Fiscal Year 2024-2025
Draft Budget
Executive Committee
June 5, 2024
Background & Discussion
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Executive Budget Summary
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Historical Rates & Energy Costs
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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
Summary of Budget Changes
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0 0.02
0.04 0.06
0.08 0.1
0.12 0.14
0.16 0.18
Ava 5% 2024 Ava 7% 2024 Ava 7% 2025 May Ava 5% 2025 June Average Bright Choice Rates: Ava and PG&E for
Calendar Years 2024 and 2025
Average Rates PCIA PG&E Rates
CARE/FERA
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0.00 100.00
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5% May 5% June 5% May 5% June
CARE CARE FERA FERA
Average CARE/FERA FY 2024-2025 Generation Cost Comparison Ava Cost PG&E Cost
Recommended Budget Base Case Assumptions
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Budget Comparison Fiscal Year 2024-2025
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June Updated May Draft FY 2024
BUDGET BUDGET BUDGET
OPERATING ACTIVITY
REVENUE & OTHER SOURCES
Electricity Sales 881,671,000 979,017,000 957,028,000
Uncollectables (8,817,000) (9,790,000) (12,095,000)
Other Operating Revenue 0 (6,487,000) (6,642,000)
TOTAL OPERATING REVENUE 872,854,000 962,740,000 938,291,000
EXPENSES & OTHER USES
Cost of Energy 760,248,000 753,523,000 682,367,000
Cost of Energy Services 11,608,000 11,608,000 11,219,000 Total Energy Operating Expenses 771,856,000 765,131,000 693,586,000 Total Overhead Operating Expenses 45,267,000 45,267,000 39,299,000 TOTAL OPERATING EXPENSES 817,123,000 810,398,000 732,885,000
NON-OPERATING ACTIVITY
TOTAL NON-OPERATING REVENUE 11,799,000 11,799,000 1,728,000 TOTAL NON-OPERATING EXPENSES 25,296,000 25,296,000 27,650,000 NET NON-OPERATING POSITION (13,497,000) (13,497,000) (25,922,000) TOTAL REVENUES 884,653,000 974,539,000 940,019,000
TOTAL EXPENSES 842,419,000 835,694,000 760,535,000
TOTAL NET REVENUES 42,234,000 138,845,000 179,484,000
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 - 330,873,400 810,350,000 40.8%
2024-2025* 42,234,000 - 373,107,400 1,045,192,000 35.7% *Proposed contribution with projected operating expenses to cover as of 5/28/2024 Draft Budget: Operating Revenues
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June Updated May Draft FY 2024
BUDGET BUDGET BUDGET
OPERATING ACTIVITY
REVENUE & OTHER SOURCES
Electricity Sales 881,671,000 979,017,000 957,028,000
Uncollectables (8,817,000) (9,790,000) (12,095,000)
Other Operating Revenue 0 (6,487,000) (6,642,000)
TOTAL OPERATING REVENUE 872,854,000 962,740,000 938,291,000 Draft Budget: Overview of Operating Expenses
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June Updated
BUDGET % Cost
EXPENSES & OTHER USES
Cost of Energy 760,248,000 90.2%
Cost of Energy Services 11,608,000 1.4%
Total Energy Operating Expenses 771,856,000 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 2,136,000 0.3%
General & Administrative 5,868,000 0.7%
Depreciation 399,000 0.0%
Total Overhead Operating Expenses 45,267,000 5.4%
TOTAL OPERATING EXPENSES 817,123,000
NON-OPERATING EXPENSES
Borrowing Interest 2,796,000 0.3%
Local Development Funding 22,400,000 2.7%
Total Capital Expenditures 100,000 0.0%
TOTAL NON-OPERATING EXPENSES 25,296,000 3.0%
TOTAL EXPENSES 842,419,000
Draft Budget: Energy Expenses
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PPAs Hedges Open Capacity RECs Carbon Free
FY 2025 Budget to FY 2024 Actuals by Cost Element
FY 2025 FY 2024
June Updated May Draft FY 2024
BUDGET BUDGET BUDGET
EXPENSES & OTHER USES
Cost of Energy 760,248,000 753,523,000 682,367,000
Cost of Energy Services 11,608,000 11,608,000 11,219,000 Total Energy Operating Expenses 771,856,000 765,131,000 693,586,000 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
Draft Budget: Overhead Expenses
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June Updated FY 2024
BUDGET BUDGET
EXPENSES & OTHER USES
Overhead Operating Expenses
Personnel 26,592,000 21,911,000
Marketing & Communications 6,168,000 5,303,000
Legal, Policy, & Regulatory Affairs 4,104,000 3,509,000 Other Professional Services 2,136,000 2,505,000
General & Administrative 5,868,000 5,711,000
Depreciation 399,000 360,000
Total Overhead Operating Expenses 45,267,000 39,299,000 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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June Updated FY 2024
BUDGET BUDGET
PERSONNEL
Salaries & Wages 19,765,000 16,587,000
Retirement 2,450,000 2,058,000
Health Care/Benefits 3,961,000 2,913,000
Payroll Expenses 416,000 353,000
Total 26,592,000 21,911,000
Draft Budget: New Personnel Assignments
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Title Functional Area
1 Controller Finance
2 Structured Finance Manager Finance
3 HR Operations Manager Human Resources
4 Contracts Manager Local Development
5 DCFC Product Manager Local Development
6 Project Manager Local Development
7 Strategic Accounts and Product Designer Local Development 8 Marketing Associate Marketing
9 Outreach Coordinator Marketing
10 Contract Manager Power Resources
11 Contracts Analyst Power Resources
12 RA Portfolio Analyst Power Resources
13 Settlements Analyst Power Resources
14 Assistant Board Clerk Public Policy & Legal
15 Regulatory Analyst Public Policy & Legal
Draft Budget: Non-Operating Activity
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June Updated FY 2024
BUDGET BUDGET
NON-OPERATING ACTIVITY
NON-OPERATING REVENUE
Interest Income 11,400,000 1,680,000
Grants 350,000 0
Other Non-Operating Revenue 49,000 48,000
TOTAL NON-OPERATING REVENUE 11,799,000 1,728,000
NON-OPERATING EXPENSES
Borrowing Interest 2,796,000 1,650,000
Local Development Funding 22,400,000 25,500,000
Total Capital Expenditures 100,000 500,000
TOTAL NON-OPERATING EXPENSES 25,296,000 27,650,000
NET NON-OPERATING POSITION (13,497,000) (25,922,000)
Draft Budget: Local Development
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June Updated FY 2024
BUDGET BUDGET
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* - 22,683,000
Estimated with Surplus 22,400,000 48,183,000
*Estimated amounts from surplus net revenues waterfall allocations Appendix
How Ava Works—Energy Delivery
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How Ava Works—Billing Cycle
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How Ava Works—Product Rates
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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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Thank you!