minutes of lincoln electric system … · michael reed, kelley porter, giao nguyen, emily koenig,...

MINUTES OF LINCOLN ELECTRIC SYSTEM ADMINISTRATIVE BOARD Minutes of regular meeting held at 9:30 a.m., Friday, August 17, 2018, at the offices of

Lincoln Electric System, 1040 O Street, Lincoln, Nebraska. Board Members Present: Layne Sup, Tammy Ward, DaNay Kalkowski, Andy

Hunzeker, Sarah Peetz, Lucas Sabalka, Vicki Huff, Jerry Hudgins

Board Members Absent: Vacant Board Seat LES Staff Present: Kevin Wailes, Shelley Sahling-Zart, Laura Kapustka, Jason

Fortik, Dan Pudenz, Paul Crist, Lisa Hale, Trish Owen, Lacy Stockdale, Jim Rigg, Melissa Palmer, Jonathan Jakub, J.D. Linscott, Lucas Fahrer, Kent Koerber, Dennis Florom, Michael Reed, Kelley Porter, Giao Nguyen, Emily Koenig, Bryan Willnerd, Dave Auman, Troy Hopkins, Marc Shkolnick, Scott Benson, Dustan Daniel, Cindy Potter, Eric Ruskamp

Others Present: Josh Miller, Steph Reed News Media Present: None Chair Layne Sup called the meeting to order at approximately

9:30 a.m. A safety briefing was provided. He noted that LES conducts its meetings in compliance with the Nebraska Open Meetings Act, and noted that copies of the Act are located near the entrance to the Board room.

Chair Sup asked for approval of the minutes of the meeting of

July 20, 2018. Sarah Peetz moved their approval. Vicki Huff seconded the motion. The vote for approval of the minutes was:

Aye: Sup, Ward, Kalkowski, Hunzeker, Peetz, Sabalka, Huff, Hudgins Nay: None Absent: Vacant Board Seat

Michael Reed, Crew Leader, Transportation, Corporate Operations,

was recognized by the Board for 20 years of service to LES.

Call to Order Approval of Minutes Introduction and Recognition of Staff

- 2 -

Sarah Peetz, Chair of the Operations & Power Supply Committee, reported on Committee discussion which included the following: 1) an overview of the Right of Way Assurance Program; 2) an update on the LES Operations Center (LOC) construction; 3) 2019 power cost review; 4) 2018 second quarter generation revenue and cost report; and 5) a generation and environmental discussion.

Jerry Hudgins, Chair of the Finance & Audit Committee, reported on

Committee discussion which included the following: 1) a physical security update; 2) an ERM specific risk overview – health insurance; 3) the semi-annual investment report; 4) Internal Audit’s second quarter report; and 5) an update on District Energy Corporation (DEC) and Nebraska Utility Corporation (NUCorp).

Vicki Huff, Chair of the Personnel & Organization Committee,

reported on Committee discussion which included the following: 1) an update on LES’ networking and employee development group, PluggedIn; 2) an ERM specific risk overview – health insurance; 3) an update regarding incident reporting and worker’s compensation through the second quarter of 2018; 4) an occupational health and wellness update; 5) a mid-year review of health and dental claims; and 6) miscellaneous updates.

Eric Ruskamp, Manager, Regulatory Compliance, presented the

Board with a North American Electric Reliability Corporation (NERC) overview and compliance update. (Exhibit I) As a refresher, Ruskamp went over the history of NERC, regulatory hierarchy, reliability standards and compliance enforcement. Ruskamp also noted audits and assessments on the horizon for LES.

Dennis Florom, Manager, Energy & Environmental Operations, gave

the Board an overview of the Southwest Power Pool (SPP). (Exhibit II) Nebraska was integrated in 2009 and the Integrated Marketplace launched in 2014. As a refresher, Florom reviewed the functions and services of the SPP Regional Transmission Organization (RTO).

J.D. Linscott, Manager, Facilities Operation, presented the Board

with an update on the LES Operations Center (LOC). (Exhibit III) Currently, all structures of Phase 1 are up and mostly enclosed, DEC services have started and permanent

Operations & Power Supply Committee Finance &Audit Committee Personnel & Organization Committee North American Electric Reliability Corporation (NERC) Overview and Compliance Update Southwest Power Pool LES Operations Center (LOC) Update

- 3 -

site fencing is being installed. The design portion of Phase 2 should be completed in the fall of 2018. Linscott noted that as of January 5, 2018, 93% of sub contracts were awarded to local or Nebraska companies

Kelley Porter, Manager, Customer & Corporate Communications,

gave the Board an overview of LES’ recent Sustainable Living Festival (SLF). (Exhibit IV) LES held its annual Sustainable Living Festival on Saturday, July 28, 2018, in the Railyard. It was estimated that more than 1,000 people attended the event. LES had approximately 400 entries for the bike giveaway and also gave away a Wi-Fi-enabled thermostat to promote LES’ newly launched Peak Rewards program. The SLF hosted 45 community partners, 10 of which were new this year. Nebraska Recycles collected 4,000 pounds of electronic waste and raised $400 for Bright Lights Summer Learning Adventures.

The Monthly Financial and Power Supply Reports were distributed to

the Board and staff was available to answer questions. (Exhibit V)

The next regular meeting of the LES Administrative Board is

scheduled for Friday, September 21, 2018, at 9:30 a.m. There being no further business before the Board, Layne Sup

declared the meeting adjourned at approximately 11:45 p.m

Sustainable Living Festival Report Monthly Financial and Power Supply Reports Next Meeting Adjournment

DaNay Kalkowski, Secretary

BY: S/Lacy Stockdale Lacy Stockdale Assistant Secretary

Exhibit I

LES.com

NERC Overview andCompliance Update

Eric RuskampManager, Regulatory Compliance

August 17, 2018

1

LES.com

Agenda

NERC Overview• History• Regulatory Hierarchy• Reliability Standards• Compliance Enforcement

Compliance Update• Noteworthy Changes• Standards Activity

2

LES.com

NERC | History

How long has NERC been around?a) 5 yearsb) 14 yearsc) 22 yearsd) 32 yearse) 50 years

3

LES.com

NERC | History

How long has NERC been around?a) 5 yearsb) 14 yearsc) 22 yearsd) 32 yearse) 50 years

4

LES.com

NERC | History

The Event – Nov 9, 1965• A single wrongly set relay in

Ontario caused a key 345kV transmission line to open

• Escalating line overloads • Within 5 minutes, islanding

across much of the Northeast• 25 Million people (80,000 square

miles) were without electricity lasting up to 12 hours

• Reason: varying operating standards developed somewhat independently

5

LES.com

NERC | History

The Result• North American Electric Reliability Council (NERC) formed on

June 1, 1968 under the Electric Power Reliability Act of 1967• Began developing Operating Policies• Adopted Planning Standards in 1997

6

LES.com

NERC | History

7

1965–2003 Major Outages• 1969 – Florida, 2m people• 1977 – New York, 9m people• 1981 – Utah, 1.5m people• 1982 – California, 5m people• 1985 – Florida, 4.5m people• 1996 – Western US and Canada, 7.5m people

LES.com

NERC | History

August 14, 2003• Largest Blackout in North

American history• Originated in Akron, OH• Affected 50 million people• Financial loses estimated at

$6 Billion

• Trees!• Line Overloads• Lost 21 power plants in 3 min

8

LES.com

NERC | History

1965 2003

9

LES.com

NERC | History

Enforcement Needed• EPACT 2005 signed by President Bush on

August 8, 2005• Authorized the creation of the Electric Reliability

Organization (ERO) to span North America with FERC oversight in the US.....

• North American Electric Reliability Corporation (NERC)

• June 18, 2007 Mandatory Enforcement began

10

LES.com

NERC | Reliability Standards

generation-load balance contingency reserves communication protocols cyber security physical security system restoration emergency operations interconnection requirements vegetation management facility ratings operating limits

transmission loading relief outage coordination real-time assessments model development system operator training system protection underfrequency load shedding generator capability coordination operations planning transmission planning voltage control

11

LES.com


Balancing Authority Distribution Provider Generation Owner Generation Operator Planning Coordinator Reliability Coordinator Transmission Owner

Transmission Operator Transmission Planner Transmission Service Provider Resource Planner Reserve Sharing Group

12

Functional Entity Registration

LES.com


Balancing Authority Distribution Provider Generation Owner Generation Operator Planning Coordinator Reliability Coordinator Transmission Owner

Transmission Operator Transmission Planner Transmission Service Provider Resource Planner Reserve Sharing Group

13

Functional Entity Registration

LES.com


14

LES.com


15

LES.com


16

LES.com


FAC-008-3 - Facility Ratings• Purpose - To ensure that Facility Ratings used in the reliable planning and

operation of the Bulk Electric System (BES) are determined based on technically sound principles.

• Applies to Transmission and Generation • 8 Requirements, 27 sub Requirements - Development and implementation of

methodology

• 1,632 Transmission Elements• 95 Generation Elements

17

LES.com


NERC Reliability Standards 101 enforceable

• 79 applicable to LES 500+ Requirements

• 300+ applicable to LES

An additional 1,100 sub Requirements within the standards (not counting bullet points and attachments)

18

LES.com

NERC | Regulatory Hierarchy

19

FERC

NERC

SERC FRCC RFC MRO TREWECCNPCC

Provides oversight & direction

LES.com


20

FERC

NERC


Develops & Enforces Reliability Standards

LES.com


21

FERC

NERC


Audits the NERC Reliability Standards

LES.com


22

NERC Regional Entities

LES.com


MRO - Regional Entity• Compliance & Enforcement• Registration & Certification• Seasonal and Long-term Assessments• Data Submittals

23

LES.com

NERC | Enforcement

The MRO monitors, assesses, and enforces compliance with Reliability Standards using eight monitoring processes:

• Compliance Audits• Self-Certifications• Spot Checking• Compliance Violation Investigations• Self-Reporting• Periodic Data Submittals• Exception Reporting• Complaints

24

LES.com

NERC | Enforcement

The MRO monitors, assesses, and enforces compliance with Reliability Standards using eight monitoring processes:

• Compliance Audits• Self-Certifications• Spot Checking• Compliance Violation Investigations• Self-Reporting• Periodic Data Submittals• Exception Reporting• Complaints

25

LES.com

NERC | Enforcement

Compliance Oversight Plans (COPs) Performed by MRO

26

LES.com

NERC | Enforcement

Compliance Audits May 2017 onsite audit (every 3 years)

• Preceded by offsite compliance review• 21 NERC Standards• 2,238 evidentiary files provided

May 2019 offsite audit (every 2 years)

2020 onsite audit

Audits typically led by MRO 2 Teams

• Ops & Planning Audit• CIP Audit

27

LES.com

NERC | Enforcement

“Guided” Self Certifications1. List all facilities2. Perform random sample3. Create population4. Documentation for identified Requirements

2017 – 4 Reqs 2018 – 7 Reqs 2019 – 11 Reqs

28

LES.com

NERC | Enforcement

Self ReportingExpectation to self identify and Self Report matters of potential noncompliance

1. Issues reported to internal RC Dept.2. RC Dept. investigates3. Formal report and presentation provided to LES Compliance

Committee• LES Board and MRO notified

29

LES.com

Annual Internal Review

40 SMEs 12 Group Managers

Regulatory Compliance

30

450 Tracking Records• Compliance narrative • Supporting evidence

LES.com

Compliance Update

2019-2020 Compliance Reviews• Performance of LES’ Inherent Risk Assessment in 2019• Offsite audit in May 2019• Onsite audit in 2020• 11 guided Self Certs in 2019

31

LES.com

Compliance Update

SPP RE Dissolution

32

LES.com

Compliance Update

NERC and MRO Dues

33

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

2007 2009 2011 2013 2015 2017 2019

MRO

NERC

Total

• MRO dues to reduce 14.6% • NERC dues to increase 10.3%

LES.com

Compliance Update

Leadership changes• Jim Robb – President & CEO of NERC, April 2018• Sara Patrick – President & CEO of MRO, June 2018

34

Peak Reliability dissolution • Ending Reliability Coordinator

services end of 2019• SPP and Cal ISO are exploring

RC certification

LES.com

Compliance Update

Large Financial Penalty• An unidentified entity received a $2.7 million penalty for the violation of

2 NERC requirements.• A third-party contractor exceeded its authorized access by improperly

copying data from the entity to its own server. Though trained, the contractor failed to properly protect the data which included 30,000 asset records, including IP addresses, server host names, cryptographic information for usernames and passwords (which could aid a malicious attacker in decoding passwords). The data was accessible online without user ID or password for 70 days.

• A white hat security researcher notified the entity of the exposure. • Logs indicate that only the white hat researcher downloaded the data.

35

LES.com

Compliance Update

New/Revised Standards• FERC directives• Reliability needs• Clarifications/improvements

• Drafting teams comprised of industry volunteers• Develop and provide comments and voting recommendations

o 66.66% approval needed• Implement new standards before enforcement date

36

LES.com

Compliance Update

Standards Under Development• 13 Projects

o Establishing System Operating Limitso Single Points of Failureo Supply Chain Managemento Training

• Standards Efficiency review

Standards being implemented• 7 implementation plans

o Generator Modeling and Testingo Communications Testing

37

LES.com

Compliance Update

NERC 2018 Summer Assessment• Texas has a generation shortfall due in part to 5,000 MW of generation

retirements since last summer. The projected reserve margin is 11%, 3% below their recommended level.

• California is facing a limit on natural gas output due to Aliso Canyon storage facility constraints. Anticipated below normal hydro generation and the need for fast-ramping generation based on high penetration of renewables will also challenge California.

• SPP footprint does not have any emerging reliability issues that are considered unique.

38

LES.com

Compliance Update

NERC 2018 State of Reliability Report• The report looks back over the previous year with a view toward solving

future problems.

• In 2017, the bulk power system was able to maintain reliable operations during two Category 5 events (hurricanes Harvey and Irma) and the areas affected from storm-related damage recovered in record time.

• The bulk power system experienced no loss-of-load due to cyber or physical security events despite continually evolving threats.

• Transmission outages caused by failed protection system equipment, substation equipment, or human error all show a decreasing trend for the last five years.

39

LES.com

NERC Overview andCompliance Update

40

Eric RuskampManager, Regulatory Compliance

Exhibit II

LES.com

Click to add title

1

Southwest Power Poolwww.spp.org

Dennis FloromManager, Energy & Environmental Operations

8/17/18

LES.com 2

LES.com 3

Southwest Power Pool Regional Transmission Organization (RTO)

Helping our members work together to keep the lights on…today and in the future.

• Headquartered in Little Rock, Arkansas; • Approximately 600 employees• Formed in 1941 for Reliability Coordination• Approved in 2004 as an RTO• Nebraska integrated in 2009• Integrated Marketplace launched in 2014• Integrated System (north of NE) integrated in 2015• 24 X 7 operation with full redundancy and backup• Revenue neutral• Member driven• FERC approved, governing tariff

LES.com 4

SPP Membership Profile

LES.com 5

SPP RTO Functions and Services

• Consolidated Balancing Authority• Energy• Other generator capabilities

• Reliability Coordinator• Transmission Planner• Market Operator

• Unit Commitment• Day-Ahead Market• Real-Time Energy Market

LES.com 6

LES as a Balancing Authority(Prior to 2009)

• Forecast load• Commit own units or purchase/sell energy schedules

in advance• Purchases often limited to neighbors

• Quickly adjust in real-time• Forecast errors• Unit outages

• Schedules generally in larger blocks • Leftover MW’s could go unused

LES.com 7

Consolidated Balancing Authority

• SPP forecasts the regional load• SPP has an obligation to serve the load in real-time• Generators are offered to SPP by market participants

• The load serving entity has a capacity requirement• Peak load plus 12% Reserve Margin

• SPP commits units a day in advance for the entire footprint• Economics• Reliability

LES.com 8

Generation

• Different fuel sources• Sourced throughout the footprint• Ramp times vary• Some are intermittent

LES.com 9

Loads

• Spread throughout the footprint• Instantaneous impact to the system• Metered by local utilities

• Information submitted to SPP every 2 seconds

LES.com 10

Balancing: A simple equation

Generation + Purchases

EQUALS

Metered Load + Sales

LES.com 11

Reliability Coordinator

LES.com 12

LES.com 13

TransmissionPlanner

• Create regional transmission planning models• Differing seasons, scenarios, and length of the study

• Provide transmission expansion recommendations• Regional reliability and compliance• Congestion relief• Economic benefits• Public policy benefits

• Almost $13B in projects approved in last 13 years

LES.com 14

LES.com 15

LES.com 16

Transmission Construction

• Unless sponsored or directly assigned, approved transmission costs are socialized• 300kV and above - 100%• 100kV to 300kV – 33%• 100kV and below – 0%

• Fairness review of costs• Calculation of costs and benefits

LES.com 17

Market Operator

LES.com 18

What is the market?

LES.com 19

Regulation and Reserves

• Regulation Up and Down service• On-line units are held back in order to

move as directed in real-time• Reserves

• Units held back to replace energy lostin an emergency event

LES.com 20

Unit Commitment and Day-Ahead Market

• SPP forecasts load for the next day• Participants submit their offers

• Energy• Regulation• Reserves

• Least-cost, reliable solution to meet the load forecast and reserve requirements• Units are committed and receive a 24 hour schedule at

2:00 pm today for the next day• Settles financially on an hourly basis before

anything flows

LES.com 21

Real-Time Balancing Market• Balances real-time load and generation

• Load forecasting error• Unit performance vs Day-Ahead projection• Intermittent generation

• Operates and settles on a 5-minute basis• Any units that operate differently than their

DA market instruction • Buy back or sell in the real-time• Subject to financial penalties

LES.com 22

SPP’s Integrated Marketplace

LES.com 23

Locational Marginal Pricing (LMP)

• Energy prices in the SPP footprint vary by location

• Hourly in the day-ahead• Every 5 minutes in the real-time

• Three components to the price• Marginal Energy• Congestion• Losses

LES.com 24

What is congestion?• Transmission “bottlenecks”• Congestion caused by:

• Long-Term• Load growth • Energy sources located far from customers

• Short-Term• Line and generator outages

• Results in inability to use least-cost energy to meet demand

• Creates price separation in the footprint• Products are available to reduce financial exposure

LES.com 25

SPP Congestion - 2017

LES.com 26

SPP LMP MapRight Now

http://pricecontourmap.spp.org/pricecontourmap/


LES.com

SPP FacilitationMember Driven

27

LES.com 28

Market Statistics

LES.com 29

SPP Generating Capacity(Over 87,000 MW)

LES.com 30

2017 Energy Production

LES.com

Pending Generator Interconnection Requests

31

LES.com 32

1 GW = 1,000 MW

LES.com 33

LES.com 34

LES.com 35

Fuel on the Margin

LES.com 36

SPP Generation MixRight Now


Then click on the Generation Icon


LES.com 37

* In 2017, LES was approximately 1.4% of system energy usage in SPP

LES.com 38

Questions?

* Some information in this presentation was taken from SPP publicly available material with consent.

Exhibit III

LES Operations Center Update

JD Linscott– Manager, Facilities Operation

Board Meeting 8/17/181

Progress to Date

Design:• Phase 2 Design GMP set Completed (80% plan set under review)

Phase 1 Construction:• All major sub contracts awarded

• As of 1-5-2018 93% awarded to local or Nebraska companies

• Dollars kept ‘at home’ equals $37.5M

• Structures all up, mostly enclosed

• DEC services have started

• Northwest section of operations building starting final finishes

• Fleet structure enclosed, fuel tanks/island installed

• Permanent site fencing being installed

• B&G building enclosed, beginning inside finishes

3

Next Steps

4

Design:• Phase 2 – will finish fall of 2018

LOC Campus Construction:• Fleet substantial completion - Sept 2018

• B&G building substantial completion – Sept 2018

• Operations building substantial completion – December 2018

• GMP (Guaranteed Maximum Price) Phase 2 due – Sept 2018

• Early Phase 2 Bid Packs – Foundations, Precast, Steel Supply, MEP (Mechanical-Electrical-Plumbing)

• Start Phase 2 Foundations – Sept 2018

5

Site Plan

N

6

Site Plan

N

7

N

Site Plan

8

Site Pictures

9

Overall Project Budget Update Through Month Ending:

Current Budget Spent to Date Yet to SpendSoft Costs 7,090,469$ 5,182,063$ 2,377,478$ Hard Costs 92,223,914$ 38,994,029$ 53,229,885$ Total 101,111,671$ 45,075,525$ 56,505,219$ Owner Contingency Remaining Above Total Budget 3,607,898.18$

June 2018 Financials

Exhibit IV

LES.com

Sustainable Living Festival Overview

Kelley Porter, Manager, Customer & Corporate Communications

1

• 8th year of this signature community event

• 1,500 estimated festivalgoers

• 53 volunteers

• 35 community partners; 12 new this year

• 1,000 recyclable bags handed out

Snapshot

2

• 4,000 lbs. of electronic waste collected, resulting in $400 raised for Bright Lights Summer Learning Adventures

• 24 paperless billing sign-ups

• 10 EV study sign-ups

• 168 entries for Wi-Fi thermostat giveaway

Snapshot

3

Engaging activities from community partners

4

Arbor Day FoundationThe ArtReach ProjectBig Red WormsBikeLNKCity of Lincoln, Autonomous Shuttle City of Lincoln Parks, Planning & Health DepartmentCity of Lincoln Solid Waste ManagementCity of Lincoln Watershed ManagementCommonGround NebraskaCommunity CropsElectric VehiclesEvolution AdvisoryGC ReVOLTHigh Level HappinessHVCcycle Inc.Joslyn Institute for Sustainable CommunitiesLancaster County Extension Master Gardeners Lincoln Children's Museum

Community partners

5

Keep Lincoln-Lancaster County BeautifulKZUMMonarch Gardens LLCNebraska Building ProductsNebraska Ethanol BoardNebraskans for SolarNebraska RecyclesNebraska Recycling CouncilNebraska811Pioneers Park Nature CenterSpring Creek Prairie Audubon CenterSustain UNLSWT Energy University of Nebraska State MuseumUNL Bee LabUNL Environmental Studies ProgramWheelie Good Bike Shop

* New community partners in bold

New LES programs

6

• LES ENERGIZERS / Kids’ Club• LES Peak Rewards Program• Electric Vehicle Study

7

• Little Lineworkers Rodeo• Electric Vehicles

• LES high-voltage demos• Snap Circuits/Electricity

activities

LES.com 8

Questions?

Exhibit V

2018 2018 PercentageActual Budget Difference Difference

YEAR TO DATE

1) Total Revenue $192,525 $185,641 $6,884 4%

Retail revenues have been consistently above budget, and through July are 3% above budget. This is primarily due to greater than budgeted use per residential customer combined with colder than average weather throughout the first four months of the year and warmer than average weather in the months since. Wholesale revenue is above budget 12.4% YTD primarily due to higher than budgeted sales into the SPP IM.

2) Power Costs 77,946 80,837 (2,891) -4%

Produced Power is 4% below budget on a YTD basis primarily due to LRS operation and maintenance costs. Purchased Power is also 4% below budget primarily due to favorable pricing in SPP IM and lower renewable wind expenses.

3) Other Operating Expenses 41,376 50,005 (8,629) -17%

Other Operating expenses (operation & maintenance, administrative & general) continue to be under budget (-17%) due to the timing of project spending in categories including line clearance, transmission, consulting services, software purchases, and sustainable energy program participation.

4) Depreciation 29,926 29,652 274 1%5) Total Expenses 149,248 160,494 (11,246) -7%

6) Operating Income 43,277 25,147 18,130 72%

7) Non-Operating Expense (Income) 23,076 23,584 (508) -2%

8) Change in Net Position (Net Revenue) $20,201 $1,563 $18,638 1192%

9) Debt Service Coverage Year-end Projection 2.66

10) Days Cash on Hand (Days) as of End of Month 191

Comments

LINCOLN ELECTRIC SYSTEMRevenue & Expense Statement (Condensed)

JULY 2018

(Dollar amounts in 000)

LES.com

LINCOLN ELECTRIC SYSTEM

FINANCIAL AND OPERATING STATEMENT

July 2018

INDEX

REVENUE & EXPENSE STATEMENT - CURRENT MONTH ------------------------------------------------------------- 1

REVENUE & EXPENSE STATEMENT - YEAR-TO-DATE ----------------------------------------------------------------- 2

REVENUES, ENERGY & CUSTOMERS - CURRENT MONTH ----------------------------------------------------------- 3

REVENUES, ENERGY & CUSTOMERS - YEAR-TO-DATE --------------------------------------------------------------- 4

OPERATING EXPENSE STATEMENT - CURRENT MONTH ------------------------------------------------------------- 5

OPERATING EXPENSE STATEMENT - YEAR-TO-DATE ----------------------------------------------------------------- 6

BALANCE SHEET --------------------------------------------------------------------------------------------------------------------- 7

STATEMENT OF CASH FLOWS -------------------------------------------------------------------------------------------------- 8

DEBT SERVICE COVERAGE ------------------------------------------------------------------------------------------------------ 9

INVESTMENT REPORT ----------------------------------------------------------------------------------------------------------- 10

NOTE: Federal Energy Regulatory Commission accounting guidance for the Southwest Power Pool Integrated Market (SPP IM) transactions (purchases, sales and other charges) requires netting together these transactions based on the time increments. If, during the time increment, sales to SPP are greater than purchases from SPP, the net amount is recorded as wholesale revenue. If, during the time increment, purchases from SPP are greater than sales to SPP, the net amount is recorded as purchased power cost. Because of this netting process, the energy (MWH’s) amounts no longer directly correlate to wholesale revenue.

REVENUE & EXPENSE STATEMENT JULY 2018 CURRENT MONTH

CURRENT CURRENT LAST YEARDESCRIPTION MONTH MONTH MONTH

ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT %OPERATING REVENUES 1. Retail $31,634,530 $34,848,220 ($3,213,690) -9.2% $31,135,515 $499,015 1.6% 2. Wholesale 3,358,718 2,911,017 447,701 15.4% 4,290,360 (931,642) -21.7% 3. Other Revenue 532,465 511,463 21,002 4.1% 448,706 83,759 18.7% 4. City Dividend 640,063 661,692 (21,629) -3.3% 639,885 178 0.0% 5. Total Operating Revenues 36,165,776 38,932,392 (2,766,616) -7.1% 36,514,466 (348,690) -1.0%

OPERATING EXPENSES 6. Purchased Power 5,415,729 6,799,061 (1,383,332) -20.3% 6,963,823 (1,548,094) -22.2% 7. Produced Power 6,409,916 6,589,923 (180,007) -2.7% 6,259,404 150,512 2.4% 8. Operations 1,829,732 2,676,507 (846,775) -31.6% 2,018,270 (188,538) -9.3% 9. Maintenance 865,283 737,229 128,054 17.4% 659,345 205,938 31.2%10. Administrative & General 3,470,419 3,919,432 (449,013) -11.5% 3,288,276 182,143 5.5%11. Depreciation 4,281,209 4,271,227 9,982 0.2% 4,261,948 19,261 0.5%12. Total Operating Expenses 22,272,288 24,993,379 (2,721,091) -10.9% 23,451,066 (1,178,778) -5.0%

13. OPERATING INCOME 13,893,488 13,939,013 (45,525) -0.3% 13,063,400 830,088 6.4%

NONOPERATING EXPENSES (INCOME)14. Interest Expense 2,300,140 2,258,304 41,836 1.9% 1,760,590 539,550 30.6%15. Capitalized Interest (178,705) (141,177) (37,528) 26.6% (44,984) (133,721) 297.3%16. Payments in Lieu of Taxes 1,451,991 1,718,451 (266,460) -15.5% 1,513,947 (61,956) -4.1%17. City Dividend Expense 622,269 622,269 0 0.0% 609,471 12,798 2.1%18. Other 23 0 23 - - 7 16 228.6%19. Total Other Expense 4,195,718 4,457,847 (262,129) -5.9% 3,839,031 356,687 9.3%20. Interest Income (350,366) (247,191) (103,175) 41.7% (146,591) (203,775) 139.0%21. Total Nonoperating Expense (Income) 3,845,352 4,210,656 (365,304) -8.7% 3,692,440 152,912 4.1%

22. Income Before Contributions 10,048,136 9,728,357 319,779 3.3% 9,370,960 677,176 7.2%

CONTRIBUTED CAPITAL23. Contributed Capital Received 86,352 107,317 (20,965) -19.5% 46,973 39,379 83.8%24. Contributed Capital Used (86,352) (107,317) 20,965 -19.5% (46,973) (39,379) 83.8%25. Net Contributed Capital 0 0 0 - - 0 0 - -

26. CHANGE IN NET POSITION $10,048,136 $9,728,357 $319,779 3.3% $9,370,960 $677,176 7.2%

Page 1


VARIANCE FROM VARIANCE FROMBUDGET LAST YEAR

REVENUE & EXPENSE STATEMENT JULY 2018 YEAR-TO-DATE

LAST YEARDESCRIPTION YEAR TO DATE YEAR TO DATE YEAR TO DATE

ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT %OPERATING REVENUES 1. Retail $163,246,902 $158,708,603 $4,538,299 2.9% $155,548,723 $7,698,179 4.9% 2. Wholesale 21,014,395 18,694,323 2,320,072 12.4% 24,576,086 (3,561,691) -14.5% 3. Other Revenue 4,028,959 3,950,850 78,109 2.0% 4,202,946 (173,987) -4.1% 4. City Dividend 4,234,985 4,286,950 (51,965) -1.2% 4,215,671 19,314 0.5% 5. Total Operating Revenues 192,525,241 185,640,726 6,884,515 3.7% 188,543,426 (5,796,378) 2.1%

OPERATING EXPENSES 6. Purchased Power 43,144,265 44,763,083 (1,618,818) -3.6% 46,329,267 (3,185,002) -6.9% 7. Produced Power 34,802,181 36,073,992 (1,271,811) -3.5% 40,334,346 (5,532,165) -13.7% 8. Operations 12,322,731 17,382,600 (5,059,869) -29.1% 13,647,106 (1,324,375) -9.7% 9. Maintenance 4,340,040 4,986,852 (646,812) -13.0% 3,749,392 590,648 15.8%10. Administrative & General 24,713,443 27,635,280 (2,921,837) -10.6% 24,040,222 673,221 2.8%11. Depreciation 29,926,424 29,652,476 273,948 0.9% 29,586,002 340,422 1.2%12. Total Operating Expenses 149,249,084 160,494,283 (11,245,199) -7.0% 157,686,335 (8,437,251) -5.4%

13. OPERATING INCOME 43,276,157 25,146,443 18,129,714 72.1% 30,857,091 12,419,066 40.2%

NONOPERATING EXPENSES (INCOME)14. Interest Expense 14,212,363 14,263,857 (51,494) -0.4% 13,553,537 658,826 4.9%15. Capitalized Interest (770,907) (1,072,609) 301,702 -28.1% (327,910) (442,997) 135.1%16. Payments in Lieu of Taxes 6,917,416 7,682,434 (765,018) -10.0% 7,553,722 (636,306) -8.4%17. City Dividend Expense 4,355,885 4,355,883 2 0.0% 4,266,295 89,590 2.1%18. Other (1,732) 0 (1,732) - - 2,104 (3,836) -182.3%19. Total Other Expense 24,713,025 25,229,565 (516,540) -2.0% 25,047,748 (334,723) -1.3%20. Interest Income (1,636,775) (1,645,406) 8,631 -0.5% (892,892) (743,883) 83.3%21. Total Nonoperating Expense (Income) 23,076,250 23,584,159 (507,909) -2.2% 24,154,856 (1,078,606) -4.5%

22. Income Before Contributions 20,199,907 1,562,284 18,637,623 1193.0% 6,702,235 13,497,672 201.4%

CONTRIBUTED CAPITAL23. Contributed Capital Received 499,190 751,219 (252,029) -33.5% 437,460 61,730 14.1%24. Contributed Capital Used (499,190) (751,219) 252,029 -33.5% (437,460) (61,730) 14.1%25. Net Contributed Capital 0 0 0 - - 0 0 - -

26. CHANGE IN NET POSITION $20,199,907 $1,562,284 $18,637,623 1193.0% $6,702,235 $13,497,672 201.4%

Page 2



REVENUES, ENERGY & CUSTOMERS JULY 2018 CURRENT MONTH


ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT %REVENUE 1. Residential $14,597,663 $14,027,961 $569,702 4.1% $14,676,265 ($78,602) -0.5% 2. Commercial (a) 12,116,311 11,986,711 129,600 1.1% 11,890,690 225,621 1.9% 3. Industrial 2,925,672 3,104,359 (178,687) -5.8% 2,958,896 (33,224) -1.1% 4. Street Light 213,931 194,391 19,540 10.1% 195,508 18,423 9.4% 5. Total Billed 29,853,577 29,313,422 540,155 1.8% 29,721,359 132,218 0.4% 6. Unbilled Change 1,780,951 5,534,798 (3,753,847) 0.0% 1,414,156 366,795 0.0% 7. Total Retail 31,634,528 34,848,220 (3,213,692) -9.2% 31,135,515 499,013 1.6% 8. SPP Sales 1,925,375 1,382,790 542,585 39.2% 2,615,122 (689,747) -26.4% 9. Contract Sales 1,433,343 1,528,227 (94,884) -6.2% 1,675,238 (241,895) -14.4%10. Total Wholesale 3,358,718 2,911,017 447,701 15.4% 4,290,360 (931,642) -21.7%11. Total $34,993,246 $37,759,237 ($2,765,991) -7.3% $35,425,875 ($432,629) -1.2%ENERGY (Megawatt-Hours)12. Residential 135,679 129,601 6,078 4.7% 130,883 4,796 3.7%13. Commercial (a) 142,157 143,827 (1,670) -1.2% 141,300 857 0.6%14. Industrial 39,498 44,328 (4,830) -10.9% 41,461 (1,963) -4.7%15. Street Light 1,726 1,761 (35) -2.0% 1,765 (39) -2.2%16. Total Billed 319,060 319,517 (457) -0.1% 315,409 3,651 1.2%17. Unbilled Change 24,351 45,121 (20,770) 0.0% 20,345 4,006 0.0%18. Total Retail 343,411 364,638 (21,227) -5.8% 335,754 7,657 2.3%19. SPP Sales 73,836 46,024 27,812 60.4% 90,781 (16,945) -18.7%20. Contract Sales 55,266 52,407 2,859 5.5% 61,100 (5,834) -9.5%21. Total Wholesale 129,102 98,431 30,671 31.2% 151,881 (22,779) -15.0%22. Total 472,513 463,069 9,444 2.0% 487,635 (15,122) -3.1%CUSTOMERS23. Residential 123,030 122,795 235 0.2% 121,627 1,403 1.2%24. Commercial (a) 16,919 16,811 108 0.6% 16,674 245 1.5%25. Industrial 176 176 0 0.0% 177 (1) -0.6%26. Street Light 5 5 0 0.0% 5 0 0.0%27. Total Retail 140,130 139,787 343 0.2% 138,483 1,647 1.2%28. Wholesale 7 7 0 0.0% 7 0 0.0%29. Total 140,137 139,794 343 0.2% 138,490 1,647 1.2%

Page 3



REVENUES, ENERGY & CUSTOMERS JULY 2018 YEAR-TO-DATE


ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT %REVENUE 1. Residential $72,324,117 $65,962,821 $6,361,296 9.6% $65,994,358 $6,329,759 9.6% 2. Commercial (a) 64,967,168 64,237,158 730,010 1.1% 63,742,152 1,225,016 1.9% 3. Industrial 17,887,255 18,565,607 (678,352) -3.7% 18,303,777 (416,522) -2.3% 4. Street Light 1,480,536 1,361,759 118,777 8.7% 1,345,537 134,999 10.0% 5. Total Billed 156,659,076 150,127,345 6,531,731 4.4% 149,385,824 7,273,252 4.9% 6. Unbilled Change 6,587,826 8,581,258 (1,993,432) 0.0% 6,162,899 424,927 0.0% 7. Total Retail 163,246,902 158,708,603 4,538,299 2.9% 155,548,723 7,698,179 4.9% 8. SPP Sales 11,806,261 9,562,330 2,243,931 23.5% 16,116,080 (4,309,819) -26.7% 9. Contract Sales 9,208,134 9,131,993 76,141 0.8% 8,460,006 748,128 8.8%10. Total Wholesale 21,014,395 18,694,323 2,320,072 12.4% 24,576,086 (3,561,691) -14.5%11. Total $184,261,297 $177,402,926 $6,858,371 3.9% $180,124,809 $4,136,488 2.3%ENERGY (Megawatt-Hours)12. Residential 788,363 699,512 88,851 12.7% 704,792 83,571 11.9%13. Commercial (a) 870,946 861,540 9,406 1.1% 849,717 21,229 2.5%14. Industrial 258,472 278,290 (19,818) -7.1% 269,278 (10,806) -4.0%15. Street Light 12,143 12,348 (205) -1.7% 12,414 (271) -2.2%16. Total Billed 1,929,924 1,851,690 78,234 4.2% 1,836,201 93,723 5.1%17. Unbilled Change 48,851 64,153 (15,302) 0.0% 38,445 10,406 0.0%18. Total Retail 1,978,775 1,915,843 62,932 3.3% 1,874,646 104,129 5.6%19. SPP Sales 454,859 349,449 105,410 30.2% 580,981 (126,122) -21.7%20. Contract Sales 333,244 308,793 24,451 7.9% 264,367 68,877 26.1%21. Total Wholesale 788,103 658,242 129,861 19.7% 845,348 (57,245) -6.8%22. Total 2,766,878 2,574,085 192,793 7.5% 2,719,994 46,884 1.7%CUSTOMERS AVERAGE23. Residential 122,625 122,384 241 0.2% 121,351 1,274 1.0%24. Commercial (a) 16,883 16,779 104 0.6% 16,647 236 1.4%25. Industrial 176 176 0 0.0% 176 0 0.0%26. Street Light 5 5 0 0.0% 5 0 0.0%27. Total Retail 139,689 139,344 345 0.2% 138,179 1,510 1.1%28. Wholesale 7 7 0 0.0% 7 0 0.0%29. Total 139,696 139,351 345 0.2% 138,186 1,510 1.1%

Page 4



OPERATING EXPENSE STATEMENT JULY 2018 CURRENT MONTH


ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT %

POWER COST 1. SPP Purchased Power $658,697 $1,268,662 ($609,965) -48.1% $507,883 $150,814 29.7% 2. Non-Owned Asset Power 4,757,032 5,530,399 (773,367) -14.0% 6,455,940 (1,698,908) -26.3% 3. Total Purchased Power 5,415,729 6,799,061 (1,383,332) -20.3% 6,963,823 (1,548,094) -22.2% 4. Produced Power 6,409,916 6,589,923 (180,007) -2.7% 6,259,404 150,512 2.4% 5. Total Power Cost 11,825,645 13,388,984 (1,563,339) -11.7% 13,223,227 (1,397,582) -10.6%

OPERATION & MAINTENANCE (O&M) 6. Energy Delivery 2,034,385 2,063,859 (29,474) -1.4% 1,636,137 398,248 24.3% 7. Transmission 660,630 1,349,877 (689,247) -51.1% 1,041,478 (380,848) -36.6% 8. Total O & M Expense 2,695,015 3,413,736 (718,721) -21.1% 2,677,615 17,400 0.6%

ADMINISTRATIVE & GENERAL (A&G) 9. Administration 155,274 215,201 (59,927) -27.8% 207,418 (52,144) -25.1%10. Communication & Corporate Records 218,545 253,971 (35,426) -13.9% 179,947 38,598 21.4%11. Corporate Operations 451,513 461,518 (10,005) -2.2% 394,439 57,074 14.5%12. Customer Services 779,823 1,030,559 (250,736) -24.3% 895,191 (115,368) -12.9%13. Financial Services 323,389 317,518 5,871 1.8% 278,097 45,292 16.3%14. Power Supply 287,117 335,864 (48,747) -14.5% 304,964 (17,847) -5.9%15. Technology Services 1,254,758 1,304,801 (50,043) -3.8% 1,028,220 226,538 22.0%16. Total A & G Expense 3,470,419 3,919,432 (449,013) -11.5% 3,288,276 182,143 5.5%

17. DEPRECIATION 4,281,209 4,271,227 9,982 0.2% 4,261,948 19,261 0.5%

18. TOTAL OPERATING EXPENSE $22,272,288 $24,993,379 ($2,721,091) -10.9% $23,451,066 ($1,178,778) -5.0%

Page 5



OPERATING EXPENSE STATEMENT JULY 2018 YEAR-TO-DATE


ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT %

POWER COST 1. SPP Purchased Power $6,301,497 $6,595,185 ($293,688) -4.5% $1,645,022 $4,656,475 283.1% 2. Non-Owned Asset Power 36,842,768 38,167,898 (1,325,130) -3.5% 44,684,245 (7,841,477) -17.5% 3. Total Purchased Power 43,144,265 44,763,083 (1,618,818) -3.6% 46,329,267 (3,185,002) -6.9% 4. Produced Power 34,802,181 36,073,992 (1,271,811) -3.5% 40,334,346 (5,532,165) -13.7% 5. Total Power Cost 77,946,446 80,837,075 (2,890,629) -3.6% 86,663,613 (8,717,167) -10.1%

OPERATION & MAINTENANCE (O&M) 6. Energy Delivery 12,410,680 13,940,393 (1,529,713) -11.0% 10,157,331 2,253,349 22.2% 7. Transmission 4,252,091 8,429,059 (4,176,968) -49.6% 7,239,167 (2,987,076) -41.3% 8. Total O & M Expense 16,662,771 22,369,452 (5,706,681) -25.5% 17,396,498 (733,727) -4.2%

ADMINISTRATIVE & GENERAL (A&G) 9. Administration 1,398,491 1,456,134 (57,643) -4.0% 1,328,913 69,578 5.2%10. Communication & Corporate Records 1,335,795 1,712,613 (376,818) -22.0% 1,087,704 248,091 22.8%11. Corporate Operations 3,588,852 3,502,913 85,939 2.5% 3,349,427 239,425 7.1%12. Customer Services 5,729,534 7,000,730 (1,271,196) -18.2% 6,484,583 (755,049) -11.6%13. Financial Services 2,142,528 2,362,294 (219,766) -9.3% 2,086,552 55,976 2.7%14. Power Supply 2,224,665 2,373,845 (149,180) -6.3% 2,255,730 (31,065) -1.4%15. Technology Services 8,293,578 9,226,751 (933,173) -10.1% 7,447,313 846,265 11.4%16. Total A & G Expense 24,713,443 27,635,280 (2,921,837) -10.6% 24,040,222 673,221 2.8%

17. DEPRECIATION 29,926,424 29,652,476 273,948 0.9% 29,586,002 340,422 1.2%

18. TOTAL OPERATING EXPENSE $149,249,084 $160,494,283 ($11,245,199) -7.0% $157,686,335 ($8,437,251) -5.4%

Page 6



BALANCE SHEET JULY 2018ASSETS & DEFERRED OUTFLOWS OF RESOURCES LIABILITIES AND NET POSITION

END OF VARIANCE END OF VARIANCEDESCRIPTION MONTH SINCE DESCRIPTION MONTH SINCE

BALANCE JANUARY 1 BALANCE JANUARY 1CURRENT ASSETS: CURRENT LIABILITIES: 1. Revenue Fund (including CDFUO) $111,019,827 $54,040,433 OTHER LIABILITIES 2. Payments in Lieu of Taxes Fund $5,994,998 ($5,778,693) 1. Accounts Payable $16,773,495 ($4,735,256) 3. Rate Stabilization Fund 34,210,722 379,526 2. Accrued Payments in Lieu of Taxes 7,445,705 (5,890,259) 4. Bond Principal & Interest Funds 28,601,051 14,021,930 3. City Dividend for Utility Ownership Payable 3,111,345 622,269 5. Other Restricted/Designated Funds 3,545,579 570,455 4. Commercial Paper Notes 65,500,000 (30,000,000)

6. Restricted/Designated Funds Total 66,357,352 14,971,911 5. Accrued Liabilities 14,180,774 2,267,355 7. Total Current Asset Funds 183,372,177 63,233,651 6. MBPP-BNSF-STB Settlement 0 0 8. Receivables Less Uncollectible Allowance 23,856,173 3,752,502 7. Total Other Liabilities 107,011,319 (37,735,891) 9. Unbilled Revenue 20,674,616 6,587,826 CURRENT LIABILITIES - RESTRICTED ASSETS10. Accrued Interest Receivable 761,235 410,918 8. Current Portion of Long-Term Debt 19,480,000 011. Materials, Supplies & Fuel Inventory 13,245,887 519,066 9. Accrued Interest 10,687,606 2,460,535 12. Plant Operation Assets 15,716,938 (1,285,213) 10. Other Current Liabilities 1,491,732 93,630 13. Other Current Assets 2,587,310 168,007 11. Total Current Liabilities - Restricted Assets 31,659,338 2,554,165 14. Total Current Assets 260,214,336 73,386,757 12. Total Current Liabilities 138,670,657 (35,181,726)

NONCURRENT ASSETS: NONCURRENT LIABILITIES:15. Bond Reserve Funds 19,859,920 3,126,974 13. 2003 Bonds 1,150,000 016. Self Funded Benefits Reserve Fund (IBNP) 537,080 4,644 14. 2012-A Bonds 217,020,000 017. Segregated Funds 650,489 0 15. 2013 Bonds 75,525,000 018. Restricted Fund Total 21,047,489 3,131,618 16. 2015-A Bonds 167,800,000 0 19. Unamortized Debt Expense 2,634,864 376,524 17. 2016 Bonds 99,575,000 0 20. Other Noncurrent Assets 2,778,384 318,672 18. 2018 Bonds 121,205,000 121,205,000

21. Total Noncurrent Assets 26,460,737 3,826,814 19. Total Revenue Bonds 682,275,000 121,205,000 20. Less Current Maturities 19,480,000 0

CAPITAL ASSETS: 21. Less Unamortized Discounts/Premiums (70,156,221) (16,261,398) 22. Utility Plant in Service 1,548,857,032 27,090,277 22. Revolving Credit Agreement 0 (30,000,000) 23. Accumulated Depreciation & Amortization (760,889,588) (26,344,194) 23. Net Long Term Debt 732,951,221 107,466,39824. Construction Work in Progress 130,879,999 15,775,719 24. Liabilities Payable from Segregated Funds 646,137 0 25. Total Capital Assets 918,847,443 16,521,802 25. Other Noncurrent Liabilities 532,436 0

26. Total Liabilities 872,800,451 72,284,672DEFERRED OUTFLOWS OF RESOURCES:26. Deferred Loss on Refunded Debt 14,203,827 (1,250,794) NET POSITION:

27. Net Investment in Capital Assets 131,192,364 (92,352,990)28. Restricted for Debt Service 21,072,753 14,688,36929. Restricted for Employee Health Insurance Claims 400,411 (534,640)30. Unrestricted 194,260,364 98,399,168 31. Total Net Position 346,925,892 20,199,907

27. TOTAL ASSETS & DEFERRED OUTFLOWS OF RESOURCES $1,219,726,343 $92,484,579 32. TOTAL LIABILITIES & NET POSITION $1,219,726,343 $92,484,579


STATEMENT OF CASH FLOWS JULY 2018

CURRENT MONTH YEAR-TO-DATECASH FLOW FROM OPERATING ACTIVITIES: 1. Received from Sales to Customers and Users $33,925,284 $191,382,186 2. Paid to Suppliers for Goods & Services (20,599,412) (111,680,645) 3. Paid to Employees for Services (2,753,381) (19,271,423) 4. Cash Flow from Operating Activities (a) 10,572,491 60,430,118

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: 5. Payments in Lieu of Taxes (77,577) (12,807,676) 6. City Dividend for Utility Ownership Payments 0 (3,733,616) 7. Other 0 1 8. Cash Flow from (used for) Non-capital Financing Activities (77,577) (16,541,291)

CASH FLOWS FROM INVESTING ACTIVITIES: 9. Net (Purchases) Sales of Investments (2,898,604) (66,815,543)10. Interest Income 190,757 1,111,633 11. Cash Flow from (used for) Investing Activities (2,707,847) (65,703,910)

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES:12. Acquisition and Construction of Capital Assets (7,842,608) (45,128,563)13. Salvage on Retirement of Plant 6,874 316,43014. Cost of Removal of Property Retired (71,425) (1,394,120)15. Debt Issuance Cost Paid 0 (538,146)16. Debt Premiums Collected 0 19,612,55217. Net Capital Contributions 86,352 499,18918. Net Proceeds form Issuance of Long-Term Debt 0 121,205,00019. Principal Payments on Long-Term Debt (30,000,000) (60,000,000)20. Interest Payments on Long-Term Debt (242,861) (13,321,757)21. Cash Flow from (used for) Capital Financing Activities (38,063,668) 21,250,585

22. Net Increase (Decrease) in Cash and Cash Equivalents (30,276,601) (564,498)23. Cash and Cash Equivalent Beginning of Period 53,154,290 23,442,187 24. Cash and Cash Equivalent End of Period (b) $22,877,689 $22,877,689

STATEMENT OF CASH FLOW FOOTNOTES(a) Reconciliation of operating income to cash flows from operating activities 1. Net Operating Revenue $13,893,488 $43,276,157 2. Noncash items included in operating income 4,373,363 30,561,901 3. Changes in Assets & Liabilities Increase/(Decrease) (7,694,360) (13,407,940) 4. Net cash flows from operating activities $10,572,491 $60,430,118

(b) Cash and cash equivalents are defined as cash and investments with original maturities of three months or less.

Page 8


DEBT SERVICE COVERAGE JULY 2018

DESCRIPTION ACTUAL BUDGET ACTUAL ACTUAL BUDGET ACTUALTHIS YEAR THIS YEAR LAST YEAR THIS YEAR THIS YEAR LAST YEAR

1. Total Operating Revenues $36,165,776 $38,932,392 $36,514,466 $192,525,241 $185,640,726 $188,543,426

2. Total Operating Expenses 22,272,288 24,993,379 23,451,066 149,249,084 160,494,283 157,686,335 3. Less Depreciation (4,281,209) (4,271,227) (4,261,948) (29,926,424) (29,652,476) (29,586,002) 4. Operating Expense Net of Depreciation 17,991,079 20,722,152 19,189,118 119,322,660 130,841,807 128,100,333

5. Net Operating Revenue for Debt Service 18,174,697 18,210,240 17,325,348 73,202,581 54,798,919 60,443,093 6. Interest Income (a) 295,922 210,778 116,884 1,219,850 1,390,515 700,192 7. Other Income 0 0 0 0 0 0 8. Rate Stabilization Fund 0 0 0 0 0 0

9. AVAILABLE FOR DEBT SERVICE 18,470,619 18,421,018 17,442,232 74,422,431 56,189,434 61,143,285

10. DEBT SERVICE (b) 4,133,317 3,987,031 3,514,177 26,045,571 26,193,487 24,599,239

11. DEBT SERVICE COVERAGE 4.47 4.62 4.96 2.86 2.15 2.49

(a) Excludes interest from Rate Stabilization Fund.(b) Includes Bond Principal & Interest only. Page 9


-------- CURRENT MONTH ---------- ---------- YEAR-TO-DATE ----------

INVESTMENT REPORT JULY 2018

PURCHASE MATURITY CPN/DCNT (a) CASH PARFUND / INVESTMENT DATE DATE RATE YIELD EQUIVALENTS SECURITIES VALUE

CASH - REVENUE FUND / WORKING FUND $882,264 $882,264SHORT TERM FEDERAL INVESTMENT TRUST (STFIT) 9,024,428 9,024,428

REVENUE FUND Federated Treasury Obligations Fund * 1.540% 141,798 141,798 Natixis, New York Branch Commercial Paper 03/26/2018 08/20/2018 2.300% 2.322% 3,962,433 4,000,000 Anglesea Funding LLC Commercial Paper 03/29/2018 08/20/2018 2.380% 2.403% 4,952,400 5,000,000 Bank of China (Hong Kong) Ltd. Commercial Paper 04/20/2018 09/21/2018 2.600% 2.629% 5,305,329 5,365,000 Banco de Credito Comercial Paper 06/28/2018 10/22/2018 2.500% 2.520% 7,439,583 7,500,000 Torchmark Corporation Commercial Paper 06/28/2018 11/20/2018 2.530% 2.556% 7,423,573 7,500,000 Hannover Funding Co. LLC Commercial Paper 06/28/2018 12/12/2018 2.750% 2.786% 7,404,323 7,500,000 Korea Development Bank Commercial Paper 06/28/2018 01/04/2019 2.430% 2.462% 7,403,813 7,500,000 Shinhan Bank NY Branch Commercial Paper 06/28/2018 02/22/2019 2.650% 2.697% 7,368,052 7,500,000 Banco Santander SA/NY Commercial Paper 07/26/2018 04/01/2019 2.600% 2.648% 7,482,967 7,620,000 ING (U.S.) Funding LLC Commercial Paper 07/10/2018 04/05/2019 2.530% 2.579% 4,988,869 5,085,000 U.S. Treasury Note 06/28/2018 03/15/2019 1.000% 2.220% 7,435,425 7,500,000 U.S. Treasury Note 06/28/2018 04/30/2019 1.250% 2.301% 7,434,750 7,500,000 U.S. Treasury Note 06/28/2018 05/15/2019 3.125% 2.311% 7,552,800 7,500,000 Federal Home Loan Banks Bond 06/29/2018 06/21/2019 1.125% 2.350% 7,411,692 7,500,000 U.S. Treasury Note 06/28/2018 07/15/2019 0.750% 2.345% 7,376,979 7,500,000 Discount \ (Premium) 28,348

Total Revenue Fund 141,798 100,971,336 102,211,798

PILOT FUND Federated Treasury Obligations Fund * 1.540% 22,643 22,643 MUFG Bank, Ltd., NY Branch Commercial Paper 04/20/2018 01/14/2019 2.400% 2.444% 864,219 880,000 J.P. Morgan Securities Commercial Paper 05/18/2018 02/11/2019 2.450% 2.496% 962,059 980,000 J.P. Morgan Securities Commercial Paper 06/20/2018 03/15/2019 2.530% 2.579% 946,825 965,000 Natixis, New York Branch Commercial Paper 07/20/2018 04/05/2019 2.480% 2.525% 1,119,660 1,140,000

Federal Home Loan Banks Bond 03/22/2018 04/08/2019 1.150% 2.120% 990,029 1,000,000

U.S. Treasury Note 02/20/2018 04/30/2019 1.625% 2.105% 1,083,869 1,090,000

Discount \ (Premium) 5,694

Total PILOT Fund $22,643 $5,972,355 $6,077,643(a) Cash and cash equivalents are defined as cash & investments with original maturities of three months or less.* Interest rate as of end of month. Page 10a




BOND RESERVE FUNDS Federated Treasury Obligations Fund * 1.540% $172,921 $172,921 Federal Home Loan Banks Bond 09/01/2016 08/28/2018 1.000% 1.000% 490,000 490,000 Federal Home Loan Banks Bond 09/01/2016 08/28/2018 1.000% 1.000% 2,340,000 2,340,000 Federal National Mortgage Association Bond 05/28/2015 02/01/2019 0.000% 1.650% 1,416,805 1,505,000 Federal Home Loan Mortgage Corporation Bond 06/28/2018 08/15/2019 1.375% 2.400% 2,916,449 2,950,000 Federal National Mortgage Association Bond 09/01/2016 08/28/2019 1.150% 1.150% 355,000 355,000 Federal National Mortgage Association Bond 09/01/2016 08/28/2020 1.400% 1.400% 1,400,000 1,400,000 Federal National Mortgage Association Bond 09/01/2016 08/28/2020 1.400% 1.400% 2,340,000 2,340,000 Federal Home Loan Banks Bond 03/14/2018 08/28/2020 2.400% 2.400% 3,750,000 3,750,000 Federal National Mortgage Association Bond 06/28/2018 06/28/2021 2.800% 2.800% 4,600,000 4,600,000 Discount \ (Premium) 78,745

Total Bond Reserve Funds 172,921 19,686,999 19,902,921

BOND PRINCIPAL & INTEREST FUNDS Federated Treasury Obligations Fund * 1.540% 4,150,284 4,150,284 Alpine Securitization LLC Commercial Paper 01/31/2018 08/03/2018 1.930% 1.949% 1,608,970 1,625,000 Ebury Finance LLC Commercial Paper 04/30/2018 08/07/2018 2.320% 2.335% 1,629,537 1,640,000 Federal Home Loan Banks Bond 11/30/2017 08/08/2018 0.950% 1.541% 1,623,415 1,630,000 Qualcomm Inc. Commercial Paper 06/29/2018 08/28/2018 2.280% 2.289% 1,623,806 1,630,000 Qualcomm Inc. Commercial Paper 06/29/2018 08/28/2018 2.280% 2.289% 2,077,077 2,085,000 MUFG Bank, Ltd., NY Branch Commercial Paper 07/26/2018 08/28/2018 2.050% 2.054% 1,641,909 1,645,000 Bedford Row Funding Corp Commercial Paper 03/29/2018 08/29/2018 2.360% 2.384% 2,034,388 2,055,000 Bedford Row Funding Corp Commercial Paper 03/29/2018 08/29/2018 2.360% 2.384% 1,633,451 1,650,000 U.S. Treasury Note 09/29/2017 08/31/2018 0.750% 1.310% 1,611,729 1,620,000 U.S. Treasury Note 10/31/2017 08/31/2018 0.750% 1.400% 1,621,263 1,630,000 MUFG Bank, Ltd., NY Branch Commercial Paper 04/30/2018 08/31/2018 2.300% 2.318% 2,023,969 2,040,000 First Abu Dhabi Bank Commercial Paper 05/31/2018 08/31/2018 2.280% 2.293% 1,625,473 1,635,000 First Abu Dhabi Bank Commercial Paper 05/31/2018 08/31/2018 2.280% 2.293% 2,023,142 2,035,000 Bayerische Landesbank, NY Branch 07/19/2018 08/31/2018 2.070% 2.075% 1,650,908 1,655,000 Discount \ (Premium) 21,729

Total Bond Principal & Interest Funds 11,143,984 17,457,066 28,725,284

RATE STABILIZATION FUND Federated Treasury Obligations Fund * 1.540% 115,032 115,032 Federal National Mortgage Association Bond 02/10/2017 12/14/2018 1.125% 1.140% 6,323,252 6,325,000 Federal Farm Credit Banks Bond 06/29/2017 06/12/2019 1.375% 1.391% 5,048,485 5,050,000

Federal National Mortgage Association Bond 12/11/2017 11/26/2019 1.750% 1.820% 1,729,662 1,732,000

Federal Home Loan Mortgage Corporation Bond 01/30/2018 11/27/2019 0.500% 2.150% 8,091,809 8,150,000

Federal Farm Credit Banks Bond 12/20/2017 12/12/2019 100.500% 1.916% 5,135,888 5,140,000 Federal Farm Credit Banks Bond 01/12/2018 01/10/2020 100.500% 1.970% 2,549,006 2,550,000 Federal Farm Credit Banks Bond 06/29/2018 06/11/2020 200.500% 2.580% 5,197,014 5,200,000 Discount \ (Premium) 20,576

Total Rate Stabilization Fund $115,032 $34,095,692 $34,262,032(a) Cash and cash equivalents are defined as cash & investments with original maturities of three months or less.* Interest rate as of end of month. Page 10b




SELF-FUNDED HEALTH & DENTAL CLAIMS FUND Federated Treasury Obligations Fund * 1.540% $917,593 $917,593 Credit Suisse NY Commercial Paper 03/05/2018 09/28/2018 2.240% 2.269% 987,120 1,000,000 Discount \ (Premium)

Total Self-Funded Health & Dental Claims Fund 917,593 987,120 1,917,593

SELF-FUNDED HEALTH & DENTAL RESERVE FUND (INCURRED BUT NOT PRESENTED) Federated Treasury Obligations Fund * 1.540% 8,019 8,019 Federal Farm Credit Banks Bond 01/12/2018 12/14/2018 1.300% 1.781% 527,679 530,000 Discount \ (Premium) 1,382

Total Self-Funded Health & Dental Reserve Fund 8,019 529,061 538,019

SEGREGATED ACCOUNT Federated Treasury Obligations Fund * 1.540% 278,526 278,526 General Electric Company Commercial Paper 04/23/2018 09/17/2018 2.280% 2.301% 371,509 375,000 Federal National Mortgage Association Bond 12/29/2017 12/14/2018 1.125% 1.780% 198,760 200,000 U.S. Treasury Bill 06/29/2018 06/20/2019 2.231% 2.300% 1,271,321 1,300,000 Discount \ (Premium) 758

Total Segregated Account 278,526 1,842,348 2,153,526

Cost of Issuance Account Federated Treasury Obligations Fund * 1.540% 170,481 170,481 Discount \ (Premium)

Total Cost of Issuance Account 170,481 0 170,481

TOTAL $22,877,689 $181,541,977 $205,865,989(a) Cash and cash equivalents are defined as cash & investments with original maturities of three months or less.

* Interest rate as of end of month. Page 10c


LES.com

Power Supply Division2018 July Monthly Report

Jason FortikAugust 17, 2018

LES.com

July 2018Monthly Actual vs. Budget

2

$8.46

-$0.33

-$6.27

$5.32

-$1.43

$6.41

$4.76

$10.48

-$0.25

-$4.46

$4.59

-$1.53

$6.59

$5.53

-$8 -$6 -$4 -$2 $0 $2 $4 $6 $8 $10 $12

Net

SPP Other***

SPP IM Market Revenue

SPP IM Load Purchases

Contract Sales**

Owned Asset Power

Non-Owned Asset Power*

Millions ($)

Budget Actual

Revenues Expenses*Non-Owned Asset Power does not include SPP IM Purchased**Contract Sales does not include SPP IM Revenue***SPP Other includes Over-Collected Losses and ARR’s/TCR

LES.com

July 2018

Daily Temperature Range

3

Monthly Low 57°F

Monthly High 97°F

0

20

40

60

80

100

120

Sun

Mon Tu

eW

ed Thu Fri

Sat

Sun

Mon Tu

eW

ed Thu Fri

Sat

Sun

Mon Tu

eW

ed Thu Fri

Sat

Sun

Mon Tu

eW

ed Thu Fri

Sat

Sun

Mon Tu

e

Degr

ees

in F

ahre

nhei

t

Daily Range Normal Low Normal High

LES.com

July 2018

Loads

4

0

100

200

300

400

500

600

700

800

900M

W

Actual = 755 MWForecasted = 767 MW

LES.com

July 2018Customer Energy Consumption

5

364.5 355.6

0

50

100

150

200

250

300

350

400

2018 Budget 2018 Actual

GW

H

LES.com

July 2018

Unit Equivalent Availability

6

0% 20% 40% 60% 80% 100%

J St.

LFGTE

TBGS 4

TBGS 3

TBGS 2

TBGS 1

Rok 3

Rok 2

Rok 1

LRS 1

GGS 2

GGS 1

WS 4

WS 3U

nit

Available Limited Scheduled Outage Forced Outage

LES.com

July 2018Resource Energy

7

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000M

Wh

LRS_1 GGS_1 GGS_2 WS 3 WS 4 WAPA FirmTB_1 TB_2 TB_3 TB_4 ROK1 ROK2ROK3 J_St. WAPA Peaking Wind PSA Wind PPA LFGTE

LES.com

July 2018Peak Load Day – July 12, 2018

8

0

100

200

300

400

500

600

700

800

900

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

MW

HourGGS_1 GGS_2 LRS WSEC 3 WSEC 4TB_1 TB_2 TB_3 TB_4 LFGTEROK 1 ROK 2 ROK 3 J_St. Wind PSAWind PPA WAPA Firm WAPA Peaking Peak Day Load

Actual = 755 MW

LES.com

July 2018

9

Coal 63%

Oil & Gas13%

Renewable24%

Energy Utilized by SPP IM -(Fuel Type)

Coal 42%

Oil & Gas43%

Renewable15%

Energy Offered to SPP IM -Approximate (Fuel Type)

Note: Total percentage may not add up to 100% due to rounding

LES.com

July 2018

Energy Utilized by SPP IM

10

WAPA (27 GWh)7%

Gentleman Station (81 GWh)20%

Laramie Station (103 GWh)26%

Walter Scott (70 GWh)17%

Terry Bundy (41 GWh)10%

Rokeby (12 GWh)3%

Wind PSA's (6 GWh)2%

Landfill Gas (3 GWh)1%

Wind PPA's (58 GWh)14%

Note: Total percentage may not add up to 100% due to rounding

minutes of lincoln electric system … · michael reed, kelley porter, giao nguyen, emily koenig,...

Documents