Annual Operating Budget REVENUES

Transcription

1 Section C Revenues

2 Annual Operating Budget REVENUES Electric System Budget 2012 Projection 2012 Budget 2013 Revenues: Residential Revenue-Present Rates $ 56,973,601 $ 53,768,720 $ 57,634,441 Residential Rate Change Revenue 979, Non-Residential Revenue-Present Rates 70,274,446 70,427,868 74,239,848 Non-Residential Rate Change Revenue Sales for Resale 4,681,237 4,253,147 4,538,814 Shands SEC 11,078,105 11,027,060 11,142,144 Innovation Square 1,169 1, ,937 Fuel Adjustment Revenue 114,742, ,045, ,369,776 Surcharge Revenue 3,478,758 3,473,455 3,734,978 Interchange Revenue 2,500, , ,000 Other Revenue 5,925,261 5,925,261 6,034,544 Interest Income 1,286,713 1,158,575 1,114,164 Rate Stabilization 7,312,529 4,441,068 (4,541,579) Total $ 279,233,765 $ 257,702,024 $ 258,635,068 Description Revenue forecasts are based on the Bureau of Economic and Business Research (BEBR) population forecasts for Alachua County and econometric models of consumption based on price, weather and demographic factors. Sales for resale include non-fuel revenues from wholesale contract sales. Fuel adjustment revenues collect the fuel and purchased power costs for retail and firm contract unit electricity sales, which are a direct pass-through to the customer. Surcharge revenues are a 10 percent charge applied to the non-fuel portion of retail rates for customers in unincorporated areas of the service territory. Interchange revenues are from non-firm wholesale sales, typically made on an hourly or day-ahead basis, based on market prices, and include fuel and variable O&M production costs. Other revenue includes miscellaneous fees and charges. Rate Stabilization revenues are withdrawals (if positive) or deposits (if negative) from financial reserve accounts. C - 1

3 Budget Highlights Projected Residential and Non-Residential electric revenues for FY12 are lower than originally budgeted. This is largely due to continued economic contraction, lower than anticipated customer growth, and customer response to economic conditions. Residential and Non-Residential sales are expected to increase in FY13. Shands South Energy Center became fully functional in FY10, and continues to contribute significant non-residential revenues to the Electric System. Innovation Square is a project of the University of Florida, for which GRU will provide multiple utility services. Other Revenue continues to benefit from the Build America Bonds rebate, which accounts for $3.2 million in FY12 and FY13. This revenue directly offsets interest expense for the GRU s 2009 Series B and 2010 Series B Bonds. C - 2

4 Annual Operating Budget REVENUES Water System Budget 2012 Projection 2012 Budget 2013 Revenues: Sales of Water $ 23,994,506 $ 26,016,955 $ 25,538,355 Rate Change Revenue 2,145, ,951 UF 1,517,982 1,764,048 1,860,256 Shands SEC 25,708 25,708 26,736 Innovation Square 5,257 5,257 15,309 Surcharge Increase 171,648-76,716 Surcharge 2,006,932 2,151,286 2,109,770 Connection/Other Revenue 3,032,544 2,803,413 3,037,651 Surcharge on Connections 87,250 62,172 76,564 Interest Income 155, , ,217 Rate Stabilization (1,654,525) 101,753 (98,346) Total $ 31,488,273 $ 33,059,827 $ 33,730,180 Description Revenue forecasts are based on the Bureau of Economic Business Research (BEBR) population forecasts for Alachua County and econometric models of consumption based on price, weather and demographic factors. Revenues are obtained from retail sales to residential and non-residential customers served by the potable water system, and include monthly customer charges and usage charges (Kgal) based on metered water sales. UF revenues represent wholesale water sales to the UF campus, which maintains its own distribution system, as well as off-campus UF facilities. UF revenues are excluded from the general fund transfer formula. Cumulative increases in retail revenues from proposed rate changes are shown. A surcharge of 25 percent is collected in unincorporated areas of the water system s service area. These surcharges are collected by the utility from water customers as revenue but then are transferred to the General Fund. They are not retained for utility operational purposes. Connection fees are collected to recover the costs of water supply, treatment and distribution required for each new customer. There is a 25 percent surcharge on connection fees for customers outside incorporated areas of the water distribution system. The surcharge is transferred to General Government, and half of this amount is designated to the City s Connect Free program. This program assists residents within city limits to connect to the water system. Revenue also includes the Usage Charge (Kgals), which covers variable O&M expenses such as chemicals and energy, and the Customer Charge, which covers fixed O&M expenses such as billing, service activation and metering. C - 3

5 Rate Stabilization revenues are withdrawals (if positive) or deposits (if negative) from our financial reserve accounts. Budget Highlights Revenues from retail sales of water, excluding sales of water to the University of Florida, are projected to be comparable to budget for FY12. However, revenues for FY13 are expected to grow slightly as compared to FY12 budget. These are largely the results of projected rate increases, as actual Kgal sales are projected to remain flat. Innovation Square is a project of the University of Florida, for which GRU will provide multiple utility services. Utility Surcharge revenues are projected to be close to budget for FY12, and a small increase is projected for FY13. Connection fees and surcharges on connection fees are projected to be lower than expected for FY12 and are also projected to have a small increase in FY13. Other Revenue continues to benefit from the Build America Bonds rebate, which accounts for $895,000 in FY12 and FY13. This revenue directly offsets interest expense for the GRU s 2009 Series B and 2010 Series B Bonds. C - 4

6 Annual Operating Budget REVENUES Wastewater System Budget 2012 Projection 2012 Budget 2013 Revenues: Wastewater Charges $ 29,379,890 $ 31,221,126 $ 31,081,941 Rate Change Revenue 1,292, ,458 Shands SEC 136,273 91,770 91,770 Innovation Square 2,071 2,071 6,031 Biosolids 300, , ,000 Surcharge 2,129,220 2,303,295 2,283,493 Surcharge Increase 90,490-65,272 Connection/Other Revenue 2,798,999 2,516,994 2,934,174 Surcharge on Connections 178, , ,521 Interest Income 230, , ,693 Rate Stabilization 115, ,916 1,338,392 Total $ 36,655,048 $ 37,659,381 $ 39,410,746 Description Revenue forecasts are based on the Bureau of Economic Business Research (BEBR) population forecasts for Alachua County and econometric models of consumption based on price, weather and demographic factors. Revenues are obtained from wastewater charges to residential and nonresidential customers served by our wastewater collection, treatment, reuse and disposal system. Wastewater is not metered, so for residential customers, maximum charges are based on winter water consumption. This helps avoid billing customers for lawn irrigation and other outdoor uses that do not discharge to the wastewater system. Non-residential customers are billed based on 95 percent of water consumption each month. Customers are given the option of installing irrigation meters, which are not included in wastewater bill calculations, as a way to manage wastewater costs. A surcharge of 25 percent is collected in unincorporated areas of the Wastewater System s service area. These surcharges are collected by the utility from wastewater customers as revenue but then are transferred to the General Fund. They are not retained for utility operational purposes. Connection charges are collected to recover the capital costs of wastewater supply, treatment and distribution required for each new customer. There is a 25 percent surcharge on connection fees for customers outside incorporated areas of the wastewater distribution system. The surcharge is transferred to General Government and half of this amount is designated to the City s Connect Free program. This program assists residents within city limits to connect to the wastewater system. C - 5

7 Rate Stabilization revenues are withdrawals (if positive) or deposits (if negative) from our financial reserve accounts. Budget Highlights Revenues from wastewater charges are projected to be relatively close to budget for FY12. Similar to the Water System, these revenues are expected to grow slightly in FY13. Innovation Square is a project of the University of Florida, for which GRU will provide multiple utility services.. Utility Surcharge revenues are projected to be close to budget for FY12, and a small increase is projected for FY13. Connection fees and surcharges on connection fees are projected to be lower than expected for FY12 and are also projected to have a small increase in FY13. Other Revenue continues to benefit from the Build America Bonds rebate, which accounts for $1 million in FY12 and FY13. This revenue directly offsets interest expense for the GRU s 2009 Series B and 2010 Series B Bonds. C - 6

8 Annual Operating Budget REVENUES Gas System Budget 2012 Projection 2012 Budget 2013 Revenues: Residential Revenue-Present Rates $ 7,171,339 $ 6,513,000 $ 7,447,880 Residential Rate Change Revenue Non-Residential Revenue-Present Rates 4,243,320 3,218,396 3,405,961 Non-Residential Rate Change Revenue MGPCRF 1,036, ,416 1,158,290 PGA 13,475,808 9,845,727 8,880,951 Surcharge Revenue 369, , ,745 Other Revenue 1,831,618 1,831,617 1,878,143 Interest Income 239, , ,098 Rate Stabilization 2,371,607 2,748, ,821 Total $ 30,738,570 $ 25,692,930 $ 24,341,889 Description Revenue forecasts are based on the Business of Economic and Business Research (BEBR) population forecasts for Alachua County and econometric models of consumption based on price, weather and demographic factors. Consumption per customer varies widely from year to year, as it is primarily driven by weather. The line titled MGPCRF is the revenue collected from the application of the Manufactured Gas Plant Cost Recovery Factor. This is a charge for the remediation of sites previously owned by Gainesville Gas Company that were contaminated as a result of the process of making gas out of coal. Purchased Gas Adjustment (PGA) revenue collects for the natural gas fuel distributed to customers. These costs are a direct pass-through to the customer. A 10 percent surcharge is collected from customers in the unincorporated areas of the gas service area. These surcharges are collected by the utility from gas customers as revenue but then are transferred to the General Fund. They are not retained for utility operational purposes. Other Revenue typically includes late fees and service charges. Rate Stabilization revenues are withdrawals (if positive) or deposits (if negative) from financial reserve accounts. C - 7

9 Budget Highlights Residential and Non-Residential revenues from sales of natural gas are projected to be 14.7 percent lower than originally budgeted in FY12, due largely to moderate winter weather in FY12, and continued economic contraction. Revenues from sales to Residential customers are also projected to be 14.3 percent higher in FY13 than projected for FY12. Revenues from sales to Non-Residential customers are generally not as sensitive to price in the short run, but are more affected by economic conditions. In the current extended economic contraction, these sales are expected to be 5.8 percent higher in FY13 than projected for FY12. Other Revenue continues to benefit from the Build America Bonds rebate, which accounts for $668,000 in FY12 and FY13. This revenue directly offsets interest expense for the GRU s 2009 Series B and 2010 Series B Bonds. C - 8

10 Annual Operating Budget REVENUES GRUCom System Budget 2012 Projection 2012 Budget 2013 Revenues: Telecommunication $ 8,956,315 $ 7,613,049 $ 8,021,354 Public Safety Radio 2,077,512 1,745,600 1,813,500 Tower Lease Rental 1,788,242 1,481,100 1,470,200 Interest Income 180, , ,487 Rate Stabilization 2,128,014 3,293,949 2,520,987 Total $ 15,130,129 $ 14,297,124 $ 13,956,528 Description GRUCom revenues are based on historical growth rates for fiber transport services and Internet access sales, anticipated price changes and market demand estimates. Projections have been adjusted down for new broadband contracts executed with developers and property owners, and for the loss of traditional T1 services for Wireless Carriers. Leasing services are primarily tower space leases with Personal Wireless Communications Services (PCS) providers and co-location space leases in the GRUCom Central Office. Revenues from new leases executed in recent months have been included in the forecast. The tower space leases mandate annual CPI increases, which have also been included. Public Safety Radio revenue projections are based on the historical growth rate of radios deployed. These revenues have been adjusted to reflect the new contract that has been put into place extending the service through Budget Highlights GRUCom fiber transport and data services continue to be in high demand by PCS providers, other carriers and local businesses. However, Wireless Carriers have converted their transport services to the new Ethernet based systems at a much more rapid pace than anticipated, disconnecting the traditional T1 service this year instead of the 3 year period previously planned. The Network upgrades and additions to the Wireless Towers in Alachua have us well positioned to recover these revenues in the future as the Carriers add bandwidth to handle increased customer demand. Construction of new condominium and apartment complexes has slowed significantly in the Gainesville area. However, with the introduction of GATOR NET s 50 Mbps service, demand for GATOR NET at existing apartment complexes has increased. C - 9

11 Demand for co-location space at the GRUCom Central Equipment Office has accelerated as more companies and agencies seek to take advantage of the security, reliability and network access benefits available there. GRUCom has completed the retrofit of the existing Co-location space, allowing for additional revenue, and is evaluating additional space needs. GRUCom has announced plans to provide 1 Gigabit service within the developing Innovation District and connecting this service to the UF campus network with the peering arrangement that GRUCom has with the University of Florida. C - 10

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