Quarterly Financial Reports provided to the Task Force — original pdf
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Austin EnergyAustin EnergyFinancial Updatep3rd Quarter ended June 30, 20101 2010 Q3 Financial Results($ millions)Amended Budget2009-10CYE2009-10AllotmentQ3 FY 10Actual Q3FY 10DifferenceActual to AllotmentBeginning Balance$174.8 $237.3$174.8$237.3$62.5 Revenue$1,242.3 $1,194.7$856.8$783.5 ($73.3) Transfers In2.0 2.02.0 2.00.0Total Available Funds$1,244.3 $1,196.7$858.8 $785.5 ($73.3) Operating Operating Requirements928.8 888.5674.9621.6 53.3Debt Service178.6 171.2111.6 106.5 5.1Tf Ot2050205016481649(01)Transfers Out205.0205.0164.8164.9(0.1)Total Requirements$1,312.4 $1,264.7$951.3$893.0 $58.3Excess(Deficiency)(681)(680)(925)(1075)(150)Excess(Deficiency)(68.1)(68.0)(92.5)(107.5)(15.0)Ending Balance$106.7 $169.4$82.3 $129.8$47.52 2010 Q3 Revenue Highlights8,427 8,234 8,324 8,320 8,000 10,000 $1,000$1,250$8068$856.8Total Revenue (in millions) & Billed GWh Sales$8082$413.0$403.1$405.4$404.6$260.9 $305.3 $291.5 $348.7 $134.3 $98.4 $86.6 $103.5 2,000 4,000 6,000 $250$500$750GWh$806.8$783.5$808.2SiABNflR$$$$-$0FY 2008 YTD Q3 2009 YTD Q32010 YTD Q32010 YTD Q3 EstimateBase Revenue ( in Millions)Fuel RevenueOther RevenueBilled GWh SalesService Area Base or Non-fuel Revenue•49% of total revenue or $603.6 million annual budget•$405.4 million Q3 exceeds budget allotment by $0.8 million and $2.3 million over same period prior yearFuel Revenue $57.2 million below budget allotment•39% of total revenue or $480.3 million annual budget•$291.5 million Q3 below budget allotment by $57.2 million and $13.3 million lower than same period prior yearBilled sales at 8,324.0 gigawatt hours (GWh)•89.7 GWh higher than FY 2009 Q3 actual of 8,234.33 2010 Revenue Q3 and CYECategoryQ3 Current Q3 PriorQ3 Current vs. PriorAmended Budget Year End EstimateEstimate vs. BudgetServiceAreaBaseService Area Base Revenue405,420,061$ 403,097,084$ 2,322,977$ 603,577,198$ 613,345,143$ 9,767,945$ Fuel & Green Choice Revenue291,518,838305,310,177(13,791,339)480,298,920440,522,623(39,776,297)Transmission Service Revenue43,636,58742,629,8981,006,68957,620,70957,620,7090Other Revenue36,953,88444,799,117(7,845,233)90,282,61776,270,887(14,011,730)Interest Income5,938,44210,965,743(5,027,301)10,479,9996,944,097(3,535,902)783467812$806802019$(23334207)$1242259443$1194703459$(47555984)$Total Revenue783,467,812$ 806,802,019$ (23,334,207)$ 1,242,259,443$ 1,194,703,459$ (47,555,984)$ Transfers In2,000,00043,215,000(41,215,000)2,000,0002,000,00004Total Available Funds785,467,812$ 850,017,019$ (64,549,207)$ 1,244,259,443$ 1,196,703,459$ (47,555,984)$ 2010 Q3 Requirements HighlightsTotal Operating Requirements in (millions)$3088$2955$347.3$750$1,000$1,250$906.0$893.0$951.2$821.4$276.1$302.3$326.1$327.8$285.5$308.8$295.5$347.3$259.8$294.9$271.4$276.1$0$250$500$750Total Requirements $59.8 million under budget allotment$0FY 2008 Q3FY 2009 Q3FY 2010 Q3 ActualFY 2010 Q3 EstimatedNon-Fuel RequirementsTransfers OutFuel○Fuel costs $51.8 million lower due to commodity pricing○Non-fuel costs $3.0 million lower than budget allotmentConservation rebates above allotment due to high demandConservation rebates above allotment due to high demandQ2 unplanned nuclear outage increased operating costsBudget savings in other operating areas○Debt Service $5.1 million lower than budget allotment•Issued less commercial paper than planned5 2010 Requirements Q3 and CYECategoryQ3 Current Q3 PriorQ3 Current vs. PriorAmended Budget Year End EstimateEstimate vs. BudgetFuel Expense295,471,086$ 308,763,797$ 13,292,711$ 501,298,920$ 462,222,623$ 39,076,297$ Non-Fuel O&M166,946,360166,805,404(140,956)231,694,730228,426,6353,268,095Transmission Service 46,104,10842,999,214(3,104,894)63,938,86663,938,8660Conservation6,145,1286,236,48691,3589,901,9409,161,188740,752ConservationRebatesConservation Rebates & Incentives12,744,72510,560,193(2,184,532)15,796,47417,398,188(1,601,714)Nuclear & Coal Plants O&M74,414,61660,842,911(13,571,705)81,060,47181,031,99128,480Other Operating Requirements20,031,80814,886,309(5,145,499)25,405,62226,605,889(1,200,267)TotalOperatingTotal Operating Requirements621,857,831611,094,314(10,763,517)929,097,023888,785,38040,311,643Debt Service 106,482,196115,098,8188,616,622178,586,493171,172,1717,414,322Transfer to Electric CIP44,952,638103,287,79358,335,15559,710,00059,710,0000General Fund Transfer75,750,00071,250,000(4,500,000)101,000,000101,000,0000Other Transfers44,000,0005,302,849(38,697,151)44,000,00044,000,0000Total Department Expenditures893,042,665$ 906,033,774$ 12,991,109$ 1,312,393,516$ 1,264,667,551$ 47,725,965$ 6 Questions?7 Austin EnergyAustin EnergyFinancial UpdatepYear Ended September 30, 20101stQuarter Fiscal Year 20111Quarter Fiscal Year 20111 Austin Energy –2010 Highlights•Year of Transition –New General Manager September 27•Major AccomplishmentsEnergyResourcePlanto2020approvedpendingaffordabilitytool•Energy Resource Plan to 2020 approved pending affordability tool •Sand Hill Energy Center 100 MW peaking capacity online •Maintained bond credit ratings PlidlhfRtRi•Planning and launch of Rate Review •International Organization for Standardization (ISO 9001) Quality Management ProgramCtCflltifid•Customer Care successfully certified•Electric Service Delivery recertified•Successful Transmission Operator compliance audits NthAiEltiRlibilit(NERC)•North American Electric Reliability (NERC)•Texas Reliability Entity (TRE)•Preparations for December 1 Nodal Market conversion2 2010 Performance & HistoryReliability •SAIFI -System Average 1201.40sSystem Average Interruption Frequency IndexInterruption Frequency Index•Goal = 0.8 interruptions•Industry average of 1.1 interruptions0.200.400.600.801.001.20Interruptionsinterruptions•SAIDI–SystemAverageSystem Average Interruption Duration Index0.002006 Actual2007 Actual2008 Actual2009 Actual2010 ActualResultGoalSAIDI System Average Interruption Duration Index•Goal = 60 Minutes•Industry average of 90 60.0075.0090.00105.00120.00inutesminutes0.0015.0030.0045.002006 Actual2007 Actual2008 Actual2009 Actual2010 ActualMResultGoal3ResultGoal Austin Energy –2010 OverviewOperating –$1.31 Billion Requirements•$501millionFuelrequirements•$501 million Fuel requirements•$428 million Operating requirements•$178 million Debt Service Requirementsq•$101 million General Fund Transfer•$ 59 million Transfer for Electric Capital Program$ 44 illi Tf t Bd Rtit R•$ 44 million Transfer to Bond Retirement Reserve•One-time transfer to meet bond covenants•No budget amendments in FY 20104 2010 Financial Results($ millions)Amended Budget2009-10Estimated2009-10Actual* 2009-10DifferenceActual to EstimateBeginning Balance$1748 $2373$2373$00 Beginning Balance$174.8 $237.3$237.3$0.0 Base and Other Revenue762.0 754.2741.0(13.2)Fuel Revenue480.3440.5418.4(22.1)Transfers In20 202000Transfers In2.0 2.02.00.0Total Available Funds$1,244.3 $1,196.7$1,161.4 ($35.3) Fuel Expenses501.3462.2438.323.9NonFuel Operating Expenses4275 42634319 (56)Non-Fuel Operating Expenses427.5 426.3431.9 (5.6)Debt Service178.6 171.2172.7 (1.5)Transfers Out205.0205.0205.00.0$$$$Total Requirements$1,312.4 $1,264.7$1,247.9 $16.8Excess(Deficiency)(68.1)(68.0)(86.5)(18.5)Adjustment to GAAP0.00.02.02.0Ending Balance$106.7 $169.4$152.8($16.5)5*Preliminary. Final, audited numbers not yet available. 2010 Revenue Indicators380,697 388,620 397,100 407,926 413,870 Average Number of Bills (Actual)Average Number of Bills•KeyindicatorofrevenuegrowthFY 2006FY 2007FY 2008FY 2009FY 2010Key indicator of revenue growth•413,870 for FY2010, an increase of 5,944 or 1.46% over FY 2009SystemPeakDemand(MW)(Actual)AE System Peak Demand (MttMW)2,5142,6022,628System Peak Demand (MW) (Actual)(Megawatts or MW)•2,628 MW on August 23, 2010 •New record driven by 104 degree temperature2,4302,391FY 2006FY 2007FY 2008FY 2009FY 2010temperature•Previous record 2,602 MW in June 2009 •Summer 2007 cool and wet weather•Sufficientownedandpurchased6•Sufficient owned and purchased power to meet service area demand 2010 Revenue Highlights$4717$$157.0 $147.6 $130.3 $140.9 12,184 12,089 11,976 12,039 8,00010,000 12,000 $1,000$1,250$1,500GWh$1,181.1$1,159.4$1,194.7$1,246.1Total Revenue (in millions) & Billed GWh Sales$617.4$614.8$610.7$613.3$471.7 $418.7 $418.4 $440.5 -2,000 4,000 6,000 8,000 $0$250$500$750GBilled sales of 11,976 gigawatthours (GWh)•Electricitysaleshavedeclinedinthepasttwoyears$FY 2008 FY 2009FY 2010Year End EstimateBase Revenue ( in Millions)Fuel RevenueOther RevenueBilled GWh Sales•Electricity sales have declined in the past two years•113 GWhlower than FY 2009 & 208 GWhlower than FY 2008Service Area Base (Non-fuel) Revenue $2.6 million below estimate•49% of total revenue or $603.6 million annual budget$6107illitli$71illibbdt•$610.7 million actual is $7.1 million above budgetFuel Revenue $22.1 million below estimate•39% of total revenue or $480.3 million annual budget•$418.4 million actual is $0.3 million lower than prior year actualOther Revenue $14.3 million below estimate•Wholesale sales lower due to reduced market demand7 2010 Revenue8 2010 Requirements HighlightsTotal Operating Requirements in (millions)$4810$442.8$4383$4622$1000$1,250$1,500$1,300.2$1,247.9$1,264.7$1,248.0$368.9$409.5$431.9$426.3$398.1$447.9$377.7$376.2$481.0$438.3$462.2$250$500$750$1,000$0FY 2008 FY 2009 FY 2010 FY 2010 EstimateNon-Fuel RequirementsTransfers OutFuelTotal Requirements $16.8 million below estimate•Fuel costs $23.9 million lower due to reduced commodity pricing•Non-fuel operating expenses $5.6 million higher than estimateSouthTexasPlantexpenseshigherthanestimaterelatedtooutages•South Texas Plant expenses higher than estimate related to outages•Savings in Call Center on billing costs and temporary services•Debt Service $1.5 million higher than estimate•Issued more commercial paper than plannedppp9 2010 Requirements10 Austin Energy –2011 OverviewOperating –$1.27 Billion Requirements$•$490 million Fuel requirements•$415 million Operating requirements$169illiDbtSiRit•$169 million Debt Service Requirements•$ 74 million Transfer for Electric Capital Program$103millionGeneralFundTransfer•$103 million General Fund Transfer•$7 million new revenue to recover increasing Texas electric grid costs1stQarterReeneandEpenditresonTarget111stQuarter Revenue and Expenditures on Target Austin Energy –2011 Cost ControlsOperating -$1.27 Billion Requirements•Nonewfulltimeequivalents(FTEs)in2010or2011No new full time equivalents (FTEs) in 2010 or 2011•$3.2 million decrease in maintenance for plant boiler, turbine & other equipment -adjusted service schedules$•$1.7 million decrease in software maintenance•311 call center net cost $2.1 million, decrease of $3.5 millionfrom2010duetorevisedallocationmillion from 2010 due to revised allocation •$9.1 million decrease in debt service requirements due to lower capital spending plan & use of bond reserve12 Austin Energy Financial UpdateQQuestions13 Austin EnergyFinancial Update2nd Quarter ended March 31, 20111 2011 Q2 Financial Results2($ millions)Amended Budget2010-11AllotmentQ2 FY11Actual Q2FY 11DifferenceActual to AllotmentBeginning Balance$169.4 $169.4$152.8($16.6) Base and Other Revenue740.1 318.1327.89.7Fuel Revenue490.2217.3177.0(40.3)Total Available Funds$1,230.3 $535.4$504.8 ($30.6)Fuel Cost490.2217.3177.040.3Non-Fuel Operating Expense439.0 226.8213.7 13.1Debt Service169.4 62.562.7 (0.2)Transfers178.189.089.00.0Total Requirements$1,276.7 $595.6$542.4 $53.2Excess(Deficiency)(46.4)(60.2)(37.6)22.6Ending Balance$123.0 $109.2$115.2$6.0 32011 Q2 Results•Q2 results for six months ended March 31•Revenue: $504.8M○Service Area Retail Electric Sales $265.0M (Base or non-fuel)•$10.4 million higher than allotment•$2.2 million higher than Q2 prior year○Fuel revenue $177.0M○Other revenue $62.8M•Requirements: $542.4M○Fuel cost $177.0M○Non-fuel operating requirements $213.7M ○Transfers $151.7M•Deficiency: $37.6M 2011Q2 Revenue HighlightsService Area Retail Electric Sales (Base or non-fuel)•$613.4 million annual budget is 50% of total revenue •$623.8 million year end estimate with $10.4 million positive variance•Actual results affected by economic conditions and weather•$265.0 million Q2 exceeds FY 2010 Q2 by $2.2 millionBilled sales of 5,485 gigawatt hours (GWh)•48 GWh higher than FY 2010 Q2 actual of 5,437 GWhService Area Retail Electric Sales (Base or Non-Fuel) in Millions & Billed GWh Sales4$262.5$256.5$262.7$265.0$254.65,490 5,379 5,437 5,485 5,381 02,0004,0006,0008,00010,00012,000$0$200$400$600$800FY 2008 Q2 FY 2009 Q2FY 2010 Q2FY 2011 Q22011 Q2 AllotmentBase Revenue ( in Millions)Billed GWh SalesGWh 2011 Q2 Revenue Indicators5Average Number of Bills•Key indicator of revenue growth•415,352 for Q2, an increase of 4,536 or 1.1% over FY 2010 Q2AE System Peak Demand (Megawatts or MW)•2,195 MW on February 2 at 7 p.m.oNew winter peak record driven by low temperature of 24 degreesoPrevious record 1,948 MW on January 8, 2010 •Sufficient owned & purchased power to meet customer demand392,191 404,757 410,816 415,352 -100,000 200,000 300,000 400,000 500,000 FY 2008 Q2FY 2009 Q2FY 2010 Q2FY 2011 Q21,7271,7501,9482,195FY 2008 Q2 FY 2009 Q2 FY 2010 Q2 FY 2011 Q2 2011 Q2 Requirements HighlightsTotal Q2 Requirements $53.2 million below Q2 Allotment•$1,276.7 million annual budget•$1,189.4 million year end estimate with $87.3 million favorable variance•Fuel cost $40.3 million lower than Q2 allotment due to fuel prices and power supply market prices•Non-fuel operating expenses $13.1 million lower than Q2 allotmentoSavings on power plant equipment maintenance with new service contractsoSavings on Call Center billing costs and temporary servicesTotal Requirements (In millions)$177.3$207.3$213.1$213.7$226.8$165.5$187.4$186.7$151.7$151.5$156.8$196.6$182.3$177.0$217.3$0$250$500$750FY 2008 Q2 FY 2009 Q2FY 2010 Q2 FY 2011 Q2FY 2011 Q2 AllotmentNon-Fuel RequirementsTransfers OutFuel$591.3$582.1$542.4$499.6$595.66 72011 Revenue -Estimate($ millions)Amended Budget2010-11Estimated2010-11DifferenceBudget to EstimateService Area Retail Electric Sales (Base or non-fuel)$613.4 $623.8$10.4Fuel Revenue490.2401.0(89.2)Transmission Revenue56.161.04.9Transmission Rider7.27.20.0Other Revenue57.848.6(9.2)Interest Income5.65.60.0Total Available Funds$1,230.3 $1,147.2 ($83.1) ○Fuel Revenue•Fuel cost passed onto customer with no profit•Fuel cost fluctuations impact fuel revenue in a similar manner•$89.2 million lower due to reductions in fuel cost •Larger decrease in fuel charge on January 1, 2011 than expected 2011 Requirements -Estimate8($ millions)Amended Budget2010-11Estimated2010-11DifferenceBudget to EstimateFuel Cost$490.2$401.0$89.2Non-Fuel Operating Expense378.4380.5(2.1)Conservation including Rebate & Incentives Programs30.330.30.0Other Requirements30.330.30.0Total Operating & Other Requirements$929.2 $842.1$87.1 Debt Service Transfer169.4169.20.2Electric Capital Improvement Program Transfer74.074.00.0General Fund Transfer103.0103.00.0Other Transfers1.11.10.0Total Transfers$347.5 $347.3 $0.2Total Requirements$1,276.7 $1,189.4$87.3 2011 Fund Summary -Estimate($ millions)Amended Budget2010-11Estimated2010-11DifferenceBudget to EstimateBeginning Balance$169.4 $152.8($16.6) Base and Other Revenue740.1 746.26.1Fuel Revenue490.2401.0(89.2)Total Available Funds$1,230.3 $1,147.2($83.1)Fuel Cost490.2401.089.2Non-Fuel Operating Expense439.0 441.1(2.1)Debt Service169.4 169.20.2Transfers178.1178.10.0Total Requirements$1,276.7 $1,189.4$87.3Excess(Deficiency)(46.4)(42.2)4.2Ending Balance$123.0 $110.6($12.4)9 Questions10Austin Energy Financial Update Austin EnergyAustin EnergyFinancial Update3rd Quarter ended June 30, 2011,1 2011 Q3 Financial Results($ millions)Amended Budget2010-11AllotmentQ3 FY11Actual Q3FY 11DifferenceActual to AllotmentBeginning Balance$169.4 $169.4$152.8($16.6) Base and Other Revenue740.1 501.4522.921.5Fuel Revenue490.2338.4299.9(38.5)Total Available Funds$1,230.3 $839.8$822.8 ($17.0)Fuel Cost490.2338.4299.938.5Non-Fuel Operating Expense444.5 330.2319.7 10.5Debt Service169.4 104.7105.3 (0.6)Transfers178.1133.3133.30.0Total Requirements$1,282.2 $906.6$858.2 $48.4qExcess(Deficiency)(51.9)(66.8)(35.4)31.4Ending Balance$117.5 $102.6$117.4$14.82 2011 Q3 Results•Q3 results for nine months ended June 30•Revenue:$8228MRevenue: $822.8M○Service Area Retail Electric Sales $425.8M (Base or non-fuel)•$18.8 million higher than allotment•$204millionhigherthanQ3prioryear•$20.4 million higher than Q3 prior year○Fuel revenue $299.9M○Other revenue $97.1M•Requirements: $858.2M○Fuel cost $299.9M○Non-fuel operating requirements $319.7M ○Debt Service and Transfers $238.6M3•Deficiency: $35.4M 2011Q3 Revenue Highlightsiillil(l)iilliilldhlService Area Retail Electric Sales (Base or Non-Fuel) in Millions & Billed GWh Sales8,427 8,234 8,324 8,606 8,385 800010,00012,000$600$800$413.0$403.1$405.4$425.8$407.002,0004,0006,0008,000$0$200$400SericeAreaRetailElectricSales(Baseornonfel)0$0FY 2008 Q3 FY 2009 Q3FY 2010 Q3FY 2011 Q32011 Q3 AllotmentBase Revenue ( in Millions)Billed GWh SalesGWhService Area Retail Electric Sales (Base or non-fuel)•$613.4 million annual budget is 50% of total revenue •$624.6 million year end estimate with $11.2 million positive variance•Actualresultsaffectedbyeconomicconditionsandweather•Actual results affected by economic conditions and weather•$425.8 million Q3 exceeds FY 2010 Q3 by $20.4 millionBilled sales of 8,606 gigawatt hours (GWh)gg()•282 GWh higher than FY 2010 Q3 actual of 8,324 GWh4 Billed Base Revenue Budget vs. Actual$54.5 $54.5 $64.6 $60$70AE Billed Base Revenue (in Millions)$39.0 $41.0 $44.4 $45.1 $41.0 $41.7 $40$50$20$30OctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneFY 2011 Budget$53.5$39.0$39.4$42.6$41.4$38.7$40.0$51.3$61.1$0$10g$53.5 $39.0 $39.4 $42.6 $41.4 $38.7 $40.0 $51.3 $61.1 FY 2011 Actual$54.5 $39.0 $41.0 $44.4 $45.1 $41.0 $41.7 $54.5 $64.6 •Actual revenue exceeds budget in each month except November5•Primarily due to extreme weather conditions 2011 Q3 Revenue IndicatorsAverage Number of Bills•Key indicator of revenue growth393,997 406,133 412,052 416,374 400,000 500,000 600,000 yg•416,374 for Q3, an increase of 4,322 or 1.05% over FY 2010 Q3-100,000 200,000 300,000 FY2008Q3FY2009Q3FY2010Q3FY2011Q3AE System Peak Demand FY 2008 Q3FY 2009 Q3FY 2010 Q3FY 2011 Q3y(Megawatts or MW)•2,517 MW on June 17 at 4 p.m.oDriven by high temperature of 104 d2,4662,6022,3652,517degreeso152 MW higher than FY 2010 Q3 •Sufficient owned & purchased power to meet customer demandFY 2008 Q3 FY 2009 Q3 FY 2010 Q3 FY 2011 Q3 6 2011 Q3 Requirements HighlightsTotal Requirements (In millions)$0$1,000$1,250$906.0$893.0$858.2$821.4$906.6$2761$302.3$326.1$319.7$330.2$259.8$294.9$271.4$238.6$238.0$285.5$308.8$295.5$299.9$338.4$250$500$750$276.1$302.3$326.1$319.7$330$0FY 2008 Q3 FY 2009 Q3FY 2010 Q3 FY 2011 Q3FY 2011 Q3 AllotmentNon-Fuel RequirementsTransfers OutFuelTotal Q3 Requirements $48.4 million below Q3 Allotment•$1,282.2 million annual budget•$1,177.8 million year end estimate with $104.4 million favorable variance$,8oyeaedesae$0oaoabeaace•Fuel cost $38.5 million lower than Q3 allotment due to fuel prices and power supply market prices•Non-fuel operating expenses $10.5 million lower than Q3 allotmentSiltititithittoSavings on power plant equipment maintenance with new service contractsoSavings on Call Center billing costs and temporary services7 2011 Fund Summary -Estimate($ millions)Amended Budget2010-11Estimated2010-11DifferenceBudget to EstimateBeginning Balance$1694 $1528($166) Beginning Balance$169.4 $152.8($16.6) Base and Other Revenue740.1 750.210.1Fuel Revenue490.2390.2(100.0)Total Available Funds$12303 $11404($899)Total Available Funds$1,230.3 $1,140.4($89.9)Fuel Cost490.2390.2100.0Non-Fuel Operating Expense444.5 442.02.5Dbt Si1694 167519Debt Service169.4 167.51.9Transfers178.1178.10.0Total Requirements$1,282.2 $1,177.8$104.4Excess(Deficiency)(51.9)(37.4)14.5Ending Balance$117.5 $115.4($2.1)8 Questions9 AtiEAtiEAustin EnergyAustin EnergyFinancial UpdateYear Ended September 30, 20111 Austin Energy –2011 Highlights•Rate Review in progress•Energy Resource Plan to 2020 adopted with Affordability Goal•Purchased power contracts for 291 megawatts (MW) of coastal wind power30MWlftWbbillliDb2011•30 MW solar farm at Webberville online December 2011•Successful conversion from Zonal to Nodal MarketMitidlltlibilitdidbki•Maintained excellent reliability during record breaking summer heat setting new peak demand records•CustomerCare&BillingSystemonlineOctober2011Customer Care & Billing System online October 2011•New customer service center in North Austin opened•Maintainedbondcreditratings2Maintained bond credit ratings 2011 Financial Results($ millions)Amended Budget2010-11Estimated2010-11 *Actual Q42010-11DifferenceActual to EstimatedBeginning Balance$169.4 $152.8$152.8$0.0 Base and Other Revenue740.1 750.2787.537.3Fuel Revenue490.2390.2471.881.6Total Available Funds$1,230.3 $1,140.4$1,259.3 $118.9FlCt490239024718(816)Fuel Cost490.2390.2471.8(81.6)Operating Expense (Non-Fuel )444.5 442.0441.1 0.9Debt Service169.4 167.5165.5 2.0Transfers178.1178.1178.10.0Total Requirements$1,282.2 $1,177.8$1,256.5 ($78.7)Excess (Deficiency)(51.9)(37.4)2.840.2Adjustment to GAAP0.00.0(11.1)(11.1)OtiFdEdiBl$1175$1154$1445$291* Estimate for Fiscal Year (FY) 2011 reported in FY 2012 Proposed Budget•Better results than expected -revenue exceeds requirements by $2.8 millionOperating Fund Ending Balance$117.5 $115.4$144.5$29.1Strategic Reserve Fund$137.8 $137.6$137.6$0.03pqy•Estimate of $(37.4)million before extreme summer weather-related revenue 2011Revenue Highlights(iilli)dilldhlRevenue (in Millions) and Billed GWh Sales$157.0 $147.6 $130.3 $130.4 $125.6 12,184 12,089 11,976 12,732 12,020 10,000 12,000 $1000$1,250$1,500$1,181.1$1,159.4$1,246.1$1,259.3$1,140.4$617.4$614.8$610.7$657.1$624.6$471.7 $418.7 $418.4 $471.8 $390.2 2,000 4,000 6,000 8,000 $250$500$750$1,000GWhServiceAreaRetailElectricSales(Baseornonfuel)revenue-$020082009201020112011 Year EndEstimate Base Revenue ( in Millions)Fuel RevenueOther RevenueBilled GWh SalesService Area Retail Electric Sales (Base or non-fuel) revenue•Annual budget of $613.4 million is 50% of total revenue •Actual results affected by economic conditions and weather•$6571millionactualis$325millionaboveestimate•$657.1 million actual is $32.5 million above estimateFuel revenue exceeds estimate by $81.6 million•Pass through of fuel cost totaling $471.8 millionBilledsalesof12732gigawatthours(GWh)Billed sales of 12,732 gigawatt hours (GWh)•712 GWh higher than estimate and 936 GWh higher than FY 20104 2011 Revenue IndicatorsAverage Number of BillsKiditfth397100407926413870417868Average Number of Bills (Actual)•Key indicator of revenue growth•417,868 for FY 2011, increase of 3,998 or 0.97% over FY 2010397,100 407,926 413,870 417,868 FY 2008FY 2009FY 2010FY 2011AE System Peak Demand (MegawattsorMW)System Peak Demand (MW) (Actual)(Megawatts or MW)•2,714 MW August 29 at 4 p.m.oHigh temperature of 108 degreeso86MWor3.3%higherthanFY20102,6022,6282,714o86 MW or 3.3% higher than FY 2010•Sufficient owned & purchased power to meet customer demand2,514FY 2008FY 2009FY 2010FY 20115 Retail Revenue Exceeds Estimate$90.8 $631$75$100FY 2011 SummerRevenue over Estimate(in Millions)$44.3 $37.2 $63.1 $50$15.6 $18.2 $12.7 $9.7 $12.8 $3.4 $5.9 $5.4 $7.1 $9.3 $27.7 $0$25JuneJulyAugustSeptemberTotalActual Sales over Estimate$15.6 $18.2 $44.3 $12.7 $90.8 Additional Power Supply Revenue/Cost over Estimate$9.7 $12.8 $37.2 $3.4 $63.1 Net Retail Sales over Estimate$5.9 $5.4 $7.1 $9.3 $27.7 $0•Summer revenue less power supply cost reduced budget deficiency $28 M•June through September -$90.8 M additional revenue less increased power supply cost of $63.1 M reduced budget deficiency by $27.7 M 6•August unplanned outages for base load generation increased cost 2011 Amended BudgetOperating Fund –$1.28 Billion Requirements•Budgetamended$55millionforHollyPowerPlantOperating Fund -2011 Amended BudgetTtlRit(iMilli)•Budget amended $5.5 million for Holly Power Plant decommissioning$$103 $74 Total Requirements (in Millions)FuelOtiit$490 $169 Operating requirements (non-fuel)Debt service requirementsGlFdTf$444 General Fund TransferTransfer for Capital improvements7 2011 Requirements HighlightsTotal Requirements (In millions)$4810$442.8$4383$4718$3902$1000$1,250$1,500$1,300.2$1,247.9$1,256.5$1,248.0$1,177.8$4095$4319$4411$4420$398.1$447.9$377.7$343.6$345.6$481.0$$438.3$471.8$390.2$250$500$750$1,000$368.9$409.5$431.9$441.1$442.0$0$250FY 2008 FY 2009 FY 2010 FY 2011 FY 2011 EstimateNon-Fuel RequirementsTransfers OutFuelTotal Requirements $78.7 million above estimate, primarily fuel•Non-fuel operating expenses $0.9 million below estimateoBase load generation expenses higher than estimate related to outagesgpggoSavings on power plant equipment maintenance with new service contractsoSavings on Call Center billing costs and temporary services •Fuel costs $81.6 million higher than estimate UldtfbldtioUnplanned outage for base load generation oIncreased cost for more expensive replacement power8 Operating Fund Ending Balance and Unrestricted Reserves$62 $15 $19 $500 Austin EnergyOperating Fund Ending Balance and Unrestricted Reserves(in Millions)$169 $164 $146 $138$12$32 $46 $32 $4$8 $12 $19 $16 $400 s$205 $222 $186 $181 $170 $170 $168 $138 $138 $138 $138 $10 $20 $12 $4 $15 $20 $20 $8 $200 $300 In Millions$78 $149 $72$82 $88 $107 $108 $107 $103 $126 $200 $231 $267 $247 $237 $153 $144 $124 $103 $157 $138 $100 $41 $72 $38 $0 AE Operating FundAE Strategic Reserve FundAE Repair & Replacement FundNon‐nuclear decommissioning Account9•Actual history including quarter ended 12/31/2011 and 2012 Amended Budget 2011 Performance & HistoryGrid Reliability •SAIFI -System Average InterrptionFreqencIndeInterruption Frequency Index•Goal = 0.8 interruptions•Industry average of 1.4 interruptionsinterruptions•SAIDI –System Average Interruption Duration Index•Goal = 60 Minutes•Industry average of 120 minutesminutes10 Questions11 Austin EnergyAustin EnergyFinancial Update2nd Quarter ended March 31, 2012,1 2012 Q2 Financial Results($ millions)Amended Budget2011-12AllotmentQ2 FY12Actual Q2FY 12DifferenceActual to AllotmentBeginning Balance$115.4 $115.4$143.5$28.1 Base and Other Revenue730.5 318.3335.917.6Fuel Revenue408.9184.2167.0(17.2)Total Available Funds$1,139.4 $502.5$502.9 $0.4Fuel Cost408.9184.2167.017.2Non-Fuel Operating Expense450.9 241.4227.5 13.9Debt Service175.1 62.561.8 0.7Transfers182.191.091.00.0Total Requirements$1,217.0 $579.1$547.3 $31.8qExcess(Deficiency)(77.6)(76.6)(44.4)32.2Ending Balance$37.8 $38.8$99.1$60.32 2012 Q2 Results•Q2 results for six months ended March 31•Revenue: $5029MRevenue: $502.9M○Service Area Retail Electric Sales $273.7M (Base or non-fuel)•$13.5 million higher than allotment•$87 million higher than Q2 prior year•$8.7 million higher than Q2 prior year○Fuel revenue $167.0M○Other revenue $62.2M•Requirements: $547.3M○Fuel cost $167.0M○Non-fuel operating requirements $227.5M ○Transfers $152.8M3•Deficiency: $44.4M 2012Q2 Revenue HighlightsService Area Retail Electric Sales (Base or Non-Fuel) in Millions & Billed GWh Sales53795437548558368,00010,00012,000$600$800$256.5$262.7$265.0$273.7$260.65,379 5,437 5,485 5,836 5,449 02,0004,0006,000$0$200$400GWhService Area Retail Electric Sales (Base or nonfuel)2009 Q22010 Q22011 Q22012 Q2 2012 Q2EstimateBase Revenue ( in Millions)Billed GWh SalesService Area Retail Electric Sales (Base or non-fuel)•$614.4 million annual budget is 54% of total revenue •$622.2 million year end estimate with $7.8 million positive variance•Actual results affected by economic conditions and weather•Actual results affected by economic conditions and weather•$273.7 million Q2 exceeds FY 2011 Q2 by $8.7 millionBilled sales of 5,836 gigawatt hours (GWh)gg•351 GWh higher than FY 2011 Q2 actual of 5,485 GWh•Billing cycle change in October with conversion to new billing system4 2012 Q2 Revenue IndicatorsAverage Number of Bills•Key indicator of revenue growth f Q i f 404,757 410,816 415,352 415,441 300,000400,000 500,000 •415,441 for Q2, an increase of 89 or 0.02% over FY 2011 Q2•Multi-family Partner Program goes from individual bills per unit -100,000 200,000 300,000 FY2009Q2FY2010Q2FY2011Q2FY2012Q2goes from individual bills per unit to single bill for complex.AE System Peak Demand FY 2009 Q2FY 2010 Q2FY 2011 Q2FY 2012 Q2AE System Peak Demand (Megawatts or MW)•1,771 MW on March 31 at 5 p.m.oVery mild winter compared to FY 1,7501,9482,1951,771yp2011 when winter peak set•Sufficient owned & purchased power to meet customer demandFY 2009 Q2 FY 2010 Q2 FY 2011 Q2 FY 2012 Q25 2012 Q2 Requirements HighlightsTotal Requirements excluding Fuel (In millions)$43.4$46.5$45.3$47.7$45.4$300$400$500$394.7$399.8$365.5$394.9$380.3$163.9$166.6$168.5$179.8$196.0$187.4$186.7$151.7$152.8$153.5$0$100$200$300$0FY 2009 Q2FY 2010 Q2 FY 2011 Q2FY 2012 Q2 FY 2012 Q2 AllotmentNon-Fuel OperatingTransfers OutNuclear & Coal O&MTotal Q2 Requirements (less Fuel) $14.6 million below Q2 Allotment•$1,217.0 million Total Requirements annual budget including Fuel•$808.1 million Total Requirements annual budget (excluding Fuel)•Non-fuel operating expenses $16.2 million lower than Q2 allotmentoSavings on personnel due to higher vacancy ratesoSavings on Call Center billing costs and meter reading servicesoSavings on engineering and other consultant expensesoSavings on engineering and other consultant expenses•Transfers Out include General Fund, Debt Service, Capital Program cash6 2012 Fund Summary -Estimate($ millions)Amended Budget2011-12Estimated2011-12DifferenceBudget to EstimateBeginning Balance$1154 $1435$281 Beginning Balance$115.4 $143.5$28.1 Base and Other Revenue730.5 738.37.8Fuel Revenue408.9408.90.0Total Revenue$11394 $11472$78Total Revenue$1,139.4 $1,147.2$7.8Transfers In –Strategic Reserve Fund025.025.0Total Available Funds$1,139.4 $1,172.2$32.8Fuel Cost408.9408.90.0Non-Fuel Operating Expense450.9 450.9 0.0Debt Service175.1 175.1 0.0Transfers182.1182.10.0Total Requirements$1,217.0 $1,217.0 $0.0Excess(Deficiency)(77.6)(44.8)32.8Ending Balance$37.8 $98.7$60.97 Austin Energy Financial UpdateQuestions8 Austin EnergyAustin EnergyFinancial UpdateFinancial Update3rd 3rd Quarter ended Quarter ended June 30, June 30, 20122012MissionMission: : Deliver clean, affordable, reliable energy and excellent customer service. 1 2012 YTD Q3 Results•Q3 results for nine months ended June 30Reene $8217M•Revenue: $821.7M○Service Area Retail Electric Sales $432.4M (Base or non-fuel)•$22.7 million higher than allotment•$6.6 million higher than Q3 prior year○Fuel revenue $292.0M○Other revenue $973M○Other revenue $97.3M•Requirements: $858.6M○Fuel cost $2920M○Fuel cost $292.0M○Non-fuel operating requirements $328.9M ○Transfers $237.7M•Deficiency: $36.9M 2 2012 YTD Q3 Financial Results($ millions)Amended Budget201112AllotmentQ3 FY12Actual Q3FY 12DifferenceActual to Allotment2011-12AllotmentBeginning Balance$115.4 $115.4$143.5$28.1 Base and Other Revenue730.5 495.2529.734.5Fl R40892829292091Fuel Revenue408.9282.9292.09.1Transfers In0.00.00.00.0Total Available Funds$1,139.4 $778.1$821.7 $43.6Fuel Cost408.9282.9292.0(9.1)Non-Fuel Operating Expense452.5 347.3328.9 18.4Debt Service175.1 106.6101.0 5.6Transfers182.1136.7136.70.0Total Requirements$1,218.6 $873.5$858.6 $14.9Excess(Deficiency)(79.2)(95.4)(36.9)58.53Ending Balance$36.2 $20.0$106.6$86.6 2012YTD Q3 Revenue Highlights823483248,606 8,977 836810,00012,000$800Service Area Retail Electric Sales (Base or Non-Fuel) in Millions & Billed GWhSales$403.1$405.4$425.8$432.4$409.78,234 8,324 ,8,368 20004,0006,0008,00010,000$200$400$600GWh02,000$02009 Q32010 Q32011 Q32012 Q3 2012 Q3EstimateBase Revenue ( in Millions)Billed GWh SalesService Area Retail Electric Sales (Base or non-fuel)•$614.4 million annual budget is 54% of total revenue •$6339 million year end estimate with $195 million positive variance•$633.9 million year end estimate with $19.5 million positive variance•Actual results affected by economic conditions and weatherBilled sales of 8,977 gigawatt hours (GWh)gg•371 GWh higher than FY 2011 Q3 actual of 8,606 GWh•Billing cycle change in October with conversion to new billing system4 2012 YTD Q3 Revenue IndicatorsAverage Number of BillsK idit f th406133412052416374415423500,000600,000 •Key indicator of revenue growth•415,423 for Q3, a decrease of 951 or 0.2% from FY 2011 Q3•Multi-family Partner Program 406,133 412,052 416,374 415,423 100,000 200,000 300,000 400,000 500,000 yggoes from individual bills per unit to single bill for complex.-FY 2009 Q3FY 2010 Q3FY 2011 Q3FY 2012 Q3AE System Peak Demand (Megawatts or MW)•2,702 MW on June 26 at 4 p.m. 2,60223652,5172,702,poTemperature 105 degrees at peakoWeather up to that time relatively mild compared to 2011•Sufficient owned & purchased 2,3652,5175Sufficient owned & purchased power to meet customer demandFY 2009 Q3 FY 2010 Q3 FY 2011 Q3 FY 2012 Q3 2012 YTD Q3Requirements Highlights$750$597.2$597.5$558.3$590.6$566.6Total Requirements excluding Fuel (In millions)$2415$2517$2469$2584$2820$294.9$271.4$238.6$237.7$243.0$60.8$74.4$72.8$70.5$65.6$250$500$558.3$566.6$241.5$251.7$246.9$258.4$282.0$0FY 2009 Q3FY 2010 Q3 FY 2011 Q3FY 2012 Q3 FY 2012 Q3 AllotmentNon-Fuel OperatingTransfers OutNuclear & Coal O&MTotal Q3 Requirements (less Fuel) $24.0 million below Q3 Allotment•$1,218.6 million Total Requirements annual budget including Fuel•$8097 million Total Requirements annual budget (excluding Fuel)pg•$809.7 million Total Requirements annual budget (excluding Fuel)•Non-fuel operating expenses $23.6 million lower than Q3 allotmentoSavings on personnel due to higher vacancy ratesoSavings on Call Center billing costs and meter reading servicesoLower expenditures for conservation rebates (expected to increase in 4thquarter).•Transfers Out include General Fund, Debt Service, Capital Program cash6 2012 Fund Summary -Estimate($ millions)Amended Budget2011-12Estimated2011-12DifferenceBudget to EstimateBeginning Balance$115.4 $143.5$28.1 Base and Other Revenue730.5 756.225.7Fuel Revenue40894271182Fuel Revenue408.9427.118.2Total Revenue$1,139.4 $1,183.3$43.9Transfers In –Strategic Reserve Fund025.025.0Total Available Funds$1,139.4 $1,208.3$68.9Fuel Cost408.9427.1(18.2)Non-Fuel Operating Expense452.5 452.5 0.0Debt Service175.1 166.5 8.6Transfers182.1182.10.0Total Requirements$1,218.6 $1,228.2 ($9.6)Excess(Deficiency)(79.2)(19.9)59.3Ending Balance$36.2 $123.6$87.47 Austin Energy Financial UpdateQuestions?8 Austin EnergyAustin EnergyFinancial UpdateFinancial UpdateYear Ended September 30, 2012Year Ended September 30, 201211ststQuarter Fiscal Year 2013Quarter Fiscal Year 201311ststQuarter Fiscal Year 2013Quarter Fiscal Year 2013MissionMission: : Deliver clean, affordable, reliable energy and excellent customer service. 1 2012 Highlights•Rate Review and increase approved by Council June 7, 2012•Renewable portfolio at 15% moving to 27% in early FY 2013 Purchase Power Agreements include:•196 MW wind from Penescalproject in October 2011•196 MW wind from Penescalproject in October, 2011•30 MW Webberville Solar project on-line December, 2011•100 MW Nacogdoches Biomass project on-line June 2012.100 MW Nacogdoches Biomass project online June 2012.•Issued a record number of rebates for residential solar installations•Maintained excellent system reliability•Customer Care & Billing System online October 20112•Bond credit ratings stable in FY 12, upgraded in early FY 2013 2012 Financial Results($ millions)Amended Budget201112FY12Estimated*Actual Q42011-12DifferenceActual to Estimate2011-12EstimateBeginning Balance$115.4 $143.5$143.5$0.0 Base and Other Revenue730.5 756.2760.54.3Fuel Revenue408942714259(12)Fuel Revenue408.9427.1425.9(1.2)Transfers In25.025.024.8(0.2)Total Available Funds$1,164.4 $1,208.3$1,211.2 $2.9Fuel Cost408.9427.1425.91.2Non-Fuel Operating Expense452.5 452.5444.0 8.5Debt Service175.1 166.5167.0(0.5)Transfers182.1182.1182.10.0Total Expenditures$1,218.6 $1,228.2$1,219.0 $9.2Excess(Deficiency)(54.2)(19.9)(7.8)12.1Adjustment to GAAP(8.5)(8.5)$$$$3Ending Balance$61.2 $123.6$127.2$3.6* Estimate for Fiscal Year (FY) 2012 reported in FY 2013 Proposed Budget 2012Revenue Highlights12,089 11,976 12,732 12,716 12,380 1200014,00016,000$900Service Area Retail Electric Sales (Base or Non-Fuel) in Millions & Billed GWh SalesGWhGWhGWhGWhGWh$614.8$610.7$657.1$630.0$633.92,0004,0006,0008,00010,00012,000$300$6000,$02009 Actual2010 Actual2011 Actual2012 Actual 2012 EstimateBase Revenue $ ( in Millions)Billed GWh Sales2,6022,6282,7142,702AE System Peak Demand (Megawatts or MW)•2,702 MW on June 26 at 4 p.m. 2,702 MW on June 26 at 4 p.m. oPrevious years’ peak in Jul-AugoTemperature 105 degrees at peako4thQuarter Peak 2,600 MW•Sufficient owned & purchased 4FY 2009 FY 2010 FY 2011 FY 2012 Sufficient owned & purchased power to meet customer demand 2012Revenue HighlightsFuel and Other Revenue Actual vs. Estimate(iilli)$427.1$425.9400450500(in millions)250300350Millions$59.1$44.7$63.4$45.650100150200$ $13.0$5.4$18.4$3.2050Fuel RevenueTransmission RevenueTransmission RiderOther RevenueInterest Income2012 Estimate2012 Actual5 2012 Requirements Highlights$80.9$92.4$97.2$885$920$1,500$1,300.2$1,247.5$1,256.5$1,228.2$1,219.0$447.9$377.7$343.6$349.1$348.6$328.6$339.1$343.9$355.5$360.5$92.4$97.2$88.5$92.0$500$1,000$442.8$438.3$471.8$425.9$427.1$0FY 2009 FY 2010 FY 2011 FY 2012 FY 2012 Year End EstimateFuelTransfersOutNon-FuelOperatingNuclear&CoalO&MTotal Requirements $9.2 million below estimate•Non-fuel operating expenses $5.0M below estimateFuelTransfers OutNonFuel OperatingNuclear & Coal O&MoSavings on personnel due to higher vacancy ratesoSavings on Call Center billing costsoSavings on energy efficiency costs for thermostats/water heater timers•Nuclear and Coal operating costs $3.5M below estimateNuclear and Coal operating costs $3.5M below estimateoTiming variances for O&M plant maintenance projects at both FPP and STP•Transfers Out include General Fund, Debt Service, Capital Program cash6 Austin Energy FY 2012-13Financial Update1stQtFilY20131stQuarter Fiscal Year 20137 Austin Energy –2013 OverviewRevenue –$1.27 Billion Budget•$645 million base revenue includes rate increase•$414millionFuelrevenue$414 million Fuel revenue•$80 million Regulatory revenue•$59millionTransmissionSystemrevenue$59 million Transmission System revenue•$40 million Other Revenue•$33 million Community Benefit revenue $y•$3 million Interest Income•$11 million transfer from Strategic Reserve Fund8g Austin Energy –2013 OverviewOperating –$1.27 Billion Requirements•$416 million Operating expenses•$414millionFuelexpenses$414 million Fuel expenses•$95 million Recoverable expenses•$173millionDebtServiceRequirements$173 million Debt Service Requirements•$ 105 million General Fund Transfer •$ 69 million Transfer for Electric Capital Program$pg91stQuarter Revenue and Expenditures on Target Austin Energy Financial UpdateQuestions?10 Austin EnergyAustin EnergyFinancial UpdateFinancial Update2nd Quarter ended March 31, 20132nd Quarter ended March 31, 2013MissionMission: : Deliver clean, affordable, reliable energy and excellent customer service. 1 2013 Q2 Financial Results($ millions)Amended BudgetAllotmentQ2 FY13Actual Q2FY 13DifferenceActual to ($ millions)Budget2012-13Q2 FY13FY 13Actual to AllotmentBeginning Balance$123.5 $123.5$128.5$5.0 Base and Other Revenue859.7 365.2364.6(0.6)Fuel Revenue414.2186.9190.94.0Transfers In10.910.910.3(0.6)Total Available Funds$1,284.8 $563.0$565.8 $2.8NFl Oti E5111 28522514 338Non-Fuel Operating Expense511.1 285.2251.4 33.8Fuel Cost414.2186.9190.9(4.0)Debt Service173.2 91.463.727.7Transfers174487187100Transfers174.487.187.10.0Total Expenditures$1,272.9 $650.6$593.1 $57.5Excess(Deficiency)11.9(87.3)(27.3)60.0Ending Balance$135.4 $36.2$101.2$65.02g$$$$ 2013Q2Revenue Highlights543754855,762 5,4125,583 60008,000$400$500Service Area Retail Electric Sales (Base or Non‐Fuel) in Millions & Billed GWh SalesGWhGWhGWhGWhGWh$262.7$265.0$273.7$261.5$259.05,437 5,485 5,412 ,2,0004,0006,000$100$200$300$GWhGWhGWhGWh0$02010 Q22011 Q22012 Q2 2013 Q2 2013 Q2 AllotmentBase Revenue $ ( in Millions)Billed GWh SalesAE System Peak Demand (Megawatts or MW)•1,885 MW on January 16 at 8 a.m. T31dk1,9482,1951,7711,885oTemperature 31 degrees at peakoFY 2012 Q2 peak on March 31oFY 2011 Q2 peak record for quarter during extreme cold winterSffiid&hd3FY 2010 Q2 FY 2011 Q2 FY 2012 Q2FY 2013 Q2•Sufficient owned & purchased power to meet customer demand 2013 Q2Revenue HighlightsFuel and Other Revenue Actual vs. Budget(iilli)$186.9$190.9200250(in millions)150Millions$36.7$29.7$188$19.3$32.7$31.5$180$19.650100$ $18.8$19.3$1.7$18.0$19.6$1.30Fuel RevenueRegulatoryTransmission RevenueCommunity BenefitOther RevenueInterest IncomeQ2 BudgetQ2 Actual4 2013 Q2 Requirements Highlights$530$63.1$750$582.1$542.5$547.3$650.6$593.1$186.7$151.7$152.8$150.9$178.4$166.6$168.5$179.8$198.3$222.2$46.5$45.3$47.7$53.0$250$500$182.3$177.0$167.0$190.9$186.9$0FY 2010 Q2 FY 2011 Q2FY 2012 Q2 FY 2013 Q2FY 2013 Q2 BudgetFuelTransfersOutNon‐FuelOperatingNuclear&CoalO&MTotal Requirements $57.5 million below budget estimate•Non-fuel operating expenses $23.9M below estimateFuelTransfers OutNonFuel OperatingNuclear & Coal O&MoBelow allotment in Call Center temporaries and billing costsoBelow allotment on energy efficiency costs for thermostats/water heater timers•Nuclear and Coal operating costs $10.1M below estimateoDelayofSTPspringoutageduetoforcedoutageinwinter/earlyspringoDelay of STP spring outage due to forced outage in winter/early spring•Transfers Out include General Fund, Debt Service, Capital Program cashoSavings in debt service due to restructuring during bond sale in Fall 20125 Austin Energy Financial UpdateQuestions?6 Austin EnergyAustin EnergyFinancial UpdateFinancial UpdateFY 2012 FY 2012 --13 through the 3rd Quarter 13 through the 3rd Quarter ended June 30 2013ended June 30 2013ended June 30, 2013ended June 30, 2013MissionMission: : Deliver clean, affordable, reliable energy and excellent customer service. 1 2013 YTD Q3 Financial Resultsupdate($ millions)Amended Budget 2012-13Budget Q32012-13Actual Q3 2012-13Difference Actual to BudgetBeginning Balance$123.5 $123.5 $128.5$5.0 Base and Other Revenue859.7568.6562.3(6.3)PowerSupply Adjustment(PSA)FlR414.2286.1310.624.5(PSA) Fuel Revenue414.2286.1310.624.5Transfers In10.910.910.90.0Total Available Funds$1,284.8 $865.6 $883.8 $18.2 Non-Fuel Operating 518140013591410Expense518.1400.1359.141.0PowerSupply Adjustment(PSA) Fuel Cost414.2286.1310.6(24.5)Debt Service173.2127.786.341.4Transfers174.4130.6130.9(0.3)Total Expenditures$1,279.9 $944.5 $886.9 $57.6 Excess(Deficiency)4.9(78.9)(3.1)75.8EdiBl$1284$446$1254$8082Ending Balance$128.4 $44.6 $125.4 $80.8 2013YTD Q3Revenue HighlightsService Area Retail Electric Sales (Base or Non‐Fuel) in Millions & Billed GWh SalesGWhGWhGWhGWhGWh3 2013 YTD Q3Revenue HighlightsPower Supply Adjustment (PSA)/Fuel and Other Revenue ActualvsBudget$286.1$310.6300350Actual vs. Budget(in millions)150200250Millions$55.7$44.6$28.8$28.8$50.3$47.6$30.5$27.450100150$ $28.8$28.8$2.6$$27.4$1.80PSA/Fuel RevenueRegulatoryTransmission RevenueCommunity BenefitOther RevenueInterest IncomeQ3 BudgetQ3 Actual4 2013 YTD Q3 Requirements HighlightsHighlights$74.4$72.8$70.6$75.0$88.6$$1,000$893.0$858.2$858.6$944.5$886.8(millions)$295.5$299.9$292.0$310.6$286.1$271.4$238.6$237.7$217.2$258.3$250$500$750$251.7$246.9$258.3$284.1$311.5$0$250FY 2010 Q3 FY 2011 Q3FY 2012 Q3 FY 2013 Q3FY 2013 Q3 BudgetNon‐FuelOperatingPSA/FuelTransfersOutNuclear&CoalO&MTotal Requirements $57.7 million below budget•Non-fuel operating expenses $27.4M below estimateNonFuel OperatingPSA/FuelTransfers OutNuclear & Coal O&MoBelow budget in Call Center temporaries and billing costsoSavings in maintenance of turbine generator & auxiliary equipment•Nuclear and Coal operating costs $13.6M below estimateoDefermentofSTPspringoutageduetoforcedoutageinwinter/earlyspringoDeferment of STP spring outage due to forced outage in winter/early spring•Transfers Out include General Fund, Debt Service, Capital Program cashoSavings in debt service due to restructuring during bond sale in Fall 20125 2013 YTD Q3 Financial Results($ millions)Amended Budget 2012-13Current Year EstimateDifference Budget toEstimateBeginning Balance$123.5 $128.5 $5.0 Base and Other Revenue859.7866.87.1PowerSupply Adjustment4142421068(PSA) Fuel Revenue414.2421.06.8Transfers In10.910.90.0Total Available Funds$1,284.8 $1,298.7 $13.9 Non-Fuel Operating 51815034147pgExpense518.1503.414.7PowerSupply Adjustment(PSA) Fuel Cost414.2421.0(6.8)Debt Service173.2133.339.9Transfers174.4174.40.0Total Expenditures$1,279.9 $1,232.1 $47.8 Excess(Deficiency)4.966.661.76Ending Balance$128.4 $195.1 $66.7 Austin Energy Financial UpdateQuestions?7 Austin EnergyAustin EnergyFinancial UpdateFinancial UpdateYear Ended September 30, 2013Year Ended September 30, 201311ststQuarter Fiscal Year 2014Quarter Fiscal Year 201411ststQuarter Fiscal Year 2014Quarter Fiscal Year 2014MissionMission: : Deliver clean, affordable, reliable energy and excellent customer service. 1 2013 Highlights•First year of new rates and structure (Council approved FY 12)•Bond credit ratings upgraded in early FY 2013•Over 20% of energy sold generated from renewable sources•Negotiated two new wind contracts for a net 400MW•Ahead of schedule to meet 35% goal by 2020•Best system reliability in Austin Energy history •American Public Power Association (APPA) Diamond Level Designation as reliable public power provider•Highest peak demand savings in last five years2 2013 Financial Results($ millions)Amended Budget 2012-13FY 13Estimated Actual 2012-13Difference Actual to EstimateBeginning Balance$123.5 $128.5 $128.5$0.0 Base and Other Revenue859.7866.8854.7(12.1)PowerSupply Adjustment(PSA)FuelRevenue414.2421.0453.832.8(PSA) Fuel RevenueTransfers In10.910.911.70.8Total Available Funds$1,284.8 $1,298.7 $1,320.2 $21.5 Non-Fuel Operating 518150344834200Expense518.1503.4483.420.0PowerSupply Adjustment(PSA) Fuel Cost414.2421.0453.8(32.8)Debt Service173.2133.3130.92.4Transfers174.4174.4174.40.0Total Expenditures$1,279.9 $1,232.1$1,242.5 ($10.4) Excess(Deficiency)4.966.677.711.1AdjustmenttoGAAP001821823* Preliminary. Final audited numbers not yet available.Adjustment to GAAP0018.218.2Ending Balance$128.4 $195.1 $224.4 $29.3 2013Revenue HighlightsService Area Retail Electric Sales (Base or Non-Fuel) in Millions & Billed GWh Sales1197612,779 1253412,24112,429 1300014,000$800GWhGWhGWhGWhGWh$610.7$657.1$630.0$638.1$635.811,976 12,534 12,241 ,5,0006,0007,0008,0009,00010,00011,00012,00013,000$300$400$500$600$700GWhGWhGWhGWh01,0002,0003,0004,000,$0$100$20020102011201220132013 EstimateBaseRevenue$(inMillions)BilledGWhSalesBase Revenue $ ( in Millions)Billed GWh SalesPeak Demand (MW)2,6282,7142,7022,592()4FY 2010FY 2011FY 2012FY 2013 2013Revenue HighlightsPower Supply Adjustment (PSA)/Fuel and Other Revenue ActualvsEstimate$421.0$453.8400450500Actual vs. Estimate(in millions)250300350Millions$70.1$63.3$41.2$52.7$75.3$63.3$363$39.050100150200$ $41.2$3.4$36.3$39.0$2.4050PSA/Fuel RevenueRegulatoryTransmission RevenueCommunity BenefitOther RevenueInterest Income2013 Estimate2013 Actual5 2013 Requirements Highlights$92.4$97.2$88.5$94.3$105.9$1,250$1,247.5$1,256.5$1,219.0$1,232.1$1,242.5$438.3$471.8$425.9$453.8$421.0$377.7$343.6$349.1$305.3$307.7$500$750$1,000$339.1$343.9$355.5$389.1$397.5$0$250FY 2010 FY 2011FY 2012FY 2013FY 2013 EstimateNon‐FuelOperatingPSA/FuelTransfersOutNuclear&CoalO&MTotal Requirements $10.4 million above estimate, primarily PSA/Fuel•Non-fuel operating expenses $8.4M below estimateNonFuel OperatingPSA/FuelTransfers OutNuclear & Coal O&MoSavings on personnel due to higher vacancy ratesoSavings on Call Center billing costsoSavings on energy efficiency costs for thermostats/water heater timers•Nuclear and Coal operating costs $11.6M below estimateNuclear and Coal operating costs $11.6M below estimateoDelay of planned outage due to unplanned outage at STP•Transfers Out include General Fund, Debt Service, Capital Program cash6 Austin Energy FY 2013-14Financial Update1stQtFilY20141stQuarter Fiscal Year 20147 Austin Energy –2014 OverviewRevenue –$1.36 Billion Budgetg•$654 million base revenue•$470millionPowerSupplyAdjustment(PSA)•$470 million Power Supply Adjustment (PSA)•$ 75 million Regulatory revenue•$62millionTransmissionSystemrevenue•$ 62 million Transmission System revenue•$ 53 million Community Benefit revenue •$47millionOtherRevenue$ 47 million Other Revenue•$ 2 million Interest Income8 Austin Energy –2014 OverviewOperating –$1.33 Billion Requirements•$470 million Power Supply Adjustment (PSA)•$394 million Operating expenses•$ 98 million Recoverable expenses•$137 million Debt Service Requirements$10illiGlFdTf•$105 million General Fund Transfer •$ 84 million Transfer for Electric Capital Program$43illiOthtf•$ 43 million Other transfers(cid:190)Includes Admin Support, CTM, Economic Developmentincluded inOperatingExpensesinFY20139in Operating Expenses in FY 20131stQuarter Revenue and Expenditures on Target Austin Energy Financial UpdateQuestions?10 Financial Updatep2nd Quarter 2nd Quarter endedMarch312014endedMarch312014ended March 31, 2014ended March 31, 2014Audit & Finance CommitteeMay 28, 20141 2014 Q2 Financial Results($ millions)Amended Budget 2013-14AllotmentQ2 FY 14Actual Q2 FY 14Difference Actual to AllotmentBeginning Balance$195.1 $195.1 $207.9$12.8 Base and Other Revenue893.9381.8385.94.1PowerSupply Adjustment(PSA)FuelRevenue470.5212.9220.87.9(PSA) Fuel RevenueTransfers In0.00.00.00.0Total Available Funds$1,364.4 $594.7 $606.7 $12.0Non-Fuel Operating 492027822631151Expense492.0278.2263.115.1PowerSupply Adjustment(PSA) Fuel Cost470.5212.9220.8(7.9)Debt Service137.163.763.00.7Transfers231.6115.8115.80.0Total Expenditures$1,331.2 $670.6$662.7$7.9Excess(Deficiency)33.2(75.9)(56.0)19.9EndingBalance$2282$1192$1519$3272Ending Balance$228.2 $119.2$151.9 $32.7 2014Q2Revenue Highlights5,485 5,762 5,497 5,885 581440006,0008,000$300$400$500$265.0$273.7$261.5$269.4$270.002,0004,000$0$100$2002011Q22012Q22013Q22014Q22014Q2Allotment2011 Q22012 Q2 2013 Q2 2014 Q2 2014 Q2 AllotmentBase Revenue $ ( in Millions)Billed GWh SalesAE System Peak Demand 2,1952098y(Megawatts or MW)•2,098 MW on February 6 at 7 p.m. oTemperature 31 degrees at peakRecordpeaksinJanuaryandMarch,1,7711,8852,098FY2011Q2FY2012Q2FY2013Q2FY2014Q2oRecord peaks in January and MarchoFY 2013 Q2 peak on January 16oFY 2012 Q2 peak on March 31•Sufficient owned & purchased poertomeetcstomerdemand3FY 2011 Q2 FY 2012 Q2FY 2013 Q2FY 2014 Q2power to meet customer demand 2014Q2 YTDPower SupplyPower Supply Costs by Type$221 MillionPercent of Energy Supply5.9 Million MWhCoal20%NuclearMarket Purchases22%Coal32%Market Purchases9%4%Natural GasNuclearRenewables16%Renewables39%26%Natural Gas11%23%11%4 2014 Q2Revenue Highlights$46.450Other Revenue Allotment vs. Actual(in millions)$34.9$289$32.0354045$28.9$23.8$22.5$18.9$18.015202530$ Millions$1.3$1.10510150RegulatoryTransmission RevenueCommunity BenefitOther RevenueInterest IncomeAllotment Q2 YTDActual Q2 YTD5 2014 Q2 Requirements Highlights$168.5$179.8$198.3$205.4$217.9$45.3$47.7$53.0$57.7$60.3$500$750$670.6$542.5$547.3$662.7$593.1$177.0$167.0$190.9$220.8$212.9$151.7$152.8$150.9$178.8$179.5$168.5$179.8$0$250$FY11 Q2FY12 Q2 FY13 Q2FY14 Q2 Allotment Q2 FY14FuelTransfers OutNon‐Fuel OperatingNuclear & Coal O&MTotal Requirements $7.9 million below budget allotment•Non‐fuel operating expenses $12.5M below allotmentoBelow allotment in personnel costs, contractual services (pole audit, vehicle leases, temp services)BelowallotmentonenergyefficiencyrebatesExpectedtopickuplasthalfofyearoBelow allotment on energy efficiency rebates. Expected to pick up last half of year.•Nuclear and Coal operating costs $2.6M below estimateoSavings realized during Fall Unit 2 refueling outage at South Texas Project•Transfers Out include General Fund, Debt Service, Capital Program cash6oOn target through the second quarter Austin Energy Financial UpdateQuestions?7