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HomeMy WebLinkAboutAgenda_GTEU_01.20.2022Notice of Meeting for the Georgetown Electric Utility B oard of the City of Georgetown January 20, 2022 at 4:00 P M at F riends Room at Georgetown P ublic L ibrary 402 W. 8th Street Georgetown, Texas 78626 T he C ity of G eorgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require as s is tance in partic ipating at a public meeting due to a disability, as defined under the ADA, reas onable as s is tance, adaptations , or ac commodations will be provided upon request. P leas e c ontact the C ity S ec retary's O ffic e, at leas t three (3) days prior to the sc heduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626 for additional information; T T Y users route through R elay Texas at 711. The Geor getown E le ctr ic U tility A dvisory B oard is now me eting in per son. A quorum of the B oar d will be in atte ndanc e at the F r ie nds Room at Geor getown P ublic L ibr ary locate d at 402 W. 8th S tre et. Geor getown, T X 78626. It is possible that one or mor e board me mber s may attend via video Confe re nc e using the Zoom clie nt. Regular Session (T his R egular S es s ion may, at any time, be rec es s ed to c onvene an Exec utive S es s ion for any purpose authorized by the O pen Meetings Act, Texas G overnment C ode 551.) A C all to O rder- R obert C as e; Board C hairman B R oll C all of Board Members- R obert C as e; Board C hairman C Introduc tion of Visitors - R obert C ase; Board C hairman D R eview and Approval of Minutes -Kres s C arson; Board Liais on E F G eneral Manager's Monthly R eport- Daniel Bethapudi; G eneral Manager of Electric Utility G R eview of Net Energy Metering P olicy- Daniel Bethapudi; G eneral Manager of Elec tric Utility and Leticia Zavala; C ustomer C are Director H R eview of Energy R isk Management P olic y- Daniel Bethapudi; G eneral Manager of Electric Utility E xecutiv e Session In c omplianc e with the O pen Meetings Ac t, C hapter 551, G overnment C ode, Vernon's Texas C odes, Annotated, the items listed below will be dis cus s ed in c los ed session and are s ubjec t to action in the regular s es s ion. I S ec . 551.086 C ompetitive Matters P urchas ed P ower R eview Page 1 of 43 Adjournment Ce rtificate of Posting I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notic e of Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily acc es s ible to the general public as required by law, on the _____ day of _________________, 2022, at __________, and remained s o posted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting. __________________________________ R obyn Dens more, C ity S ec retary Page 2 of 43 City of Georgetown, Texas Electric Utility Board January 20, 2022 S UB J E C T: R eview and Approval of Minutes-Kress C ars on; Board Liaison IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Kres s C arson- Board Liaison AT TAC H ME N T S: Description Type 11/17 Minutes Exhibit Page 3 of 43 Minutes of the Meeting for the Georgetown Electric Utility Board Thursday, November 17th at 4:00 PM at the Friends Room at Georgetown Public Library, 402 W. 8th St. Georgetown, TX 78626 Board Members Present: Robert Case - Chairman, Rick Woodruff- Vice-Chairman, Sam Jones- Secretary, Ben Butler Board Members Absent: Mike Triggs Staff Present: Daniel Bethapudi, Mike Westbrook, Leigh Wallace, Aaron St. Pierre, Leticia Zavala, and Kress Carson Public Attendees: None Regular Session (This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) A. Call to Order -- Robert Case, Board Chairman • Meeting called to order at 4:00 pm by Case. B. Roll Call of Board Members -- Robert Case, Board Chairman. • Mike Triggs absent C. Introduction of Visitors -- Robert Case, Board Chairman D. Public Wishing to Address the Board • None present Legislative Session E. Review and Approval of Minutes- Kress Carson, Board Liaison • Kress Carson addresses Board regarding questions due to Board absences and minute corrections • August 19th Meeting- Motion to approve by Jones; seconded by Butler Page 4 of 43 • Minutes approved as read 4-1 (Triggs absent) F. Consideration and possible recommendation to continue utilizing the annual agreement for LCRA Material Acquisition to purchase electric distribution, fiber, water, safety, and substation materials, hardware, and tools for Fiscal Year 2022 from Techline Ltd. under their contract with the Lower Colorado River Authority ("LCRA") Electric Material Acquisition Program, not to exceed amount of $4,000,000.00 – Mike Westbrook, Electric Operations Manager- Mike Westbrook, Electric Operations Manager • Westbrook gives background on the agreement. Points out that there is a termination clause in which the agreement can be cancelled at anytime without penalty. • This agreement is intended as a placeholder until as the Utility scopes outsourcing the electric function of the warehouse in which material would be purchased through the entity chosen to serve the function. • This agreement will allow the City of Georgetown to continue to utilize this agreement in to order to purchase material at a competitively bid price through the LCRA. • Motion to approve LCRA Material Acquisition Contract- Motion by Woodruff, seconded by Jones, vote passes 4-1 (Triggs absent) G. Consideration and possible recommendation to continue utilizing the Electric Just- In-Time Supplier Agreement with Techline for the Fiscal Year 2022, for the first renewal of a three-year agreement, not to exceed amount of $2,500,000.00 – Mike Westbrook, Electric Operations Manager • Jones asks if this contract has provisions in it that provides for emergency response. o Westbrook confirms. • Butler asks if in the event of a storm, would other utilities be able to order emergency material and leave Georgetown without the ability to purchase emergency material if resources are limited. o Westbrook answers that the firm is obligated to hold onto the emergency material, and not release such material unless given permission by the Georgetown. • Motion to approve Just-In-Time Agreement- Motion by Jones, seconded by Butler, vote passes 4-1 (Triggs absent) H. Consideration and Possible Action to approve the new standard Licensing Agreement for Communications Attachments to Utility Facilities- Kress Carson- Page 5 of 43 Electric Utility Analyst and Danny McReynolds- Electric Engineering Manager • Carson gives background that there was not a current standard Pole Attachment agreement and the ones used in prior years currently offer a standard that requires upgrades. • Upgrades include mechanisms of cost recovery, details on processes- including unauthorized attachments, pole transfers, and permitting process. • Bethapudi adds that this was also vetted by outside counsel firm, Lloyd Gosselink and that agreement will ensure that telecom companies will pay their share of the risk of attachment and that all costs of maintenance and updates are passed to the telecom companies. • Case asks for verification that these companies attach fiberoptics to the poles. o Carson confirms • Woodruff asks for clarification if this is strictly only for poles and not underground. o Westbrook confirms that this is the case, and won’t be much of a factor in areas that have underground service. • Carson adds that a company known as Ubiquity has shown interest in attaching to the Georgetown poles, and that they have seen the agreement and have agreed to sign upon Council approval. • Motion to approve the standard agreement- Motion by Woodruff, seconded by Jones- vote passes 4-1 (Triggs absent) I. Consideration and possible action to approve of a two-year consultation agreement with the Alliance for Cooperative Energy Services Power Marketing LLC. (ACES) from Carmel, IN for energy risk management support services for a total cost not to exceed $342,446.00 over the two-year term -- Daniel Bethapudi - General Manager of Electric Utility • Carson gives presentation. Provides background on ACES qualification and services provided under the pending agreement. • Case asks how long we have been working with ACES. o Bethapudi answers for nearly a year • Bethapudi that ACES played an integral part to the portfolio during the Winter Storm. • Motion to approve the consultation agreement with ACES- Motion by Butler, seconded by Woodruff- vote passes 4-1 (Triggs absent) Regular Session (cont.) J. General Managers Monthly Report- Daniel Bethapudi- General Manager of Electric Page 6 of 43 Utility • Customer Service and Billing- Leticia Zavala-Customer Care Director o 30,697 Available Services o 29,799 Electric customers/accounts, 62 estimated “bad meter reads” o Overall Average September 2021 bills nearly $15 cheaper than September 2020 ▪ Billing numbers lower than last year due to a combination of lower average monthly temperatures and reduced PCA o Electric Revenue Breakdown and Receivables presented- roughly 102% of yearly budgeted amount collected- end of the fiscal year and collectables came in above budget- about 3% into the new fiscal year o Roughly $84,000 collected in outstanding bills since the collection agency commenced collections in May to collect the bad debt o Woodruff asks that he thought the budget was originally coming under budget and is curious how the 102% figure came to be. ▪ Bethapudi answered there are multiple factors that included budget adjustments, higher energy sales than expected in the fall, and customer growth that contributed to this. • Electric Engineering and Operations Report- Mike Westbrook- Electric Operations Manager o Electric Reliability (SAIFI)- .433 (Good Metric) o Electric Outage Duration (CAIDI)-92.77(Good Metric) o Training- 100% (Good metric) o Safety, 100% attendance o Service Order Completion, 100% o Preventative Maintenance, 100% o Corrective Maintenance, 100% o Top 5 Outages Report ▪ Outages include a switchgear that opened up in which a the outage was isolated to a failed transformer and damaged primary and secondary wire ▪ Another outage included high winds n which a pole came down and 8 cross arms were damaged in which 88 customers were affected. There were also 10 other outages recorded that day. o Case asks about the procedures for linemen on call. Westbrook answers they have always have 2 linemen on call who will respond to outage straight from their homes with the supplies in hand ready to face an outage. K. Consideration and possible action to approve of a two-year consultation agreement with Crescent Power Inc. from Austin, TX, for energy portfolio support services for a total cost not to exceed $330,000.00 over the two-year term -- Daniel Bethapudi, General Manager of Electric Utility Page 7 of 43 • This is item has already been approved by City Council but was brought before the Board for discussion. • Case asks what the difference betweenthe services between Crescent Power and ACES are. o Bethapudi answers that ACES provides a financial credit services point of view, developing of stochastic modeling, negotiating contract terms, and review the city Energy Risk Management Policy. o Crescent Power helps optimize the performance of the portfolio, develop hedge strategies, and cover positions. They also have assisted with ongoing litigation with Buckthorn. Board moves into Executive Session at 5:02 PM Executive Session In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes, Annotated, the items listed below will be discussed in closed session and are subject to action in the regular session. L. Section 551.086: Competitive Matters • Purchased Power Update Board moves back into Regular Session at 5:16 PM. Adjournment MOTION by Jones, second by Woodruff to adjourn the Board Meeting APPROVED 4-1 (Triggs absent) Electric Board Meeting Adjourned at 5:17 PM. Page 8 of 43 City of Georgetown, Texas Electric Utility Board January 20, 2022 S UB J E C T: IT E M S UMMARY: T HIS ME E T IN G WAS C AN C E LLE D WIT HIN T HE 72 HO UR P OS T IN G P E R IOD D UE TO IN C LE ME N T WE AT HE R AN D ALL IT E MS AR E S C HE D ULE D TO O C C UR O N T HE J AN UARY 26TH ME E T IN G. F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Kres s C arson- Board Liaison AT TAC H ME N T S: Description Type 1-20 Minutes Exhibit Page 9 of 43 Minutes of the Meeting for the Georgetown Electric Utility Board Thursday, January 20th at 4:00 PM at the Friends Room at Georgetown Public Library, 402 W. 8th St. Georgetown, TX 78626 THIS MEETING WAS CANCELLED WITHIN THE 72 HOUR POSTING PERIOD DUE TO INCLEMENT WEATHER AND ALL ITEMS ARE SCHEDULED TO OCCUR ON THE JANUARY 26TH MEETING. NO ITEMS OR DISCUSSION WAS TAKEN PLACE FOR THIS MEETING. Page 10 of 43 City of Georgetown, Texas Electric Utility Board January 20, 2022 S UB J E C T: G eneral Manager's Monthly R eport- Daniel Bethapudi; G eneral Manager of Elec tric Utility IT E M S UMMARY: C ustomer S ervice & Billing- Letic ia Zavala; C ustomer C are Director F inance and Budgeting- Leigh Wallac e; F inance Director O perations R eport- Mike Wes tbrook; Electric O perations Manager F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Daniel Bethapudi-G eneral Manager of Electric Utility AT TAC H ME N T S: Description Type Monthey Report-01-20 Pres entation Page 11 of 43 Georgetown Electric Advisory Board 01/20/22 City of GeorgetownPage 12 of 43 AGENDA I.Regular Session: (* -indicates legislative action) A.Call to Order B.Roll Call C.Introduction of Visitors D.Public Wishing to Address the Board E.Review and Approval of Minutes* F.General Manager’s Monthly Report G.Review of Net Energy Metering Policy H.Review of Energy Risk Management Policy II.Executive Session: M. Purchased Power Update *-indicates legislative action Page 13 of 43 Review of Minutes •November 17th Meeting City of GeorgetownPage 14 of 43 Customer Service and Billing – Electric Services Leticia Zavala-Customer Care Director Page 15 of 43 •All Available Services* *Active & Inactive service delivery points Customer Statistics Available Electric Meters:November December Residential 26,935 27,002 Net Metering 533 538 General -Small 2,588 2,592 General -Large 340 342 Industrial 23 23 Industrial -Large 1 1 School Services 24 25 Municipal 254 254 Municipal -Pumping 42 42 Total Services Count 30,740 30,819 Available Security Lights November December Residential 95 95 Non-Residential 127 127 Municipal 4,118 4,132 Total Services Count 4,340 4,354 Page 16 of 43 •Breakdown by Active Electric Customers (unique) : •Electric Billing Collection: •Advanced Metering Infrastructure (AMI): 99.7% –Usage data automatically transmitted to billing office •Automated Meter Reading (AMR): .3% –Usage data is collected via a drive by system •# of Customer Estimations: 107 •Account did not get a “good” READ; or •Account did not get “ANY” READ (work order put in for metering to investigate) Customer Statistics November December Residential 26,444 26,515 Builder 744 680 Commercial & Industrial 2,337 2,408 Municipal/Schools 294 294 Total Electric Customers:29,819 29,897 Page 17 of 43 •Billed Meters/Services* *Meters billed during the month Customer Statistics Billed Electric Meters:November December Residential 26,706 26,754 Net Metering 519 524 General -Small 2,365 2,368 General -Large 331 335 Industrial 23 23 Industrial -Large 1 1 School Services 25 25 Municipal 195 196 Municipal -Pumping 38 38 Total Services Count 30,203 30,264 Billed Security Lights November December Residential 95 95 Non-Residential 127 127 Municipal 4,132 4,132 Total Services Count 4,354 4,354 Page 18 of 43 –PCA reduced Jan1st to $0.01375 (from $0.02375) Customer Billing Statistics Average Monthly Electric Bill FY22 -Dec FY21 -Dec All Customers $192.71 $226.22 Average YTD Electric Bill FY2022 FY2021 All Customers $213.57 $229.23 Residential Customer -FY2022 FY2021 Cost per 1000 kWh $134.35 $144.35 (including PCA + Base) Average kWh 763 755 Electric Bill (based on Average kWh)$102.51 $108.98 Page 19 of 43 Electric Revenue –FY 2022 Page 20 of 43 Aged Receivables Report –thru 12/31/21 Electric AR –Active & Inactive Accounts Electric AR –Combined Aging Breakdown Electric Prior Month Variance 31 –60 Days $92,436.15 $110,588.95 ($18,152.80) 61 –90 Days $77,048.39 $66,099.45 $10,948.94 91 –120 Days $67,653.39 $52,189.14 $15,464.25 120 –365 Days $215,444.62 $174,997.08 $40,447.54 > 365 Days $89,636.82 $82,939.43 $6,697.39 Total $542,219.37 $486,814.05 $55,405.32 Customer Count 1990 1693 297 Electric Prior Month Variance Active Accounts $174,840.01 $160,534.14 $14,305.87 Inactive Accounts $367,379.36 $326,279.91 $41,099.45 Total $542,219.37 $486,814.05 $55,405.32 Page 21 of 43 Collection Agency Review City of GeorgetownPage 22 of 43 Finance and Budgeting Leigh Wallace-Finance Director City of GeorgetownPage 23 of 43 Fourth Quarter Background •Budget in this report reflects the CIP Roll Forward and Operational Amendment as well as the Midyear Budget Amendment •Due to COVID-19 pandemic timing, year over year comparisons of 2020 and 2021 show large variances in some revenues and expenses, which was expected going into FY2021 •Report reflects operational impacts of the winter storm in expenses •City has applied for FEMA reimbursement, timing of reimbursement unknown Page 24 of 43 Electric Fund Revenue •FY2021 Revenue Budget •Revenue Budget Sources •The FY2021 revenue budget for the Electric Fund is $141.3 million •56% of budgeted revenues is from charges for service •Electric sales revenue •Shared services charges •Bond Proceeds are 39% of budgeted revenues •Transfer In –1% •Titan North Park 0.79% 3.72% 91.17% 1.73%1.80%40002:Sales Taxes 40005:Franchise Taxes 41002:Penalties 42001:Interest Income 43001:Fees 43004:Administrative Charges 43601:Electric Sales Charges 44502:Developer Contributions Page 25 of 43 Electric Fund Revenues – Quarterly Electric Services Quarterly Comparison: Q4 FY2021 Budget FY2020 FY2021 FY2021 YTD Actuals: Q4 FY2020 YTD Actuals: Q4 FY2021 Variance % of Budget Variance % Variance Operating Revenue 40002:Sales Taxes 5,000 7,358 5,863 863 117.25%(1,495) -20.32% 40005:Franchise Taxes 115,732 - - (115,732) 0.00%- 0.00% 41002:Penalties 553,724 529,508 848,000 294,276 153.14%318,492 60.15% 42001:Interest Income 5,000 10,703 33,570 28,570 671.40%22,867 213.64% 43001:Fees 685,000 614,274 1,036,657 351,657 151.34%422,383 68.76% 43004:Administrative Charges 3,222,103 3,192,618 3,222,103 (0) 100.00%29,485 0.92% 43601:Electric Sales Charges 78,982,278 85,733,316 80,933,053 1,950,775 102.47%(4,800,262) -5.60% 44502:Developer Contributions 1,500,000 4,476,298 7,828,988 6,328,988 521.93%3,352,689 74.90% 70001:Transfers In 1,562,058 500,000 1,562,058 - 100.00%1,062,058 212.41% Operating Revenue Total 86,630,895 95,064,075 95,470,292 8,839,397 110.20%406,216 0.43% Non-Operating Revenue 45001:Misc Revenue 35,000 195,508 523,214 488,214 1494.90%327,706 167.62% 45004:Sale of Property 10,000 10,813,949 4,127,598 4,117,598 41275.98%(6,686,351) -61.83% 44001:Grant Revenue - 1,860 - - 0.00%(1,860) -100.00% 46001:Bond Proceeds 54,648,625 5,055,000 54,065,000 (583,625) 98.93%49,010,000 969.54% 46002:Bond Premium - - 652,424 652,424 0.00%652,424 0.00% Non-Operating Revenue Total 54,693,625 16,066,317 59,368,236 4,674,611 108.55%43,301,919 269.52% Revenue Total 141,324,520 111,130,393 154,838,528 13,514,008 109.56%43,708,136 39.33% FY2021 Year-to-date: Budget Vs. Actuals Quarterly Comparison Page 26 of 43 Electric Fund Revenue - Projections Electric Services Quarterly Comparison: Q4 FY2021 Budget FY2021 FY2021 YTD Actuals: Q4 FY2021 Variance % of Budget Projections FY2021 Variance Fav/(Unfav)% of Projection Operating Revenue 40002:Sales Taxes 5,000 5,863 863 117.25%5,000 863 117.25% 40005:Franchise Taxes 115,732 - (115,732) 0.00%- - 0.00% 41002:Penalties 553,724 848,000 294,276 153.14%547,759 300,241 154.81% 42001:Interest Income 5,000 33,570 28,570 671.40%20,828 12,742 161.18% 43001:Fees 685,000 1,036,657 351,657 151.34%868,887 167,770 119.31% 43004:Administrative Charges 3,222,103 3,222,103 (0) 100.00%3,222,103 (0) 100.00% 43601:Electric Sales Charges 78,982,278 80,933,053 1,950,775 102.47%79,081,809 1,851,244 102.34% 44502:Developer Contributions 1,500,000 7,828,988 6,328,988 521.93%6,100,000 1,728,988 128.34% 70001:Transfers In 1,562,058 1,562,058 - 100.00%1,562,058 - 100.00% Operating Revenue Total 86,630,895 95,470,292 8,839,397 110.20%91,408,444 4,061,848 104.44% Non-Operating Revenue 45001:Misc Revenue 35,000 523,214 488,214 1494.90%233,023 290,191 224.53% 45004:Sale of Property 10,000 4,127,598 4,117,598 41275.98%2,526,604 1,600,994 163.37% 44001:Grant Revenue - - - 0.00%- - 0.00% 46001:Bond Proceeds 54,648,625 54,065,000 (583,625) 98.93%54,065,000 - 100.00% 46002:Bond Premium - 652,424 652,424 0.00%652,424 0 100.00% Non-Operating Revenue Total 54,693,625 59,368,236 4,674,611 108.55%57,477,051 1,891,185 103.29% Revenue Total 141,324,520 154,838,528 13,514,008 109.56%148,885,495 5,953,033 104.00% FY2021 Year-to-date: Budget Vs. Actuals Year-End: Projections Vs. Actuals Page 27 of 43 Electric Fund Operating Revenue – Electric Sales Revenue •Electric Sales Revenue •Represents 91% of budgeted Electric Fund operating revenue •$81 million, or 102% of electric sales revenue budget received through the quarter •Electric sales revenue is down 6% compared to the same period of FY2020 •Rate agreements and adjustments •Mild weather in June, July, and August compared to FY2020 -6% 80,933,053 ELECTRIC SALES CHARGES K 5.0M 10.0M 15.0M 20.0M 25.0M Q1 Q2 Q3 Q4 FY2020 FY2021 Page 28 of 43 Electric Fund Expense - Quarterly Electric Services Quarterly Comparison: Q4 FY2021 Budget FY2021 YTD Actuals: Q4 FY2020 YTD Actuals: Q4 FY2021 Variance % of Budget Variance % Variance Operating Expense City of Georgetown (Only)- 252,201 - - 0.00%252,201 -100.00% CC0001 Non-Departmental 5,506,375 4,868,428 6,520,044 (1,013,669) 118.41%(1,651,616) 33.93% CC0522 Electric Administration 8,738,792 10,243,728 8,868,267 (129,476) 101.48%1,375,461 -13.43% CC0525 T&D Services 3,122,421 3,951,577 4,185,597 (1,063,176) 134.05%(234,020) 5.92% CC0526 Systems Engineering - (291,007) - - 0.00%(291,007) -100.00% CC0537 Electric Resource Management 108,334,393 65,419,453 109,915,572 (1,581,179) 101.46%(44,496,120) 68.02% CC0555 Electric Systems Operations 1,610,228 1,441,701 1,579,253 30,976 98.08%(137,552) 9.54% CC0557 Electrical Engineering 663,952 839,101 1,070,057 (406,104) 161.16%(230,955) 27.52% CC0521 Electric Technical Services 727,388 603,639 670,962 56,426 92.24%(67,322) 11.15% CC0524 Metering Services 2,022,094 1,848,935 1,939,497 82,597 95.92%(90,562) 4.90% CC0526 Systems Engineering - (291,007) - - 0.00%(291,007) -100.00% Operating Expense Total 130,725,643 89,177,755 134,738,524 (4,012,881) 103.07%(45,560,769) 51.09% Non-Operating Expense CC0001 Non-Departmental 4,375,805 3,924,104 4,298,971 76,834 98.24%(374,867) 9.55% CC0557 Electrical Engineering 8,166,143 1,850,513 3,386,145 4,779,997 41.47%(1,535,632) 82.98% CC0526 Systems Engineering - 1,030,860 - - 0.00%1,030,860 -100.00% Non-Operating Expense Total 12,541,948 6,805,477 7,685,116 4,856,831 61.28%(879,639) 12.93% Expense Total 143,267,591 95,983,232 142,423,640 843,951 99.41%(46,440,408) 48.38% FY2020 FY2021 FY2021 Year-to-date: Budget Vs. Actuals Quarterly Comparison Page 29 of 43 Electric Expense Fund - Projections Electric Services Quarterly Comparison: Q4 FY2021 Budget FY2021 YTD Actuals: Q4 FY2021 Variance % of Budget Projections 2021 Variance Fav/(Unfav)% of Projections Operating Expense City of Georgetown (Only)- - - 0.00%- - 0.00% CC0001 Non-Departmental 5,506,375 6,520,044 (1,013,669) 118.41%6,668,720 148,676 97.77% CC0522 Electric Administration 8,738,792 8,868,267 (129,476) 101.48%8,944,477 76,210 99.15% CC0525 T&D Services 3,122,421 4,185,597 (1,063,176) 134.05%3,089,942 (1,095,655) 135.46% CC0526 Systems Engineering - - - 0.00%80,506 80,506 0.00% CC0537 Electric Resource Management 108,334,393 109,915,572 (1,581,179) 101.46%108,331,349 (1,584,223) 101.46% CC0555 Electric Systems Operations 1,610,228 1,579,253 30,976 98.08%1,639,454 60,202 96.33% CC0557 Electrical Engineering 663,952 1,070,057 (406,104) 161.16%715,684 (354,372) 149.52% CC0521 Electric Technical Services 727,388 670,962 56,426 92.24%717,148 46,186 93.56% CC0524 Metering Services 2,022,094 1,939,497 82,597 95.92%2,029,912 90,414 95.55% CC0526 Systems Engineering - - - 0.00%80,506 80,506 0.00% Operating Expense Total 130,725,643 134,738,524 (4,012,881) 103.07%132,217,192 (2,521,332) 101.91% Non-Operating Expense CC0001 Non-Departmental 4,375,805 4,298,971 76,834 98.24%4,373,805 74,834 98.29% CC0557 Electrical Engineering 8,166,143 3,386,145 4,779,997 41.47%8,166,142 4,779,997 41.47% CC0526 Systems Engineering - - - 0.00%- - 0.00% Non-Operating Expense Total 12,541,948 7,685,116 4,856,831 61.28%12,539,947 4,854,831 61.29% Expense Total 143,267,591 142,423,640 843,951 99.41%144,757,139 2,333,499 98.39% FY2021 FY2021 Year-to-date: Budget Vs. Actuals Year-End: Projections Vs. Actuals Page 30 of 43 Electric Fund Net Purchased Power •Net Purchased Power •72% of Electric Fund operating expenses •$109 million, or 100% of purchase power expense through the quarter •Purchase power is up 63% compared to the same period of FY2020 •Winter storm •Congestion and transmission issues (Q1) 84% 109,697,080 NET PURCHASED POWER K 10.0M 20.0M 30.0M 40.0M 50.0M 60.0M 70.0M Q1 Q2 Q3 Q4 FY2020 FY2021 Page 31 of 43 Electric Fund Purchased Power •Q4: FY2020 •Net Purchase Power Budget: $59,500,000 •Purchased Power: $61,542,930 •REC Sales: ($1,145,021) •CRR Credits: ($1,858,623) •Net Purchased Power: $58,539,286 •% of Net Purchase Power Budget: 98% •Q4: FY2021 •Net Purchase Power Budget: $60,270,000 •Purchased Power: $60,707,818 •Removed $48,000,000 •REC Sales: ($4,116,849) •CRR Credits: $989,263 •Net Purchased Power: $57,580,232 •% of Net Purchase Power Budget: 96% Page 32 of 43 Electric Fund Expenses •CC0001 Non-Departmental •Write-off of uncollectible bill revenue •CC0525 T&D Services and CC05557 Electrical Engineering •Capitalization of labor to CIP expense (year-end) •Personnel expenses look inflated and capital expenses look deflated at year-end. This entry shows up on the balance sheet, not in budget schedules •Overall fund projected to end the year near budget with fully funded reserves Page 33 of 43 Grants Update -Winter Storm Uri 2021 •3 Projects submitted to FEMA for Category B – Emergency Protective Measures Project Expenses Tracked – Cat B Original Submittal Final Submittal Status Citywide Activities $1,089,925.8 6 $542,728.43 $458,776.18 Pending FEMA review Electric Activities $904,170.28 $524,403.71 $510,229.75 Denied by FEMA. City to Appeal Water Activities $261,788.61 $261,788.61 $67,832.18 Pending FEMA review Only overtime pay is eligible to be submitted for reimbursement. Regular pay related to the storm was tracked but not submitted to FEMA. Page 34 of 43 FY2021 WINTER STORM URI ENERGY COSTS UPDATE Page 35 of 43 Recap of Winter Storm Energy Expense •Winter Storm Uri resulted in extra-ordinary purchased power expenses -$48 million •City debt financed the costs over a 10-year period •Currently modeled to be repaid by existing Electric Power Cost Adjustment Revenue •The Existing PCA rate of 1.375 cents per kWh effective 1/1/21 will help us pay for the debt service associated with this debt. •Treating these extra-ordinary purchased power expenses as an operating expense breaks the minimum debt coverage ratio requirement of 1.35x (net operating revenues do not cover debt expense 1.35 times). •Options to meet the bond covenant requirements: Springing Reserve or Regulatory Asset Page 36 of 43 Springing Reserve Option Existing utility bond covenants require meeting minimum debt coverage ratio, or else must fund a “springing reserve” •$6.4M current value of springing reserve •Reserve requirement would increase as City continued issuing revenue bonds to meet infrastructure demands for growth •Would need to decrease expenses or increase rates to fund reserve Page 37 of 43 Regulatory Asset Accounting Treatment of Winter Storm Energy Expense •Follow Generally Accepted Accounting Principles (GAAP) Regulatory Asset Treatment under GASB 62, in consultation with External Auditor, Financial Advisor and Bond Counsel, and other municipal owned electric utilities in Texas. •Create a Regulatory Asset on the GAAP financial statement for $48M and amortize this over 20 years. •Decrease operating purchased power expenses on the GAAP financial statement in 2021 by $48 million and increase amortization expense by $1.2M. •The resulting debt coverage ratio calculation meets coverage requirements required by our debt covenants. Page 38 of 43 ELECTRIC ENGINEERING AND OPERATIONS MIKE WESTBROOK ELECTRIC OPERATIONS AND ENGINEERING MANAGER City of GeorgetownPage 39 of 43 Performance Metrics City of Georgetown DEC. 2021 Nov.Dec.Good Caution Alert Training 99%100%>90%90%-80%<80% Safety 100%100%>90%90%-80%<80% SO OTC 100%100%>90%90%-80%<80% PM WO OTC 100%100%>90%90%-80%<80% CM WO OTC 100%100%>90%90%-80%<80% Electric Reliability (SAIFI)0.515 0.547 <1 1-2 >2 Electric Outage Duration (CAIDI)85.885 85.174 <116 116-200 >200 Page 40 of 43 Top Five Outages & Event City of Georgetown Date Start Time Duration (min) Customers Affected Customer Minutes Cause Area 12/2/2021 2:18pm 46 1 46 Bad Neutral Georgetown 12/8/2021 11:53pm 148 1 148 Blown Fuse Rivery 12/9/2021 11:34am 116 511 59,276 U.G. Primary Dig-in Rivery 12/12/2021 8:47am 136 1 136 Tree in the primary/blown fuse Georgetown South 12/23/2021 12:55pm 35 3 105 Blown Fuse Georgetown South Date Start of Event End of Event # of Outages Average Duration Cause Area 12/18/2021 2:26am 7:52am 7 95.6 High Winds Various Page 41 of 43 Questions? Page 42 of 43 Executive Session: In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes, Annotated, the item listed below will be discussed in closed session and is subject to action in the regular session. –Daniel Bethapudi, General Manager of the Electric Utility Sec. 551.086 Competitive Matters •Purchased Power Review Page 43 of 43