Background and
Mission of the Power Authority of the State of New York
The
mission of the Power Authority of the State of New York (“NYPA” or “Authority”)
is to provide clean, low-cost and reliable energy consistent with its
commitment to the environment and safety, while promoting economic development
and job development, energy efficiency, renewables
and innovation, for the benefit of its customers and all New Yorkers. The
Authority's financial performance goal is to have the resources necessary to
achieve its mission, to maximize opportunities to serve its customers better,
and to preserve its strong credit rating.
The
Authority generates, transmits and sells electric power and energy, principally
at wholesale. The Authority’s primary customers are municipal and
investor-owned utilities, rural electric cooperatives, high load factor
industries and other businesses located throughout New York State, various
public corporations located within the metropolitan area of New York City
(“SENY governmental customers”), and certain out-of-state customers.
To
provide electric service, the Authority owns and operates five major generating
facilities, eleven small gas-fired electric generating facilities, and five
small hydroelectric facilities in addition to a number of transmission lines,
including major 765-kV and 345-kV transmission facilities. The Authority’s five major generating
facilities consist of two large hydroelectric facilities (“Niagara” and “St.
Lawrence-FDR”), a large pumped-storage hydroelectric facility (“Blenheim-Gilboa”), the combined cycle electric generating plant
located in Queens, New York (the “500-MW plant”) and the Richard M. Flynn
combined cycle plant located on Long Island (“Flynn”).
To
achieve its goal of promoting energy efficiency, NYPA implements its energy
services programs for the benefit of its SENY governmental customers and
generally for various other public entities throughout the State. Under these
programs, the Authority finances the installation of energy saving measures and
equipment, which are owned by the customers and public entities upon their
installation and which focus primarily on the reduction of the demand for
electricity. These programs generally provide funding for, among other things,
high efficiency lighting technology conversions, high efficiency heating,
ventilating and air conditioning systems and controls, boiler conversions,
replacement of inefficient refrigerators with energy efficient units in public
housing projects, distributed generation technologies and clean energy
technologies, and installation of non-electric energy saving measures.
(a) NYPA’s Relationship with the New York State
Government
The Power Authority of the
State of New York (the “Authority” or “NYPA”) is a corporate municipal
instrumentality and political subdivision of the State of New York (the
“State”) created in 1931 by Title 1 of Article 5 of the Public Authorities Law,
Chapter 43-A of the Consolidated Laws of the State, as amended (the “Act”), to
help provide a continuous and adequate supply of dependable electric power and
energy to the people of the State.
The
Authority’s operations are overseen by a Board of Trustees. NYPA’s Trustees are appointed by the Governor
of the State, with the advice and consent of the State Senate. The Authority is a fiscally independent
public corporation that does not receive State funds or tax revenues or
credits. NYPA generally finances
construction of new projects through a combination of construction funds,
internally generated funds and the sale of bonds and notes to investors and
pays related debt service with revenues from the generation and transmission of
electricity. Income of the Authority and
properties acquired by it for its projects are exempt from taxation.
(b) Budget Process
The following is an outline of the budget process and
the four-year financial plan for 2011-2014:
·
During August –
October 2010, develop forecasts of electric prices (both energy and capacity)
and fuel expenses; NYPA customer power and energy use; NYPA customer rates;
generation levels at NYPA power projects reflecting scheduled outages; and
purchased energy & power requirements and sources.
·
During August – September
2010, developed preliminary operations & maintenance and capital expense
targets.
·
November 2, 2010 –
post preliminary 2011 budget and 2011-2014 financial plan for public inspection
at five convenient locations and on NYPA’s internet website.
·
During November
2010, finalize operations & maintenance expenses and capital costs
estimates.
·
During November
2010, integrate above data to produce final 2011 budget and 2011-2014 financial
plan.
·
December 13, 2010,
seek authorization of NYPA’s Trustees to approve the budget and financial plan;
submit the information to the State Comptroller’s Office; and make the document
available for public inspection and on NYPA’s internet website.
|
NYPA’s
Four-Year Projected Income Statements |
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(in
Millions) |
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|
|
|
2011 |
2012 |
2013 |
2014 |
|
Operating Income: |
|
|
|
|
|
Customer Revenues |
$2,068.7
|
$2,268.5
|
$2,332.6
|
$2,418.0
|
|
NYISO Market Revenues |
$620.9 |
$721.9 |
$836.7 |
$855.7 |
|
Total Operating Income |
$2,689.6
|
$2,990.4
|
$3,169.3
|
$3,273.7
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
Purchased Power |
$923.1 |
$967.3 |
$1,010.0
|
$1,063.5
|
|
Fuel oil and gas |
$295.6 |
$345.2 |
$414.6 |
$426.4 |
|
Wheeling Expenses |
$543.4 |
$599.5 |
$614.9 |
$619.8 |
|
O&M Expenses |
$327.1 |
$352.1 |
$360.3 |
$366.8 |
|
Other Expenses |
$135.5 |
$129.9 |
$130.9 |
$136.6 |
|
Depreciation and
Amortization |
$194.9 |
$218.9 |
$219.5 |
$220.6 |
|
Allocation to Capital |
($10.9) |
($12.4) |
($11.8) |
($14.9) |
|
Total Operating Expenses |
$2,408.7
|
$2,600.5
|
$2,738.3
|
$2,818.6
|
|
|
|
|
|
|
|
NET OPERATING INCOME |
$280.9 |
$389.8 |
$431.0 |
$455.1 |
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|
|
|
|
|
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Other Income: |
|
|
|
|
|
Investment Income |
$32.4 |
$46.8 |
$66.0 |
$88.3 |
|
Other Income |
$88.4 |
$87.5 |
$76.6 |
$75.4 |
|
Total Other Income |
$120.9 |
$134.4 |
$142.5 |
$163.6 |
|
|
|
|
|
|
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Non-Operating Expenses: |
|
|
|
|
|
Interest Expense |
$157.5 |
$208.9 |
$211.5 |
$221.5 |
|
Contributions
to State |
$65.0 |
$65.0 |
$65.0 |
$65.0 |
|
Total Non-Operating Expenses |
$222.5 |
$273.9 |
$276.5 |
$286.5 |
|
|
|
|
|
|
|
NET INCOME |
$179.3 |
$250.3 |
$297.0 |
$332.2 |
(in Millions)
(in Millions)
* Reflects NYPA’s Base O&M Expenses
($312.3 million) plus the O&M component of the Astoria Energy facility lease
payment ($14.9 million) less the Allocation to Capital ($10.9 million).
NYPA’s Four-Year Statement of Cash Flows
|
|
2011 |
2012 |
2013 |
2014 |
|
Cash flows from Operating
Activities: |
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|
|
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|
Received from customers for the sale of
power, transmission and wheeling |
$2,659.3
|
$2,928.9
|
$3,110.7
|
$3,218.4
|
|
Disbursements for: |
|
|
|
|
|
Purchased Power |
($922.9) |
($967.3) |
($1,010.0) |
($1,063.5) |
|
Operations
and Maintenance |
($311.1) |
($333.5) |
($342.1) |
($345.3) |
|
Fuel oil and gas |
($295.6) |
($345.2) |
($414.6) |
($426.4) |
|
Wheeling of Power by other utilities |
($543.4) |
($599.5) |
($614.9) |
($619.8) |
|
Other Expenses |
($168.4) |
($239.9) |
($266.7) |
($228.9) |
|
Spent Fuel Liability Expense |
($1.2) |
($3.4) |
($5.7) |
($8.1) |
|
Total Disbursements |
($2,242.6) |
($2,488.8) |
($2,654.0) |
($2,691.9) |
|
|
|
|
|
|
|
Net
cash provided by operating activities |
$416.7
|
$440.1
|
$456.7
|
$526.4
|
|
Cash flows from capital and
related financing activities: |
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|
Earnings received on capital fund investments |
$4.3 |
$1.4 |
$1.4 |
$1.3 |
|
Issuance
of commercial paper |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
|
Issuance of General Purpose Bonds |
$0.0 |
$0.0 |
$302.0
|
$0.0 |
|
Repayment of Notes |
($8.1) |
($8.7) |
($9.4) |
($10.2) |
|
Retirement of Bonds |
($41.3) |
($43.7) |
($49.0) |
($52.5) |
|
Repayment of Commercial Paper |
($45.0) |
($37.3) |
($36.5) |
($31.2) |
|
Gross additions to capital assets |
($179.0) |
($194.9) |
($191.1) |
($226.3) |
|
Interest paid, net |
($77.0) |
($74.8) |
($74.9) |
($89.5) |
|
R&D Expenses |
($6.1) |
($6.3) |
($6.4) |
($6.5) |
|
Change in Construction Fund |
$64.7 |
$55.1 |
($240.1) |
$99.6 |
|
Net
cash used in capital and related financing activities |
($287.6) |
($309.2) |
($304.0) |
($315.3) |
|
Cash flows from noncapital -
related financing activities: |
||||
|
Energy conservation program payments received from participants |
$178.2
|
$218.4
|
$166.1
|
$219.3
|
|
Energy conservation program costs |
($150.8) |
($200.1) |
($200.1) |
($250.1) |
|
Issuance of commercial paper |
$142.9
|
$188.1
|
$190.7
|
$241.3
|
|
Repayment of commercial paper |
($177.1) |
($217.8) |
($165.7) |
($218.9) |
|
Interest paid on commercial paper |
($4.7) |
($7.1) |
($9.9) |
($13.9) |
|
Other
Postemployment Benefits (OPEB) funding |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
|
Contributions to New York State |
($65.0) |
($65.0) |
($65.0) |
($65.0) |
|
Temporary asset transfer to New York State |
$0.0 |
$0.0 |
$0.0 |
$103.0
|
|
Entergy
Value sharing agreement |
$72.0 |
$72.0 |
$72.0 |
$72.0 |
|
Entergy notes receivable |
$30.0 |
$30.0 |
$20.0 |
$20.0 |
|
Net
cash used in noncapital - related financing activities |
$25.5 |
$18.4 |
$8.0 |
$107.8
|
|
Cash flows from investing
activities: |
|
|||
|
Earnings received on investments |
$28.5 |
$76.1 |
$62.5 |
$85.8 |
|
Purchase of investment securities |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
|
Sale of investment securities |
$0.0 |
$0.0 |
$0.0 |
$0.0 |
|
Net
cash provided by (used in) investing activities |
$28.5 |
$76.1 |
$62.5 |
$85.8 |
|
Net
increase (decrease) in cash |
$183.2 |
$225.4 |
$223.3 |
$404.7 |
(a) Budget Assumptions
NYISO Revenue and Expenses
The Authority schedules power for its customers and
buys and sells energy in an electricity market operated by the NYISO. The
majority of NYPA’s operating expenses are due to various NYISO purchased power
charges in combination with generation related fuel expenses. A significant amount of the Authority’s
revenues result from sales of the Authority’s generation into the NYISO market
for which the energy revenues are projected based on available forward price
curves while the capacity revenues are estimated using the NYISO demand curve
formula.
Customer and Project Revenue
The
customers served by the Authority and the rates paid by such customers vary
with the NYPA facilities designated to serve such loads. These customers are
served under contracts and tariffs approved by the Trustees.
St. Lawrence-FDR and Niagara Customers. Power and
energy from the St. Lawrence-FDR and Niagara hydroelectric facilities are sold
to investor-owned electric utilities, municipal electric systems, rural
electric cooperatives, industrial customers, certain public bodies, and
out-of-state public customers. The
charges for firm power and associated energy sold by the Authority to the
investor-owned utility companies for the benefit of rural and domestic
customers, the municipal electric systems and rural electric cooperatives in
New York State, two public transportation agencies, and seven out-of-state
public customers have been established on the basis of the cost to serve these
loads. These customers represent approximately 1,456
mw or 53% of the plants’ firm capacity.
In March
2009, the Authority’s Trustees approved the deferral for recovery in the future
of a proposed hydropower rate increase for these customers that was scheduled
to go into effect on May 1, 2009. In
August 2010, the Authority announced that these rates would remain unchanged at
least through the end of 2010, at which time the rate levels would be
re-evaluated. The deferral amounts to
approximately $18.5 million through the end of 2010. The 2011-2014 financial plan assumes rate
changes annually beginning June 1, 2011 sufficient to recover the cost of
producing service to these customers and to recover the deferral amount over a
four year period.
Niagara’s
expansion and replacement power industrial customers and St. Lawrence-FDR’s
industrial customers aggregate to as much as 1,185 mw or 43% of the firm capacity of the
plants. The rates are subject to annual
adjustment based on the average of three contractually agreed upon economic
indices reflecting changes in industrial energy prices. In March 2009, the Authority’s Trustees
withdrew a proposed hydropower rate increase for the Authority’s Replacement
Power, Expansion Power, and certain other industrial customers that was scheduled to go into effect on May 1, 2009. In August 2010, the Authority announced that
these rates would remain unchanged through at least the end of 2010, at which time the rate levels would
be re-evaluated. This rate freeze
is assumed to continue until May 1, 2011.
For the remaining years in the four year plan, these rates are assumed
to adjust annually in accordance with the contracts.
In
August 2010, new legislation established a Western New York Economic
Development Fund, which is to be funded from net earnings from the Authority’s
sale of unallocated, relinquished, and withdrawn Expansion Power and
Replacement Power into the wholesale market.
Net earnings are defined as any excess revenues earned from such power
allocated to the wholesale market over the revenues that would have been
received had the power been sold at the Expansion Power and Replacement Power
rates. Proceeds from the fund will be
used to support eligible projects undertaken within a 30-mile radius of the
Niagara plant that qualify under applicable criteria. The Authority will administer this new
program with the assistance of a group of public and private entities known as
the Western New York Advisory Group.
Payments from the Power Authority to the fund have been incorporated
into this four-year plan beginning in September 2010 and are estimated to range
between $2 million and $10 million per year during the plan period.
SENY Governmental Customers. Capacity from the Authority’s 500 mw plant
and the five small hydroelectric plants, together with capacity and energy
purchased by the Authority in the NYISO markets, are sold to various
municipalities, school districts and public agencies in New York City and
Westchester County. Sales into the NYISO of energy generated by Authority
resources at the 500-MW plant and the small hydro projects offset the cost of
the energy purchased. A set amount of capacity from the Blenheim-Gilboa project is also dedicated to serving a segment of
this customer class. It is assumed that
the Astoria Energy II plant under construction and which NYPA has executed a
power purchase agreement will enter into commercial operation in June 2011 and
the Kensico small hydro facility will be
decommissioned by December 31, 2013.
In 2005,
the Authority and its major New York City governmental customers entered into
long-term supplemental electricity supply agreements (“2005 LTA”). Under the 2005 LTA, the NYC governmental
customers agreed to purchase their electricity from the Authority through
December 31, 2017, with the NYC governmental customers having the right to
terminate service from the Authority at any time on three years’ notice and,
under certain limited conditions, on one year’s notice, provided that they
compensate the Authority for any above-market costs associated with certain of
the resources used to supply the NYC governmental customers.
Under
the 2005 LTA, the Authority modifies rates annually through a formal rate
proceeding if there is a change in fixed costs to serve the New York City
governmental customers. Generally,
changes in variable costs, which include fuel and purchased power, are captured
through annual contractual pricing adjustment mechanisms. The NYC governmental customers have committed
to pay for any supply secured for them by the Authority which results from a
collaborative effort.
In
2007, the Authority entered into a new supplemental electricity supply
agreements with 104 governmental customers in Westchester County. Under these agreements, the Westchester
governmental customers remain full requirements customers of NYPA through at
least December 31, 2011. The Westchester County customers can terminate the
contract upon one year’s notice effective no sooner than January 1 following
such notice. The Authority may modify the rates charged the customer pursuant
to a specified procedure; an energy charge adjustment mechanism is applicable;
the customer is committed to pay for any supply resources secured for it by the
Authority under a collaborative process; and NYPA will continue to make
available financing for energy efficiency projects and initiatives, with costs
thereof to be recovered from the customer.
For purposes of the four-year financial plan, it is assumed that the New
York City and Westchester governmental customers will continue to be served and
rates will be set on the basis of the cost to serve these loads.
Market Supply Power Customers. The Authority administers an array of power
programs for economic development that supply power to businesses and
not-for-profit institutions in New York State. Currently more than 300,000 jobs
across the State are linked to these power programs. For a number of these programs, such as Power
for Jobs, Economic Development Power, High Load Factor Power, and Municipal
Distribution Agency Power, the Authority has no physical assets to supply power
and energy to these customers and NYPA must buy these products in the NYISO
market or negotiate bilateral arrangements with other power suppliers. The Authority, as authorized by legislation,
provides electricity savings reimbursements to certain of the Power for Jobs
customers, which is calculated as the difference between the current cost of
electricity to such customer and the cost of electricity under a prior Power
for Jobs contract period. Customers
under the Economic Development Power, High Load Factor Power, and Municipal
Distribution Agency Power programs are eligible for Energy Cost Savings
Benefits discounts which result from the net earnings of the sale into the
wholesale market of certain amounts of hydroelectric power as authorized by
law, which, along with other funds of the Authority as deemed feasible and
advisable by the Authority’s Trustees, may be used for such discounts.
Many
of the programs or the individual contracts of the business customers served
under these programs are set to expire during the financial plan
timeframe. However, the Authority
assumes that the State Legislature will continue to extend such programs
throughout the 2011-2014 forecast period. Accordingly, the business customers and the
not-for-profit institutions are modeled as continuing to be served.
Blenheim-Gilboa Customers. The Authority has a contract for the sale of
50 MW of firm capacity from the Blenheim-Gilboa plant
to the Long Island Power Authority (“LIPA”) and provides another 250 MW to the
Authority’s New York City governmental customers, the rates for which are reset
periodically on the basis of cost, with the remainder of the plant’s capacity
used to meet the requirements of some of the Authority’s other business and
governmental customers and to provide services in the NYISO market at the
projected NYISO capacity rate.
Small Clean Power Plants (“SCPPs”). To meet capacity deficiencies and ongoing
local requirements in the New York City metropolitan area, which could have
also adversely affected the statewide electric pool, the Authority placed in
operation, in the summer of 2001, eleven 44-MW natural-gas-fueled SCPPs at
various sites in New York City and one site in the service territory of
LIPA.
For
the 2011-2014 financial plan, it is assumed the installed capacity of the SCPPs
is used by the Authority to meet its customers’ NYISO-mandated installed
capacity needs or, if not needed for that purpose, is subject to sale to other
users via bilateral arrangements or by sale into the NYISO capacity
auction. NYPA sells the energy produced
by the SCPPs into the NYISO energy market.
Flynn. The Flynn
Project is a combined-cycle facility with a nameplate rating of 164 MW. The
Authority is supplying the full output of the Project to LIPA pursuant to a
capacity supply agreement between the Authority and LIPA, which commenced in
1994 and had an initial term of 20 years.
Amendment No. 7, effective as of January 1, 2009, sets forth pricing
terms subject to expiration in 2014 should the customer elect to initiate the
termination clause by 2012. Otherwise,
this contract may extend to 2020.
Transmission Projects. The Authority owns approximately 1,400 circuit miles
of high voltage transmission lines, the major lines being the 765-kV
Massena-Marcy line, the 345-kV Marcy-South line, the 345-kV Niagara-to-Edic transmission line, and the 345-kV Long Island Sound
Cable.
In
an Order issued January 27, 1999, FERC approved the use of the Authority’s
present transmission system revenue requirement in developing the rates for
service under the NYISO tariff. FERC
also approved, among other things, the imposition of the NYPA Transmission
Adjustment Charge (“NTAC”) and the NYPA Transmission Service Charges (“TSC”)
which are the tariff elements established to effect full recovery of the
Authority’s annual transmission revenue requirement.
With
the implementation of the NYISO arrangement in November 1999, all transmission
service over the Authority’s facilities is either pursuant to the NYISO tariffs
or pre-existing Authority contracts, with NYPA realizing its annual revenue
requirement via the NTAC, TSC or through existing customer contracts. For purposes of the four-year financial plan,
it is assumed that the Authority rates are set to at its annual revenue
requirement of $165 million in 2011, with its annual revenue requirement
increasing for the first time since 1999 to $190 million for the years 2012 –
2014.
Purchased Power Expenses
Capacity, energy and NYISO ancillary service purchases
made on behalf of customers (except for those made through previously approved
purchased power agreements) are assumed to be transacted at the market clearing
price in the wholesale market. For
purposes of developing the financial plan, projected energy rates are based on
available forward price curves while the capacity
rates are estimated using the NYISO demand curve formulas.
Fuel Expenses
Fossil-fuel purchases in the plan for are based on
expected net generation levels determined through the use of an economic
dispatch model for the Authority’s plants and on available forward price curves
for the fuel. Fuel expenses also include
the costs associated with emission credit requirements under the Regional
Greenhouse Gas Initiative (‘RGGI’). The
RGGI requires the Authority to buy emission credits for its fossil-fuel plants.
The projections for RGGI costs are based on historical emission rates and
forecasted consumption of natural gas and oil with such costs recovered either
through specific customer contract pass-through provisions or from the
wholesale market.
Wheeling Expenses
Wheeling (i.e., the transmission and/or delivery of
power and energy to customers over the lines of a third party) expenses are
based contractual and/or tariff rates of the service provider and are recovered
through pass-through provisions in customer contracts.
Investment and Other Income
Investment Income. Investment of
the Authority’s funds is administered in accordance with the applicable
provisions of the Bond Resolution and with the Authority’s investment
guidelines. These guidelines comply with
the New York State Comptroller’s investment guidelines for public authorities
and were adopted pursuant to Section 2925 of the New York Public Authorities
Law. It is assumed that the Authority’s
investment portfolio will earn an average of 2.95% over the four-year forecast
period.
The Authority’s investments are restricted to (a)
collateralized certificates of deposit, (b) direct obligations of or
obligations guaranteed by the United States of America or the State of New
York, (c) obligations issued or guaranteed by certain specified federal
agencies and any agency controlled by or supervised by and acting as an
instrumentality of the United States government, and (d) obligations of any
state or any political subdivision thereof or any agency, instrumentality or
local government unit of any such state or political subdivision which is rated
in any of the three highest long-term rating categories, or the highest
short-term rating category, by nationally recognized rating agencies. The Authority’s investments in the debt securities
of Federal National Mortgage Association and Federal Home Loan Bank, Federal
Farm Credit Bank and Federal Home Loan Mortgage Corp. were rated Aaa by Moody’s Investors Services
and AAA by Standard & Poor’s and Fitch Ratings. All
of the Authority’s investments in U.S. debt instruments are issued or
explicitly guaranteed by the U.S. Government.
Other Income. On November 21,
2000 (“Closing Date”), the Authority sold its nuclear plants (Indian Point 3
and James A. FitzPatrick Projects) to two
subsidiaries of the Entergy Corporation for cash and non-interest bearing notes
totaling $967 million, maturing over a 15-year period. The present value of these payments recorded
on the Closing Date, utilizing a discount rate of 7.5%, was $680 million. On an accrual basis the Authority expects to
recognize interest and other income of $15.9 million in 2011, $14.9 million in
2012, $3.8 million in 2013 and $2.6 million in 2014. On a cash basis the Authority projects to
receive $30 million payments in each year from 2010 through 2012 and $20
million in 2013 and 2014. In addition,
the Authority entered into two “value sharing agreements” (“VSAs”) with the
Entergy subsidiaries whereby the Authority is entitled to receive annual
payments up to a maximum of $72 million.
For purposes of the 2011-2014 financial plan,
it has been assumed that the maximum payment of $72 million will be received in
each year.
Operations and Maintenance Expenses
NYPA’s
O&M plan for 2011 is flat as compared to the 2010 O&M budget, excluding
the O&M component of the Astoria Energy facility lease payment. Exclusive of planned maintenance outage costs
and non-recurring spending, the anticipated budgets for 2012 - 2014 include
moderate increases.
|
Operations
and Maintenance Forecast by Cost Element |
|||||
|
(in
Millions) |
|||||
|
2011 |
2012 |
2013 |
2014 |
||
|
Payroll |
|||||
|
Regular Pay |
$ 144.3 |
$ 147.5 |
$ 149.7 |
$ 150.0 |
|
|
Overtime |
$ 7.7 |
$ 8.0 |
$ 8.2 |
$ 8.4 |
|
|
Other Payroll |
$ 2.1 |
$ 2.1 |
$ 2.2 |
$ 2.3 |
|
|
Total Payroll |
$ 154.1 |
$ 157.6 |
$ 160.1 |
$ 160.7 |
|
|
Benefits |
|||||
|
Employee Benefits |
$ 34.8 |
$ 35.9 |
$ 37.5 |
$ 39.1 |
|
|
Pension |
$ 21.9 |
$ 27.0 |
$ 27.0 |
$ 27.0 |
|
|
FICA |
$ 11.3 |
$ 11.6 |
$ 12.0 |
$ 12.4 |
|
|
Total Benefits |
$ 68.0 |
$ 74.5 |
$ 76.4 |
$ 78.5 |
|
|
Materials/Supplies |
$ 16.4 |
$ 16.9 |
$ 17.4 |
$ 18.0 |
|
|
Fees |
$ 8.4 |
$ 8.4 |
$ 8.4 |
$ 8.4 |
|
|
Office & Station |
$ 13.3 |
$ 13.3 |
$ 13.3 |
$ 13.3 |
|
|
Maintenance Repair & Service Contracts |
$ 80.3 |
$ 83.3 |
$ 83.5 |
$ 83.0 |
|
|
Consultants |
$ 12.6 |
$ 12.6 |
$ 12.6 |
$ 12.6 |
|
|
Charges to: |
|||||
|
Outside Agencies |
$ (5.2) |
$ (5.3) |
$ (5.5) |
$ (5.7) |
|
|
Capital Programs |
$ (41.8) |
$ (41.4) |
$ (39.1) |
$ (36.0) |
|
|
Total Charges |
$ (47.0) |
$ (46.7) |
$ (44.6) |
$ (41.7) |
|
|
Research & Development |
$ 6.1 |
$ 6.3 |
$ 6.5 |
$ 6.7 |
|
|
Subtotal |
$ 312.3 |
$ 326.2 |
$ 333.7 |
$ 339.5 |
|
|
Astoria Energy II |
$ 14.9 |
$ 25.9 |
$ 26.6 |
$ 27.3 |
|
|
TOTAL NYPA O&M |
$ 327.1 |
$ 352.1 |
$ 360.3 |
$ 366.8 |
|
Depreciation and Amortization Expenses
Depreciation
of capital assets is generally provided on a straight-line basis over the
estimated lives of the various classes of capital assets. The related depreciation provisions at
December 31, 2009 expressed as a percentage of average depreciable capital
assets was 2.6%.
Other Expenses
The
Other Expenses category largely reflects various accruals (e.g., Other
Post-Employment Benefit prior service obligations) and other miscellaneous
expenses for which Trustee authorization is sought on a case-by-case basis
(e.g., Power for Jobs Rebates, Industrial Incentive Awards Program costs,
etc.).
(d) Self
– Assessment of Budgetary Risks
Regulatory Risks
In
2005, the U.S. Fish and Wildlife Service (‘‘FWS’’) initiated a status review
under the Endangered Species Act (16 U.S.C. 1531 et seq.) to determine if
listing the American eel as threatened or endangered is warranted. American
eels are a fish species that migrate between freshwater and the ocean, and
their wide range includes the Atlantic seaboard of the United States and Canada
and the Great Lakes’ drainages. In
findings issued February 2, 2007, the FWS determined that such a listing is not
warranted. In 2010, the FWS was again
petitioned to list the American eel and a preliminary determination concerning
whether to conduct another status review is pending before the FWS. In the event the FWS were to determine in the
future to list the American eel as threatened or endangered, such a
determination could potentially result in significant additional costs and
operational restrictions on hydroelectric generating facilities located within
the range of the species, including the Authority’s St. Lawrence-FDR Project.
The
Regional Greenhouse Gas Initiative (“RGGI”) is a cooperative effort by
Northeastern and Mid-Atlantic states to reduce carbon dioxide emissions by 10%
by 2018. Central to this initiative is
the implementation of a multi-state cap-and-trade program with a market-based
emissions trading system. The program
requires electricity generators to hold carbon dioxide allowances in a
compliance account in a quantity that matches their total emissions of carbon
dioxide for the compliance period. The
Authority’s Flynn, SCPPs, and 500-MW plant are subject to the RGGI
requirements. The Astoria Energy II
plant, from which NYPA has contracted to purchase power, is scheduled to become
operational in mid-2011 and will also be subject to the RGGI requirements. NYPA has participated in program auctions
commencing in September 2008 and expects to recover its RGGI costs through its
power sales revenues. NYPA is monitoring
potential federal programs that are under discussion and debate for their
potential impact on RGGI in the future.
Comprehensive
energy legislation passed in the U.S. House of Representatives on June 26, 2009
(Waxman-Markey) that would, among other things: (a) establish federal
cap-and-trade requirements applicable to greenhouse gas emissions, including
emissions from fossil fuel power plants, commencing in 2012 that are designed
to gradually reduce such emissions through 2050 and (b) establish a combined
efficiency and renewable electricity standard that would require retail
electricity suppliers beginning in 2012 to acquire prescribed amounts of
renewable energy certificates, which may be substituted for in part by
quantified electricity savings, with such prescribed amounts gradually
increasing over time and with the standard sun-setting in 2040. Both of these programs would be applicable to
the Authority. It is uncertain at this
time whether Waxman-Markey or similar legislation will be enacted into law in
the future and what the impact of such legislation would be on the Authority.
The
Power Authority’s Board of Trustees has in general broad rate setting authority
for its power sales agreements with customers.
With respect to its transmission facilities, however, the Authority
adopted an open access transmission tariff, which has been filed with the
Federal Energy Regulatory Commission (“FERC”) as part of the NYISO’s Open
Access Transmission Tariff. In an Order
issued January 27, 1999, FERC approved the use of the Authority’s present
transmission system revenue requirement in developing the rates for service
under the NYISO tariff and declined to set the revenue requirement for hearing.
Such action does not, however, foreclose further review by FERC of any
modifications of the Authority’s transmission system revenue requirement.
Legislative and
Political Risks
A series of
legislative enactments call for the Authority to subsidize business customers
and the State’s general fund.
Legislation enacted into law, as part of the 2000-2001 State budget, as
amended in subsequent years, has authorized the Authority, “as deemed feasible
and advisable by the trustees”, to make a series of “voluntary contributions”
into the State treasury in connection with the Power for Jobs Program and for
other purposes as well. Beginning
December 2002 through the end of State Fiscal Year 2009-2010, the Authority has
made voluntary contributions to the State of $461.5 million in connection with
the Power for Jobs Program and an additional $237 million unrelated to the
Power for Jobs Program. Furthermore, by
legislation enacted in May 2010, the Authority was authorized to make an
additional voluntary contribution of $65 million unrelated to the Power for
Jobs Program for State Fiscal Year 2010-2011, of which $40 million was paid in
August 2010 for a cumulative total of $277 million of such payments. The remaining $25 million is expected to be
considered for payment in the first quarter of 2011. In addition, the Authority has approved Power
for Jobs reimbursement payments of $203 million for the years 2005-2009 and
expects such payments will not exceed $47 million for 2010. For planning purposes, the 2011-2014
financial plan assumes that the Authority makes a
voluntary contribution to the State in the amount of $65 million each
year.
Approval
of any such payments to the State’s general fund and/or to subsidize customers
requires legislation authorizing such payments and is conditional upon the
Trustees’ determination that such payments are “feasible and advisable”. The
Trustees’ decision as to whether and to what extent such payments are feasible
and advisable will be made based on the exercise of their fiduciary
responsibilities and in light of the requirements of the Authority’s Bond
Resolution, other legal requirements, and all the facts and circumstances known
to them at the time of the decision.
In
addition to the authorization for the voluntary contributions, the Authority
was authorized by February 2009 budget legislation to make certain temporary
asset transfers to the State of funds in reserves. Pursuant to the terms of a
Memorandum of Understanding dated February 2009 (“MOU”) between the State,
acting by and through the Director of the Budget of the State, and the
Authority, the Authority agreed to transfer $215 million associated with its
Spent Nuclear Fuel Reserves by the end of State Fiscal Year 2008-2009. The Spent Nuclear Fuel Reserves are funds
that have been set aside for payment to the federal government sometime in the
future when the federal government accepts the spent nuclear fuel for permanent
storage. The MOU provides for the return
of these funds to the Authority, subject to appropriation by the State Legislature
and other conditions, at the earlier of the Authority’s payment obligation
related to the transfer and disposal of the spent nuclear fuel or September 30,
2017. Further, the MOU provided for the
Authority to transfer during State Fiscal Year 2009-2010 approximately $103
million of funds set aside for future construction projects, which amounts
would be returned to the Authority, subject to appropriation by the State
Legislature and other conditions, at the earlier of when required for
operating, capital or debt service obligations of the Authority or September
30, 2014. Both temporary transfers were
authorized by the Authority’s Trustees and made in 2009. The financial plan reflects the return of
this $103 million amount in September 2014.
For
the 2011-2014 financial plan, the Authority is
assuming that it will continue to provide service to the Market Supply Power
business customers as it does currently.
Forecasted voluntary subsidies and payments to the Market Supply Power
Customers and the State’s general fund are subject to the “feasible and
advisable” conditions and limitations of the preceding paragraphs.
A
number of legislative proposals have been introduced to extend or alter the
Authority’s role in providing lower cost power for economic development
purposes, including the potential redeployment of hydroelectric power provided
by the Authority to the “rural and domestic” (i.e., residential) customers of
National Grid, New York State Electric & Gas and Rochester Gas &
Electric for statewide economic development purposes. It is unclear at this point which, if any,
of the proposals will be enacted into law and how they would affect the
Authority’s estimated net income for the financial plan period.
Section
1011 of the Power Authority Act (“Act”) constitutes a pledge of the State to
holders of Authority obligations not to limit or alter the rights vested in the
Authority by the Act until such obligations together with the interest thereon
are fully met and discharged or unless adequate provision is made by law for
the protection of the holders thereof. Several bills have been introduced into
the State Legislature, some of which propose to limit or restrict the powers,
rights and exemption from regulation which the Authority currently possesses
under the Act and other applicable law, or otherwise would affect the
Authority’s financial condition or its ability to conduct its business,
activities, or operations, in the manner presently conducted or contemplated by
the Authority. It is not possible to
predict whether any of such bills or other bills of a similar type which may be
introduced in the future will be enacted.
In addition, from time to time, legislation is enacted into New York law
which purports to impose financial and other obligations on the Authority, either
individually or along with other public authorities or governmental
entities. The applicability of such
provisions to the Authority would depend upon, among other things, the nature
of the obligations imposed and the applicability of the pledge of the State set
forth in Section 1011 of the Act to such provisions. There can be no assurance that the Authority
will be immune from the financial obligations imposed by any such provision.
Actions
taken by the State Legislature or the Executive Branch to receive greater
voluntary contributions and which attempt to constrain the discretion of or
bypass the Authority’s Trustees could negatively affect net income and possibly
harm the Authority’s bond rating.
Hydroelectric Generation Risk
For
the 2011-2014 financial plan period, the Authority’s
net income is highly dependent upon generation levels at its Niagara and St.
Lawrence-FDR Projects. The generation
levels themselves are a function of the hydrological conditions prevailing on
the Great Lakes, primarily, Lake Erie (Niagara Project) and Lake Ontario (St.
Lawrence-FDR Project). Long-term
generation levels at the two hydroelectric projects are about 20.2
terawatt-hours (“TWH”) annually. The
Authority’s hydroelectric generation forecast is 19.14 TWH in 2011, 19.78 TWH
in 2012, 19.70 TWH in 2013 and 19.70 TWH in 2014. However, these generation amounts are
expected values and hydrological conditions can vary considerably from year to
year. During a recent ten year period,
2000-2009, hydroelectric generation was in a number of the years below the
long-term average and manifested considerable volatility.
|
Net Hydroelectric Generation |
||
|
2000 |
18.6 |
TWH |
|
2001 |
17.6 |
TWH |
|
2002 |
19.7 |
TWH |
|
2003 |
18.3 |
TWH |
|
2004 |
20.4 |
TWH |
|
2005 |
20.7 |
TWH |
|
2006 |
20.3 |
TWH |
|
2007 |
19.8 |
TWH |
|
2008 |
20.6 |
TWH |
|
2009 |
21.5 |
TWH |
|
2010* |
19.6 |
TWH |
(* - Projected)
Poor
hydrological conditions would adversely affect the Authority’s estimated net
income for the financial plan horizon and could compel NYPA’s Trustees to lower
or not approve any contributions to the discretionary subsidy policy described
previously.
The
Authority conducted high and low hydroelectric generation sensitivities for
2011-2014 that estimated the potential net income that could result over a
reasonable range of hydroelectric generation occurrences. The effects on estimated net income, assuming
all other factors remain unchanged, were as follows:
|
|
Low
Generation |
High Generation |
||
|
|
Net Hydroelectric Generation |
NYPA Net Income (in
Millions) |
Net Hydroelectric Generation |
NYPA Net Income (in
Millions) |
|
2011 |
17.65 TWH |
$ 133.8 |
20.17 TWH |
$ 213.4 |
|
2012 |
18.23 TWH |
$ 200.2 |
21.16 TWH |
$ 292.2 |
|
2013 |
18.15 TWH |
$ 246.3 |
21.08 TWH |
$ 346.3 |
|
2014 |
18.15 TWH |
$ 282.8 |
21.08 TWH |
$ 383.8 |
Electric Price and
Fuel Risk
Through
its participation in the NYISO market, NYPA is subject to electric energy price,
fuel price and electric capacity price risks that impact the revenue and
purchased power streams of its facilities and customer market areas. Such volatility can potentially have
detrimental effects to NYPA’s net income, particularly since the NYPA-served
customer load energy needs are greater than its generating resources. To mitigate downside net income effects, many
of NYPA’s customer contracts provide for the complete or partial pass-through
of these costs and to moderate cost impacts to its customers, NYPA hedges
market risks via the use of financial instruments and physical contracts. Hedges are transacted by NYPA to mitigate
the cost of energy or related products needed to meet customer needs; to mitigate
risk related to the price of energy and related products sold by NYPA; to
mitigate risk related to margins (electric sales versus fuel use) where NYPA
owns generation or other capacity; and mitigation of geographic cost
differentials of energy procured or sold for transmission or transportation to
an ultimate location. Commodities to be
hedged include, but are not limited to, natural gas, natural gas basis,
electric energy, electric capacity and electric basis.
Litigation Risk
In
1982 and again in 1989, several groups of St. Regis Mohawk Indians filed
lawsuits against the State, the Governor of the State, St. Lawrence and
Franklin counties, the St. Lawrence Seaway Development Corporation, the
Authority and others, claiming ownership to certain lands in St. Lawrence and
Franklin counties and to Barnhart, Long Sault and Croil
islands (“St. Regis litigation”). These islands are within the boundary of the
Authority’s St. Lawrence-FDR project and significant project facilities are
located on Barnhart Island. Settlement discussions were held periodically
between 1992 and 1998. In 1998, the Federal government intervened on behalf of
the Mohawk Indians.
Thereafter,
settlement discussions produced a land claim settlement, which if implemented
would include, among other things, the payment by the Authority of $2 million a
year for 35 years to the tribal plaintiffs, the provision of up to 9 MW of low
cost Authority power for use on the reservation, the transfer of two
Authority-owned islands, Long Sault and Croil, and a
215-acre parcel on Massena Point to the tribal plaintiffs, and the tribal
plaintiffs withdrawing any judicial challenges to the Authority’s new license,
as well as any claims to annual fees from the St. Lawrence-FDR project. Members of all tribal entities voted to
approve the settlement, which was executed by them, the Governor, and the
Authority on February 1, 2005. The
settlement required, among other things, Federal and State legislation to
become effective which has not yet been enacted.
Litigation
in the case had been stayed to permit time for passage of such legislation and
to await decisions of appeals in two relevant New York land claims litigations,
involving the Cayuga and Oneida Nations, to which the Authority was not a
party. In May 2006, the U.S. Supreme
Court declined to review the U.S. Court of Appeals’ (Second Circuit) decision
in Cayuga Indian Nation et al. v Pataki et al. (2005) that had reversed a
verdict awarding the Cayugas $248 million in damages
and also dismissed the Cayuga land claim.
The basis for the Second Circuit’s dismissal of the land claim was that
the Cayugas had waited too long to bring their land
claim (laches).
The Authority had raised the defense of laches
in its answer in the St. Regis litigation and on November 26, 2006 the
Authority and the State moved to dismiss the St. Regis Mohawks’ complaints as
well as the United States’ complaint on similar delay grounds. The Mohawks and the Federal government filed
papers opposing those motions in July 2007.
Litigation has been stayed and resolution of the pending defense motions
had been awaiting a decision by the Court of Appeals for the Second Circuit in
a related land claim litigation involving similar defense motions. On August 9, 2010, the Second Circuit issued
its decision in such related land claim litigation and determined that the
plaintiffs’ claims were barred by equitable defenses. The Authority is unable to predict the
outcome of the St. Regis litigation but believes it has meritorious defenses or
positions with respect thereto. However,
adverse decisions of a certain type could adversely affect Authority operations
and revenues.
In
May 2009, the County of Niagara, “on behalf of its residents”, and several
individuals commenced an Article 78 lawsuit in Niagara County Supreme Court
against the Authority, its Trustees, the State of New York, and the State
Comptroller. The lawsuit challenges on
numerous grounds the legality of the two temporary asset transfers totaling
$318 million and two voluntary contributions totaling $226 million (except as
such contributions relate to the Power for Jobs Program) discussed above. Among other things, the lawsuit seeks
judgment providing for the return to the Authority of any such monies that have
been paid; prohibiting such asset transfers and voluntary contributions in the
future; directing the Authority to utilize such returned monies only for
“statutorily permissible purposes”; directing the Authority to “rebate” to
certain customers receiving hydropower from it some portion, to be determined,
of the monies returned to the Authority; and directing that the Authority
submit to an audit by the State Comptroller.
No temporary or preliminary injunctive relief is sought in the
petition. Petitioners later served an
amended petition that simply dropped the State Comptroller from the
caption. By decision dated October 5,
2009, the court granted a cross-motion by petitioners to further amend the
petition so as to remove the Comptroller from the amended petition’s prayer for
relief. The pleading was never filed. By decision dated December 23, 2009, the
court denied respondents’ motions to dismiss the petition and granted
petitioners’ motion to file a complaint and serve discovery demands. Petitioners subsequently filed such complaint
and discovery demands. The complaint contains new causes of action including
unjust enrichment, conversion, breach of fiduciary duty, and claims of
deceptive acts and practices. The
Authority filed a motion to dismiss and the State filed an answer; petitioners
filed a partial motion for summary judgment; and respondents filed opposition
papers to said motion. However, on March
5, 2010, the Appellate Division (Fourth Department) granted respondents’
motions for permission to appeal the lower court’s decision dated December 23,
2009; that appeal is now pending before the Appellate Division; and the lower
court has indicated it will await the outcome of that appeal before deciding
the Authority’s motion to dismiss the complaint. The Authority is unable to predict the
outcome of this matter but believes it has meritorious defenses with respect to
the claims asserted in the petition and complaint. However, adverse decisions of a certain type
could adversely affect Authority revenues.
Strategic Initiatives
The Authority is
considering several projects, which are in varying stages of review and/or
development. These initiatives include
consideration of the following: entering into a contract for capacity on a
proposed new transmission line between New Jersey and Manhattan for the benefit
of its NYC Customers; a potential new transmission line that would deliver
power from Canada and upstate New York to New York City; an off-shore wind
generating facility in the New York waters of the Great Lakes and a second
off-shore wind generating facility in the Atlantic Ocean off of Long Island;
and the potential development of 100 MW of solar photovoltaic systems
throughout the state. Contractual arrangements, if any, for the
Authority to undertake these initiatives or for customers to take the related
power are still to be determined. As a
result, the financial plan does not reflect any costs or revenues with respect
to these initiatives.
|
(e) Revised Forecast of 2010 Budget |
|||
|
|
(in Millions) |
||
|
Original
Budget |
Forecast |
Variance
Better/(Worse) |
|
|
2010 |
2010 |
2010 |
|
|
Operating Revenues: |
|||
|
Customer Revenues |
$2,062.1
|
$1,963.2
|
($98.9) |
|
NYISO Market Revenues |
$749.0 |
$592.6 |
($156.4) |
|
Total Operating Revenues |
$2,811.1
|
$2,555.8
|
($255.3) |
|
Operating Expenses: |
|||
|
Purchased Power |
$955.7 |
$934.3 |
$21.4 |
|
Fuel oil and gas |
$340.8 |
$221.1 |
$119.7 |
|
Wheeling Expenses |
$519.9 |
$522.1 |
($2.2) |
|
O&M Expenses |
$301.5 |
$295.6 |
$5.9 |
|
Other Expenses |
$141.7 |
$132.0 |
$9.7 |
|
Depreciation and
Amortization |
$160.3 |
$164.0 |
($3.7) |
|
Total Operating Expenses |
$2,419.9
|
$2,269.1
|
$150.8 |
|
NET OPERATING REVENUES |
$391.2 |
$286.7 |
($104.5) |
|
Other Income: |
|||
|
Investment Income |
$34.5 |
$51.1 |
$16.6 |
|
Other Income |
$101.7 |
$88.9 |
($12.8) |
|
Total Other Income |
$136.2 |
$140.0 |
$3.8 |
|
Non-Operating Expenses |
|||
|
Interest & Other
Expenses |
$112.3 |
$99.1 |
$13.2 |
|
Contributions to
State |
$107.0 |
$147.0 |
($40.0) |
|
Total Non-Operating Expense |
$219.3 |
$246.1 |
($26.8) |
|
NET INCOME |
$308.1 |
$180.6 |
($127.5) |
(f) Reconciliation
of 2010 Budget and 2010 Forecast
The
2010 year-end net income projection is $181 million, which is $127 million
below the official budget. The primary
drivers of this variance are lower hydro flows ($38 million), lower market
prices ($51 million) and an additional $40 million voluntary contribution made
to New York State. Hydro generation for
2010 is currently estimated at 19.6 TWh,
approximately 1 TWh below forecast, while market
prices for capacity and energy are both down by 20% from the official budget.
Partially
mitigating the net income impact of these additional expenses are a reduction
in O&M expenses and fairly significant movements in interest rates that
have affected Investment Income and Interest and Other Expenses.
(g) Statement
of 2009 Financial Performance
(in Millions)
|
|
|
|
Actuals |
Budget |
Variance Better/(Worse) |
||
|
|
|
|
2009 |
2009* |
2009 |
||
|
Operating
Revenues: |
|
|
|
|
|
|
|
|
Customer |
$1,843 |
|
$2,082 |
($239) |
|
||
|
NYISO Market Revenues |
$752 |
|
$956 |
($204) |
|
||
|
Total Operating Revenues |
$2,595 |
|
$3,038 |
($443) |
|
||
|
|
|
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
|
|
|
Purchased Power |
($905) |
|
($1,156) |
$251 |
|
||
|
Fuel Consumed - Oil and Gas |
($366) |
|
($516) |
$150 |
|
||
|
Wheeling |
($436) |
|
($442) |
$6 |
|
||
|
Operations & Maintenance |
($438) |
|
($409) |
($29) |
|
||
|
Depreciation and Amortization |
($164) |
|
($161) |
($3) |
|
||
|
Total
Operating Expenses |
($2,309) |
|
($2,684) |
$375 |
|
||
|
|
|
|
|
|
|
|
|
|
Operating
Income |
$286 |
|
$354 |
($68) |
|
||
|
|
|
|
|
|
|
|
|
|
Nonoperating Revenues and
Expenses |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
Nonoperating Revenues: |
|
|
|
|
|
|
|
|
Investment Income |
$32 |
|
$39 |
($7) |
|
||
|
Other Income |
$100 |
|
$91 |
$9 |
|
||
|
Total
Nonoperating Revenues |
$132 |
|
$130 |
$2 |
|
||
|
|
|
|
|
|
|
|
|
|
Nonoperating Expenses: |
|
|
|
|
|
||
|
Contribution to New York State |
($70) |
|
($70) |
$0 |
|
||
|
Interest and Other Expenses |
($95) |
|
($106) |
$11 |
|
||
|
Total
Nonoperating Expenses |
($165) |
|
($176) |
$11 |
|
||
|
|
|
|
|
|
|
||
|
Nonoperating Income (Loss) |
($33) |
|
($46) |
$13 |
|
||
|
|
|
|
|
|
|
||
|
NET
INCOME |
$253 |
|
$308 |
($55) |
|
||
* Due to significant economic and market changes after the
establishment of the Original 2009 Budget of $173.1 million, in January 2009
the budget was updated to $307.9 million
(h) Employee Data –
number of employees, full-time, FTEs and functional classification
|
|
|||||
|
|
|
|
|
|
|
|
|
|
2011 |
2012 |
2013 |
2014 |
|
|
|
|
|
|
|
|
Headquarters |
665 |
665 |
665 |
665 |
|
|
Power Generation |
885 |
875 |
865 |
855 |
|
|
Transmission |
166 |
166 |
166 |
166 |
|
|
R&D |
17 |
17 |
17 |
17 |
|
|
TOTAL |
1,733 |
1,723 |
1,713 |
1,703 |
|
|
|
|||||
(i) Gap-Closing
Initiatives – revenue enhancement or cost-reduction initiatives
As the Authority is projecting positive net income for
the 2011-2014 financial plan period, there are no planned gap-closing programs.
(j) Material Non-recurring Resources – source
and amount
See discussion in “Other Income” section.
(k) Shift in Material Resources
There are no anticipated shifts in material resources
from one year to another.
(l) Debt
Service
|
Projected Debt Outstanding
(FYE) |
|||||
|
(in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
|
2011 |
2012 |
2013 |
2014 |
|
|
|
|
|
|
|
|
Revenue Bonds |
|
1,173,285 |
1,130,285 |
1,383,725 |
1,331,535 |
|
|
|
|
|
|
|
|
Adjustable Rate Tender
Notes |
|
122,935 |
114,765 |
105,940 |
96,410 |
|
|
|
|
|
|
|
|
Commercial Paper
Notes |
|
545,162 |
473,824 |
460,353 |
446,614 |
|
|
|
|
|
|
|
|
TOTAL |
|
1,841,382 |
1,718,874 |
1,950,018 |
1,874,559 |
|
Debt Service as Percentage of Pledged Revenues (Accrual Based) |
||||||||
|
(in Thousands) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
2012 |
2013 |
2014 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
Debt Service |
% of
Rev. |
Debt Service |
% of
Rev. |
Debt Service |
% of
Rev. |
Debt Service |
% of
Rev. |
|
|
|
|
|
|
|
|
|
|
|
Revenue
Bonds |
$104,761 |
3.73% |
$105,206 |
3.37% |
$111,050 |
3.35% |
$130,414 |
3.79% |
|
|
|
|
|
|
|
|
|
|
|
Adjustable
Rate Tender Notes |
$9,118 |
0.32% |
$10,833 |
0.35% |
$12,552 |
0.38% |
$14,144 |
0.41% |
|
|
|
|
|
|
|
|
|
|
|
Commercial
Paper Notes |
$54,475 |
1.94% |
$50,762 |
1.62% |
$53,774 |
1.62% |
$52,207 |
1.52% |
|
|
|
|
|
|
|
|
|
|
|
Total
Debt Service |
$168,354
|
5.99% |
$166,801
|
5.34% |
$177,376
|
5.35% |
$196,765
|
5.72% |
|
Planned
Use of Debt Issuances |
||||||
|
(in Thousands) |
||||||
|
|
|
|
|
|
|
|
|
|
|
Assumed |
Project
/ Description |
|||
|
TYPE |
Amount |
Interest Rate |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period January 1,
2011 - December 31, 2011 |
|
|
|
|
||
|
Tax
Exempt Commercial Paper |
$137,257.0 |
0.75% |
Energy
Services Program |
|||
|
|
|
|
|
|||
|
Taxable
Commercial Paper |
$5,648.0 |
1.15% |
Energy
Services Program |
|||
|
|
|
|
|
|||
|
TOTAL ISSUED 2011 |
$142,905.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period January 1,
2012 - December 31, 2012 |
|
|
|
|
||
|
Tax
Exempt Commercial Paper |
$183,421.0 |
1.75% |
Energy
Services Program |
|||
|
|
|
|
|
|||
|
Taxable
Commercial Paper |
$4,631.0 |
2.69% |
Energy
Services Program |
|||
|
|
|
|
|
|
|
|
|
TOTAL ISSUED 2012 |
$188,052.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period January 1,
2013 - December 31, 2013 |
|
|
|
|
||
|
Tax
Exempt Commercial Paper |
$184,307.0 |
2.75% |
Energy
Services Program |
|||
|
|
|
|
|
|||
|
Taxable
Commercial Paper |
$6,347.0 |
4.23% |
Energy
Services Program |
|||
|
|
|
|
|
|
|
|
|
Tax-Exempt
Fixed Rate Bonds |
$70,810.0 |
5.00% |
Lewiston
Pump Generating Plant |
|||
|
|
|
|
|
|
|
|
|
Taxable
Fixed Rate Bonds |
$231,140.0 |
7.50% |
Lewiston
Pump Generating Plant / |
|||
|
|
|
|
Transmission |
|
|
|
|
TOTAL ISSUED 2013 |
$492,604.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period January 1,
2014 - December 31, 2014 |
|
|
|
|
||
|
Tax
Exempt Commercial Paper |
$235,077.0 |
3.75% |
Energy
Services Program |
|||
|
|
|
|
|
|
|
|
|
Taxable
Commercial Paper |
$6,249.0 |
5.77% |
Energy
Services Program |
|||
|
|
|
|
|
|
|
|
|
TOTAL ISSUED 2014 |
$241,326.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The full faith and credit of the Authority are
pledged for the payment of bonds and notes in accordance with their terms and
provisions of their respective resolutions.
The Authority has no taxing power and its obligations are not debts of
the State or any political subdivision of the State other than the
Authority. The Authority's debt does
not constitute a pledge of the faith and credit of the State or of any
political subdivision thereof, other than the Authority. |
||||||
