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

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Item 8 Austin Energy Quarterly Financial Report 2nd Quarter FY 2025 Stephanie Koudelka Austin Energy Director of Finance May 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 results are trending above budget, primarily due to the reserve transfer. Austin Energy’s AA- bond rating was affirmed, remaining below target AA. Financial Policies Austin Energy is substantially compliant with financial policies. Power Supply Adjustment The PSA was $103M over recovered as of March. 3 Financial Health S&P Bond Rating Target: AA Austin Energy: AA- Days Cash on Hand Debt Service Coverage Operating Margin Debt to Capitalization Target > 200 Days Target > 2.5x Target > 10% Target < 50% Actual 193 Days Actual 2.5x Actual 13% Actual 57% Includes 30 Days of PSA over recovery 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 Power Supply Stabilization Reserve $ 337 259 234 830 206 446 652 178 5 18 (76) 125 (20) (63) (5) (8) (49) (30) $ 318 251 247 816 229 446 675 141 5 18 (68) 96 (20) (63) (5) (8) (49) (30) Favorable (Unfavorable) $ 19 8 (13) 14 23 0 23 37 0 0 (8) 29 0 0 0 0 0 0 Excess (Deficiency) of Revenues $ (50) $ (79) $ 29 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 $402M Capital Project Spend Financing Power Generation Joint Projects Transmission Distribution Substations District Cooling General $ Millions $0 $50 $100 $150 $200 FY25 Spend Plan FY25 Actuals 13% 28% 59% Cash Debt Contributions in Aid of Construction 8 Income Statement $ in Millions 6 Months Ended 3/31/2025 3/31/2024 Operating Revenue Power Supply Operating Revenue Power Supply Operating Expense Operating Expenses Depreciation Expense Operating Income (Loss) Other Revenues (Expenses) General Fund Transfer Net Income (Loss) $568 259 206 429 97 $95 (16) (63) $16 $524 223 200 403 106 $38 (8) (58) ($28) Average Number of Customers 569,932 550,047 4% increase FYTD 2025 FYTD 2024 Residential Commercial/Industrial Sales in Gigawatt-hours 6,581 6,326 4% increase FYTD 2025 FYTD 2024 Residential Commercial/Industrial 9 Balance Sheet $ in Millions Cash Operating Reserves Other Current Assets 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 March 2025 March 2024 $256 223 325 266 302 3,124 1,925 6,421 268 2,059 158 2,199 1,737 $346 350 295 287 321 3,270 1,819 6,688 263 2,220 110 2,287 1,808 6,688 6,421 $900 $800 $700 $600 $500 $400 $300 $200 $100 $- Cash Position vs AA Target ($ millions) Working Capital & Reserves $696M 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.