minutes of lincoln electric system administrative … · kelley porter, brooke rogers, emily...

MINUTES OF LINCOLN ELECTRIC SYSTEM ADMINISTRATIVE BOARD Minutes of regular meeting held at 9:30 a.m., Friday, April 19, 2019, at the offices of

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

Andy Hunzeker, Lucas Sabalka, Vicki Huff, Jerry Hudgins, Eliot Bostar

Board Members Absent: None LES Staff Present: Kevin Wailes, Shelley Sahling-Zart, Laura Kapustka, Jason

Fortik, Dan Pudenz, Lisa Hale, Trish Owen, Paul Crist, Lacy Stockdale, Kyle Dump, Baylee Vrtiska, Chasity Blair, Marc Shkolnick, Melissa Palmer, Jim Rigg, Byron Bakenhus, Kelley Porter, Brooke Rogers, Emily Koenig, Dustan Daniel, Troy Hopkins, Bryan Willnerd, David Auman, Tom Rathe

Others Present: Matt O’Gorman 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

March 15, 2019. Vicki Huff moved their approval. Andy Hunzeker seconded the motion. The vote for approval of the minutes was:

Aye: Ward, Kalkowski, Peetz, Hunzeker, Sabalka,

Huff, Hudgins, Bostar Nay: None Abstain: Sup Absent: None

Byron Bakenhus, Senior Engineer, Projects Engineering, Power

Supply, was recognized by the Board for 30 years of service to LES.

Call to Order Approval of Minutes Introduction & Recognition of Staff

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Sarah Peetz, Chair of the Operations & Power Supply Committee, reported on Committee discussion which included the following: 1) an update on the street lighting conversion project; 2) the Electric Power Research Institute (EPRI) cyber security review of local generating plants; 3) microgrid introduction; and 4) a review of LES’ electric vehicle pilot study. (Exhibit I)

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

on Committee discussion which included the following: 1) an external audit review of 2018 financial statements; 2) the first quarter 2019 financial review & forecast; 3) an educational overview of Directors & Officers insurance; 4) an update regarding DEC and NUCorp; and 5) a first quarter report from Internal Auditing. (Exhibit II)

Hudgins informed the Board of BKD’s 2018 audit report findings. LES received an unmodified opinion, or a “clean audit.” Sarah Peetz moved for the Board to accept the 2018 BKD audit report. Andy Hunzeker seconded the motion. The vote to accept the 2018 audit report was: Aye: Sup, Ward, Kalkowski, Peetz, Hunzeker, Sabalka, Huff, Hudgins, Bostar Nay: None Absent: None

Sarah Peetz, LES’ Administrative Board representative on DEC,

gave an overview on the happenings of DEC. (Exhibit III) The DEC Board recently approved a new management agreement with LES. Peetz gave an operations and capital projects update, as well as a financial report.

DaNay Kalkowski, Chair of the Communications & Customer

Services Committee, reported on Committee discussion which included updates on the following: 1) the dunning enhancement project; 2) LES’ Electric Vehicle (EV) Study; 3) LES campaigns and social media/digital marketing; and 4) revisions to the LES Service Regulations. (Exhibit IV)

Operations & Power Supply Committee Finance & Audit Committee Quarterly District Energy Corporation (DEC) Update Communications & Customer Services Committee

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Shelley Sahling-Zart, Vice President & General Counsel, reported on state legislative activities to date. (Exhibit V) LB 16, which would allow public power utilities to lawfully withhold from public records requests any information related to critical energy cyber and physical infrastructure information, has been approved by the Governor. LB 155 originally failed by two votes to advance to general file, but Sen. Clements joined Sen. Brewer and prioritized this bill. LB 155, as introduced, would have eliminated a provision in current law, which provides that the exercise of eminent domain to provide transmission for a privately developed renewable energy generation facility, is a public purpose. Several senators introduced a compromise amendment that would modify the provision. It states that there is a rebuttable presumption that the exercise of eminent domain in this case is a public use. LB 184 which relates to the deployment of small cells in the public right-of-way is currently on general file. LES is not opposed to deployment of small cells to enhance wireless communications, but LES and the city believe municipalities should maintain latitude to manage the public rights-of-way. Senators agreed to a compromise amendment which will cause municipalities to be neutral on the bill. The amendment exempts LES as a municipal electric utility, although LES would remain subject to some of the provisions since LES manages city street light poles.

Jason Fortik, Vice President, Power Supply, provided the First

Quarter 2019 Power Supply Report. (Exhibit VI) Net power costs were approximately $3.1 million below budget due to lower wind production expenses and additional revenue from the Southwest Power Pool (SPP) Integrated Marketplace. The year-to-date peak load day was reached on January 30, 2019, when customers demanded 594 MW of energy. Energy utilized by the SPP Integrated Marketplace was:

Renewables: 38%

Coal: 60% Oil & Gas: 2%

State Legislative Report First Quarter 2019 Power Supply Report

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Laura Kapustka, Vice President & Chief Financial Officer, provided the First Quarter 2019 Financial Review. (Exhibit VII) Residential revenues were 13% above budget due to the cold weather in the first quarter. Year-end debt service coverage is projected to be 2.23. Kapustka noted that cold weather in the first quarter resulted in residential revenues exceeding budget and when combined with lower net power costs, solid financial performance was the result.

Kevin Wailes, Chief Executive Officer, presented the 2019 first

quarter Performance Indicators. (Exhibit VIII) He noted that the executive team is revising the performance indicators and how they are presented to the Board. He encouraged Board members to provide feedback, especially any specific metrics they would like included.

Marc Shkolnick, Manager, Energy Services, provided an update on

LES’ Sustainable Energy Program (SEP). (Exhibit IX) To date, approximately $460,012 of the $1.5 million budget has been obligated. Of the obligated funds, $232,397 was reserved for lighting.

Brooke Rogers, Specialist, Creative Communications, presented

the 2018 Annual Report microsite to the Board. The report, titled “Power with a Purpose,” speaks to how the community continues to be both the purpose for our work and the driver that enables it. LES’ 2018 Annual Report can be found at www.les.com/annualreport. The 2018 Financial Report can also be accessed on the site.

Chair Sup presented the Board with LES Resolution 2019-2, which

publicly recognizes and expresses appreciation to Vicki Huff for her many contributions and involvement in her eight years as a member of the LES Administrative Board. (Exhibit X) Tammy Ward moved approval of LES Resolution 2019-2. DaNay Kalkowski seconded the motion. The vote to approve LES Resolution 2019-2 was:

Aye: Sup, Ward, Kalkowski, Peetz, Hunzeker,

Sabalka, Hudgins, Bostar Nay: None Abstain: Huff Absent: None

First Quarter 2019 Financial Review First Quarter 2019 Performance Indicators First Quarter 2019 Sustainable Energy Program (SEP) Update 2018 Annual Report Recognition of Vicki Huff – LES Resolution 2019-2

http://www.les.com/annualreport

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Chair Sup presented the Board with LES Resolution 2019-3, which publicly recognizes and expresses appreciation to Jerry Hudgins for his many contributions and involvement in his nine years as a member of the LES Administrative Board. (Exhibit XI) Vicki Huff moved approval of LES Resolution 2019-3. Tammy Ward seconded the motion. The vote to approve LES Resolution 2019-3 was:

Aye: Sup, Ward, Kalkowski, Peetz, Hunzeker,

Sabalka, Huff, Bostar Nay: None Abstain: Hudgins Absent: None

The Monthly Financial and Power Supply Reports were distributed

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

The next regular meeting of the LES Administrative Board is

scheduled for Friday, May 17, 2019, at 9:30 a.m. There being no further business before the Board, Layne Sup

declared the meeting adjourned at approximately 11:30 a.m.

Recognition of Jerry Hudgins – LES Resolution 2019-3 Monthly Financial and Power Supply Reports Next Meeting Adjournment

DaNay Kalkowski, Secretary

BY: S/Lacy Stockdale Lacy Stockdale Assistant Secretary

Exhibit I

2G!5Operations and Power Supply Committee

Meeting SummaryApril8,2019

Street Lighting Conversion Project Update:The street lighting infrastructure in Lincoln is owned by the City of Lincoln, but is designed, serviced, andmaintained by LES. The City Council approved a project with an energy services company to convert allstreet light luminaires in the system to LED technology. The conversion began in October 2018 and isscheduled to conclude in June 2019. Approximately one-half of the 26,000luminaires have beenconverted to date. Relatively few customer complaints have been received, and the complaints rangefrom the new lights being too bright to not bright enough. LES will continue to participate in weeklymeetings with the energy services company and will continue to help address installation issues as theyare identified.

EPRI Cyber Security Review of Local Generating Plants:Cyber security and mitigating cyber attacks on electrical infrastructure continue to be high priority itemsfor the electric utility industry. LES contracted with the Electric Power Research lnstitute (EPRI) toperform a cyber assessment of the Rokeby and Terry Bundy Generating Stations. EPRI reviewed theplants'existing cyber programs and systems, performed an onsite audit of existing procedures andpolicies, and met with key stakeholders to gain a better understanding of the existing cyber landscape.EPRI will deliver a report that summarizes their findings, recommendations, best practices, and proposedremediations. LES staff is developing a multi-year project to implement the report's recommendations.

Microgrid lntroduction:Microgrids are localized electrical grids that are designed to disconnect from the traditional grid andoperate autonomously. They can be used to sustain service to customers that otherwise could beaffected by a traditional grid outage. Community focused microgrids typically provide electric serviceto critical functions such as hospitals, police, fire stations, shelters, grocery stores, water treatment,communication infrastructure, and government buildings. LES staff is exploring the feasibility ofcreating a microgrid that utilizes LES'existing J Street generation and 8th & N Street substationinfrastructure. The potential critical customers in this area include City, County, State, and Federalgovernment buildings.

Electric Vehicle Pilot Study Review:Nearly ninety electric vehicle owners representing fifteen different vehicle types are currentlyparticipating in the two-year electric vehicle pilot study. The project partners include the University ofNebraska, the American Public Power Association, the National Renewable Energy Laboratory, and theNebraska Environmental Trust. Data collection started in November 2018 and includes charginglocation, charging time, and the electrical consumption of the charging event. These data points alongwith other anonymized data points being collected will help staff determine customers'charging habitsand estimate how a larger penetration of electric vehicles will impact LES' infrastructure.

Lincoln Etectric System1 04O 0 St., PO. Box 80869Lincoln, NE 68501

402 475 ,1211 402 47 5 0446 LES.cont

Exhibit II

1

L45Finance & Audit Committee - meeting minutes

April 19,2019

ExternalAudit Review o12O18 Financial Statements (Dustan & BKD)a. Representatives from BKD, LES' external audit team, provided the Committee a review

of the audit of LES' 2018 financial statement.b. LES received an unmodified (clean) opinion on the audit.c. A copy of the annual report and a communication letter from BKD have been provided

to board members.

2. First quarter 2019 Financial Review & 2019 forecast (Laura)a. Colder than average weather in the first quarter and projected lower than budget net

power costs are resulting in projected debt service coverage of 2.23 as compared tothe budget of 2.10.

3. Directors & Officers lnsurance (Bryan & Willis)a. Bryan Willnerd and LES'lnsurance Broker, Willis Towers Watson provided an

educational overview of Director's & Officers (D&0) insurance coverage.b. LES is considering modifying its existing D&O coverage.

4. DEC/NUCorp Update (Emily)a. The amended and restated DEC & LES Management Agreement was adopted this

week. The new agreement:1 . Clarifies indemnification and insurance requirements,2. Defines the calculation of fees for LES's management services, and3. lmplements a S-year termination provision.

b. There continues to be a difference of interpretation on some contracting and budgetingauthority which will be resolved by a working group of LES stafl DEC Board membersand their attorneys.

c. The DEC 2018 Financial Statement Audit has been completed. DEC received anunmodified, or a "clean audit", opinion.

d. The NUCorp Board will consider the 2019-20 proposed budget and rates at its boardmeeting next week.

5. lnternalAudit 1st Quarter Report & Follow-up Report (Dave)a. lnternal Auditing discussed their 1't quarter report ending March 31,2019. The 3

reports included were The Budget Billing Audit, The Payment ln Lieu of Tax and CityDividend Audit and The Custodial and Security Services Audit. All audits had QualifiedOpinions;that is, a clean opinion with minor findings and recommendations.

b. The lnternal Auditors also reported on their recommendation follow-up activity. Therecontinues to be good progress implementing the audit recommendations.

c. lnternal Auditing continues to receive excellent cooperation and support from LES

Management and staff.

6. Miscellaneous

Lincoln Electric System1 040 O St., PO. Box80869Lincoln, NE 68501

402 475 4211 4O2 4750446 LES.conr

Exhibit III

Lã!5DEC Board Meeting Summary

April 16,2019

The District Energy Corporation held its most recent Board meeting on April 16,2019. Highlights fromthe meeting include the following:

1. Management Agreement: The DEC Board approved an "Amended and Restated ManagementAgreement between the District Energy Corporation and the Lincoln Electric System" under whichLES will supervise, operate, and manage the systems and business affairs of the DEC. Among otheritems, the new Agreement updates the insurance and indemnification sections to make theAgreement better reflect the current operations of the DEC. The working group that was previouslyconvened to develop the Agreement is scheduled to meet again to clarify the budgeting process touse for capital and operating expenses that span multiple years.

2. New Customer Service Extensions: 2019 Capital Budget amendments were approved to authorizedistribution main piping and service piping extensions to serve new customers in Block 4 and Block5 in the southern area of the West Haymarket.

3. DEC Management Reporta. Operations Update: The first quarter temperatures were colder than normal, but there were no

customer outages during the quarter. Despite the cold temperatures, spot natural gas pricestraded in a range of $2.82-$3.53/mmBTU.

b. Capital Projects Updatet. Nebraska State Penitentiary (NSP) DEC CentralThermal Facility

a. The installation of building's precast wall panels is nearly complete, concrete work inthe electrical, boiler, and chiller areas is nearly complete, and steam piping work isscheduled to begin in April. Most of the major equipment has been delivered tostorage locations in the Lincoln area and will be moved to the building once it isready.

b. State Penitentiary personnel are coordinating with the DEC to install temporary boilersto help the State manage service continuity issues with the existing thermal plant.The temporary boilers will be placed in service in April. Permanent thermal servicesare scheduled for August 2019, backup electrical generation in September 2019, andfinal completion is expected in October 2019. The current estimated completion costis $22M, which is also the budgeted amount.

4, DEC Financial Reporta. Energy sales for Q1 2019 were up 9"/o from budget, due largely to colder than average

temperatures. Revenues were above budget at all the plants except the LES Operations Center,due to the delayed timing of the plant reaching Substantial Completion. Expenses were 217o

below budget, also largely due to the timing of the LES Operations Center plant. Debt ServiceCoverage is 1.41 compared to a budget of 1 .13 due to the lower than expected expenses.

Lincoln Electric System'104O

O St., PO. Box 80869Lincoln, NE68501

402 475 4211 .102 475 0446 LES.conr

b. The DEC Board approved a Resolution adopting a revised investment policy. The new policyclarifies the procedures for bidding, tracking and awarding investments, as well as makingchanges to allowable investments for Money Market funds.

c. Staff provided a status update on the annual review of the Enterprise Risk ManagementProgram. The final report will be provided at the July 2019 DEC Board meeting.

5. Other Business: The DEC is celebrating its thirty-year anniversary in 2019. The October Boardmeeting will include a tour of the new LES Operations Center plant along with an anniversarycelebration. The Board also recognized Jon Camp for his service to the community and as a DEC

Board member.

Exhibit IV

LAÍCommunications & Customer Services Committee Meeting - April 18,2019

The following is a summary of the April 1 8,2019 Communications and Customer Services Committeemeeting:

1. Gredit/Dunning UpdateKelli Detty, manager of customer account services, updated the committee on the soon-to-be-completed dunning enhancement project. With the implementation of the new system, LES willallow customers to opt-in to additional notifications prior to a disconnection of service due to non-payment. The new system will also send reminder notices to customers with an otherwisefavorable payment history, rather than a standard disconnect notice. The implementation of theseupdates should result in fewer disconnect notices, fewer customer calls and, ultimately, fewerdisconnect orders - all wins for our customers.

Capacity planning tools and workflow automation will also save LES personneltime and resources,thereby allowing them to do other necessary tasks both in the field and in the office.

2. EV Pilot UpdateScott Benson, manager of resource and transmission planning, gave an update on the ElectricVehicle (EV) study. With 86 hardware devices installed throughout the community, anonymizeddata is beginning to come in. This data - including charging t¡mes, charging load, hours of vehicleoperation, etc. - will be gathered through December 2020. With five months of data gathered sofar, it appears that approximately 75 percent of the study participants are charging at home.

Marc Shkolnick, manager of energy services, updated the committee on recent EV customerengagement activities that have occurred or are being planned:

o EV Owners Breakfast in January 2019, with another similar event planned in August¡ EV lnfrastructure Conference held in York, NE in March2019. Develop and grow a list of existing EV owners and customers interested EV's to promote

future informational and engagement activitieso Possibly coordinate a "ride and drive" event in 2020

3. Update on LES Campaigns & Social Media/Digital Marketing UpdateKelley Porter, manager of communications, provided an overview of LES'campaigns and events in2019. LES is soon unveiling its Mobile Education Trailer, which is similar to a tiny house. Theeducation trailer is a unique way to engage customers and expand LES' reach with hands-onlearning using the latest technology and materials. Staff is able to highl¡ght current and futureenergy efficiency trends, enhance PR and employ future training applications. LES partnered withSoutheast Community College-Lincoln and The Career Academy through LPS on this effort. Thetrailer will be completed by LES' Sustainable Living Festival on July 27.

Another community partnership this year is a new event with the Lincoln Children's Zoo. Zoo LightsPowered by LES, will be an annual event held at the Zoo, tentatively running Dec. 1 through NewYear's Day, and will showcase major lighting displays and educational areas. The event will provideLES with another opportunity to educate others on energy efficiency, careers in energy andelectricity safety, while creating positive interactions with our community.

Lincoln Etectric SystemI 040 O St., PO. Box 80869Lincoln, NE 68501

4O2 475 4211 402 47504/'6 LES"conr

Porter provided an update on current LES campaigns. A total of 24,170 customers have enrolled inPaperless Billing (17 .64v. conversion).

A total of 349 participants are enrolled in LES'Virtual Net Metering program, totaling 434.5 panelsAnd, there are 1,400 thermostats enrolled in LES' Peak Rewards program.

On March 26, LES hosted its second Energy Night, a hands-on event for children who arehomeschooled. A total of 50 families participated in activities including renewables, the science ofelectricity, and careers in energy. UNL students in the College of Engineering joined 15 LESemployees in running this after-hours effort.

4. Revisions to Service RegulationsHeather Schlautman, manager of customer care, updated the committee on the proposed changesto the LES Service Regulations. Heather reminded the committee that an annual review of theservice regulations is done internally each year, with revisions shared with the board as well as LEScustomers prior to adoption and implementation. The current schedule íncludes a presentation atthe May Administrative Board Meeting; an online customer open house in May; and a board vote inJune.

Taletha Kryzsko, corporate governance analyst, manages proposed changes throughout the yearand assists with the facilitation of input meetings throughout the company. This year, there wererelatively few changes or additions to the regulations. Most changes were made for clarity or tobetter align with other sections in the regulations.

Exhibit V

2019 LEGISLATION IMPACTING LES

LEGISLATIVE

BILL STATUS OF

LEGISLATION SUMMARY OF LEGISLATION

LES POSITION

LB 9 General File (Blood) Prohibits cities and counties from taxing or regulating distributed ledger technology (bitcoin/block chain).

Monitor/Confer with the City

LB 16 Signed by Governor

(Briese) LB 16 was introduced on behalf of LES to create an additional category of public records that can be lawfully withheld from public disclosure under Nebraska public records laws. The purpose of the exemption is to allow public electric utility systems to protect data, maps, and information regarding critical physical and cyber infrastructure. This is a growing area of concern in many industries, and of particular concern to the utility industry. LB 16 also allows the withholding of the identity of employees in certain cyber and physical security positions whose positions make them more vulnerable to threats and extortion. Utilities are willing to provide salary and other information about the positions they hold, but we believe the identity of those employees should not be disclosed for security reasons.

Support

LB 23 Speaker Priority Bill Select File

(Kolterman) Amends the Property Assessed Clean Energy (PACE) Act to cover energy efficiency improvements or renewable energy systems that are already in place provided there is still a remaining weighted average useful life of at least 10 years at the time of application for financing.


LB 76 General File

(Williams) Amends the nameplate capacity tax provisions for privately developed renewable energy generation facilities to provide that nameplate capacity shall be determined based on the facility’s alternating current capacity. This bill does not directly impact LES, but it will be monitored for its relevance to the industry.

Monitor

LB 124 Signed by Governor

(Crawford) Amends the PACE Act provisions regarding PACE districts that are jointly created between two or more municipalities to clarify that such a joint district cannot include any area within the corporate boundaries or extraterritorial zoning jurisdiction of any municipality that is not a part of the joint agreement.


LB 148 General File

(Groene) Changes public meeting notice requirements for public bodies, including interlocal cooperation entities that receive tax funds. This would not include DEC or NUCorp. Current law provides that a public body must give reasonable advance publicized notice of the time and place of the meeting by a method designated by each public body and recorded in its minutes. LB 148 requires public notice to be published in a newspaper of general circulation within the public body’s jurisdiction and, if available, in a digital advertisement on such newspaper’s web site. This does not represent a significant change for LES, but the bill will be monitored for amendments.


https://nebraskalegislature.gov/FloorDocs/106/PDF/Intro/LB9.pdf






April 18, 2019

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LEGISLATIVE

BILL STATUS OF


LES POSITION

LB 150 Government, Military & Veterans

Affairs Committee Hearing February 8, 2019

(Brewer) LB 150 allows custodians of public records to charge a fee for public records requests by non-residents of Nebraska and such fee may include a charge for the salaries of public employees who fulfill the request. There is an exception for news media regardless of their location of domicile. This exception would include media sources in foreign countries. LES is concerned that this bill has potential to be abused by non-Nebraska entities.

Oppose/Confer with the City


Affairs Committee Hearing February 20, 2019

(Brewer) LB 151 establishes the Government Neutrality in Contracting Act that prohibits political subdivisions from issuing RFPs or bid specifications that include language that requires, prohibits, encourages, or discourages bidders for public contracts from entering into or adhering to a collective bargaining agreement.


LB 155 Senator Priority Bill

General File

(Brewer) Amends provisions related to privately developed renewable generation facilities to strike language that declares that the exercise of eminent domain to provide transmission lines for such a facility is a public use. Sen. Brewer’s intent is to prevent the use of eminent domain for a private activity or project. Update: LB 155 was prioritized by both Sen. Brewer and Sen. Clements. The bill previously failed by two votes to advance on General File. With the second priority designation the Speaker has indicated he will again schedule the bill for debate.

Monitor

LB 184 Committee Priority Bill

Transportation & Telecommunications Committee

General File

(Friesen) LB 184 requires municipal electric utilities to allow for small wireless cell attachments unless the applicant does not meet the applicable industry construction standards in the utilities right of way (ROW) or its building, electrical, or pole attachment codes. The stated purpose of the bill is to provide “uniform procedures, rates, and fees” for the deployment of small cells. However, the bill exempts public power districts, rural public power suppliers, the University of Nebraska, state colleges, community colleges, and the Nebraska Dept. of Transportation. Public power districts can continue to negotiate pole attachments on an individual basis, but LES would be subject to the constraints of LB 184. We do not see how this achieves anything close to uniformity or consistency. While LES is supportive of small cell technology, we believe that LB 184 is an inappropriate mandate within the public ROW that significantly erodes a public entity’s authority and management of its ROW. In addition, the FCC has issued an Order regarding small cells and the public ROW that is currently being challenged in federal court. The Legislature should wait for this matter to be resolved at the federal level. For all of these reasons, LES and the City of Lincoln oppose LB 184.

Oppose/Coordinate with the City





April 18, 2019

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LEGISLATIVE

BILL STATUS OF


LES POSITION

LB 208 Transportation &

Telecommunications Committee Hearing February 4, 2019

(Walz) Amends the dark fiber statutes to allow for public-private partnerships and to also exempt them from Public Service Commission approval of the dark fiber lease price.

Support/Confer with the City

LB 212 Speaker Priority Bill

Final Reading

(Government, Military & Veterans Affairs Committee) Amends the Open Meetings Act for interlocal organizations that sell electricity or natural gas at wholesale on a multi-state basis to expand the ability to meet by teleconference. This bill is primarily for NMPP Energy, but LES monitors most open meetings legislation.

Monitor

LB 217 Presented to Governor

(Pansing Brooks) Amends the Wage Payment and Collection Act to an employer from discharging or retaliating against any employee because such employee inquired about, discussed, or disclosed comparative compensation information for the purpose of determining whether the employer is compensating any employee in a manner that provides equal pay for equal work. LES will monitor the bill.


LB 218 Speaker Priority Bill

Final Reading

(Lindstrom) Excludes electric generation, transmission, distribution, and street lighting structures or facilities owned by a political subdivision from the definition of tangible personal property thereby exempting such facilities from taxation. LB 218 also provides that any revenue from leases of such facilities, such as pole attachments, shall not be counted as gross receipts.

Support

LB 254 Final Reading

(McCollister, et al.) Adopts the Fair Chance Hiring Act prohibits employers from asking applicants for a position about their criminal history and cannot conduct a criminal history until the employer has determined the applicant meets the minimum requirements. In addition, the employer must give the applicant an opportunity to explain or provide information or circumstances about the criminal history.


LB 283 Executive Board

Hearing February 11, 2019

(Pansing Brooks) Provides that the University of Nebraska will develop a strategic action plan to provide methods for adapting to and mitigating the impacts of climate change. It appropriates up to $250,000 from the Waste Reduction & Recycling Incentive Fund for the study. The action plan is required to be submitted to the Governor & Legislature by December 15, 2020.

Monitor







April 18, 2019

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LEGISLATIVE

BILL STATUS OF


LES POSITION

LB 285 Natural Resources Committee

Hearing March 14, 2019

(McCollister) Appropriates $200,000 for the Nebraska Power Review Board (NPRB) to conduct a study of electric transmission and distribution infrastructure policy, including an assessment of facilities that may alleviate transmission or distribution constraints or eliminate the need for infrastructure upgrades. The NPRB is authorized to hire a consultant and to see input into the study from The Legislature, the Department of Economic Development, the Nebraska Energy Office, the Southwest Power Pool, the public power industry, and other interested parties. The report is required by December 20, 2019. We will be meeting with Sen. McCollister to determine his intent, but we do not see the need for such a study.

Oppose

LB 302 Signed by Governor (Hughes, at request of the Governor) Merges the Nebraska Energy Office into the Department of Environmental Quality and renames it the Department of Environment and Energy, to be effective July 1, 2019.

Monitor

LB 311 Senator Priority Bill

General File

(Crawford, et al.) Adopts the Paid Family and Medical Leave Insurance Act. It creates an insurance program to provide partial wage replacement for eligible employees to care for themselves or a family member following a serious illness or to care for a new child through birth, foster care, or adoption. Leave can also be used for military need.


LB 361 Select File

(Hansen, M.) Prohibits employers from retaliating or discriminating against an employee or applicant because the employee or applicant files a complaint pursuant to the Wage and Hour Act or testifies or participates in an action concerning a violation of the act.




(Bostelman) Provides a graduated schedule of registration fees for motor vehicles powered by an alternative fuel beginning at $85 for 2020 increasing to $125 dollars in 2024. Alternative fuel includes electricity, solar power, and any other source of energy not otherwise taxed under the motor fuel laws. This is intended to offset the decrease in gas taxes as the utilization of electric vehicles increases.

Monitor


Affairs Committee Hearing January 31, 2019

(Brewer) Prohibits the location of wind turbines within 3 miles of any residential dwelling unless the homeowner provides written permission prior to construction. The homeowner shall have a civil cause of action if the wind developer violates the set-back requirement. Beginning July 1, 2021, LB 373 also requires a county in which a wind project is located to have zoning regulations or a zoning resolution that, at a minimum, addresses set-backs for the wind turbines, noise and decommissioning.

Monitor

LB 456 Revenue Committee


(Lathrop) Provides a new exemption from sales and use tax for machinery or equipment for use in the production of electricity from a renewable energy source including machinery or equipment used to store such electricity. Renewable energy source includes wind, solar, geothermal, hydroelectric, biomass, and transmutation of elements. The bill doesn’t directly impact LES, but it will be monitored.

Monitor








April 18, 2019

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LEGISLATIVE

BILL STATUS OF


LES POSITION


Transportation & Telecommunications Committee


(Friesen) Amends the One-Call Notification System Act to give greater regulatory authority to the statewide One-Call board of directors and to establish a dispute resolution board for complaints filed under the act. It also establishes new licensing requirements for locators, which appears to also apply to utility locators employed by the utility. While some improvements to the One-Call administration and board may be necessary, LES opposes giving broad regulatory authority to the One-Call board which is not a state agency.

Oppose

LB 507 Revenue Committee


(Briese) LB 507 eliminates a number of sales and use tax exemptions. As written it does not impact LES, but we will monitor LB 507 as well as other bills (such as LB 508) related to these exemptions to ensure that the sales and use tax exemption is retained for fuels used in the generation of electricity.

Monitor

LB 509 Natural Resources Committee


(McCollister) Amends state net metering laws to provide that a local distribution utility’s rate for net metering shall be implemented as a fixed rate not to exceed more than 20% of the utility’s fixed rate for customers in the equivalent rate class to the customer-generator. It also provides that no other fee shall be charged to a net-metering customer for standby, capacity, demand, interconnection, or other costs. This could be interpreted to mean that the utility could not charge a fixed customer charge for net metered customers which means those costs would shift to non-net metered customers. LES opposes this cost shift. LB 509 also increases the size threshold for which a utility must provide net metering from 25 kW to 100 kW, but also allows a customer to install a generation system up to 110% of the customer-generator’s average monthly use, not to exceed 100 kW.

Oppose



(Brandt et al.) Provides for the creation and maintenance of a statewide geographic information system (GIS) map under the Nebraska Telecommunications Regulation Act to track connection speeds and type of technology for each address or land parcel.

Monitor

LB 621 Judiciary Committee


(Kolowski) Permits counties and municipalities to consider a “right to direct sunlight” in its zoning regulations in order to encourage solar or wind energy. It also proposes to prohibit any deed or ownership document or homeowners’ association covenant from forbidding or restricting the installation of a solar energy system.

Monitor

LB 627 General File (Pansing Brooks) Prohibits employment discrimination based on sexual orientation and gender identity.








April 18, 2019

-6-


LEGISLATIVE

BILL STATUS OF


LES POSITION


Natural Resources Committee General File

(Bostelman) Revises statutory provisions related to decommissioning of wind conversion systems to specifically include the removal of both aboveground and underground equipment and restoring the land to its natural state. There is concern that a wind developer would remove the wind turbines, but leave the concrete foundations in place.

Monitor


Affairs Committee Hearing March 15, 2019

(McCollister) Appropriates $50,000 for the State to assess the utilization of resources by the state, including using instate renewable energy generation for state-owned buildings, reduction of energy consumption in state-owned building, and other measures to increase energy -efficiency in state-owned buildings. Authorizes the Department of Administrative Services to issue and RFP for proposals to allow the State and the University of Nebraska to purchase at least 50% of if its energy from renewable resources by 2025, 70% by 2028, and 80% by 2031. LES will monitor LB 704, but will continue to assist the State as possible in achieving its energy efficiency goals.




Exhibit VI

LES.com

Power Supply Division2019 First Quarter Update

Jason FortikApril 19, 2019

LES.com

2019 Year to Date Actual vs. Budget

$22.61

-$0.64

-$14.60

$15.03

-$4.04

$12.68

$14.18

$25.69

-$0.84

-$10.30

$8.71

-$4.66

$16.76

$16.02

-$20 -$10 $0 $10 $20 $30

Net

SPP Other***

SPP IM Market Revenue

SPP IM Load Purchases

Contract Sales**

Owned Asset Power

Non-Owned Asset Power*

Millions ($)

Budget ActualExpensesRevenues

*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

Net Power Cost (YTD)$3.1M, 12.0%Under Budget

LES.com

2019 Natural Gas Price & LMP

3.11

2.69 2.95

3.29 3.322.94

2.71 2.62 2.67 2.74 2.81 2.71 2.68 2.853.16

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Natural Gas Price ($/MMBtu)

22.4

0

24.0

0

27.7

0

21.89 19.1018.50

19.72 19.79 21.5424.64 23.92

19.4517.20 17.02

22.41


Lincoln LMP ($/MWh)

Actual Budget

LES.com

2019 Heating & Cooling Degree Days

0

50

100

150

200

250

300

350

400

450


Cool

ing

Degr

ee D

ays

Actual Average Year

0

200

400

600

800

1,000

1,200

1,400


Hea

ting

Degr

ee D

ays

Actual Average Year

LES.com

2019 Monthly Demand and Energy59

4

575

572

579 526 493


Demand (MW)

Current Year Actual Current Year Forecast

315.

5

300.

2

284.

1

303.9

276.2

263.5


Lincoln Load Settlement Area (GWh) YTD Renewable Energy (Equivalent % of Retail Sales)

Forecast: 52.5%

Actual: 43.2%

Peak Load Day(YTD)

1/30/2019594 MW

All Time Peak

8/1/2011786 MW

LES.com

2019 Year to Date Unit Energy

0

50

100

150

200

250

300

350

400


GW

H

LRS GENTLEMAN WS 3 WSEC 4 WAPA Firm TBGSWIND PSA WIND PPA WAPA Peaking ROKEBY J_St. LFGTE

LES.com

2019 Year to Date Unit Equivalent Availability

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

Industry Facts• SPP is expanding Reliability Coordination services to several entities

in the Western Interconnection• SPP is also exploring the option of starting an energy imbalance

services market in the Western Interconnection

Chart used with permission from SPP

LES.com

2019 Year to Date (January to March)

Coal 60%

Oil & Gas2%

Renewable38%

Energy Utilized by SPP IM -(Fuel Type)

Coal 47%

Oil & Gas28%

Renewable25%

Energy Offered to SPP IM -Approximate (Fuel Type)

Exhibit VII

LES.com

March 2019 Year to DateFinancial Update

Headline: Cold weather in the first quarter resulted in residential revenues exceeding budget and when combined with lower net power costs, solid financial performance

was the result

Laura L. KapustkaVice President & CFO

1

Administrative BoardApril 19, 2019

LES.com

Cold weather resulted in YTD residential revenues at 13% above budget

Budg

et, $

27.1

Budg

et, $

26.2

$7.6

Last

Yea

r, $2

9.6

Last

Yea

r, $2

5.9

$7.3

Actual$30.7

Actual$25.4

Actual$7.2

Actual$0.6

$0

$5

$10

$15

$20

$25

$30

Residential Commercial Industrial Streetlight

Dolla

rs in

Mill

ions

2

LES.com

Net power costs and retail revenue largest contributors to increase in Projected DSC

Lower SPP Transmission Expense

.07 Net Power Cost: Wholesale revenue is projected to remain lower than budget at year-end and is offset by purchased and produced power expenses which are also projected to be below budget at year-end ($4M).

.03 Retail Revenue: Increased use per customer ($1.8M).

.03 Other: Increase in miscellaneous revenues and lower expenses in Administrative & General and other categories ($1.2M).

3

Increases to DSC Decreases to DSC

2019 Budget = 2.10

2019 Forecast = 2.23

Nothing material

LES.com

LRS construction activity accounts for majority of projected $4.6M over-run (Budget is $76M)

-$36

$877

$2,928

$823

-$500

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

LES Operations Center$24.4M

Underground Projects$15.2M

Laramie River Station$8.2M

Balance of Budget$28.2M

In spite of weather delays, construction going well. Spending for 2019 is expected

to be on-budget.

Construction activities carried over from 2018

likely to result in budget over-runs

Relocations due to South Beltway

accelerated construction causing

anticipated budget over-runs

SE Reliability Project right of way acquisitions result

in higher than budgeted costs

Dolla

rs in

Tho

usan

ds

4

LES.com

It Is Audit Time, Most of the Time

What is required?• Annual audit of

financial statements by independent auditor (times 3)

What else does BKD do for LES?

• Consults on unique transactions, GASB standards, changes in business operations

• Provides educational opportunities

AugustNUCorp Audit One week onsite, One month of preparation

OctoberInterim Field Work LES/DECThree days onsite, five days of preparation

February Audit Field Work LES/DECTwo weeks onsite, two months of preparation

March Review and concurrent review of Audit ReportLES/DEC

AprilRelease Audit ReportLES/DEC

5

Exhibit VIII

LES.com

First Quarter 2019Performance Indicators

Administrative BoardApril 19, 2019

1

LES.com

Key Performance IndicatorsMeasuring what matters

Our Core Values• Safety• Reliability• Integrity• Community

Our Strategic Priorities

• Fiscal Responsibility• Employer of Choice• Sustainability &

Environmental Responsibility

• Customer Service• Outreach

2

LES.com

Changes to the KPIs provide better focus

3

Additional metrics will be shared in a Year-end Supplement

Uncollectible Accounts Per Revenue Dollar

Debt Comparison

Average Residential Bill

Regional Rate Competitiveness

Average Employee Tenure

Employee Turnover Rate

Deleted metrics will continue to be analyzed internally

Public Power Awareness

Projected Debt to Equity Ratio

Days Cash on Hand

Customer Outage Time – CAIDI

Average Days Sales Outstanding

O&M per Retail Customer

LES.com

Integrity & Fiscal Responsibility

4

SPP Locational Marginal Price ($/MWh)

Net Power Costs ($/MWh)

Metric Actual TargetRetail Energy Sales YTD 831 GWH 797 GWHProjected Year-End Debt Service Coverage 2.23 2.07

LES Peer Group 2.10

LES.com

Integrity & Fiscal Responsibility

5

Suspicious EmailsNumber reported 305

Cyber Security Risk Assessments

Cyber Events ReportedGoal: Complete investigations ASAP

Reported: 48Closed: 48

Phishing Tests

Above TargetIndustry <4% click rate

January: 60

February: 121

March: 124

0

5

10

15

20

January February March

New Closed Open at end of month

LES.com

Sustainability & Environmental Responsibility

6

CO2 Metric Tons/MWh produced

Actual 0.63 Target 0.59

Renewable Energy(Equivalent % of Retail Sales)

Actual: 43%

Budget: 53%

Sustainable Energy Program

$1.0 Million BalanceBudget $1.5MYTD Obligated $0.5M

SEP Demand Reduction (MW)

1.501.97

Target Actual First Quarter

LES.com

Safety & Employer of Choice

7

Days Away, Restricted, Transferred (DART)

2.64

Target <1.5

March 2019 – Workplace Safety Training

Reliability & Customer Service

Average Speed of Answer

17 seconds

Target 27 seconds

Industry 37 seconds

LES.com

Reliability & Customer Service

8

Annual Average Outage Time (SAIDI) Per Customer (Normal Weather)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Min

utes

LES Goal - 30 minutes

May 2014 to March 2019

Exhibit IX

LES.com

LES Sustainable Energy Program

2019 Q1 Update

Marc ShkolnickManager, Energy Services

April 19, 2019

1

LES.com 2

$6,092$9,175

$39,700 $45,600

$500

$232,397

$60,024

$51,323

$120,354

$130,000

$110,000

$460,012

$345,153

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2019 2018

Insulation Air Conditioning Heat Pump WH Lighting Industrial Peak Rewards

Q1 Obligated Dollars$1.5 million budget

LES.com 3

0.600.20

1.40

1.20

2.00

1.40

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2019 2018

Q1 Peak Rewards

Net Demand Reduction (MW)3.0 MW target

LES.com

Net Energy Savings (MWh)

4

4,409

1,351

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2019 2018

Q1

LES.com 5

Peak Rewards:Current

LES.com 6

LES.com 7

Energy Efficiency for Vulnerable and High Energy Burdened Customers:

*Energy Intensity **Energy Burden Average Age

of HomeTypical Single-family/Owner-occupied Household 8 kWh 1.5% 1971

^High Energy Intensity/Burdened Household (segment of 260) 24 kWh 5% 1944

*Annual electric consumption per square foot.**Annual electric bill as a percentage of household income.^Annual household income of less than 200% of poverty with high electric energy intensity and energy burden.

LES.com 8

Energy Efficiency for Vulnerable and High Energy Burdened Customers:Initial Barriers

Knob & Tube Wiring

Service Size

LES.com 9

Questions?

Exhibit X

LES RESOLUTION 2019-2 WHEREAS, Vicki Huff invested her personal and professional time for eight years to the complex responsibilities of the Lincoln Electric System (LES) Administrative Board; WHEREAS, Vicki Huff served on the Personnel & Organization Committee 2011-2019, chairing the committee in 2014-2018; Finance & Audit Committee 2011-2017, chairing the committee in 2013; Operations & Power Supply Committee 2011-2016; Labor Negotiations Committee 2014-2018; Budget & Rates Committee 2017-2019, chairing the committee in 2018-2019; Communications & Customer Service Committee 2018; and

WHEREAS, Vicki Huff’s contributions to the entire community, to LES, its Administrative Board, and its personnel are recorded in the transactions of the LES Administrative Board. NOW, THEREFORE, BE IT RESOLVED, that the members of the LES Administrative Board do hereby publicly recognize and express their appreciation to Vicki Huff for her many contributions and involvement for the betterment of LES and the community. BE IT FURTHER RESOLVED, that copies of this Resolution merit the attention of the Mayor of the City of Lincoln, members of the Lincoln City Council, and all who supported Vicki Huff’s participation and responsibilities in and on behalf of the LES Administrative Board and the citizens of this community. S/Layne Sup Chair Adopted: 4/19/19

Exhibit XI

LES RESOLUTION 2019-3 WHEREAS, Jerry Hudgins invested his personal and professional time for nine years to the complex responsibilities of the Lincoln Electric System (LES) Administrative Board; WHEREAS, Jerry Hudgins served on the Executive Committee 2011-2017; Finance & Audit Committee 2011-2012, 2018, chairing the committee 2011-2012 and 2018; Operations & Power Supply Committee 2010-2014, 2018, chairing the committee 2011-2014; Personnel & Organization Committee 2013-2014; Legislation & Governmental Affairs Committee 2010; and

WHEREAS, Jerry Hudgins’s contributions to the entire community, to LES, its Administrative Board, and its personnel are recorded in the transactions of the LES Administrative Board. NOW, THEREFORE, BE IT RESOLVED, that the members of the LES Administrative Board do hereby publicly recognize and express their appreciation to Jerry Hudgins for his many contributions and involvement for the betterment of LES and the community. BE IT FURTHER RESOLVED, that copies of this Resolution merit the attention of the Mayor of the City of Lincoln, members of the Lincoln City Council, and all who supported Jerry Hudgins’s participation and responsibilities in and on behalf of the LES Administrative Board and the citizens of this community. S/Layne Sup Chair Adopted: 4/19/19

Exhibit XII

Revenue & Expense Statement (Condensed)MARCH 2019

2019 2019 PercentageYEAR TO DATE Actual Budget Difference Difference

1) Total Revenue $76,188 $74,194 $1,994 3%

YTD residential revenue is 13% above budget, primarily due to weather related higher use per customer. Other retail classes and wholesale revenue are under budget and offsetting the gains in residential revenue.

2) Power Costs 30,590 34,699 (4,109) -12%

Produced power is 24% under budget due primarily to lower maintenance and operations expenses at LRS, lower expenses in all categories at WS4 related to lower production, lower Rokeby expenses due to an unplanned outage, and lower maintenance expenses at TBGS related to the timing of budgeted maintenance projects. SPP purchased power is 94% above budget due to higher purchases in the SPP IM to offset maintenance outage at LRS and lower production at WS4. Purchased power is 11% under budget related to lower energy expenses from renewable wind.

3) Other Operating Expenses 16,917 18,911 (1,994) -11%

Other Operating expenses (operation & maintenance, administrative & general) are under budget (-11%) due to the timing of project spending in categories including line clearance, corporate communications, sustainable energy program participation, consulting services, and software purchases.

4) Depreciation 13,000 13,141 (141) -1%5) Total Expenses 60,507 66,751 (6,244) -9%

6) Operating Income 15,681 7,443 8,238 111%

7) Non-Operating Expense (Income) 10,088 9,932 156 2%

8) Change in Net Position (Net Revenue) $5,593 ($2,489) $8,082 325%

Year End Projection Year End Budget9) Debt Service Coverage 2.23 2.10

Month End Actual Month End Budget10) Days Cash on Hand (Days) 202 174

(Dollar amounts in 000)

Comments

LES.com

LINCOLN ELECTRIC SYSTEM

FINANCIAL AND OPERATING STATEMENT

March 2019

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 STATEMENTCURRENT MONTH MARCH 2019

CURRENT CURRENT LAST YEARDESCRIPTION MONTH MONTH MONTH

ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT %OPERATING REVENUES 1. Retail $21,547,797 $19,280,122 $2,267,675 11.8% $20,605,212 $942,585 4.6% 2. Wholesale 2,437,432 2,627,603 (190,171) -7.2% 2,812,438 (375,006) -13.3% 3. Other Revenue 990,993 765,183 225,810 29.5% 598,867 392,126 65.5% 4. City Dividend 616,307 626,481 (10,174) -1.6% 598,144 18,163 3.0% 5. Total Operating Revenues 25,592,529 23,299,389 2,293,140 9.8% 24,614,661 977,868 4.0%

OPERATING EXPENSES 6. Purchased Power 6,880,886 5,760,170 1,120,716 19.5% 5,978,090 902,796 15.1% 7. Produced Power 3,299,013 5,168,631 (1,869,618) -36.2% 4,444,219 (1,145,206) -25.8% 8. Operations 1,366,698 1,738,791 (372,093) -21.4% 1,609,885 (243,187) -15.1% 9. Maintenance 671,024 777,167 (106,143) -13.7% 516,727 154,297 29.9%10. Administrative & General 3,139,139 3,746,930 (607,791) -16.2% 3,167,709 (28,570) -0.9%11. Depreciation 4,356,321 4,385,118 (28,797) -0.7% 4,274,698 81,623 1.9%12. Total Operating Expenses 19,713,081 21,576,807 (1,863,726) -8.6% 19,991,328 (278,247) -1.4%

13. OPERATING INCOME 5,879,448 1,722,582 4,156,866 241.3% 4,623,333 1,256,115 27.2%

NONOPERATING EXPENSES (INCOME)14. Interest Expense 2,195,097 2,176,345 18,752 0.9% 1,962,192 232,905 11.9%15. Capitalized Interest (206,831) (171,239) (35,592) 20.8% (89,561) (117,270) 130.9%16. Payments in Lieu of Taxes 1,017,772 953,025 64,747 6.8% 998,280 19,492 2.0%17. City Dividend Expense 635,337 635,337 0 0.0% 622,271 13,066 2.1%18. Other 45 0 45 - - 2 43 2150.0%19. Total Other Expense 3,641,420 3,593,468 47,952 1.3% 3,493,184 148,236 4.2%20. Interest Income (433,814) (365,557) (68,257) 18.7% (198,637) (235,177) 118.4%21. Total Nonoperating Expense (Income) 3,207,606 3,227,911 (20,305) -0.6% 3,294,547 (86,941) -2.6%

22. Income Before Contributions 2,671,842 (1,505,329) 4,177,171 277.5% 1,328,786 1,343,056 101.1%

CONTRIBUTED CAPITAL23. Contributed Capital Received 45,169 45,083 86 0.2% 9,246 35,923 388.5%24. Contributed Capital Used (45,169) (45,083) (86) 0.2% (9,246) (35,923) 388.5%25. Net Contributed Capital 0 0 0 - - 0 0 - -

26. CHANGE IN NET POSITION $2,671,842 ($1,505,329) $4,177,171 277.5% $1,328,786 $1,343,056 101.1%

Page 1

VARIANCE FROM VARIANCE FROMBUDGET LAST YEAR

REVENUE & EXPENSE STATEMENTYEAR-TO-DATE MARCH 2019

LAST YEARDESCRIPTION YEAR TO DATE YEAR TO DATE YEAR TO DATE

ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT %OPERATING REVENUES 1. Retail $63,879,098 $61,426,506 $2,452,592 4.0% $63,457,959 $421,139 0.7% 2. Wholesale 7,975,021 9,009,750 (1,034,729) -11.5% 8,645,444 (670,423) -7.8% 3. Other Revenue 2,466,358 1,877,040 589,318 31.4% 1,911,857 554,501 29.0% 4. City Dividend 1,867,977 1,880,864 (12,887) -0.7% 1,789,784 78,193 4.4% 5. Total Operating Revenues 76,188,454 74,194,160 1,994,294 2.7% 75,805,044 383,410 0.5%

OPERATING EXPENSES 6. Purchased Power 17,905,207 17,942,567 (37,360) -0.2% 17,945,170 (39,963) -0.2% 7. Produced Power 12,684,632 16,755,994 (4,071,362) -24.3% 13,707,440 (1,022,808) -7.5% 8. Operations 4,611,197 5,098,736 (487,539) -9.6% 5,066,612 (455,415) -9.0% 9. Maintenance 1,892,639 2,209,755 (317,116) -14.4% 1,463,939 428,700 29.3%10. Administrative & General 10,413,224 11,602,038 (1,188,814) -10.2% 10,719,263 (306,039) -2.9%11. Depreciation 12,999,828 13,140,634 (140,806) -1.1% 12,810,842 188,986 1.5%12. Total Operating Expenses 60,506,727 66,749,724 (6,242,997) -9.4% 61,713,266 (1,206,539) -2.0%

13. OPERATING INCOME 15,681,727 7,444,436 8,237,291 110.7% 14,091,778 1,589,949 11.3%

NONOPERATING EXPENSES (INCOME)14. Interest Expense 6,447,008 6,538,110 (91,102) -1.4% 5,894,437 552,571 9.4%15. Capitalized Interest (603,892) (391,904) (211,988) 54.1% (261,018) (342,874) 131.4%16. Payments in Lieu of Taxes 3,086,722 3,007,032 79,690 2.7% 3,068,175 18,547 0.6%17. City Dividend Expense 1,906,011 1,906,011 0 0.0% 1,866,809 39,202 2.1%18. Other (499) 0 (499) - - 47 (546) -1161.7%19. Total Other Expense 10,835,350 11,059,249 (223,899) -2.0% 10,568,450 266,900 2.5%20. Interest Income (746,864) (1,127,718) 380,854 -33.8% (617,125) (129,739) 21.0%21. Total Nonoperating Expense (Income) 10,088,486 9,931,531 156,955 1.6% 9,951,325 137,161 1.4%

22. Income Before Contributions 5,593,241 (2,487,095) 8,080,336 324.9% 4,140,453 1,452,788 35.1%

CONTRIBUTED CAPITAL23. Contributed Capital Received 443,342 135,249 308,093 227.8% 62,501 380,841 609.3%24. Contributed Capital Used (443,342) (135,249) (308,093) 227.8% (62,501) (380,841) 609.3%25. Net Contributed Capital 0 0 0 - - 0 0 - -

26. CHANGE IN NET POSITION $5,593,241 ($2,487,095) $8,080,336 324.9% $4,140,453 $1,452,788 35.1%

Page 2


REVENUES, ENERGY & CUSTOMERSCURRENT MONTH MARCH 2019


ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT %REVENUE 1. Residential $10,311,124 $8,487,233 $1,823,891 21.5% $9,106,387 $1,204,737 13.2% 2. Commercial 8,572,017 8,091,999 480,018 5.9% 8,748,298 (176,281) -2.0% 3. Industrial 2,455,642 2,481,424 (25,782) -1.0% 2,514,781 (59,139) -2.4% 4. Street Light 209,014 219,466 (10,452) -4.8% 235,746 (26,732) -11.3% 5. Total Retail 21,547,797 19,280,122 2,267,675 11.8% 20,605,212 942,585 4.6% 6. SPP Sales 1,068,835 1,065,472 3,363 0.3% 1,797,401 (728,566) -40.5% 7. Contract Sales 1,368,597 1,562,131 (193,534) -12.4% 1,015,037 353,560 34.8% 8. Total Wholesale 2,437,432 2,627,603 (190,171) -7.2% 2,812,438 (375,006) -13.3% 9. Total 23,985,229 21,907,725 2,077,504 9.5% 23,417,650 567,579 2.4%ENERGY (Megawatt-Hours)10. Residential 119,663 93,496 26,167 28.0% 101,662 18,001 17.7%11. Commercial 118,908 110,645 8,263 7.5% 122,470 (3,562) -2.9%12. Industrial 36,544 35,193 1,351 3.8% 38,253 (1,709) -4.5%13. Street Light 1,363 1,250 113 9.0% 1,908 (545) -28.6%14. Total Retail 276,478 240,584 35,894 14.9% 264,293 12,185 4.6%15. SPP Sales 40,631 68,921 (28,290) -41.0% 100,989 (60,358) -59.8%16. Contract Sales 44,406 54,657 (10,251) -18.8% 36,967 7,439 20.1%17. Total Wholesale 85,037 123,578 (38,541) -31.2% 137,956 (52,919) -38.4%18. Total 361,515 364,162 (2,647) -0.7% 402,249 (40,734) -10.1%CUSTOMERS19. Residential 123,877 123,970 (93) -0.1% 122,396 1,481 1.2%20. Commercial 16,960 17,008 (48) -0.3% 16,859 101 0.6%21. Industrial 178 176 2 1.1% 177 1 0.6%22. Street Light 5 5 0 0.0% 5 0 0.0%23. Total Retail 141,020 141,159 (139) -0.1% 139,437 1,583 1.1%24. Wholesale 8 8 0 0.0% 7 1 14.3%25. Total 141,028 141,167 (139) -0.1% 139,444 1,584 1.1%

Page 3


REVENUES, ENERGY & CUSTOMERSYEAR-TO-DATE MARCH 2019


ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT %REVENUE 1. Residential $30,675,131 $27,056,603 $3,618,528 13.4% $29,588,583 $1,086,548 3.7% 2. Commercial 25,431,988 26,200,237 (768,249) -2.9% 25,937,030 (505,042) -1.9% 3. Industrial 7,208,022 7,552,738 (344,716) -4.6% 7,288,435 (80,413) -1.1% 4. Street Light 563,957 616,928 (52,971) -8.6% 643,911 (79,954) -12.4% 5. Total Retail 63,879,098 61,426,506 2,452,592 4.0% 63,457,959 421,139 0.7% 6. SPP Sales 3,933,548 4,353,636 (420,088) -9.6% 5,069,151 (1,135,603) -22.4% 7. Contract Sales 4,041,473 4,656,114 (614,641) -13.2% 3,576,293 465,180 13.0% 8. Total Wholesale 7,975,021 9,009,750 (1,034,729) -11.5% 8,645,444 (670,423) -7.8% 9. Total 71,854,119 70,436,256 1,417,863 2.0% 72,103,403 (249,284) -0.3%ENERGY (Megawatt-Hours)10. Residential 363,499 316,147 47,352 15.0% 347,849 15,650 4.5%11. Commercial 357,191 365,362 (8,171) -2.2% 366,703 (9,512) -2.6%12. Industrial 106,563 111,727 (5,164) -4.6% 108,111 (1,548) -1.4%13. Street Light 3,651 3,400 251 7.4% 5,218 (1,567) -30.0%14. Total Retail 830,904 796,636 34,268 4.3% 827,881 3,023 0.4%15. SPP Sales 179,123 241,961 (62,838) -26.0% 221,545 (42,422) -19.1%16. Contract Sales 146,922 165,920 (18,998) -11.5% 130,576 16,346 12.5%17. Total Wholesale 326,045 407,881 (81,836) -20.1% 352,121 (26,076) -7.4%18. Total 1,156,949 1,204,517 (47,568) -3.9% 1,180,002 (23,053) -2.0%CUSTOMERS AVERAGE19. Residential 123,869 123,843 26 0.0% 122,446 1,423 1.2%20. Commercial 16,966 16,995 (29) -0.2% 16,857 109 0.6%21. Industrial 177 176 1 0.6% 177 0 0.0%22. Street Light 5 5 0 0.0% 5 0 0.0%23. Total Retail 141,017 141,019 (2) 0.0% 139,485 1,532 1.1%24. Wholesale 8 8 0 0.0% 7 1 14.3%25. Total 141,025 141,027 (2) 0.0% 139,492 1,533 1.1%

Page 4


OPERATING EXPENSE STATEMENTCURRENT MONTH MARCH 2019


ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT %

POWER COST 1. SPP Purchased Power $1,870,446 $765,763 $1,104,683 144.3% $515,207 $1,355,239 263.0% 2. Non-Owned Asset Power 5,010,440 4,994,407 16,033 0.3% 5,462,883 (452,443) -8.3% 3. Total Purchased Power 6,880,886 5,760,170 1,120,716 19.5% 5,978,090 902,796 15.1% 4. Produced Power 3,299,013 5,168,631 (1,869,618) -36.2% 4,444,219 (1,145,206) -25.8% 5. Total Power Cost 10,179,899 10,928,801 (748,902) -6.9% 10,422,309 (242,410) -2.3%

OPERATION & MAINTENANCE (O&M) 6. Energy Delivery 1,717,463 1,888,593 (171,130) -9.1% 1,555,879 161,584 10.4% 7. Transmission 320,259 627,365 (307,106) -49.0% 570,733 (250,474) -43.9% 8. Total O & M Expense 2,037,722 2,515,958 (478,236) -19.0% 2,126,612 (88,890) -4.2%

ADMINISTRATIVE & GENERAL (A&G) 9. Administration 237,601 233,380 4,221 1.8% 240,694 (3,093) -1.3%10. Communication & Corporate Records 138,983 251,772 (112,789) -44.8% 197,011 (58,028) -29.5%11. Corporate Operations 472,489 503,812 (31,323) -6.2% 438,788 33,701 7.7%12. Customer Services 785,662 816,818 (31,156) -3.8% 721,586 64,076 8.9%13. Financial Services 332,380 407,036 (74,656) -18.3% 307,281 25,099 8.2%14. Power Supply 342,980 340,905 2,075 0.6% 343,945 (965) -0.3%15. Technology Services 829,044 1,193,207 (364,163) -30.5% 918,404 (89,360) -9.7%16. Total A & G Expense 3,139,139 3,746,930 (607,791) -16.2% 3,167,709 (28,570) -0.9%

17. DEPRECIATION 4,356,321 4,385,118 (28,797) -0.7% 4,274,698 81,623 1.9%

18. TOTAL OPERATING EXPENSE $19,713,081 $21,576,807 ($1,863,726) -8.6% $19,991,328 ($278,247) -1.4%

Page 5


OPERATING EXPENSE STATEMENTYEAR-TO-DATE MARCH 2019


ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT %

POWER COST 1. SPP Purchased Power $3,729,205 $1,920,486 $1,808,719 94.2% $1,456,570 $2,272,635 156.0% 2. Non-Owned Asset Power 14,176,002 16,022,081 (1,846,079) -11.5% 16,488,600 (2,312,598) -14.0% 3. Total Purchased Power 17,905,207 17,942,567 (37,360) -0.2% 17,945,170 (39,963) -0.2% 4. Produced Power 12,684,632 16,755,994 (4,071,362) -24.3% 13,707,440 (1,022,808) -7.5% 5. Total Power Cost 30,589,839 34,698,561 (4,108,722) -11.8% 31,652,610 (1,062,771) -3.4%

OPERATION & MAINTENANCE (O&M) 6. Energy Delivery 4,989,665 5,420,396 (430,731) -7.9% 4,772,439 217,226 4.6% 7. Transmission 1,514,171 1,888,095 (373,924) -19.8% 1,758,112 (243,941) -13.9% 8. Total O & M Expense 6,503,836 7,308,491 (804,655) -11.0% 6,530,551 (26,715) -0.4%

ADMINISTRATIVE & GENERAL (A&G) 9. Administration 651,346 731,707 (80,361) -11.0% 657,781 (6,435) -1.0%10. Communication & Corporate Records 370,143 647,271 (277,128) -42.8% 548,434 (178,291) -32.5%11. Corporate Operations 2,106,209 1,891,427 214,782 11.4% 1,719,690 386,519 22.5%12. Customer Services 2,344,600 2,509,229 (164,629) -6.6% 2,349,702 (5,102) -0.2%13. Financial Services 931,641 1,054,908 (123,267) -11.7% 861,644 69,997 8.1%14. Power Supply 982,416 997,196 (14,780) -1.5% 1,005,442 (23,026) -2.3%15. Technology Services 3,026,869 3,770,300 (743,431) -19.7% 3,576,570 (549,701) -15.4%16. Total A & G Expense 10,413,224 11,602,038 (1,188,814) -10.2% 10,719,263 (306,039) -2.9%

17. DEPRECIATION 12,999,828 13,140,634 (140,806) -1.1% 12,810,842 188,986 1.5%

18. TOTAL OPERATING EXPENSE $60,506,727 $66,749,724 ($6,242,997) -9.4% $61,713,266 ($1,206,539) -2.0%

Page 6


BALANCE SHEETMARCH 2019

ASSETS & DEFERRED OUTFLOWS OF RESOURCES LIABILITIES AND NET POSITION END OF VARIANCE END OF VARIANCE

DESCRIPTION MONTH SINCE DESCRIPTION MONTH SINCEBALANCE JANUARY 1 BALANCE JANUARY 1

CURRENT ASSETS: CURRENT LIABILITIES:

1. Revenue Fund (including CDFUO) $109,341,316 ($14,158,597) OTHER LIABILITIES 2. Payments in Lieu of Taxes Fund $15,107,016 $2,891,319 1. Accounts Payable $16,031,313 ($10,011,712) 3. Rate Stabilization Fund 35,884,941 212,537 2. Accrued Payments in Lieu of Taxes 16,105,290 3,009,044 4. Bond Principal & Interest Funds 16,092,785 (1,259,126) 3. City Dividend for Utility Ownership Payable 635,337 (1,906,011) 5. Other Restricted/Designated Funds 3,159,853 327,818 4. Commercial Paper Notes 65,500,000 0 6. Restricted/Designated Funds Total 55,137,579 (718,771) 5. Accrued Liabilities 17,448,665 (135,037) 7. Total Current Asset Funds 179,585,911 (11,986,049) 6. MBPP-BNSF-STB Settlement 0 0 8. Receivables Less Uncollectible Allowance 19,429,287 (1,009,118) 7. Total Other Liabilities 115,720,605 (9,043,716) 9. Unbilled Revenue 15,000,010 78,795 CURRENT LIABILITIES - RESTRICTED ASSETS10. Accrued Interest Receivable 1,488,452 312,239 8. Current Portion of Long-Term Debt 22,750,000 011. Materials, Supplies & Fuel Inventory 14,764,360 952,042 9. Accrued Interest 2,546,246 (7,354,160) 12. Plant Operation Assets 13,201,156 1,407,592 10. Other Current Liabilities 1,575,743 96,274 13. Other Current Assets 3,470,188 629,653 11. Total Current Liabilities - Restricted Assets 26,871,989 (7,257,886) 14. Total Current Assets 246,939,364 (9,614,846) 12. Total Current Liabilities 142,592,594 (16,301,602)

NONCURRENT ASSETS: NONCURRENT LIABILITIES:15. Bond Reserve Funds 19,181,088 (54,223) 13. 2003 Bonds 1,150,000 016. Self-Funded Benefits Reserve Fund (IBNP) 589,454 1,492 14. 2012-A Bonds 217,020,000 017. Segregated Funds 650,489 0 15. 2013 Bonds 75,525,000 018. Restricted Fund Total 20,421,031 (52,731) 16. 2015-A Bonds 167,800,000 0 19. Unamortized Debt Expense 2,873,685 45,966 17. 2016 Bonds 80,095,000 0 20. Other Noncurrent Assets 3,657,191 244,282 18. 2018 Bonds 121,205,000 0 21. Total Noncurrent Assets 26,951,907 237,517 19. Total Revenue Bonds 662,795,000 0

20. Less Current Maturities 22,750,000 0CAPITAL ASSETS: 21. Less Unamortized Discounts/Premiums (65,544,763) 1,717,585 22. Utility Plant in Service 1,594,722,810 24,248,786 22. Note Purchase Agreement 1,500,000 0 23. Accumulated Depreciation & Amortization (787,981,901) (11,109,812) 23. Revolving Credit Agreement 0 0 24. Construction Work in Progress 128,906,889 (15,838,105) 24. Net Long Term Debt 707,089,763 (1,717,585)25. Total Capital Assets 935,647,798 (2,699,131) 25. Liabilities Payable from Segregated Funds 646,137 0

26. Other Noncurrent Liabilities 587,962 0 DEFERRED OUTFLOWS OF RESOURCES: 27. Total Liabilities 850,916,456 (18,019,187)26. Deferred Loss on Refunded Debt 12,990,191 (349,486)

NET POSITION:28. Net Investment in Capital Assets 173,875,634 (1,302,787)29. Restricted for Debt Service 13,577,421 6,040,81130. Restricted for Employee Health Insurance Claims 404,746 (47,091)31. Unrestricted 183,755,003 902,308 32. Total Net Position 371,612,804 5,593,241

27. TOTAL ASSETS & DEFERRED OUTFLOWS OF RESOURCES $1,222,529,260 ($12,425,946) 33. TOTAL LIABILITIES & NET POSITION $1,222,529,260 ($12,425,946)

Page 7

STATEMENT OF CASH FLOWSMARCH 2019

CURRENT MONTH YEAR-TO-DATECASH FLOW FROM OPERATING ACTIVITIES: 1. Received from Sales to Customers and Users $28,944,634 $81,735,610

2. Paid to Suppliers for Goods & Services (12,810,044) (55,966,879)

3. Paid to Employees for Services (2,844,815) (8,505,832) 4. Cash Flow from Operating Activities (a) 13,289,775 17,262,899

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: 5. Payments in Lieu of Taxes 0 (77,678) 6. City Dividend for Utility Ownership Payments 0 (3,812,022) 7. Other 0 0 8. Cash Flow from (used for) Non-capital Financing Activities 0 (3,889,700)

CASH FLOWS FROM INVESTING ACTIVITIES: 9. Net (Purchases) Sales of Investments (2,668,511) 11,612,10010. Interest Income 218,269 160,961 11. Cash Flow from (used for) Investing Activities (2,450,242) 11,773,061

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES:12. Acquisition and Construction of Capital Assets (3,615,451) (10,267,286)13. Salvage on Retirement of Plant 724 2,71314. Cost of Removal of Property Retired (775,118) (937,234)15. Debt Issuance Cost Paid 0 (157,191)16. Debt Premiums Collected 0 017. Net Capital Contributions 45,169 443,34218. Net Proceeds form Issuance of Long-Term Debt 0 019. Principal Payments on Long-Term Debt 0 020. Interest Payments on Long-Term Debt (14,625,141) (14,930,949)21. Cash Flow from (used for) Capital Financing Activities (18,969,817) (25,846,605)

22. Net Increase (Decrease) in Cash and Cash Equivalents (8,130,284) (700,345)23. Cash and Cash Equivalent Beginning of Period 35,341,355 27,911,416 24. Cash and Cash Equivalent End of Period (b) $27,211,071 $27,211,071

STATEMENT OF CASH FLOW FOOTNOTES(a) Reconciliation of operating income to cash flows from operating activities 1. Net Operating Revenue $5,879,448 $15,681,727 2. Noncash items included in operating income 4,450,637 13,276,842 3. Changes in Assets & Liabilities Increase/(Decrease) 2,959,690 (11,695,670) 4. Net cash flows from operating activities $13,289,775 $17,262,899

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

Page 8

DEBT SERVICE COVERAGEMARCH 2019

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

1. Total Operating Revenues $25,592,529 $23,299,389 $24,614,661 $76,188,454 $74,194,160 $75,805,044

2. Total Operating Expenses 19,713,081 21,576,807 19,991,328 60,506,727 66,749,724 61,713,266 3. Less Depreciation (4,356,321) (4,385,118) (4,274,698) (12,999,828) (13,140,634) (12,810,842) 4. Operating Expense Net of Depreciation 15,356,760 17,191,689 15,716,630 47,506,899 53,609,090 48,902,424

5. Net Operating Revenue for Debt Service 10,235,769 6,107,700 8,898,031 28,681,555 20,585,070 26,902,620 6. Interest Income (a) 356,354 313,926 148,091 417,038 974,578 392,315 7. Other Income 0 0 0 0 0 0 8. Rate Stabilization Fund 0 0 0 0 0 0

9. AVAILABLE FOR DEBT SERVICE 10,592,123 6,421,626 9,046,122 29,098,593 21,559,648 27,294,935

10. DEBT SERVICE (b) 4,324,651 4,324,650 3,643,885 12,973,952 12,973,950 10,931,655

11. DEBT SERVICE COVERAGE 2.45 1.48 2.48 2.24 1.66 2.50

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

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

INVESTMENT REPORTMARCH 2019

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

CASH - REVENUE FUND / WORKING FUND $132,857 $132,857

SHORT TERM FEDERAL INVESTMENT TRUST (STFIT) 13,022,591 13,022,591

REVENUE FUND Federated Treasury Obligations Fund * 2.040% 73,133 73,133 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 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 Societe Generale Commercial Paper 08/27/2018 05/24/2019 2.570% 2.621% 7,497,643 7,645,000 Bedford Row Funding Corp Commercial Paper 08/28/2018 05/24/2019 2.540% 2.589% 3,433,572 3,500,000 China Construction Bank Corp Commercial Paper 11/20/2018 05/24/2019 2.990% 3.037% 4,923,174 5,000,000 CNPC Finance HK Ltd. Commercial Paper 03/15/2019 06/06/2019 2.800% 2.818% 4,967,722 5,000,000 Bank of China (Hong Kong) Commercial Paper 09/21/2018 06/18/2019 2.680% 2.735% 5,761,812 5,880,000 Federal Home Loan Banks Bond 06/29/2018 06/21/2019 1.125% 2.350% 7,411,692 7,500,000 Agricultural Bank of China Ltd. Commercial Paper 10/10/2018 07/05/2019 2.800% 2.860% 7,461,165 7,620,000 U.S. Treasury Note 06/28/2018 07/15/2019 0.750% 2.345% 7,376,979 7,500,000 Banco del Estado de Chile Commercial Paper 10/22/2018 07/19/2019 2.800% 2.860% 7,499,140 7,660,000 Glencove Funding LLC Commercial Paper 11/02/2018 07/19/2019 2.800% 2.858% 5,105,047 5,210,000 Industrial & Com. Bank of China Ltd. Commercial Paper 03/11/2019 08/28/2019 2.670% 2.704% 7,045,040 7,135,000 Discount \ (Premium) 170,363 Total Revenue Fund 5,040,855 91,145,013 97,428,133

PILOT FUND Federated Treasury Obligations Fund * 2.040% 7,043 7,043 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 Glencove Funding LLC Commercial Paper 11/20/2018 04/18/2019 2.710% 2.741% 978,896 990,000 Canadian Imperial Holdings Inc Commercial Paper 08/20/2018 04/26/2019 2.440% 2.482% 1,445,191 1,470,000 Bayerische Landesbank, NY Commercial Paper 10/19/2018 04/26/2019 2.640% 2.677% 1,375,665 1,395,000 Credit Agricole CIB Commercial Paper 12/20/2018 04/26/2019 2.720% 2.746% 935,932 945,000 White Plains Capital Co. LLC Commercial Paper 01/18/2019 04/26/2019 2.870% 2.893% 1,771,054 1,785,000 White Plains Capital Co. LLC Commercial Paper 02/11/2019 04/26/2019 2.820% 2.836% 974,319 980,000 CNPC Finance HK Ltd. Commercial Paper 03/20/2019 04/26/2019 2.700% 2.708% 962,322 965,000 Bedford Row Funding Corp Commercial Paper 09/28/2018 04/29/2019 2.510% 2.548% 1,408,763 1,430,000 U.S. Treasury Note 02/20/2018 04/30/2019 1.625% 2.105% 1,083,869 1,090,000 Banco de Credito e Inversiones Miami Commercial Paper 02/20/2019 11/15/2019 2.743% 2.800% 1,008,969 1,030,000 Credit Agricole CIB Commercial Paper 03/20/2019 12/13/2019 2.580% 2.631% 1,029,833 1,050,000 Discount \ (Premium) 15,471 Total PILOT Fund $1,943,684 $13,163,332 $15,277,043(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 * 2.040% $41,932 $41,932 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 Home Loan Banks Bond 08/28/2018 08/21/2020 2.625% 2.630% 2,344,766 2,345,000 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 Federal Home Loan Mortgage Corporation Bond 02/07/2019 06/30/2021 1.500% 2.639% 1,409,847 1,420,000 Discount \ (Premium) 23,094 Total Bond Reserve Funds 41,932 19,139,156 19,201,932

BOND PRINCIPAL & INTEREST FUNDS Federated Treasury Obligations Fund * 2.040% 25,985 25,985 AGC Capital Inc. Commercial Paper 03/29/2019 05/07/2019 2.650% 2.658% 2,777,005 2,785,000 White Plains Capital Co. LLC Commercial Paper 03/29/2019 06/19/2019 2.650% 2.666% 1,883,562 1,895,000 JP Morgan Securities LLC Commercial Paper 10/31/2018 07/26/2019 2.900% 2.964% 1,878,549 1,920,000 International Bank for Reconstruction and Dev Note 09/28/2018 08/15/2019 0.875% 2.610% 1,866,569 1,895,000 Glencove Funding LLC Commercial Paper 11/30/2018 08/26/2019 2.950% 3.016% 1,897,236 1,940,000 Chesham Finance Ltd. Commercial Paper 01/31/2019 08/28/2019 2.750% 2.795% 1,894,267 1,925,000 Banco de Credito e Inversiones Miami Commercial Paper 02/26/2019 08/28/2019 2.730% 2.768% 1,903,216 1,930,000 Industrial & Com. Bank of China Ltd. Commercial Paper 03/11/2019 08/28/2019 2.670% 2.704% 1,950,099 1,975,000 Discount \ (Premium) 16,297 Total Bond Principal & Interest Funds 4,686,552 11,406,233 16,290,985

RATE STABILIZATION FUND Federated Treasury Obligations Fund * 2.040% 3,089 3,089 White Plains Capital Co. LLC Commercial Paper 02/07/2019 04/26/2019 2.800% 2.817% 1,381,567 1,390,000 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 International Bank of Reconstruction and Dev Bond 03/18/2019 10/16/2020 300.500% 2.550% 6,702,559 6,765,000 Discount \ (Premium) 45,862 Total Rate Stabilization Fund $1,384,656 $34,500,285 $35,980,089(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 * 2.040% $597,161 $597,161 Toyota Motor Credit Corp Commercial Paper 2.589% 981,232 $1,000,000 Discount \ (Premium) Total Self-Funded Health & Dental Claims Fund 597,161 981,232 1,597,161

SELF-FUNDED HEALTH & DENTAL RESERVE FUND (INCURRED BUT NOT PRESENTED) Federated Treasury Obligations Fund * 2.040% 6,060 6,060 Credit Suisse NY Commercial Paper 01/31/2019 10/25/2019 2.630% 2.682% 583,394 595,000 Discount \ (Premium) Total Self-Funded Health & Dental Reserve Fund 6,060 583,394 601,060

SEGREGATED ACCOUNT Federated Treasury Obligations Fund * 2.040% 354,723 354,723 U.S. Treasury Bill 06/29/2018 06/20/2019 2.231% 2.300% 1,271,321 1,300,000 Federal National Mortgage Association Bond 12/17/2018 10/17/2019 1.100% 2.701% 197,378 200,000 U.S. Treasury Note 09/17/2018 12/31/2019 1.875% 2.661% 405,949 410,000 Discount \ (Premium) 2,578 Total Segregated Account 354,723 1,877,226 2,264,723

TOTAL $27,211,071 $172,795,871 $201,796,574(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 Division2019 March Monthly Report

Jason FortikApril 19, 2019

LES.com

Monthly Actual vs. Budget

2

$7.81

-$0.50

-$4.69

$6.06

-$1.37

$3.30

$5.01

$8.30

-$0.31

-$2.73

$2.75

-$1.56

$5.17

$4.99

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

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

Daily Temperature Range

3

Monthly Low -9°F

Monthly High 76°F

-10

0

10

20

30

40

50

60

70

80

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

eW

ed Thu Fri

Sat

Sun

Degr

ees

in F

ahre

nhei

t

Daily Range Normal Low Normal High

LES.com

Loads

4

0

100

200

300

400

500

600

700M

W

Actual = 572MW

Forecasted = 493 MW

LES.com

Customer Energy Consumption

5

263.5284.1

0

50

100

150

200

250

300

350

2019 Budget 2019 Actual

GW

H

LES.com

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

Resource Energy

7

0

2,000

4,000

6,000

8,000

10,000

12,000M

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

Peak Load Day – March 4, 2019

8

0

100

200

300

400

500

600

700

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 = 572 MW

LES.com 9

Coal 48%

Oil & Gas4%

Renewable48%

Energy Utilized by SPP IM -(Fuel Type)

Coal 33%

Oil & Gas35%

Renewable32%

Energy Offered to SPP IM -Approximate (Fuel Type)

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

LES.com

Energy Utilized by SPP IM

10

WAPA (20 GWh)7%

Gentleman Station (79 GWh)30%

Laramie Station (2 GWh)

1%

Walter Scott (47 GWh)18%

Terry Bundy (9 GWh)3%

Rokeby (2 GWh)1%

Wind PSA's (9 GWh)3%

Landfill Gas (3 GWh)1%

Wind PPA's (96 GWh)36%

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

minutes of lincoln electric system administrative … · kelley porter, brooke rogers, emily...

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