Title
Update on the Electrification Study Action Plan
Body
Draft Electric Distribution Fund financial outlook scenarios for a 10-year electrification Capital Improvement Plan (CIP)
Financial Scenario 1 assumes $48.8 million in CIP projects through FY2035. The 10-year CIP in this scenario is in line with the recently presented Electrification Study. The assumption projects $28.25 million in funding through revenue bonds to be repaid at 4.5% over 20 years. Revenue rate increases remain unchanged from the percentages presented during the FY2026 Annual Budget approval. The fund’s ending unrestricted cash and investments is negative through FY2029.
Financial Scenario 2 assumes delaying certain CIP projects and initial bond proceeds until FY2030 in which the ending unrestricted cash and investments is projected to be positive. The revenue rate increase percentages are increased from 2% to 5% in years FY2031 through FY2035 as recommended in the Electrification study and also includes added an Electric Superintendent to support the three line crews.
Given The Deputy Utility Manager of Electric Distribution is retiring in September, the Utilities Manager proposes to use one of the overfill FTE's within this year's budget to hire and convert to a full-time position as recommended in the Electrification study. Finally, ED and EP has been recruiting since the beginning of the year for an Engineering Associate and to date have found no qualified applicants. Utilities Manager is looking to upgrade this current vacancy to an engineering project manager consistent with the Electrification study recommendation. If BPU is supportive of these staffing changes, staff will add these to Council's presentation.
The draft financial outlook scenarios are presented for discussion purposes only in relation to next steps on the Electrification Study. Also attached is the draft presentation to Council to discuss any changes or additions to this presentation such as the staffing addition mentioned above.
Attachments
A - Electric Distribution Financial Outlook
B - Draft Council Presentation
C - Final Electrification Study