Corporate Key Indicators

Transcription

1 Corporate Key Indicators LES performs favorably when compared to other public power utilities in areas of safety, reliability and financial metrics. Emily N. Koenig, Director of Finance & Rates March 15, 2019 Benchmarking Provided By: Omaha Public Power District (OPPD) & American Public Power Association (APPA) LES.com 1

2 OPPD Benchmarks 11 Public Power Peer Utilities Each Year Responses by 2017 Total Electric Energy Sales (GWh) < 3, ,000-8,000 > 8,000 City Utilities of Springfield * Colorado Springs Utilities * KC Board of Public Utilities Lincoln Electric System * Muscatine Power & Water Nebraska Public Power District * Omaha Public Power District * Orlando Utilities Commission * Santee Cooper * Seattle City Light Tacoma Public Utilities 6 * Also included in LES Peer Group LES 4,575 GWh Source: OPPD Corporate Key Indicators Report, June 2018 LES.com 2

3 138 Utilities Participated in APPA s 2017 Annual Survey Down from 191 participants in ,000 10,000 Responses by Customer Size Class 23 2,000 5, > 100, LES ~140,000 Customers 50, ,000 APPA s survey includes utilities with: Retail Sales of 50% or more of total sales, and ,000 20,000 20,000 50,000 Retail Sales or Sales for Resale of 100,000 MWh or more Source: APPA Selected Financial and Operating Ratios of Public Power Systems, Dec 2018 LES.com 3

4 3rd Quartile 27% - Debt Service Coverage - Debt to Total Assets - OSHA Incident Rate 4th Quartile 8% 1st Quartile 33% - A&G per Retail Customer - Total Power Supply Exp. per kwh Sold - System Average Interruption Duration Index (SAIDI) - Customer Average Interruption Duration Index (CAIDI) - Residential Revenues per kwh Sold - Energy Loss% (System Losses) LES ranks in the Top 2 Quartiles for 65% of the ratios from both surveys! Ratios noted are those that align most closely with LES 2018 Key Indicators 2nd Quartile 32% - Total O&M per Retail Customer - Days Cash on Hand Percentages based on results for 73 ratios for approximately 31 utilities LES.com 4

5 LES residential customers continue to have some of the lowest bills, ranking 2 nd in the survey $120 Residential Revenues / MWh Sold $110 $100 $90 $80 $70 $60 $50 $96 $ LES Average Median Residential Revenues per Residential MWh Sold OPPD Corporate Key Indicators Report, June 2018 LES.com 5

6 LES customers experience some of the fastest outage restoration times Minutes LES 2018 Year End Performance Indicator Target = 80 Actual = LES Average Median Customer Average Interruption Duration Index (CAIDI) OPPD Corporate Key Indicators Report, June 2018 LES.com 6

7 60 LES ranked 1 st out of survey participants for overall system outage time Minutes LES 2018 Year End Performance Indicator Target = 30 Actual = LES Average Median System Average Interruption Duration Index (SAIDI) OPPD Corporate Key Indicators Report, June 2018 LES.com 7

8 Incidents per 100 Employees LES is a safe place to work and appears to be trending below the average for injury rates Total Injury Cases LES 2018 Year End Performance Indicator Target = 0 Actual = LES Average Median Occupational Safety and Health Administration Incidents Rate per 100 Employees OPPD Corporate Key Indicators Report, June 2018 LES.com 8

9 LES expenses to operate and maintain the utility are below the average (on a per customer basis) $700 $600 $500 $505 Dollars per Customer $400 $300 $200 $100 LES 2018 Year End Performance Indicator* Target = $610 Actual = $522 $ LES Overall Average Cust. Size Class Avg *LES calculation differs from APPA calculation Total O&M Expense per Retail Customer APPA Selected Financial & Operating Ratios of Public Power Systems, Dec 2018 LES.com 9

10 $500 $450 $400 LES has the lowest administrative and general costs of all survey participants LES 2018 Year End Performance Indicator* Target = $331 Actual = $317 $350 $300 $250 $200 $150 $144 $100 $ LES Average Median *LES calculation differs from OPPD calculation. Administrative & General Expense per Retail Customer OPPD Corporate Key Indicators Report, June 2018 LES.com 10

11 $0.06 LES Power Supply Expenses continue to be less than the average $0.05 $0.04 Dollars per kwh $0.03 $0.02 $0.01 LES 2018 Year End Performance Indicator (kwh)* Target = $.030 Actual = $.026 $0.027 $ LES Overall Average Cust. Size Class Avg *LES calculation differs from APPA calculation Total Power Supply Expense per kwh Sold APPA Selected Financial & Operating Ratios of Public Power Systems, Dec 2018 LES.com 11

12 LES cash levels fluctuate due to financing strategies to cover liquidity and capital needs LES 2018 Year End Performance Indicator* Target = 75 (minimum) Actual = Days LES Minimum Target LES Average Median *LES calculation differs from OPPD calculation Days Cash on Hand OPPD Corporate Key Indicators Report, June 2018 LES.com 12

13 Better than budgeted financial performance resulted in Debt Service Coverage exceeding averages Debt Service Coverage LES 2018 Year End Performance Indicator Target = 2.11 Actual = LES Baseline Target LES Average Median Debt Service Coverage OPPD Corporate Key Indicators Report, June 2018 LES.com 13

14 80% LES has a higher percentage of debt compared to assets than the average 70% 70% Debt ($) / Total Assets ($) 60% 50% 40% 30% 20% 10% LES 2018 Year End Performance Indicator* Target <.70 Actual =.69 0% LES Overall Average Cust. Size Class Avg *LES calculation differs from APPA calculation Debt to Total Assets APPA Selected Financial & Operating Ratios of Public Power Systems, Dec 2018 LES.com 14

15 90% BONUS MATERIAL#1: LES forecasts lower outstanding debt over the next 10 year period 80% 71% 70% Debt ($) / Total Assets ($) 60% 50% 40% 30% LES Target Debt to Total Assets is a difficult metric to rapidly impact (raise rates or paydown debt). 54% 20% 10% Lower planned construction will allow LES to paydown existing debt while not incurring significant additional debt. 0% LES Overall Average Cust. Size Class Avg Debt to Total Assets APPA Selected Financial & Operating Ratios of Public Power Systems, Dec 2018 LES.com 15

16 BONUS MATERIAL #2: Rating Agency focusing on ratio of how many years to pay off all debt with current funds 9.00 Net Adjusted Debt ($) / Adjusted FADS ($) Fitch Ratings is focusing on Net Debt vs. Debt to Total Assets. Net Debt Ratio is a measure of a system s debt and other fixed obligations to its annual operating funds available to meet those obligations LES LES Peer Group LES Peer Group Forecast is based on 5-year historical trending. LES.com 16

17 Exhibits LES.com 17

18 APPA Benchmarking Participants ALABAMA FLORIDA LOUISIANA MISSISSIPPI Decatur Utilities Beaches Energy Service Lafayette Utilities System Greenwood Utilities Commission Huntsville Utilities JEA Riviera Utilities Keys Energy Services MASSACHUSETTS NEBRASKA Scottsboro Electric Power Board Kissimmee Utility Authority Braintree Electric Light Department Grand Island, City of Troy, City of Lakeland Electric Holyoke Gas & Electric Hastings, City of Orlando Utilities Commission Mansfield Municipal Electric Department Lincoln Electric System ARIZONA Tallahassee Electric Utility Taunton Municipal Lighting Plant Loup Power District Electrical District No. 3 Pinal County Westfield Gas & Electric Light Department Omaha Public Power District Navajo Tribal Utility Authority GEORGIA Southern Public Power District Salt River Project Marietta Board of Lights & Water MICHIGAN Bay City, City of NEW MEXICO ARKANSAS ILLINOIS Grand Haven Board of Light & Power Farmington, City of Clarksville Light & Water Co. Springfield City Water, Light & Power Lansing Board of Water & Light Hope Water & Light Commission St. Charles, City of Marquette Board of Light & Power NEW YORK Jonesboro City Water & Light Traverse City Light & Power Fairport, Village of Paragould City Light, Water & Cable INDIANA Zeeland Board of Public Works Plattsburgh Municipal Lighting Department Lawrenceburg Municipal Utilities CALIFORNIA Richmond Power and Light MINNESOTA NORTH CAROLINA Azusa Light & Water ALP Utilities Fayetteville Public Works Commission Glendale Water & Power IOWA Austin Utilities Greenville Utilities Commission Modesto Irrigation District Ames, City of Brainerd Public Utilities Lexington, City of Pasadena Water and Power Department Cedar Falls Utilities Elk River Municipal Utilities Monroe, City of Redding, City of Denison Municipal Utilities Grand Rapids Public Utilities Commission Rocky Mount, City of Riverside Public Utilities Muscatine Power & Water Marshall Municipal Utilities Shelby, City of Sacramento Municipal Utility District Owatonna Public Utilities Silicon Valley Power KANSAS Rochester Public Utilities OHIO Turlock Irrigation District Kansas City Board of Public Utilities Willmar Municipal Utilities Bryan Municipal Utilities McPherson Board of Public Utilities Hudson Public Power COLORADO MISSOURI Orrville, City of Loveland Water & Power KENTUCKY Carthage Water and Electric Plant Westerville Electric Division Henderson City Utility Commission Chillicothe, City of CONNECTICUT Owensboro Municipal Utilities Independence Power & Light Norwich Public Utilities Poplar Bluff Municipal Utilities & City Cable City Utilities of Springfield Source: APPA Selected Financial and Operating Ratios of Public Power Systems, Dec 2018 LES.com 18

19 APPA Benchmarking Participants OREGON TEXAS WISCONSIN Central Lincoln People s Utility District Austin Energy Manitowoc Public Utilities Clatskanie People s Utility District Brownsville Public Utilities Board Marshfield Utilities Eugene Water & Electric Board Bryan Texas Utilities Rice Lake Utilities McMinnville Water & Light College Station, City of Wisconsin Rapids Water Works & Lighting Commission Northern Wasco County, People's Utility District CPS Energy Springfield Utility Board Denton Municipal Electric Garland, City of SOUTH CAROLINA Kerrville Public Utility Board Orangeburg, City of Lubbock Power & Light SOUTH DAKOTA Watertown Municipal Utilities TENNESSEE Benton County Electric System Bristol Tennessee Essential Services Brownsville Utility Department Columbia Power & Water Systems Cookeville, City of Covington Electric System Jackson Energy Authority Lewisburg Electric System McMinnville Electric System Memphis Light, Gas and Water Division Nashville Electric Service Paris Board of Public Utilities Pulaski Electric System Ripley Power & Light Company Sevier County Electric System Tullahoma Utilities Authority UTAH Heber Light & Power Co. Lehi City Provo City Power VERMONT Burlington Electric Department WASHINGTON Benton PUD Clallam County, Public Utility District No. 1 of Clark Public Utilities Cowlitz County, Public Utility District No. 1 of Grays Harbor County, Public Utility District No. 1 of Lewis County, Public Utility District No. 1 of Mason County, Public Utility District No. 3 of Seattle City Light Tacoma Public Utilities Source: APPA Selected Financial and Operating Ratios of Public Power Systems, Dec 2018 LES.com 19

20 LES Ranking Per APPA Ratios Quartile 1 Quartile 2 Revenue per kwh (All Retail Customers) Revenue per kwh (Industrial Customers) Revenue per kwh (Residential Customers) Operating Ratio Revenue per kwh (Commercial Customers) Total O&M Expense (Excluding Power Supply Expense) per Retail Customer Uncollectible Accounts per Revenue Dollar Retail Customers per Meter Reader Total O&M Expense per kwh Sold Distribution O&M Expenses per Retail Customer Total Power Supply Expense per kwh Sold Distribution O&M Expenses per Circuit Mile Purchased Power Cost per kwh Customer Accounting, Customer Service, and Sales Expense per Retail Customer Administrative and General Expenses per Retail Customer Labor Expense per Worker-hour Energy Loss Percentage System Load Factor Quartile 3 Quartile 4 Debt to Total Assets Times Earned Interest Current Ratio Net Income per Revenue Dollar Debt Service Coverage Retail Customers per Non-Power Generation Employee Source: APPA Selected Financial and Operating Ratios of Public Power Systems, Dec 2018 LES.com 20

21 LES Ranking Per OPPD Ratios Quartile 1 Quartile 2 O&M (Non-Power Production) per Retail Customer O&M (Less Fuel and Purchased Power) as a % of Total Operating Revenues Purchased Power Expense per MWh Purchased Total O&M as a % of Total Operating Revenues Steam Production O&M per Steam MWh Generated Power Production O&M per MWh Sold EAF Oil & Gas Fuel Expense per MWh Generated System Average Interruption Duration Index (SAIDI) Power Production O&M per MWh Generated/Purchased Customer Average Interruption Duration Index (CAIDI) Distribution O&M per Retail MWh Sold A&G per MWh Sold Distribution O&M per Retail Customer A&G per Retail Customer Customer Accts, Service and Sales per Retail MWh Sold A&G as a % of O&M (Less Fuel and Purchased Power) Customer Accts, Service and Sales per Retail Customer A&G per Employee Uncollectible Accounts Expense as a % of Electric Energy Revenues A&G as a % of Total Operating Revenues Gross Distribution Plant in Service per Retail Customer Residential Revenues per Residential MWh Sold Retail Revenues per Retail MWh Sold Commercial Revenues per Commercial MWh Sold Wholesale Revenues per Wholesale MWh Sold Average Monthly Residential Bill Days Cash on Hand Days Cash on Hand (5-Year Average) Quartile 3 Quartile 4 Total O&M per MWh Sold Generation O&M (Less Fuel) per MWh Generated Generation O&M per MWh Generated Transmission O&M (Less Other) per MWh Sold Transmission O&M per MWh Sold Equivalent Forced Outage Rate (EFOR) Oil & Gas Transmission O&M per Transmission Circuit Mile Transmission O&M as a % of Total Operating Revenues Transmission O&M (Less Other) per Transmission Circuit Mile Transmission O&M (Less Other) as a % of Total Operating Revenues Distribution O&M as a % of Total Operating Revenues Net Distribution Plant in Service per Retail Customer Industrial Revenues per Industrial MWh Sold Electric Energy Sales per Employee Retail Customers per Non-Power Generation Employee Retail Electric Energy Sales per Retail Employee Total Liabilities as a % of Total Assets Debt Service Coverage OSHA Incidence Rate (per 100 Employees) Inventory Turnover Source: OPPD Corporate Key Indicators Report, June 2018 LES.com 21

22 LES.com 22