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Action Item # 7 Adopt Purchase Power Planc.b.Adopt Budgeta.the FY12 and FY13 BudgetConsideration of Approving
FY12 and FY13 Budget 2 Electric and Water reserves and revenue•Electric and Water operational and capital budgets•October 19Supporting services budgets•Purchase Power Plan•Overview•October
5Objectives, goals, and assumptions•September 7 Budget Process Schedule
FY12 and FY13 Budget 3 Adopt the FY12 and FY13 Purchase Power Plan•Approve the related FY12 and FY13 budget transfers•Adopt the FY12 and FY13 Budget•November 16Financial Master Plan•Public
hearing•Draft FY12 and FY13 Budget•November 2(cont)
FY12 and FY13 Budget 4 No new debt–increased from 0% to 4% per yearMost other operational expenses will remain flat or slightly –FY11 BudgetStaffing includes a reduction of two employees
from the –FY13Direct labor rates will be flat in FY12 and increased 3% in –No electric and water rate increases in FY12 and FY13–assumptions:At previous workshops, Staff presented the
following key •budgetyear -District Code requires the District to prepare a two•Background / History
Background / History (cont)FY12 and FY13 Budget 5$3.4 million annual debt service–2003 COP debt is extinguished in FY12–year expenses-to-No material change in year–Electric Utility Expenses•Budgeted
demand decreases in FY12; no change in FY13–No rate increase–Electric Utility Revenue•
Background / History (cont)Budget 13& FY 12 FY 6 Forecast new construction to be slow–Lake substationReliability Improvement Project, and the reliability of Donner Focus will continue
on system maintenance, the SCADA –One less employee–Electric Operations•
Background / History (cont)Budget 13& FY 12 FY 7 No main replacement projects in FY12 and FY13•Water meter installation project •Water SCADA system •Capital expenditures–year expenses-to-No
material increases in year–Water Utility Expenses•Decreased demand–No rate increase–Water Utility Revenue•
Background / History (cont)Budget 13& FY 12 FY 8 meterspipeline replacement, and the conservation effect of water Reduced power costs due to energy efficiency increases, –One less employee–Water
Operations•
Comparison of FY12 Budget to FY11 Budget FY12 and FY13 Budget 9(in thousands)
Comparison of FY13 Budget to FY12 Budget FY12 and FY13 Budget 10(in thousands)
11(in thousands)Electric Department Projected Reserve Fund Balances FY12 and FY13 Budget
12(in thousands)Water Department Projected Reserve Fund Balances FY12 and FY13 Budget
Purchase Power Plan Expenditure Detail 4.38%$3.2073.13$69.93$MWhTotal Delivered Cost $/0.00%0162,000162,000Total Annual MWh 4.4%$ 519,147 $ 11,847,806 $ 11,328,658 Total Bulk Power
Costs($104,429)($28,012)$76,416 WAPA cost/(credit) toward MWh's($9,134)$68,859 $77,993 NCPA-Scheduling $5,781 $1,049,546 $1,043,766 NVEnergy-Transmission $66.40$62.53$/MWh$626,929 $10,757,413
$10,130,484 Various-Total Energy Supply CHANGE20122011Purchased Power and Resource Costs$ BUDGETBudgetBudget2011 to 20122012 BUDGET FY12 & FY13 Purchase Power Plan 13 Budget FY11 vs.
FY12–
Purchase Power Plan Expenditure Detail 0.97%$0.7273.85$73.13$MWhTotal Delivered Cost $/0.67%1,082163,082162,000Total Annual MWh 1.6%$ 196,516 $ 12,044,322 $ 11,847,806 Total Bulk
Power Costs$0 ($28,012)($28,012)WAPA cost/(credit) toward MWh's$4,367 $73,226 $68,859 NCPA-Scheduling $31,486 $1,081,033 $1,049,546 NVEnergy-Transmission $66.95$66.40$/MWh$160,663 $10,918,075
$10,757,413 Various-Total Energy Supply CHANGE20132012Purchased Power and Resource Costs$ BUDGETBudget Budget2012 to 20132013 BUDGET FY12 & FY13 Purchase Power Plan 14 Budget FY12
vs. FY13–
New Information FY12 Resource Mix 42%Renewables12%Murray-Landfill Gas 23%Horse Butte-Wind 7%Sm Hydro -Stampede 0%PPM-Wind 5%UAMPS Pool6%Nat Gas-Payson 27%PurchaseYear Market -5 2%ExchangeFallon
18%Coal-SCE FY12 & FY13 Purchase Power Plan 15 FY12-Proposed Resource Portfolio •-Purchase Power Plan
New Information PPM 0%-Wind FY13 Resource Mix 42%Renewables12%Murray-Landfill Gas 23%ButteHorse -UAMPS Wind 7%Stampede Sm Hydro New Resource 5%4%UAMPS Pool6%Nat Gas-Payson 40%PurchaseYear
Market -53%Fallon Exchange FY12 & FY13 Purchase Power Plan 16 FY13–Proposed Resource Portfolio •-Purchase Power Plan
Fiscal Impact FY12 and FY13 Budget 17 yearsthat will affect the District’s spending for the next two fiscal This budget workshop is part of the overall budget process •
Recommendation Budget 13& FY 12 FY 18 Adopt the FY12 and FY13 Purchase Power Plan•Approve the budgeted transfers•and overhead allocation ratesApprove the resolution adopting the FY12
and FY13 Budget •
19 FY12 and FY13 Budget
20 BUDGETED TRANSFERS FY12 and FY13 Budget
21 FY12 and FY13 Budget
22 FY12 and FY13 Budget
23 FY12 and FY13 Budget
24 OVERHEAD ALLOCATION RATES FY12 and FY13 Budget
FY12 and FY13 Budget 25 expensesallocate overhead to the same accounts as the direct can be multiplied by the overhead allocation rates to (drivers) are related factors of direct expenses
that Metrics•a specific job, function, work order, etc.are impossible or impractical to assign to Indirect expenses•function, work order, etc. are easily attributed to a specific job,
Direct expenses •expenses (overhead) to work orders, departments, etc.are used to allocate indirect Overhead allocation rates •Background / History
FY12 and FY13 Budget 26 the District’s budgetOverhead rates have traditionally been adopted along with •and are an integral part of the budgetOverhead allocation rates are used in billable
work orders •There is no industry standard for overhead allocation rates•allocate indirect expensesOverhead allocation rates are strictly a factor used to •inefficiencyOverhead allocation
rates are no indication of efficiency or •(cont.)Background / History
New Information FY12 and FY13 Budget 27 FY11 and proposed FY12 and FY13 overhead allocation rates
28 FY12 and FY13 Budget
29 FINANCIAL MASTER PLAN FY12 and FY13 Budget
Financial Master Plan 30 Set of revenue and expense assumptions•Proposed FY12 and FY13 Budget•Actual results for most recent 12 months•Projects revenue and expenses through 2021–year
span-10–goals and to identify any challengesterm financial -Tool to ensure progress towards Board’s long–Presented to the Board annually since 2006–Financial Master Plan•Background
/ History
New Information Financial Master Plan 31 180 days of annual expenditures•Proposed new cash and reserve goal for the Electric Utility–3% in FY16 through FY18, and 4% thereafterInterest
earnings 1% in FY14, 2% in FY15, –No new debt–No staffing changes–3% annual inflation–1% annual customer growth–Assumptions•
Electric Financial Master Plan Financial Master Plan(thousands)
Electric Financial Master Plan Financial Master Plan(thousands)Projected Reserve Balance Graph–
Water Financial Master Plan Financial Master Plan(thousands)
Water Financial Master Plan Financial Master Plan(thousands)Projected Reserve Balance Graph–
Fiscal Impact Financial Master Plan 36 term goals-longFY12 and FY13 Budget is consistent with the District’s The Finance Master Plan validates that the proposed •