Safety Report May 2020
Incidents Reported Date Injury Description: Causes: Prevention: He was working over head soldering a joint. While wiping away the hot solder Use a wet rag rather than using a finger and wipe away 4-15-2020 Shoulder from the bottom of the joint it managed to Overhead Work not towards the face. make its way past his safety glasses and land on his eye lid and close to the eye. Employee was changing out a propane tank on forklift. While installing the full Stretch and flex or ask another employee for 4-17-2020 Forehead tank he started feeling pain in his left Overexertion assistance. hand, and a sensation of burning and numbness in the hand and fingers.
Monthly and Year to Date 2020 April YTD Total Incidents Reported 2 11 Recordable Case(s) 1 2 Restricted Duty Case(s) 0 2 Lost Workday Case(s) 0 1
Vehicle Incidents Date Vehicle Driver’s Account: Prevention An employee was backing down a driveway to open some fuses 4-11-2020 424 and lost sight of the mailboxes in the wide spot of driveway and Stay alert, utilize defensive driving skills backed over them.
Close Calls Date Location Description While preforming switching the crew closed a normal open, (looping) and continued switching orders, moving on to open 4-27-2020 Clover & Pilgrim Rd NR112 so we could change the fuse size. After we completed the fuse change out and re-energized we were notified that a few customers were with out power during the fuse change out.
2020 incidents Year to Date Summary Employee Safety 0 Level 6 – Fatality or Hospitalization Level 6 – Fatality or Hospitalization 0 0 7 Level 5 – Lost Work Day Case(s) Level 5 – Lost Work Day Case(s) 0 1 5 20 Recordable 5 8 2 0 Level 4 –Restricted Duty Case(s) Level 4 –Restricted Duty Case(s) Cases TTL. Recordable Cases TTL. 11 Level 3 – Recordable Injury Case(s) Level 3 – Recordable Injury Case(s) 0 2 7 Level 2 – First Aid Case(s) Level 2 – First Aid Case(s) 2 3 67 2019 Level 1 – Serious Close Call Level 1 – Serious Close Call 0 0 Level O - Other – Close Call Level O - Other – Close Call 32 19 2020
Leading & Lagging Indicators
SAVE THE DATE! 2 nd Annual (VIRTUAL) SAFETY DAYS EVENT When: GCPUD Virtual Safety Days June 18, 2020 TEAMS LIVE EVENT (Appointment to all coming soon) Time: 8am-9:30am (3-Keynote Speakers and CI Team 5 Demo/Update) This is a required event attended by all employees!
Thank You! Powering our way of life.
M E M O R A N D U M May 19, 2020 TO: Jeffrey Bishop, Chief Financial Officer FROM: John Mertlich, Sr. Mgr Financial Planning & Analysis Jeremy Nolan, Lead Financial Analyst 1 st Quarter 2020 Financial Forecast Update SUBJECT: Purpose: Provide Highlights of the Q1 Financial Forecast Metrics: • The District has in place interim and long-term annual target milestones for five financial metrics through 2025 (Exhibit C). • Over the 5 year forecast (thru 2025) the current metrics indicate (Exhibits A & B): o The following long-term targets are met through 2024 for: ▪ Liquid Cash >$105 Million, ▪ Debt to Net Plant < 60%, and ▪ Debt Service Coverage > 1.80x o Return on Net Assets does not meet the interim or long-term targets thru 2025. o Retail Operating Ratio (ROR) meets the interim target in 2020 and 2021. The ROR meets the long-term target in 2024 and 2025. • Comparisons between the 2020 Budget and Q1 2020 Forecast can be found in Exhibit D. • Debt to Net Plant Illustrative Example – Historic Cost vs Fair Market Value comparison found in Exhibit H. • The current expectations around the impact of the COVID crisis are limited to the short term effects associated with the state of Washington “shelter in place” o rders. Due limited duration and scope, the current view is that the immediate crisis will have limited impact on the overall financial health of the District. However, significant uncertainty remains concerning the intermediate and long term macroeconomic impacts as a result of the COVID 19 Pandemic. Notes of Interest: • Key forecast updates: o Interest rates updated for current market impact on Interest Income and Variable Rate Debt Service expense. o Labor, O&M, and Capital updated for Q1 actual data and balance of year projection. 1
o Cash Optimization was executed in January 2020 and additional debt refunding in March 2020. • Load Forecast and Retail Revenue have been incorporated. The table below shows the aMW load change and Retail Revenue change from 2020 Budget. o Retail Revenue rate adjustment assumption is: 0% in 2020, and 0.1% annually thereafter. 2
• Wholesale Price volatility along with volume of energy to sell has a large impact on the Financial Forecast results for both Net Income and the Metrics: Wholesale prices have improved from the 2019 Q4 Financial Forecast, but are mostly down from the 2020 Budget. With the updated Load Forecast results shown above, District energy sales will shift from retail requirements to wholesale sales opportunities thru 2025. Lower wholesale prices negatively compound the effect of lower retail sales. The tables below compare the current Wholesale prices with the last quarterly Financial Forecast, 2019 Q4 and the 2020 Budget. Scenarios: • All scenarios start with the Base assumptions • Five Scenarios were run for the 2020 Q1 Forecast: o Wholesale Price Increase (P85) o Wholesale Price Decrease (P15) o Low Load Growth at ½ Base o Low Load Growth at ½ Base and Wholesale Price Decrease (P15) o Low Water (P15) • Scenarios and Debt Service Coverage (Exhibit E) o Debt Service Coverage (DSC) is adversely affected in all scenarios through 2025 except higher wholesale energy prices. o Low Load growth scenario when combined with low wholesale energy prices and the Low Water scenario create the two largest negative impact to DSC, indicating that growing profitable loads and reducing Water risk are key controllable business drivers. • Scenarios and Debt to Net Plant (Exhibit F) o Debt to Net Plant is adversely affected in all scenarios through 2025, except higher wholesale energy prices. o Cash Optimization executed in January 2020 reduced Debt to Net Plant below 2020 Budget target. • Scenarios and Return on Net Assets (Exhibit G) o Return on Net Assets is negatively affected by all scenarios through 2025, except higher wholesale energy prices. o Return on Net Assets fails to meet the interim or long-term target though 2025. 3
Conclusions and Path Forward: • The reduced Load Forecast and associated Retail Revenue has negatively impacted the Net Income thru 2025. • Growing profitable loads is a key controllable business success driver. • Lower wholesale prices combined with low load growth are a threat in the 2020-2025 period. Recommendation: • For your information. 4
EXHIBIT A – Summary of Budget Items (in thousands of dollars) 5
EXHIBIT B – Consolidated Operational Performance (in thousands of dollars) 6
EXHIBIT C - District Annual Financial Metric Targets 7
EXHIBIT D - Comparison between 2020 Budget and Q1 2020 Financial Forecast 8
EXHIBIT D - Comparison between 2020 Budget and Q1 2020 Financial Forecast (con’t) 9
EXHIBIT E- Scenarios: Debt Service Coverage Ratios 10
EXHIBIT F - Scenarios: Debt to Plant 11
EXHIBIT G - Scenarios: Return on Net Assets 12
EXHIBIT H - Debt to Net Plant Ratio Illustrative Example – Historic Cost vs Fair Market Value 13
From: John Mertlich To: Jeffrey Bishop; Jeremy Nolan Cc: Tina Wentworth; Robbie Noga Subject: Re: Q1 2020 Financial Forecast Memo - For Commission Packet - Please Approve and Load Date: Wednesday, May 20, 2020 6:51:45 AM Approved ... John Get Outlook for iOS From: Jeffrey Bishop <jbishop@gcpud.org> Sent: Wednesday, May 20, 2020 6:50:37 AM To: Jeremy Nolan <Jnolan@gcpud.org> Cc: Tina Wentworth <Twentworth@gcpud.org>; John Mertlich <jmertlich@gcpud.org>; Robbie Noga <Rnoga@gcpud.org> Subject: RE: Q1 2020 Financial Forecast Memo - For Commission Packet - Please Approve and Load Ahh.. got it. Thanks Sounds like we are good to go. Jeff From: Jeremy Nolan <Jnolan@gcpud.org> Sent: Wednesday, May 20, 2020 6:48 AM To: Jeffrey Bishop <jbishop@gcpud.org> Cc: Tina Wentworth <Twentworth@gcpud.org>; John Mertlich <jmertlich@gcpud.org>; Robbie Noga <Rnoga@gcpud.org> Subject: Re: Q1 2020 Financial Forecast Memo - For Commission Packet - Please Approve and Load Hi Jeff, John had done his review and approval prior to my submitting. I asked for the email approvals because that had been requested with the prior submission in place of initialing by your names. Thank you, Jeremy Sent from my iPhone On May 20, 2020, at 6:45 AM, Jeffrey Bishop <jbishop@gcpud.org> wrote: This looks good from my perspective Jeremy. I’m ready to submit as final subject to John’s feedback/review. Thank you for your efforts with pulling this update together.
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