Item 6- Briefing: Austin Energy Quarterly Financial Report — original pdf

Backup

Austin Energy Quarterly Financial Report 4th Quarter FY 2024 Stephanie Koudelka Austin Energy Director of Finance November 2024 © Austin Energy Agenda Executive Summary Financial Health Budget to Actual Financial Statements Market and Industry Analyses Quarterly Financial Report 2 Executive Summary FY24 Operating Results Bond Rating Operating income was unfavorable compared to budget by 6%. Austin Energy’s AA- bond rating was affirmed, remaining below target AA. Financial Policies Power Supply Adjustment Austin Energy is not in full compliance as of September. The PSA was $56M over recovered as of September. 3 Financial Health S&P Bond Rating (Target AA) Days Cash on Hand Debt Service Coverage Operating Margin Debt to Capitalization Minimum > 150 Days Minimum > 2.5x Minimum > 10% Minimum < 50% Actual 159 Days Actual 2.2x Actual 5% Actual 57% AA- Stable Outlook • Recent delayed cost recovery and low liquidity • Dynamic use of PSA mechanism and annual base rate increases • Diversified generation and historically limited exposure 4 Austin Energy Quarterly Financial Report Financial Statements 5 Budget to Actual – Fund Summary Millions of $ Base Revenue Power Supply Revenue Other Operating Revenues Total Operating Revenues Power Supply Expense Other Operating Expenses Total Operating Expenses Operating Income (Loss) Transfers In Interest Revenue Debt Service Income (Loss) Before Transfers Out General Fund Economic Development Other Transfers Reserve Transfers - Internal CIP Transfer - Internal Actual Budget Favorable (Unfavorable) $ 696 $ 697 $ (1) (62) 6 (57) 66 (33) 33 (24) 0 11 (7) (20) 0 0 0 (61) (2) 548 452 1,696 484 817 1,301 395 5 33 (178) 255 (115) (10) (51) (80) (82) 610 446 1,753 550 784 1,334 419 5 22 (171) 275 (115) (10) (51) (19) (80) Excess (Deficiency) of Revenues $ (83) $ - $ (83) 6 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 7 Actual to Budget Analysis Capital Improvement Plan Type of Project 107% of Spend Plan Type of Financing 20% 24% 56% Distribution District Cooling Transmission Joint Projects General Substations Other Power Generation $0 $50 $100 $150 $200 $250 Millions of $ Contributions in Aid of Construction Cash Debt FY 2024 CYE Year-to-Date 8 Income Statement $ in Millions 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) Fiscal Year Ended 9/30/2024 9/30/2023 $1,139 548 $1,094 695 484 894 222 $87 57 (115) $29 634 895 228 $32 54 (115) ($29) Average Number of Customers 556,883 541,368 FYTD 2024 FYTD 2023 Residential Commercial/Industrial Sales in Gigawatt-hours 14,013 14,262 3% Change -2% Change FYTD 2024 FYTD 2023 Residential Commercial/Industrial 9 Balance Sheet $ in Millions Cash Other Current Assets Operating Reserves Nuclear Decommissioning Reserve Other Restricted Assets Capital Assets Other LT Assets & Deferred Outflows 9/30/2023 9/30/2024 $175 $286 381 332 220 313 258 278 393 360 3,216 3,067 1,922 1,995 Total Assets and Deferred Outflows 6,707 6,489 Other Current Liabilities Revenue Bonds Commercial Paper Other LT Liabilities & Deferred Inflows Retained Earnings Total Liabilities, Deferred Inflows, and Fund Equity 328 290 2,041 2,143 77 268 2,317 2,175 1,791 1,766 6,707 6,489 Cash and Reserves ($ millions) $300 $286 $188 $350 $250 $200 $150 $100 $50 $- $599M Actual $569M Target $134 $125 $140 $113 $107 $75 Working Capital Contingency Power Supply Stabilization Capital Reserve 10 Austin Energy Quarterly Financial Report Affordability Metric – Competitiveness Metric 11 System Average Rates by Provider CY2023 ¢/kWh 7.54¢ 8.80¢ 8.92¢ 9.14¢ CITY OF DENTON - (TX) SOUTHWESTERN PUBLIC SERVICE CO BLUEBONNET ELECTRIC COOP, INC SOUTHWESTERN ELECTRIC POWER… AUSTIN ENERGY EL PASO ELECTRIC CO TXU ENERGY RETAIL CO, LLC TEXAS CITY OF SAN ANTONIO - (TX) CITY OF NEW BRAUNFELS - (TX) RELIANT ENERGY PEDERNALES ELECTRIC COOP, INC BROWNSVILLE PUBLIC UTILITIES… AMIGO ENERGY GREEN MOUNTAIN ENERGY COMPANY 10.58¢ 10.60¢ 10.83¢ 10.87¢ 10.91¢ 11.38¢ 11.65¢ 11.69¢ 12.78¢ 14.23¢ 14.94¢ Source: U.S. Energy Information Administration Form 861, October 2024 12 Average Rates by Customer Class CY2023 14.51¢ 13.00¢ 10.58¢ 10.87¢ 9.22¢ 8.13¢ System Residential Commercial & Industrial Austin Energy Texas Average Source: U.S. Energy Information Administration Form 861, October 2024 13 Residential Average Monthly Bill CY2023 EL PASO ELECTRIC CO CITY OF DENTON - (TX) AUSTIN ENERGY CITY OF SAN ANTONIO - (TX) SOUTHWESTERN ELECTRIC POWER CO BLUEBONNET ELECTRIC COOP, INC SOUTHWESTERN PUBLIC SERVICE CO BROWNSVILLE PUBLIC UTILITIES BOARD PEDERNALES ELECTRIC COOP, INC CITY OF NEW BRAUNFELS - (TX) GREEN MOUNTAIN ENERGY COMPANY TEXAS AMIGO ENERGY RELIANT ENERGY RETAIL SERVICES TXU ENERGY RETAIL CO, LLC $96.41 $110.62 $114.17 $133.16 $136.24 $138.06 $140.44 $141.14 $143.80 $153.55 $156.48 $167.96 $171.71 $178.78 $201.44 Source: U.S. Energy Information Administration Form 861, October 2024 14 ©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.