Item 15- Staff Briefing Third Quarter Financial Report — original pdf

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Austin Energy Quarterly Financial Report 3rd Quarter FY 2025 Stephanie Koudelka Austin Energy Director of Finance August 2025 © Austin Energy Item 15Agenda Executive Summary Financial Health Budget to Actuals Financial Statements Quarterly Financial Report 2 Executive Summary Operating Results Trending above budget, primarily due to the Power Supply Stabilization Reserve transfer. Bond Rating AA- bond rating was affirmed, remaining below AA target. Financial Policies Substantial compliance with financial policies. Power Supply Adjustment The PSA was $109M over recovered as of June. 3 Financial Health S&P Bond Rating Target: AA Actual: AA- Days Cash on Hand Debt Service Coverage Operating Margin Debt to Capitalization Target > 200 Days Target > 2.5x Target > 10% Target < 50% Actual 195 Days Actual 2.6x Actual 14% Actual 57% Includes ~30 Days of PSA over recovery 4 Austin Energy Quarterly Financial Report Budget to Actuals 5 Austin Energy 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 $ 513 $ 488 392 376 1,256 354 635 989 267 5 27 (112) 187 (30) (94) (8) (11) (74) (30) 401 348 1,262 332 636 968 294 5 27 (124) 202 (30) (94) (8) (11) (74) (30) Favorable (Unfavorable) $ 25 9 (28) 6 22 (1) 21 27 0 0 (12) 15 0 0 0 0 0 0 Excess (Deficiency) of Revenues $ (45) $ (60) $ 15 6 Power Supply Adjustment s n o i l l i m $ 80 60 40 20 0 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Actual Cost Budget Cost PSA Revenue 7 Capital Improvement Plan (CIP) Actual to Budget Analysis $402M CIP Budget CIP Financing Power Generation Joint Projects Transmission Distribution Substations District Cooling General $ Millions $0 $50 $100 $150 $200 FY25 Spend Plan FY25 Actuals 12% 62% 26% Debt Cash Contributions in Aid of Construction 8 Austin Energy Quarterly Financial Report Financial Statements 9 Income Statement $ in Millions 9 Months Ended 6/30/2025 6/30/2024 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) $858 401 332 638 154 $135 (24) (94) $17 $809 375 335 612 165 $72 (16) (86) ($30) Average Number of Customers 572,677 553,166 4% increase FYTD 2025 Residential FYTD 2024 Commercial/Industrial Sales in Gigawatt-hours 10,084 9,699 4% increase FYTD 2025 FYTD 2024 Residential Commercial/Industrial 10 Balance Sheet $ in Millions Cash Operating Reserves Other Current Assets Nuclear Decommissioning Reserve Other Restricted Assets Capital Assets Other LT Assets & Deferred Outflows June 2024 June 2025 $346 $264 225 352 326 305 270 291 330 249 3,385 3,150 1,816 1,923 Total Assets and Deferred Outflows 6,744 6,488 295 265 Other Current Liabilities Revenue Bonds 2,183 2,024 Commercial Paper 226 182 Other LT Liabilities & Deferred Inflows 2,306 2,207 1,808 1,736 Retained Earnings Total Liabilities, Deferred Inflows, and Fund Equity 6,744 6,488 Cash Balances vs Target ($ millions) $900 $800 $700 $600 $500 $400 $300 $200 $100 $- Working Capital & Reserves $698M Actual $782M Target 11 ©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.