including CDFUO) $124,318,278 $67,338,884 OTHER LIABILITIES 2. Payments in Lieu of Taxes Fund $12,134,953 $361,262 1. Accounts Payable $24,771,961 $3,263,210 3. Rate Stabilization Fund 34,453,079 621,883 2. Accrued Payments in Lieu of Taxes 13,096,246 (239,718) 4. Bond Principal & Interest Funds 17,306,081 2,726,960 3. City Dividend for Utility Ownership Payable 2,541,348 52,272 5. Other Restricted/Designated Funds 2,864,398 (110,726) 4. Commercial Paper Notes 65,500,000 (30,000,000) 6. Restricted/Designated Funds Total 54,623,558 3,238,117 5. Accrued Liabilities 12,977,425 1,064,006 7. Total Current Asset Funds 191,076,789 70,938,263 6. MBPP-BNSF-STB Settlement 0 0 8. Receivables Less Uncollectible Allowance 20,427,324 323,653 7. Total Other Liabilities 118,886,980 (25,860,230) 9. Unbilled Revenue 14,921,215 834,425 CURRENT LIABILITIES - RESTRICTED ASSETS 10. Accrued Interest Receivable 1,176,213 825,896 8. Current Portion of Long-Term Debt 22,750,000 3,270,000 11. Materials, Supplies & Fuel Inventory 13,812,536 1,085,715 9. Accrued Interest 9,900,406 1,673,335 12. Plant Operation Assets 12,696,133 (4,306,018) 10. Other Current Liabilities 1,479,469 81,367 13. Other Current Assets 2,844,694 425,391 11. Total Current Liabilities - Restricted Assets 34,129,875 5,024,702 14. Total Current Assets 256,954,904 70,127,325 12. Total Current Liabilities 153,016,855 (20,835,528) NONCURRENT ASSETS: NONCURRENT LIABILITIES: 15. Bond Reserve Funds 19,324,238 2,591,292 13. 2003 Bonds 1,150,000 0 16. Self Funded Benefits Reserve Fund (IBNP) 541,521 9,085 14. 2012-A Bonds 217,020,000 0 17. Segregated Funds 650,489 0 15. 2013 Bonds 75,525,000 0 18. Restricted Fund Total 20,516,248 2,600,377 16. 2015-A Bonds 167,800,000 0 19. Unamortized Debt Expense 2,827,719 569,379 17. 2016 Bonds 80,095,000 (19,480,000) 20. Other Noncurrent Assets 3,426,697 966,985 18. 2018 Bonds 121,205,000 121,205,000 21. Total Noncurrent Assets 26,770,664 4,136,741 19. Total Revenue Bonds 662,795,000 101,725,000 20. Less Current Maturities 22,750,000 3,270,000 CAPITAL ASSETS: 21. Less Unamortized Discounts/Premiums (67,262,348) (13,367,525) 22. Utility Plant in Service 1,568,868,738 47,101,983 22. Note Purchase Agreement 1,500,000 1,500,000 23. Accumulated Depreciation & Amortization (777,209,099) (42,663,705) 23. Revolving Credit Agreement 0 (30,000,000) 24. Construction Work in Progress 142,932,835 27,828,555 24. Net Long Term Debt 708,807,348 83,322,525 25. Total Capital Assets 934,592,474 32,266,833 25. Liabilities Payable from Segregated Funds 646,137 0 26. Other Noncurrent Liabilities 532,436 0 DEFERRED OUTFLOWS OF RESOURCES: 27. Total Liabilities 863,002,776 62,486,997 26. Deferred Loss on Refunded Debt 13,339,677 (2,114,944) NET POSITION: 28. Net Investment in Capital Assets 171,423,966 (52,121,388) 29. Restricted for Debt Service 7,579,707 1,195,323 30. Restricted for Employee Health Insurance Claims 529,927 (405,124) 31. Unrestricted 189,121,343 93,260,147 32. Total Net Position 368,654,943 41,928,958 27. TOTAL ASSETS & DEFERRED OUTFLOWS OF RESOURCES $1,231,657,719 $104,415,955 33. TOTAL LIABILITIES & NET POSITION $1,231,657,719 $104,415,955 Page 7

STATEMENT OF CASH FLOWS DECEMBER 2018 CURRENT MONTH YEAR-TO-DATE CASH FLOW FROM OPERATING ACTIVITIES: 1. Received from Sales to Customers and Users $28,419,895 $350,438,350 2. Paid to Suppliers for Goods & Services (8,667,848) (178,171,856) 3. Paid to Employees for Services (2,695,591) (33,599,599) 4. Cash Flow from Operating Activities (a) 17,056,456 138,666,895 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: 5. Payments in Lieu of Taxes 0 (12,901,441) 6. City Dividend for Utility Ownership Payments 0 (7,467,232) 7. Other 0 1 8. Cash Flow from (used for) Non-capital Financing Activities 0 (20,368,672) CASH FLOWS FROM INVESTING ACTIVITIES: 9. Net (Purchases) Sales of Investments 6,662,702 (69,565,104) 10. Interest Income 402,405 2,543,044 11. Cash Flow from (used for) Investing Activities 7,065,107 (67,022,060) CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: 12. Acquisition and Construction of Capital Assets (12,534,843) (82,232,105) 13. Salvage on Retirement of Plant 1,683 558,863 14. Cost of Removal of Property Retired (184,136) (2,033,623) 15. Debt Issuance Cost Paid 0 (872,230) 16. Debt Premiums Collected 0 19,612,552 17. Net Capital Contributions 46,342 906,720 18. Net Proceeds form Issuance of Long-Term Debt 0 122,705,000 19. Principal Payments on Long-Term Debt 0 (79,480,000) 20. Interest Payments on Long-Term Debt (3,357) (26,743,418) 21. Cash Flow from (used for) Capital Financing Activities (12,674,311) (47,578,241) 22. Net Increase (Decrease) in Cash and Cash Equivalents 11,447,252 3,697,922 23. Cash and Cash Equivalent Beginning of Period 15,692,857 23,442,187 24. Cash and Cash Equivalent End of Period (b) $27,140,109 $27,140,109 STATEMENT OF CASH FLOW FOOTNOTES (a) Reconciliation of operating income to cash flows from operating activities 1. Net Operating Revenue $5,941,309 $81,863,745 2. Noncash items included in operating income 4,382,926 52,438,567 3. Changes in Assets & Liabilities Increase/(Decrease) 6,732,221 4,364,583 4. Net cash flows from operating activities $17,056,456 $138,666,895 (b) Cash and cash equivalents are defined as cash and investments with original maturities of three months or less. Page 8

DEBT SERVICE COVERAGE DECEMBER 2018 -------- CURRENT MONTH ---------- ---------- YEAR-TO-DATE ---------- DESCRIPTION ACTUAL BUDGET ACTUAL ACTUAL BUDGET ACTUAL THIS YEAR THIS YEAR LAST YEAR THIS YEAR THIS YEAR LAST YEAR 1. Total Operating Revenues $26,661,921 $25,288,256 $24,962,597 $333,101,087 $320,677,552 $321,549,672 2. Total Operating Expenses 20,720,612 22,872,457 23,296,563 251,237,342 273,393,500 267,651,708 3. Less Depreciation (4,293,211) (4,340,151) (4,312,949) (51,349,398) (51,221,239) (50,953,931) 4. Operating Expense Net of Depreciation 16,427,401 18,532,306 18,983,614 199,887,944 222,172,261 216,697,777 5. Net Operating Revenue for Debt Service 10,234,520 6,755,950 5,978,983 133,213,143 98,505,291 104,851,895 6. Interest Income (a) 386,375 209,248 45,793 2,958,680 2,412,918 1,214,477 7. Other Income 0 0 0 0 0 0 8. Rate Stabilization Fund 0 0 0 0 0 0 9. AVAILABLE FOR DEBT SERVICE 10,620,895 6,965,198 6,024,776 136,171,823 100,918,209 106,066,372 10. DEBT SERVICE (b) 4,324,651 4,430,034 3,643,886 47,477,490 47,900,645 42,688,957 11. DEBT SERVICE COVERAGE 2.46 1.57 1.65 2.87 2.11 2.48 (a) Excludes interest from Rate Stabilization Fund. (b) Includes Bond Principal & Interest only. Page 9

INVESTMENT REPORT DECEMBER 2018 PURCHASE MATURITY CPN/DCNT (a) CASH PAR FUND / INVESTMENT DATE DATE RATE YIELD EQUIVALENTS SECURITIES VALUE CASH - REVENUE FUND / WORKING FUND $282,402 $282,402 SHORT TERM FEDERAL INVESTMENT TRUST (STFIT) 17,593,600 17,593,600 REVENUE FUND Federated Treasury Obligations Fund * 1.940% 144,451 144,451 Korea Development Bank Commercial Paper 06/28/2018 01/04/2019 2.430% 2.462% 7,403,813 7,500,000 Shinhan Bank NY Branch Commercial Paper 06/28/2018 02/22/2019 2.650% 2.697% 7,368,052 7,500,000 U.S. Treasury Note 06/28/2018 03/15/2019 1.000% 2.220% 7,435,425 7,500,000 Banco Santander SA/NY Commercial Paper 07/26/2018 04/01/2019 2.600% 2.648% 7,482,967 7,620,000 ING (U.S.) Funding LLC Commercial Paper 07/10/2018 04/05/2019 2.530% 2.579% 4,988,869 5,085,000 U.S. Treasury Note 06/28/2018 04/30/2019 1.250% 2.301% 7,434,750 7,500,000 U.S. Treasury Note 06/28/2018 05/15/2019 3.125% 2.311% 7,552,800 7,500,000 Societe Generale Commercial Paper 08/27/2018 05/24/2019 2.570% 2.621% 7,497,643 7,645,000 Bedford Row Funding Corp Commercial Paper 08/28/2018 05/24/2019 2.540% 2.589% 3,433,572 3,500,000 China Construction Bank Corp Commercial Paper 11/20/2018 05/24/2019 2.990% 3.037% 4,923,174 5,000,000 Bank of China (Hong Kong) Commercial Paper 09/21/2018 06/18/2019 2.680% 2.735% 5,761,812 5,880,000 Federal Home Loan Banks Bond 06/29/2018 06/21/2019 1.125% 2.350% 7,411,692 7,500,000 Agricultural Bank of China Ltd. Commercial Paper 10/10/2018 07/05/2019 2.800% 2.860% 7,461,165 7,620,000 U.S. Treasury Note 06/28/2018 07/15/2019 0.750% 2.345% 7,376,979 7,500,000 Banco del Estado de Chile Commercial Paper 10/22/2018 07/19/2019 2.800% 2.860% 7,499,140 7,660,000 Glencove Funding LLC Commercial Paper 11/02/2018 07/19/2019 2.800% 2.858% 5,105,047 5,210,000 Discount \ (Premium) 160,925 Total Revenue Fund 144,451 106,297,825 107,864,451 PILOT FUND Federated Treasury Obligations Fund * 1.940% 11,996 11,996 MUFG Bank, Ltd., NY Branch Commercial Paper 04/20/2018 01/14/2019 2.400% 2.444% 864,219 880,000 J.P. Morgan Securities Commercial Paper 05/18/2018 02/11/2019 2.450% 2.496% 962,059 980,000 J.P. Morgan Securities Commercial Paper 06/20/2018 03/15/2019 2.530% 2.579% 946,825 965,000 Natixis, New York Branch Commercial Paper 07/20/2018 04/05/2019 2.480% 2.525% 1,119,660 1,140,000 Federal Home Loan Banks Bond 03/22/2018 04/08/2019 1.150% 2.120% 990,029 1,000,000 Glencove Funding LLC Commercial Paper 11/20/2018 04/18/2019 2.710% 2.741% 978,896 990,000 Canadian Imperial Holdings Inc Commercial Paper 08/20/2018 04/26/2019 2.440% 2.482% 1,445,191 1,470,000 Bayerische Landesbank, NY Commercial Paper 10/19/2018 04/26/2019 2.640% 2.677% 1,375,665 1,395,000 Credit Agricole CIB Commercial Paper 12/20/2018 04/26/2019 2.720% 2.746% 935,932 945,000 Bedford Row Funding Corp Commercial Paper 09/28/2018 04/29/2019 2.510% 2.548% 1,408,763 1,430,000 U.S. Treasury Note 02/20/2018 04/30/2019 1.625% 2.105% 1,083,869 1,090,000 Discount \ (Premium) 11,849 Total PILOT Fund $11,996 $12,122,957 $12,296,996 (a) Cash and cash equivalents are defined as cash & investments with original maturities of three months or less. * Interest rate as of end of month. Page 10a

INVESTMENT REPORT DECEMBER 2018 PURCHASE MATURITY CPN/DCNT (a) CASH PAR FUND / INVESTMENT DATE DATE RATE YIELD EQUIVALENTS SECURITIES VALUE BOND RESERVE FUNDS Federated Treasury Obligations Fund * 1.940% $99,971 $99,971 Federal National Mortgage Association Bond 05/28/2015 02/01/2019 0.000% 1.650% 1,416,805 1,505,000 Federal Home Loan Mortgage Corporation Bond 06/28/2018 08/15/2019 1.375% 2.400% 2,916,449 2,950,000 Federal National Mortgage Association Bond 09/01/2016 08/28/2019 1.150% 1.150% 355,000 355,000 Federal Home Loan Banks Bond 08/28/2018 08/21/2020 2.625% 2.630% 2,344,766 2,345,000 Federal National Mortgage Association Bond 09/01/2016 08/28/2020 1.400% 1.400% 1,400,000 1,400,000 Federal National Mortgage Association Bond 09/01/2016 08/28/2020 1.400% 1.400% 2,340,000 2,340,000 Federal Home Loan Banks Bond 03/14/2018 08/28/2020 2.400% 2.400% 3,750,000 3,750,000 Federal National Mortgage Association Bond 06/28/2018 06/28/2021 2.800% 2.800% 4,600,000 4,600,000 Discount \ (Premium) 101,247 Total Bond Reserve Funds 99,971 19,224,267 19,344,971 BOND PRINCIPAL & INTEREST FUNDS Federated Treasury Obligations Fund * 1.940% 5,916 5,916 ERP Operating LP Commercial Paper 10/31/2018 02/07/2019 2.670% 2.690% 2,436,974 2,455,000 Bayerische Landesbank, NY Commercial Paper 09/28/2018 02/25/2019 2.530% 2.557% 2,399,436 2,425,000 Cigna Corporation Commercial Paper 11/30/2018 02/25/2019 3.020% 3.042% 2,432,119 2,450,000 CNPC Finance HK Ltd. Commercial Paper 12/28/2018 02/26/2019 3.050% 3.066% 2,442,520 2,455,000 CNPC Finance HK Ltd. Commercial Paper 12/28/2018 03/08/2019 3.050% 3.068% 1,938,435 1,950,000 JP Morgan Securities LLC Commercial Paper 10/31/2018 07/26/2019 2.900% 2.964% 1,878,549 1,920,000 International Bank for Reconstruction and Dev Note 09/28/2018 08/15/2019 0.875% 2.610% 1,866,569 1,895,000 Glencove Funding LLC Commercial Paper 11/30/2018 08/26/2019 2.950% 3.016% 1,897,236 1,940,000 Discount \ (Premium) 8,326 Total Bond Principal & Interest Funds 6,818,990 10,487,090 17,495,916 RATE STABILIZATION FUND Federated Treasury Obligations Fund * 1.940% 7,965 7,965 Federal Farm Credit Banks Bond 06/29/2017 06/12/2019 1.375% 1.391% 5,048,485 5,050,000 Federal National Mortgage Association Bond 12/11/2017 11/26/2019 1.750% 1.820% 1,729,662 1,732,000 Federal Home Loan Mortgage Corporation Bond 01/30/2018 11/27/2019 1.750% 2.150% 8,091,809 8,150,000 Federal Farm Credit Banks Bond 12/20/2017 12/12/2019 0.500% 1.916% 5,135,888 5,140,000 Federal Farm Credit Banks Bond 01/12/2018 01/10/2020 100.500% 1.970% 2,549,006 2,550,000 Federal Farm Credit Banks Bond 06/29/2018 06/11/2020 100.500% 2.580% 5,197,014 5,200,000 Federal Home Loan Banks Bond 12/17/2018 09/18/2020 200.500% 2.860% 6,658,002 6,665,000 Discount \ (Premium) 35,249 Total Rate Stabilization Fund $7,965 $34,445,115 $34,494,965 (a) Cash and cash equivalents are defined as cash & investments with original maturities of three months or less. * Interest rate as of end of month. Page 10b

INVESTMENT REPORT DECEMBER 2018 PURCHASE MATURITY CPN/DCNT (a) CASH PAR FUND / INVESTMENT DATE DATE RATE YIELD EQUIVALENTS SECURITIES VALUE SELF-FUNDED HEALTH & DENTAL CLAIMS FUND Federated Treasury Obligations Fund * 1.940% $1,393,352 $1,393,352 Discount \ (Premium) Total Self-Funded Health & Dental Claims Fund 1,393,352 0 1,393,352 SELF-FUNDED HEALTH & DENTAL RESERVE FUND (INCURRED BUT NOT PRESENTED) Federated Treasury Obligations Fund * 1.940% 541,521 541,521 Discount \ (Premium) Total Self-Funded Health & Dental Reserve Fund 541,521 0 541,521 SEGREGATED ACCOUNT Federated Treasury Obligations Fund * 1.940% 245,861 245,861 U.S. Treasury Bill 06/29/2018 06/20/2019 2.231% 2.300% 1,271,321 1,300,000 Federal National Mortgage Association Bond 12/17/2018 10/17/2019 1.100% 2.701% 197,378 200,000 U.S. Treasury Note 09/17/2018 12/31/2019 1.875% 2.661% 405,949 410,000 Discount \ (Premium) 1,026 Total Segregated Account 245,861 1,875,674 2,155,861 TOTAL $27,140,109 $184,452,928 $213,464,035 (a) Cash and cash equivalents are defined as cash & investments with original maturities of three months or less. * Interest rate as of end of month. Page 10c

December 2018 Year to Date Financial Update Headline: December Financials reflect strong positive financial performance due primarily to lower net power and transmission costs paired with higher than budgeted revenues. Laura L. Kapustka Vice President & CFO Administrative Board January 18, 2019 LES.com 1

Retail sales ending year at $275M only slightly above budget of $272M Dollars in Millions $120 $100 $80 $60 $40 Budget, $120.1 Actual $125.5 Last Year, $117.3 Budget, $116.1 Actual $115.4 Last Year, $113.8 $20 $0 Budget Actual $31.5 Last Year Actual $2.5 Residential Commercial Industrial Streetlight Excludes Unbilled Revenue LES.com 2

Average Annual Residential Use Per Customer (KWh) Residential Energy Use Per Customer an anomaly? 920 900 880 860 840 820 800 780 906 898 884 880 866 862 855 840 838 829 820 760 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3 3

Year-end Capital projected to be below budget by $8.5M (Budget was $91M) Dollars in Thousands $3,000 $2,000 $1,000 $0 -$1,000 -$2,000 -$3,000 -$4,000 -$5,000 LES Operations Center $29.4M $2,242 Employee tours & punch list walk throughs have been a 4 th qtr. focus. Support staff will settle in early in Feb. Over budget position due to moving ahead with Phase 2 footings & foundations. Laramie River Station $17.6M Updated cashflow reflects reduced costs for SCR project -$4,311 SE Lincoln Reliability Project $6.4M Lower construction costs -$1,739 Underground Projects $13.3M Less activity due to weather and delayed county project -$2,254 Balance of Budget $24.3M Acceleration and delay of Substation and Technology Service projects -$2,460 *Does not include potential year-end adjustments. LES.com 4

Below Budget net power costs and transmission costs key to year-end Debt service coverage 2018 Budget = 2.11 Increases to DSC.34 Net Power Cost: Increased wholesale revenue (greater sales to SPP) ($9.0M), lower purchased power ($4.0M) expenses & lower maintenance costs at LRS ($2.7M), other produced power savings ($0.6M). Lower SPP Transmission Expense.32 Operations & Maintenance / Administrative & General: lower transmission costs ($8.1M), lower SEP participation ($1.5M) and various other expense categories under budget ($5.2M)..05 Retail Revenue: Increased use per customer ($2.5M)..04 Other: Lower debt service & expenses in other categories ($1.9M). Decreases to DSC.03 Net Position: Transfer of SEP Funds from General Fund to Rate Stabilization Fund ($1.5M)..03 Administrative & General: True-up of Sick Leave liability balance ($1.5M). 2018 Forecast = 2.80 5 5

What does 2.80 Debt Service Coverage mean to LES customers? Eliminated $70M long-term borrowing next borrowing 2025 (based on current projections) Interest expense reduction of over $45M ($90M when include coverage impact) 1% rate increase eliminated (permanently) 250 200 150 100 50 Days Cash on Hand $20.5M Borrowing $50M Borrowing 0 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 As of Dec 2018 As of Jan 2018 Target LES.com 6

Not quite 2018 is over right? Will it ever be? Today s presentation are preliminary results Working on the 13 th Period Unique & non-routine adjustments are separated from December operations Timeliness of reporting Period 13 results in unaudited financials Period 14-16 (just kidding) BKD s review results in audited financials Annual report presented to Board at end of April (That s when the fat lady sings and 2018 is in the history books!) LES.com 7