Item 12 Second Quarter Financial Report — original pdf

Backup

Item 12 Austin Energy Quarterly Financial Report 2nd Quarter FY 2024 Stephanie Koudelka Austin Energy Director of Finance May 2024 © Austin Energy Agenda Executive Summary Financial Health Budget to Actual Financial Statements Market and Industry Analyses Quarterly Financial Report 2 Austin Energy Quarterly Financial Report Executive Summary 3 Executive Summary $770M Revenues 6% under budget due to lower power supply costs. $(822M) Expenses Costs outpaced revenues by 7% at March. Financial Policies Austin Energy is not in full compliance. Power Supply Adjustment $27M under recovered as of March. This information contains unaudited and forecasted data that is subject to change. See link for FY23 audited Annual Comprehensive Financial Report: https://www.austintexas.gov/sites/default/files/files/Finance/Financial%20Transparency/CAFR/AnnualComprehensivelFinancialReport2023.pdf 4 Austin Energy Quarterly Financial Report Financial Health 5 Financial Health S&P Bond Rating AA- Excessive Deficient Liquidity Coverage Efficiency Leverage Days Cash on Hand Debt Service Coverage Ratio Operating Margin Debt to Capitalization Minimum > 150 Days Minimum > 2.5 Minimum > 10% Minimum < 50% Actual 117 Days Actual 2.4 Actual 4% Actual 56% This information contains unaudited and forecasted data that is subject to change. See link for FY23 audited Annual Comprehensive Financial Report: https://www.austintexas.gov/sites/default/files/files/Finance/Financial%20Transparency/CAFR/AnnualComprehensivelFinancialReport2023.pdf 6 Austin Energy Quarterly Financial Report Budget to Actual 7 Budget to Actual - Fund Summary Fiscal Year Through March 31, 2024 Millions of $ Actual Budget % Operating Revenues Operating Expenses Operating Income (Loss) Transfers In Interest Revenue Debt Service Income (Loss) Before Transfers Administrative Support General Fund Economic Development Voluntary Utility Assistance Fund CTM Fund Other City Transfers Internal Transfers / CIP Excess (Deficiency) of Revenues Difference Favorable (Unfavorable) ($53) 38 (15) 0 4 (1) (12) 0 0 0 0 0 0 0 $803 660 143 5 11 (71) 88 (18) (58) (5) (1) (5) (1) (40) ($40) (7%) 6% (10%) 0% 36% (1%) (14%) 0% 0% 0% 0% 0% 0% 0% ($12) (30%) $750 622 128 5 15 (72) 76 (18) (58) (5) (1) (5) (1) (40) ($52) This information contains unaudited and forecasted data that is subject to change. See link for FY23 audited Annual Comprehensive Financial Report: https://www.austintexas.gov/sites/default/files/files/Finance/Financial%20Transparency/CAFR/AnnualComprehensivelFinancialReport2023.pdf 8 Budget to Actual - Revenue Fiscal Year Through March 31, 2024 s n o i l l i m $ 350 300 250 200 150 100 50 0 Base Power Supply Regulatory Transmission District Cooling Miscellaneous Community Benefit Actual Budget 9 Budget to Actual - Expense Fiscal Year Through March 31, 2024 s n o i l l i m $ 250 225 200 175 150 125 100 75 50 25 0 Power Supply Transmission Service General & Administrative Power Production Electric Service Delivery Customer Care District Cooling Customer Energy Solutions Actual Budget This information contains unaudited and forecasted data that is subject to change. See link for FY23 audited Annual Comprehensive Financial Report: https://www.austintexas.gov/sites/default/files/files/Finance/Financial%20Transparency/CAFR/AnnualComprehensivelFinancialReport2023.pdf 10 Budget to Actual - Power Supply Adjustment s n o i l l i m $ 80 $ 60 40 20 0 Actual Cost Budget Cost PSA Revenue This information contains unaudited and forecasted data that is subject to change. See link for FY23 audited Annual Comprehensive Financial Report: https://www.austintexas.gov/sites/default/files/files/Finance/Financial%20Transparency/CAFR/AnnualComprehensivelFinancialReport2023.pdf 11 Actual to Budget Analysis Capital Improvement Plan Type of Project 63% of Spend Plan Type of Financing 16% 28% 56% Cash Debt Distribution District Cooling Transmission Joint Projects General Substations Power Production $0 $20 $40 $80 $100 $120 Contributions in Aid of Construction $60 Millions of $ FY 2024 Spend Plan Year-to-Date This information contains unaudited and forecasted data that is subject to change. See link for FY23 audited Annual Comprehensive Financial Report: https://www.austintexas.gov/sites/default/files/files/Finance/Financial%20Transparency/CAFR/AnnualComprehensivelFinancialReport2023.pdf 12 Austin Energy Quarterly Financial Report Financial Statements 13 $ in Millions Operating Revenues Power Supply Revenues Power Supply Expenses Non-Power Supply Expenses Depreciation Expense Operating Income (Loss) Other Revenues (Expenses) General Fund Transfer Net Income (Loss) Income Statement Fiscal Year Ended 3/31/2024 3/31/2023 $524 $489 224 201 403 107 $37 (8) (58) ($29) 249 227 407 100 $4 (3) (58) ($57) Average Number of Customers 550,047 536,866 2% YOY change FYTD 2024 FYTD 2023 Residential Commercial/Industrial Sales in Gigawatt-hours 6,307 6,249 1% YOY change FYTD 2024 FYTD 2023 Residential Commercial/Industrial This information contains unaudited and forecasted data that is subject to change. See link for FY23 audited Annual Comprehensive Financial Report: https://www.austintexas.gov/sites/default/files/files/Finance/Financial%20Transparency/CAFR/AnnualComprehensivelFinancialReport2023.pdf 14 Balance Sheet $ in Millions Cash Other Current Assets Operating Reserves Nuclear Decommissioning Reserve Other Restricted Assets Capital Assets Other LT Assets & Deferred Outflows Total Assets and Deferred Outflows Other Current Liabilities Revenue Bonds Commercial Paper Other LT Liabilities & Deferred Inflows Retained Earnings Total Liabilities, Deferred Inflows, and Fund Equity 3/31/2024 $256 325 223 266 303 3,090 1,958 6,421 268 2,059 158 2,199 1,737 3/31/2023 $130 297 282 247 297 3,022 1,768 6,043 270 1,912 210 1,913 1,738 6,421 6,043 $300 $250 $200 $150 $100 $50 $- Cash and Reserves ($ millions) $256 $181 $134 $140 $111 $114 $72 $40 Working Capital Contingency Power Supply Stabilization Capital Reserve March 2024 Actual FY24 Target This information contains unaudited and forecasted data that is subject to change. See link for FY23 audited Annual Comprehensive Financial Report: https://www.austintexas.gov/sites/default/files/files/Finance/Financial%20Transparency/CAFR/AnnualComprehensivelFinancialReport2023.pdf 15 Austin Energy Quarterly Financial Report Market and Industry Analysis 16 Days Cash on Hand Working Capital and Reserves 222 213 250 200 150 100 s y a D f o r e b m u N 50 117 117 94 FY20 FY21 FY22 FY23 FY24 at March Industry Standard Days Cash on Hand Policy Minimum This information contains unaudited and forecasted data that is subject to change. See link for FY23 audited Annual Comprehensive Financial Report: https://www.austintexas.gov/sites/default/files/files/Finance/Financial%20Transparency/CAFR/AnnualComprehensivelFinancialReport2023.pdf 17 Rating Agency Communication S&P Fitch Liquidity and Margins • Operating environment requires stronger liquidity • Expects Austin Energy to strengthen metrics • Decline in liquidity metrics • Thin operating margins Moody’s • Decline in financial metrics – cash and coverage • Lagging rate increases This information contains unaudited and forecasted data that is subject to change. See link for FY23 audited Annual Comprehensive Financial Report: https://www.austintexas.gov/sites/default/files/files/Finance/Financial%20Transparency/CAFR/AnnualComprehensivelFinancialReport2023.pdf 18 ©Austin Energy. All rights reserved. Austin Energy and the Austin Energy logo and combinations thereof are trademarks of Austin Energy, the electric department of the City of Austin, Texas. Other names are for informational purposes only and may be trademarks of their respective owners.