FY 2024
-25 Budget to Actuals
2 Overall, actual Revenues out-performed expectations while Operating Expenditures were in line with budgeted estimates. • Accounting for deferred revenues, actualized revenues were 12.6% higher than budget—approximately $89.7MM
• Ava recognized about $22.3MM from previously deferred revenues for customer on-bill credits in January of 2025
• Uncollectables were higher than expected due to true up in accounts receivables across multiple periods
• Overall energy costs were in line with the Budget • Total Operating Expenditures were slightly lower than Budget by -0.6%
• Overhead items were materially under Budget by -27.6% on average • Other Sources outperformed due to higher than expected investment income as interest rates stayed higher for longer, and the collection of performance and delay of resource damages from contractual agreements
• Approximately $112MM of net revenues were deferred to the RSF and on-bill credits
REVENUES Budget Actuals
Electricity Sales 881,671,000 903,222,917 2.4%
Revenue Recognized from Previous Deferrals* - 22,319,294 Uncollectable (8,817,000) (12,850,000) 45.7%
Total Revenue and Other Sources 872,854,000 912,692,211 4.6%
EXPENDITURES & OTHER USES
OPERATING EXPENDITURES
Cost of Energy 760,248,000 767,656,144 1.0%
Data Management/Customer Service 8,057,000 8,480,433 5.3% PG&E Service Fees 2,820,000 2,815,289 -0.2%
CAISO Scheduling Coordinator 731,000 723,146 -1.1%
Personnel 26,592,000 20,387,169 -23.3%
Marketing & Communications 6,168,000 3,711,163 -39.8%
Legal, Policy, & Regulatory Affairs 4,104,000 1,689,641 -58.8% Other Professional Services 2,136,000 1,742,950 -18.4%
General & Administrative 5,868,000 4,972,203 -15.3%
Total Current Expenditures 816,724,000 812,178,138 -0.6%
OTHER SOURCES & USES
Investment Income 11,400,000 24,813,379 117.7%
Other Income 399,000 523,852 31.3%
Liquidated Damages - 10,825,198 100.0%
Interest & Financing Costs (2,796,000) (1,282,356) -54.1% Local Development Transfer (22,400,000) (22,400,000) 0.0% Capital Expenditures ** (499,000) (966,824) 93.8%
Total Other Sources & Uses (13,896,000) 11,513,249 -182.9% GROSS INCREASE (DECREASE) 42,234,000 112,027,322 165.3% Revenue Deferred to RSF and Credits* - (112,027,322) 0.0% NET INCREASE (DECREASE) 42,234,000 - -100.0%
* Amount not determinable at time of budget approval
** Depreciation has been removed from Operations and is expressed as Capital Expenditures Budget Net Revenues to Audit Net Position Reconciliation The Budget is an internal proforma document set at the discretion of the Board. The financial statements in the Audit are standardized by Generally Accepted Accounting Principles (GAAP) and have additional rules set forth by the Governmental Accounting Standards Board (GASB).
Ava drafts each budget in accordance with industry best practices and does best efforts to align with GAAP and GASB standards, but fundamental differences exist and reconciliation should be defined.
The table below reconciles the audited Net Position increase to the budget actuals Net Revenues 3 Reconciled Item Details Amount Balance
Audited Net Position Includes net deferred revenues 18,563,835 Loss on Disposition of Assets Accrued depreciation of discarded assets (80,978) 18,644,813 LD Actual Expenses Actual FY 24/25 Program expenses (8,213,268) 26,858,081 LD Budget Allocation Budgeted capital transfer to Programs 22,400,000 4,458,081 LD Revenue from Grants FY 24/25 grant revenue in Programs 3,822,021 636,060 LD Interest Income Interest on development loans 115,326 520,734 Capital Outlay Capital reconcilliation 43,494 477,240
GASB 87 Lease Lease obligations outstanding as of 6/30/2025 477,240 - Deferred Revenue
• September 17, 2025, the Board of Directors (the “Board”) approved resolution R-2025-41 adopting the Rate Stabilization Fund (RSF) Policy to allow surplus revenues to be deferred for later uses. • The Board also adopted resolution R-2025-42 allocating 90% of fiscal year 2024-25 net revenues to be deferred to the RSF and 10% to on-bill credits for CARE/FERA customers for distribution in the 2025-26 fiscal year.
• Based upon the audited financial statements and the net revenues to net position reconciliation, it is determined that $112,027,322 comprises 100% of net revenues for the fiscal year, of which $11,202,732 will be allocated to on-bill credits and the remainder to the RSF 4 Usage Balance Guidance
RSF 132,954,316
R-2025-41 authorizes conversions from previous budget deferrals.
R-2025-23 authorizes recognition of ~$35MM to balance FY25-26 budget.
On-bill Credits 11,202,732 R-2025-42 authorizes deferral for specified use and recognition in FY 2025-26 Renewables 10,504,837
R-2023-37 authorizes deferral for specified use.
R-2024-26 authorizes recognition in 2027
Solar/Storage Incentives 14,963,130 R-2024-2 authorizes deferral for specified use.
Total Deferrals 169,625,015
Note: RSF Balance includes the ~$35MM authorized to balance the current year’s budget as $0 have yet been recognized from deferrals