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Utility Comparison APPA Data
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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 is compiling data for the 2025 Performance Indicators Survey which is due in November 2026. 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. Several of DPU’s APPA-calculated ratios were marked “NA” in the APPA report due to outlier status. These values have been calculated and included in the staff summary.
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 that need attention are operations and maintenance costs, and long-term rate adequacy. The upcoming FY2025 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) is lower than APPA medians but is skewed because DOE is treated as a retail customer. When using DPU’s own FY data, revenue per kWh increased in FY2024 following the first rate increase since 2015 and aligns more closely with APPA medians.
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.
3. Operating Ratio - DPU’s ratio of 1.243 shows operating costs exceeded revenues by 24.3% 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 but below public power benchmarks (typically above 2.0 for risk protection).
5. Times Interest Earned & Debt Service Coverage - The Uniper settlement produced unusually high performance in FY2024:
• Times interest earned rose to 142.89 (extraordinarily high and not reflective of normal operations).
• 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.
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.
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 477 customers per non-generation employee, reflecting efficient staffing levels.
9.-15. O&M and Distribution Expenses - DPU’s O&M and distribution costs per kWh, per customer, and per circuit mile 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
(Electric Production staff is double checking #12 on Purchased Power Cost per kWh for FY24)
16-17. Customer Service and Administrative Costs - The customer service cost per customer is low ($43), indicating efficient account management. The administrative and general cost per customer ($368) 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 is double checking this energy loss for FY24)
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.
21. Capital Expenditures to Depreciation - A ratio of 1.06 shows DPU is reinvesting in its infrastructure slightly faster than it is wearing down.
Attachments
A - 2024 Performance Indicators Survey Report Summary
B - 2024 Report on Financial and Operating Ratios Summary
C - Financial and Operating Ratios of Public Power Utilities APPA Report