BUSINESS REVIEW Jan. 29, 2019 B O N N E V I L L E P O W - PowerPoint PPT Presentation

QUARTERLY BUSINESS REVIEW Jan. 29, 2019

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N INTRODUCTION Scott Simms, DIRECTOR OF COMMUNICATIONS B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | S C O T T S I M M S S L I D E 2

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N AGENDA Time Presentation Speaker 9:00 a.m. Introductions Scott Simms Director of Communications 9:01 a.m. State of the business: Elliot Mainzer • Environment, Fish and Wildlife updates Administrator 9:20 a.m. Power Services update Joel Cook Senior VP of Power Services 9:28 a.m. Transmission Services update Richard Shaheen Senior VP of Transmission Services 9:36 a.m. Finance update Michelle Manary Chief financial officer 9:44 a.m. Grid modernization update Nita Zimmerman Deputy executive VP of Business Transformation Office 9:51 a.m. Upcoming involvement opportunities Scott Simms 9:53 a.m. Question and answer B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | S C O T T S I M M S S L I D E 3

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N STATE OF THE BUSINESS Elliot Mainzer, ADMINISTRATOR AND CHIEF EXECUTIVE OFFICER B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | E L L I O T M A I N Z E R S L I D E 4

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N SAFETY Incident frequency rate Number of injuries and illnesses per 200,000 hours worked 2019 Ceiling 1.5 1.1 1 0.5 0.4 0.3 0 0 Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | E L L I O T M A I N Z E R S L I D E 5

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N CRSO EIS PROCESS *Dates reflect commitment to the Council on Environmental Quality based on the October 2018 presidential memoranda. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | E L L I O T M A I N Z E R S L I D E 7

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N FLEXIBLE SPILL • Flexible spill agreement – Tests an innovative approach to fish survival while managing costs of hydro generation. – In place while we complete the CRSO process. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | E L L I O T M A I N Z E R S L I D E 8

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N POWER SERVICES Joel Cook, SENIOR VICE PRESIDENT OF POWER SERVICES B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | J O E L C O O K S L I D E 9

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N POWER SERVICES EXPENSE Total expense (in millions of dollars) Power Services total expense BP-18 Rate Case Q1 EOY forecast Variance Year-to-date 646 607 (40) Total expenses in millions of dollars FY 2019 2,690 2,486 (204) BP-18 Rate Case Actuals 350 300 250 212 204 191 200 150 100 50 0 Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | J O E L C O O K S L I D E 1 0

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N POWER SERVICES REVENUES Total revenues (in millions of dollars) Power Services total revenues BP-18 Rate Case Q1 EOY forecast Variance Year-to-date 671 706 35 Total revenues in millions of dollars FY 2019 2,821 2,797 (24) BP-18 Rate Case Actuals 350 300 250 236 250 220 200 150 100 50 0 Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | J O E L C O O K S L I D E 1 1

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N SNOWPACK CONDITIONS National Weather Service official water supply forecast as of Jan. 4, 2019 Jan. – July Percent average (million acre feet) 93.5 92 108% 97% 82% 84% 96% 89% 89% 81% 76% 90% 85% 81% 77% B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | J O E L C O O K S L I D E 1 2

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N HENRY HUB PRICES BP-18 forecast: $3.00 Henry Hub prices FY 2019 average: $2.13 In dollars per one million British thermal units BP-18 Rate Case Actuals (S&P Global Platts) Jan. 8 NYMEX Average 4.5 4.06 3.94 4.0 3.5 3.23 3.0 2.5 2.0 Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | J O E L C O O K S L I D E 1 3

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N MID-C PRICES BP-18 forecast: $22.90 Mid-C heavy load hour prices FY 2019 average: $39.50 In dollars per megawatt hour BP-18 Rate Case Actuals Forward market (ICE) 70 60 53.82 51.28 50 44.24 40 30 20 10 Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | J O E L C O O K S L I D E 1 4

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N POWER CAPITAL EXPENDITURE Capital expenditure for fiscal year 2019 In millions of dollars BP-18 Rate Case Actuals fiscal year-to-date 400 300 200 100 46 30 13 0 Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | J O E L C O O K S L I D E 1 5

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N POWER CAPITAL WORKPLAN COMPLETE Percent of capital work plan completed The percentage of assets completed compared to budget spent Completed assets Budget spent Planned assets Planned budget 100 80 60 40 20 100% 73% 0 Q1 Q2 Q3 Q4 Note: Power’s capital work plan completed includes only direct -funded federal hydropower capital projects and spending. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | J O E L C O O K S L I D E 1 6

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N FEDERAL HYDROPOWER RELIABILITY Federal hydropower forced outage factor Percentage of hours fed hydro projects are offline due to unplanned outages FY 2019 Target 7 6 5.9 5.1 5 4 Good 3 Q1 Q2 Q3 Q4 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | J O E L C O O K S L I D E 1 7

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N COLUMBIA GENERATING STATION RELIABILITY Columbia Generating Station availability factor Percentage of time Columbia is available to serve demand FY 2019 Target 100 100 Good 98 96 94 94 92 Q1 Q2 Q3 Q4 B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | J O E L C O O K S L I D E 1 8

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N TRANSMISSION SERVICES Richard Shaheen, SENIOR VICE PRESIDENT OF TRANSMISSION SERVICES B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | R I C H A R D S H A H E E N S L I D E 1 9

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N TRANSMISSION SERVICES EXPENSE Total expense (in millions of dollars) Transmission Services total expense BP-18 Rate Case Q1 EOY forecast Variance Total expense in millions of dollars Year-to-date 259 252 (7) FY 2019 1,067 1,070 3 BP-18 Rate Case Actuals 120 100 88 82 82 80 60 40 20 0 Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | R I C H A R D S H A H E E N S L I D E 2 0

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N TRANSMISSION SERVICES REVENUES Total revenues (in millions of dollars) Transmission Services total revenues BP-18 Rate Case Q1 EOY forecast Variance Total revenues in millions of dollars Year-to-date 259 252 (8) FY 2019 1,060 1,055 (5) BP-18 Rate Case Actuals 120 100 86 83 83 80 60 40 20 0 Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | R I C H A R D S H A H E E N S L I D E 2 1

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N TRANSMISSION CAPITAL EXPENDITURE Capital expenditure for fiscal year 2019 In millions of dollars BP-18 Rate Case Actuals FYTD 600 500 400 300 200 100 94 64 34 0 Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N | Q B R J A N U A R Y 2 0 1 9 | R I C H A R D S H A H E E N S L I D E 2 2