Fiscal Year 2024-2025
Draft Budget
Executive Committee
May 1, 2024
Background & Discussion
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How Ava Works—Energy Delivery
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How Ava Works—Revenues & Rates
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0 0.02
0.04 0.06
0.08 0.1
0.12 0.14
0.16 2019 2020 2021 2022 2023 2024 2025
$/kWh
Fiscal Year
Customer Rate Revenue Profile
Ava Average Rates PCIA Fees Cost of Service Margin
How Ava Works—Billing Cycle
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How Ava Works—Revenues & Rates
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50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
2022 2023 2024 2025
BC%
Retail MWh
Bright Choice as Percent of Retail Load by Year
BC-Res BC-C&I R100-Res R100-C&I BC%
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Executive Budget Summary
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Summary Draft Budget Fiscal Year 2024-2025
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FY 2025 FY 2024 FY FY FY 2024
BUDGET BUDGET Delta %D ACTUALS
OPERATING ACTIVITY
REVENUE & OTHER SOURCES
Electricity Sales 979,017,000 957,028,000 21,989,000 2.2% 927,102,000 Uncollectables (9,790,000) (12,095,000) 2,305,000 -23.5% (11,675,000) Other Operating Revenue (6,487,000) (6,642,000) 155,000 -2.4% 8,446,000 TOTAL OPERATING REVENUE 962,740,000 938,291,000 24,449,000 2.5% 923,873,000
EXPENSES & OTHER USES
Cost of Energy 753,523,000 682,367,000 71,156,000 9.4% 658,262,000 Cost of Energy Services 11,608,000 11,219,000 389,000 3.4% 11,213,000 Total Energy Operating Expenses 765,131,000 693,586,000 71,545,000 9.4% 669,475,000 Total Overhead Operating Expenses 45,015,000 39,299,000 5,716,000 12.7% 29,727,000 TOTAL OPERATING EXPENSES 810,146,000 732,885,000 77,261,000 9.5% 699,202,000 NET OPERATING POSITION 152,594,000 205,406,000 (52,812,000) -34.6% 224,671,000
NON-OPERATING ACTIVITY
TOTAL NON-OPERATING REVENUE 11,449,000 1,728,000 9,721,000 84.9% 8,488,000 TOTAL NON-OPERATING EXPENSES 25,196,000 27,650,000 (2,454,000) -9.7% 26,450,000 NET NON-OPERATING POSITION (13,747,000) (25,922,000) 12,175,000 -88.6% (17,962,000) TOTAL REVENUES 974,189,000 940,019,000 34,170,000 3.5% 932,361,000 TOTAL EXPENSES 835,342,000 760,535,000 74,807,000 9.0% 725,652,000 TOTAL NET REVENUES 138,847,000 179,484,000 (40,637,000) -29.3% 206,709,000 Draft Budget Base Case Assumptions
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Carbon Free Procurement Schedule
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Year Path Target Increase Updated Target Increase Updated Target Increase Updated Target 2022 63% 5% 68% -- -- -- --
2023 66% 5% 71% 5% 76% -- --
2024 71% 0% 71% 10% 81% 0% 81%
2025 76% 0% 76% 0% 76% 5% 81%
2026 81% 0% 81% 0% 81% 0% 81%
2022 2023 2024
Reserve Amounts & Proposed Surplus Allocations
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Contribution Year Contribution Withdraws Balance OpEx to Cover PctOps 2018-2019 40,513,687 - 40,513,687 410,686,000 9.9%
2019-2020 49,704,640 - 90,218,327 383,045,000 23.6%
2020-2021 - - 90,218,327 471,897,000 19.1%
2021-2022 65,655,073 - 155,873,400 562,667,000 27.7%
2022-2023 75,000,000 - 230,873,400 732,885,000 31.5%
2023-2024 100,000,000 - 330,873,400 810,146,000 40.8%
2024-2025* 100,000,000 - 430,873,400 1,003,221,000 42.9% *Proposed contribution with projected operating expenses to cover as of 4/25/2024
WATERFALL DISTRIBUTION
Net Revenues 138,847,000
Working Capital 0
Reserve Contribution 100,000,000
Available for Allocation 38,847,000
On-Bill Credit 50% 19,423,500
Solar/Storage NBT Incentives 50% 19,423,500
Draft Budget: Operating Revenues
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FY 2025 FY 2024 FY FY FY 2024
BUDGET BUDGET Delta %D ACTUALS
OPERATING ACTIVITY
REVENUE & OTHER SOURCES
Electricity Sales 979,017,000 957,028,000 21,989,000 2.2% 927,102,000 Uncollectables (9,790,000) (12,095,000) 2,305,000 -23.5% (11,675,000) Other Operating Revenue (6,487,000) (6,642,000) 155,000 -2.4% 8,446,000 TOTAL OPERATING REVENUE 962,740,000 938,291,000 24,449,000 2.5% 923,873,000 Draft Budget: Overview of Operating Expenses
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FY 2025
BUDGET % Cost
EXPENSES & OTHER USES
Cost of Energy 753,523,000 90.2%
Cost of Energy Services 11,608,000 1.4%
Total Energy Operating Expenses 765,131,000 91.6%
Overhead Operating Expenses
Personnel 26,592,000 3.2%
Marketing & Communications 6,168,000 0.7%
Legal, Policy, & Regulatory Affairs 4,104,000 0.5%
Other Professional Services 2,088,000 0.2%
General & Administrative 5,664,000 0.7%
Depreciation 399,000 0.0%
Total Overhead Operating Expenses 45,015,000 5.4%
TOTAL OPERATING EXPENSES 810,146,000
NON-OPERATING EXPENSES
Borrowing Interest 2,796,000 0.3%
Local Development Funding 22,400,000 2.7%
TOTAL NON-OPERATING EXPENSES 25,196,000 3.0%
TOTAL EXPENSES 835,342,000
Draft Budget: Energy Expenses
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FY 2025 FY 2024 FY 2024
BUDGET BUDGET ACTUALS
EXPENSES & OTHER USES
Cost of Energy 753,523,000 682,367,000 658,262,000
Cost of Energy Services 11,608,000 11,219,000 11,213,000 Total Energy Operating Expenses 765,131,000 693,586,000 669,475,000 PPAs Hedges Open Capacity RECs Carbon Free
FY 2025 Budget to FY 2024 Actuals by Cost Element
FY 2025 FY 2024
Draft Budget: Overhead Expenses
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FY 2025 FY 2024 FY 2024
BUDGET BUDGET ACTUALS
EXPENSES & OTHER USES
Overhead Operating Expenses
Personnel 26,592,000 21,911,000 18,015,000
Marketing & Communications 6,168,000 5,303,000 3,046,000 Legal, Policy, & Regulatory Affairs 4,104,000 3,509,000 2,175,000 Other Professional Services 2,088,000 2,505,000 1,790,000 General & Administrative 5,664,000 5,711,000 4,488,000
Depreciation 399,000 360,000 213,000
Total Overhead Operating Expenses 45,015,000 39,299,000 29,727,000 Draft Budget: Personnel
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• FTE Count: 4 Local Development, 4 Power Resources, 2 Legal/Policy, 2 Marketing, 2 Finance, 1 HR •
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FY 2025 FY 2024 FY 2023
DRAFT BUDGET BUDGET BUDGET
PERSONNEL
Salaries & Wages 19,765,000 16,587,000 11,598,000
Retirement 2,450,000 2,058,000 1,544,000
Health Care/Benefits 3,955,000 2,913,000 2,292,000
Payroll Expenses 416,000 353,000 277,000
Total 26,586,000 21,911,000 15,711,000
Draft Budget: Non-Operating Activity
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FY 2025 FY 2024 FY 2024
BUDGET BUDGET ACTUALS
NON-OPERATING ACTIVITY
NON-OPERATING REVENUE
Interest Income 11,400,000 1,680,000 7,762,000
Grants 0 0 677,000
Other Non-Operating Revenue 49,000 48,000 49,000
TOTAL NON-OPERATING REVENUE 11,449,000 1,728,000 8,488,000
NON-OPERATING EXPENSES
Borrowing Interest 2,796,000 1,650,000 950,000
Local Development Funding 22,400,000 25,500,000 25,500,000 TOTAL NON-OPERATING EXPENSES 25,196,000 27,650,000 26,450,000 NET NON-OPERATING POSITION (13,747,000) (25,922,000) (17,962,000) Draft Budget: Local Development
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FY 2025 FY 2024
DRAFT BUDGET BUDGET
LOCAL DEVELOPMENT
Critical Municipal Facilities 7,000,000 -
Health-e-Communities 5,000,000 5,000,000
DCFC Network 3,000,000 3,600,000
Ava e-Bike 2,000,000 2,000,000
Building Electrification 2,000,000 3,500,000
Community Grants 1,200,000 1,400,000
Vehicle Electrification 1,000,000 6,000,000
Legal Expense 500,000 -
Solar + Storage 500,000 2,000,000
Subscription 200,000 -
Demand Response - 2,000,000
Total 22,400,000 25,500,000
Potential to S+S* 19,423,000 22,683,000
Estimated with Surplus 41,823,000 48,183,000
*Estimated amounts from surplus net revenues waterfall allocations Thank you!