Item 8- Staff Briefing First Quarter Financial Report — original pdf

Backup

Austin Energy Quarterly Financial Report 1st Quarter FY 2025 Stephanie Koudelka Austin Energy Director of Finance February 2025 © Austin Energy Agenda Executive Summary Financial Health Budget to Actual Financial Statements Quarterly Financial Report 2 Executive Summary FY25 Operating Results Bond Rating Operating income was favorable compared to budget by 7%. Austin Energy’s AA- bond rating was affirmed, remaining below target AA. Financial Policies Austin Energy is substantially compliant with policies as of December. Power Supply Adjustment $111M over recovered as of December. 3 Financial Health S&P Bond Rating (Target AA) Days Cash on Hand Debt Service Coverage Operating Margin Debt to Capitalization Target > 200 Days Target > 2.5x Target > 10% Target < 50% Actual 194 Days Actual 2.3x Actual 11% Actual 56% Includes 40 Days of pass- through over recovery AA- Stable Outlook • AA- rating was affirmed by S&P • $241M bond issuance November 2024 • Successful sale with strong investor demand 4 Austin Energy Quarterly Financial Report Financial Statements 5 Budget to Actual – Fund Summary Millions of $ Actual Budget 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 Administrative Support General Fund Economic Development Other Transfers CIP Transfer - Internal $ 171 $ 163 134 123 420 120 248 368 52 5 9 (42) 24 (10) (31) (3) (4) (25) 115 114 400 100 244 344 56 5 9 (45) 25 (10) (31) (3) (4) (25) Favorable (Unfavorable) $ 8 (19) (9) (20) 20 4 24 4 0 0 (3) 1 0 0 0 0 0 Excess (Deficiency) of Revenues $ (48) $ (49) $ 1 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 $400M Capital Project Spend Financing Power Generation Joint Projects Transmission Distribution Substations District Cooling General 12% 26% 62% Cash Debt $ Millions $0 $50 $100 $150 $200 Contributions in Aid of Construction FY25 Spend Plan FY25 Actuals 8 $ 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) Income Statement Fiscal Year Ended 12/31/2023 12/31/2024 $283 115 $263 109 95 182 53 $42 (8) (29) $5 100 202 52 $44 (8) (31) $5 Average Number of Customers 568,533 548,044 3.7% increase FYTD 2025 FYTD 2024 Residential Commercial/Industrial Sales in Gigawatt-hours 3,423 3,321 3% increase FYTD 2025 FYTD 2024 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 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 12/31/2024 12/31/2023 $237 350 222 262 289 3,071 1,938 6,369 252 2,042 110 2,194 1,771 $379 285 316 282 283 3,230 1,821 6,596 248 2,198 64 2,289 1,797 6,596 6,369 $900 $800 $700 $600 $500 $400 $300 $200 $100 $- Cash Position vs AA Target ($ millions) Working Capital & Reserves $695M Actual $782M Target 10 ©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.