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2016 Final PRS

March 15, 2017

Bob Harris

Senior VP & UGP Regional Manager

P-SMBP2016 Final SOR PRS

• 2016 Deficit Payment is $110 M

• Pays off the 2017 unpaid deficit balance

• Balance applied towards 2018 remaining deficit balance

• $113 M unpaid on the Drought after 2016

• 2016 $54 M Required Payments

• Mostly in 2.5% to repay Corps investments

• 2020 is the PRS pinch point

• SOR Study solves at current rate of 28.54 mills/kwh

• Drought debt paid off in 2018

• 2016 Rate Setting Study for CY 2018 rate not finalized yet.

22016 Final SOR PRS

32016 Final SOR PRS

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000Millions

Payments Applied

2016 Pmt

2016 Final SOR Study

Total Accumulated Deficit $843 M

Cumulative DeficitDeficit Repayment

Projected in Current Rate

$113.4 M remaining

unpaid

2016 Deficit Repayment

42016 Final SOR PRS

Missouri River Basin –Mountain Snowpack2016-2017 with comparison plots from 1997*, 2001*, and 2011

March 13, 2017

52016 Final SOR PRS

Chart provided by US Army Corps of Engineers

62016 Final SOR PRS

Missouri River Mainstem SystemAnnual Runoff above Sioux City, IA

0

10

20

30

40

50

60

70

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Million Acre-Feet

U.D.

L.D.

L.Q.

U.Q.

Med.

10%

90%

75%

25%

50%

34.5 MAF

16.1

19.3

30.6

24.6

Historic Drought Periods

2017

Chart provided by US Army Corps of Engineers

72016 Final SOR PRS

Mainstem System Generation

0

2

4

6

8

10

12

14

16

Normal 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17

9.3

14.6

10.011.2

9.6

6.17.5 7.6

6.55.6

6.3

4.94.9

6.6

8.7

11.110.4

7.59.6

8.57.6

10.1

Million Megawatt Hours

Forecast

Chart provided by US Army Corps of Engineers

Mar 1, 2017 Forecast Upper Basic: 13.6 Lower Basic: 9.4

102016 Final SOR PRS

Draft Schedule for 2018 Rate Adjustment

Federal Register Notice

Informal Meetings

Public ProcessInformation

Forums

Comment Forums

New Rate in Effect

Federal Register Notice

Final Rate 30 Day Notice

FRN

Dro

ugh

t A

dd

er

Final FRN Rate

Jan 2017 Apr 2017 Jul 2017 Oct 2017 Jan 2018

Save the Date Information Webinar

112016 Final SOR PRS

• Sent out a March 9th letter announcing Webinar• Plan for Public Rate Process• Webinar is April 18, 2017, 1:00 – 3:00 PM MDT• Discuss the Pick-Sloan—ED and LAP Base and Drought Adder true up and the plan

for the up coming public process to adjust the over all Pick-Sloan composite rate• Drought Adder component going to zero and increase to the Base

Component

https://www.wapa.gov/regions/UGP/rates/Pages/2018-firm-rate-adjustment.aspx

• Webinar will be recorded and posted to the website.

122016 Final SOR PRS

Questions

www.wapa.gov

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