Item 10- Briefing: Fourth Quarter Financial Report — original pdf

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Austin Energy Quarterly Financial Report 4th Quarter FY 2025 Stephanie Koudelka Austin Energy Director of Finance November 2025 © Austin Energy Item 10Agenda Quarterly Financial Report Executive Summary Financial Health Budget to Actuals Financial Statements Competitiveness Metric 2 Executive Summary Operating Results Operating income was above budget by $7m, or 1.5% for the fiscal year. Bond Rating AA- bond rating was affirmed in October 2025, remaining below AA target. Financial Policies Substantial compliance with financial policies. Power Supply Adjustment The PSA was $105M over recovered as of September. 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 2.5x Actual 21% Actual 57% Includes ~33 Days of Power Supply Adjustment over recovery Includes 10% increase for a one-time adjustment for other post employment benefit costs 4 Rating Agency Update $425 million, Series 2025 Bonds Credit Rating by Agency Stable Outlook S&P Fitch Moody’s AA- AA- Aa3 Credit Rating Drivers • Rate flexibility, including base rate increases and Power Supply Adjustment authority • Improved financial metrics including liquidity and coverage • Diverse generation portfolio 5 Rating Agency Update Future Considerations Downside Scenario (Downgrade) • Weakened financial metrics • Unplanned increases in operating and capital costs • Failure to implement timely rate increases Upside Scenario (Upgrade) • Successful implementation of resource plan • Sustained financial health 6 Austin Energy Quarterly Financial Report Budget to Actuals 7 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 Administrative Support Transfer General Fund Transfer Economic Development Transfer Other Transfers CIP Transfer Reserve Transfers $ 732 $ 711 576 528 1,815 515 854 1,369 446 5 38 (178) 311 (39) (125) (10) (19) (98) (50) 584 471 1,787 491 843 1,334 453 5 36 (165) 329 (39) (125) (10) (19) (128) (50) Favorable (Unfavorable) $ 21 8 (57) (28) 24 11 35 7 0 (2) 13 18 0 0 0 0 (30) 0 Excess (Deficiency) of Revenues $ (42) $ (30) $ (12) 8 80 60 40 20 0 s n o i l l i M $ Power Supply Adjustment 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 Capital Improvement Plan (CIP) $ 4 0 2 M C I P B U D G E T C I P F I N A N C I N G Power Generation Joint Projects Transmission Distribution Substations District Cooling General 10% 57% 33% $ Millions $0 $50 $100 $150 $200 FY25 Spend Plan FY25 Actuals Debt Cash Contributions in Aid of Construction 10 Austin Energy Quarterly Financial Report Financial Statements Income Statement $ in Millions 12 Months Ended 9/30/2025 9/30/2024 Operating Revenue $1,193 $1,141 Power Supply Operating Revenue Power Supply Operating Expense Operating Expenses Depreciation Expense Operating Income (Loss) Other Revenues (Expenses) General Fund Transfer Net Income (Loss) 584 491 685 220 $381 (212) (125) $44 544 481 802 224 $178 (38) (115) $25 Average Number of Customers 575,086 556,883 3% increase FYTD 2025 Residential FYTD 2024 Commercial/Industrial Sales in Gigawatt-hours 14,063 14,427 3% increase FYTD 2025 FYTD 2024 Residential Commercial/Industrial 12 Balance Sheet $ in Millions 9/30/25 9/30/24 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 $347 $286 377 313 315 350 296 278 306 358 3,468 3,220 1,523 1,820 6,632 6,625 301 300 2,202 2,037 228 268 2,066 2,229 1,835 1,791 $900 $800 $700 $600 $500 $400 $300 $200 $100 $- Cash Balances vs Target ($ millions) Working Capital & Reserves Total Liabilities, Deferred Inflows, & Equity 6,632 6,625 $724M Actual $782M Target 13 Austin Energy Quarterly Financial Report Competitiveness Metric System Average Rates by Provider CY2024 Source: U.S. Energy Information Administration Form 861, October 2024 15 Residential Average Monthly Bill CY2024 Source: U.S. Energy Information Administration Form 861, October 2024 16 ©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.