Title
Quarterly Update on Utility System - Gas Distribution System
Recommended Action
None
Staff Recommendation
Body
The Quarterly Update for this quarter is on the Gas Distribution System. This year's version of the Gas Distribution System Update presentation generally follows the format of last year's version. The detailed slides for gas system regulation by the State & Federal governments return for another year because it is hoped that this year's presentation will receive a wider audience than simply the Board of Public Utilities: the wider audience possibly being new Council members and additional public viewing. The information being highlighted in this presentation to the BPU are the gas volume sales trends and the full range of Performance Measures / Benchmarks and Targets. We have now established 7 consecutive years of annual summary data to compare ourselves to other gas system utility companies as well as to enable a review of our performance against ourself year to year.
Many of our performance measures are trending in a direction that is positive for the utility. Many of our performance measures also compare well to national standard comparable values. The Revenue - Expenditure - Cash Balance (RECB) graph that has become familiar to the BPU is based on the 10-Year budget forecast model established during the development of the FY20 fiscal year budget - but also includes actuals for FY18 and projected or non-audited actuals for FY19. The FY18 $2.5 million transfer and the FY19 $1.8 million AMI conversion expenditures are accounted for in the 10-year forecast model RECB graph.
The RECB graph for FY20 indicates a calculated cash balance in excess of that recommended by the BPU financial policy. However, a rate adjustment is not recommended at this time because it is currently thought that some additional years of data collection regarding gas sales volume and warming temperature trends is warranted before any rate adjustments occur. The bottom line for the Gas Distribution system is that it is currently in very good physical condition and excellent financial condition.
Alternatives
Fiscal and Staff Impact
Attachments
A - Gas Dist Util Sys Qrtly Update to BPU 11-20-2019