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HomeMy WebLinkAbout#16 2024 Wildfire Mitigatioin Plan AGENDA ITEM #16 Public Utility District m MEETING DATE: June 5, 2024 TO: Board of Directors FROM: Steven Poncelet, Public Information Officer SUBJECT: Consideration to Approve the TDPUD 2024 Wildfire Mitigation Plan. APPROVED BY: Brian C. Wright, General Manager RECOMMENDATION: Approve the TDPUD 2024 Wildfire Mitigation Plan in substantially the same form, and direct staff to file with the Wildfire Advisory Safety Board before July 1, 2024. BACKGROUND: Devastating wildfires throughout the state of California have prompted electric utilities to identify areas within their jurisdiction susceptible to power-line ignited wildfires, and to take steps to prevent their occurrence. In 2012, the California Public Utilities Commission (CPUC) ordered the development of a statewide map (Fire-Threat Map) designed to identify areas where there is an increased risk for utility associated wildfires. Publicly Owned Utilities (POUs), including the District, participated in the development of the Fire-Threat Map and performed the assessment of the geographical areas under our responsibility. In September 2018, former Governor Jerry Brown signed state Senate Bill (SB) 901 . A section of the bill, amending Public Utilities Code Section 8387, directed California's electric utilities to develop wildfire mitigation plans related to power lines and equipment. POUs, such as the District, are required to annually prepare a Wildfire Mitigation Plan (WMP); receive an initial third party auditor independent review to assess compliance and ensure it complies with all applicable rules, regulations, and standards; and present it to their governing body annually at a noticed public meeting for comment and approval. The Board adopted the District's initial 2019 WMP in July of the same year. In October 2019, the Board awarded a contract for third party auditor services to review and comment on the WMP, and their findings were presented to the Board during a public meeting for consideration in December 2019. The third party auditor confirmed the District's plan complies with the intent of SB 901 and their recommendations were considered in the updated 2020 WMP, which was approved by the Board in May 2020 and sent to the California Wildfire Safety Advisory Board (WSAB) on July 1, 2020. Page 1 of 5 Page 254 of 449 In July 2020, the WSAB began reviewing WMPs for POUs and Investor Owned Utilities (IOUs). This review process has continued to evolve, requiring utilities to respond to a series of additional information requests and formatting changes by the WSAB. Key changes include adding a context setting table at the beginning of the WMP and expanding the introduction to summarize key changes to the WMP. These additions were included in the District's annual WMP updates 2021 and 2022, which were approved by the District's Board. All WMP's are required by statute to have a comprehensive update every three years. This comprehensive update was completed with the District's 2023 WMP. To help with the comprehensive update, the District's Board awarded Dudek a contract. Dudek was one of the few consultants qualified in California to perform this type of work, and worked extensively with District staff on the comprehensive update. The comprehensive update also included significant work by the California Municipal Utilities Associations (CMUA's) Wildfire Preparedness, Response, and Recovery Working Group, which created six sub-working groups to address key elements of WMPs, including: Metrics; Vegetation Management; Asset Management; Grid Design and System Hardening; Risk Modeling; and Climate Change. District staff participated in each of these sub-working groups, and the valuable information shared informed the WMP's comprehensive update. The District chose for the 2023 WMP comprehensive update to contract for independent evaluation services, which was last done in 2020 with the original plan. The District's Board awarded a contract to Guidehouse (formerly Navigent, who did the District's initial independent evaluation). Guidehouse is one of the few consultants qualified in California to perform this type of work. Guidehouse's Independent Evaluation of Truckee Donner Public Utility District's 2023 Wildfire Mitigation Plan concludes: • TDPUD's WMP aligns appropriately with PUC Section 8387 and includes all required elements; and • TDPUD's WMP is comprehensive, as described in this Report, in accordance with PUC Section 8387. Annually, the WASB releases a Guidance Advisory Opinion for the Wildfire Mitigation Plans of the Electric POUs and Rural Electric Cooperatives. The most recent WSAB document was in response to the POU's 2023 WMP's submitted before July 1, 2023. Historically, the WSAB Guidance Advisory Opinion contained a series of general guidance for all POU WMP's and then specific feedback for each electric utility. The specific feedback for the District's WMPs has been favorable. However, starting in 2024, the WSAB has opted to provide general guidance for all POUs based on a series of collaborative meetings with CMUA, which included the Northern California Power Agency (NCPA) and individual POUs. In addition, future versions of the WMP are expected to evolve as the WSAB attempts to standardize the Page 2 of 5 Page 255 of 449 required data, supporting documentation, metrics, lessons learned and formatting of the WMPs across all utilities. ANALYSIS AND BODY: The Truckee Donner Public Utility District 2024 Wildfire Mitigation Plan (2024 WMP) is the next regular annual update as required by SB 901 and is included as Attachment 1. As in previous years, the 2024 WMP outlines the processes and activities undertaken by the District to mitigate the threat of wildfires associated with overhead electric lines and associated equipment owned and operated by the District. Developing the WMP is part of larger District wildfire prevention efforts, which include emerging technologies, engineering control methods, improved materials, and increased vegetation management activities. It also identifies deficiencies of the plan and efforts to resolve them. The process of the regular annual update again included significant work by the CMUA's Wildfire Preparedness, Response, and Recovery Working Group, which meets regularly and has been engaged with the WSAB staff and Board. This working group has been instrumental in representing the interests of the POU community, and the regular discussions have again helped inform the District's 2024 WMP. The 2023 WMP has been updated to reflect current practices and procedures, and provides updates on the District's mitigation programs, progress, and metrics. Historically, the District has tracked and reported annually two metrics since the induction of the WMP: Primary Wire Down and Fires caused by District Electric Equipment. For the 2023 WMP, the District added a third metric, Outage Causes, which can now be tracked through the District's new Outage Management System. In addition, starting in 2023 for all three metrics, the District only reports these metrics during wildfire season (typically June 1 through October 31), given that most of the District's outages occur during winter storms and atmospheric rivers when wildfire danger is not a concern. Reporting winter outage statistics outside the wildfire season makes the metrics less effective. During 2023, the District recorded the following metrics during the wildfire season: • Fire caused by District Electric Equipment; Zero (0) events; • Primary Wire Down; One (1) events; and • Outages (Causes): 212 The outage causes range from equipment failures to animal contacts to human-caused outages. It should be noted that the District's wildfire mitigation practice of placing reclosers on 'one shot' does increase the length of intermittent contact wildfire season outages. Full details of the above can be found in the 2024 WMP. New for the 2024 WMP is the addition of the following new metrics which are further defined in the WMP: Page 3 of 5 Page 256 of 449 • All metrics regarding the District electric system will be broken down between the Distribution System and the Transmission System; • Fire Ignition, Wires Down, and Outages will be included in a new 'Outcomes' category, and the Outages metric is being redefined to cover outages caused by vegetation, other, and unknown; • Two new 'Outcomes' metrics are being added which are Safety Hazards, which reports the number of reported and verified safety hazards and Vegetation Management, which tracks the miles and/or number of poles cleared/treated; and • The District will begin tracking 'External Risks' with two new metrics being Red Flag Warnings and High Risk Warning Days. All of the currently proposed metrics came out of a metrics table developed collaboratively between CMUA and the WSAB. This overall list of metrics covers external risks, performance, outcomes, and planned upgrades. This metrics list is intended to be a starting point for a POU to consider for their individual WMPs, taking into account their local territory, current systems, and the size of the electric utility. The District is only adopting formal metrics that we have the ability to fully track and report and which add value to our wildfire mitigation efforts. Also, new for the 2024 WMP is the introduction of the development of a new District preemptive deenergization program that is being driven by increasing risks surrounding the operation of an electric utility which include climate, technology, and people. Under certain conditions, the District will deenergize all or portions of the District's electric service territory should conditions become too dangerous to operate safely. This program is intended to only be used in extreme danger situations and is being designed to minimize the impact on our customers and community. Staff plan to bring the new preemptive deenergization program for consideration by the Board soon. The move towards preemptive deenergization is partially driven by the recurring history of electric utility ignited wildfires (PG&E, Pacific Corp, Excel Energy, and Hawaiie Electric), the significant environmental and human loss due to these wildfires, and the strict liability that is being imposed on electric utilities regardless of guilt. District staff have been researching existing wildfire safety shutoff programs implemented by our surrounding electric utilities as well as working with our sister POU utilities through CMUA and NCPA to benchmark best practices and learn what fits best for the District and our community. District staff are also working to develop real-time situational awareness of weather conditions and wildfire risk, which are needed to determine when a wildfire safety deenergization is warranted. GOALS AND OBJECTIVES: District Code 1.05.020 Objectives: 1. Responsibly serve the public. 4. Provide reliable and high quality electric supply and distribution system to meet current and future needs. Page 4of5 Page 257 of 449 5. Manage the District in an environmentally sound manner. 6. Manage the District in an effective, efficient and fiscally responsible manner. District Code 1 .05.030 Goals: 1. Manage for Financial Stability and Resiliency 2. Environmental Stewardship: Create a sustainable resilient environment for all our communities. FISCAL IMPACT: The costs of complying with Senate Bill 901 and implementing the District's Wildfire Mitigation Plans have been significant, and were considered in past District budgets and will be considered in future District budgets. However, there is no direct Fiscal Impact associated with the approval of the TDPUD 2024 Wildfire Mitigation Plan and submission to the Wildfire Safety Advisory Board. ATTACHMENTS: 1. TDPUD Wildfire Mitigation Plan Update 2024 Page 5 of 5 Page 258 of 449 TRUCKEE DONNE Public Utility District WILDFIRE MITIGATION PLAN 2024 VERSION 5.0 (FIFTH ANNUAL UPDATE) May 31, 2024 Page 259 of 449 TABLE OF CONTENTS Acronyms and Abbreviations.................................................................................................iv I. Utility Overview and Context ....................................................................................... 1 A. Utility Description and Context Setting Table................................................................................ 1 B. Statutory Cross Reference Table.....................................................................................................7 C. Process for Utility Adoption and Submittal of Annual WMP and Opportunities for Public Comment ........................................................................................................................................12 D. Description of Where WMP Information Can Be Found on Utility Website ......................... 12 E. Purpose of the WMP.......................................................................................................................12 F. Organization of the WMP .............................................................................................................. 13 II. Objectives of the WMP................................................................................................ 13 A. Minimizing Sources of Ignition .......................................................................................................13 B. Resiliency of the Electric Grid........................................................................................................ 13 C. Minimizing Unnecessary or Ineffective Actions...........................................................................13 III. Roles and Responsibilities........................................................................................... 14 A. TDPUD Roles and Responsibilities.................................................................................................. 14 B. Coordination with Water Utilities/Department............................................................................15 C. Coordination with Communication Infrastructure Providers..................................................... 16 D. Standardized Emergency Management System .......................................................................16 IV. Wildfire Risks and Drivers ............................................................................................ 18 A. Particular Risks and Drivers Associated with Design, Construction, Operation, and Maintenance ..................................................................................................................................18 B. Particular Risks and Risk Drivers Associated with Topographical and Climatological Risk Factors..............................................................................................................................................19 Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 Page 260 of 449 ClimateChange................................................................................................................................19 C. Enterprise-Wide Safety Risks...........................................................................................................20 D. Changes to the CPUC Fire Threat Map .......................................................................................20 V. Wildfire Preventative Strategies.................................................................................. 20 A. High Fire Threat Map for TDPUD ....................................................................................................20 BWeather Monitoring .......................................................................................................................21 C. Design and Construction Standards ............................................................................................22 PoleReplacement Program ............................................................................................................22 Non-expulsion Current Limiting Fuses..............................................................................................22 FR3Insulating Fluid.............................................................................................................................23 Covered Primary Jumper Wire.........................................................................................................23 Proposed Service Requirements......................................................................................................23 Tree Attachments (Legacy Attachments) .....................................................................................24 Advanced Metering Infrastructure..................................................................................................24 Outage Management System.........................................................................................................25 Supervisory Control and Data Acquisition......................................................................................25 D. Vegetation Management.............................................................................................................26 E. Inspections.......................................................................................................................................27 F. Workforce Training..........................................................................................................................27 G. Recloser Policy................................................................................................................................27 H. De-energization ..............................................................................................................................28 Impactsto Public Safety...................................................................................................................29 Customer Notification Protocols......................................................................................................29 VI. Community Outreach and Public Awareness.......................................................... 30 VII. Restoration of Service................................................................................................. 31 Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 II Page 261 of 449 Vill. Evaluating the Plan ..................................................................................................... 32 A. Metrics and Assumptions for Measuring Plan Performance......................................................32 B. Impacts of Metrics on the Plan .....................................................................................................35 C. Monitoring and Auditing the Plan ................................................................................................35 D. Identifying and Correcting Deficiencies in the Plan ..................................................................35 E. Monitoring the Effectiveness of Inspections................................................................................36 F. Independent Auditor.....................................................................................................................36 IX. WMP Adoption Process............................................................................................... 37 X. References................................................................................................................... 38 FIGURE Figure 1 TDPUD Electric Service Territory Map ......................................... Error! Bookmark not defined. APPENDICES A CPUC High Fire Threat District Map for the Truckee Donner Public Utility B Prevailing Wind Map C Pole Replacement Ranking Tool D Vegetation Management Program Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 II Page 262 of 449 ACRONYMS AND ABBREVIATIONS �rAcronym/Abbreviation Definition AGM Assistant General Manager AMI advanced metering infrastructure CAL FIRE California Department of Forestry and Fire Protection CPUC California Public Utilities Commission ELF Energy Limiting Fuse GIS geographic information system GO General Order HFTD High Fire Threat District kV kilovolt NCJPA Northern California Joint Pole Association NISC National Information Solutions Cooperative OMS Outage Management System PIO Public Information Officer PSOM Public Safety Outage Management PSPS Public Safety Power Shutdown RFW Red Flag Warning SCADA Supervisory Control and Data Acquisition SEMS Standardized Emergency Management System TDPUD Truckee Donner Public Utility District VMP Vegetation Management Plan WMP (or Plan) Wildfire Mitigation Plan Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 IV Page 263 of 449 TILITY OVERVIEW AND CONTEXT A. UTILITY DESCRIPTION AND CONTEXT SETTING TABLE The Truckee Donner Public Utility District (TDPUD) is a special district of the State of California engaged in the distribution, sale, and delivery of electric power and water. TDPUD provides retail electric service to 14,739 customer accounts as of December 31, 2023, and the region has a large transient population driven by second homeowners and destination tourism which can increase population by two to three plus times. TDPUD's local primary transmission system is connected to NV Energy transmission system and is located high on the eastern slope of the Sierra Nevada. TDPUD's electric service territory comprises approximately 44 square miles in eastern Nevada County and approximately 1.5 square miles in adjacent Placer County. The electric system includes approximately 225 miles total with 135 miles of 12.47 kilovolt (kV) and 14.4 kV overhead distribution lines, and about 0.5 miles of 60 kV overhead transmission lines. In total, TDPUD has about 5,500 poles in its service territory (Figure 1). Utility Name Truckee Donner PublicD' Service Territory Size 45.5 square miles Owned Assets X❑ Transmission X❑ Distribution ❑ Generation Number of Customers Served 14,739 customer accounts Population Within Service Territory 16,676 people Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 1 Page 264 of 449 tility Name Truckee Donner PublicD' Number of Accounts Share of Total Load(MWh) 89% Residential 56% Residential Customer Class Makeup 2% Government 18% Government 0%Agricultural 0%Agricultural 8.9% Small/Medium Business 21% Small/Medium Business 0.1% Commercial/Industrial 5% Commercial/Industrial <1%Agriculture <3% Barren/Other Service Territory -55%Conifer Forest 0%Conifer Woodland 0% Desert <.75% Hardwood Forest 0% Hardwood Location/Topography' Woodland ^3% Herbaceous Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 2 Page 265 of 449 Donner PublicD' L--g <30%Shrub -8% Urban <5%Water 30%Wildland Urban Interface Service Territory Wildland 20%Wildland Urban Intermix Urban Interface' (based on total area) Percent of Service ❑X Includes maps (Appendix A) Territory in CPUC High Fire Threat Districts(based on Tier 2: 55% total area) Tier 3: 27% N Includes maps (Appendix B) Prevailing Wind Directions and Speeds by Season Prevailing winds were taken from both the Global Winds Atlas and Wind Rose data from archived records and assembled by Iowa State University. Gradient winds are generally out of the south/southwest shifting to west/southwest in 1 Based on the Wildland Urban Interface Maps available from the U.S. Geological Survey website titled "Wildland-urban interface maps for the conterminous U.S. based on 125 million building locations" (Carlson et al. 2022). Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 3 Page 266 of 449 tility Name .,����ner Public Utility District (TDPUD) the spring and summer months. The average wind speed is 4.4 mph with frequent gust in excess of 20 mph throughout the year.TDPUD's extreme weather and wind events occur in winter months when wildfire threat is typically low.These events are caused by atmospheric rivers and can bring winds in excess of 100 mph.These atmospheric river events and heavy snow falls are the reason TDPUD builds to a heavy loading standard and is able to withstand extreme weather events. Source: https:Hglobalwindatlas.info; https:Hmesonet.agron.iastate.edu/sites/windrose.phtmI?network=CA_ASOS &station=TRK Overhead Dist.: 135 miles Overhead Trans.: <0.5 miles Underground Dist.:—100 miles Underground Trans.: 0 miles Miles of Owned Lines Underground and/or Overhead Explanatory Note 1 -Methodology for Measuring "Miles": [e.g ., circuit miles, line miles.] Data from GIS system Explanatory Note 2—Description of Unique Ownership Circumstances: N/A Explanatory Note 3—Additional Relevant Context: [e.g., percentage of lines located outside service territory] N/A Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 4 Page 267 of 449 Utility Name Truckee Donner PublicD' Overhead Distribution Lines as%of Total Distribution System (Inside and Outside Service Territory) Percent of Owned Lines in CPUC High Fire Threat Districts Tier 2: 23% Tier 3:40% Overhead Transmission Lines as%of Total Transmission System (Inside and Outside Service Territory) Tier 2: < 1% Tier 3: 0% Explanatory Note 4—Additional Relevant Context: [e.g., explain any difference from data reported in WIMP due to different numerator used for this form] Customers have ever lost ❑ Yes X❑ No service due to an IOU PSPS event? Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 5 Page 268 of 449 Donner PublicD' _w tility Name JL Truckee Customers have ever been ❑ Yes 0 No notified of a potential loss of service to due to a forecasted IOU PSPS event? Has developed protocols ❑ Yes © No to pre-emptively shut off electricity in TDPUD is in the process of developing protocols to pre-emptively shut off response toelevated electricity in response to elevated wildfire risk in 2024 and plan to have wildfire risks? initial protocols in place for the 2024 wildfire season. ❑ Yes X❑ No If yes,then provide the following data for calendar year 2022: Has previously preemptively shut off electricity in response to Number of shut-off events: N/A elevated wildfire risk? Customer Accounts that lost service for>10 minutes: N/A For prior response, average duration before service restored: N/A Notes:TDPUD=Truckee Donner Public Utility District;CPUC=California Public Utilities Commission;GIS=geographic information system; N/A=not applicable;IOU=Investor-Owned Utilities;PSPS=Public Safety Power Shutdown. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 6 Page 269 of 449 B. STATUTORY CROSS REFERENCE TABLE Location in D- ret �'u en4P1=F1 ft—equirem Statutory Language WMP PUC Section 8387(b)(2)(A):An accounting of the Persons Section: 3 responsibilities of persons responsible for executing Responsible Pages: 14-15 the plan. Objectives of the PUC Section 8387(b)(2)(B):The objectives of the Section: 2 Plan wildfire mitigation plan. Page: 13-14 PUC Section 8387(b)(2)(C):A description of the preventive strategies and programs to be adopted by the local publicly owned electric utility or Preventive Section: 5 electrical cooperative to minimize the risk of its Strategies Pages: 20-30 electrical lines and equipment causing catastrophic wildfires, including consideration of dynamic climate change risks. PUC Section 8387(b)(2)(D):A description of the metrics the local publicly owned electric utility or Evaluation Section: 8 electrical cooperative plans to use to evaluate the Metrics Page: 32-35 wildfire mitigation plan's performance and the assumptions that underlie the use of those metrics. PUC Section 8387(b)(2)(E):A discussion of how the Impact of Metrics application of previously identified metrics to Section: 8 previous wildfire mitigation plan performances has Page: 35 informed the wildfire mitigation plan. PUC Section 8387(b)(2)(F): Protocols for disabling reclosers and de-energizing portions of the electrical De-energization distribution system that consider the associated Section: 5 Protocols impacts on public safety and protocols related to Page: 28-29 mitigating the public safety impacts of those protocols, including impacts on critical first Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 7 Page 270 of 449 Requirement • I WMP MA AM responders and on health and communication infrastructure. PUC Section 8387(b)(2)(G):Appropriate and feasible Customer procedures for notifying a customer who may be Notification impacted by the de-energizing of electrical lines.The Section: 5 Procedures procedures shall consider the need to notify, as a Page: 29-30 priority, critical first responders, health care facilities, and operators of telecommunications infrastructure. Vegetation PUC Section 8387(b)(2)(H): Plans for vegetation Section: 5 Management management. Pages: 26 PUC Section 8387(b)(2)(1): Plans for inspections of Section: 5 Inspections the local publicly owned electric utility's or electrical Page: 27 cooperative's electrical infrastructure. PUC Section 8387(b)(2)(J):A list that identifies, describes,and prioritizes all wildfire risks,and drivers for those risks,throughout the local publicly owned electric utility's or electrical cooperative's service territory.The list shall include, but not be limited to, both of the following: Prioritization of (i) Risks and risk drivers associated with design, Section: 4 Wildfire Risks construction, operation, and maintenance of the local pages: 18-20 publicly owned electric utility's or electrical cooperative's equipment and facilities. (ii) Particular risks and risk drivers associated with topographical and climatological risk factors throughout the different parts of the local publicly owned electric utility's or electrical cooperative's service territory. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 8 Page 271 of 449 Location in TDIPUD's Requirement Statutory Language WMP MA PUC Section 8387(b)(2)(K): Identification of any geographic area in the local publicly owned electric utility's or electrical cooperative's service territory CPUC Fire Threat that is a higher wildfire threat than is identified in a Section: Appendix A Map Adjustments commission fire threat map, and identification of Page: Attached where the commission should expand a high fire threat for TDPUD based on new information or changes to the environment. PUC Section 8387(b)(2)(L):A methodology for Enterprise-wide Section: 4 identifying and presenting enterprise-wide safety risk Risks Page: 20 and wildfire-related risk. PUC Section 8387(b)(2)(M):A statement of how the Restoration of Section: 7 local publicly owned electric utility or electrical Service Pages: 31 cooperative will restore service after a wildfire. PUC Section 8387(b)(2)(N): A description of the processes and procedures the local publicly owned electric utility or electrical cooperative shall use to do all of the following: (i) Monitor and audit the implementation of the wildfire mitigation plan. Monitor and (ii) Identify any deficiencies in the wildfire mitigation Section: 8 Audit plan or its implementation and correct those Page: 35-36 deficiencies. (iii) Monitor and audit the effectiveness of electrical line and equipment inspections, including inspections performed by contractors,that are carried out under the plan, other applicable statutes, or commission rules. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 9 Page 272 of 449 Requillrement Statutory Language ocation in TI)PUD's 11L WIVIP PUC Section 8387(c):The local publicly owned electric utility or electrical cooperative shall contract with a qualified independent evaluator with experience in assessing the safe operation of electrical infrastructure to review and assess the Qualified comprehensiveness of its wildfire mitigation plan.The Section: 9 Independent independent evaluator shall issue a report that shall Page: 36-37 Evaluator be made available on the Internet website of the local publicly owned electric utility or electrical cooperative and shall present the report at a public meeting of the local publicly owned electric utility's or electrical cooperative's governing board. Notes:TDPUD=Truckee Donner Public Utility District;WMP=Wildfire Mitigation Plan; PUC=Public Utilities Code. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 10 Page 273 of 449 Truckee Donner PuLft Wky Disbict �(tDPUD)ServiceTerrirory Figure 1 TDPUD Electric Service Territory Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 11 Page 274 of 449 C. PROCESS FOR UTILITY ADOPTION AND SUBMITTAL OF ANNUAL WMP AND OPPORTUNITIES FOR PUBLIC COMMENT The TDPUD Wildfire Mitigation Plan (WMP or Plan) is adopted by the TDPUD Board of Directors (Board) during a public meeting. TDPUD staff present the final version of the annual WMP to the Board for review. Included with the Plan is an agenda packet with a summary of the background and the contents of the current WMP. The agenda packet also includes a description of major changes from the previous year's WMP. During the Board meeting, consideration for the adoption of the current WMP is presented as an action item. TDPUD staff present an overview of the WMP, accomplishments, and changes to the Board members and the general public. After the conclusion of the presentation, Board members allow a period for public comment. After the public comment period has ended, Board members consider adoption of the WMP as presented by TDPUD staff. Board meeting documents, including meeting minutes, agendas, and presentations, as well as the meeting minutes and the agenda for the adoption of the 2023 WMP, are available online at the TDPUD website: https://web.tdpud.org/WebLink/Browse.aspx?id=289229&dbid=0&repo=TDPUD. D. DESCRIPTION OF WHERE WMP INFORMATION CAN BE FOUND ON UTILITY WEBSITE The current version of TDPUD's WMP is published on the utility website on the page dedicated to wildfire mitigation, safety, and emergency preparedness. The webpage contains information about TDPUD's wildfire prevention mitigation efforts, links to sign up for emergency notification by the utility, and links to the WMP and the independent evaluator's report from 2023. This page is easily accessible from the menu on TDPUD's home page and can be found by using the search tool found on every page on the utility's website. The link to the website is: httr)s://www.tdr)ud.org/departments/wildfire-emergency-preparedness. E. PURPOSE OF THE WMP This WMP describes the range of activities and strategies TDPUD is taking to mitigate the threat of overhead power line- and equipment-ignited wildfires, including its various programs, policies, and procedures. It addresses the unique features of TDPUD's service area such as topography, weather, infrastructure, grid configuration, and potential wildfire risks. This Plan is subject to direct approval by TDPUD's Board of Directors and is implemented by the General Manager. This Plan meets or exceeds the requirements of Public Utilities Code Section 8387 for publicly owned electric utilities to prepare a WMP by January 1, 2020, and to evaluate and update annually thereafter. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 12 Page 275 of 449 F. ORGANIZATION OF THE WMP This WMP includes the following elements: • Utility overview and context • Objectives of the Plan • Roles and responsibilities for executing the Plan • Identification of key wildfire risks and risk drivers • Description of wildfire prevention strategies • Metrics for measuring performance of the Plan and identifying areas for improvement • Annual and historical results for metrics • Description of community outreach and education, covering communication about wildfire prevention, utility mitigation efforts and strategies, and potential de-energization and re-energization practices • List of references cited • Appendices 11. OBJECTIVES OF dbL A. MINIMIZING SOURCES OF IGNITION The main objective of this Plan is to implement an actionable plan that will create increased reliability and safety while minimizing the probability that TDPUD's distribution system or equipment may be an original or contributing factor in the ignition of a wildfire. TDPUD has evaluated the prudent and cost-effective improvements to its physical assets, operations, and training that can help to meet this objective. Further, TDPUD is updating operational practices to reflect its commitment to prudent system management and will continue to explore new opportunities for improving the efficacy of the Plan. This Plan embraces safety, prevention, mitigation, and recovery programs that are consistent with California State Law. B. RESILIENCY OF THE ELECTRIC GRID The secondary objective of this Plan is to ensure and improve, where practicable, system resiliency. System resiliency is defined by the National Infrastructure Advisory Council as the ability to reduce the magnitude and/or duration of disruptive events. As part of the development of this Plan, TDPUD assesses new industry practices and technologies that will reduce the likelihood of a disruption in service and improve the timeline for restoration of service. C. MINIMIZING UNNECESSARY OR INEFFECTIVE ACTIONS The final objective of this Plan is to measure the effectiveness of specific mitigation strategies as they apply to TDPUD. Where a particular action, program component, or protocol is determined to be unnecessary or ineffective, TDPUD will assess whether modification or replacement is Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 13 Page 276 of 449 suitable. This approach will also help determine if more cost-effective measures would produce the same or better results.This is particularly true for the implementation of new technologies and practices where an evaluation from prototype to pilot installation to full implementation is often prudent to maximize performance and minimize unintended consequences. III. ROLES AND RESPONSIBILITIES - A. TDPUD ROLES AND RESPONSIBILITIES TDPUD Customers Board o Directors I} General Manager Water Utility • . HR&Risk Electric Utility • Director .. Manager Director OperationsElectric Electric Engineering Manager Manager TDPUD utilizes a Public-Owned Utility Board/General Manager reporting hierarchy. Board members are elected at large by registered voters within to staggered 4-year terms, representing constituents across TDPUD's service territory. The Board President and Vice President positions are nominated and appointed by the Board annually. The Board is responsible for adoption and oversight of all policies and delegates the operational implementation of policies to the General Manager. The General Manager has full operational authority of TDPUD and operates as the Chief Executive, reporting directly to the Board. The General Manager provides direction and management to all TDPUD staff while implementing Board-adopted policy. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 14 Page 277 of 449 The Public Information Officer (PIO)/Strategic Affairs Director serves as TDPUD's public liaison to customers and outside agencies, responds to requests for information, and proactively promulgates public awareness outreach or emergency information. The Electric Utility Director has overall functional management of the electric utility and provides day-to-day oversight of the electric utility. The Electric Utility Director utilizes the Electric Operations Manager and Electric Engineering Manager for division oversight. The Electric Operations Manager oversees the electric utility operations, including construction, maintenance, and other ancillary daily duties. The Electric Operations Manager maintains functional management of assigned divisions within the electric utility and reports to the Electric Utility Director. The Electric Engineering Manager oversees the design/engineering tasks associated with distribution system modification and development/maintenance of material specifications.The Electric Engineering Manager maintains functional management over the electric engineering, vegetation management, related tasks within the electric utility and reports directly to the Electric Utility Director. The Chief Financial Officer (CFO) oversees the customer service, call center, and dispatch duties. The Director of Human Resources and Risk Management provides oversight for the development of the TDPUD's Emergency Operations Plan (EOP). TDPUD staff have the following responsibilities regarding fire prevention, response, and investigation: • Conduct work in a manner that will minimize potential fire dangers • Take all reasonable and practicable actions to prevent and suppress fires resulting from TDPUD electric facilities • Coordinate with federal, state, and local fire management personnel to ensure that appropriate preventative measures are in place • Immediately report fires pursuant to specified procedures • Take corrective action when observing or having been notified that fire protection measures have not been properly installed or maintained • Ensure compliance with relevant federal, state, and industry standard requirements • Ensure that wildfire data are appropriately collected • Practice adaptive management by reviewing past performance and data to inform and improve future plans • Maintain adequate training programs for all relevant employees B. COORDINATION WITH WATER UTILITIES/DEPARTMENT TDPUD owns and operates a water utility within its service territory, providing retail service to approximately 13,500 customers. When electric operations could or are known to impact the water utility, TDPUD electric and water staff will coordinate to mitigate or, where practicable, Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 15 Page 278 of 449 eliminate impact to electric and/or water service continuity. TDPUD Electric and Water Operations maintain direct coordination to ensure timely communication related to planned and unplanned power outages that may impact one or both enterprises. This emergency notification will be extended to the local public safety partners as needed. C. COORDINATION WITH COMMUNICATION INFRASTRUCTURE PROVIDERS TDPUD has been a member of the Northern California Joint Pole Association (NCJPA) since 2014. Members of NCJPA participate voluntarily to share expenses for the installation and maintenance of new and existing utility pole structures, as well as relinquishment or removal of those structures based on interest. TDPUD typically acts as the coordinating agency within its service territory because many of the structures were installed as solely owned TDPUD poles prior to joining NCJPA. The exception would be existing, solely owned communication poles within the service territory that TDPUD does not currently attach to. AT&T is the only other NCJPA member within TDPUD's service territory and is responsible for the reserved communication space on utility poles. AT&T manages the attachment of other communication providers within the communication space on joint poles. TDPUD has created a list of local agencies and key partners which does include key operational and management contacts from the communication providers, Truckee Fire Protection District, and the Town of Truckee. TDPUD also has regular communication protocols through our customer account notification, outage management system, and our website. D. STANDARDIZED EMERGENCY MANAGEMENT SYSTEM TDPUD has planning, communication, and coordination obligations pursuant to the California Governor's Office of Emergency Services' Standardized Emergency Management System (SEMS) Regulations,2 adopted in accordance with Government Code Section 8607. The SEMS Regulations specify roles, responsibilities, and structures of communications at five different levels: field response, local government, operational area, regional, and state.3 Pursuant to this structure, 2 19 California Code of Regulations Section 2407. 3 Cal.Gov.Code Section 2403(b): (1) "Field response level" commands emergency response personnel and resources to carry out tactical decisions and activities in direct response to an incident or threat. (2) "Local government level" manages and coordinates the overall emergency response and recovery activities within their jurisdiction. (3) "Operational area level" manages and/or coordinates information, resources, and priorities among local governments within the operational area and serves as the coordination and communication link between the local government level and the regional level. (4) "Regional level" manages and coordinates information and resources among operational areas within the mutual aid region designated pursuant to Government Code§8600 and between the operational areas and the state level.This level along with the state level coordinates overall state agency support for emergency response activities. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 16 Page 279 of 449 TDPUD regularly coordinates and communicates with the relevant safety agencies and other relevant local and state agencies. TDPUD understand the role of SEMS in emergency communications and follows the Town of Truckee, Nevada County, and Placer County, which are the local leads for emergency operations and disaster response. Due to emerging needs the TDPUD recently added a risk and compliance position. More formally implementing SEMS is a priority for 2024 through the development, adoption, and implementation of TDPUD's Emergency Operations Plan (EOP) expected in the Summer of 2024. Under the SEMS structure, a significant amount of preparation is done through advanced planning at the county level, including the coordination of effort of public, private, and nonprofit organizations. Generally, the majority of TDPUD's service territory resides in Nevada County. Nevada County serves as the operational area, which is guided by the Operational Area Emergency Service Council (Nevada County) and is headed by the Chairman of the Board of Supervisors (or designee). The operational area includes local and regional organizations that bring relevant expertise to the wildfire prevention and recovery planning process. These participants include: • Office of Emergency Services Program Manager, Nevada County, Paul Cummings (paul.cummings@co.nevada.ca.us, 530.265.1515) • City of Nevada City (or designee) • City of Grass Valley (or designee) • Town of Truckee (or designee) • Nevada Irrigation District (or designee) • Nevada County Fire Chief's Association (or designee) • Nevada County Sheriff (or designee) • American Red Cross (or designee) • Tahoe National Forest (or designee) • California Department of Forestry and Fire Protection (CAL FIRE; or designee) • Tahoe Forest Hospital District (or designee) • Pacific Gas and Electric Company (or designee) • Nevada County Public Health Administrator (or designee) • Placer County Public Health Administrator (or designee) • Others that the Operational Area Emergency Service Council requests be in attendance Additionally, a small portion of TDPUD's service territory resides in Placer County, overseen by the Placer County Office of Emergency Services Council. The Placer County Office of Emergency Services' operational area includes local and regional organizations that bring relevant expertise to the wildfire prevention and recovery planning process. TDPUD staff play a formal role in (5) "State level" manages state resources in response to the emergency needs of the other levels, manages and coordinates mutual aid among the mutual aid regions and between the regional level and state level, and serves as the coordination and communication link with the federal disaster response system. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 17 Page 280 of 449 emergency response through the local lead agency (either Town of Truckee, Nevada County, or Placer County). Dependent upon the severity and scope of the incident, TDPUD may activate its own Emergency Operations Center (EOC), and/or participate in an operational area EOC upon request, representing the Utilities Unit of the EOC (note:Truckee is serviced by multiple electric utilities). TDPUD also works directly with its public safety partners daily in responding to outages, fire, accidents, and a wide variety of emergencies. The Town of Truckee has an adopted Emergency Operations Plan that is periodically updated and can be found at this link: https://bof.fire.ca.gov/media/420iskxo/rioc-2-b-iv-town-of-Truckee-emergency-operations-plan- supplemental.r)df. TDPUD is a member of the California Utilities Emergency Association (CUEA), which plays a key role as a statewide Incident Management Team (IMT), ensuring critical communications between utilities and County or State OES. TDPUD also participates in the Western Energy Institute's Western Region Mutual Assistance Agreement, which is a mutual assistance agreement covering utilities across a number of western states. In addition to those agreements, TDPUD is also signatory to the American Public Power Association mutual aid agreement, providing nationwide access to resources for system restoration and support after a major event that exhausts TDPUD resources. It should be noted that TDPUD's service territory is largely within the Town of Truckee boundaries but does include unincorporated areas of Placer and Nevada Counties. The Town of Truckee did not formally incorporate until the 1990s, leaving more than a dozen local governmental agencies covering utilities, fire, and other critical local functions. Each local agency, when it comes to emergency response, is aware of their role and responsibility with overall management and communication strictly controlled by the appropriate town/county/state/federal emergency response agency through the Emergency Operations Center. WILDFIRE RISKS AND DRIVERS A. PARTICULAR RISKS AND DRIVERS ASSOCIATED WITH DESIGN, CONSTRUCTION, OPERATION, AND MAINTENANCE TDPUD designs and constructs its electric facilities to meet or exceed the relevant federal, state, or industry standard. TDPUD treats California Public Utilities Commission (CPUC) General Order (GO) 95 as a key industry standard for design and construction standards for overhead electrical facilities and, as such, meets or exceeds all applicable standards in GO 95. Additionally, TDPUD monitors and follows as appropriate the National Electric Safety Code. Risk drivers associated with design, construction, operations, and maintenance within TDPUD's 45-square-mile service territory include: • Expulsion fuses still in use in portions of the TDPUD service territory • Utility poles reaching the end of the service life • Combustible poles in the High Fire Threat District (HFTD) Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 18 Page 281 of 449 • Limited staff and equipment • 135 miles of overhead distribution wires; 64%of overhead wires are in a HFTD • Overhead circuits in areas with poor road access B. PARTICULAR RISKS AND RISK DRIVERS ASSOCIATED WITH TOPOGRAPHICAL AND CLIMATOLOGICAL RISK FACTORS The TDPUD service territory is located between 6,000 and 8,000 feet elevation on the eastern slope of the Sierra Nevada Mountain Chain near Lake Tahoe. The TDPUD service territory experiences the most severe weather during the winter where severe storms can bring damaging levels of snow and/or rain and extreme winds (80++ mph). During the fire season, the Truckee area experiences fast-moving, low-pressure systems that bring high winds and dry lightning to the TDPUD service territory. Within the TDPUD service territory and the surrounding areas, the primary risk drivers associated with topographical or climatological for wildfires include: • Overhead circuits traverse mountainous areas of mixed conifer forests with continuous surface fuels,including annual grasses, herbaceous vegetation,and patches of woody shrubs. • Overhead circuits traverse areas of steep slopes. Several circuits are on slopes or in canyons aligned with the prevailing winds (Interstate 80 corridor). • Summertime precipitation in the area occurs in the form of afternoon thunderstorms; along with these storms may come dry lightning with very little precipitation. • Prevailing winds align with the Interstate 80 corridor resulting in strong winds through the center of the TDPUD service territory. CLIMATE CHANGE Truckee has warmed an average of 2.0°F over the last 80 years when comparing the historical 30-year period (1937-1966) and the recent 30-year period (1987-2016). There are now eight fewer days per year below freezing, and the number of days above 90OF has increased by 10 days per year. Average snowfall has declined by 15%. All these changes have occurred from a 2.07 temperature increase. If greenhouse gas emissions continue at current levels globally, then Truckee's average temperatures are expected to warm by 5-70F by the 2050s and 8-1 1 OF by the 2080s. By the 2080s, April snowpack could be reduced by 84%to 96%. However, if emissions are significantly reduced in the near term, then warming could level off in the 2050s (Town of Truckee Planning Division 2020). It is expected that by mid-century the TDPUD service territory will experience: • A 55%-68% reduction of days below freezing per year • A 68%-71% reduction of April snowpack • A 31%-51% increase in drought stress • Up to 31 more days above 90OF Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 19 Page 282 of 449 • Up to 61% more acres burned per year by wildfire C. ENTERPRISE-WIDE SAFETY RISKS TDPUD uses a methodical approach to address/mitigate enterprise safety risks. This approach utilizes both risk assessment and intimate knowledge of its operational practices. Risk assessment is a process to identify and manage potential risks that could undermine core business functions, threaten business continuity, or impact recover. Risk assessment will be used to analyze safety risks, which include: • Pole Replacement Ranking Tool (Appendix C) • Unavailability of NV Energy's transmission because of an outage or planned Public Safety Outage Management (PSOM) de-energization event due to existing wildfire risk • Interconnection and distribution interconnection (Glenshire) • Unavailability of California Pacific Electric Company/Liberty Utilities' alternate distribution feed (Glenshire) • Loss of internet connectivity • Loss of radio communications • Loss of cellular communications • Impacts of system de-energization • Impacted roadways limiting movement of personnel and equipment D. CHANGES TO THE CPUC FIRE THREAT MAP As part of the development of the 2024 WMP, TDPUD reviewed the conditions present in its territory, including the current extent of the HFTD. TDPUD does not recommend any changes to the CPUC state-wide Fire Threat Map. A. HIGH FIRE THREAT MAP FOR TDPUD TDPUD participated in the development of the CPUC Fire Threat Map,4 which designates the HFTDs across California. In the map development process, TDPUD served as a territory lead and worked with CAL FIRE, CPUC staff, and local fire officials to identify areas of the TDPUD service territory that are at an elevated or extreme risk of power line-ignited wildfire. TDPUD incorporated the HFTD mapping into its construction, inspection, operation, maintenance, repair, and vegetation management practices. The fire threat areas, as designated by both CAL FIRE and CPUC, have been incorporated into the TDPUD geographic 4 Adopted by CPUC Decision 17-12-024. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 20 Page 283 of 449 information system (GIS) to overlay with TDPUD water and electric facilities and identify any infrastructure within areas of high fire threat. For the purpose of the WMP and to retain consistency, TDPUU had treated its entire service territory as tier 3 high fire threat. However, this may change in the future as TDPUD explores preemptive deenergization and other targeted wildfire prevention strategies and incorporates new tools and technologies. B WEATHER MONITORING The TDPUD service territory covers a relatively small section of the Truckee watershed. Local, state, and national sources provide accurate and comprehensive weather information for the TDPUD service territory. Variations in weather due to terrain or microclimates are often well known by TDPUD staff. TDPUD monitors current and forecasted weather data from a variety of sources including: • U.S. National Weather Service-Truckee Donner Remote Automatic Weather Station (TADC1) and the Truckee Airport in addition to other on-line weather stations and resources • U.S. Forest Service Wildland Fire Assessment System • Northern California Geographic Area Coordination Center-Predictive Services Fire Weather/Fire Danger Outlooks for Region NC07 (Northern Sierras) • Internal knowledge of local conditions • Local weather data from NV Energy and Liberty Utilities owned automated weather stations • TDPUD is exploring additional weather stations and additional fire modeling/risk tools. Each day, TDPUD will assign one of four operating conditions based on the relevant weather data and knowledge of local conditions: (1) Normal: During normal conditions, no changes are made to operations or work procedures. (2) Elevated: During elevated fire-risk conditions, TDPUD staff will perform normal work with an elevated level of observation for environmental factors that could lead to an ignition. (3) Extreme: During extreme fire-risk conditions, TDPUD may delay routine work on energized primary lines (12.47 kV and 14.4 kV). TDPUD may perform necessary work to preserve facilities or property. Extreme weather is defined as weather phenomena that are at the extremes of the historical distribution and are rare for a particular place and/or time, especially severe or unseasonal weather. Such extremes include severe thunderstorms, severe snowstorms, ice storms, blizzards, flooding, high winds, or heat waves. (4) Red Flag: The National Weather Service issues Red Flag Warnings (RFWs) and Fire Weather Watches to alert fire departments of the onset, or possible onset, of critical weather and dry conditions that could lead to rapid or dramatic increases in wildfire Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 21 Page 284 of 449 activity.5 An RFW is issued for weather events that may result in extreme fire behavior that will occur within 24 hours. An RFW is the highest alert. While an RFW is in effect, TDPUD's crews limit hot-work, such as welding, grinding, and cutting, and TDPUD will delay all routine work on energized primary lines (12.47 kV and 14.4 kV). TDPUD may perform necessary work to preserve facilities or property. Vegetation management and line crews have on-site fire suppression equipment and conduct tailboard meetings to confirm the location and readiness of the fire suppression equipment. C. DESIGN AND CONSTRUCTION STANDARDS TDPUD electric facilities are designed and constructed to meet relevant federal, state, and industry standards. TDPUD treats GO 95 as a guiding standard for design and construction of overhead electrical facilities. TDPUD complies with design standards in GO 95 and constructs its facilities consistent with the "heavy-loading" district as defined by the CPUC. TDPUD's overhead electric system is designed to withstand winter storms, including high wind and snow events. Winds during severe winter storms generally exceed the wind speeds that the TDPUD service territory experiences during RFWs. As a result of this approach, TDPUD's system has remained resilient to extreme weather events such as high winds and heavy snow loads. As stated above, TDPUD's electric facilities are designed to meet GO 95 for design, construction, and maintenance. While TDPUD may choose to exceed the standard based on local conditions and/or knowledge, the minimum requirement is to meet the standard over the duration of the action. Where review/inspection shows that the minimum standard is not sufficient to maintain compliance, TDPUD adapts accordingly. In addition to meeting the GO 95 standards, TDPUD is making the following upgrades to its facilities and equipment to reduce the risk that its equipment will start a wildfire. POLE REPLACEMENT PROGRAM TDPUD has an ongoing pole replacement program that prioritizes poles for replacement based on three factors: age; conditions; and the impact an event on a given pole could have on safety, reliability, and compliance. As part of this program, TDPUD poles are inspected on a regular basis and scored based on the three factors. Pole scores are recorded in the TDPUD GIS system. Poles with the highest score are prioritized for replacement. Appendix C contains a detailed description of the pole replacement ranking tool used by TDPUD. In 2023, TDPUD replaced approximately 70 poles requiring attention based on previous years' intrusive pole inspections. NON-EXPULSION CURRENT LIMITING FUSES 5 http://www.fire.ca.gov/programs/communications/red-flag-warnings-fire-weather-watches/ Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 22 Page 285 of 449 Since 2019, TDPUD has been evaluating the suitability of non-expulsion or current limiting fuses on its overhead system. In locations where the expulsive fuses have been determined to present a risk of starting a wildfire, TDPUD has been replacing the expulsive fuses with non-expulsive fuses. TDPUD selected Eaton's Cooper Power Systems full-range, current-limiting, dropout Energy Limiting Fuse (ELF) for the pilot project. The ELF fuse has been granted permanent exemption by CAL FIRE from pole clearance requirements as specifically listed in Title 14 of the California Code of Regulations, Section 1255.10. All in-line and transformer fuse locations where an ELF fuse has been installed are tracked in the GIS and tagged with ELF identifier. This allows TDPUD to track and report any outage or hazard occurrences on ELF fuses through TDPUD's Responder Outage Management System (OMS). This program began in early 2019. Staff completed the evaluation of the ELF fuses, validating and confirming their suitability and effectiveness for TDPUD's electric system. Beginning 2021, TDPUD staff implemented a 3-year capital improvement project and funding to replace all overhead fuses in the distribution system with ELF fuses and non-load break cutouts. In 2023, TDPUD prioritized the ELF fuse deployment project after completing efforts to address a manufacturer recall issued in 2021 that delayed the planned timeline. The ELF deployment project is projected to be complete in 2024-2025. FR3 INSULATING FLUID TDPUD switched exclusively to FR3 dielectric insulating fluid in 2008. FR3 has an extremely high flashpoint in excess of two times that of its traditional mineral oil counterpart (360°C versus 160°C). It is now a requirement for all new oil-insulated equipment, including transformers (pole- bolted and pad-mounted), substation transformers, and substation voltage regulators. TDPUD staff continue to evaluate the appropriateness of FR3 insulating fluid in its future procurement of pad-mounted switchgear. COVERED PRIMARY JUMPER WIRE TDPUD is implementing the use of covered (i.e., tree wire) primary jumper wire in place of bare wire. Primary jumpers are used to connect transformers, underground risers, and fuse cutouts to main overhead circuit conductors. The use of covered primary jumper wires helps to minimize unintentional contact with wildlife and windblown debris. PROPOSED SERVICE REQUIREMENTS Since 1995, TDPUD code has required all new or reconstructed developments to take service from TDPUD via an underground system; however, limited exceptions exist in current TDPUD code for some single-family residences. TDPUD seeks to minimize the installation of overhead power lines where practicable and will, therefore, recommend an underground requirement for all electric services and considers the following: Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 23 Page 286 of 449 • All new installations will be required to take service from an underground source. • Like-for-like panel replacements will be required to convert to underground service. • Upgraded panel replacements will be required to convert to underground service. • TDPUD will not attach to trees for any reason. • TDPUD may consider a cost-sharing program for customers that desire to convert an existing overhead service to an underground service. • Customer(s) receiving service via legacy tree attachment(s) will be required to comply with Section 5.36, Tree Attachments. TREE ATTACHMENTS (LEGACY ATTACHMENTS) Existing tree attachment service drops are tracked within the GIS to identify locations where trees and branches may be a potential hazard to electric infrastructure and to provide TDPUD crews with location information for inspecting tree attachments. Legacy tree attachments are no longer allowed. When an existing tree attachment fails or is damaged, a new utility pole is installed and used for securing all secondary attachments. Pursuant to Title 14 of the California Code of Regulations Section 1257, and annually starting in 2020, contract tree crews are trimming the area of the attachments and performing an inspection. Any hazard found is immediately reported to TDPUD staff for mitigation. TDPUD monitors trends in materials, technology, and work methods to evaluate prudent operational changes to enhance the efficacy of wildfire mitigation. These evaluations include: • Engineering pole-ranking tools • Intrusive pole inspections • New construction methods/materials • Undergrounding new construction and tree wire (covered wire) use, where applicable ADVANCED METERING INFRASTRUCTURE TDPUD has invested in and deployed advanced metering infrastructure (AMI) across the entire service territory. AMI is an integrated system of smart meters, communications networks, and data management systems that enable two-way communication between utilities and customers. The system provides several important functions that were not previously possible or had to be performed manually, such as the ability to automatically send an outage notification to TDPUD's OMS, automatically and remotely measure electricity use, connect and disconnect services, detect tampering, identify and isolate outages, and monitor voltages. In 2021, TDPUD implemented the National Information Solutions Cooperative (NISC) Operational Analytics module for the electric utility. The Operational Analytics module is an enhancement to the existing Meter Data Management System used by TDPUD to gather interval data across all AMI meters. The Operational Analytics module has improved TDPUD's operational efficiencies and grid reliability through advanced data analysis. The implementation included integrations Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 24 Page 287 of 449 with TDPUD's AMI, Esri GIS, and Supervisory Control and Data Acquisition (SCADA) systems that are now used to proactively locate and replace critically overloaded or underloaded transformers and reduce feeder losses. OUTAGE MANAGEMENT SYSTEM (OMS) Since 2007, TDPUD has utilized an OMS for tracking and responding to electric outages and system hazards. The OMS captures outage information in real time from the electric meters and captures incoming phone calls from the public and TDPUD customers. In 2019, TDPUD extended categorizing incidents to include fires, hazard trees, or branches in proximity of electric lines. In addition to tracking active hazards to the system, all calls entered into the OMS can later be used for reporting based on outage cause, duration, system device, and number of customers affected. This information is used by TDPUD engineers to plan electric system upgrades and device replacements. Events recorded and stored in the OMS archives are available for engineering and operations staff upon request and made available to public agencies as part of yearly CPUC reporting requirements on reliability indices. In 2021, TDPUD's Board of Directors authorized a contract for a new OMS available through NISC. TDPUD utilizes NISC software as the base enterprise planning resource software that manages TDPUD's accounting, payroll, and customer information systems. TDPUD has standardized this software for the past 18 years due to in-house expertise with the product, the advanced leadership of NISC with other public power utilities, and its compatibility with other TDPUD products including the AMI, Esri GIS, and SCADA systems. The OMS informs TDPUD on how to best resolve an outage while automatically communicating with customers that they are experiencing an outage and providing information on how the outage is being resolved. The OMS also includes an interactive map with active locations of crews in the field responding to an incident and allows TDPUD customers to customize outage alerts through the MyAccount/SmartHub customer engagement tool. SUPERVISORY CONTROL AND DATA ACQUISITION TDPUD has invested in a fiber-based SCADA system that provides staff distribution information to help diagnose and forecast issues and monitor the system during all conditions. TDPUD is investigating an upgrade to the system to allow for supervisory control of all critical field reclosers, a function that is currently unavailable.This function would allow TDPUD staff to remotely enable or disable all recloser settings, including setting all reclosers to non-reclose mode (i.e., one-shot operation) annually as needed to minimize the risk of fires caused by arcing or faults. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 25 Page 288 of 449 D. VEGETATION MANAGEMENT TDPUD has a developed a comprehensive vegetation management program for maintaining vegetation near its facilities and circuits. TDPUD's vegetation management program is described in detail in its Vegetation Management Plan (VMP) that is attached to this WMP in Appendix D. In addition to maintaining the statutory requirements for clearance around high voltage wires, TDPUD's VMP prescribes a treatment for a 20-foot right-of-way on all sides of its utility poles. Within this easement, all dead vegetation, including dead trees and shrubs, is removed and surface vegetation is maintained to minimize the accumulation of surface fuels. TDPUD vegetation management staff identify standing dead trees within 200 feet of high-voltage wires regardless of ownership and will seek permission to remove any dead tree within this area that has the potential to strike TDPUD infrastructure. In the current version of the VMP, TDPUD's tree-trimming program is on a 5-year tree-trimming cycle because the majority of the trees near TDPUD lines are mature conifers with compact crowns compared to hardwood trees. These trees have relatively low growth rates and do not respond with rapid shoot growth. Dead vegetation in the right-of-way and dead trees that threaten the wires are treated on an as-needed basis. As part of TDPUD's VMP, contractors and internal TDPUD staff are equipped with TDPUD-provided mobile devices to record the location and dates of vegetation management-related activities. Vegetation management generally consists of removing, cutting, trimming, and clearing away of trees, tops, limbs, branches, bushes, vines, and foliage, and the removal of hazard trees and inspection of legacy tree attachments in proximity to TDPUD electrical lines, stations, and property within public utility easements. All tree-trimming inspection records are stored in TDPUD's GIS and are used for recording yearly tree-trimming progress, planning future tree- trimming routes and locations, and prioritizing the most critical areas. In addition to planned tree trimming, the TDPUD customer information system also records customer calls regarding concern for potential tree hazards in proximity to electric lines. Service orders are created for crews to respond to and correct hazard tree reports, as well as record the outcome of the hazard. This information can also be used for reporting the number of customer calls regarding hazard trees, number of hazard tree removals, and number of occurrences by location. This program began in 2005 and, continuing for 2024, TDPUD will be on a 5-year cutting cycle and will adjust as needed. It should be noted that TDPUD removes dead or dying vegetation within the vegetation management area. Given the high mountain environment and relatively short growing season, TDPUD has not had problems with treatment areas being replaced with fast-growing grasses or invasive species. TDPUD uses minimal or no herbicides while conducting vegetation management. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 26 Page 289 of 449 E. INSPECTIONS TDPUD use the minimum inspection requirements provided in CPUC GO 165, Table 1 and CPUC GO 95, Rule 18. Pursuant to these rules, TDPUD inspects electric facilities in the HFTD areas more frequently than its counterparts in non-HFTD areas. Additionally, TDPUD staff use their knowledge of the specific environmental and geographical conditions to determine when areas may require more frequent inspections and/or mitigations. TDPUD's inspection program contains records of electric system inspections performed as part of the GO inspection program. TDPUD crews are equipped with mobile devices with access to TDPUD's data to record inspections and report any potential issues to be corrected. This information is used by TDPUD engineer staff to plan repairs and upgrades to the electric system. TDPUD's goal is to ensure that all inspections performed within its service territory are complete in a timely manner. TDPUD monitors drought conditions and other relevant factors throughout the year to determine if inspections should be completed on an adjusted timeline. If TDPUD staff discovers a facility in need of repair that is owned by an entity other than TDPUD, TDPUD will notify the facility owner and/or the agency having jurisdiction. F. WORKFORCE TRAINING TDPUD has developed rules and complementary training programs for its workforce to reduce the likelihood of an ignition. All field staff are trained annually in the following areas: in the content of the WMP; in proper use and storage of fire extinguishers; in required pre-job briefings to discuss the potential(s) for ignition and environmental conditions (current and forecasted weather that coincides with the duration of work for the day); and in identifying the closest fire extinguisher. TDPUD staff are also active in electric utility joint-action groups, such as the California Municipal Utilities Association, Northern California Power Agency, Utah Associated Municipal Power Systems, and the American Public Power Association, to leverage the industries' collective experience and to take advantage of training and other workforce development activities. G. RECLOSER POLICY During fire season, TDPUD disables all automatic reclosing function for all automatic circuit reclosers (ACRs or reclosers) on its system (i.e., one-shot operation). This ensures there will be no automatic circuit reclosing during the fire season. Fire season is typically defined as June 1 st through October 31 st but may be extended based on actual fire danger and environmental impacts due to climate change. Operational needs may change due to extended/early winter conditions within the service territory of TDPUD. During these types of weather events the Electric Utility Director or their designee may suspend the summer one-shot operation practice and return the automatic Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 27 Page 290 of 449 system reclosers to normal operation. In the event there is a lack of winter precipitation due to climate change, reclosers may be placed on one shot early ahead of the summer months due to the dry conditions. H. DE-ENERGIZATION TDPUD is in the process of investigating and developing a new preemptive deenergization program which would include conditions of high wildfire risk. TDPUD, in consultation with other Publicly Owned Utilities (POU) and TDPUD water utility staff and in communication with key local agencies, has evaluated the efficacy of a preemptive type of de-energization program. Major considerations included: • TDPUD heavy-loading construction standards that are hardened to withstand high wind, snow loading, and ice formation • The offset between when TDPUD's overhead electric distribution system experiences its most severe weather threats (i.e.,severe winter storm[s]) and the weather conditions during red- flag warnings (i.e.,typically in late summer/fall with only moderate weather threats) • The potential negative impacts to fire response, water supply, public safety, and emergency communications should a fire occur while TDPUD de-energized a portion or all its system • Potential loss of water supply to fight wildfires due to loss of production wells and pumping facilities • Negative impacts to emergency response and public safety due to the historical disruptions in internet and cell phone service during periods of extended power outages • The loss of key community infrastructure and operational efficiency that occurs during power outages • Weather conditions conducive of the ignition or expansion of a wildfire • If the there is a wildfire threatening the TDPUD distribution infrastructure TDPUD, on a case-by-case basis, has historically and will continue to consider de-energizing a portion of its system in response to a known public safety issue or in response to a request from an outside emergency management/response agency. Any de-energizing will be performed in coordination with TDPUD water utility staff and key local partner agencies. TDPUD will also monitor the evolution of PSPS implementation by other California electric utilities to continue to refine its evaluation of this important topic. While TDPUD has not yet implemented a preemptive shutoff program for its system, TDPUD is a transmission-dependent utility with a higher likelihood of a preemptive shutoff coordinated by our transmission provider in the future than one executed locally.TDPUD has prioritized the development and adoption of our own preemptive shutoff program in 2024. As a result, TDPUD, and other key local agencies, hold annual meetings with NV Energy to fully understand the conditions under which NV Energy would de-energize transmission and to Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 28 Page 291 of 449 develop communication protocols so that NV Energy could notify TDPUD and then TDPUD could notify key agencies and its customers. These meetings will continue into 2024. IMPACTS TO PUBLIC SAFETY The TDPUD service territory includes seven Truckee Fire Protection District stations, a CAL FIRE facility at the Truckee Tahoe Airport, one hospital, and three police stations. TDPUD does not generate electricity locally and its sole source of power comes from NV Energy transmission. In the event of a power outage or a NV Energy-initiated PSOM, first responders would be reliant on backup generators for power. The seven fire stations, CAL FIRE facility, three police stations, and the hospital all have backup generators that can supply electricity to their facilities in the event of power shutdown. Truckee residents in general are accustomed to adverse conditions including extreme weather that shuts down public transportation and services. Many of TDPUD's customers have backup generators installed at their properties and TDPUD encourages customers to be prepared for preemptive shutoff events with several informational postings on its website, including generator safety and the installation of permanently installed backup generators. CUSTOMER NOTIFICATION PROTOCOLS TDPUD has developed a list of critical agencies/emergency responders with a commitment to make direct contact should the surrounding utilities announce a potential preemptive shutoff event. If TDPUD gets notified of a pending event, then TDPUD staff will contact local emergency responders and the hospital by phone, text, and/or email using all channels until contact and message receipt are confirmed. Customers are notified of wildfire alerts, related outages, potential preemptive shutoff outages, relay setting outages, and re-energizations using contact information in their customer accounts and by signing up for individual alerts through the customer engagement tool (MyAccount/SmartHub). Customer notification is achieved through several channels including text alerts and email alerts. The methods for customer notification are based on the extent of the outage with customer alerts through the OMS and the website outage map in real-time. During limited outages, TDPUD may only use its website and automated customer notifications through the OMS. For more significant outages, TDPUD will use social media and the website emergency banner to notify customers of an outage and provide updates when available. Major transmission and system-wide outages would also include Nixle alerts and coordination with Code Red posts. Non-customers can sign up for Nixle alerts for major outages, including preemptive shutoff outages, by texting "TDPUD" to 3331 1 1. TDPUD also posts information regarding emergencies on its website and on several social media outlets. An online outage map is available for more information about emergencies and outages in TDPUD. The website also includes information and links to sign up for email and text alerts. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 29 Page 292 of 449 To help TDPUD's customers and community be aware and prepared for wildfire safety power outages, TDPUD has spent significant time and resources to communicate both the timing of an outage along with the expected start of restoration. Should TDPUD implement a wildfire preemptive deenergization program, the communication efforts and customer notifications and protocols would be similar. COMMUNITYOUTREACH TDPUD has extensive relationships across all organizations in the community. These relationships include direct interactions with the agencies directly responsible for fighting fires (Truckee Fire Protection District and CAL FIRE), agencies leading emergency response efforts (Town of Truckee, Nevada County, and Placer County), and key public and private landowners (U.S. Forest Service, California State Parks, Tahoe Donner Association, Tahoe-Truckee Airport District, etc.). TDPUD staff regularly provide information to these agencies including updates on fire, vegetation management requirements, and TDPUD programs. TDPUD also works closely with our partners and considers key planning and other documents in implementing this WMP. This includes the Truckee Fire Protection District's Community Wildfire Protection plan and the Town of Truckee's Right of Way clearing program and other emergency response activities. As the local electric and water utility, TDPUD has robust community outreach and marketing programs to effectively communicate with its customers and community. The agendas for all TDPUD Board meetings are publicly available and the meetings are open for the public to attend. The regularly scheduled Board meetings are also broadcast locally from TDPUD's website (www.tdioud.org) and archived on TDPUD's website for access after the meeting. TDPUD is active in the community, typically attending dozens of community events each year, including Truckee Day, Truckee Thursdays, Tahoe Truckee Earth Day, Truckee Home Show, Truckee Cleanup Day, and Big Truck Day. TDPUD staffs booths, has staff available to interact with the community, and delivers energy, water, and customer programs directly to its customers. TDTDPUD provides information on its Vegetation Management Program, performs free de- energizing of customers' overhead service connections to allow them to clear defensible space while working safely, and educates the community on TDPUD's overall efforts to respond to catastrophic wildfires. TDPUD intends to continue this effective engagement in the future. TDPUD also has robust marketing and communication efforts leveraging its website (www.tdpud.org), social media (Facebook/Twitter/Instagram), print ads, and digital marketing. TDPUD is a regular advertiser in the Sierra Sun, Moonshine Ink, Truckee Chamber of Commerce, Tahoe Donner News, and The Shire, as well as on KTKE 101.5 local radio. In addition, TDPUD has an informative customer lobby with ready access to customer service representatives, extensive digital media to educate customers, and engaging displays. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 30 Page 293 of 449 Specific to wildfire-related community outreach, TDPUD has been very active promoting the wildfire mitigation plan and vegetation management program, including past regulatory changes increasing the vegetation clearances and vegetation management practices.TDPUD also engages in direct communication with property owners for quick resolution of any concerns or disputes. TDPUD has information on the website, social media, digital media, print advertising, and radio. TDPUD has worked with Tahoe Donner Association, which is in a tier 3 area and has almost half of TDPUD's residential connections, to include an extensive article in the monthly Tahoe Donner News information regarding fire, vegetation management, and everyone doing their part. Although TDPUD does not currently have a preemptive shutoff operational practice, it may de- energize a portion or all the overhead electric system for one of the following reasons: • If an outside emergency management/emergency response agency requests a power shutdown • If TDPUD elects to de-energize segments of its system due to extreme weather or other safety considerations • As a result of a preemptive shutoff event or transmission outage If TDPUD experiences an outage during wildfire season, staff will patrol the affected portions of the system before the system is re-energized. Suspect equipment or distribution lines that cannot be patrolled will remain de-energized. In addition, system performance abnormalities will be monitored via TDPUD's SCADA system and its AMI/OMS systems. In addition, TDPUD participates with the California Emergency Management Agency (also known as the California Governor's Office of Emergency Services) and California Utilities Emergency Association. The California Emergency Management Agency is responsible for overseeing and coordinating emergency preparedness, response, recovery, and homeland security activities, while the California Utilities Emergency Association serves as a point-of- contact for critical infrastructure utilities and the California Governor's Office of Emergency Services to facilitate communications, provide emergency response, and support emergency planning, mitigation, training, exercises, and education. NV Energy committed to providing TDPUD with advance notification of PSOM events. TDPUD has tested an implemented a re-energization protocol in preparation for a system wide wildfire safety power outage based on NV Energy's current PSOM transmission deenergization program. Should TDPUD implement a wildfire preemptive deenergization program, the above restoration of service information would be similar. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 31 Page 294 of 449 ;. EVALUATING THE PLAN A. METRICS AND ASSUMPTIONS FOR MEASURING PLAN PERFORMANCE TDPUD has historically tracked two metrics to measure the performance of the WMP over the entire year. Starting in 2022, TDPUD added a third metric and is only tracking these metrics during fire season (historically June through October unless conditions warrant extension) since winter outages occur when there is no wildfire danger: 1. Number of fire ignitions 2. Wire-down events within the service territory 3. Outage Causes Metric 1: Fire Ignitions For purposes of this metric, a fire ignition is defined as follows: • TDPUD's electrical infrastructure was associated with the fire. • The fire was self-propagating and of a material other than electrical. • The resulting fire traveled greater than one linear meter from the ignition point. • TDPUD has knowledge that the fire occurred. To evaluate this metric, TDPUD reports the number of fires that occurred that were less than 10 acres in size. Any fires greater than 10 acres will be individually described. New fire ignitions will be reported to management and firefighting agencies. In the 2023 wildfire season,TDPUD recorded zero new fire ignitions caused by TDPUD's electrical facilities or equipment. Metric 2: Wire-Down Events The second metric is the number of wire-down events within TDPUD's service territory. For purposes of this metric, a wire-down event includes any instance where a primary distribution conductor falls to the ground or onto a foreign object, which is defined as any object not specifically an asset of TDPUD (i.e., phone, cable, trees, etc.). TDPUD will not normalize this metric by excluding unusual events (i.e., severe storms, car versus pole incidents, or snow unloading). However, TDPUD will supplement this metric with a qualitative description of any such unusual events. In the 2023 wildfire season, TDPUD recorded one wire down events. Metric 3: Outage Causes The third metric used is the number of outages recorded by the month the outage occurred and categorized by cause. This was a new metric for 2022 and was enabled by TDPUD's Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 32 Page 295 of 449 new OMS. Outage information is collected from the data recorded and stored by the OMS. For the purpose of this metric, TDPUD is defining an outage as an event when a transmission line or electrical equipment is out of service and the event is recorded in the OMS as an outage. In 2023 from June through October, TDPUD's outage report data can be seen in the below table. It should be noted TDPUD's OMS is still in the commissioning phase for more granular data related to outages specifically during wildfire season. Figure 1:TDPUD 2023 Wildfire Season Outage Report Data 2023 Wildfire Season Outage Report OMS Description Quantity Animal other 2 Cause unknown 7 Conductor sag or inadequate clearance 21 Construction 2 Customer-caused 10 Decay/age of material/equipment 1 Lightning 27 Maintenance 57 Maintenance other 1 Material or equipment fault/failure 5 Motor vehicle 1 No Selection Made 16 Other 10 Other planned 6 Public cuts tree 1 Public other 8 Secondary Conductor Down 1 Small animal/bird 6 Tree failure from overhang or dead tree without ice/snow 5 Tree growth 18 Unknown-will determine later 5 Vandalism 1 Wind not trees 1 Totall 212 Starting in 2024, TDPUD is modifying and/or adding the following metrics to the plan. These metrics are based on a collaborative effort between the California Municipal Utilities Association and the Wildfire Safety Advisory Board and represent an initial step to implement additional metrics that TDPUD can reasonably monitor with the staff/capacity that we have, and which Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 33 Page 296 of 449 provide useful information. TDPUD will continue to evaluate the efficacy of other metrics for future plans. Metric 1: Outcomes - Fire Ignitions (Updated) For purposes of this metric, a fire ignition is defined as follows: • TDPUD's electrical infrastructure was associated with the fire. • The fire was self-propagating and of a material other than electrical. • The resulting fire traveled greater than one linear meter from the ignition point. • TDPUD has knowledge that the fire occurred. To evaluate this metric, TDPUD reports the number of fires that occurred that were less than 10 acres in size. Any fires greater than 10 acres will be individually described. New fire ignitions will be reported to management and firefighting agencies. Starting in 2024, TDPUD will collect information on ignitions separately for the Distribution and Transmission systems and will distinguish between vegetation, other, and unknown causes. Metric 3: Outcomes - Outages and Hazards (Updated) The third existing metric, Outage Causes, is being updated and expanded. This metric will report the number of outages recorded during wildfire season by the month the outage occurred. Starting in 2024, TDPUD will attempt to collect information related to outages separately for the Distribution and Transmission systems and will now categorize by cause being vegetation, other, or unknown. For the purpose of this metric, TDPUD is defining an outage as an event when a transmission line or electrical equipment is out of service and the event is recorded in the OMS as an outage. Metric 4: Outcomes-Safety Hazards Starting in 2024, TDPUD will monitor the number of Safety Hazards that are reported and verified. Metric 5: Outcomes-Vegetation Management Starting in 2024, TDPUD will report on the number miles and/or poles that were treated per TDPUD's Vegetation Management Program. TDPUD will report separately for the Distribution and Transmission system. Metric 6: External Risks, Red Flag Warnings The fourth metric is Red Flag Warnings that are issued by the National Weather Service, National Oceanic and Atmospheric Administration, Reno NV Office. This metric will be reported as the number of days the warning covered or partially covered. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 34 Page 297 of 449 Metric 7: External Risks, High Wind Warning Days The fifth metric is High Wind Warning Days that are issued by the National Weather Service, National Oceanic and Atmospheric Administration, Reno NV Office or are measured on a valid weather station in TDPUD's service territory. This metric will be reported as the number of days the warning or actual measurement covered or partially covered. B. IMPACTS OF METRICS ON THE PLAN As part of the annual WMP review process, TDPUD reviews the data collected for each metric and continues to update the WMP annually. The original metrics have proven to be useful for informing the effectiveness of the WMP particularly when complemented by additional data such as location for new fire ignitions and data from the OMS (location, customers impacted, etc.) for wire-down events. TDPUD uses the data obtained from the metrics with the additional data to pinpoint locations where additional wildfire prevention is needed, including where additional vegetation management treatments are necessary and where TDPUD needs to install more animal deterrents. C. MONITORING AND AUDITING THE PLAN Internally, the wildfire prevention strategies and programs described in the WMP are evaluated on an ongoing basis. TDPUD staff tracks the utility's progress in completing wildfire prevention program goals. The progress data and data regarding the metrics plus outage information are reviewed by the Electric Utility Director. The Electric Utility Director, or designee, will, at least on a semi-annual basis, update the General Manager regarding the Plan's implementation, identified deficiencies, or recommendations for updating. Any critical or immediate concerns will be brought to TDPUD's Board of Directors. In addition to the ongoing internal review, TDPUD presents the current WMP to its Board of Directors for review on an annual basis in a public setting with agendized materials. Development of the Plan, along with the updates, is done collaboratively with the local emergency response and fire agency. D. IDENTIFYING AND CORRECTING DEFICIENCIES IN THE PLAN TDPUD staff have the role of vetting current procedures and recommending changes or enhancements to build upon non-optimized strategies in the Plan.TDPUD staff utilizes the data (e.g., progress in completing prevention tasks) obtained during the ongoing review of its wildfire prevention programs to identify areas where additional work is needed, such as increasing clearance between wires and adjacent vegetation or removing dead trees, or areas where system upgrades need to be prioritized, such as pole replacement or the installation of animal deterrents. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 35 Page 298 of 449 The Electric Utility Director, or their designee,will be responsible for spearheading discussions on correcting deficiencies when updating the Plan for its annual presentation to the Board.This is done in collaboration with sister utilities and joint-action groups such as the California Municipal Utilities Association, Northern California Power Agency, and Southern California Public Power Authority. All stakeholders are empowered to suggest improvement opportunities, including, but not limited to, field crews, management, auditors,fire safety professionals, and members of the public. E. MONITORING THE EFFECTIVENESS OF INSPECTIONS TDPUD currently utilizes GO 95 and GO 165, respectively, as its guide to inspect its system. Field staff routinely patrol the service territory and correct deficiencies as they are encountered. TDPUD tracks deficiencies that are repaired upon discovery within its GIS and consistent with the guidelines of GO 95 and GO 165, respectively. Further, deficiencies that cannot be repaired upon discovery are assigned a priority level based upon Electric Operation Manager review. TDPUD will investigate a more formally documented process where deficiencies are assigned to a priority level upon field review. The repairs will be re-defined as Level 1 (highest), Level 2 (moderate), or Level 3 (lowest) as defined by GO 95, Rule 18, with the discovery, remedy, and supporting documentation tracked within TDPUD's GIS. Once this improvement is in place, deficiencies and repairs can be tracked according to priority level. Monitoring the effectiveness of inspection practices will occur through ongoing tracking and annual review of TDPUD's findings, including deficiencies found and corrective actions taken. The Electric Operations Manager or their designee supervises the VMP, all routine fieldwork, and equipment and line inspections. Related strategies that mitigate wildfire risk will be identified and proposed within the next iteration of the Plan. Aggregating these data will guide future decision- making on the direction of the wildfire mitigation strategy with the intention that incidents will become less frequent or less hazardous system wide. F. INDEPENDENT AUDITOR Public Utilities Code Section 8387(c) requires TDPUD to contract with a qualified independent evaluator with experience in assessing the safe operation of electrical infrastructure to review and assess the comprehensiveness of this Plan. The independent evaluator must issue a report to be posted on TDPUD's website.This report must also be presented to TDPUD's Board at a public meeting. Navigant Consulting conducted the independent audit of TDPUD's WMP in 2019 and Guidehouse conducted the independent audit in 2023. Both independent audits concluded that: 1. TDPUD's WMP aligns appropriately with Public Utilities Code Section 8387 and includes all required elements. 2. TDPUD's Plan is determined to be comprehensive. TDPUD's WMP satisfied the requirements of Senate Bill 901 and the 2024 WMP considers the previous recommendations of the two audits. It should be noted that TDPUD, in order to maximize the benefit of direct investments in wildfire prevention, only intends to use the Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 36 Page 299 of 449 independent auditor when there is value, which is currently anticipated to be during comprehensive revisions of the WMP every 3 years or if major changes are made in between. Annually, TDPUD presents WMP revisions to the Board for approval before the end of June of each year prior to submitting the WMP to the Wildfire Safety Advisory Board by July 1st of the same year. Board meetings are typically held on the first Wednesday of the month and the meetings are open to the public except for closed sessions. Members of the public can attend the Board meeting in person. Board meeting agendas included an attached agenda report, such as the one that presents the WMP to the Board and are available online on the TDPUD website (www.tdpud.org). Board members receive the WMP prior to the meeting date as part of the public Board packet. During the meeting, TDPUD staff presents the WMP to the Board as action item and Board members provide comments when the presentation ends. Board member comments are followed by a period of public comment where the Board opens the meeting for public comment on the WMP. The WMP is either adopted by vote by the Board or returned to TDPUD for revision if there are comments that cannot be resolved during the meeting. The final adoption of the 2023 WMP by the Board was done on June 7, 2023. A similar schedule is anticipated for 2024 adoption. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 5.0 May 31, 2024 37 Page 300 of 449 x REFERENCES Carlson, A.R., D.P. Helmers, T.J. Hawbaker, M.H. Mockrin, and V.C. Radeloff. 2022. "Wildland- urban interface maps for the conterminous U.S. based on 125 million building locations." Retrieved from USGS ScienceBase Catalog: https://www.sciencebase.gov/ catalog/item/617bfb43d34ea58c3c70038f. Town of Truckee Planning Division. 2020. Climate Ready Truckee: A Climate Change Adaptation Plan. Truckee, California: Town of Truckee Planning Division. July 2020. Truckee Donner Public Utility District Wildfire Mitigation Plan Version 4.0 May 22, 2023 38 Page 301 of 449 APPENDIX A CPUC HIGH FIRE THREAT DISTRICT MAP FOR THE TRUCKEE DONNER PUBLIC UTILITY Page 302 of 449 T a ' m rn - o na cu � C cp M a � a o m9 m � C � Q 77 v C rt � i c• n k m S� Page 303 of 449 APPENDIX B PREVAILING WIND MAP Page 304 of 449 � cn o C rn IV b �p 00 y � Mdr � � � a • mor } 7 or Page 305 of 449 APPENDIX C POLE REPLACEMENT RANKING TOOL Page 306 of 449 Pole Replacement Ranking Tool BACKGROUND In March 2017 District staff initiated a project to prioritize utility pole replacements based on quantitative data. Prior to that,pole replacements associated with Master Plan Iine upgrades were given priority and other replacements were prioritized by operation staff intuition with limited logical rationale. Staff recognized the importance of prioritizing projects considering Safety,Reliability anti Code Compliance. There are approximately 5400 poles maintained by the District. Assuming a service life of 30-50 years approximately 100 to 180 poles should be replaced annually foran asset management preventative maintenance program. Planning is required to achieve this rate of annual pole replacements and insure engineering,vegetation management,and joint pole planning proceed at a similar rate in advance of the replacement. The Pole Replacement Ranking Tool was developed in response to this need fora project planning and prioritization tool. Originally developed in 2017,the Tool is reviewed and updated periodically. The Tool was most recently updated in February 2020. THE TDOL The Pole Replacement Ranking tool uses GIS feature attributes to assign a score to each pole feature based on the equation: Replacement Score=Age Score+Condition Score+ Critical Asset Score This score then he corn es an attribute of the pole feature in GIS. The replacement score attribute is then mapped in GIS to provide a visual report of pole replacement priority. The score factors and associated weights are; Age 20% Condition 60% Critical Asset 20% The maximum score for a pole is 100 pts(100%). The weight assigned to each scare represents the estimated risk associated with leaving a given pole in service. Age and Condition estahI Ish a'health' score for the pole, while the Critical Asset fa cto r e sta b I ishes a relative safety and reliability risk of facilities. AGE Pales under 35 years old are considered low risk and are assigned an age score of zero. As poles age the Age score increases as noted below. Age(years) Score 60 or older Oldest 20 55-59 16 50-54 12 3f9f2020 Page S Page 307 of 449 Pole Replacement Ranking Taal 4S49 S 40-d4 4 3S-39 2 &34 Newest 0 MN DMON There are two elements to the Condition score: GGLfiS i ntrusiue inspection results and annual patrol inspection results- The Condition_Intrusive Inspection result is a ratingfrom 1Ibest}to5 [warst� recorded in the G0155 inspection Pales Requiring Replacement reports. Intrusive Inspection Rating Score 1 Best Pale 01K a 2 0ecayfMechanicaIDamage 8 3 Recommend Change Out 16 4 Reject-Reinforceable 24 5 Worst Priority Pole 32 The Condition_Patral Inspection result is a rating From i Ibest) to 5 jwarscM based an the annual visual inspection of ICkD%of the poles in the district. Patrol Inspection Rating Score 1 Best recommend future action 5 2 Future action 3 categories 10 3 I ntrusitiwe tag* 2 categories 15 A Urgent Action 210 5 Worst Urgent Action•2 categories 28 CRITICAL ASSET The Critical Asset-factor ranks facilities based on the impact an event on a given pole cou Id hgve an Safety, Reliability and Com plianee. Attribute ID Asset Score 1 distribution 20 2 Secandary 15 4 Guy 5 3 Street Light t} 5 Transm issic n a fi Broadband 0 7 Tree 1) While an event on a Transmission pale could have a significant impact on the distribution system, these facilities are not owned bw the DISTRICT and are not included in the pale replacement Coal. Cu nrently the tool assigns the Tree asset a zero score as trees typically have secondary/service attachments and, if the tree fails,the n the im pact a n the distribution system is I im it-ed. With the increased emphasis on wildfire mitigation and the District's stance an tree attachments,this weighting may be reconsidered. The final Replacement Score is mapped in GI5 by range- Score Range Color 61-IW Red 319f P0L20 Page 2 Page 308 of 449 P{ale Replacement Ranking Tool 51-60 Orange 4 1-50 Yellow 3140 Light Green -e■310 Dark Green 2021)REVISION The 2017 version of the tool used the equation: Repkwemenr Score ■Age Scare *Condition Score -0 Crifico�Aswt Score*Relrahitity Stwe The Reliability scare was to he based on outage management system JOAAS)data and reflect the frequency atoients on a gven device_ The Reliability score was not included in the 200 version of the tool while staff evaluated the parameters. Si nce then:staff determined the CMS data does not correlate to pole health or the safety/reliability risk of leaving a pole in servi€e_ As a result,this factor was not included in the 20L20 revision_ The OMS data is important to safety and rel iability and is considered in planning and prioritizing other engineering and oPerations activities. In the 21321)version of the Tool,staff identified Condition as the most important indicatorcif health and real located scaring accordingly. Less emphasis was given to Age,more em phasis gran to Co nd ition and f ritica I Asset emphasis remained u nchanged_ Staff also determined a nnua I Patrol I nspectinn results were awa ila hle_ This data is im portant and u p-to-date information related bo pole health and has been added the Condition factor soon ng- FUTURE TOOL IMPROVEMENTS Coordinate the patrol inspection data oollection tool with the Pole ranking tool to more accurately ides,rank/prioritize and record pole health. 319pi 20 Page 3 Page 309 of 449 APPENDIX D VEGETATION MANAGEMENT PROGRAM Page 310 of 449 TRUCKEE DONNER Public Utility District Vegetation Management Plan Revised: May 23, 2022 Page 311 of 449 INDEX Section Page Introduction 3 Service Area 3 Plan Oesc ri pt ion 3 Plan Personnel 5 Plan Operation Elements 5 Olearanc�e Requirements 8 Regulatory Requirements 9 Exhibits 11 2 Page 312 of 449 VEGETATION MANAGEMENT PLAN Truckee Donner Public Utility District Miss ion Statement- D istrict Coda, Title 1, Section I A 5.010 The Uissian of Truckee Donner Pubiie t.11Wky District is to wide reuabie- high quality UlAfty and customer services wrhVe manageng the Dish r-l's resources irr a safe, opera- respor&s bk, and errvironment0y saundr marmar at the towrest proctica� cost- Introduction The T ruckee Bonner Pu blic Litil ity District (the D islrict) has a responsibility to mai main vegetation so as not to threaten The safety and integrity of electric facilities. The District's Vegetation Management Plan ([he Plan) is an important part of the District's effort to deliver safe, reliable and cost-effec'tive electric service to customers. The goals of the Vegetation Management Plan include: (1) ensuring the safety of District Personnel and the public, (2) reduction of fire risks due to tree contacts or electrical sparks igniting vegetation (3) the prevention of customer outages due to tree contacts, and (4) aeslheGcs. The Plan is designed to meet the goals and objectives of The District, as well as Slate and Federal requirements, as they relate to maintenance of electric facilities in Public Utility Easements (PU E). Service Area The District is a Public U G lily D islrict of 11h a Stale of Ca lifomia engaged in the distribution, sa le and delivery of elechic power and energy- The District is a transmission-dependent utility connected to NV Energy's transmission system and is located high on the eastern slope of the Sierra Nevada. The District is not interconnected with any other utility- The District's electric service territory is comprised of approximately 44 square miles in eastern Nevada County and approximately 1.5 square m iles in adjacent P lacer County. The electric system includes approximately 135 mi les of 12.47 kV and 14.4 W overhead distribution lines, and about one-half mile of 6OkV overhead transmission lines. The District has approximately 5,4-90 poles in its service territory, making Itre tree Trimming budget one of the largest annual operational expenses for the District- Plan Description The District is required by State and Federal laws and regulations to prune or remove vegetation close to energized electrical facil ites for public safety and electric system reliability- The Distnct adheres to all a pplKable vegetation clearance requirements and performs regular vegetation managment in accordance with State and Federal requirements, industry standards, and other procedures that help to prevent outages and fires due to tree contact. District staff are responsible for preparing wDrk plans for annual vegetation management operations. In addrtion, staff routinely performs quality control (CC) audits for ongoing work for ad herance to clearance requirements and to track progress throughout the year- Circuits are Page 313 of 449 patrolled a nd maintained on an ongoi ng basis, enabli ng the Distri ct to cover a II overhead electiric liner, on a rotating five-year cycle_ While conducing routine vegetation management operations, the District remover, any identified higlrrisk fuel source vegetation, as required. The District also performs inspections of vegetation concerns for customers or when vegetation management contractors identify at-risk vegetation while performing day-today operations. Staff is oanstenlly evaluating methods to improve and enhance inspection procedures and vegetation operations. Vegetation management generally consists of removing, cutting, trimming, and clearing away of trees, tree limbs, branches, bushes, vines, foliage, the removal of hazard trees, and inspection of legacy tree attachments in proximity to electrical lines, substations, and other District properly within the PUE. Vegetation removal is performed by mechanical trimming in and around transmission and distribution circuits, from the substations to the end of the each feeder circuit- An emphasis is placed on the removal of tree branches and trees that are located within clearance Ii mils, ground- level clearing around poles, vegetation clearance within the PU E, plus the removal of hazard trees that may be located inside or outr,ide of the PUE. The District does not perform vegetation removal operations in the following areas: 1. Supply Sorvice Drops Supply service drops, or service wirer,, are defined as the overhead conductor from the Distdct-s distribution pole line to the customers' service entrance or meter base eq ui pm enL These overhead supply lines are generally energized at .24t1 volls- The District doer, not perform vegetation management cperaions along customer supply service drops. Tree triming and maintaining the health of trees on private property is the cuslomer's or property owner's responsi bilily_ The customer or property owner shal I mai nlain a 4 foot clearance at time of trim and a minimum 2 fool clearance from supply service drops to trees and other vegetation at all times. Upon request, and during normal business hours, the District will temporarily de-energize or remove the customer's overhead secondary service line at no charge to the customer, U-iereby alloying for tree (rimming or maintenance work b be performed safely- 2. PadmouFde-d Equipment In areas served by underground electric facilities, padmounted equipment, including transformers and switchgear, are placed at customer locations or select intervals along main electric lines near streets and roads- Per District code, employees. must be able to access th is equipment at any time for routine maintenance, troubleshooting, or emergency repairs. Th is equipment must be visual ly and phyisica Ilyf accessable to District crews al all ti mes. A clear worki ng a rea must be maintained on a II sides of pad mounted equipment. The door side shall have a 10 four minimum clear working area- The non-door sides shal I have 3 foot minimum clear working area- Clear working area shall mean no fences, shrubs, trees, landscape rocks or other obstructions- The customer or property owner shal I maintain these clear working areas for District access- •1 Page 314 of 449 Plan Personnel District crews consisting of licensed Jou meymen Linemen perform tree trimming operations on an as-needed basis_ The majonty of the Flan work is performed by licensed tree contractors specializing in vegetation management operations for electric utiltities. Contracts for Vegetation Management are signed for one year, with up to three, one year extensions.The District has very strict requirements for selecting a tree contraclor following the public procurement process. The contractors field supervisor must be a certified arborist with the International Society of Arboriculture_ The Contractor must employ only qualified line clearance tree trimming personnel meeting the requirements of OSHA n CFR 1518.265, AN S I Stand@ rd Z 133.1, and Gal ifornia Code of Regulation Title 8 Article 38 standards and requirements. In addition, the contractor must have a category D-49 Tree Service Contractor IEcense issued by the California Contractors dale License Board and be a State of Califamla issued Licensed Timber Operator (LTC). Plan Operation Elements 1. General Vegetation management operations are performed by mechan ica I trimming or removal of trees and other vegetation along distribution and transmission line circuits_ These operations are performed in a manner which creates minimum disturbance to the surrounding natural vegetation and landscape not directly involved in the work. Ingress and egress to work areas are via existing roads, driveways, access roads, etc. The work is performed so as to cause the least possible obstruction and inaonven ience to public traffic_ Public vehicular and pedestrian traffic is allowed to travel through the work area with a minimum of i nterruption or i mpedance un less otherwise req ui red for safety concerns. Al I traffic control and related devices conform to requirements set forth by the Town of Truckee_ 2, Scheduled Mari nta i n ce Cycle Trees and vegetation are cleared from District facilities on a scheduled maintenance cycle_ The District's maintenance cycle goal is :5 years for all facilrtes. This means that trimming operations are performed on the same portion of a distribution or transmission line typically once every 5 years. The intent of the scheduled maintenance cycle is to perform trimming necessary to obtain clearance that will last for the duration of the circle_ Other benefits include improved access to electric facilities and reduced future maintenance costs. Facilities are worked in a systematic approach. Operations are recorded by staff on the District's Geographical Information Systems (GI S) mapping database to track maintenance cycle goals. 3, public Utility Easermnt (PU E) Clearing The District has the right of access to PIJEs and other dedicated electnc service easements for purposes related to vegetation management including pole clearing, tree trimming, tree removal, and easement clearing. In the event a recorded easement does not exist, easements by prescription, also called prescriptive easements under California Law, give the District the same rights as recorded easements for access to District facilities. Any tree regardless of size. that-s J Page 315 of 449 located in the PUE may be removed d ue to present or futu re oorrfl icts with electrica I faci lities as determined by District staff. PUE maintenance includes pole clearing, cutting and trimming of all trees and shrubs to the extent necessa ry to keep electric Facilities clear of vegetation and to provide access for electric system operations and maintenance. Refer to Exhibits for a graphical depiction of cleara nce req ui rernents and PU E clearing activities. d. Nodfication of Customers an&or Prop"Owners Customers andUor property owners are notified a minimum of twenty-four hours prior to any scheduled vegetation management operations adjacent to private property. The notificaion includes the type of work to be performed, including the trimming or removal of trees and the disposal of logs andlor brush. This is typically done by placing `door hangers or using other communication methods to notify customers of impending work_ The work may also require temporary power i nterupbons or planned outages to be performed safely- This work shall be reviewed and authorized by the Electric Operations Manager or [heir designee prior to the commencment of work_ The customer notification cs}n[ains information such as oonlractcr name, address, contact name, phone number, approximate time and duration of planned outage, and District contact information. 6. Types of Trimming Natural pruning techniques are performed as recommended by the I ntema4ona I Society of Arboriculture and ANSI Standard A0. Operations avoid practices that can cause damage or injury to the tree while achieving the required clearance objectives. Wherever possible, natural pruning cuts are made to direct future growth and sprouting away from electric facilities. a. pruning: Tree pruning is performed so as to maintain the minimum clearance requirements from electric conductors as shown in the Clearances section of this document_ Dead branches overhanging conductors are removed. Portions of dead or decaying trees or portions of Crew weakened by decay or disease that may contact conductors from the side or by fal li ng are pru ned to eliminate the hazy rd_ b. Crown Reduction. Trees direudy under conductors are pruned and shaped_ The tree crown is typically reduced and rounded into a symmetrical appearance as much as possible. Conifers are pruned i n a natural man ner that allows them to reta in as much of their ntura I shape as possible. c_ Side Pru nee: Where line clearance tree pruning adversely alters the shape of a tree, additional Arun ing is performed to give such trees a better sha pe and appeara nce. 6, Tree Removal Tree removal is performed for all trees that do not meet the clearance requirement from the tree trunk to energized conductors and also for hazard trees. Hazard trees are trees with the potential to fail and threaten the reliability of the bistricfs overhead electric facilities. Hazard trees may be Page 316 of 449 located inside or outside of the PIJE_ The District will notify and obtain approval from property owners when tree removal work is outside of the PUE_ Hazard trees are defined as any tree or portion of a tree that is dead, split, rotten, decayed or diseased and which may fall into or onto electric facilities or trees leaning towards lines. Tree removal includes the falling of the entire tree or crane removal- It also consists of the removal and disposal of trunks, limbs and branches. Following best forest m ianagement practices, trees are cut off at ground level to leave a slump height of no more then 3 inches to promote natural decay- The District is not responsible for the removal of stumps. 7, Pole Clearing The pole clean ng prog rare is a n annual requirement to clea r vegetation around poles that contain electric apparatus in addition to wires in complianoe with California Public Resources Code Section 42-92. This Code applies to a majority of District poles. The district will notify and obtain approval from prop" owners when vegetation removal work is outside of the PUE_ In addition, ground level vegetation clearance and removal is performed to provide the required fi rebreaks and to minimize new spring growth which are essential steps in reducing impacts to the electrical distribution system due to wildiand fires. Pj fer to Exhibits for a graphical depiction of clearance req ui remenls and PUE clearing activities. .8. Tree Attachments (Legacy Attachmw ) The District has legacy attachments to trees that consist of: service drop(s); secondary conductors s): or. security lighting. Although these installations are permitted pursuant to California Cade 14CCR § 1257. the District does not engage in this practice for new installabons_ In order to ensure the integrity of these attachments, the District performs the following: + I nspect legacy tree attachments and correct a ny haza rdous cond ition found such as tree growth around conductors, physical signs of damage, etc; + Remove tree limbs on trees used as an attachment point(s) consistent with 14CCR d 257; * Accurately record attachment paints)on GIS ma piling database for audit pu rpo�ses. 9, C ontro I of Materia I a n d C lean U p Tree branches and other vegetation less than 5 inches in diameter are #hipped and removed from the wDrk area. Wood larger than 5 inches in diameter is cut into lengths for safe lifting purposes. WDod larger than 5 inches in diameter is made available to District customers before removal by the contractor. Customers on whose property a tree or trees have been removed or who are adjacent to such work will have the first opportunity to use the wood collected from such trees before removal by the contractor. The work is performed in an environmentally responsible manner with regards to any and all material generated by the work_ Page 317 of 449 The District may store Ember logs lempGraralyf at the work site while efforts are made to arrange for remrroaa I and transport to the mi II or fin@ I storage facility- Upon completion of the work, the a rea is cleaned to a condition at least equal to that which existed prior to the commencement of the work. During winter storm restorations, these logs may be left for an extended period of time due to heavy snow fall making them inaooesable to load after power restoration efforts are complete. In these situations the District or its contractors will do their best to minimize impacts to customers by slacking material off of the roadyway or other accessible public walkways. Clears me Requirements The following table reflects the District's current minimum clearances required between conductors and vegetation: Clearance of Conductors to Vegetation Trimmed M inu mum Type of Cleararica Claim n ce Condu ctor Volltago Secondary 0 to 750a 4 ft. 2 fL Supply Conductors Primary 750r to 12ft. (1, a) 4 ft:. (2,3, 5) Supply 22,500v Conductors Primary 22.5kV tc U fG (1, 3) 4 ft. (2,3&4) Supply 72.5kV Conductors Notes: 1_ GO 95 Appendix E, Guidelines to Rule 35, Case 14. High Fire Threats 2. G !)5 Rule 35, Vegetation Management; Table 1, Case 14, High Fire Threats 3_ CPUC Fire Threat Map: The CPUC has identified the District's service territory as a Tier 2 High Fire Threat District (.HFTD), wilh the Tahoe Donner Subdivision identified as a Tier 3, HFT0_Therefore, greater clearance requirements apply as compared to being in a non- fire threat area_ 4. California IPRC Section 4293 5. The m in imum clew rance may be red uced to 6 inches for tree trunks and major Ii m bs -of sufficient strength and rtgrdrity to prevent the trunk or limb from en=&Ching upon Me 6 Or-h minimum cl"ronoe under reasonable foreseeabk rwuhdr and weather C=6 r s"; GO 55 Rule 35, Tree T rim m ing, Exception N o. 4. Page 318 of 449 Regulatory Requirements The District performs vegetation managment in accordance vrith Slate and Federal requirements. In addition, the District follows industry standards, and other procedures that help to prevent outages and fires due to tree contact. These requirements, standards, and procedures include: California General Order No. 55, Rule 35 -Vagatation Management Th is ru le specifies the mi ni mum radial cleara nce that must be ma intained at all ti mes from energized conductors to vegetation_ • California General Order No. 95, Appendix E - Guidelines to Rule 36 This rule specifies the minimum radial clearance that must be maintained from energized conductors to vegetation at time of trimming • California General Order No. 95, Rule 21.2 O- High Fire Threat District Th is ru le specifies the use of California Publ is Uti lity Corn m ission (CPUC) Fi re T hreat Map to id enlify fire threat level zones. • California General Order No. 95 Rule 315, Vagatation Management; Table 1, Casa 13, Radial Clearance requirments Radial clearance of bare line conductors from tree branches or foliage. * California General Order NU. 95 Rule 3 5, 'Vegetation Management; Table 1, Case i.&, High Fire Threats Radial clearance of bare line conductors from vegetation in Extreme and Very High Fire Threat Zones. • California Pub I i c U til ity Co mmission (CPUC) Fire Threat Map Th is is the CP UC-s statewid e F i re Threat Ma p identifing areas of the state at a n elevated (Tier 2) or extreme (Tier 3) risk of power line ignitied wildfire. + California Public Resources Code Section 4292 Th is law is adm in islered by the Cal ifornia Department of Forestry a nd Fire Protection (CALF I RE)_ The law requi rev the mai ntenance of a 10 foot rad ial firebreak arcu nd a leo'tric uitil ity poles that contain switches, fuses, transfomme rs, or other electric equi pm en t. * California Public Resources Code Section 4293 Th is law is ad min islered by CALF I RE_ T he later spedfies the m inimum clears nce between energized conductors and vegetation. It alsD requires the removal of dead, deseased, or dying trees, or trees that could fall into electric lines. Such trees may be located inside or outside of the right-of- rays or easement areas. * California Administrative Coda, Title 8, Article 37 - Proximity to Chia rhead Linea This code specifies minimum clearances between personnel and equipment working in close prDxi m ity to overhear electric facilities. Page 319 of 449 California Adm in i strative C ode, T itl c S. Arti c I o 38 - Li ne C I oa ra nce Tree Trim min-9 OperatFcns T h is code s pec if-es req ui rem en is f or personnel perfo rimi ng I ine clearan ce tree tri mming operations. IP Califo rnia Ge nera I Order No. 16 5 - I nape ration Re qu irements ifor E Eectri c Distribution and Transmission FacMies 'r h is ;u Ie specifies the minimum cVcte times for inspection of electnc distribution and transmissmn Ines. • AN;S1 A300.1 -Tree Care Operations - Pruning This national standard addresses pruning practices for tree inrn m ing operations. • AN i Z133 - Sta n dard for a" Requi reenents in Arbo ric u I turn I ape rati ons This n at�on a I standard addresses arbonculture safety requirements for p runwg- repainng, m ai nia i ni n t and removing trees, and for using equipment in such operations. OSHA 29 C FR 1910.269 - Electric Power Generation, Transmission, and Distribution Th is fede ra I stand a-d s pe kf;es re qu ire ments ?or-,darker safety in the electnc pore r?nd ustry.. I A lest Management Practices — Vagetation Managment The International Society of Arboriculture (I3A) developed this D P for the selection and application of meth-ods a nd t,echn iq ues for vegetabon control for electric ng hts-of-way. # District and other standards as referenced in this docurmnt. Page 320 of 449 Exhibits Vegotatian Management Handouts Truckee Donner PUD Vegetation Management Program Helping to -p # r Required Clearances to vegetation C it Horn:P_tIK u�r�r., • for High Fire Threat Areas „_..._.. _ ���,���: sa•��� �., fl_le 3�.INNPe**-WE fRHQ rtre gMxd Vigaw1ion Removal Requir#m intp odry:usaa s a ar IS m MFLJD is required lay sute kw aU mqulelio-m 1 F 1 [{•rprral D•der 95 aM vaum a La remove ue W Lac ion dose In powimr lines 96r di-M1nm+dnMvmn raQ%Al dowm;;m neebk mFetyr and eeliabiky.This otxecis of Frrt vagel n.l ri-rrrr5 trae trimFnkW end bras rarwWs '_ BUD wlll r"Hy ixcupaml in adwrlar of 4+ J4+ NUtM vee triMrpin9 work. ; � I � I bra • 20' •r Public utility Easement(P41f) +larard ma ffl mwAm• TM 1s re41 M#d I reR,cA�vY arV dead.41 PRNFS G1 r W lying 1reeL 17C41ri$moe ni uil7dp 41 R3EL irul hm b.pM-,h.1 in&d.-Wilily Inrti i TDPIM M+rrnlily W atnan nprxpymtr0m a1I3ib 1h.PL! TR UIIU EE'DO N N IC .587.3836 1 tdpud.0rgf Wi Idfi re-safety Fallow os. f ` 11 Page 321 of 449 ARE YOU PREPARED FOR "6w6w SEASON? Ongoing Vegetation NLanagemerit k4ork TruCkeL6 D041 reF PUD%%dedita:ed iimfr erLE<?2n[r8c Itrs arit*usy raft Icting vegetation manageniem irccbdmg,free trimming and rernowal oI Maaard leees around poxver Brier.and rnaeItwim defe-isrtde spare cn Rroaerties owrRd by TDPUD Piaaw do r)i4r pnrl to pr-nl rrci pnin honrr cX t}t OMRss aw tVr comfnu lick.Visit Ldt3ukl.brWWiIcWi*-adieux Oar ifIlotmadon ano Ifti to resaviceE, 3 Sign up for emergency alerts and notifications Doei IDPUD-9.h*your updated rusiowf coma[[mfom%a ion? Do you wain I-o be r+caifred dLrrlpg wlld&e!eakqy outn es{wm) ang emeiWncy situinkrO tbPua LELS[Orner'i,an cuK.cmim Err¢I and text no#ificatior}s.as will as push alerts by vipting tdpgdLQFgWL%ff E f nrd ell:kieg nn I hr My Atpo rd hrA lalk TEXPUD has partnered ruin NiKle to pfYPde tafge'.ed alerts w FDPLID 4• r uirtorner5,comrrivirt's'mErr-hem aid the puhlk EweWe can sign IQ 1or 10FUD wde ernE�4nx1 alerts by 14MIng MPLRD ic�33m An?yuu prepa red f0T pOv er putiges? — d TD3UD•'ai taken seeps ro make our elecincal sysiem more safe* cwringyyildfire smart tut Fhe result�s more and longer Wager, Go to tdprud irglwildGrg•safetx to lean mcm 1'? Page 322 of 449 AGENDA ITEM #17 Public Utility District m MEETING DATE: June 5, 2024 TO: Board of Directors FROM: Michael Salmon, Chief Financial Officer SUBJECT: Consideration to Accept the Audited Financial Report for FY23. APPROVED BY. Brian C. Wright, General Manager RECOMMENDATION: Accept the Audited Financial Report for the fiscal year ending December 31, 2023 BACKGROUND: The District is required to have its financial records audited by independent auditors each year. The Board is responsible for hiring auditors, and the auditors present their findings and report directly to the Board. In 2022, the Board extended the contract with the independent auditing firm Moss Adams, LLP to perform the District's audit for FY22, with the option to extend two years for FY23 and FY24 audits. The District extended the contract with Moss Adams for the FY23 audit. Beginning in FY20, the District issues an Annual Comprehensive Financial Report (ACFR) in compliance with Governmental Financial Officers Association (GFOA) guidelines. The ACFR packages the standard financial statements with an expanded introductory section, and supports the standard financials with a robust statistical informational disclosure section. Moss Adams does not audit nor make an opinion on the additional information in the ACFR, but does review the information to ensure it does not conflict with the audited standard financial statements, which are the core financial section of the ACFR. The District received GFOA's Certificate of Achievement for Excellence in Financial Reporting for the ACFR for FY20, FY21, and FY22. ANALYSIS AND BODY: Moss Adams conducted the FY23 audit of the District's financial records and resulting financial statements. In November 2023, Moss Adams conducted initial assessments of financial data and internal controls. In April and May 2024, Moss Adams conducted field work and tested the financial statement balances and disclosures for the year 2023 and as of December 31, 2023. The result of the audit is reported in an opinion letter from Moss Adams. The opinion Page 1 of 2 Page 323 of 449 letter for 2023 from Moss Adams is an "unmodified" or "clean" opinion on the financial statements, which is the highest level of assurance an auditor can provide relative to the fairness and accuracy of the financial statements being presented. The opinion letter and accompanying financial statements are presented herein as a component of Attachment 1, the 2023 ACFR. The attachment is provided as a 'draft', as Moss Adams has not formally released their opinion on the financial statements as of the publishing deadline for the June 5, 2024, board meeting. Moss Adams is scheduled to present these results to the Board at the June 5th meeting, and will review any changes to the draft (not anticipated) and the comments related to internal control matters identified in their communications letter. The FY23 ACFR will be submitted to GFOA for review and consideration for receiving a Certificate of Achievement for Excellence in Financial Reporting. GOALS AND OBJECTIVES: District Code 1 .05.020 Objectives: 1. Responsibly serve the public. 6. Manage the District in an effective, efficient and fiscally responsible manner. District Code 1 .05.030 Goals: 1. Manage for Financial Stability and Resiliency 3. Engage with our customers and communities in a welcoming and transparent way to identify opportunities. FISCAL IMPACT: There is no direct financial impact by means of accepting this report. ATTACHMENTS: 1. 2023 ACFR Draft 20240531 Page 2 of 2 Page 324 of 449 TRUCKEE • . PUBLIC UTILITY DISTRICT CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 and 2022 pp PREPARED BY THE ACCOUNTING AND FINANCE DEPARTMENT TRUCKEE DONNER r Public Utility District TheMissionof the Truckee Donner Public is to provide reliable, high quality utility and customer services while managing District resources in a safe, open, responsible, and environmentally sound manner at the lowest practical cost. Truckee Donner Public Utility District's VP Lu Safety — Safety is our way Safety is our first priority. We are committed to the hep' and safety of our employees, customers, and community through the continuous p, .,;e of prevention, education, and awareness. Communication — Send and receive Foster positive engagement by creating a strong communicative environment that includes; active listening, 4a a ilc'}h-clear, concise, and timely transmission of information, with empathy d e ect. This also includr- orovidino and receiving honest feedback. Integrity — Hon ' ethica. Highest quality Ace to the Ilic and employees, utilizing honesty and ethics as our base princip' Accf— - `- Aity — Own it A str e orming team wit he obligation and willingness to accept responsibility for our cons aintaining a sen of humility and inclusiveness. Time es Meet our goal d co fitments A hig lye tive agency an spon ve organization mgeting goals and expectations in a timer manner. ,, Mission and Values of District, as adopted by Board of Directors May 19, 2021 Page 12 Page 326 . Table of Contents Introductory Section Letterof Transmittal..............................................................................................5 Organization Chart, Board of Directors and Appointed Officials....................................10 GFOA Certificate of Achievement for Excellence in Financial Reporting.........................11 Financial Section Report of Independent Auditors .............................................................................14 Management's Discussion and Analysis...................................................................17 Financial Statements............................................................................................23 Consolidated Statements of Net Position......................................................24 Consolidated Statements of Revenues, Expenses and Changes in Net Position...26 Consolidated Statements of Cash Flows.......................................................27 Notes to Financial Statements................................................................................29 Required Supplementary Information.......................................................................71 Cost Sharing Defined Benefit Pension Plans..................................................72 Schedule of Changes in Net OPEB Liability and Related Ratios.........................74 Supplementary Information.....................................................................................78 Consolidating Statement of Net Position........................................................79 Consolidating Statement of Revenues, Expenses and Changes in Net Position.....81 Consolidating Statement of Cash Flows .......................................................83 Statistical Section Statistical Section Objectives and Index.....................................................................85 Financial Trends Consolidated Statements of Revenues, Expenses, and Changes in Net Position....87 Net Position by Component and Segment........................................................88 Revenue Capacity Historical Customer Mix and Rates.................................................................89 Average Residential Bill Comparison...............................................................90 Ten Largest Customers and Sales Mix...........................................................91 Debt Capacity DebtCoverage.......�.................................................................................92 Total Long-Term Debt per Customer and Ratios..............................................93 Demographic and Economic Information Population, Income, Labor Force and Unemployment.........................................94 Principal employers......................................................................................95 Operating Information Number of Employees, Customers, Demand Volumes, and Capital Assets .............96 Capital Assets by Function...........................................................................97 Base Heating and Cooling Degree Days..........................................................98 Page 13 Page 327 of 449 INTRODUCTORY SECTION {s Aul s M TRUCKEE DONNER PUBLIC UTILITY DISTRICT :r Photo by Tim Erskine ©Erskine Creative Photographyb, Page 4 Page 328 of 449 n r rTRUCKEE DONNER Public Utility District General Manager Brian C.Wright Executive May 31, 2024 Leadership Team Dear Board of Directors and Customers of the District, Joe Horvath Electric Utility Director/ The staff of Truckee Donner Public Utility District(District)is pleased to submit to you the Annual AGM Comprehensive Financial Report (Report)for the year ended December 31, 2023. The Report Chad J.Reed provides an assessment of the District's financial condition, informs readers about the District's Water Utility Director services, gives details of infrastructure replacement projects, discusses current issues and Shanna Kuhlemier provides financial and demographic trend information. We are proud to announce the 2022 District Clerk Report was awarded a Certificate of Achievement of Excellence in Financial Reporting by the Government Finance Officers Association (GFOA). This is the 3rd consecutive year for this Scott crow award which is an excellent example of financial transparency for the District. We will be Chief Information Officer submitting this 2023 Report for award evaluation. Steven Poncelet The Report consists of management's representations of the finances and other information of PIO&Strategic Affairs and for the District. Consequently, management assumes full responsibility for the Director completeness and reliability of all the information presented in this report. To provide a Michael Salmon reasonable basis for making these representations, management has established internal Chief Financial Officer controls that are designed to protect the District's assets from loss, theft, or misuse and to compile sufficient reliable information to prepare the District's financial statements in conformity Director lior o steward with Generally Accepted Accounting Principles (GAAP). The cost of internal controls should not Resources Humanrces and outweigh their benefits. Therefore, the District's comprehensive framework of internal controls Risk Management has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that to the best Board of Directors of our knowledge and belief,this financial report is complete and reliable in all material aspects. Joseph Aguera Jeff Bender The District's financial statements have been audited by Moss Adams LLP, an independent firm Christa Finn of licensed certified public accountants.The goal of the audit is to provide reasonable assurance Kim Harris that the financial statements of the District for the year ended December 31, 2023 are free of Tony Laliotis material misstatement. The independent auditor concluded based upon the audit that there was a reasonable basis for rendering an unmodified or clean opinion that the District's financial statements are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this Report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of the Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District's MD&A can be found in the finance section immediately following the report of the independent auditors. District Overview In 1927, the District was formed by and continues to operate under the State of California Public Utility District Act. The District provides electric and water utility services with a service territory of 45.5 square miles, beginning four miles from the northern border just beyond Alder Creek Road, south to Placer County, and 11 miles from just beyond the western shore of Donner Lake eastward to the rim of Boca Dam and the Hirschdale community. As of December 31, 2023 the District served 14,739 electric utility customer accounts and 13,665 water utility customer accounts. Page 15 WKE LIC SPECIAL DISTRICT 11570 Donner Pass Road,Truckee,CA 96161 (530)587 3896 tdpud.org PG'ER °L LEADERSHIP FO NDATION A `"`""k°°"""s I.— Page 329 of 449 The District's service territory is predominately within the town borders of the Town the Truckee (Truckee). Truckee's historical downtown flourished as a railroad station town and gateway to Lake Tahoe. Truckee is generally considered a resort town or bed base for resort and outdoor recreation activities. Truckee's stated current population of 17,500 varies widely throughout the seasons of the year due to tourism and seasonal residences. Winter months are busy with alpine skiing and other winter activities, summer is robust with hiking, biking, boating and other summer activities, while the shoulder seasons are less busy with primary residents predominately. While Truckee's downtown base elevation is 5,817 feet (1,773 meters), the District's service territory elevations range from 5,745 feet (1,751 meters) to 7,370 (2,246 meters). This wide range of elevation creates utility service challenges, explained in detail later in this letter. The District is governed by five elected at-large, Board members. Each elected Board member serves four- year staggered terms. The five-member Board of Directors serve as the governing body with respect to policy and fiduciary responsibility. The General Manager reports to the Board of Directors and all other District employees report up through or directly to the General Manager. An organization chart is provided after this letter to provide additional insights. The District's electric utility (Electric) sold 166 MWh of energy to customers in 2023, down 0.5% to 2022. Electric's system is a transmission-dependent, non-energy producing, distribution electric utility. Electric services the over 14,600 accounts across 233 miles of distribution lines; 135 miles of overhead pole lines and 98 miles of underground lines. For energy sources, Electric has aggressively pursued renewable power sources and currently has approximately 60% renewable power procurement. The winter months can be harsh, with extreme cold and an average snowfall of over 400 inches (over 700 inches in the 22/23 winter season!). The summer months consist of high daytime heat, cool nighttime temperatures, low humidity, nominal precipitation and high winds; creating extreme fire danger. Despite these challenging conditions, Electric has a long history of reliable power and in March 2024 was awarded RP3 Platinum Level by the American Public Power Association's Reliable Public Power Provider program which recognizes utilities that demonstrate high proficiency in reliability, safety, workforce development, and system improvement. The District's water utility (Water) produced 1,496 million (that's 1.5 billion) gallons of water for customers in 2023, down 4% to 2022. Water's system is a 100% wells sourced water system and potable water production capacity is 10,250 gallons per minute or 14.8 million gallons per day. Water services the over 13,600 accounts by a system of 13 active water wells,32 active storage tanks(9.4mg),25 pumping stations, 47 pressure zones, and 220 miles of pipeline. The harsh conditions discussed in the previous paragraph, as well as the 1,625 feet(495 meters) elevation variance across the service territory present water service challenges. Water reliability of supply and quality are paramount to any potable water utility system. The Water system wells access an aquifer which has been extensively studied and tested; determining the aquifer adequate for current and forecasted demand, and further, is not meaningfully impacted by drought cycles. The Water system quality is routinely tested (over 700 tests performed annually)and is consistently below federal and state regulated maximum contaminant levels (MCL)for all regulated contaminants. The District consistently advises and educates customers on matters affecting their water supply and water quality. The District prepares an annual Consumer Confidence Report(CCR)that explains critical drinking water information. Current and prior CCRs are available on the District's website, www.tdpud.org. In addition to core Electric and Water utilities,the District's blended component units include two Community Facilities Districts (CFD), Old Greenwood and Gray's Crossing. In order to finance various public improvements needed to develop property within the Town of Truckee, California, the District formed Community Facilities Districts (CFD), which issued Special Tax Bonds pursuant to the Mello-Roos Community Facilities Act of 1982, as amended. Accordingly, the Bonds are special obligations of the respective Community Facilities Districts and are payable solely from revenues derived from taxes levied on and collected from the owners of the taxable land within the respective Community Facilities Districts. Page 16 Page 330 of 449 These Special Tax Bonds are not general or special obligations of the District. The Board of Directors of the District is the legislative body of the Communities Facilities Districts and as such they approve the rates and method of apportionment of the special taxes. As improvements were completed, the infrastructure was donated in the form of a capital contribution to the Town of Truckee, the Truckee Sanitary District, Southwest Gas, and the District. Local Economic Conditions Truckee and the greater regional area known as Lake Tahoe, is a very popular summer and winter vacation destination, due in part to the proximity to the Bay Area region of Northern California. Truckee's location near Lake Tahoe causes Truckee to be a gateway bed base for the tourism economy, but also has a small- town local economy with its population of approximately 17,500 residents. The District's Electric customers are categorized between primary residential of 40% and secondary (second home) residential of 60%. With the start of pandemic impacts in March 2020, while the tourism business essentially stopped, Truckee experienced a large increase in second homes utilization, a combination of both the owner of the second homes and short-term rentals of the second homes. Truckee residential and commercial real estate development has tapered over the last year's peaks. Truckee real estate as of March 2024 indicates a Median Sale Price of$1,190,000, up 7.4%year-over-year as compared to in 2023 down 7% (source Redfin). The March 2024 Zillow Home Value Index for Truckee region of$1,006,000 is up 1.2% year-over-year as compared to in 2023 down 9%. As California and the nation continue to drive toward net zero carbon emissions and the resulting electrification of the state and country,the District is well positioned for the short-term to meet these service needs and has included these forecasted impacts in the District's long-term planning. District in 2023 Financial Information and Policies The Total Net Position of the District was $131.0 million as of December 31, 2023, increasing $9.1 million or 7.5% compared to December 31, 2022. Operating income of$3.3 million accounts for 36% of the Total Net Position increase. The FY 2023 operating income of $3.3 million represents a margin of 6.3% of operating revenues,which compares to a FY 2022 margin of 5.3%. For 2023 compared to 2022, operating revenues increased 8.3% and operating expenses increased 7.2%. Total non-operating revenue and expenses net to revenue of$3.5 million and contributed assets of$2.3 million account for the remainder of the Total Net Position increase. Total Cash, Cash Equivalents, and Investments was $52.3 million as of December 31, 2023, decreasing $8.0 million or 13% compared to December 31, 2022. The decrease was primarily driven by utilization in 2023 of water's 2022 debt project proceeds for capital expenditures. Refer to Financial Section's Consolidated Statements of Cash Flows and Note 2 of Notes to Financial Statements for additional information regarding components of cash, cash equivalents, and investments. The Management's Discussion and Analysis in the Financial Section provides additional information on the FY 2023 financial results and financial condition of the District. The District reviewed numerous new GAAP accounting pronouncements and adoption of GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs) impacted 2023 and 2022 was restated to conform with No. 96. Refer to Financial Section, Note 1 of Notes to Financial Statements for additional information regarding all the key financial policies of the District and details on new accounting pronouncements. Page 17 Page 331 of 449 Budgetary Controls As a public agency, the Board and District embrace the fiduciary responsibility and stewardship of the District's financial resources. District staff works with the Board of Directors in workshop meetings and public hearing meetings to develop a biennial budget before Board adoption. The budget serves as a management tool to set appropriate service rates, allocate available resources, and includes a ten-year financial master plan. The legal level of budgetary control is maintained at the fund, department, and object account level. Key budgetary control is provided in District Code Title 3 Finance and Accounting, which includes extensive financial, budget, accounting, purchasing, reserves, investments, and other internal control policies. Board level budgetary controls include approval thresholds for expenditures and personnel additions, as well as Board semi-annual review of financial statements and monthly review of disbursements and reserve fund balances. Management budgetary controls include monthly financial statement and budget report review, as well as financial policies and procedures in accordance with aforementioned District Code. Long Term Financial Planning, Public Outreach and Initiatives 2023 was predominantly a strategic plan update and operating plan execution year for the District's adopted Budget which includes the Water and Electric 10-year Capital Improvement Plans. These plans provide valuable short- and long-term information to assist with resource planning in the FY 2022 and FY 2023 biennial budget cycle, which includes a 10-year Financial Master Plan and was approved in fall of 2021. A comprehensive cost of service analysis report and resulting revenue requirements and customer rate changes was completed in 2020 for Water (for through 2025) and in 2021 for Electric (for through 2023). Electric completed an analysis in 2023 which culminated in board approval of 2024 and 2025 rates. The review of these analyses is held in open/noticed Board meetings, as well as, noticed Public Hearings. In May 2021, the District completed an extensive strategic planning process, which included significant community outreach. Community participation exceeded the District's expectations and provided valuable feedback for not only the strategic plan, but also perceptions and insights into the District as a whole as part of our community. An update to the strategic plan was completed in 2023. The District sincerely thanks the community for their valued engagement with the District. The Board adopted Strategic Plan includes the following four key initiatives: • Community Broadband • Service Reliability and Safety • Net Carbon Reduction • Local Watershed Stewardship More information on the strategic plan can be found on the District website (tdpud.org). Page 18 Page 332 of 449 The District conducts regular Board meetings, generally on the first and second Wednesdays of each month, which are noticed and open to the public. The dates of upcoming meetings and an archive of past meetings can be found on the District's website (tdpud.org). Closing Comments We would like to thank the many staff involved in preparing this Report, a true team effort. Further, we would like to thank all our valued employees for their service and dedication to the District and the community during these unique and challenging times. Respectfully submitted, Brian C. Wright Michael R. Salmon General Manager Chief Financial Officer Page 19 Page 333 of 449 Truckee Donner Public Utility District Organization Chart for 2023 Customers/Community Electric(14,700 customers) Water(13,700 customers) Board of Directors A Elected Officials(5) .......................................� --r........................................ Auditors Legal Counsel General Manager Employee Full Time Equivalents(FTE) 1 FTE 81.0 Total FTE for 2023 Budget District Clerk Electric Information Operations Dist.Clerk,Contracts,Records 4 FTE Technology (including Engineering) (including SCADA and GIS) 25 FTE Human Resources 6 FTE HR,Payroll,Risk Mtgt. 3 FTE Water Administrative Services(CFO) Legislative and Regulatory Operations (Finance,Facilities,Fleet, Affairs,and Public (including Engineering) Cons ervati on,and Customer Service) Information Officer 18 FTE 22 FTE 2 FTE List of Elected and Appointed Officials Elected Officials FY'2022(Term) FY'2023(Term) I Appointed Officials-for both 2022 and 2023 Board President Christa Finn(2022-2026) Jeff Bender(2020-2024) Treasurer Michael R.Salmon Board Vice President Jeff Bender(2020-2024) Tony Laliotis(2022-2026) District Clerk Shanna Kuhlemier Board of Director Tony Laliotis(2022-2026) Christa Finn(2022-2026) I General Manager Brian Wright Board of Director Joe Aguera(2020-2024) Joe Aguera(2020-2024) Board of Director Kim Harris(2020-2024) Kim Harris(2020-2024) Terms for directors run December of starting year through December of even years, four year terms. Page 10 Page 334 of 449 GFOA Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Truckee Donner Public Utility District for its annual comprehensive financial report (ACFR)for the fiscal year ended December 31, 2022. This was the third year that the District has achieved this prestigious award. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report, whose contents conform to program standards. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that this ACFR continues to meet the Certificate of Achievement Program's requirements and are submitting it to GFOA to determine its eligibility for certificate award. G Governtnent Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Truckee Donner Public Utilitv District California y For its Antral Comprehensive Financial Report For the Fiscal Year Ended December 31,2022 P- ;i� Executive Dims«CEO Page 11 Page 335 of 449 FINANCIAL SECTION AMW 215 a The American Public Power Association's Reliable Public Power Provider program recognizes utilities that demonstrate high proficiency in reliability, safety, workforce development, and system improvement. Truckee Donner Public Utility District received the highest level RP3 award designation in March 2021 for three years. "'",B" PUE1�1►�. `"^ rb- :ZPROVICER DIAMOND AWARD RECIPIENT MARCH 2O21 f�, American Public Paw rksociatic., Page 112 Page 336 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED FINANCIAL STATEMENTS Including Report of Independent Auditors December 31, 2023 and 2022 TABLE OF CONTENTS Report of Independent Auditors ..............................................................................................14 Management's Discussion and Analysis....................................................................................17 FinancialStatements.............................................................................................................23 Consolidated Statements of Net Position........................................................................24 Consolidated Statements of Revenues, Expenses and Changes in Net Position.....................26 Consolidated Statements of Cash Flows.........................................................................27 Notes to Financial Statements.................................................................................................29 Required Supplementary Information........................................................................................71 Cost Sharing Defined Benefit Pension Plans...................................................................72 Schedule of Changes in Net OPEB Liability and Related Ratios..........................................74 Supplementary Information.....................................................................................................78 Consolidating Statement of Net Position.........................................................................79 Consolidating Statement of Revenues, Expenses and Changes in Net Position.......................81 Consolidating Statement of Cash Flows...........................................................................83 Page 113 Page 337 of 449 MOSSADAMS Report of Independent Auditors The Board of Directors Truckee Donner Public Utility District Report on the Audit of the Financial Statements Opinion We have audited the consolidated financial statements of Truckee Donner Public Utility District(the -District"),which comprise the consolidated statements of net position as of December 31, 2023 and 2022. and the related consolidated statements of revenues. expenses and changes in net position and cash flows for the years then ended, and the related notes to the consolidated financial statements. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects. the financial position of the District as of December 31, 2023 and 2022, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GARS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of afanagentent for the Financial Statenents Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. and for the design. implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. management is required to evaluate whether there are conditions or events. considered in the aggregate. that raise substantial doubt about the District's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Page J 14 Page 338 of 449 Auditor's Responsibilities for the Audit of the Fitzatzcia!State»ze►zts Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement.whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may involve collusion. forgery, intentional omissions, misrepresentations.or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements. In performing an audit in accordance with GAAS.we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the consolidated financial statements. whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining. on a test basis. evidence regarding the amounts and disclosures in the consolidated financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. but not for the purpose of expressing an opinion on the effectiveness of the District's internal control.Accordingly. no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements. Conclude whether, in our judgment. there are conditions or events,considered in the aggregate, that raise substantial doubt about the District's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding. among other matters, the planned scope and timing of the audit. significant audit findings, and certain internal control-related matters that we identified during the audit. Page 15 Page 339 of 449 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the accompanying management's discussion and analysis, the schedules of proportionate share of net pension liability, schedules of employer contributions, schedules of the District's change in the net OPEB liability and related ratios, schedule of the District's OPEB contributions. and the schedule of investment returns be presented to supplement the basic financial statements. Such information is the responsibility of management and.although not a part of the basic financial statements. is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic. or historical context.We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America. which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The consolidating statements of net position, and the related consolidating statements of revenues,expenses and changes in net position and cash flows as of and for the year ended December 31, 2023 are presented for purposes of additional analysis and are not a required part of the consolidated financial statements . The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion. the information is fairly stated, in all material respects. in relation to the consolidated financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements.or the other information otherwise appears to be materially misstated. If. based on the work performed,we conclude that an uncorrected material misstatement of the other information exists,we are required to describe it in our report. Portland, Oregon May 31. 2024 Page 16 Page 340 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2023 and 2022 As financial management of the Truckee Donner Public Utility District (the District), we offer readers of these financial statements this narrative overview and analysis of the financial activities of the District for the years ended December 31, 2023 and 2022, with additional comparative data for 2021. This discussion and analysis is designed to assist the reader in focusing on the significant financial topics, provide an overview of the District's financial activity and identify changes in the District's financial position. We encourage readers to consider the information presented here in conjunction with that presented within the basic financial statements. The reader should take time to read and evaluate all sections of this report, including the footnotes and other supplementary information that is provided, in addition to this management discussion and analysis. OVERVIEW OF THE FINANCIAL STATEMENTS The financial statements of the District are designed to provide readers with a broad overview of the District's finances similar to a private-sector business. They have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (GAAP). Under this basis of accounting, revenues are recognized in the period in which they are earned and expenses are recognized in the period in which they are incurred, regardless of the timing of related cash flows. These statements offer short-term and long-term financial information about the District's activities. The reporting entity consists of the primary government, which provides two utilities (electric utility and water utility), and the blended component units of two Community Facilities Districts. Further details about the component units are provided in note 1(A)to the financial statements. The basic financial statements, presented on a comparative format for the years ended December 31, 2023 and 2022, consist of: • Consolidated Statement of Net Position; This statement presents information on all of the District's assets, deferred outflows of resources and liabilities, and deferred inflows of resources and provides information about the nature and amounts of investments in resources (assets) and the obligations to District creditors(liabilities). It also provides the basis for computing rate of return, evaluating the capital structure of the District, and assessing the liquidity and financial flexibility of the District. These amounts are as of a point in time, the District's year ending December 31. • Consolidated Statements of Revenues, Expenses, and Changes in Net Position: This statement provides the revenues and expenses for each of the presented years. The statement provides a measurement of the District's operations over the presented years and can be used to determine whether the District has successfully recovered all its costs through its rates and other charges. • Consolidated Statement of Cash Flows: This statement provides relevant information about the District's cash receipts and cash payments during the reporting period. This statement reports cash receipts and cash payments resulting from operating, non-capital financing, capital and related financing, and investing activities. When used with related disclosures and information in the other financial statements, the statement of cash flows is an important indicator of the District's liquidity and financial condition. • Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the basic financial statements. This includes but is not limited to, significant accounting policies, significant financial statement balances and activities, material risks, commitments and obligations, and subsequent events, as applicable. The financial statements report also contains other supplementary information, the independent auditor's opinion letter, and this Management Discussion and Analysis. Page 117 Page 341 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2023 and 2022 CONDENSED COMPARATIVE FINANCIAL INFORMATION Provided below is select condensed financial statements for December 31, 2023, 2022, and 2021. Increase CONSOLIDATED STATEMENT OF NET POSITION 2022 (Decrease) 2023 (Restated) 2021 2023-2022 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current assets $ 64,901,779 $ 69,892,464 $ 45,918,615 $ (4,990,685) Non-current assets: Capital assets,net 148,670,662 137,597,746 132,882,996 11,072,916 Operating investments 3,804,247 3,678,068 3,966,836 126,179 Designated investments 5,579,209 5,389,941 A 5,848,933 189,268 Leases receivable,net of current portion 1,389,598 1,452,595M 1,514,594 (62,997) Other long-term assets - 62,229 124,461 (62,229) Total Assets 224,345,495 218,073,043 190,256,435 6,272,452 Deferred outflows of resources 10,202,960 9,549,869 5,655,327 653,091 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $234,548,455 $227,622,912 $ 195,911,762 $ 6,925,543 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current liabilities 10,190,434 $ 11,063,800,$ 8,931,512 $ (873,366) Non-current Liabilities Long-term debt,net of current portion 61,433,844 64,463,000 44,261,709 (3,029,156) Subscription software liability,net of current portion 239,254 424,453 - (185,199) Net pension liability 18,145,067 16,783,065 7,683,937 1,362,002 OPEB liability 5,969,987 4,389,294 5,273,457 1,580,693 Unearned revenues 5,314,499 5,282,010 5,583,404 32,489 Total Liabilities 101,293,085 102,405,622 71,734,019 (1,112,537) Deferred inflows of resources 2,305,338 3,370,855 9,364,121 (1,065,517) NET POSITION AIN Net investment in capital assets 92,480,232 88,640,941 86,889,607 3,839,291 Restricted for debt seNce 6,129,427 6,676,481 7,248,976 (547,054) Unrestricted 32,340,373 26,529,013 20,675,039 5,811,360 Total Net Position 130,950,032 121,846,435 114,813,622 9,103,597 TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND NET POSITION $234,548,455 $227,622,912 $ 195,911,762 $ 6,925,543 Increase CONSOLIDATED STATEMENTS OF REVENUES,EXPENSES (Decrease) AND CHANGES IN NET POSITION 2023 2022 2021 2023-2022 es to consum $ 50,221,144 $ 46,272,358 $ 41,835,534 $ 3,948,786 Other operating reven 1,789,049 1,755,801 1,664,933 33,248 Total Operating Re 52,010,193 48,028,159 43,500,467 3,982,034 Depreciation and amortizatio 8,004,903 7,712,381 7,917,950 292,522 Purchased power 14,068,454 16,823,869 13,560,417 (2,755,415) All other operating expenses 26,684,735 20,949,335 21,086,918 5,735,400 Total Operating expenses 48,758,092 45,485,585 42,565,285 3,272,507 Operating income 3,252,101 2,542,574 935,182 709,527 Non-operating special tax revenues 3,818,572 3,655,524 3,431,174 163,048 Non-operating interest expense (3,154,114) (2,727,946) (2,369,633) (426,168) Non-operating other revenfes 54,232 1,774,870 131,863 (1,720,638) Non-operating other expenses 2,764,444 (1,434,081) (302,544) 4,198,525 Income before capital contributions 6,735,235 3,810,941 1,826,042 2,924,294 Capital contributions,net 2,368,362 3,221,872 6,351,674 (853,510) Change in net position 9,103,597 7,032,813 8,177,716 2,070,784 Net Position,Beginning of Year 121,846,435 114,813,622 106,635,906 7,032,813 NET POSITION,END OF YEAR $130,950,032 $121,846,435 $ 114,813,622 $ 9,103,597 Page 18 Page 342 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2023 and 2022 ANALYSIS OF OVERALL FINANCIAL POSITION AND RESULTS OF OPERATIONS 2023 as compared to 2022: The District's overall financial position improved in 2023 by $9.1 million or 7.5% as measured by total net position. In 2023, the total net position increased $3.3 million from operating activities, $3.5 million from non-operating activities, and $2.3 million from capital, debt and monetary contribution activities. Operating income in 2023 of$3.3 million increased $0.7 million or 28% compared to $2.5 million in 2022. The components of operating income summarize as follows. Total operating revenues in 2023 of $52.0 million were $4.0 million or 8.3% greater than 2022, driven primarily by electric and water effective rate increases for 2023 of 6.5% and 8.0%, respectively. Total operating expenses in 2023 of$48.8 million were $3.3 million or 7.2% greater than 2022. The variance of can be summarized as follows: • $2.9 million or 6%change in pension and other post-employment benefits liability valuation impact between years • ($2.8) million or-16% decrease in purchase power costs (less price volatility in 2023) • $2.4 million or 5% increase for inflation and rate of pay increases at 5% • $0.8 million or 2% increase in wildfire defensible space($491 k)and asphalt repairs($307k) Non-operating revenues and expenses, net revenues in 2023 of $3.5 million were $2.2 million or 175% above 2022 due primarily to $3.5 million increase in investment income driven primarily by the increase in market yields for 2023, partially offset no disaster relief funds received in 2023($1.2 million in 2022). Capital and other contributions of$2.3 million were down 26%compared to 2022,driven by a decline in construction activity and related project contributions to the District. The resulting change in Total Net Position in 2023 of$9.1 million was $2.1 million or 29% higher than the change in 2022. Year-end 2023 current assets of$64.9 million decreased $5.0 million or 7% primarily due to capital expenditures. Year-end 2023 total assets of$224.3 million increased $6.3 million or 3%, which includes an $11.1 million or 8% increase in net total capital assets. Year-end 2023 total liabilities of$101.3 million decreased$1.1 million or 1%primarily driven by a$3.0 million decrease in long-term debt(discussed further below), a $1.5 million increase in OPEB liability, a $1.4 million increase in net pension liability, and a$1.3 million decrease in accounts payable. Deferred inflows decreased$1.1 million and deferred outflows increased $0.7 million, both changes driven by pension deferred inflow and outflow changes. 2022 as compared to 2021: The District's overall financial position improved in 2022 by $7.0 million or 6.1% as measured by total net position. In 2022, the total net position increased $2.5 million from operating activities, $1.3 million from non-operating activities, and $3.2 million from capital, debt and monetary contribution activities. Operating income in 2022 of$2.5 million increased $1.6 million or 172% compared to$0.9 million in 2021. The components of operating income summarize as follows. Total operating revenues in 2022 of $48.0 million were $4.5 million or 10.4% greater than 2021, driven primarily by electric and water effective rate increases for 2022 of 8.8% and 8.0%, respectively. Total operating expenses in 2022 of$45.5 million were $2.9 million or 6.9% greater than 2021, with the increase primarily driven by purchased power costs increase of $3.3 million. Demand or volume represents 2% of the power costs increase and the cost of wholesale power represents 98% of the increase driven most notably by natural gas (energy supply to electricity plants) price volatility. Page 119 Page 343 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2023 and 2022 Non-operating revenues and expenses, net revenues in 2022 of$1.3 million were$0.4 million or 42%above 2021 due primarily to$1.2 million in 2021 storm disaster financial aid from State of California funds received in 2022. Capital and other contributions of $3.2 million were down 49% compared to 2021, driven by a decline in construction activity and related project contributions to the District. The resulting change in Total Net Position in 2022 of$7.0 million was $1.1 million or 14% lower than the change in 2021. Year-end 2022 current assets of $69.9 million increased $24.0 million or 52% primarily due to $22.4 million of cash funds in new debt issuance proceeds. Year-end 2022 total assets of$218.1 million increased $27.8 million or 15%, which includes a $4.7 million increase in net total capital assets. Year-end 2022 total liabilities of$102.4 million increased $30.7 million or 43% primarily driven by a $20.2 million increase in long-term debt (discussed further below) and a $9.1 million increase in net pension liability. Deferred inflows decreased$6.0 million and deferred outflows increased$3.9 million, both changes driven primarily by pension deferred inflow and outflow changes. ANALYSIS OF ELECTRIC UTILITY Electric total net position as of December 31, 2023 was $83.9 million and increased $5.5 million or 7% compared to December 31, 2022. Electric's total net position increased $2.9 million from operating activities, increased $1.1 million from non-operating activities, and increased $1.5 million from capital, debt and monetary contributions. Key components of this$5.5 million change in total net position are as follows. Electric operating income of$2.9 million increased $2.5 million or 456% compared to $0.5 million in 2022. The components of operating income summarize as follows. Electric operating revenues of $36.0 million increased $2.8 million or 9% in 2023 compared to 2022. Electric's sales to customers increased 9% over 2022; comprised of a 7% effective rate increase, 1% customer growth, and 1% demand growth. Other Electric operating revenues were up 7% due primarily to rate increases to various ancillary billings. Electric operating expenses of$33.1 million compared to 2022 reflect an increase of $0.5 million or 1.5% driven primarily by inflation and rate of pay increases at 5% totaling $0.6 million, increased wildfire defensible space costs of $0.5 million, increase in various items totaling $0.5 million (including new Integrated Resource Plan for $158k), an increase of $1.7 million in pension and OPEB actuarially determined liability(driven primarily by discount rate change). The increases noted in prior sentence significantly offset by decreased purchased power costs of $2.8 million due to unusually high market costs in 2022 and January 2023 that generally stabilized after January 2023. Electric non-operating revenues (expenses) net of$1.1 million increased $0.8 million or 322% compared to $0.3 million in 2022. The increase is driven primarily by a $1.9 million increase in investment income driven by market interest rates and a decrease of$1.3 million in financial aid received in 2022. Electric contributions of$1.5 million increased $0.1 million or 8% compared to $1.4 million in 2022. The increase is driven primarily by timing of construction activity and related project's contributions to the District. Electric has no significant restrictions, commitments, or other limitations that would affect the availability of resources for future use; other than$6.7 million in restricted unspent long-term debt proceeds funds and $0.9 million in other restricted funds. ANALYSIS OF WATER UTILITY Water total net position as of December 31, 2023 was $70.2 million and increased $1.4 million or 2% compared to December 31, 2022. Water's total net position increased $0.4 million from operating activities, increased $0.1 million from non-operating activities, and increased $0.9 million from capital, debt and monetary contributions. Key components of this $1.4 million change in total net position are as follows. Water operating income of$0.4 million decreased $1.6 million or 81% compared to $2.0 million in 2022. The components of operating income summarize as follows. Page 120 Page 344 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2023 and 2022 Water operating revenues in 2023 of$18.0 million increased $1.3 million or 8%compared to 2022. Water's sales to customers increased 8% to 2022; comprised of an 8% average rate increase and <1% customer growth. Water gallons billed in 2023 decreased 8% compared to 2022 due primarily to the above average precipitation in winter 22/23 impacts on summer 2023 water usage: with nominal impact on revenues (nor costs). Other water operating revenues were flat year to year. Water operating expenses in 2023 of$17.6 million increased $3.0 million or 20%to 2022 driven primarily by$1.1 million increase in pension and OPEB actuarially determined liability (driven primarily by discount rate change), $0.8 million increase due to inflation and rate of pay increases at 5%, and $1.1 million increase due to various items including asphalt repairs ($307k)and depreciation expense ($287k). Water non-operating revenues (expenses) net of$0.1 million increased $1.0 million or 322% compared to ($0.9) million in 2022. Notable variances to prior year include $1.4 million increase in investment income due to market yields increase and a $0.3 million increase in interest expense. Water contributions of$0.9 million decreased $1.0 million or 53% compared to $1.9 million in 2022. The decrease is driven by timing of construction activity and related project's contributions to the District. Water has no significant restrictions, commitments, or other limitations that would affect the availability of resources for future use; other than $1.0 million in restricted unspent long-term debt proceeds funds and $2.5 million in other restricted funds. CAPITAL ASSETS As of December 31, 2023, 2022, and 2021, the District had $148.7 million, $137.6 million, and $132.9 million, respectively, invested in a variety of capital assets, net of accumulated depreciation. The District's capital assets, net of accumulated depreciation, increased $11.1 million or 8% in 2023. In 2023, capital expenditures of $18.7 million outpaced depreciation expense of $8.0 million, with the year focused on capital execution of major projects(water utility primarily) in 2023, in accordance with the approved 10-year capital improvement plans for both electric and water utilities. In 2022, capital expenditures of$11.0 million outpaced depreciation expense of$7.7 million, with the year focused on execution of capital improvements plan (water utility primarily) and planning of certain projects. Electric utility capital expenditures in 2023 of $5.1 million included $1.4 million in distribution system modernization replacements, $0.9 million in new UG pipeline project cost-share with water utility, $0.7 million in system hardening, and $2.1 million in various other projects. Electric utility capital expenditures in 2022 of $2.7 million included $1.0 million in pole replacements, $0.9 million in distribution system modernization replacements, $0.5 million in system hardening, and $0.3 million in various other projects. Electric depreciation expense in 2023 of$3.5 million increased $0.2 million or 6% compared to 2022. Water utility capital expenditures in 2023 of $13.6 million included $5.6 million in new pipeline and pump station, $4.0 million of pipeline replacement, $2.4 million for new tank, $0.8 million in well and tank rehabilitations, and $0.8 million in various other projects. Water utility capital expenditures in 2022 of$8.3 million included $2.2 million of pipeline replacement, $1.2 million in new pipeline and pump station, $1.1 million for new tank, $1.1 million in tanks rehabilitation, $0.5 million in SCADA upgrades, and $2.2 million in various other projects. Water depreciation expense in 2023 of$5.0 million increased $0.3 million or 6% compared to 2022. See Note 4 to the Financial Statements for further information regarding capital assets. LONG-TERM DEBT Long-term debt includes revenue bonds and installment loans.At December 31, 2023, 2022, and 2021, the District had $64.3 million, $67.2 million, and $47.0 million, respectively, in long-term debt outstanding. In 2022, the District issued new electric and water debt with net project proceeds (for capital improvements) of$6.5 million and $15.9 million respectively. No new debt was issued in 2023 or 2021. See Note 6 to the Financial Statements for further information regarding long-term debt. Page 121 Page 345 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2023 and 2022 ECONOMIC FACTORS AND NEXT YEARS BUDGETS AND RATES The District operates on a biennial budget cycle. The FY24 & FY25 Board approved budget includes an assumption for customer growth 0.5% per year, conservatively below recent 1% average for the District. Revenue projections for fiscal years 2024 and 2025 include average rate increases for Electric of 12% and 12% respectively and for Water 8% and 7% respectively. For 2024 and 2025, approved average rate increases are consistent with these budget expectations. Rates by rate class can be found on the District's website at www.tdpud.org. Expenditures for Electric and Water excluding debt service, for Budget year 2024 increased over Budget year 2023 by 13% and 12%, respectively; primarily due to estimated inflation impacts. CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT The financial report is designed to provide readers with a general overview of the District's finances and to demonstrate the District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact: Truckee Donner Public Utility District, Attn: Treasurer, 11570 Donner Pass Road, Truckee, CA 96161. Page 122 Page 346 of 449 FINANCIAL STATEMENTS Page 347 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF NET POSITION December 31, 2023 and 2022 ASSETS AND DEFERRED 2022 OUTFLOWS OF RESOURCES 2023 (Restated) CURRENT ASSETS Cash and cash equivalents Operating $ 12,274,252 $ 10,019,255 Designated 17,503,851 16,664,262 Restricted 13,170,687 24,620,177 Total cash and cash equivalents 42,948,790 51,303,694 Accounts receivable, net 3,955,770 3,489,204 Unbilled revenues 4,985,487 3,752,196 Special assessments receivable 9,043,613 8,376,288 Accrued interest receivable 291,527 202,649 Current portion of leases receivable 39,261 34,423 Materials and supplies 2,163,677 1,670,319 Prepaid expenses 1,333,239 930,044 Other 140,415 133,647 Total Current Assets 64,901,779 69,892,464 NON-CURRENT ASSETS Operating investments 3,804,247 3,678,068 Designated in\jestments 5,579,209 5,389,941 Broadband maintenance prepaid - 62,229 Leases receivable, net of current portion 1,389,598 1,452,595 Capital Assets Utility plant 248,726,903 234,016,148 Accumulated depreciation and amortization (106,687,507) (100,023,290) Construction work in progress 6,631,266 3,604,888 Total Capital Assets 148,670,662 137,597,746 Total Non-Current Assets 159,443,716 148,180,579 TOTAL ASSETS 224,345,495 218,073,043 DEFERRED OUTFLOWS OF RESOURCES Pension 6,753,446 6,963,293 OPEB 3,069,548 2,173,808 Unamortized loss on refunding 379,966 412,768 Total Deferred Outflows of Resources 10,202,960 9,549,869 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 234,548,455 $ 227,622,912 The accompanying notes are an integral part of these consolidated financial statements. Page 124 Page 348 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF NET POSITION December 31, 2023 and 2022 LIABILITIES, DEFERRED INFLOWS OF 2022 RESOURCES AND NET POSITION (Continued) 2023 (Restated) CURRENT LIABILITIES Other Liabilities Accounts payable $ 4,265,707 $ 5,612,334 Customer deposits 453,588 252,694 Subscription software liability, current portion 185,199 203,147 Other 1,651,647 1,528,802 Total Other Liabilities 6,556,141 7,596,977 Current Liabilities Payable From Restricted Assets Current portion of long-term debt 2,905,300 2,703,200 Accrued interest payable 728,993 763,623 Total Current Liabilities Payable from Restricted Assets 3,634,293 3,466,823 Total Current Liabilities 10,190,434 11,063,800 NON-CURRENT LIABILITIES Long-term debt, net of discounts and premiums 61,433,844 64,463,000 Subscription software liability, net of current portion 239,254 424,453 Net pension liability 18,145,067 16,783,065 Net OPEB liability 5,969,987 4,389,294 Unearned revenues 5,314,499 5,282,010 Total Non-Current Liabilities 91,102,651 91,341,822 Total Liabilities 101,293,085 102,405,622 DEFERRED INFLOWS OF RESOURCES Pension 538,069 986,199 O P E B 482,931 1,002,315 Leases receivable 1,284,338 1,382,341 Total Deferred Inflows of Resources 2,305,338 3,370,855 NET POSITION Net investment in capital assets 92,480,232 88,640,941 Restricted for debt service 6,129,427 6,676,481 Unrestricted 32,340,373 26,529,013 Total Net Position 130,950,032 121,846,435 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION $ 234,548,455 $ 227,622,912 The accompanying notes are an integral part of these consolidated financial statements. Page 125 Page 349 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the years ended December 31, 2023 and 2022 2023 2022 OPERATING REVENUES Sales to customers $ 50,221,144 $ 46,272,358 Standby fees 116,041 122,811 Cap and trade proceeds 401,879 514,604 Other 1,271,129 1,118,386 Total Operating Revenues 52,010,193 48,028,159 OPERATING EXPENSES Purchased power 14,068,454 16,823,869 Operations and maintenance 15,596,569 12,037,231 Consumer services 2,751,310 2,370,280 Administration and general 8,336,856 6,541,824 Depreciation and amortization 8,004,903 7,712,381 Total Operating Expenses 48,758,092 45,485,585 Operating Income 3,252,101 2,542,574 NON-OPERATING REVENUE(EXPENSES) Special tax revenue 3,818,572 3,655,524 Investment income (loss) 2,728,794 (747,522) Interest expense (3,154,114) (2,727,946) Amortization credit 46,053 3,901 Other non-operating revenues 23,967 1,726,783 Other non-operating expenses (10,403) (690,460) Gain on disposition of assets 30,265 48,087 Total Non-Operating Revenue 3,483,134 1,268,367 Income Before Contributions 6,735,235 3,810,941 CAPITAL &OTHER CONTRIBUTIONS 2,368,362 3,221,872 CHANGE IN NET POSITION 9,103,597 7,032,813 Net Position - Beginning of Year 121,846,435 114,813,622 NET POSITION - END OF YEAR $ 130,950,032 $121,846,435 The accompanying notes are an integral part of these consolidated financial statements. Page 26 Page 350 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2023 and 2022 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES Received from customers $ 50,472,878 $ 47,915,665 Paid to suppliers for goods and services (30,927,961) (29,964,615) Paid to employees for services (10,146,823) (9,293,838) Net cash provided by operating activities 9,398,094 8,657,212 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Federal and state financial assistance received - 1,694,828 Federal and state financial assistance distributed to customers - (192,196) Principal payments on long-term debt - (551,751) Interest payments on long-term debt - (6,657) Net cash provided by noncapital financing activities - 944,224 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital expenditures for utility plant (18,738,378) (10,977,073) Net proceeds from disposal of assets 30,265 25,025 Capital contributions, connection and facility fees 1,531,255 1,649,786 Special assessments receipts 3,408 2,399 Special tax receipts 3,224,680 3,171,904 Principal payments on subscription liability (203,148) - Interest payments on subscription liability (8,667) - Proceeds from issuance of new debt - 22,456,685 Principal payments on long-term debt (2,832,260) (2,191,518) Interest payments on long-term debt (3,077,853) (2,573,491) Net cash provided (used)by capital and related financing activities (20,070,698) 11,563,717 CASH FLOWS FROM INVESTING ACTIVITIES Interest income received 1,783,321 535,666 Net cash provided by investing activities 1,783,321 535,666 Net increase (decrease) in cash and cash equivalents (8,889,283) 21,700,819 CASH AND CASH EQUIVALENTS —Beginning of Year 52,050,274 30,349,455 CASH AND CASH EQUIVALENTS —END OF YEAR $ 43,160,991 $ 52,050,274 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Developer and customer added capital assets $ 806,319 $ 1,088,519 Recognition of prior period unearned revenues $ 3,491,105 $ 4,032,073 The accompanying notes are an integral part of these consolidated financial statements. Page 27 Page 351 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2023 and 2022 (continued) 2023 2022 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income $ 3,252,101 $ 2,542,574 Non-cash items included in operating income Depreciation and amortization 8,004,900 7,712,381 Depreciation charged to other accounts 466,878 289,124 Changes in assets and liabilities Accounts receivable (1,699,857) (1,459,216) Materials and supplies (493,358) (664,886) Prepaid expenses (403,195) (37,990) Accounts payable (1,346,628) 1,982,515 Customer deposits 202,387 (56,377) Deferred pension contributions 1,289,288 (1,564,911) Deferred inflow, leases amortization (98,003) (154,364) Leases receivable 58,160 49,686 Other current liabilites 165,421 18,676 NET CASH PROVIDED BY OPERATING ACTIVITES $ 9,398,094 $ 8,657,212 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE BALANCE SHEET Operating $ 12,274,252 $ 10,019,255 Designated 17,503,851 16,664,262 Restricted funds -current 13,170,687 24,620,177 Operating Investments - non-current 3,804,247 3,678,068 Designated Investments - non-current 5,579,209 5,389,941 Total Cash and Investments 52,332,246 60,371,703 Less: Long-term investments (9,383,456) (9,068,009) Mark to market adjustments 212,201 746,580 TOTAL CASH AND CASH EQUIVALENTS $ 43,160,991 $ 52,050,274 The accompanying notes are an integral part of these consolidated financial statements. Page 28 Page 352 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. ORGANIZATION The Truckee Donner Public Utility District (the District) was formed and operates under the State of California Public Utility District Act. The District is governed by a board of directors which consists of five elected members. The District provides electric and water service to portions of Nevada and Placer Counties described as Truckee. The electric and water service operations are separately maintained and operated. These financial statements reflect the combined electric and water operations of the District. All significant transactions between electric and water operations have been eliminated. These eliminations include power purchases and rent for shared facilities. The District's blended component units consist of organizations whose respective governing boards are comprised entirely of the members of the District's Board of Directors and management of the primary government has operational responsibility for each of the component units. These organizations are reported as if they are a part of the District's operations. The entities are legally separate, however, in the case of the Truckee Donner Public Utility District Financing Corporation,financial support has been pledged and financial and operational policies may be significantly influenced by the District. The following is a description of the District's blended component units: Truckee Donner Public Utility District Financing Corporation is a legal entity that was created to issue and administer Certificates of Participation on behalf of the District. (See note 6). Truckee Donner Public Utility District Community Facilities District No. 03-1 (Old Greenwood) is a legal entity created to issue special tax bonds to finance various public improvements needed to develop property located within Old Greenwood. (See note 9). Truckee Donner Public Utility District Community Facilities District No. 04-1 (Gray's Crossing) is a legal entity created to issue special tax bonds to finance various public improvements needed to develop property located within Gray's Crossing. (See note 9). Separate standalone financial statements are not available for the blended component units described above. Unless noted, disclosures relating to the component units are the same as for the District. B. ACCOUNTING POLICIES The financial statements of the District have been prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets and liabilities, that are a result of exchange and exchange like transactions, are recognized when the exchange takes place. Page 129 Page 353 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. USE OF ESTIMATES Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. D. CASH AND CASH EQUIVALENTS For the purpose of the accompanying statement of cash flows, the District considers all highly liquid instruments with original maturities of three months or less when purchased to be cash equivalents. E. INVESTMENTS The District pools cash and investments. The District's investment policy allows for investments in instruments permitted by the California Government Code and/or the investments permitted by the trust agreements on District financing. The District's investment policy contains provisions intended to limit the District's exposure to interest rate risk, credit risk, and concentration of credit risk. Investment income from pooled investments is allocated to all funds in the pool. Interest is allocated on the basis of month end cash amounts for each fund as a percentage of the total balance. The District categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset's fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The District does not have any investments that are measured using Level 3 inputs. Changes in fair value that occur during a fiscal year are recognized as investment income (loss) reported for that fiscal year. Investment Income (loss) includes interest earnings, changes in fair value, and any realized gains or losses upon the sale of investments. F. DESIGNATED ASSETS The board has designated certain resources for future capital projects, replacements, and operational needs. G. RESTRICTED ASSETS Restricted assets are assets restricted by the covenants of long-term financial arrangements or other third party legal restrictions. Restricted assets are used in accordance with their requirements and where both restricted and unrestricted resources are available for use, restricted resources are used first and then unrestricted as they are needed. Page 130 Page 354 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. ACCOUNTS RECEIVABLE AND ALLOWANCES FOR DOUBTFUL ACCOUNTS Accounts receivable are recorded at the invoiced amount and are reported net of allowances for doubtful accounts of$39,200 and $62,800 for 2023 and 2022, respectively. Receivables are considered past due after 30 days and routine collection efforts begin, while remaining consistent with regulatory mandates. District Code allows for the Treasurer to write off delinquent account balances up to 0.17% of the amounts billed. This write off process occurs semi-annually. I. MATERIALS AND SUPPLIES Materials and supplies are recorded at average cost. J. DEBT PREMIUM, BOND ISSUANCE COSTS,AND DISCOUNTS Original issue and reacquired bond premiums and discounts relating to revenue bonds are amortized over the terms of the respective bond issues using the effective interest method. Debt issuance costs are expensed in the period incurred. K. SPECIAL ASSESSMENT RECEIVABLE Special assessment receivable represents special tax receivables related to community facilities districts (see notes 1T and note 9) and amounts due from property owners within the Donner Lake Assessment District for improvements made by the District pursuant to an agreement with the property owners to improve their water quality as discussed in notes 9 and 10. L. AMORTIZED EXPENSES In 2003, the District entered into a broadband dark fiber maintenance agreement with Sierra Pacific Communications (SPC) which is included in the line item "Broadband Maintenance Prepaid" in the accompanying Statement of Net Position. SPC subsequently assigned the agreement to AT&T. The agreement is expected to provide benefit to the District over the estimated 20-year life of the agreement. (See note 3). M. CAPITAL ASSETS Capital assets are generally defined by the District as assets with an initial, individual cost of more than $10,000 and an estimated useful life of at least two years. Capital assets of the District are stated at the lower of cost or the acquisition value at the time of contribution to the District. Major outlays for plant are capitalized as projects are constructed. Depreciation on capital assets is calculated using the straight-line method over the estimated useful lives of the assets, which are as follows: Distribution Plant Electric 23—35 years Water 15—40 years Computer software and hardware 3— 7 years Building and improvements 20—33 years Equipment and furniture 4— 10 years Page 131 Page 355 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. COMPENSATED ABSENCES Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only benefits considered to be vested are disclosed in these statements. Vested vacation and sick leave pay is accrued when earned in the financial statements.The liability is liquidated from general operating revenues of the utility. O. REVENUE RECOGNITION Unbilled revenues, representing estimated consumer usage for the period between the last meter reading and the end of the period, are accrued in the period of consumption. Water customers without meters are billed on a flat-rate basis, and revenues are recorded as billed. Revenues from connection fees are recognized upon completion of the connection. Income that the District has earned through investing its excess cash is reflected within income from investments when earned. P. REVENUE AND EXPENSE CLASSIFICATION The District distinguishes operating revenues and expenses from non-operating items in the preparation of its financial statements. Operating revenues and expenses generally result from providing electric and water services in connection with the District's principal ongoing operations. The principal operating revenues are sales to customers. The District's operating expenses include power purchases, labor, materials, services, and other expenses related to the delivery of electric and water services. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses, or capital contributions and other. Q. POWER PURCHASES AND TRANSMISSION In 1999,the District entered into an agreement with Sierra Pacific Power Company dba NV Energy(SPPC), whereby SPPC will provide transmission services to the District through December 31, 2027. The District uses this transmission service to import energy over SPPC's transmission system to serve District load. In addition, the District purchases scheduling services from Utah Municipal Power Systems (UAMPS)and the scheduling services are included in the monthly power billings from UAMPS. The purchase of transmission services from SPPC represented 7.6% and 7.9% of total purchased power costs in 2023 and 2022, respectively. In December of 2005, the District entered into an agreement with UAMPS. Subsequently, the District entered into several pooling appendices for power capacity and energy that relate to various time periods from January 2008 through March 2028. Also in 2009, the District signed an agreement with UAMPS for approximately 5 MW of the Nebo natural gas generation plant capacity. In August 2012, the Horse Butte Wind project began commercial operation and the District owns approximately 15 MW of nameplate capacity that generates about 5 MW on average. The District has also invested in the Veyo Heat Recovery project that came on line in mid-2016. The District receives about 1.7 MW of carbon-free generation from this resource. In September 2019 the District entered into 25-year Purchase Power Agreement with UAMPS for a 6MW share of the Red Mesa Solar Project. The Project was developed by UAMPS and the Navajo Tribal Utility Authority for use by UAMPS members and began providing power in April 2023. The Red Mesa Solar Project price for energy is among the lowest wholesale price paid by the District for any resource. It is estimated that a 6MW share equates to about 10 percent of total annual District energy requirements. Page 132 Page 356 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Q. POWER PURCHASES AND TRANSMISSION(CONTINUED) In August of 2007, the District entered into an agreement with Western Area Power Administration (WAPA) for the delivery of Stampede Dam Hydroelectric generation. In accordance with this agreement,the District is entitled to a portion of the power generated by Stampede Dam. This generation is dependent upon the amount of water that is made available to the generator. This agreement is effective through 2024. In 2023 and 2022, the UAMPS contract, along with its appendices, and the WAPA contract for Stampede Dam Hydroelectric generation comprised the majority of a diversified power portfolio that balanced risk and costs for the District. R. CAP AND TRADE PROGRAM PROCEEDS California Assembly Bill 32 (AB32) is an effort by the State of California to set a 2020 greenhouse gas (GHG) emissions reduction goal into law. AB32 requires California to lower greenhouse gas emissions to 1990 levels by 2020.Central to this initiative is the implementation of a cap and trade program,which covers major sources of GHG emissions in the State including power plants. The California Cap and Trade Program is designed to achieve cost-effective emissions reductions across the capped sectors. The program sets maximum statewide GHG emissions for all covered sectors each year ("cap"), and allows covered entities to sell off allowances ("trade"). An allowance is a tradable permit that allows the emission of one metric ton of CO2. The California carbon price is driven by allowance trading. The District is subject to AB32 and has excess allowances due to reducing carbon-based generation in its power portfolio. In 2023 and 2022, the District sold its excess allowances in the program auctions and the proceeds were recorded as$401,879 and $514,604 operating revenue for the respective years. The auction proceeds are held in a restricted fund and are used to purchase qualified renewable power. (See note 2) S. INCOME TAXES As a government agency, the District is exempt from payment of federal and state income taxes. T. TAX REVENUES Beginning in 2004, the District levied ad valorem property tax on all the taxable property within the Old Greenwood District in an amount sufficient to pay the yearly principal and interest on the Special Assessment District Tax Bonds. (See notes 6 and 9). The District had revenues of$838,125 in 2023 and $818,991 in 2022. On January 28, 2014, refunding bonds were sold to a private investment firm and the proceeds were used to call the 2003 Old Greenwood bonds on March 1, 2014. The 2014 refunding bonds have the same rate and method of apportionment conditions on the Old Greenwood properties as the original 2003 bonds. Beginning in 2005, the District levied ad valorem property tax on all taxable property within the Gray's Crossing District in an amount sufficient to pay the yearly principal and interest on the Special Assessment District Tax Bonds. (See notes 6 and 9). The District had revenues of$2,980,447 in 2023 and $2,836,533 in 2022. Taxes are assessed based on the county tax year ending June 30, resulting in unearned revenues for each of the community facility districts. (See note 8). Page 133 Page 357 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) U. CONTRIBUTED CAPITAL ASSETS A portion of the District's capital assets have been obtained through amounts charged to developers for plant constructed by the District; direct contributions of capital assets from developers and other parties; as well as assessments of local property owners. These items are recognized within capital assets as construction is completed for plant constructed by the District based on the cost of the items,when received for contributed capital assets based on the actual or estimated fair value of the contributed items, or upon completion of the related project for development agreements.The District records amounts received within capital contributions when a legally enforceable claim is established. Until the District meets the criteria to record the amounts described above as capital contributions, any amounts received are recorded within unearned revenues on the Statement of Net Position. V. LEASES The District, as a lessee, recognizes a lease liability and an intangible right-to-use asset at the commencement of a lease, unless the lease is considered a short-term or transfers ownership of the underlying assets. Right-to-use lease assets are measured based on the net present value of the payments to be made over the term of the agreement, using District's incremental borrowing rate. Re-measurement of the lease liability occurs when there is a change in the lease term and/or other changes that are likely to have a significant impact on the lease liability. The incremental borrowing rate used in determining the present value of lease payments is based on U.S. Treasury rates, corresponding to the same term of lease contracts plus basis points (BSP), determined by the District's historical borrowing spread and similar entities in the utility industry. Amortization of the discount on the lease liability is reported as an outflow of resources. Payments are allocated first to the accrued interest liability and then to the lease liability. Variable lease payments based on the usage of the underlying assets are not included in the lease liability calculations and are recognized as outflows of resources in the periods in which the obligation for the payments is incurred. The District, as a lessor, recognizes a lease receivable and deferred inflows of resources at the commencement of the lease term. The lease receivable is measured using the present value of the lease payments expected to be received for the lease term, based on District's incremental borrowing rate, which approximates the discount rate the District charges the lessee. Leases with provisions for rent changes based on the consumer price index (CPI) or other market indexes, result in additional variable lease revenues that are not included in the measurement of the lease receivables. Deferred inflows of resources are measured at the value of the lease receivable in addition to any payments received at or before the commencement of the lease term related to future periods. Amortization of the discount on the lease receivable is reported as interest revenue for that period. Deferred inflows of resources are recognized as lease revenue on a straight-line basis over the term of the lease. Any initial direct costs are reported as an outflow of resources for that period. Re-measurement of lease receivable occurs when there are modifications, including but not limited to changes in the lease charges, lease term, and adding or removing an underlying asset to the lease agreements. In the case of partial or full lease termination, the District will reduce the carrying value of the lease receivable and the related deferred inflow of resources and include a gain or loss for the difference. Page 134 Page 358 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) V. LEASES(CONTINUED) Short-term leases are certain leases that, at the commencement of the lease term, have a maximum possible term under the lease contract of 12 months or less, including any options to extend, regardless of their probability of being exercised. Leases assessed by management as short-term, perpetual, or insignificant are recognized as outflows of resources (expenses) or inflows of resources (revenue) based on the payment provisions of the lease agreement. W. SUBSCRIPTION-BASED INFORMATION TECHNOLOGYARRANGEMENTS(SBITA) A SBITA is defined as a contractual agreement that conveys control of the right to use another party's (a SBITA vendor's) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a minimum contractual period of greater than one year, in an exchange or exchange-like transaction. The District uses various SBITA assets, such as software as a service. The related obligations are presented in amounts equal to the present value of subscription payments, payable during the remaining SBITA term. SBITA assets are reported with capital assets (see note 4) and SBITA liabilities are reported with liabilities on the statement of net position (see note 7). X. OTHER—PENSION SIDEFUND As a result of implementing GASB Statement No. 68, the pension side-fund payoff that occurred in 2011 and which had been reported in the financial statements as an asset was written off due to the District's participation in CaIPERS cost-sharing multi-employer retirement benefit plan. However, the liability for the payoff remained until paid in full in 2022. The intercompany fund transfers for the principal portion of the debt service between the electric and water utility is included as "other." Y. PENSION For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions,and pension expense, information about the fiduciary net position of the District's California Public Employee's Retirement System (CaIPERS) plans (Plans) and the additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Z. DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES Deferred Outflows of Resources: This separate financial statement element represents consumption of net assets that applies to future periods and so will not be recognized until that time. Deferred Inflows of Resources: This separate financial statement element represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources until that time. Page 135 Page 359 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) AA. UNAMORTIZED LOSS ON BOND REFUNDING For current and advanced refunding results in defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt (gain or loss) is deferred and amortized as a component of interest expense over the remaining life of the old debt or the new debt, whichever is shorter. These amounts are reported as deferred outflow on the statements of net position. BB. COMPARATIVE INFORMATION Comparative data for the prior year has been presented in certain sections of the accompanying financial statements in order to provide an understanding of changes in the District's financial position and operations. Certain amounts presented in the prior year have been reclassified to be consistent with the current year's presentation. CC.RECENT ACCOUNTING PRONOUNCEMENTS IMPLEMENTED BY THE DISTRICT GASB Statement No.94, "Public-Private and Public-Public Partnerships and Availability Payment Arrangements." The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). The requirements of this Statement are effective for fiscal years beginning after June 30, 2023, and all reporting periods thereafter. This statement is effective for the District fiscal year ending December 31, 2023. The District has implemented this statement and determined that this pronouncement has no changes in financial reporting of the District. GASB Statement No.96, "Subscription-Based Information Technology Arrangements." The purpose of this Statement is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs)for government end users (governments). The requirements of this Statement are effective for fiscal years beginning after June 30, 2023, and all reporting periods thereafter. This statement is effective for the District fiscal year ending December 31, 2023. The District has implemented this statement. See Notes 7 and 17 for the impact on the financial statements. GASB Statement No.91, "Conduit Debt Obligations." The objective of this statement is to better meet the information needs of the financial statement users by enhancing the comparability and consistency of the conduit debt obligation reporting and reporting of related transactions and other events by state and local government issuers. This Statement also is intended to improve the relevance, reliability, and understandability of information about conduit debt obligations, as well as related transactions and events. The requirements of this Statement will take effect for financial statements with the fiscal year that ends on or after December 31, 2022. The District has determined that this pronouncement has no changes in financial reporting of the District. Page 136 Page 360 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 1 —ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) CC.RECENT ACCOUNTING PRONOUNCEMENTS IMPLEMENTED BY THE DISTRICT(CONTINUED) GASB Statement No.99, "Omnibus 2022."The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for guarantees. The requirements of this statement related to leases, PPPs and SBITAs are effective ethe the District's fiscal year ending December 31, 2023 and the requirements related to financial guarantees and the classification and reporting of derivative instrument within the scope of Statement 53 are effective for the District's fiscal year ending December 31, 2024, with earlier adoption encouraged. The District has implemented this statement and determined that this pronouncement has no changes in financial reporting of the District. DD.ACCOUNTING PRONOUNCEMENTS TO BE IMPLEMENTED IN UPCOMING YEARS These statements are not effective until January 1, 2024 or later and may be applicable for the District. The District has not determined what impact, if any, this pronouncement will have on the financial statements. GASB Statement No. 100, Accounting Changes and Error Corrections - An Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter. GASB Statement No. 101, Compensated Absences. The primary objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences by aligning the recognition and measurement guidance under a unified model and amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. GASB Statement No. 102, Certain Risk Disclosures. The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints.The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. Page 137 Page 361 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS Cash, cash equivalents and investments are recorded in accounts as either restricted or unrestricted as required by the District's certificates of participation indentures or other third-party legal restrictions. Restricted assets represent funds that are restricted by certificates of participation covenants or third-party contractual agreements. Assets that are allocated by resolution of the Board of Directors are considered to be Board designated assets. Board designated assets are a component of unrestricted assets as their use may be redirected at any time by approval of the Board. Upon Board approval, assets from board designated accounts may be used to pay for selected capital projects.Such accounts have been designated by the Board for the following purposes: Electric Capital Replacement Starting in 2009,the Board set aside funds designated for future electric infrastructure replacement. Electric Vehicle Reserve Beginning in 2009, the Board set aside funds designated for future electric utility vehicle replacements. Electric Rate Reserve In compliance with Board rules, the District created an electric rate stabilization fund in anticipation of future costs. In 2023, there was $2.36 million utilization of these funds to offset increased power costs in 2022 and January 2023 (cash flow in 2023) in lieu of directly all-at-once raising electric rates. Recovery of this utilization is planned over four years and included in the current rates approved (2024 and 2025). There was no utilization of this reserve in 2022. Water Vehicle Reserve Beginning in 2009, the Board set aside funds designated for future water utility vehicle replacements. Water Capital Replacement Starting in 2021, the Board set aside funds designated for future water infrastructure replacement. Prepaid Connection Fees In compliance with Board rules, the District has set aside prepaid connection fees to cover installation costs of water services. Debt Service and Operating Reserve Fund Starting in 2021, the Board combined this operating reserve designation into the operating classification, consistent with Board rules. Donner Lake Assessment District Surcharge Fund The District established a monthly billing surcharge in the amount of$6.65 applicable to customers in the Donner Lake area to provide revenue to pay the remainder of the cost of reconstruction effective October 2006. Deferred Liabilities Reserve Starting in 2017, the Board established a reserve to protect the District from volatility in pension, other post-employment benefits, and worker's compensation premiums. Page 138 Page 362 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) As of December 31, Board designated accounts at fair value consisted of the following: 2023 2022 Electric capital replacement fund $ 10,376,743 $ 10,817,633 Electric vehicle reserve 1,478,862 770,416 Electric rate reserve 5,149,487 6,588,607 Electric deferred liabilites reserve 2,169,608 2,107,871 Water vehicle reserve 451,654 382,735 Water capital replacement 3,059,078 1,021,821 Prepaid connection fees 83,354 79,292 Donner Lake Assessment District surcharge fund 200,448 177,548 Water deferred liabilites reserve 113,826 108,280 Totals $ 23,083,060 $ 22,054,203 Certain assets have been restricted by bond covenants or third-party contractual agreements for the following purposes: Certificates of Participation Prepayments to the Trustee from the District for upcoming debt payments and in 2023, unspent debt project proceeds of$6,736,089 for electric operations and $1,032,659 for water operations. Special Tax Bonds: Gray's Crossing The terms of the special tax bonds issued for the Mello-Roos Community Facilities Districts (CFD) require reserve funds as security for each principal and interest payment as they come due. Reserve funds are set aside as prescribed in the loan documents. These reserve funds are held by Bank of New York Mellon Trust Company. Facilities Fees The District charges facilities fees to applicants for new service to cover the costs of infrastructure needed to meet their systems demand. The use of such funds is restricted by California state law. AB32 Cap and Trade Auction Fund The District electric utility is identified as an "Electric Distribution Utility" under the Cap and Trade regulations and is therefore eligible to receive a direct allocation of allowances that can be sold in an auction. The proceeds from quarterly allowance auctions are held in this restricted fund and are used to purchase qualified renewable power. These funds are intended to mitigate the burden on the consumer without impacting a carbon price signal. Low Carbon Fuel Standard (LCFS) Credits Proceeds from credit sales are only allowed to be used towards efforts that promote and/or facilitate transportation electrification within the District's service territory. Other(Area Improvement Funds) The District received funds from the County of Nevada,which are to be used only for improvements to specific areas within the District's boundaries in Nevada County. These areas include various Nevada County assessment districts. Page 139 Page 363 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) As of December 31, restricted cash and cash equivalents and investments at fair value consisted of the following: 2023 2022 Certificates of Participation $ 8,075,860 $ 18,769,692 Special tax bonds 1,989,382 2,207,543 Facilities fees 2,383,760 2,816,870 AB 32 Cap and Trade Auction fund 445,980 579,554 Other(area improvement funds) 186,126 178,469 LCFS Credits 89,579 68,049 Total Restricted Cash and Cash Equivalents and Investments $ 13,170,687 $ 24,620,177 Cash and investments are comprised of the following cash and cash equivalents and investments as of December 31: 2023 2022 Cash and cash equivalents $ 42,948,790 $ 51,303,694 Investments—government bonds 9,383,456 9,068,009 Totals $ 52,332,246 $ 60,371,703 Cash and cash equivalents and investments were $52,332,246 and $60,371,703 on December 31, 2023 and 2022, respectively. Cash equivalents substantially consist of deposits in the state pooled fund, Placer County pooled fund, money market funds and investments. Adjustments necessary to record investments at fair market value are recorded in the operating statement as increases or decreases in investment income. Market values may have changed significantly after year end. FAIR VALUE MEASUREMENT The District applies the provisions of Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, which requires governmental entities, to report certain investments at fair value on the Statements of Net Position. Investments are valued at fair value at December 31. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices for identical instruments in active markets. Level 2 inputs are quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which all significant inputs are observable. Level 3 inputs are valuations derived from valuation techniques in which significant inputs are unobservable. Page 140 Page 364 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) FAIR VALUE MEASUREMENT(CONTINUED) The District classifies its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The District has the following fair value measurements as of December 31, 2023: • US Government bonds and agency securities are valued using observable inputs (Level 2 inputs). INVESTMENTS AUTHORIZED BY THE DISTRICT'S INVESTMENT POLICY The District adopted an investment policy in 2006 which allowed for investments in instruments permitted by the California Government Code and/or the investments permitted by the trust agreements on District financing, including investments in the local government investment fund pool administered by the State of California (LAIF), Placer County Treasurer's Investment Portfolio (PCTIP) pooled investment and Utah Public Treasurers' Investment Fund (UPTIF). The District's investment policy contains provisions intended to limit the District's exposure to interest rate risk, credit risk, and concentration of credit risk. At December 31, 2023 and 2022 the District's deposits and investments at fair value were held as follows: 2023 2022 Cash on hand $ 2,400 $ 2,400 Deposits 1,310,250 3,560,270 LAIF 25,476,710 31,647,797 PCTIP 6,568,341 6,279,910 UPTIF 8,807,962 8,797,711 Bank Certificates of Deposit 1,407,518 1,378,504 Money Market Funds 783,127 1,015,606 U.S. Government Agency Securities 7,037,592 6,814,789 U.S. Government Bonds 938,346 874,716 Totals 52,332,246 60,371,703 DISCLOSURES RELATING TO INTEREST RATE RISK Interest rate risk is the risk that changes in the market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment,the greater is the sensitivity of its fair value to changes in market interest rates. Information about the sensitivity of the fair values of the District's investments to market interest rate fluctuations is provided by the following table that shows the District's investments by maturity for 2023 and 2022: Maturity as of December 31, Investments and Deposits 2023 2022 LAIF 3 months or less 3 months or less PCTIP 3 months or less 3 months or less UPTIF 3 months or less 3 months or less Federated U.S. Treasury Cash Reserve 3 months or less 3 months or less Morgan Stanley Treasury 3 months or less 3 months or less Fidelity Money Market Government Portfolio 57 3 months or less 3 months or less Dreyfus Treasury Securities 3 months or less 3 months or less Federal U.S Treasury Bonds 0.5 to 2.5 years 1.5 to 3.5 years Federal Agencies Bonds 0.5 to 2.5 years 1.5 to 3.5 years Bank Certificates of Deposit (FDIC Insured) 0.5 to 2.5 years 1.5 to 3.5 years Page 141 Page 365 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) DISCLOSURES RELATING TO CREDIT RISK Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. LAIF, PCTIF and UPTIF do not have a rating provided by a nationally recognized statistical rating organization. The Morgan Stanley Treasury is rated AAAm by S&P and Aaa-mf by Moody's. The Federated U.S. Treasury Cash Reserve is rated AAAm by S&P and Aaa-mf by Moody's. Federal Farm Credit Banks is rated AA+ by S&P and Aaa by Moody's. The Dreyfus Treasury Securities is rated Aaa-mf by Moody's and AAAm by S&P. The Fidelity Money Market is rated AAA-mf by Moody's and AAAm by S&P. CUSTODIAL CREDIT RISK Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The District's investment policy does not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits. However, the California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless waived by the government unit). The market value of pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. As of December 31, 2023 and 2022 bank deposits exceeded FDIC insurance coverage by$2,045,463 and $3,285,418, respectively. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker/dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the District's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities using mutual funds or governmental investment pools (such as LAIF). DEPOSIT IN STATE INVESTMENT POOL The District is a voluntary participant in the Local Agency Investment Fund (LAIF). This investment fund has an equity interest in the State of California's(State's) Pooled Money Investment Account(PMIA). PMIA funds are on deposit with the State's Centralized Treasury System and are managed in compliance with the California Government Code according to a statement of investment policy which sets forth permitted investment vehicles, liquidity parameters, and maximum maturity of investments. The fair value of the District's investment in this pool is reported in the accompanying financial statements at amounts based upon the District's pro-rata share of the fair value provided by the LAIF for the entire LAIF portfolio (in relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the accounting records maintained by the LAIF, which are recorded on an amortized cost basis. Page 142 Page 366 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 2—CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) DEPOSIT IN PLACER COUNTY TREASURER INVESTMENT POOL The District is a voluntary participant in the Placer County Investment Portfolio (PCTIP). The District is eligible to participate in PCTIP because a portion of the District's service area is in Placer County. Investments are on deposit with the Placer County Treasurer and are managed in compliance with the California Government Code according to a statement of investment policy which sets forth permitted investment vehicles, liquidity parameters, and maximum maturity of investments. The fair value of the District's investment in this pool is reported in the accompanying financial statements at amounts based upon the District's pro-rata share of the fair value provided by Placer County Treasurer for the entire PCTIP (in relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the accounting records maintained by the Placer County Treasurer, which are recorded on an amortized cost basis. DEPOSIT IN UTAH PUBLIC TREASURERS'INVESTMENT FUND The District is a voluntary participant in the Utah Public Treasurers' Investment Fund (UPTIF). The District is eligible to participate in (UPTIF)through its membership with Utah Associated Municipal Power Systems (UAMPS). Investments are on deposit with State of Utah public treasury and investments are restricted to those authorized by the Utah Money Management Act and rules of the Money Management Council of Utah. The fair value of the District's investments in this pool is reported in the accompanying financial statements at amounts based upon the District's pro-rata share of the fair value provided by UPTIF through UAMPS Member Retention Fund. NOTE 3—TELECOMMUNICATION SERVICES In 1999, the District initiated a project to expand its basic service offerings to include internet access, cable television and voice delivered over fiber optic networks (the broadband project). The District completed the broadband design project and obtained the necessary regulatory approvals and franchises needed to construct and launch the broadband project. A local cable television service provider filed an objection in September 2004 with the Nevada County Local Agency Formation Commission (LAFCO), the entity responsible for providing regulatory approval for the broadband project. After denying the cable television provider's request for a reconsideration of their approval of the District's project, the cable television provider filed a lawsuit against LAFCO. The District was not named in the lawsuit. A ruling on the lawsuit was received in January 2006. LAFCO prevailed on all portions of the cable television provider's claim. The cable television provider filed an appeal; however, in June of 2007, the Court ruled in favor of LAFCO, upholding the initial ruling. Since 2009, the District has been exploring options to sell or lease the existing infrastructure to provide a return on investment in the project. Expenses incurred by the District to date on the broadband project total $2,834,079. In 2023 and 2022 there were no material expenditures for this project. In 2018, the District signed a Memorandum of Understanding with Plumas Sierra Telecommunications to offer services utilizing these four fibers from Reno to Sacramento in future years. Page 143 Page 367 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 4—CAPITAL ASSETS Capital assets consist of the following at December 31, 2023 and 2022: January 1, December 31, Plant Balances 2023 Additions Reductions 2023 Electric distribution $ 80,851,918 $ 5,490,132 $ (1,531,532) $ 84,810,518 Water distribution 132,306,300 14,117,852 (4,113,573) 142,310,579 General plant 20,857,930 898,737 (150,861) 21,605,806 Total 234,016,148 20,506,721 (5,795,966) 248,726,903 Accumulated Depreciation Electric distribution (25,615,227) (2,826,914) 1,065,078 (27,377,063) Water distribution (60,888,418) (4,666,745) 602,997 (64,952,166) General plant (13,519,645) (978,710) 140,077 (14,358,278) Total (100,023,290) (8,472,369) 1,808,152 (106,687,507) Plant Sub-Total Electric distribution 55,236,691 2,663,218 (466,454) 57,433,455 Water distribution 71,417,882 9,451,107 (3,510,576) 77,358,413 General plant 7,338,285 (79,973) (10,784) 7,247,528 Total 133,992,858 12,034,352 (3,987,814) 142,039,396 Construction work in progress 3,604,888 17,621,656 (14,595,278) 6,631,266 Totals $ 137,597,746 $ 29,656,008 $ (18,583,092) $ 148,670,662 (Restated) January 1, December 31, Plant Balances 2022 Additions Reductions 2022 Electric distribution $ 76,021,243 $ 5,114,993 $ (284,318) $ 80,851,918 Water distribution 124,052,449 8,490,899 (237,048) 132,306,300 General plant 19,827,303 1,215,311 (184,684) 20,857,930 Total 219,900,995 14,821,203 (706,050) 234,016,148 Accumulated Depreciation Electric distribution (23,396,600) (2,987,284) 768,657 (25,615,227) Water distribution (56,654,194) (4,491,411) 257,187 (60,888,418) General plant (12,700,105) (986,905) 167,365 (13,519,645) Total (92,750,899) (8,465,600) 1,193,209 (100,023,290) Plant Sub-Total Electric distribution 52,624,643 2,127,709 484,339 55,236,691 Water distribution 67,398,255 3,999,488 20,139 71,417,882 General plant 7,127,198 228,406 (17,319) 7,338,285 Total 127,150,096 6,355,603 487,159 133,992,858 Construction work in progress 5,732,900 7,255,889 (9,383,901) 3,604,888 Totals $ 132,882,996 $ 13,611,492 $ (8,896,742) $ 137,597,746 In accordance with FERC guidelines for utility accounting, additional activity is reflected in the accumulated depreciation accounts for retirement costs related to upgrading capital investment projects and replacing electric distribution, metering and general assets. Accordingly, the retirement costs are reported as part of the change in accumulated depreciation. As of December 31, 2023 and 2022, the plant in service included land and land rights of$3,318,346 which are not being depreciated. A portion of the plant has been contributed to the District.When replacement is needed,the District replaces the contributed plant with District-financed plant. Page 144 Page 368 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 4—CAPITAL ASSETS (Continued) General plant assets and accumulated depreciation include subscription-based information technology arrangements (SBITA)which require the District to record an intangible right-to-use subscription asset. SBITA asset additions in 2022 amounted to $627,600 and there were no additions of SBITA assets in 2023. The net SBITA assets as of December 31, 2023 are $420,433, with accumulated amortization of $207,167. NOTE 5— LEASES RECEIVABLE The District is reporting leases receivable of$1,428,859 (split between current amount$39,261 and non- current amount of$1,389,598)as of December 31, 2023. For 2023, the District reported lease revenue of $45,476 and interest income of$90,647 related to lease payments received. The leases receivable are comprised of four cellular and or radio towers, each with five year initial terms, and include renewal increments of up to five, each with five year increments. The District is reasonably certain each of the lessees will renew respective lease for the available extensions. As of December 31, 2023, future minimum lease payments due to the District are as follows: Year Ending Amount 2024 $ 99,468 2025 101,954 2026 104,503 2027 107,116 2028 109,794 2029 - 2033 499,188 2034 - 2038 435,565 2039 - 2043 492,802 2044 - 2046 267,183 Total Lease Payments 2,217,573 Less Interest (788,714) Present value of leases receivable $ 1,428,859 Page 45 Page 369 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 6— LONG-TERM DEBT Long-term debt consisted of the following at December 31, 2023: January 1, December 31, Due within 2023 Additions Reductions 2023 one year Special Tax Bonds—Mello Roos, CFD Old Greenwood,4.18%,due serially to 2032 $ 7,455,800 $ $ (528,200) $ 6,927,600 $ 570,300 Special Tax Bonds—Mello Roos, CFD Grays Crossing,3.25%to, 5.7%,due seriallyto 2035(net of unamortized discounts of $54,632) 11,925,681 (520,313) 11,405,368 560,000 Special Tax Bonds—Mello Roos, CFD Grays Crossing,3.50%to 5.50%,due seriallyto 2035(net of unamortized discounts of $6,037) 14,493,446 (669,483) 13,823,963 710,000 Certificates of Participation— Water,2.00%to 4.00%, due seriallyto 2035 (net premiums of $312,951) 10,364,969 - (682,018) 9,682,951 680,000 Certificates of Participation Water,4.00%to 5%,due semiannuallyto 2052,secured by real and personal property. (net premiums of $1,332,461) 16,204,214 - (276,753) 15,927,461 240,000 Certificates of Participation Electric,4.00%to 5%,due semiannuallyto 2052,secured by real and personal property. (net premiums of $241,801) 6,722,090 (150,289) 6,571,801 145,000 Totals $ 67,166,200 $ $ (2,827,056) $ 64,339,144 $ 2,905,300 Page 146 Page 370 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 6— LONG-TERM DEBT (Continued) Long-term debt consisted of the following at December 31, 2022: January 1, December 31, Due within 2022 Additions Reductions 2022 one year Pension Obligation Bonds Electric,2.47% due semi-annually Refinanced in 2016 $ 539,000 $ $ (539,000) $ - $ Special Tax Bonds—Mello Roos, CFD Old Greenwood,4.18%,due serially to 2032 7,940,300 (484,500) 7,455,800 528,200 Special Tax Bonds—Mello Roos, CFD Grays Crossing,3.25%to, 5.7%,due seriallyto 2035(net of unamortized discounts of $59,319) 12,385,994 (460,313) 11,925,681 505,000 Special Tax Bonds—Mello Roos, CFD Grays Crossing,3.50%to 5.50%,due seriallyto 2035(net of unamortized discounts of $6,554) 15,077,928 - (584,482) 14,493,446 645,000 Certificates of Participation— Water,2.00%to 4.00%, due seriallyto 2035 (net premiums of $339,969) 11,021,987 (657,018) 10,364,969 655,000 Certificates of Participation Water,4.00%to 5%,due semiannuallyto 2052,secured by real and personal property. (net premiums of $1,379,214) - 16,227,590 (23,376) 16,204,214 230,000 Certificates of Participation Electric,4.00%to 5%,due semiannuallyto 2052,secured by real and personal property. (net premiums of $252,090) 6,727,235 (5,145) 6,722,090 140,000 Installment loan,4.58% due seriallyto 2022 12,750 - (12,750) - - Totals $ 46,977,959 $ 22,954,825 $ (2,766,584) $ 67,166,200 $ 2,703,200 Page 147 Page 371 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 6— LONG-TERM DEBT (Continued) During December 2003, the Old Greenwood Community Facilities District issued $12,445,000 of Special Tax Bonds, the net proceeds of which were utilized to finance various public improvements for property within Old Greenwood. (See note 9). The terms of the Special Tax Bonds call for debt service payments to be provided solely by taxes levied on and collected from the owners of the taxable land within Old Greenwood. The bonds are secured by land located within Old Greenwood. In January 2014, the original 2003 bonds issued for the Old Greenwood Community Facilities District were refunded (refinanced)by issuing 2014 bonds to a private investment firm at a lower rate, saving the property owners in Old Greenwood over $3 million over the term of the bonds. The 2014 bonds did not require a reserve fund. Therefore, the reserve fund of the 2003 bonds was utilized to reduce the principal. The 2014 bonds have similar terms and have the same rate and method of apportionment for the Old Greenwood parcel owners as the original 2003 bonds. During 2005 and 2004 respectively, the Gray's Crossing Community Facilities District issued $15,375,000 and $19,155,000 of Special Tax Bonds, the net proceeds of which were utilized to finance various public improvements for property within Gray's Crossing. (See note 9). The terms of the Special Tax Bonds call for debt service payments to be provided solely by taxes levied on and collected from the owners of the taxable land within Gray's Crossing. The bonds are secured by land located within Gray's Crossing. On October 12, 2006, through the Truckee Donner Public Utility District Financing Corporation on behalf of the District issued $26,570,000 of Certificates of Participation to refund 100% of the outstanding balance of Certificates issued in 1996, complete the funding of the Donner Lake Assessment District water system, and fund water system capital improvements.The refunding portion of the 2006 COP's,totaling$8,465,000, has an average interest rate of 4.10%. The refunded 1996 COP's had an average interest rate of 5.41%. The net proceeds of $7,500,557 (after payment of $63,733 in underwriting fees, insurance and other issuance costs)plus an additional$1,315,194 of reserve fund monies were used to prepay the outstanding debt service requirements on the 1996 COP's. The terms of the Certificates call for payments to be made only from the net revenues of the Water Division and the debt is secured by this revenue. These revenues are required to be at least equal to 125% of the debt service for each year. In 2015, a portion of the 2006 COP was refunded. Since a portion of the 2006 COP was used for advance refunding of previous COP, that portion could not be advance refunded at the time of the refunding. The new 2015 refunding did not require a reserve fund. The reserve fund was liquidated and applied towards reducing the debt principal. The estimated net present value savings were $1,600,000 or 10% over the remaining life of issuance. In 2016, the remaining portion of the 2006 COP was refunded. Due to the refunding an estimated net present value savings of$222,000 was achieved. In June 2011, the District refunded (refinanced) an existing $7.8 million pension side fund obligation for its participation in CalPERS. Prior to 2011, the annual side fund payments were expensed and described in the Notes to Financial Statements. The pension side fund liability was amortized through June 2022 with a 7.75% rate. This liability was not required to be reported on the District's Statement of Net Position, but the future pension expense was included in budget and rate calculations.The new refunding rate of 5%reduced the District's annual pension costs by almost $100,000 through 2022. In 2016, the District refunded the pension side fund again earning the District annual savings of$30,000 or$164,000 in total. Page 148 Page 372 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 6— LONG-TERM DEBT (Continued) In June 2022, through the Truckee Donner Public Utility District Financing Corporation on behalf of the District, issued Water and Electric Certificates of Participation of$14,825,000 and $6,470,000, respectively, with average interest rate of 4.2% and 4.1% respectively. The purposes of the issuances were to fund capital improvement projects. Scheduled debt service payments by year by principal, interest,and total are: Year(s) Principal Interest Total 2024 $ 2,905,300 $ 3,030,083 $ 5,935,383 2025 3,121,100 2,890,674 6,011,774 2026 3,340,600 2,740,540 6,081,140 2027 3,583,700 2,578,999 6,162,699 2028 3,840,200 2,405,400 6,245,600 2029-2033 22,341,700 9,024,689 31,366,389 2034-2038 10,775,000 4,031,645 14,806,645 2039-2043 4,280,000 2,626,855 6,906,855 2044-2048 4,945,000 1,533,514 6,478,514 2049-2052 3,380,000 432,500 3,812,500 $ 62,512,600 $ 31,294,899 $ 93,807,499 Plus: Unamortized premiums 1,887,213 Less: Unamortized discounts (60,669) $ 64,339,144 Scheduled debt service payments by division are: CFD Gray's CFD Old Consolidated Year(s) Electric Water Crossing Greenwood Total 2024 $ 429,181 $ 1,984,788 $ 2,661,540 $ 859,874 $ 5,935,383 2025 431,931 1,990,588 2,712,420 876,835 6,011,774 2026 429,181 1,984,438 2,771,730 895,791 6,081,140 2027 431,181 1,986,788 2,823,243 921,487 6,162,699 2028 432,681 1,987,188 2,882,368 943,363 6,245,600 2029-2033 2,145,905 9,925,275 15,282,370 4,012,839 31,366,389 2034-2038 2,151,905 6,102,150 6,552,590 - 14,806,645 2039-2043 2,148,105 4,758,750 - 6,906,855 2044-2048 1,718,764 4,759,750 6,478,514 2049-2052 - 3,812,500 - 3,812,500 Totals $ 10,318,834 $ 39,292,215 $ 35,686,260 $ 8,510,190 $ 93,807,499 Page 49 Page 373 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 7-SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS A summary of subscription-based information technology arrangements (SBITA) transactions for the year ending December 31, 2023 and 2022 respectively, are as follows: Subscription Liability: January 1, December 31, 2023 Additions Reductions 2023 Security Software $ 112,243 $ $ ( 66,172) $ 56,071 Microsoft Cloud Software 378,588 (69,089) 309,499 GIs Software 74,058 (47,940) 26,118 Call Center Software 62,711 (29,946) 32,765 Totals $ 627,600 $ $ (203,147) $ 424,453 January 1, December 31, 2022 Additions Reductions 2022 Security Software $ - $ 112,243 $ $ 112,243 Microsoft Cloud Software 378,588 378,588 GIs Software 74,058 74,058 Call Center Software 62,711 62,711 Totals $ $ 627,600 $ $ 627,600 The District has entered various SBITA contracts with subscription liability amounts indicated above. For all SBITA arrangements, the District has utilized an interest discount rate based on the estimated incremental borrowing rate of the District for similar asset types and terms. SBITA payment amounts vary by SBITA, some are annual and most are monthly. In 2023 and 2022, there were no variable payment outflows of resources not included in the subscription liability. Note 4 provides information on the related subscription intangible asset and accumulated amortization. The future subscription and interest subscription payments as of December 31, 2023 follows: For the Year Ended December 31 Principal Interest Total 2024 $ 185,199 $ 29,903 $ 215,102 2025 105,674 10,210 115,884 2026 65,374 5,789 71,163 2027 68,206 2,957 71,163 $ 424,453 $ 48,859 $ 473,312 Page 150 Page 374 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 8— UNEARNED REVENUES Transactions that have not yet met revenue recognition requirements are recorded as a non-current liability and reflected in the accompanying Statement of Net Position. As of December 31, 2023 and 2022, unearned revenues consist of unearned special assessment revenues, development agreement deposits, connection fees, and other deposits. Unearned revenues consisted of the following at December 31, 2023 and 2022: January 1, December 31, 2023 Additions Reductions 2023 Unearned tax revenues $ 1,877,646 $ 1,940,924 $ (1,877,646) $ 1,940,924 Development agreement deposits 1,759,533 770,354 (774,910) 1,754,977 Connection fees and other deposits 1,644,831 812,315 (838,548) 1,618,598 Totals $ 5,282,010 $ 3,523,593 $ (3,491,104) $ 5,314,499 January 1, December 31, 2022 Additions Reductions 2022 Unearned tax revenues $ 1,733,269 $ 1,880,414 $ (1,736,037) $ 1,877,646 Development agreement deposits 2,319,232 824,667 (1,384,366) 1,759,533 Connection fees and other deposits 1,530,903 1,844,589 (1,730,661) 1,644,831 Totals $ 5,583,404 $ 3,730,679 $ (4,032,073) $ 5,282,010 NOTE 9—COMMUNITY FACILITIES DISTRICTS In order to finance various public improvements needed to develop property within the Town of Truckee, California, the District formed Community Facilities Districts (CFD), which issued Special Tax Bonds pursuant to the Mello-Roos Community Facilities Act of 1982, as amended. Accordingly, the Bonds are special obligations of the respective Community Facilities Districts and are payable solely from revenues derived from taxes levied on and collected from the owners of the taxable land within the respective Community Facilities Districts. These Special Tax Bonds are not general or special obligations of the District. The Board of Directors of the District is the legislative body of each of the CFD and as such they approve the rates and method of apportionment of the special taxes and management of the District has operational responsibility for each of the CFD. As improvements at each CFD were completed, the infrastructure was donated in the form of a capital contribution to the Town of Truckee,the Truckee Sanitary District, Southwest Gas, and the District. In December 2003, the Community Facilities District No. 03-1 (Old Greenwood) was formed and issued $12,445,000 in Special Tax Bonds (the 03-1 Bonds). In January 2014, the original 2003 bonds were refunded (refinanced)by issuing 2014 bonds to a private investment firm at a lower rate, saving the property owners in Old Greenwood over$3 million over the term of the bonds. The 2014 bonds have similar terms and have the same rate and method of apportionment for the Old Greenwood parcel owners as the original 2003 bonds. During 2023 and 2022 respectively, taxes of $849,076 and $827,172 were levied by Old Greenwood. Of these amounts, $424,538 and $413,586 relate to 2023 and 2022 respectively, and accordingly are included in tax revenues in the accompanying Statement of Revenues, Expenses, and Changes in Net Position. The remaining amount will be recognized in future periods and are included in unearned revenues on the accompanying Statement of Net Position. Page 151 Page 375 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 9—COMMUNITY FACILITIES DISTRICTS (Continued) In September 2004, the Community Facilities District No. 04-1 (Gray's Crossing) was formed and issued $15,375,000 in Special Tax Bonds (the 04-1 Bonds). In 2005, an additional $19,155,000 (2005 Series) in Special Tax Bonds was issued for the Gray's Crossing CFD. During the county tax roll for 2023 and 2022, taxes of $3,032,772 and $2,933,656 respectively were levied by Gray's Crossing. Of this amount, $1,516,386 and $1,466,828 relate to 2023 and 2022 respectively, and accordingly, are included in tax revenues. The remaining levied amount through the county tax roll will be recognized in future periods and is included in unearned revenues on the accompanying Statement of Net Position. Due to consistently high tax levy payment delinquencies, the Gray's Crossing made unscheduled reserve fund draws to fund debt payments of $231,729 and $167,960, for 2023 and 2022 respectively. Gray's Crossing Reserve Fund balance as of year-end December 31 was $1,938,901 and $2,159,182, for 2023 and 2022 respectively. The official statements and continuing disclosures may be viewed on the web site of Electronic Municipal Market Access(EMMA)of the Municipal Securities Rulemaking Board (MSRB), http://emma.msrb.org/.The Committee on Uniform Securities Identification Procedures number(CUSIP)for these special tax bonds is CUSIP 897817. NOTE 10—DONNER LAKE WATER COMPANY ACQUISITION In 2001, the District acquired the Donner Lake Water Company by initiating an eminent domain lawsuit. As a part of the takeover, the District replaced the entire water system, which cost approximately $15.6 million and was completed in 2006. The District initially estimated the replacement cost to be $13 million. The Donner Lake property owners agreed to reimburse the District for the full costs of the replacement. Therefore, an assessment was placed on each Donner Lake homeowner's property for a pro- rata share of the $13 million payable immediately or with an option to pay over 20 years. The assessment is collected by Nevada County and Placer County on behalf of the District and is secured by the Donner Lake property owners. A monthly $6.65 water system upgrade surcharge is paid by the Donner Lake customers to reimburse the District for the $2.6 million cost incurred in excess of the assessment. In April 2004, the District obtained financing in the form of a State Revolving Fund (SRF) Loan for $12,732,965 at a rate of 2.34%. The District is required to fund a reserve account by making semi-annual reserve payments in the amount of$40,043 for a 10-year period. The reserve fund was fully funded as of December 31, 2016. As of December 31, 2023 and 2022, the assessment receivable from the property owners was $4,798 and $8,206, respectively. These amounts are shown as Special Assessments Receivable in the Statement of Net Position. The proceeds of the assessment and surcharge are placed in the Donner Lake Special Assessment District Improvement Fund and used to pay the debt service for the water system improvements. In July 2021, the District paid-off in full the State Revolving Fund Loan balance of $3,401,747, post- scheduled debt service payment paid July 1, 2021, saving $202,088 in future interest costs. Donner Lake Assessment District long-term invested funds which matured in 2021 were utilized to make the payment. The previously invested funds utilized were intended for scheduled debt service through 2026, as the 20- year special tax assessment ended with the 2021/2022 property tax year. Page 152 Page 376 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 11 — EMPLOYEE BENEFIT PLANS A. PENSION PLANS Plan Description —All qualified permanent and probationary employees are eligible to participate in the District's Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and Local Government resolution. CAPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CaIPERS website. Benefits Provided—CalPERS provides service retirement and disability benefits,annual costs of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefits are Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. The 2.7% at 55 Miscellaneous Plan is closed to new entrants. The plans' provisions and benefits in effect on December 31, 2023 are summarized as follows: Miscellaneous Prior to On or after Hire Date January 1,2013 January 1,2013 Benefit Formula 2.7%@ 55 2%@ 62 Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life Retirement Age 50 and Up 52 and Up Monthly Benefits,as a%of eligible compensation 2.0%-2.7% 1.0%to 2.5% Required Employee Contributions Rates 8.00% 6.75% Required Employer Contributions Rates 13.35% 7.47% Contributions — Section 208149(c) of the California Public Employee's Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The District is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Contributions shown below are for the fiscal year ending June 30, 2023 and 2022, respectively. Page 153 Page 377 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) A. PENSION PLANS (CONTINUED) Miscellaneous Hire Date Prior to On or after January 1, 2013 January 1, 2013 Combined Total Benefit Formula 2.7% @ 55 2% @ 62 2023 Employer Contributions $ 256,108 $ 228,898 $ 485,006 2022 Employer Contributions 1,440,517 213,456 1,653,973 Fiscal Year End 6/30/2023 Total 1,696,625 442,354 2,138,979 2022 Employer Contributions 249,427 177,464 426,891 2021 Employer Contributions 1,280,155 154,157 1,434,312 Fiscal Year End 6/30/2022 Total $ 1,529,582 $ 331,621 $ 1,861,203 B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS As of December 31, 2023, the District reported net pension liabilities for its proportionate shares of the net pension liability as follows: Proportionate Share of Net Pension Liability Fiscal Year Ending June 30, 2023 June 30, 2022 $18,145,067 $16,783,065 The District's net pension liability is measured as a proportionate share of the net pension liability. The net pension liability is measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. The District's proportion of the net pension liability was based on a projection of the District's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The District's proportionate share of the net pension liability for the Plan for the measurement date of June 30, 2023 and June 30, 2022 is as follows: Percentage Share of Risk Pool Measurement Date June 30, 2023 June 30, 2022 Change Percentage of Plan NPL 0.36287% 0.35867% 0.00420% Page 154 Page 378 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS (Continued) At December 31, 2023 and 2022 the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 2023 Deferred Outflows of Deferred Inflows of Resources Resources Changes in assumptions $ 1,095,499 $ - Differences between expected and actual experience 926,948 143,792 Net differences between projected and actual irnestment earnings 2,937,850 - Differences between employer's contributions and 19,855 394,277 proportionate share of contributions Change in employer's proportion 165,814 - Pension contributions made subsequent to the measurement 1,607,479 date Total $ 6,753,445 $ 538,069 2022 Deferred Outflows of Deferred Inflows of Resources Resources Changes in assumptions $ 1,719,776 $ - Differences between expected and actual experience 337,037 225,733 Net differences between projected and actual iniestment earnings 3,074,212 - Differences between employer's contributions and - 760,466 proportionate share of contributions Change in employer's proportion 178,274 - Pension contributions made subsequent to the measurement 1,653,994 date Total $ 6,963,293 $ 986,199 Page 155 Page 379 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS (Continued) For the December 31, 2023 and 2022 balances of deferred outflows and inflows of resources, $1,607,479 and $1,653,994 respectively, is reported as deferred outflows of resources related to contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the years ended December 31, 2024 and 2023 respectively. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Reporting Period Reporting Period December 31, 2023 December 31, 2022 Year Ended Year Ended December 31 Amounts December 31 Amounts 2024 $ 1,338,896 2023 $ 1,052,639 2025 924,442 2024 899,408 2026 2,260,260 2025 490,760 2027 84,299 2026 1,880,293 $ 4,607,897 $ 4,323,100 Actuarial Assumptions — The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions: Miscellaneous 2023 Valuation Date June 30, 2022 Measurement Date June 30, 2023 Actuarial Cost Method Entry-Age Normal Actuarial Assumptions: Discount Rate 6.90% Inflation 2.30% Salary Increase Varies by Entry Age and Service Mortality(1) Derived using CalPERS membership data for all funds (1) The mortality table used was developed based on CalPERS'specific data. The Table includes 15 years of mortality improvements using Society of Actuaries Scale MP-2016. For more details on this table, please refer to the 2021 experience study report. All underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2022 valuation were based on results of the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Further details of the Experience Study can be found on the CaIPERS website. Page 156 Page 380 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS (Continued) Discount Rate -The discount rate used to measure the total pension liability as of June 30, 2023 was 6.90%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90% discount rate used is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website. The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rate of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CaIPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long term (11 + years) using a building-block approach. Using the expected nominal returns for both short-term and long-term,the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown below is based on a plan policy adopted by CaIPERS' Board effective November 13, 2013. Long-Term Assumed Expected Real Asset Rates of Asset Class Allocation Return Public Equity 42.0% 4.34% Global Equity-Cap-weighted 30.0% 4.54% Global Equity- Factor-weighted 12.0% 3.84% Private Equity 13.0% 7.28% Income 30.0% 1.44% Treasury 5.0% 0.27% Morggage-backed Securities 5.0% 0.50% In\/estment Grade Corporates 10.0% 1.56% High Yield 5.0% 2.27% Emerging Market Debt 5.0% 2.48% Private Debt 5.0% 3.57% Real Assets 15.0% 3.21% Strategic Leverage -5.0% -0.59% Tota I 100.0% Page 57 Page 381 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) B. PENSION LIABILITIES, PENSION EXPENSES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES RELATED TO PENSIONS (Continued) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate-The following presents the District's proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher than the current rate; for current year and prior year measurement dates: Miscellaneous Measurement Date June 30, 2023 June 30, 2022 1%Decrease 5.90% 5.90% Net Pension Liability $27,591,371 $25,834,916 Current Discount Rate 6.90% 6.90% Net Pension Liability $18,145,067 $16,783,065 1%Increase 7.90% 7.90% Net Pension Liability $10,369,949 $9,335,638 Pension Plan Fiduciary Net Position— Detailed information about each pension plan's fiduciary net position is available in the separately issued CaIPERS financial reports. C. PAYABLE TO THE PENSION PLAN At December 31, 2023 and 2022 respectively, the District did not report a payable for outstanding required contributions to the pension plan. D. DEFERRED COMPENSATION PLAN The District maintains two deferred compensation plans: a 401(a) and a 457 plan, (the Plans) for certain qualified employees. The District currently matches 6.78% of eligible employee contributions. In 2023 the total match was $362,990 compared to $327,704 in 2022. The District has no liability for losses under the Plans, but does have the duty of due care that would be required of an ordinary prudent investor. The District has not reflected the Plans' assets and corresponding liabilities (if any) on the accompanying Statement of Net Position. E. OTHER POST EMPLOYMENT BENEFITS(OPEB) General Information — The District administers a single-employer defined-benefit post-employment healthcare plan and dependents are eligible to enroll. The District's retiree Benefits Plan (the Plan) recognizes benefit payments when due and payable in accordance with the benefit terms. The Plan's fiduciary net position has been determined on the same basis as is reported by the Plan in calculating the fiduciary net position (Net OPEB Liability), deferred outflows of resources and deferred inflows of resource and associated OPEB expense. Page 158 Page 382 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB) (Continued) Benefits Provided—Retirees are eligible for a District contribution towards premiums for the retiree health plan(s) if they have 10+ years of District service. The maximum District contribution is based on years of service. The Retiree is eligible for 50% of the following monthly maximums, with a minimum of 10 years of service, plus 5%for each year of service over 10 years: Retirement Date per person enrolled in the plan: Prior to 1/1/2020 After 12/31/2019 not eligible for Medicare $475 $600 eligible for Medicare $375 $500 Employees Covered—At December 31, 2021 (the valuation date), the benefit terms covered the following employees: Category Count Active Employees 80 Inactive Empoloyes, spouses, or beneficiaries currently receiving payment(s) 73 Inactive employees entitled to but not yet receiving benefit payment(s) - Total 153 Contributions — The District pays benefits as they come due and contributes additionally to the Trust annually. The District's annual contribution to the Trust as of December 31, 2023 and 2022 was $120,000 and $115,000, respectively. Net OPEB Liability —The District's net OPEB liability was measured as of December 31, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of December 31, 2021. Actuarial Assumptions The total OPEB Liability in the December 31, 2022 measurement was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Inflation: 2.30% Salary Increases: Base salary increases in year one: 2.750%. Additional merit-based increases based on CalPERS. Investment Rate of Return: 5.10% Healthcare cost trend rates: 6.25% in the first year, trending down to 3.94% over 52 years Mortality Rates: Based on CalPERS tables Page 159 Page 383 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB) (Continued) The discount rate used to measure the total OPEB liability was 6.25%, down from 7.68% in the prior valuation. The projection of cash flows used to determine the discount rate assumed that the District contribution will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to cover all future OPEB payments. Therefore, the discount rate was set equal to the long-term expected rate of return. Changes in the Net OPEB Liability—The changes in the net OPEB liability for the Plan are as follows: Increases (Decreases) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (a) (b) (c) = (a) -(b) Balance as of Report Date December 31, 2022 $ 8,150,440 $ 3,761,146 $ 4,389,294 Changes for the year: Service Cost 240,361 - 240,361 Interest 612,305 - 612,305 Differences between Expected and Actual Experience (5,797) - (5,797) Changes of Assumptions 1,007,593 1,007,593 Contributions Employer- District's Contribution - 475,962 (475,962) Employer- Implicit Subsidy - 475,203 (475,203) Net Investment Income - (675,758) 675,758 Benefit Payments (360,962) (360,962) - Implicit Rate Subsidy Credit (475,203) (475,203) - Administrative Expenses - (1,638) 1,638 Net Changes 1,018,297 (562,396) 1,580,693 Balance as of Report Date December 31, 2023 $ 9,168,737 $ 3,198,750 $ 5,969,987 Page 160 Page 384 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB)(Continued) Increases (Decreases) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (a) (b) (c) = (a) -(b) Balance as of Report Date December 31, 2021 $ 8,478,479 $ 3,205,022 $ 5,273,457 Changes for the year: Service Cost 201,835 - 201,835 Interest 629,595 - 629,595 Differences between Expected and Actual Experience (271,987) - (271,987) Changes of Assumptions (73,387) (73,387) Contributions - Employer- District's Contribution - 381,988 (381,988) Employer- Implicit Subsidy - 545,407 (545,407) Net Investment Income - 444,083 (444,083) Benefit Payments (268,688) (268,688) - Implicit Rate Subsidy Credit (545,407) (545,407) - Administrative Expenses - (1,259) 1,259 Net Changes (328,039) 556,124 (884,163) Balance as of Report Date December 31, 2022 $ 8,150,440 $ 3,761,146 $ 4,389,294 Sensitivity of the net OPEB liability to changes in the discount rate -The net OPEB liability of the District, as well as what the District's net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher is as follows: 12/31/2022 Valuation Report 12/31/2021 Measured as of Date 12/31/2023 Reporting Date 12/31/2022 Net OPEB Net OPEB Rate Liability Rate Liability 5.25% $ 6,796,812 1% Rate Decrease 6.68% $ 5,059,401 6.25% $ 5,969,987 Current Rate 7.68% $ 4,389,294 7.25% $ 5,246,049 1% Rate Increase 8.68% $ 3,799,346 Page 161 Page 385 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB)(Continued) Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates -The net OPEB liability of the District, as well as what the District's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates is as follows: 12/31/2022 Valuation Report 12/31/2021 Measured as of Date 12/31/2023 Reporting Date 12/31/2022 Rate Rate Over 52 years, Net OPEB Over 55 years, Net OPEB Rate decreasing to Liability Curent decreasing to Liability 5.50% 2.94% $ 5,453,750 1%Rate Decrease 6.00% 2.94% $ 4,017,695 6.50% 3.94% $ 5,969,987 Current Rate 7.00% 3.94% $ 4,389,294 7.50% 4.94% $ 6,564,625 1%Rate Increase 8.00% 4.94% $ 4,812,910 OPEB Plan Fiduciary Net Position —California Employers' Retiree Benefit Trust (CERBT) Fund issues a publicly available financial report for the overall OPEB plan's fiduciary net position which may be obtained from CalPERS at PO Box 942709, Sacramento, Ca. 94229-2709. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB —For the year ended December 31, 2023 and 2022, the District recognized an OPEB expense of$1,044,051 and $761,643 respectively. At December 31, 2023 and 2022, the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the follow sources: 2023 Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 768,527 $ 231,830 Changes of assumptions 1,003,719 251,101 Net Difference between Projected and Actual Earnings on OPEB Plan Investments 418,820 - District contributions made subsequent to the measurement date 878,482 - Total $ 3,069,548 $ 482,931 Page 62 Page 386 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 11 — EMPLOYEE BENEFIT PLANS (Continued) E. OTHER POST EMPLOYMENT BENEFITS(OPEB)(Continued) 2022 Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ 1,053,169 $ 269,815 Changes of assumptions 169,474 334,905 Net Difference between Projected and Actual Earnings on OPEB Plan Investments - 397,595 District contributions made subsequent to the measurement date 951,165 - Total $ 2,173,808 $ 1,002,315 The $878,482 and $951,165 reported as deferred outflows of resources related to contributions subsequent to the December 31, 2022 and 2021 respective measurement dates for reporting as of December 31, 2023 and 2022 respectively, will be recognized as a reduction of the net OPEB liability during the fiscal year ending December 31, 2024 and 2023 respectively. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Reporting Period Reporting Period December 31, 2023 December 31, 2022 Year Ended Year Ended December 31 Amount December 31 Amount 2024 $ 356,044 2023 $ 105,501 2025 415,436 2024 49,653 2026 410,649 2025 109,045 2027 239,988 2026 104,258 2028 82,869 2027 (66,401) thereafter 203,149 thereafter (81,728) $ 1,708,135 $ 220,328 NOTE 12—SELF FUNDED INSURANCE The District has a self-funded vision insurance program and claims were processed by and on behalf of the District. The District did not maintain a claim liability; rather claims were expensed as paid. The amount of claims paid for each of the past three years have not been material. Page 163 Page 387 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 13—SEGMENT DISCLOSURE The District has issued revenue bonds to finance electric and water distribution facilities. The District also issued special tax bonds secured by tax revenues from Mello-Roos Community Facilities Districts. Each project has an external requirement to be reported separately, and investors in the revenue bonds and special tax bonds rely solely on the revenue generated by the individual projects for repayment. Summary financial information for each project is presented on the following pages for the years ending December 31, 2023 and 2022. STATEMENTS OF NET POSITION December 31,2023 Gray's Old ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Electric Water Crossing Greenwood Eliminations Grand Total Current assets $ 38,065,177 $ 15,338,201 $ 10,344,287 $ 1,154,114 $ $ 64,901,779 Non-current assets: Investments 5,579,209 3,804,247 - - - 9,383,456 Leases receivable - 1,389,598 - - - 1,389,598 Capital assets,net 63,688,003 84,982,659 - 148,670,662 Total Non-current Assets 69,267,212 90,176,504 - 159,443,716 Total Assets 107,332,389 105,514,705 10,344,287 1,154,114 - 224,345,495 Deferred outflows of resources Pension 4,052,068 2,701,378 - - - 6,753,446 OPEB 1,841,729 1,227,819 - - - 3,069,548 Unamortized loss on refunding - 379,966 - - - 379,966 Total Deferred Outflows of Resources 5,893,797 4,309,163 - - - 10,202,960 TOTAL ASSETS AND DEFERRED OUTFLOWS $113,226,186 $109,823,868 $ 10,344,287 $ 1,154,114 $ $ 234,548,455 OF RESOURCES LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current liabilities $ 5,305,542 $ 2,484,220 $ 1,733,847 $ 666,825 $ - $ 10,190,434 Non-current Liabilities Long-term debt,net of current portion 6,426,801 24,690,412 23,959,331 6,357,300 - 61,433,844 Subsrciption software liability,net of current portion 155,515 83,739 - - - 239,254 Net pension liability 10,887,040 7,258,027 - - - 18,145,067 OPEB liability 3,581,992 2,387,995 - - - 5,969,987 Unearned revenues 2,349,081 1,024,494 1,516,386 424,538 5,314,499 Total Non-current Liabilities 23,400,429 35,444,667 25,475,717 6,781,838 - 91,102,651 Total Liabilities 28,705,971 37,928,887 27,209,564 7,448,663 101,293,085 Deferred inflows of resources Pension 322,841 215,228 - - - 538,069 OPEB 289,759 193,172 - - - 482,931 Leases receivable 1,284,338 1,284,338 Total Deferred Inflows of Resources 612,600 1,692,738 2,305,338 Net Position Net investment in capital assets 63,852,291 60,784,872 (25,229,331) (6,927,600) - 92,480,232 Restricted for debt service 902,528 2,331,910 2,894,989 - - 6,129,427 Unrestricted 19,152,796 7,085,461 5,469,065 633,051 32,340,373 Total Net Position 83,907,615 70,202,243 (16,865,277) (6,294,549) 130,950,032 TOTAL LIABILITIES,DEFERRED INFLOWS $113,226,186 $109,823,868 $ 10,344,287 $ 1,154,114 $ $ 234,548,455 OF RESOURCES AND NET POSITION Page 64 Page 388 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 13 — SEGMENT DISCLOSURE (Continued) December 31,2022(Restated) Gray's Old ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Electric Water Crossing Greenwood Eliminations Grand Total Current assets $ 35,754,685 $ 23,169,847 $ 9,845,040 $ 1,122,892 $ - $ 69,892,464 Non-current assets: Investments 5,389,941 3,678,068 - - 9,068,009 Broadband maintenance prepaid 62,229 - - - 62,229 Leases receivable - 1,452,595 - - 1,452,595 Capital asssets,net 61,395,805 76,201,941 - - 137,597,746 Total Non-current Assets 66,847,975 81,332,604 - - 148,180,579 Total Assets 102,602,660 104,502,451 9,845,04 1,122,892 - 218,073,043 Deferred outflows of resources Pension 4,177,976 2,785,317 - - 6,963,293 OPEB 1,304,285 869,523 - - - 2,173,808 Unamortized loss on refunding 412,768 412,768 Total Deferred outflows of resources 5,482,261 4,067,608 - - 9,549,869 ANEW TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $108,084,921 $108,570,059 $ 9,845,040 $ 1,122,892 $ $ 227,622,912 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current liabilities $ 6,601,760 $ 2,194,426 $ 1,635,529 $ 632,085 $ - $ 11,063,800 Non-current Liabilities Long-term debt,net of current portion 6,582,090 25,684,183 25,269,127 600 - 64,463,000 Subscription software liability,net of current portion 275,894 148 424,453 Net pension liability 10,069,839 6 - - 16,783,065 OPEB liability 2,633,576 1,75, - - 4,389,294 Unearned revenues 2,344,161 1,061,212 1,464,061 413, 86 5,282,010 Total Non-current Liabilities 21,905,560 35,361,888 26,733,188 1,186 91,341,822 Total Liabilities 28,507,32 37,556,314 28,368,71 ,973,271 102,405,622 Deferred inflows of resources Pension 591,719 394,480 - - - 986,199 OPEB 601,389 400,926 - - - 1,002,315 Leases receivable 1,382,341 1,382,341 Total Deferred Inflows of Re 1,193,108 2,177,747 3,370,855 Net Position Net investment in capital 60,810,337 61,705,531 (26,419,127) (7,455,800) - 88,640,941 Restricted for debt se 866,708 2,917,476 2,892,297 - - 6,676,481 Unrestricted 16,707,448 4,212,991 5,003,153 605,421 26,529,013 Total Net Position 78,384,493 68,835,998 (18,523,677) (6,850,379) 121,846,435 TOTAL LIABILITIES,DEFERRED INFLOWS $108,084,921 $108,570,059 $ 9,845,040 $ 1,122,892 $ $ 227,622,912 OF RESOURCES AN;iii OSITION I Page 165 Page 389 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 13 — SEGMENT DISCLOSURE (Continued) STATEMENTS OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION Year ended December 31,2023 Gray's Old Electric Water Crossing Greenwood Eliminations Grand Total Operating Revenues Sales to consumers $ 32,643,220 $ 17,577,924 $ - $ - $ $ 50,221,144 Other operating revenues 3,315,788 453,640 - - (1,9 1,789,049 Operating expenses (29,911,434) (12,822,134) - 1,980, (40,753,189) Depreciation (3,178,198) (4,826,705) - - (8,004,903) Non-operating revenues 1,137,112 131,799 0 555,830 3,483,134 Income before capital&other contributions 4,006,488 514,517 ,658,400 5 - 6,735,235 Capital contributions,net 1,516,634 851,7 2,368,362 CHANGE IN NET POSITION 5,523,122 1,366,24 1,658,400 0 - 9,103,597 Net Position,Beginning 78,384,493 68,835,998 (18,523,677) ,850,379) 121,846,435 NET POSITION,ENDING $ 83,907,615 $ 70,202,243 $ (16,865,277) $ (6,294,549) $ $ 130,950,032 Year ended December 31,2022 rey's Old , Elect Water 'n Greenwood Eliminations Grand Total Operating Revenues Sales to consumers $ 30,015,1 16,257,163 - $ - $ - $ 46,272,358 Other operating revenues 3,111:62 446,291 - r - (1,802,119) 1,755,801 Operating expenses (29,438,648) 0,136,675) - - 1,802,119 (37,773,204) Depreciation (3,172,350) (4,540,031) - - - (7,712,381) Non-operating revenues(expenses) 269,430 (865,974) 1,362,470 502,441 1,268,367 Income before capital&other con 785,256 1,160,774 11362,470 502,441 - 3,810,941 Capital contributions,net 1.399.041 1,822, 1 3,221,872 CHANGE IN NET POSIT AM 2,184,297 2,983,605 1,362,470 502,441 - 7,032,813 Net Position,Beginni 76,200,196 65,852,393 (19,886,147) (7,352,820) 114,813,622 NET POSITION,ENDING / $ 78,384,493 $ 68,835,998 $ (18,523,677) $ (6,850,379) $ $ 121,846,435 Page 166 Page 390 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 13—SEGMENT DISCLOSURE (Continued) STATEMENTS OF CASH FLOWS Year ended December 31,2023 Gray's Old Electric Water Crossing Greenwood Eliminations Grand Total NET CASH PROVIDED BY(USED IN) Operating activities $ 3,968,229 $ 5,429,865 $ - $ - $ - $ 9,398,094 Capital and related financing activities (4,792,900) (15,011,034) (246,817) (19,947) - (20,070,698) Investing activities 886,221 768,464 100,862 27,774 1,783,321 Net increase(decrease)in cash and cash equivalents 61,550 (8,812,705) (145,955) 7,827 - (8,889,283) Cash and Cash Equivalents,Beginning 29,044,243 20,414,378 2,296,285 295,368 52,050,274 CASH AND CASH EQUIVALENTS,ENDING $ 29,105,793 $ 11,601,673 $ 2,150,330 $ 303,195 $ $ 43,160,991 Year ended December 31,2022 Gray's Old Electric Water Crossing Greenwood Eliminations Grand Total NET CASH PROVIDED BY(USED IN) Operating activities $ 2,653,554 $ 6,003,658 $ - $ - $ - $ 8,657,212 Noncapital financing activities 601,572 342,652 - - - 944,224 Capital and related financing activities 4,522,899 7,248,838 (209,280) 1,260 - 11,563,717 Investing activities 232,803 280,468 16,683 5,712 535,666 Net increase(decrease)in cash and cash equivalents 8,010,828 13,875,616 (192,597) 6,972 - 21,700,819 Cash and Cash Equivalents,Beginning 21,033,415 6,538,762 2,488,882 288,396 30,349,455 CASH AND CASH EQUIVALENTS,ENDING $ 29,044,243 $ 20,414,378 $ 2,296,285 $ 295,368 $ $ 52,050,274 NOTE 14— MARTIS VALLEY GROUNDWATER MANAGEMENT EFFORTS The Martis Valley aquifer underlies about 35,000 acres in both Placer and Nevada counties, near the Town of Truckee. It is the main groundwater supply for numerous public and private entities. This area has seen significant growth in the last few decades with more planned for the future. Maintaining an adequate water supply and protecting water quality are critical for the region's future. The Truckee Donner Public Utility District (TDPUD), Northstar Community Services District (NCSD) and Placer County Water Agency (PCWA) are the three primary public water agencies with jurisdiction in the Martis Valley Groundwater Basin (MVGB). Together, the TDPUD, NCSD and PCWA (Partnership Agencies)partnered to submit a Groundwater Management Plan and to help develop a groundwater model for the Martis Valley basin. The Martis Valley Groundwater Management Plan (GMP) was prepared in 2013 to reflect current water resources planning in the region and to incorporate the latest information and understanding of the underlying groundwater basin. This collaborative effort provided the guidance necessary to align groundwater policy. In addition to the GMP, a computer model of the groundwater basin was developed by the Desert Research Institute, which incorporated available data and enhanced understanding of the groundwater basin. A climate change modeling component out to the end of the century was part of the overall Federal study effort. Page 167 Page 391 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 14—MARTIS VALLEY GROUNDWATER MANAGEMENT EFFORTS (Continued) Partner agencies each adopted the GMP in February 2012 and the model and associated report was completed in 2015. The total cost of the project was approximately $1,000,000, which includes federal funding of approximately$500,000 from the U.S. Bureau of Reclamation and $250,000 from the Lawrence Livermore National Laboratory; and contributions of $150,000 from TDPUD and $100,000 from the other members of the Partnership Agencies. In mid-2016, the California Sustainable Groundwater Management Act of 2014 (SGMA) took effect for which the District was the submitting agency of a SGMA Alternate Submittal in December, 2016 on behalf of the Town of Truckee, Placer County, Nevada County, PCWA, and Northstar CSD (Local SGMA Agencies). The SGMA Alternative Submittal was intended to comply with the new regulations. There was an adopted MOA amongst the six local agencies for this compliance project which covers the time period for preparation of the SGMA Alternative Submittal, possible conditional acceptance of the plan by DWR, and submittal of a first-year annual report. DWR had two years by statute to review the SGMA Alternative Submittal. In 2018, DWR was required to undergo groundwater basin prioritization which is the basis for compliance obligation for SGMA. The MVGB had previously been prioritized as medium priority. DWR's final Determination was to re-prioritize MVGB to low priority. This was a significant act that resulted in a direct reduction in regulatory burden and future regulatory costs that would be required for groundwater management. To ensure continued stewardship and management of the MVGB, the District and its local partners have agreed to return to the 2013 GMP framework which was never fully implemented due to SGMA. There was a kick-off meeting for the GMP in 2019 and the three local water agencies have hired a hydrogeologic consultant to prepare the first annual report as required by the GMP. The consultant's report was presented to the GMP Stakeholder Working Group at the annual meeting in the summer of 2020. Subsequent annual reports were presented to the GMP Stakeholder Working Group covering each water year through 2023 and the GMP Partnership Agencies are in the process of completing a five-year update of the GMP, including a Stakeholder Working Group meeting and a public meeting, all expected to be completed by July, 2024. NOTE 15—CLAIMS AND JUDGMENTS From time to time,the utility is party to various pending claims and legal proceedings.Although the outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the utility's legal counsel that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the utility's financial position or results of operations. NOTE 16— RISK MANAGEMENT The utility is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; workers compensation; and health care of its employees. These risks are covered through the purchase of commercial insurance,with minimal deductibles. Settled claims have not exceeded the commercial liability in any of the past three years. There were no significant reductions in coverage compared to the prior year. Page 168 Page 392 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NOTES TO FINANCIAL STATEMENTS December 31, 2023 and 2022 NOTE 17—CHANGE IN ACCOUNTING PRINCIPLE AND RESTATMENT For 2023, the District implemented Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements (SBITA). GASB 96 establishes requirements for intangible asset and subscription liability accounting based on the principle that SBITAs are financings of the right to use an underlying asset. These changes were incorporated in the District's 2023 and 2022 financial statements. The implementation of GASB Statement No. 96 had the following net effect and the following restatement of the Statement of Net Position items as reported December 31, 2022: CONSOLIDATED STATEMENT OF NET POSITION 2022 Balance as 2022 Previously (Restated) Reported ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current assets $ 69,892,464 $ 69,892,464 Non-current assets: Capital assets 137,597,746 136,970,146 Other non-current assets 10,582,833 10,582,833 Total non-current assets 148,180,579 147,552,979 Total Assets 218,073,043 217,445,443 Deferred outflows of resources 9,549,869 9,549,869 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $227,622,912 $ 226,995,312 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND NET POSITION Current liabilities $ 11,063,800 $ 10,860,653 Non-current Liabilities: Subscription software liability 424,453 - Other non-current liabilities 90,917,369 90,917,369 Total noncurrent liabilities 91,341,822 90,917,369 Total Liabilities 102,405,622 101,778,022 Deferred inflows of resources 3,370,855 3,370,855 NET POSITION Net investment in capital assets 88,640,941 88,640,941 Restricted for debt service 6,676,481 6,676,481 Unrestricted 26,529,013 26,529,013 Total Net Position 121,846,435 121,846,435 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION $227,622,912 $ 226,995,312 Page 69 Page 393 of 449 THIS PAGE IS INTENTIONALLY LEFT BLANK s F r L• I; � 4 Photo: Summer Water Tank Painting Page 70 Page 394 of 449 REQUIRED SUPPLEMENTARY INFORMATION Page 395 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2023 and 2022 COST SHARING DEFINED BENEFIT PENSION PLANS Schedule of the District's Proportionate Share of the Net Pension Liability Cost Sharing Defined Benefit Plans As of June 30 Last Ten Years 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Portion of Net Pension Liability 0.36287% 0.35867% 0.40467% 0.33245% 0.32145% 0.31157% 0.30379% 0.29837% 0.29209% 0.09982 Proportionate Share of the Net Pension Liability $ 18,145,067 $ 16,783,065 $ 7,683,937 $ 14,023,172 $ 12,872,646 $ 11,742,137 $ 11,975,655 $ 10,250,329 $ 8,013,400 $ 6,210,985 Covered Payroll $ 9,853,784 $ 7,872,221 $ 7,762,131 $ 7,619,022 $ 7,602,120 $ 7,375,933 $ 7,108,563 $ 6,670,248 $ 6,162,431 $ 6,278,545 Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll 184.14% 213.19% 98.99% 184.05% 169.33% 159.20% 168.47% 153.67% 130.04% 98.92 Proportionate Share of Plan's Fidicuiary Net Position $ 51,700,409 $ 49,619,385 $ 53,485,582 $ 43,589,560 $ 40,367,745 $ 29,308,590 $ 27,244,095 $ 30,950,578 $ 30,725,516 $ 30,386,101 Plan Fiduciary Net Position as a percentage of the Total Pension Liability 77.86% 74.73% 87.44% 75.66% 75.82% 75.26% 73.31% 75.12% 79.31% 89.17 Page 172 Page 396 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2023 and 2022 COST SHARING DEFINED BENEFIT PENSION PLANS-CONTINUED Schedule of Contributions Cost Sharing Defined Benefit Plans December 31 Last Ten Years 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Contractually Required Contribution(Actuarially Determined) $ 2,129,727 $ 2,080,863 $ 1,844,808 $ 1,746,709 $ 1,872,297 $ 1,890,102 $ 1,670,256 $ 1,478,700 $ 1,312,540 $ 938,637 Contributions in Relation to the Actuarially Determined Contributions 2,129,727 2,080,863 1,844,808 1,746,709 1,872,297 1,890,102 1,670,256 1,478,700 1,312,540 938,637 Contribution deficiency (excess) - - - - - - - - - - Covered Payroll $ 10,063,947 $ 8,871,369 $ 7 704,033 $ 7,889,154 $ 7,494,347 $ 7,358,84Z $ 6,940,748 $ 6,663,230 $ 6,074,329 $ 5,907,091 Contributions as a percentage of covered-employee payroll 21% 23% 0 22% 25% 26% 24% 22% 22% 16% Page 173 Page 397 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2023 and 2022 Schedule of Changes in The District's Net OPEB Liability and Related Ratios Measurement Date: December 31, 2022 2021 2020 2019 2018 2017 Report Date: December 31, 2023 2022 2021 2020 2019 2018 Total OPEB Liability Service Cost $ 240,361 $ 201,835 $ 206,271 $ 168,811 $ 178,856 $ 170,473 Interest 612,305 629,595 621,983 476,373 457,563 448,374 Changes in Benefit Terms - - - - - - Differences Between Expected and Actual Experience (5,797) (271,987) (28,016) 1,814,336 (29,828) Changes of Assumptions 1,007,593 (73,387) (187,044) 306,886 (233,084) Benefit Payments (360,962) (268,688) (281,328) (276,678) (244,700) (214,280) Implicit Rate Subsidy Credit (475,203) (545,407) (546,439) (270,562) (270,061) (254,930) Net Change in Total OPEB Liability $ 1,018,297 $ (328,039) $ (214,573) $ 2,219,166 $ (141,254) $ 149,637 Total OPEB Liability-Beginning of Year 8,150,440 8,478,479 8,693,052 6,473,886 6,615,140 6,465,503 Total OPEB Liability-End of Year(a) $ 9,168,737 $ 8,150,440 $ 8,478,479 $ 8,693,052 $ 6,473,886 $ 6,615,140 Plan Fiduciary Net Position Net Investment Income $ (675,758) $ 444,083 $ 378,904 $ 473,144 $ (110,318) $ 167,459 Contributions Employer-District's Contribution 475,962 381,988 391,334 376,674 294,698 256,280 Employer-Implicity Subsidy 475,203 545,407 546,439 270,562 270,061 254,930 Benefit Payments,Including Refunds of Employee Contributions (360,962) (268,688) (281,328) (276,678) (244,700) (214,280) Implicit Rate Subsidy Fulfilled (475,203) (545,407) (546,439) (270,562) (270,061) (254,930) Administrative Expense (1,638) (1,259) (1,353) (1,209) (557) (519) Net Change in Plan Fiduciary Net Position $ (562,396) $ 556,124 $ 487,557 $ 571,931 $ (60,877) $ 208,940 Plan Fiduciary Net Position-Beginning of Year 3,761,146 3,205,022 2,717,465 2,145,534 2,206,411 1,997,471 Plan Fiduciary Net Position-End of Year(b) $ 3,198,750 $ 3,761,146 $ 3,205,022 $ 2,717,465 $ 2,145,534 $ 2,206,411 District's Net OPEB liability-End of Year=(a)-(b) $ 5,969,987 $ 4,389,294 $ 5,273,457 $ 5,975,587 $ 4,328,352 $ 4,408,729 Plan Fiduciary Net Position as Percentage ofthe Total OPEB Liability 34.9% 46.1% 37.8% 31.3% 33.1% 33.4% Covered-Employee Payroll $ 7,722,728 $ 7,331,605 $ 7,149,490 $ 7,604,103 $ 7,400,587 $ 7,202,518 District's Net OPEB Liability asa Percentage of Covered-Employee Payroll 77.30% 59.87% 73.76% 78.58% 58.49% 61.21% Notes to Schedule:The District adopted GASB 75 for the fiscal Year Ending December 31,2018 Page 174 Page 398 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2023 and 2022 Other Post Employment Benefits-Schedule of Investment Returns Measurement Date: December 31, 2022 2021 2020 2019 2018 2017 Report Date: December 31, 2023 2022 2021 2020 2019 2018 Annual Money-Weighted Rate of Return, Net of Investment Expense -17.70% 13.62% 13.67% 21.56% -4.94% 8.30% The annual money-weighted rate of return,net of investment expenses,is the net investment income for the year divided by the average net positon for the year(less investment expenses). Notes to Schedule:The District adopted GASB 75 for the fiscal Year Ending December 31,2018 Other Post Employment Benefits-Schedule of Contributions Measurement Date: December 31, 2022 2021 2020 2019 2018 2017 Report Date: December 31, 2023 2022 2021 2020 2019 2018 Actuarially Determined Contribution $ 836,165 $ 814,095 $ 827,767 $ 532,225 $ 614,761 $ 569,210 Less:Actual Contributions 951,165 927,395 937,773 647,236 564,759 511,210 Contribution Deficiency(Excess) $ (115,000) $ (113,300) $ (110,006) $ (115,011) $ 50,002 $ 58,000 Covered-Employee Payroll $ 7,722,728 $ 7,331,605 $ 7,149,490 $ 7,604,103 $ 7,400,587 $ 7,202,518 Contributions as a Percentage of Covered-Employee Payroll 12.32% 12.65% 13.12% 8.51% 7.63% 7.10% Notes to Schedule:The District adopted GASB 75 for the fiscal Year Ending December 31,2018 Page 175 Page 399 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT REQUIRED SUPPLEMENTARY INFORMATION December 31, 2023 and 2022 Other Post Employment Benefits -Actuarial Assumptions Actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023 were from the December 21, 2022 valuation. Methods and assumptions used to determine contributions: Assumptions and Methods Actuarial Cost Method Entry age normal, level percent of pay Amortization Method Closed period, level percent of pay Amortization Period 13 years Inflation 2.30% Assumed Payroll Growth Year 1 2.75% Healthcare Trend Rates 6.50%, trending down to 3.94% over 52 years Rate of Return on Assets 5.10% Discount Rate used to measure total OPEB liability 6.25% Mortality Rate CalPERS Rates utilizing the decrement table Mort and Disb Rates—PA Misc from the CalPERS OPEB assumption model revised May 14, 2018. Retirement Rates CaIPERS Rates based on CaIPERS assumption model revised May 14, 2018 Page 176 Page 400 of 449 r ?,. _�?; 'y. '`„�-�C�. •;-�,�`��, 5�- -c�.R�. � 51s'F g,,n. '; ,�sX 1�-'�, �. N. �tR ;!�, �V .� F T ,,•iw ♦'S- �'.�: "K`y:. '`:';iy T Ar IT-0- �ao `y_ Tam �S• �y�. ,� r !+, � '�r`„ J QAxi Y�nli�, �. �.��It{d�T,3,yr�' r, y�.,+"� 9j��f � �1 i,���` � 7k ''�� ' :y ,��•yr., i era r � t r,.c.; a Vv' - _ wy T � a � - '• •fy rA�lp" 'r� � r d�,-` 't ! �r �4"I"�k'� ` .. -' ' Photo: Spring Conservation Garden clean-up day - r',.. •i d 4 , JNp 1 1 �, ,{�I�I I< �{ - �T Ir Lx.�� }lwt� �,.1+tii 4.., T _ " � Y � �� !(�,4j f� Ir •r F�ISv r,l.�r � I � 6, 1 l � � i e;,�4 i 1 �'1. _ •?I 1I lI 5 � � S � I'.iJ J � i I _�f� I a _ ti� r y SUPPLEMENTARY INFORMATION Page 402 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2023 CONSOLIDATING STATEMENT OF NET POSITION —PAGE 1 OF 2 As of De ce m be r 31,2023 Component Units Electric Operations Water Operations Crossing Old Greenwood Eliminations Totals ASSETS AND DEFERRED OUTFLOWS OF RESOURCES CURRENT ASSETS Cash and cash equivalents Operating $ 7,674,787 $ 4,135,322 $ 1 $ 303,195 $ $ 12,274,252 Designated 13,595,491 ',908,360 - - 17,503,851 Restricted 7,674,875 3,50i�430 989,382 13,170,687 Total cash and cash equivalents 28,945,153 11,550,112 150,330 303,195 42,948,790 Accounts receivable,net 3,016,506 939,264 - - 3,955,770 Unbilled revenues 3 68,050 1,417,437 - - 4,985,487 Special assessments receivable ' - 4,798 896 850,919 9,043,613 Accrued interest receivable 186,717 f• 98,749 1 - 291,527 Leases receivable current portion - 39,261 39,261 Materials and supplies 1,790,221 373,456 2,163,677 Prepaid expenses 490,520 842,719 1,333,239 Other 68,010 72,405 � - - 140,415 Total Current Assets 38,065,177 15,338,201 344,287 1,154,114 64,901,779 NON-CURRENT ASSETS Operating Investments 3,804,247 - 3,804,247 Designated Investments 5,579,209 - 5,579,209 Leases receivable,net of current portion - 1,389,598 1,389,598 Capital Assets Utility plant 101,041,405 685,498 248,726,903 Accumulated depreciation and amortization (38,718,570) (67,968,937) (106,687,507) Construction work in progress 1,365,168 5,266,098 6,631,266 Total capital assets 63,688,003 84,982,659 148,670,662 Total Non-Current Assets 69,267,212 90,176,504 159,443,716 TOTAL ASSETS ' 107,332,389 105,514,705 10,344,287 1,154,114 224,345,495 DEFERRED OUTFLOWS OF RESOURCES Pension 4,052,068 2,701,378 6,753,446 OPEB 1,841,729 1,227,819 3,069,548 Unamortized loss on refunding - 379,966 379,966 Total deferred outflows resources 5,893,797 4,309,163 - 10,202,960 TOTAL ASSETS AND OUTFLOWS OF ES $ 113,226,186 $ 109,823,868 $ 10,344,287 $ 1,154,114 $ $ 234,548,455 Page 179 Page 403 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2023 CONSOLIDATING STATEMENT OF NET POSITION —PAGE 2 OF 2 As of December 31,2023 Component Units Electric Operations Water Op Gray's Crossin Old Greenwood Eli s Totals NET POSITION AND LIABILITIES CURRENT LIABILITIES Other liabilities Accounts payable $ 3,498,804 $ 76 , $ $ $ 4,265,707 Customer deposits 353,559 1001,10 453,588 Subscription software liability,current portion 120,379 64,820 185,199 Other 1,152,277 499,370 1,651,647 Total other liabilities 5,125,019 1,431,122 6,556,141 Current liabilities payable from restricted assets: Current portion of long-term debt �145,000 920,000 1,2 570,300 2,905,300 Accrued interest payable 35,523 133,098 463, 96,525 728,993 Total Current Liabilities Payable from Restricted Assets 180,523 1,053,098 666,825 3,634,293 Total Current Liabilities 5,305,542 2,484,220 OW 3,847 666,825 10,190,434 NON-CURRENT LIABILITIES Long-term debt,net of discounts and premiums 6,426,80 24,690,412 23,959,331 6,357,300 61,433,844 Subsrciption software liability,net of current portion 155,515 83,739 - - 239,254 Net pension liability 10,887,040 7,258,027 18,145,067 OPEB liability 3,581,992 2,387,995 - - 5,969,987 Unearned revenues 2,349,081 1,024,494 1,516,386 424,538 5,314,499 Total non-current liabilities 23,400,429 3W,444,667 25,475,717 6,781,838 91,102,651 Total Liabilities 28,705,971 37,928,887 27,209,564 7,448,663 101,293,085 DEFERRED INFLOWS OF RESOURCES — Pension 322,841 215,228 538,069 OPEB 289,759 193,172 482,931 Leases receivable - 1,284,338 1,284,338 Total deferred inflows of resources 612,600 1,692,738 2,305,338 NET POSITION Net investment in ssets 63,852,291 60,784,872 (25,229,331) (6,927,600) 92,480,232 Restricted for a 902,528 2,331,910 2,894,989 - 6,129,427 Unrestricted 19,152,796 7,085,461 5,469,065 633,051 32,340,373 Total Net Position 83,907,615 70,202,243 (16,865,277) (6,294,549) 130,950,032 TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND ET POSITION $ 113,226,186 $ 109,823,868 $ 10,344,287 $ 1,154,114 $ $ 234,548,455 Page 180 Page 404 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2023 MRIIIIIIIIIII CONSOLIDATING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITIor ' For the Year Ended December 31,2023 ' Component Units Electric Operations Water Operations Gray'. Crossing Old Greenwood Eliminations Totals OPERATING REVENUES Sales to customers $ 32,643,220 17,574!924 $ $ $ , $ 50,221,144 Interdepartmental sales 1,405,021 3,282 (1,408,303) - Standby fees 16,303 99,738 116,041 Cap and trade proceeds 401,879 - 401,879 Other 1,492,585 35N20 (572,076) 1,271,129 Total Operating Revenues 35,959,008 18,031,564 (1,980,379) 52,010,193 OPERATING EXPENSES Allb— Purchased power 14,068,454 - 14,068,454 Operations and maintenance 8,924,800 8,080,072 (1,408,303) 15,596,569 Consumer services 1,775,813 975,497 2,751,310 Administration and general 5,142,367 3,766,565 (572,076) 8,336,856 Depreciation and amortization 3,178,198 4,826,705 8,004,903 Total Operating Expenses 33,089,632 17,648,839 (1,980,379) 48,758,092 Operating Income 2,869,376 382,725 3,252,101 NON-OPERATING REVENUE(EXPENSES) Special tax revenue - - 2,980,447 838,125 3,818,572 Investment income(loss) 1,432,200 1,170,094 98,726 27,774 2,728,794 Interest expense (3107,747) 1,107,166) (1,434,908) (304,293) (3,154,114) Amortization credit(expense) 89 40,969 (5,205) - 46,053 Other non-operating revenues - 20,567 3,400 23,967 Other non-operating expenses - (1,227) (9,176) (10,403) Gain on disposition of assets 2,370 27,895 30,265 Total Non-Operating Revenue(Ex 1,137,112 131,792 1,658,400 555,830 3,483,134 Income Before Contributi 4,006,488 514,517 1,658,400 555,830 6,735,235 CAPITAL CONTRIBUTIONS 1,516,634 851,728 - 2,368,362 CHANGE IN NET POSITION 5,523,122 1,366,245 1,658,400 555,830 9,103,597 NET POSITION-Beginning of Year 78,384,493 68,835,998 (18,523,677) (6,850,379) 121,846,435 NET POSITION-END OF YEAR $ 83,907,615 $ 70,202,243 $ (16,865,277) $ (6,294,549) $ $ 130,950,032 Page 181 Page 405 of 449 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 406 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2023 CONSOLIDATING STATEMENT OF CASH FLOWS—PAGE 1 OF 2 For the Year Faded December 31,2023 Component Units Electric Operations Water Operations 's Crossing Old Greenwood tions Total CASH FLOWS FROM OPERATING ACTIVITIES Received from customers $ 34,652,859 $ 17,800,398 $ $ $ 980,379) $ 50,472,878 Paid to suppliers for goods and services (23,887,753) (9,020,587) 1,980,379 (30,927,961) Paid to employees for services (6,796,877) (3,349,946) - (10,146,823) Net cash provided by operating activities 3,968,229 5,429,865 9,398,094 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital expenditures for utility plant (5,126,471) (13,611,907) (18,738,378) Net proceeds(costs)from disposal of assets 2,370 27,895 30,265 Capital contributions,connection and facility fees 900,062 �631,193 1,531,255 Special assessments receipts - 3,408 3,408 Special tax receipts - 2*( 95',000) 40477 819,905 3,224,680 Principal payments on subscription liability (132,0IR (71,102) - (203,148) Interest payments on subscription liability (5,634) (3,033) (8,667) Principal payments on long-term debt (150,289) (958,771) (528,200) (2,832,260) Interest payments on long-term debt (280,892) (1,028,717) (1,456,592) (311,652) (3,077,853) Net cash provided(used)by capital and related financing act, (4,792,900) (15,011,034) (246,817) (19,947) (20,070,698) CASH FLOWS FROM INVESTING ACTIVITIES Interest income received 886,221 8,464 100,862 27,774 1,783,321 Net cash provided by investing activities 886,221 8,464 100,862 27,774 1,783,321 Net increase(decrease)in cash and cash eq 61,550 •(8,812,705) (145,955) 7,827 (8,889,283) CASH AND CASH EQUIVALENTS—Beginning of Year 29,044,243 20,414,378 2,296,285 295,368 52,050,274 CASH AND CASH EQUIVALENTS—ENDOFYEAR 29,105,793 $ 11,601,673 $ 2,150,330 $ 303,195 $ $ 43,160,991 Page 183 Page 407 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT SUPPLEMENTARY INFORMATION December 31, 2023 CONSOLIDATING STATEMENT OF CASH FLOWS—PAGE 2 OF 2 For the Year Ended December 31,2023 -40 Component Units Electric Operations Water Operations Gray's Crossing, Old Greenwood Bi ns Total RECONCILIATION OF OPERATING INCOMETO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income $ 2,869,376 $ 382, $ $ $ 3,252,101 Noncash items included in operating income Depreciation and amortization 3,178,197 4,826,703 8,004,900 Depreciation charged to other accounts �t67 189,311 466,878 Accounts receivable (1,462,020) (237,837) (1,699,857) Materials and supplies (422,203) (71,155) (493,358) Prepaid expenses (8,009) (395,186) (403,195) Accounts payable (1,496,379) 149,751 (1,346,628) Customer deposits 155,872 46,515 202,387 Deferred pension contributions 773,573 515,715 1,289,288 Deferred inflow,leases amortization - (98,003) (98,003) Leases receivable - 58,160 58,160 Other current liabilities 102,25 63,166 165,421 NET CASH PROVIDED BY OPERATING ACTIVITIES 3,968,229 5,429,865 $ $ $ $ 9,398,094 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE BALANCE SHEET Operating 7,674,78 4,135,322 160,948 303,195 $ $ 12,274,252 Designated 13,595,491 3,908,360 - 17,503,851 Restricted bond funds-current 7,674,875 3,506,430 1,989,382 13,170,687 Operating investments-nor-current - 3,804,247 - 3,804,247 Designated investments-non-current 5,579,209 - 5,579,209 Total Cash and Investments 34,524,362 15,354,359 2,150,330 303,195 52,332,246 Less: Long-te#Restments , (5,579,209) (3,804,247) - - (9,383,456) Mark to market adjustment 160,640 51,561 - - 212,201 TOTAL CASH AND CASH EQUIVALENTS $ 29,105,793 $ 11,601,673 $ 2,150,330 $ 303,195 $ $ 43,160,991 Page 184 Page 408 of 449 STATISTICAL SECTION aF off c' f i a a _ _ r P �• �, .Jam- � � '� - - -1,.. � "R Photo: Water Crew 2023 Page 85 Page 409 of 449 STATISTICAL SECTION INTRODUCTION AND CONTENTS INDEX This part of the District's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the District's overall financial health. Contents Page Range Financial Trends 87- 88 Information trends to help the reader understand how the District's financial performance and condition have changed over time. Revenue Capacity 89- 91 Information trends to help the reader understand the District's revenue sources. Debt Capacity 92 - 93 Current and past trends regarding the level of debt existing and the Debt capacity of the District. Demographic and Economic Information 94 - 95 These schedules help the reader understand the environment within which the District's financial activities occur. Operating Information 96 - 98 Service and infrastructure information to help the reader understand the District's customers and operational impacts on financial information. Page 86 Page 410 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT +# CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION 10-Years Ended December31, 2023 2022 2021 2020 2019 2016 2015 2014 OPERATING REVENUES Sales to customers $ 50,221,144 $ 46,272,358 $ 41,835,534 $ 38,988,024 $ 37,029,653 ,3 , 86,412 $ 34,46 $ 33,026,587 $ 30,818,856 $ 30,331,953 Standby fees 116,041 122,811 124,130 133,470 137,580 143,320 154, 160,670 169,010 174,250 Cap and trade proceeds 401,879 514,604 847,185 1,444,498 1,503,495 1,186,320 1,140,372 1,172,306 965,402 836,193 Other 1,271,129 1,118,386 693,618 1,176,035 662,843 868,965 2,577,865 1,244,146 1,023,729 1,286,200 Total Operating Revenues 52,010,193 48,028,159 43,500,467 41,742,027 39,333,571 37,685,017 38,335,353 35� 32,976,997 32,628,596 OPERATING EXPENSES Purchased power 14,068,454 16,823,869 13,560,417 11:285,537' 10,754,898 11,001,8* 11,327,300 11,511,308 11,348,241 11,414,498 Operations and maintenance 15,596,569 12,037,231 12,464,186 11340,451 9,768,460 9,056,263 10,241,955 6,951,273 6,804,271 6,762,174 Consumer SerNCes 2,751,310 2,370,280 2,255,853 2,080,714 2,667,957 2,152,817 2,593,005 2,130,422 2,159,522 2,318,900 Administration and general 8,336,856 6,541,824 6,366,879 6,165,611 5,772,396 5,002,288 5,008,231 4,331,827 4,054,439 3,976,027 Pension expense(1) 1,220,591 565,373 806,399 OPEB expense(1) 719,218 Depreciation 8,004,903 7,712,381 7,917,950 7,974,868 7,420,2A 6,878,860 6,531,640 6,237,033 5,960,520 5,601,301 Total Operating Expenses 48,758,092 45,485,585 42,565,2 47,181 36,383,962 3 35,702,131 33,101,672 30,892,366 30,879,299 Operating Income 3,252,101 2,542,574 935,18' 2,949,609 �92,9�1 2,633,222 2,502,037 2,084,631 1,749,297 NON-OPERATING REVENUE(EXPENSES) Special tax revenue 3,818,572 3,655,524 3,431,174 375,327 68,849 3,342,077 3,290,186 3,306,080 3,356,052 Investment income 2,728,794 (747,522) (185,269) 73,66 1,038,5 694,432 420,490 390,310 393,002 510,962 Interest expense (3,154,114) (2,727,946) (2,369,633) 530,616) (2,647,817) (2,753,906) (2,868,084) (3,060,079) (3,141,758) (3,568,730) Amortization 46,053 .6,901 (38,250) (38,250) (38,250) (38,250) (38,250) (17,804) 10,150 26,297 Other non-operating revenues 23,967 1,726,783 83,524 41,766 48,096 21,332 42,057 63,008 34,126 60,066 Othernonoperating expenses (10,403) 690,460) (79,025) (238,590) (38,160) (31,691) (26,377) (150,000) (251,753) (344,353) Gain(loss)on disposition of assets 30,265 48,087 48,339 238,885 13,748 1,284 7,538 (1,514) 30,990 (93,925) Total Non-Operating Revenue(Expenses) 3,483,1 1,268,367 890,860 1,422,190 1,728,488 1,162,050 879,451 514,107 380,837 (53,631) Income Before Contributions 6,7 3,810,941 1,826,042 4,317,0jor 4,678,097 4,754,981 3,512,673 3,016,144 2,465,468 1,695,666 CAPITAL&OTHER CONTRIBUTIONS 2,368,3 3,221,872 6,351,674 95 4,683,099 4,652,720 2,096,828 1,699,110 1,430,510 994,056 CHANGE IN NET POSITION 9,103,597 7,032,813 8,177,716 6,360,831 9,361,196 9,407,701 5,609,501 4,715,254 3,895,978 2,689,722 Net Position-Beginning of Year,before ad' 114,813,622 106,635,906 100,275,075 90,913,879 84,857,643 79,248,142 74,532,888 70,636,910 82,235,941 Less: Restatement f 2 (3,351,465) (14,288,753) accounting )(3) Net Position-BeginningofY justed 121,846,43 4,813,622 106,635,906 100,275,075 90,913,879 81,506,178 79,248,142 74,532,888 70,636,910 67,947,188 NET POSITION-END OF YEAR $130,950,032 6,435 $114,813,622 $106,635,906 $100,275,075 $ 90,913,879 $ 84,857,643 $ 79,248,142 $ 74,532,888 $ 70,636,910 (1)Pension and OPEB costs seperatel tated in 2015 and 2016. For r years,these costs are included Operations and maintenance,Consumer services,and Administration and general categories,as applicable. (2)In 2018,the District adopted GASB Statement 75,Accountin ancial Reporting for Postemployment Benefits other than Pensions. The beginning of year net position was adjusted for this change. (3)In 2014,the District adopted GASB Stateme Accou Financial Reporting for Pensions. The beginning of year net position was adjusted for this change. Page 187 Page 411 of 449 TRUCKEE DONNER PUBLIC UTILITY DISTRICT NET POSITION BY COMPONENT AND SEGMENT 10-Years as of December 31, 2023 2022 2021 2020 2019 2017 2016 2015 2014 NET POSITION by COMPONENT,as of December 31, Net investment in capital assets $ 92,480,232 $ 88,640,941 $ 86,889,607 $ 79,111,738 $ 74,841,97 66,843,642 $ 55,267, 52,052,148 $ 47,043,317 $ 39,661,738 Restricted 6,129,427 6,896,168 7,248,976 11,439,913 11,052, 9,742,741 9,288,950 73,009 8,569,701 10,521,661 Unrestricted 32,340,373 26,309,326 20,675,039 16,084,255 144180,435 14,327,496 20,301,607 985 18,919,870 20,453,511 Net Position,Total $ 130,950,032 $ 121,846,435 $ 114,813,622 $ 106,635,906 $ 100,275,075 $ 90,913,879 $ 84,857,643 $ 79,248,1 $ 74,532,888 $ 70,636,910 CHANGE IN NET POSITION to PRIOR YEAR,Amount Net investment in capital assets $ 3,839,291 $ 1,751,334 $ 7,777,869 $ 4,269,76 7,998,332 $ 11,576,556 $ 3,214,938 $ 5,008,831 $ 7,381,579 $ (3,282,293) Restricted (766,741) (352,808) (4,190,937) 387,247 9,925 453,791 515,941 203,308 (1,951,960) (574,461) Unrestricted 6,031,047 5,634,287 4,590,784 1,703,820 3 5,974,111 1,878,622 (496,885) (1,533,641) (7,742,277) Total Change in Net Position from Prior Year $ 9,103,597 $ 7,032,813 $ 8,177,716 $ 6,360,831 $ 9,361,196 $ 6,056,236 $ 5,609,501 $ 4,715,254 $ 3,895,978 $ (11 599,031) CHANGE IN NET POSITION to PRIOR YEAR,Percentage 1W Net investment in capital assets 4.3% 2.0% 9.8% 5.7% 12.0% 20.9% 6.2% 10.6% 18.6% -7.6% Restricted -11.1% -4.9% -36.6% 3.5% 13.4% /o 5.9% 2.4% -18.6% -5.2% Unrestricted 22.9% 27.3% 28.5% 11.8% 0_4% /o 10.2% -2_6% -7_5% -27.5% Total Change in Net Position from Prior Year 7_5% 6_1% 7_7% 6_3% 7_1% 7_1% 6_3% 5_5% -14.1% For more information on the change in Net Position;refer to next page for 10 Years of CONSOLIDATED STATEMENTS OF REVENUES,EXPENSES AND CHANGES IN NET POSITION NET POSITION,BY COMPONENT,BY SEGMENT,as of December 31 Net investment in capital assets Electric Operations $ 63,852,291 $ 60,810,337 1,480,384 $ 59,467,730 $ 56,177,123 $ 50,048,040 $ 43,501,844 $ 42,500,995 $ 41,484,835 $ 37,197,945 Water Operations 60,784,872 61,705,531 60,813,445 56,437,825 56,721,963 56,123,709 52,216,044 50,920,550 47,786,674 45,415,680 Gray's Crossing CFD (25,229,331) (26,419,127) (27,463,922110_(28,408,717) (29,263,512) (30,163,307) (30,948,102) (31,557,897) (32,137,692) (32,607,487) Old Greenwood CFD (6,927,600) (7,455,800) (7,940,300) (8,385,100) (8,793,600) (9,164,800) (9,502,700) (9,811,500) (10,090,500) (10,344,400) Net investment in capital assets,total $ 92,480,232 $ 88,640,941 $ 86,889,607 $ 79, 111,738 $ 74, 441,974 $ 66, 443,642 $ 55, 667,086 $ 52, 552,148 $ 47, 443,317 $ 39, 661,738 Restricted Electric Operations $ 902,528 $ 872,435 $ 1,068,491 $ 2,354,515 $ 2,455,342 $ 1,777,693 $ 1,842,553 $ 1,316,355 $ 944,929 $ 1,109,740 Water Operations 2,331,910 2,932,265 3,351,806 6,273,747 5,803,021 5,114,785 4,576,780 4,695,114 4,817,195 6,659,078 Gray's Crossing CFD 2,894,989 3,091,468 2,828,679 2,811,651 2,794,303 2,850,263 2,869,617 2,761,540 2,807,577 2,752,843 Old Greenwood CFD Restricted,total $ 6,129,427 $ 6,896,168 $ 7 248 976 $ 11 439 913 $ 11 052 666 $ 9742741 $ 9 288 950 $ 8 773 009 $ 8 569 701 $ 10,521,661 Unresticted Electric Operations $ 19,152,796 Aw 16,701,721 $ 13,651,321 $ 10,294,409 $ 8,653,888 $ 8,594,312 $ 10,762,466 $ 7,920,940 $ 5,912,854 $ 6,528,260 Water Operations 7,085,461 4,198,202 1,687,142 600,254 519,901 734,026 4,682,775 5,875,984 8,770,727 10,054,081 Gray's Crossing CFD 5,469,06W 4,803,982 4,749,096 4,635,070 4,670,778 4,442,898 4,256,091 3,976,683 3,561,565 3,193,320 Old Greenwood CFD 653,051 PF 605,421 587,480 554,522 535,868 556,260 600,275 649,378 674,724 677,850 Unresticted,total $ 32,340,373 $ 26,309,326 $ 20, 775,039 $ 16, 884,255 $ 14, 880,435 $ 14, 227,496 $ 20, 001,607 $ 18, 222,985 $ 18, 119,870 $ 20, 553,511 Page 188 Page 412 of 449 Electric and Water-Account Type Mix and Rates Last 11 Years Electric Utility Average Number of Accounts Typical Residential Avera a Monthly Bill Average Residential Residential Non- Rate Year Primary Secondary Residential Total Residential I Primary Secondary Primary SecaWary Increase Non-Residential @ 500 KwH @ 500 KwH @ 785 KwH @ 4 wH Prim.I Secon. (1) (1) (2) Mix (3) (3) (4) (4) (5) 2023 5,160 7,868 1,654 14,682 89%1 11% $98.83 $109.03 $141.18 $95.51 6.5%1 6.7% 2022 5,129 7,812 1,661 14,602 89%111% $92.18 $102.48 $132.56 $89.50 8.3%19.0% 2021 4,971 7,789 1,656 14,416 89%1 11% $84.70 $94.20 $122.4;01$82.10 2.0%1 3.0% 2020 4,898 7,659 1,619 14,176 89%111% $82.33 $91.83 20.04 $79.73 1.8%12.7% 2019 4,810 7,565 1,585 13,960 89%1 11% $80.25 $89.75 $117.96 $77.65 2.4%1 3.7% 2018 4,798 7,462 1,558 13,818 89%111% $77.50 $115.20 $74.89 1.9%13.0% 2017 4,784 7,389 1,535 13,708 89%1 11% $75.35 5 $113.05 $72.74 1.7%1 2.6% 2016 4,738 7,303 1,527 13,568 89%111% $73.51 83.01 $111.21 $70.90 0.0%10.0% 2015 4,642 7,235 1,512 13,389 89%111% $73 $83.01 $111.21 $70.90 0.0 %.0 2014 4,646 7,157 1,517 13,320 89%1 11% $83.01 111.21 $70.90 0.0 0 1 0.0% 2013 4,611 7,116 1,517 13,244 89%1 11% 1 $83.01 1.21 $70.90 0.0%1 0.0% (A): 5yr CAGR 1.5% 1.1% 1.2% 1.2% N/A 5. 4.2% 5.0% N/A 10yrCAGR 1.1% 1.0% 0.9% 1.0% N/A 3.0% 2.4% 3.0% N/A Water Utility Average Number of Accounts Typical Residential Average Monthly Bill-5000 Gallons of Use column Non- Excluding Including column column Annual Year Residential not used Residential Total 'dential I PumpZone PumpZone not used not used Increase N 'dential Charge Charge(PZC) Including (6) (2) Mix (7) (7) PZC 2023 12,845 764 13,609 9 1 6% $94.96 $100.76 6.3% 2022 12,754 772 13,526 945 $87.95 $94.80 9.0% 2021 12,635 65 13,400 94%1 $80.69 $86.97 10.7% 2020 12,505 '(709 48 13,253 94%1 6 $73.56 $78.58 3.3% 2019 12,261 65 13,126 93%17% $71.44 $76.05 3.5% 2018 12,317 13,026 95%15% $69.32 $73.51 3.4% 2017 12,218 06 12,924 95%15% $67.30 $71.07 5.3% 2016 12,121 06'A 12,827 94%16% $64.12 $67.47 5.8% 2015 12,012 704 12,716 94%1 6% $60.78 $63.75 4.8% 2014 11,915 699 12,614 94%1 6% $58.40 $60.84 3.0% 2013 11,809 706 12,515 94%1 6% $56.95 $59.04 0.0% (A): 1 Syr CAGR 0.8% 1.5% 0.9% N/A 6.5% 6.5% N/A IOyrCAGR 0.8% 0.8% 0.8% N/A 5.2% 5.5% N/A So ckee Donner Public Utili rict records Notes: (1) Two main residential rate categ s;Primary(P)and Secondary(S);with mix currently 40%P and 60%S from 10 years ago 39%P and 61%S. Also see(6). (2) Non-Residential account type in ludes commerical businesses and govermental agencies. Commercial average monthly bills are not presented,as commerical accounts monthly bills vary widely by account based on meter size and usage. (3) Average for Primary and Secondary residential,at same KwH usage. Amounts for(3)and(4)include Public Benefit and Solar California mandates. (4) Average for Primary and Secondary residential,at 3 year average KwH usage for the account type P and S. Also see 2nd half of note(3). (5) Average annual rate increase for P I S based on(4)usage averages. (6) The average number of accounts is annual average for the year,the number of accounts each month varies. (7) Residential average includes Monthly Serice Fee,Usage Fee based on Volume,and Pump Zone charge based on elevation zone. Pump Zone 1 charge is zero. Accounts are in 1 of 7 pump zones of Distict,based on elevation. The Including Pump Zone average is weighted average based on number of accounts per zone. (A) Compounded Annual Growth Rate(CAGR)metrics for 2023 compared to respective number of years(yr)prior Page 89 Page 413 of 449 Truckee Donner Public Utility District (TDPUD) Electric and Water Utilities - FY 2023 Regional Average Monthly Residential Bill Comparison Electric-Typical Monthly Bill* Water-Typical Monthly Bill SDG&E* $253.75 Olympic Valley PSD 1 1 $124.72 SCE* $182 94 PG&E* $177.58 a Springs CWD 1 $122.80 Liberty $13J.65 LADWP* $125.71 Plumas-Sierra* Tahoe City PUD $107.98 $122.65 Pasadena* $120.66 Donner Summit PUD $107.27 Azusa* $115.78 SMUD* M $114.72 UD Inc Pump(5) $100.76 TDPUD Secondary(2) $109.03 Modesto ID* $105.72 Northstar CSD $99.83 TDPUD Blended(3) $104.95 Merced ID* $101.56 Redding $100.55 Pee TDPUD Exc Pump(4) $94.96 TDPUD Primary(1) $98.83 San Francisco PLC $93.19 Imperial ID* $98.61 Lodi* $98 North Tahoe PUD $81.42 Lompoc* .80 Riverside* I 96.40 South Tahoe PUD $67.57 Palo Alto* $95.70 Anaheim $94.60 Nevada Irrigation District $63.26 Roseville* $90.49 Turlock ID* $87.68 Santa Clara* Sacramento SWD $55.54 6 $0 $100 $150 $200 $250 $300 $0 $20 $40 $60 $80 $100 $120 $140 TDPUD compiled this information from a review of each respective District's website for applicable ordinances/rates information.Monthly bills assume a typical customer consumption of 500 kWh per month in electricity and 5,000 gallons per month in water (1)Primary residence accounts 40% (4)Excluding Pump Zone charge (2)Second home residence accounts 60% (5)Including Pump Zone charge,the weighted average (3)Weighted average of(1)and(2) of the 7 pump zones. Note-Second homes average KwH usage is historically 54%of Primary homes KwH average usage Pump zone charges are based on water elevation zones of Weighted average for utilities with Summer and Winter rates service territory. Page 190 Page 414 of 449 Truckee Donner Public Utility District Ten Largest Customers and Sales Mix Current Year and Nine Years Ago Electric Utility 2023 2014 Customer %of Total Customer %of Total Customer(1)(2) Revenue Rank Revenue Revenue Rank Revenue Tahoe Forest Hospital $ 1,236,869 1 3.8% $ 870,912 2 4.3% Tahoe Truckee Sanitation Agency 1,193,773 2 3.7% 903,949 1 4.5% Private Company,A 738,152 3 2.3% 0.0% Tahoe Truckee Unified School District 545,659 4 1.7% 382,617 3 1.9% Private Company, B 382,919 5 1.2% 0.0% Private Company, C 358,889 6 1.1% 218,738 8 1.1% Private Company, D 306,906 7 0.9% 281,800 5 1.4% Private Company, E 305,426 8 0.9% 313,663 4 1.6% Town of Truckee 299,922 9 0.9% 223,720 7 1.1% Truckee Donner Recreation and Park District 273,612 10 0.8% 0.0% Private Company, F 237,597 6 Private Company, G 196,188 9 Private Company, H 168,997 10 Total,Top 10 Customers $ 5,642,127 17.3% $ 3,798,180 18.8% Total Sales to Customers $ 32,643,220 100.0% $ 20,229,134 100.0% Residential $ 18,832,948 57.7% $ 11,414,119 56.4% Sales Mix Commercial $ 9,407,952 28.8% $ 5,724,152 28.3% Public Authorities $ 4,402,320 13.5% $ 3,090,862 15.3% Water Utility 2023 2014 Customer %of Total Customer %of Total Customer(1) Revenue Rank Revenue Revenue Rank Revenue Private Company, D $ 204,980 1 1.2% $ 156,375 1 1.5% Private Company, C 148,445 2 0.8% 111,862 2 1.1% Tahoe Truckee Unified School District 60,712 3 0.3% 44,709 5 0.4% Truckee Donner Recreaton and Park District 57,705 4 0.3% 57,254 3 0.6% Tahoe Forest Hospital 54,463 5 0.3% 40,655 6 0.4% Private Company, 1 51,229 6 0.3% 29,974 9 0.3% Private Company,J 48,850 7 0.3% 48,082 4 0.5% Private Company, K 45,484 8 0.3% 30,226 7 0.3% Town of Truckee 43,622 9 0.2% 0.0% Private Company, L 37,638 10 0.2% 0.0% Private Company, M 30,168 8 Private Company, N 24,878 10 Total,Top 10 Customers $ 753,129 4.3% $ 574,182 5.7% Total Sales to Customers $ 17,577,924 100.0% $ 10,102,828 100.0% Residential Potable $ 15,643,719 89.0% $ 8,774,145 86.8% Sales Mix Non-Residential Potable $ 1,735,183 9.9% $ 1,157,945 11.5% Nonpotable $ 199,021 1.1% $ 170,737 1.7% (1)To preserve confidentiality, private company customer names are not disclosed. (2)Electric Utility table excludes internal customer,Water Utility,with Revenue of$1.4 million in 2023 and 1.2 million in 2014 The Electric Utility revenue from Water Utility is eliminated on a Consolidated Financial Statement basis. Source: Truckee Donner Public Utility District Customer Service Department Page 91 Page 415 of 449 Last 10 Years Dollars in Thousands except for Coverage Ratio Electric Utility A B A -B = C D CID Total Total Net Revenues Debt Year Revenues Expenses Available For Service Coverage (1) (2) Debt Service Requirement(3) Ratio 2023 37,537 29,911 7,625 431 17.68 2022 34,355 29,439 4,917 655 7.51 2021 31,205 26,720 4,485 1,072 4.19 2020 30,409 23,010 7,399 1,058 6.99 2019 29,258 21,093 8,165 1,000 8.16 2018 27,782 20,237 7,545 1,429 5.28 2017 28,336 22,108 6,228 468 13.32 2016 25,628 20,223 5,405 1,000 5.40 2015 24,322 18,944 5,378 895 6.01 2014 23,611 19,495 4,116 863 4.77 Water Utility A B A -B = C D CID Total Total Net Revenues Debt Year Revenues Expenses Available For Service Coverage (1) (2) Debt Service Requirement (3) Ratio 2023 19,377 12,822 6,555 1,987 3.30 2022 17,985 10,137 7,849 1,305 6.01 2021 16,981 9,736 7,245 2,046 3.54 2020 15,107 9,599 5,508 2,024 2.72 2019 14,419 9,552 4,867 2,018 2.41 2018 13,769 8,662 5,107 2,016 2.53 2017 12,909 8,775 4,134 2,341 1.77 2016 12,908 8,171 4,737 2,389 1.98 2015 11,401 7,461 3,940 2,431 1.62 2014 11,328 7,437 3,891 2,517 1.55 (1) Includes interest income, facilities fees, and connection fees; Water excludes Donner Lake Assessment District special tax (assessment) revenues (2) Excludes depreciation, interest and amortization expense (3) Includes principal and interest of bond (certficates of participation, and other types)debt, parity and subordinate; Water excludes Donner Lake Assessment District SRF loan debt; includes credit offset for interest on parity debt reserve funds; exlcudes refunding activities. Page 92 Page 416 of 449 Truckee Donner Public Utility District Total Long-Term Debt per Account and Ratios Last 10 Years As of year ended December31, 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Electric Utility Total Debt($000s) (1) $6,572 $6,722 $552 $ 1,603 $2,604 $3,524 $4,803 $5,218 $5,662 $6,265 Number of Accounts 14,682 14,602 14,416 14,176 13,960 13,818 13,708 13,568 13,389 13,320 Debt per Account $448 $460 $38 $ 113 $ 187 $255 $350 $385 $423 $470 Debt to Total Revenue 19% 20% 2% 5% 9% 13% 17% 20% 23% 27% Debt to Net Capital 10% 11% 1% 3% 4% 7% 10% 11% 12% 14% Assets Water Utility Total Debt($000s) (2) $25,610 $26,569 $ 11,022 $ 16,579 $ 18,846 $21,059 $23,217 $25,631 $27,857 $31,118 Number of Accounts 13,609 13,526 13,400 13,253 13,126 13,026 12,924 12,827 12,716 12,614 Debt per Account $ 1,882 $ 1,964 $823 $ 1,251 $ 1,436 $ 1,617 $ 1,796 $ 1,998 $2,191 $2,467 Debt to Total Revenue(2) 136% 141% 62% 104% 124% 145% 169% 187% 228% 257% Debt to Net Capital 30% 35% 15% 23% 25% 27% 31% 34% 37% 41% Assets Grey's Crosssing CFD Total Debt($000s) (3) $25,229 $26,419 $27,464 $28,409 $29,264 $30,163 $30,948 $31,558 $32,138 $32,607 Number of Parcels (5) 425 426 407 407 408 413 413 415 415 416 Debt per Parcel $59,363 $62,017 $67,479 $69,800 $71,724 $73,035 $74,935 $76,043 $77,440 $78,383 Old Greenwood CFD Total Debt($000s) (4) $6,928 $7,456 $7,940 $8,385 $8,794 $9,165 $9,503 $9,812 $ 10,091 $ 10,344 Number of Parcels (5) 1,262 1,262 1,254 1,254 1,238 1,238 1,231 1,231 1,231 1,231 Debt per Parcel $5,489 $5,908 $6,332 $6,687 $7,103 $7,403 $7,719 $7,970 $8,197 $8,403 ($000s) Total Utility Debt $32,182 $33,291 $ 11,574 $ 18,182 $21,449 $24,582 $28,021 $30,849 $33,520 $37,382 Total CFD Debt $32,157 $33,875 $35,404 $36,794 $38,057 $39,328 $40,451 $41,369 $42,228 $42,952 Total Debt, Consolidated LfL4 339 LE 666 LAQ 978 54 776 59 506 63 910 68 472 72 218 75 748 80 334 (1)Electric Total Debt includes Pension Obligation Bonds, Installment Loan, and Certificates of Participation debt. (2)Water Total Debt includes Certificates of Participation debt, CA Dept. of Water Resources loan, Installment loans, and Donner Lake Assessment District(DLAD)related State RevoNing Fund (SRF)loan. Total Revenue for this report's Water Debt to Total Revenue includes DLAD tax assessment proceeds which applies the DLAD's SRF loan debt service of$800,852 for each year presented. (3)Grey's Crossing Community Facilities District (CFD)Debt is Special Tax Bonds-Mello Roos. (4)Old Greenwood Community Facilities District (CFD)Debt is Special Tax Bonds-Mello Roos. (5)Number of parcels subject to CFD Special Tax Mello Roos Bonds varies by year due to full pre-payments and parcel splits, and represents special tax assessment parcels. Old Greenwood number of parcels for 2014 has been estimated. Page 193 Page 417 of 449 Truckee Donner Public Utility District Demographic and Economic Information Last 11 Years Town of Truckee(1) Per Capita TTUSD Labor Personal Personal School Year Force Unemployment Population Income Income Enrollment (2) (2) (3) (4) (5) (6) 2023 9,500 4.1% 16,676 $63,792 $1,063,795,392 4,176 2022 9,420 3.6% 16,693 $59,141 $987,240,713 4,165 2021 9,220 5.9% 16,213 $51,955 $842,346,415 4,159 2020 9,160 5.8% 16,735 $46,295 $774,746,825 4,193 2019 9,880 1.3% 16,434 $46,280 $760,565,520 4,168 2018 10,370 2.6% 16,309 $45,706 $745,419,154 4,133 2017 10,490 3.0% 16,277 $43,898 $714,527,746 4,153 2016 10,110 3.9% 16,231 $42,439 $688,827,409 4,010 2015 10,070 5.3% 16,184 $40,414 $654,060,176 3,978 2014 10,010 6.4% 16,191 $37,117 $600,961,347 3,950 2013 10,040 7.9% 16,132 $37,058 $597,819,656 3,917 (A) : 5yr CAGR -1.7% 9.5% 0.4% 6.9% 7.4% 0.2% 10yr CAGR -0.6% -6.3% 0.3% 5.6% 5.9% 0.6% Sources and Legend: (1) The Town of Truckee boundaries comprise approximately 95%of the District's service territory. (2) California Employment Development Department (3) California Department of Finance Projections for Town of Truckee (4) United States Census Data adjusted for inflation and Town of Truckee (5) Personal Income calculated as Population (3)multiplied by Per Capital Income(4) (6) California Ed-Data Partnership; Tahoe-Truckee Unified School District(TTUSD), Census Day Enrollment for school district's fiscal year (A) Compounded Annual Growth Rate (CAGR) metrics for 2023 compared to respective number of years(yr)prior Page 194 Page 418 of 449 Truckee Donner Public Utility District Principal Employers Prior Year and Four Years Ago 2023 2019 Percent Percent Number of of Total Number of of Total Employer Name Employees Employment Employees Employment Tahoe Forest Hospital District 848 8.9% 577 5.8% Tahoe-Truckee Unified School District* 594 6.3% 238 2.4% Town of Truckee 152 1.6% 128 1.3% Safeway* 120 1.3% 150 1.5% Mountain Hardware &Truckee Rents 106 1.1% Tahoe Donner Association 91 1.0% Truckee Donner Public Utility District 75 0.8% 70 0.7% Truckee Fire Protection District 56 0.6% Truckee-Donner Recreation & Park District 50 0.5% 31 0.3% Save Mart 40 0.4% 42 0.4% Mark Tanner Construction 65 0.7% Northstar Lodge (Welk Resorts) 180 1.8% Bar of America 22 0.2% Top 10 Employers,total 2,132 22.4% 1,503 15.2% Labor Force 9,500 100.0% 9,880 100.0% Sources and Comments: Source of Top 10 employers is Town of Truckee's 2022/23 and 2018/19 Annual Comprehensive Financial Reports, and 2019 was the first year information provided and is based on direct inquiries to employers. Other than above from Town of Truckee, specific employer information is not publicly available to the District. Labor Force is from prior page. * Includes full & part-time employees Page 195 Page 419 of 449 Truckee Donner Public Utility District Operating Information Last 11 Years Electric Utility Water Utility Water IRS Number of KwH Capital Number of Production Capital Year W-2s FTEs Accounts Billed Assets, Net Accounts in Millions Assets, Net (1) (2) (Average) (000s) ($000s) (3) (Average) of Gallons ($000s) (3) 2023 90 80 14,682 166,385 $63,688 13,609 1,496 $84,983 2022 89 77 14,602 167,155 $60,988 13,526 1,556 $75,982 2021 90 70 14,416 163,176 $61,493 13,400 1,715 $71,390 2020 82 68 14,176 159,134 $59,493 13,253 1,713 $72,539 2019 89 73 13,960 156,714 $58,756 13,126 1,503 $75,056 2018 86 72 13,818 151,944 $53,535 13,026 1,579 $76,638 2017 77 74 13,708 156,562 $48,258 12,924 1,487 $74,857 2016 78 72 13,568 151,527 $47,660 12,827 1,460 $75,942 2015 83 73 13,389 140,819 $47,079 12,716 1,381 $75,338 2014 78 71 13,320 142,584 $43,384 12,614 1,682 $75,938 2013 75 69 13,244 147,389 $42,536 12,515 1,846 $77,378 (A) : 5yr CAGR 0.9% 2.1% 1.2% 1.8% 3.5% 0.9% -1.1% 2.1% 10yr CAGR 1.8% 1.5% 1.0% 1.2% 4.1% 0.8% -2.1% 0.9% Sources and Legend: (1) Number of Internal Revenue Service payroll W-2 forms issued for calendar/tax year (2) Full Time Equivalents (FTEs)calculated as payroll paid hours (work regular and overtime, vacation, sick, other)for year divided by 2080 (3) Capital Assets, Net as of year end is comprised of Gross Fixed Assets, less Accumulated Depreciation, plus Construction Work in Progress, presented as dollars in thousands ($000s) (A) Compounded Annual Growth Rate (CAGR) metrics for 2023 compared to respective number of years(yr) prior Page 196 Page 420 of 449 Truckee Donner Public Utility District Capital Assets by Function Last 10 Years (Restated) Balance as of December31, 2023 2022 2021 2020 2019 2018 2017 2015 2014 Plant Balances Electric distribution $ 84,810,518 $ 80,851,917 $ 76,021,243 $ 71,894,379 $ 67,692,719 $ 6 $ 60,416,920 $ 58,345, 54,721,615 $ 51,524,863 Water distribution 142,310,579 132,306,303 124,052,449 121,483,082 120,131,130 93 112,596,747 108,860,825 107,005,578 103,049,122 General plant 21,605,806 20,857,928 19,827,303 19,316,644 18,450,143 3,295 15,782,620 15,062,278 13, 87,881 12,816,635 Total 248,726,903 234,016,148 219,900,995 212,694,105 206,273,99 096,579 188796,288 182,268,793 175, 15,074 167,390,620 Accumulated Depreciation Electric distribution (27,377,063) (25,615,227) (23,396,600) (21,385,441) (19,4 19,488,505) 789,114) (17,045,716) (15,975,929) (14,842,504) Water distribution (64,952,166) (60,888,418) (56,654,194) (52,339,068) (48,269,8 (44,232,073) 40,260,086) (37,643,873) (34,248,569) (32,462,147) General plant (14,358,278) (13,519,645) (12,700,105) (11,522,788) (10,851,669) (10,372,265) (9,514,034) (8,683,151) (7,817,950) (7,171,096) Total (106,687,507) (100,023,290) (92,750,899) (85,247,297) (78,575,819) (74,092,843) (68,563,235) (63,372,739) (58,042,448) (54,475,747) Plant Sub-Total Electric distribution 57,433,455 55,236,690 52,624,643 50,508,938 48,238,423 44,716;186 41,627,806 41,299,974 38,745,686 36,682,359 Water distribution 77,358,413 71,417,885 67,398,255 69,144,014 71,861,276 72,146,52 2,336,661 71,216,952 72,757,009 70,586,975 General plant 7,247,528 7,338,283 7,127,198 7,793,856 7,598,474 6,141,030 68,586 6,379,127 6,069,931 5,645,539 Total 142,039,396 133,992,858 127,150,096 127,446,808 127,698,173 %Q3,003,736 IWI 053 118,896,054 117,572,626 112,914,873 Construction work in progress 6,631,266 3,604,888 5,732,900 4,584,711 6,114,079 7,169, 2.881.021 4,706,276 4,844,042 6,407,589 TOTALS $ 148,670,662 $ 137,597,746 $ 132,882,996 $ 132,031,519 $ 133,812,252 $130,173, 123,114,074 $ 123,602,330 $ 122,416,668 $ 119,322,462 Change to Prior Year 2023 2022 2021 2020 Ir 2019 2018 2017 2016 2015 2014 Change in Plant Electric distribution $ 3,958,601 $ 4,830,674 $ 4,126,8 $ 7,689,688 $ 7,275,799 $ 3,787,771 $ 2,071,230 $ 3,624,075 $ 3,196,752 $ 2,217,820 Water distribution 10,004,276 8,253,854 2,569,367 5,104,489 7,534,383 3,781,846 3,735,922 1,855,247 3,956,456 1,489,873 General plant 747,878 1,030,625 510,659 2,803,349 2,667,523 730,675 720,342 1,174,397 1,071,246 203,545 Total 14,710,755 14,115,153 7,206,890 15,597,526 �,7,477,704 8,300,291 6,527,495 6,653,719 8,224,454 3,911,238 Change in Accumulated r Depreciation Electric distribution (1,761,836) (2,218,627) 011,159) (1,896,936) (665,182) (699,391) (1,743,399) (1,069,787) (1,133,424) (1,237,149) Water distribution (4,063,748) (4,234,224) 5,126) (8,106,995) (8,009,768) (3,971,987) (2,616,213) (3,395,304) (1,786,422) (3,160,855) General plant (838,633) (819,540) 17) (1,150,523) (1,337,635) (858,231) (830,884) (865,200) (646,854) (62,233) Total (6,664,217) (7,272,391) (11,154,454) (10,012,584) (5,529,608) (5,190,496) (5,330,291) (3,566,701) (4,460,236) Change in Plant Sub-To Electric distribution 2,196,765 2,612,047 2,115,70 5,792,752 6,610,617 3,088,380 327,831 2,554,288 2,063,328 980,671 Water distribution 5,940,528 4,019,630 (1,745,759) (3,002,506) (475,385) (190,141) 1,119,709 (1,540,057) 2,170,034 (1,670,982) General plant (90,755) 211,085 (666,658) 1,652,826 1,329,888 (127,556) (110,542) 309,197 424,392 141,312 Total 8,046,538 6,842,762 (296,712) 4,443,072 7,465,120 2,770,683 1,336,999 1,323,428 4,657,753 (548,998) Change in Construction work in progress 3,026,378 (2,128,012) 1,148,189 (2,585,103) 3,233,058 4,288,793 (1,825,255) (137,766) (1,563,547) (42,099) Change in Total Capital Assets $ 11,072,916 $ 4,W,750 $ 851,477 $ 1,857,969 $ 10,698,178 $ 7,059,475 $ (488,256) $ 1,185,662 $ 3,094,206 $ (591,097) Page 97 Page 421 of 449 Truckee Donner Public Utility District Base, Heating and Cooling Degree Days Electricity Imports by Year Separated Into estimated load components 74.8's, 73.B% L 0 7 O— _X 100.000 tT v 01 L Q• 50.000 22.B% E 2115%b 22 21.3% 22.7% 19.4% 21.3% S.8% 4.9% 3.ari6 Q 4.7% 4.1% 4% 4% 3.4% 0 2016 2618 2020 2022 Cooling Loads E Heating Loads 0 Base Lo.%&. Degree Days Below history plot of all days last five years, provides the basis for degree day estimated balance point of 52 degrees. WeNher Sensitivity in TDPUD Loads Analyzing System Balance Point i =600 • ••: •{%�Y' •'•i • •M • j Balance Point 52 Deg P 0 I 0 400 Jr s t 0 • I I • 1 u 20 40 60 80 Mean Daily Drybulb Temp [F] Page 198 Page 422 of 449 END OF REPORT THANK YOU FOR READING 0, "'' TRUCKEE DON 'MR Public Utility Distm. .. Truckee Donner Public Utility District 11570 Donner Pass Road Truckee, CA 96161 Phone (530) 587-3896 Website TDPUD.ORG Winter Snow Removal g$ , 1 R '41} 0.` Page 199 Page 423 of 449 FiFTRUCKEE DONNER Public Utility District PUBLIC UTILITY DISTRICT ' ` _ I 8 Pl�PRRED ST TIME .1''►'-"` 'r�. _ TD BE 4- �-k F IT - ''`'� � ,fix_ � .e• TDPU' D-,,, �" - 42