Item 20 Staff Briefing — original pdf

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Austin Energy Quarterly Financial Report 3rd Quarter FY 2024 Stephanie Koudelka Austin Energy Director of Finance August 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 $1.2B Revenues 3% under budget due to lower power supply costs. $(1.3B) Expenses Costs outpaced revenues by 4% at June. Financial Policies Austin Energy is not in full compliance. Power Supply Adjustment $1M under recovered as of June. 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 119 Days Actual 2.5 Actual 5% Actual 57% 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 June 30, 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 $1,187 953 234 5 23 (117) 145 (27) (86) (7) (2) (7) (3) (60) ($47) Difference Favorable (Unfavorable) ($44) 20 (24) 0 6 (3) (21) 0 0 0 0 0 0 0 $1,231 973 258 5 17 (114) 166 (27) (86) (7) (2) (7) (3) (60) ($26) (4%) 2% (9%) 0% 35% (3%) (13%) 0% 0% 0% 0% 0% 0% 0% ($21) (81%) 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 June 30, 2024 s n o i l l i m $ 500 450 400 350 300 250 200 150 100 50 0 Base Power Supply Regulatory Transmission District Cooling Miscellaneous Community Benefit Actual Budget 9 Budget to Actual - Expense Fiscal Year Through June 30, 2024 s n o i l l i m $ 400 350 300 250 200 150 100 50 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 74% of Spend Plan Type of Financing 16% 24% 60% Cash Debt Distribution District Cooling Transmission Joint Projects General Substations Other Power Generation $0 $50 $150 $200 Contributions in Aid of Construction $100 Millions of $ FY 2024 CYE 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 Income Statement $ in Millions Fiscal Year Ended 6/30/2024 6/30/2023 Average Number of Customers 553,166 538,843 Operating Revenues Power Supply Operating Revenue Power Supply Operating Expense Operating Expenses Depreciation Expense Operating Income (Loss) Other Revenues (Expenses) General Fund Transfer Net Income (Loss) $809 375 335 612 165 $72 (15) (86) ($29) $744 405 367 613 148 $21 6 (86) ($59) FYTD 2024 FYTD 2023 Residential Commercial/Industrial Sales in Gigawatt-hours 9,699 9,475 2.5% Change 2% 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 6/30/2023 6/30/2024 $86 $264 362 325 283 225 252 270 334 330 3,126 3,019 1,947 1,765 Total Assets and Deferred Outflows 6,487 6,101 Other Current Liabilities Revenue Bonds Commercial Paper Other LT Liabilities & Deferred Inflows Retained Earnings Total Liabilities, Deferred Inflows, and Fund Equity 266 295 2,024 2,125 40 226 2,206 1,935 1,736 1,735 6,487 6,101 Cash and Reserves ($ millions) $264 $181 $490M Actual $569M Target $134 $112 $140 $114 $73 $41 Working Capital Contingency Power Supply Stabilization Capital Reserve $300 $250 $200 $150 $100 $50 $- 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 50 117 119 94 FY20 FY21 FY22 FY23 FY24 at June 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 ©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. 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