Title
Comparison of APPA & AWWA Data
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Follow-up to discussion which began at the October 21, 2026 regular meeting.
American Public Power Association (APPA)
The American Public Power Association (APPA) Financial and Operating Ratios of Public Power Utilities Report provides benchmarking data for public utilities nationwide. The data for the report was provided through the APPA 2024 Performance Indicators Survey. Staff has submitted data for the 2025 survey. APPA expects to finalize the 2025 report in early 2027.
The staff summary compares DPU’s 2024 and 2023 results to APPA’s 2024 median values for all APPA utility members, utilities with 5,000-10,000 customers, and utilities in the APPA Western region.
DPU’s financial position in FY2024 was heavily influenced by the one-time Uniper settlement, temporarily boosting several ratios. Underlying operational metrics show strong revenue collection, efficient staffing, and strong financial leverage. Some key areas to review during the upcoming budget preparations are operations and maintenance costs, and long-term rate adequacy and affordability. The upcoming 2025 data will better reflect the ongoing financial health of the electric utility, particularly after time-of-use rates stabilize.
Key Findings
1. Revenue per kWh - DPU’s reported APPA revenue per kWh ($0.097 in 2024) for all retail customers is lower than APPA medians, but is skewed because DOE is treated as a retail customer. When using DPU’s customer types, revenue per kWh is $0.128 in FY2024, and aligns more closely with APPA medians. Revenue per kWh increased in FY2024 following the first electric rate increase since 2015.
2. Debt to Total Assets - DPU improved significantly from 0.724 (FY2023) to 0.382 (FY2024), driven by the Uniper settlement which increased assets. A ratio between 0.30 and 0.60 is considered healthy. Without the Uniper settlement, the ratio would be 0.601 in FY2024, which is still an improvement from FY2023, and in the healthy range.
3. Operating Ratio - DPU’s ratio of 1.008 shows operating costs slightly exceeded revenues in FY2024, prior to implementation of time-of-use rates. A ratio above 1.0 indicates a financial loss. DPU can improve on this ratio by passing rate increases or cutting operational overhead costs.
4. Current Ratio - DPU’s short-term liquidity ratio of 1.40 is solvent, driven by the Uniper settlement, but below public power benchmarks (typically above 2.0 for risk protection). Without the Uniper settlement, the ratio would be 0.20 in FY2024.
5. Times Interest Earned & Debt Service Coverage - The Uniper settlement produced unusually high performance in FY2024:
a. Times interest earned rose to 142.89 (extraordinarily high and not reflective of normal operations). Without the Uniper settlement, the ratio would be -3.06 showing a net financial loss in which the electric utility would not have generated operating earnings to cover interest expenses on long-term debt.
b. FY2024 debt service coverage as calculated by APPA was low (0.29), but DPU’s audited ratio was 40.39 due to the Uniper settlement which increased total assets. APPA’s methodology for calculating the ratio varies from DPU’s calculation in which the APPA factors in depreciation expense. Without the Uniper settlement, APPA’s calculated ratio would be 0.92.
6. Net Income per Revenue Dollar - The calculated ratio of 1.106 is not technically possible under normal operations and reflects the one-time Uniper settlement. FY2023 showed a negative ratio which was attributed to the loss on the disposition of capital assets, due to the retirement of the San Juan power plant. Without the Uniper settlement, the ratio would be -0.032 in FY2024.
7. Uncollectible Accounts - DPU writes off only $6 per $1 million billed. DPU successfully collects 99.9994% of its billed revenue, representing an exceptionally strong collection rate.
8. Retail Customers per Non-Generation Employee - DPU serves 232 customers per non-generation employee, reflecting efficient staffing levels.
9.-15. O&M and Distribution Expenses - DPU’s O&M and distribution costs are higher than APPA benchmarks. Major contributing factors include:
- Small customer base (fixed costs spread over fewer accounts)
- Aging or dispersed infrastructure
- Low generation output at Abiquiu and El Vado driving higher hydro O&M costs
Purchased power costs per kWh are in range with the APPA benchmarks.
16-17. Customer Service and Administrative Costs - The customer service cost per customer is low ($41), indicating efficient account management. The administrative and general cost per customer ($363) is higher than average but typical for small or rural utilities with limited scale.
18. Labor Expense per Worker-Hour - Labor costs increased to $54.61 per hour due to higher total labor spending and fewer hours worked in FY2024.
19. Energy Loss Percentage - DPU reported 0% losses on the 2024 Form EIA-861, indicating no measurable system losses that year. (Electric Production staff investigated the cause and it is because the metering and billing are not time aligned to the calendar year. The estimated result using available data resulted at 0%.)
20. System Load Factor - A load factor of 0.631 reflects moderate system efficiency. DPU’s infrastructure is well-utilized but experiences seasonal and daily peaks.
American Water Works Association (AWWA)
The American Water Works Association (AWWA) FY2025 Utility Benchmarking Performance Management for Water and Wastewater Report provides benchmarking data for public utilities nationwide. The staff summary compares DPU’s FY2025 and FY2024 results to AWWA’s FY2025 median values for all utility members surveyed, utilities with 0-50,000 customers, and utilities in Region IV.
DPU’s financial position for the water and wastewater funds in FY2025 showed strong revenue collection, service affordability, strong financial liquidity and leverage, and large investments in system renewal and replacement. Some key areas to review during the upcoming budget preparations are operations and maintenance costs, and long-term rate adequacy and affordability.
Key Findings
1. Residential Service Charges for 7,500 Gallons per Month - DPU’s water and wastewater residential service charges are higher than the reported AWWA benchmarks. DPU had water and wastewater rate increases in both FY2024 and FY2025.
2. Service Affordability - DPU shows strong water and wastewater service affordability as a percentage of local median household income.
3. Customer Assistance Program Percentage of Discount - DPU provides a 30% discount on a typical residential bill through the Utility Assistance Program. The percentage is in line with the AWWA benchmarks.
4. Delinquency Rate 30+ Days Past Due - DPU’s delinquency rate for accounts 30+ days past due is low compared to the AWWA benchmarks, representing an exceptionally strong collection rate.
5. Debt Ratio - The water fund’s debt ratio indicator has been increasing as a result of taking advantage of favorable loan/grant opportunities. The wastewater fund’s debt ratio of 50% shows the fund is more dependent on debt financing. This is a result of the White Rock Water Resource Reclamation Facility.
6. Return on Assets - This indicator shows a strong return on investments for both water and wastewater.
7. Operating Ratio - Both water and wastewater show operating profit margins. These margins may provide funds for CIP and reserve funding, if sufficient. Operating profit margins may not always be sufficient to fund CIP and reserves.
8. Days of Cash on Hand - Both water and wastewater show strong financial liquidity through available cash on hand.
9. Debt Service Coverage Ratio - Both water and wastewater have strong debt service coverage ratios, showing their ability to pay debt obligations.
10. Customer Accounts per Employee - This indicator shows DPU is in range with other utilities.
11. Customer Service Cost per Account - The customer service cost per account for water is lower than the AWWA benchmarks. The wastewater cost per account is higher than the AWWA benchmark.
12-14. O&M Costs - O&M costs for water and wastewater are higher than the AWWA benchmarks when comparing cost per account and cost per million gallon. However, the O&M cost per 100 miles of pipe is in line with the benchmarks.
15. System Renewal & Replacement Allocation - This indicator shows DPU has large investments in CIP as compared to the AWWA benchmarks for both water and wastewater.
16. Energy Consumption Efficiency - This indicator quantifies the energy consumed to supply water and treat wastewater on an annual basis. DPU shows high energy efficiency based on metered energy values.
Attachments
A - APPA Financial and Operating Ratios Summary
B - APPA Financial Performance Ratios Summary Table
C - Financial and Operating Ratios of Public Power Utilities APPA Report
D - AWWA Financial Performance Ratios Summary
E - AWWA Financial and Operating Ratios - Water
F - AWWA Financial and Operating Ratios - Wastewater
G - AWWA Utility Benchmarking 2026