ANNUAL BUDGET ADOPTED
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SECTION ELECTRIC UTILITY – OPERATING BUDGET 1 ELECTRIC UTILITY – CAPITAL IMPROVEMENT & MAJOR MAINTENANCE BUDGET 2 WATER UTILITY – OPERATING BUDGET 3 WATER UTILITY – CAPITAL IMPROVEMENT & MAJOR MAINTENANCE BUDGET 4 PERSONNEL BUDGET – TOTAL RPU 5 SUPPLEMENTAL DATA – CAPITAL/OPERATING BUDGETS 6 ROCHESTER PUBLIC UTILITIES 2023 ANNUAL OPERATING PLAN CONTENTS
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ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY 2023 OPERATING BUDGET ADOPTED SECTION XII Rochester Public Utilities Electric Utility Operating Budget
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Title Pages Assumptions 1 Forecast by Year 2023 through 2027 2 Condensed Income Statement 3 Revenue Sources & Expense Categories 4 Operating Expenditures Graph 5 Production & Sales Statistics Forecast 6 ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY 2023 OPERATING BUDGET INDEX Section 1
ASSUMPTIONS • Other than specifically identified projects, no assumptions have been made with regards to DMC • Interest Earnings Rate: 1.25% • Average Salary Expense Change: 3.0% (excluding headcount additions) (consists of COLA, merit and promotion increases) • Anticipated Bonding $13,600,000 in 2023 (AMI) • Change in Full-time Equivalents: 0 • SMMPA Wholesale Power Cost: 0.0% increase • SMMPA CROD Level: 216 MW • Minimum Cash Reserve Requirement: Current policy amount $53,825,818 RETAIL REVENUES / SALES • Revenue Adjustment: 2.5% proposed general rate increase • Electric KWH Sales Forecast: 0.4% Increase from 2022 Year End Projected Sales • Total Electric Utility Customers: 1.3% Increase over Year End 2022 Projected Customers • Forecast Assumes Normal Weather : 30 Yr Average Heating/Cooling Degree Days per Year WHOLESALE FUEL COSTS • Estimated Cost of Fuel 2023 $6.48 / mcf • Budgeted Cost of Fuel 2022 $3.61 / mcf • Budgeted Cost of Fuel 2022 F2 (updated) $8.65 / mcf OTHER ITEMS • In Lieu of Tax forecast increasing $734,139 to a total of $9,606,922 2023 OPERATING BUDGET ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY Section 1 - Page 1
in 000's 2020 2021 2022 F2 2023 2024 2025 2026 2027 RPU Rate Increase 0.0% 0.0% 1.5% 2.5% 2.5% 2.5% 2.5% 2.5% 1 Revenue 2 Retail Electric $143,975 $146,719 $149,684 $151,922 $156,959 $161,737 $164,981 $169,940 3 Wholesale Electric $1,939 $6,621 $6,972 $5,840 $4,932 $4,932 $4,932 $4,932 4 Wholesale Steam $4,812 $6,841 $7,561 $6,342 $5,708 $5,642 $5,642 $5,642 5 Transmission $11,152 $6,456 $6,236 $6,000 $6,000 $6,000 $6,000 $6,000 6 Other Services & Fees $7,315 $8,617 $1,490 $4,086 $4,137 $4,191 $4,245 $4,300 7 Total Revenue $169,193 $175,254 $171,944 $174,190 $177,736 $182,502 $185,800 $190,814 8 Cost of Revenue SMMPA Rate Increase (Decrease) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% (10.0%) (13.0%) 9 Power Supply $85,673 $87,766 $88,549 $88,392 $88,473 $88,604 $79,928 $69,684 10 Generation Fuel $3,784 $8,958 $9,556 $7,570 $6,937 $6,876 $6,879 $6,883 11 Total Cost of Revenue $89,456 $96,723 $98,105 $95,963 $95,411 $95,480 $86,808 $76,567 12 Gross Margin 13 Retail Electric $58,302 $58,954 $61,135 $63,529 $68,486 $73,133 $85,052 $100,257 14 Wholesale $2,967 $4,505 $4,978 $4,612 $3,702 $3,699 $3,695 $3,691 15 Transmission $11,152 $6,456 $6,236 $6,000 $6,000 $6,000 $6,000 $6,000 16 Other Services & Fees $7,315 $8,617 $1,490 $4,086 $4,137 $4,191 $4,245 $4,300 17 TOTAL GROSS MARGIN $79,737 $78,531 $73,839 $78,227 $82,326 $87,022 $98,992 $114,247 18 Controllable Costs 19 Salaries & Benefits $24,042 $23,470 $26,003 $27,308 $29,297 $30,833 $32,422 $34,076 20 Other Operating Expenses $8,859 $10,208 $11,110 $11,830 $11,958 $12,445 $12,790 $13,233 21 Major Maintenance $3,112 $3,681 $7,958 $4,712 $6,895 $5,088 $4,680 $4,903 22 Non-Bonded Capital Projects $12,441 $12,062 $35,185 $38,508 $16,822 $10,629 $12,235 $21,136 23 TOTAL CONTROLLABLE COSTS $48,453 $49,420 $80,255 $82,358 $64,972 $58,995 $62,127 $73,349 24 Depreciation & Amortization $14,959 $14,744 $15,194 $15,657 $16,293 $17,533 $17,669 $18,054 25 Less Non Bonded Projects (capitalized) ($12,441) ($12,062) ($35,185) ($38,508) ($16,822) ($10,629) ($12,235) ($21,136) 26 Less Total Internal Costs (capitalized) ($3,696) ($4,857) ($5,908) ($4,974) ($7,343) ($4,432) ($4,693) ($6,883) 27 Interutility Allocation ($1,737) ($1,876) ($1,872) ($1,983) ($2,023) ($2,063) ($2,104) ($2,146) 28 Total Operating Expenses $45,538 $45,370 $52,484 $52,550 $55,077 $59,404 $60,764 $61,237 29 Net Operating Income (Loss) $34,199 $33,161 $21,355 $25,677 $27,249 $27,619 $38,228 $53,010 30 Financing & Other Non-Operating Items: 31 Bond & Interest Related Expenses ($6,421) ($5,656) ($5,481) ($5,316) ($5,930) ($5,670) ($5,390) ($23,221) 32 Interest Income $2,180 ($388) $800 $1,278 $1,267 $1,318 $1,452 $1,852 33 Misc Non-Operating Income (Expense) ($6) ($659) ($20) ($23) ($24) ($25) ($25) ($26) 34 Total Financing & Non-Operating Items ($4,248) ($6,703) ($4,700) ($4,062) ($4,687) ($4,377) ($3,964) ($21,396) 35 Income Before Transfers or Capital Contributions $29,951 $26,458 $16,654 $21,615 $22,562 $23,241 $34,264 $31,615 36 Transfers (In Lieu of Taxes) ($8,370) ($8,469) ($8,873) ($9,607) ($10,197) ($10,625) ($10,857) ($11,094) 37 Capital Contributions/Intercompany $2,363 $4,933 $14,211 $17,200 $7,373 $627 $355 $6,755 38 NET INCOME $23,944 $22,922 $21,992 $29,208 $19,739 $13,243 $23,762 $27,276 39 NET INCOME (Excluding Capital Contributions) $7,782 $12,008 $12,366 $12,616 $23,407 $20,521 40 TARGET NET INCOME 15,415 $ 17,541 $ 19,575 $ 20,334 $ 21,250 $ 27,100 $ 41 Excess (Deficit) from Target (7,633) $ (5,532) $ (7,209) $ (7,718) $ 2,156 $ (6,579) $ 42 1/01 Cash Balance 90,413 $ 103,773 $ 94,334 $ 87,345 $ 89,589 $ 95,436 $ 111,152 $ 43 Change in Net Assets 22,922 21,992 29,208 19,739 13,243 23,762 27,276 44 Depreciation & Amortization 14,744 15,194 15,657 16,293 17,533 17,669 18,054 45 Capital Additions/Service Territory Comp (16,919) (41,093) (43,547) (26,079) (19,603) (21,168) (28,885) 46 Bond Principal Payments (6,515) (7,085) (7,395) (8,786) (9,119) (9,481) (14,315) 47 Bond Proceeds - - 13,600 - - - 322,300 48 Net Change in Other Assets/Liabilities (872) 1,553 (14,511) 1,078 3,794 4,934 (320,412) 49 Net Changes in Cash 13,360 (9,439) (6,989) 2,244 5,847 15,716 4,018 50 12/31 Cash Balance 103,773 $ 94,334 $ 87,345 $ 89,589 $ 95,436 $ 111,152 $ 115,170 $ 51 Mimimum Cash Reserve 52,569 $ 52,102 $ 53,826 $ 55,577 $ 57,293 $ 57,005 $ 56,059 $ 52 Excess (Deficit) from Miminum Cash Reserve 51,204 $ 42,231 $ 33,519 $ 34,012 $ 38,143 $ 54,147 $ 59,111 $ 53 Debt Service Coverage Ratio 3.6 2.7 3.1 2.9 3.0 3.7 1.9 Historical Data ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY Management Reporting P&L Section 1 - Page 2
2022 2023 Variance % in 000's 2020 2021 Orig Bdgt 2022 F2 2023 Orig Bdgt 2023 to Orig Bdgt Variance 1 Revenue 2 Retail Electric $143,975 $146,719 $152,326 $149,684 $151,922 $155,871 ($3,949) -2.5% 3 Wholesale Electric $1,939 $6,621 $3,310 $6,972 $5,840 $3,856 $1,984 51.4% 4 Wholesale Steam $4,812 $6,841 $4,167 $7,561 $6,342 $3,824 $2,518 65.8% 5 Transmission $11,152 $6,456 $6,000 $6,236 $6,000 $6,000 - - 6 Other Services & Fees $7,315 $8,617 $8,512 $1,490 $4,086 $5,257 ($1,171) -22.3% 7 Total Revenue $169,193 $175,254 $174,315 $171,944 $174,190 $174,808 ($618) -0.4% 8 Cost of Revenue 9 Power Supply $85,673 $87,766 $90,673 $88,549 $88,392 $91,248 ($2,855) -3.1% 10 Generation Fuel $3,784 $8,958 $4,328 $9,556 $7,570 $4,179 $3,392 81.2% 11 Total Cost of Revenue $89,456 $96,723 $95,001 $98,105 $95,963 $95,427 $536 0.6% 12 Gross Margin 13 Retail Electric $58,302 $58,954 $61,653 $61,135 $63,529 $64,623 ($1,094) -1.7% 14 Wholesale $2,967 $4,505 $3,150 $4,978 $4,612 $3,502 $1,110 31.7% 15 Transmission $11,152 $6,456 $6,000 $6,236 $6,000 $6,000 - - 16 Other Services & Fees $7,315 $8,617 $8,512 $1,490 $4,086 $5,257 ($1,171) -22.3% 17 TOTAL GROSS MARGIN $79,737 $78,531 $79,314 $73,839 $78,227 $79,382 ($1,155) -1.5% 18 Controllable Costs 19 Salaries & Benefits $24,042 $23,470 $28,023 $26,003 $27,308 $29,495 ($2,187) -7.4% 20 Other Operating Expenses $8,859 $10,208 $10,933 $11,110 $11,830 $11,024 $806 7.3% 21 Major Maintenance $3,112 $3,681 $7,567 $7,958 $4,712 $6,507 ($1,796) -27.6% 22 Non-Bonded Capital Projects $12,441 $12,062 $39,004 $35,185 $38,508 $22,983 $15,525 67.6% 23 TOTAL CONTROLLABLE COSTS $48,453 $49,420 $85,527 $80,255 $82,358 $70,010 $12,348 17.6% 24 Depreciation & Amortization $14,959 $14,744 $15,176 $15,194 $15,657 $15,367 $289 1.9% 25 Less Non Bonded Projects (capitalized) ($12,441) ($12,062) ($39,004) ($35,185) ($38,508) ($22,983) ($15,525) 67.6% 26 Less Total Internal Costs (capitalized) ($3,696) ($4,857) ($5,878) ($5,908) ($4,974) ($6,389) $1,415 -22.1% 27 Interutility Allocation ($1,737) ($1,876) ($1,862) ($1,872) ($1,983) ($1,899) ($84) 4.4% 28 Total Operating Expenses $45,538 $45,370 $53,960 $52,484 $52,550 $54,107 ($1,557) -2.9% 29 Net Operating Income (Loss) $34,199 $33,161 $25,354 $21,355 $25,677 $25,275 $402 1.6% 30 Financing & Other Non-Operating Items: 31 Bond & Interest Related Expenses ($6,421) ($5,656) ($5,494) ($5,481) ($5,316) ($5,325) $9 -0.2% 32 Interest Income $2,180 ($388) $1,965 $800 $1,278 $1,982 ($705) -35.6% 33 Misc Non-Operating Income (Expense) ($6) ($659) ($24) ($20) ($23) ($24) $1 -3.0% 34 Total Financing & Non-Operating Items ($4,248) ($6,703) ($3,552) ($4,700) ($4,062) ($3,367) ($695) 20.6% 35 Income Before Transfers or Capital Contributions $29,951 $26,458 $21,802 $16,654 $21,615 $21,908 ($293) -1.3% 36 Transfers (In Lieu of Taxes) ($8,370) ($8,469) ($9,010) ($8,873) ($9,607) ($9,240) ($367) 4.0% 37 Capital Contributions/Intercompany $2,363 $4,933 $14,204 $14,211 $17,200 $11,843 $5,356 45.2% 38 NET INCOME $23,944 $22,922 $26,996 $21,992 $29,208 $24,511 $4,697 19.2% 39 1/01 Cash Balance 90,413 $ 98,117 $ 103,773 $ 94,334 $ 97,275 $ (2,941) $ -3.0% 40 Change in Net Assets 22,922 26,996 21,992 29,208 24,511 4,697 19.2% 41 Depreciation & Amortization 14,744 15,176 15,194 15,657 15,367 289 1.9% 42 Capital Additions/Service Territory Comp (16,919) (44,881) (41,093) (43,547) (32,356) (11,191) 34.6% 43 Bond Principal Payments (6,515) (7,085) (7,085) (7,395) (7,395) - - 44 Bond Proceeds - - - 13,600 18,000 (4,400) - 45 Net Change in Other Assets/Liabilities (872) 6,952 1,553 (14,511) (15,392) 881 -5.7% 46 Net Changes in Cash 13,360 (2,842) (9,439) (6,989) 2,735 (9,723) -355.6% 47 12/31 Cash Balance 103,773 $ 95,275 $ 94,334 $ 87,345 $ 100,009 $ (12,664) $ -12.7% 48 Mimimum Cash Reserve 52,569 $ 52,102 $ 52,102 $ 53,826 $ 52,834 $ 992 $ 1.9% 49 Excess (Deficit) from Miminum Cash Reserve 51,204 $ 43,172 $ 42,231 $ 33,519 $ 47,175 $ (13,656) $ -28.9% Historical Data ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY Management Reporting P&L Section 1 - Page 3
ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY 2023 OPERATING BUDGET Retail Electric 81.2% Wholesale 5.9% Transmission 7.7% Other Services & Fees 5.2% GROSS MARGIN $78,227,205 Purchased Power 59.5% Operating & Maintenance 24.8% Depreciation 10.5% Fuel 5.1% EXPENSE USES $148,512,614 Section 1 - Page 4
20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 55,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Electric Operating Expenditures Section 1 - Page 5
2022 F2 2023 2024 2025 2026 2027 1 Peak MW 2 SMMPA 216 216 216 216 216 216 3 Self Generation - - - - - - 4 Market 51 54 55 56 57 58 5 Total Peak MW 267 270 271 272 273 274 6 % Change -1.2% 1.0% 0.4% 0.5% 0.3% 0.3% 7 Retail MWH 1,136,976 1,141,331 1,142,041 1,144,109 1,146,088 1,147,978 8 % Change -0.4% 0.4% 0.1% 0.2% 0.2% 0.2% 9 Purchased Power MWH 10 SMMPA 1,146,180 1,158,958 1,160,479 1,162,775 1,164,883 1,166,908 11 Other 3,142 3,160 3,171 3,182 3,191 3,201 12 Total Purchased Power MWH 1,149,322 1,162,118 1,163,650 1,165,957 1,168,074 1,170,108 13 % Change -2.0% 1.1% 0.1% 0.2% 0.2% 0.2% 14 Generation MWH 15 Total Generation MWH 63,820 65,271 65,271 65,271 65,271 65,271 16 % Change -35.9% 2.3% 0.0% 0.0% 0.0% 0.0% 17 Number of Customers 18 Residential 53,550 54,254 54,989 55,724 56,459 57,194 19 Small General Service 4,744 4,819 4,882 4,945 5,010 5,076 20 Medium General Service 478 482 488 495 501 508 21 Large General Service 13 13 13 13 13 13 22 Large Industrial Service 1 1 1 1 1 1 23 Street & Hwy Lightings 3 3 3 3 3 3 24 Interdepartmental 1 1 1 1 1 1 25 Total Customers 58,790 59,573 60,377 61,182 61,988 62,796 26 % Change 1.0% 1.3% 1.3% 1.3% 1.3% 1.3% 27 Blended cost per MWH for retail supply 77.04 $ 76.06 $ 76.03 $ 75.99 $ 68.43 $ 59.55 $ 28 Steam Generation MLBS 431,550 438,000 438,000 438,000 438,000 438,000 29 % Change -5.6% 1.5% 0.0% 0.0% 0.0% 0.0% ROCHESTER PUBLIC UTILITIES PRODUCTION & SALES STATISTICS FORECAST ELECTRIC UTILITY Section 1 - Page 6
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Rochester Public Utilities Electric Utility Capital Improvement & Major Maintenance Budget ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY 2023 CAPITAL IMPROVEMENT & MAJOR MAINTENANCE BUDGET ADOPTED
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Title Pages 5 Year Project List: Major Maintenance Projects 1 Capital Projects 2 - 3 ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY 2023 CAPITAL IMPROVEMENT AND MAJOR MAINTENANCE BUDGET INDEX Section 2
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Multi-Year Project Total 2023 2024 2025 2026 2027 5-Yr Total 1 Core Services 2 Tree Trimming 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 8,500,000 3 Asbestos Mitigation in Manholes - 95,000 95,000 95,000 95,000 380,000 4 Service Assured - Electric 18,000 18,000 18,000 18,000 18,000 90,000 5 Allocation - New Services 307,500 290,000 225,000 225,000 225,000 1,272,500 6 Transmission Lines & Equipment Maintenance 50,000 50,000 50,000 50,000 50,000 250,000 7 Distribution Lines & Equipment Maintenance 257,500 240,000 175,000 175,000 175,000 1,022,500 8 Capacitor Bank Controls Replacement 10,000 10,000 10,000 10,000 10,000 50,000 9 Allocation - Substation Asset Management (Maint) 165,000 158,500 175,500 118,500 118,500 736,000 10 AMI Timing Study 55,000 - - - - 55,000 11 AMI Headend 1,799 84,708 83,649 81,256 83,895 335,307 12 AMI MDM 3,117 146,774 144,938 140,792 145,365 580,986 13 AMI Ongoing Operational Expenses 12,520 127,568 236,852 237,234 237,621 851,795 14 Distribution System Planning Study 35,000 - - - - 35,000 15 ArcFlash Study for Downtown - - - 100,000 - 100,000 16 DER Hosting Capacity Study - 100,000 - - - 100,000 17 Downtown Duct & Feeder Routing Study - 120,000 - - - 120,000 18 Engineering Records in ImageNow - 200,000 - - - 200,000 19 Transmission LIDAR & Clearance Analysis - 250,000 - - - 250,000 20 Pole Attachment & Clearance Violation Survey 60,000 - - - - 60,000 21 Stray Voltage Survey - 42,000 - - - 42,000 22 Downtown Electric Reconfiguration Study 80,000 - - - - 80,000 23 Grid North 120,000 - - - - 120,000 24 Work Management Solution 35,000 120,000 - - - 155,000 25 Total Core Services - 2,602,936 3,462,550 2,688,939 2,725,782 2,633,381 14,113,588 26 Customer Relations 27 DSM - EV TOU Rate * 35,664 9,823 10,118 10,421 10,734 76,760 28 DSM - DLC Smart Thermostat Program * 204,740 207,762 245,737 285,769 327,970 1,271,979 29 Energy Sustainability for Elderly * 87,000 89,610 92,298 95,067 97,919 461,895 30 Cayenta Application Enhancements 140,500 173,200 175,000 175,000 175,000 838,700 31 SEW Modifications 58,200 69,200 75,000 75,000 75,000 352,400 32 RPU Program Changes 258,850 200,900 200,000 200,000 200,000 1,059,750 33 Total Customer Relations - 784,954 750,495 798,153 841,258 886,624 4,061,484 34 Corporate Services 35 HCM Replacement - 100,000 - - - 100,000 36 Elec Cost-of-Srvc/Rate Design Study 92,000 - - 95,000 - 187,000 37 Rates Modeling 20,000 20,000 20,000 20,000 20,000 100,000 38 Budgeting System 50,000 50,000 50,000 50,000 50,000 250,000 39 Utegration (HPC) Support Contract 75,000 75,000 75,000 75,000 75,000 375,000 40 SAP Technical Upgrade 100,000 - - 100,000 - 200,000 41 Sharepoint Site 40,000 30,000 20,000 20,000 20,000 130,000 42 ImageNow Upgrade 30,000 - 30,000 - 30,000 90,000 43 SCADA Pen Test 25,000 25,000 25,000 25,000 25,000 125,000 44 ERP Replacement Discovery - - - - 300,000 300,000 45 Allocation - Technology 44,500 44,500 54,500 44,500 44,500 232,500 46 Info Risk & Security/City Shared Infrastructure 4,500 4,500 14,500 4,500 4,500 32,500 47 Business Systems/Applications 40,000 40,000 40,000 40,000 40,000 200,000 48 Total Corporate Services - 476,500 344,500 274,500 429,500 564,500 2,089,500 49 Compliance and Public Affairs 50 WES Emissions Testing 73,500 - - - 80,000 153,500 51 Total Compliance and Public Affairs - 73,500 - - - 80,000 153,500 49 Power Resources 50 SLP Decommissioning 155,000 375,000 175,000 200,000 250,000 1,155,000 51 Silver Lake Dam Ownership - 1,240,000 - - - 1,240,000 52 Allocation - Power Resources 415,000 520,000 985,000 355,000 400,000 2,675,000 53 Allocation - Facilities 205,000 210,000 215,000 220,000 225,000 1,075,000 54 Total Power Resources - 775,000 2,345,000 1,375,000 775,000 875,000 6,145,000 55 General Management 56 Operating Contingency Fund 300,000 300,000 300,000 300,000 300,000 1,500,000 57 Total General Management - 300,000 300,000 300,000 300,000 300,000 1,500,000 58 Total Major Maintenance Plan - External Expenditures - 5,012,890 7,202,545 5,436,592 5,071,540 5,339,505 28,063,072 * A portion of these project costs are included in the Other Operating Expenses on the Management Reporting P&L. Rochester Public Utilities Electric Utility 2023 - 2027 Major Maintenance Plan Section 2 - Page 1
Multi-Year Project Total 2023 2024 2025 2026 2027 5-Yr Total 1 Core Services 2 OSI SCADA Version Upgrade - 100,000 - 300,000 - 400,000 3 Allocation - New Services 1,210,700 1,273,985 1,305,434 1,375,203 1,448,464 6,613,786 4 New Service Installations 765,000 807,000 826,100 872,404 921,024 4,191,528 5 Distribution Lines & Equipment - Capital 275,700 291,485 298,059 315,461 333,735 1,514,440 6 Property Damage - Repair/Replace 110,000 115,500 121,275 127,338 133,705 607,818 7 T&D Equipment Upgrade/Replace 60,000 60,000 60,000 60,000 60,000 300,000 8 Load Management Installations 7,500 7,500 7,500 7,500 7,500 37,500 9 Substation/Shop Test Equipment Upgrade/Repl 50,000 30,000 30,000 30,000 30,000 170,000 10 Substation Spares and Replacements 20,000 20,000 20,000 20,000 20,000 100,000 11 Web Based Service Application 35,000 - - - - 35,000 12 MagneBlast Breaker Replacement 175,000 - - - - 175,000 13 Northern Hills Sub Control Bldg Improvements 60,000 - - - - 60,000 14 Allocation - Substation Asset Management Capital 115,000 130,000 140,000 195,000 195,000 775,000 15 Metering/Shop Test Equipment Upgrade/Repl 25,000 20,000 50,000 20,000 20,000 135,000 16 AMI 60,556 1,682,742 4,313,517 4,018,150 575,857 10,650,822 17 Allocation - Metering 130,000 25,000 5,000 - - 160,000 18 Feeder 306 Install - - - - 300,000 300,000 19 Feeder 615 Install - - 400,000 200,000 - 600,000 20 Feeder 715 Install 175,000 - - - - 175,000 21 Feeder 913 Install - - - 500,000 - 500,000 22 Feeder 914 Install - - - - 500,000 500,000 23 Feeder 1315 Install - - 400,000 100,000 - 500,000 24 Feeder 1602 Install - - - 500,000 - 500,000 25 Feeder 1911 Install 255,000 - - - - 255,000 26 Feeder 1912 Install 640,000 213,333 426,667 - - - 640,000 27 Feeder 1913 Install - - 400,000 250,000 - 650,000 28 Feeder 1914 Install - - - - 750,000 750,000 29 Downtown New Feeder Extensions - 800,000 - - - 800,000 30 65th St - 34th to 50th Ave 950,000 316,667 633,333 - - - 950,000 31 Q2 Rebuild from Bear Creek - RCTC - - - - 500,000 500,000 32 Q4 Rebuild from BV Sub to Salem Rd - - - 400,000 400,000 800,000 33 Q7 Rebuild to Grade B - - - 200,000 600,000 800,000 34 Q11 W.C. to new St. Bridget Sub - ROW 125,000 - - - - 125,000 35 IBM Substation Upgrade - - - - 750,000 750,000 36 Fiber OWEF Splice to Chester - - - 430,000 - 430,000 37 Marion Rd Substation & Feeder Buildout 51,643,552 27,285,000 - - - - 27,285,000 38 New Padmount Hydro Sub - - - - 400,000 400,000 39 New Mayo Feeders - 3,600,000 - - - 3,600,000 40 Mayo - Feeders to St. Mary's - - - - 5,000,000 5,000,000 41 Volt/VAR Optimization - - - - 700,000 700,000 42 Substation Capacitor Bank Bamber Valley - - - 200,000 - 200,000 43 PLS-CAD Distribution Modeling Software 81,000 - - - - 81,000 44 48th St NE Feeder Extension 250,000 - - - - 250,000 45 Grid North Partners-N Rochester 345kV Line - 150,000 250,000 500,000 2,000,000 2,900,000 46 Mayowood Villas- OH to UG Conversion 300,000 - - - - 300,000 47 DMC-BRT West Transit Village - 300,000 300,000 - - 600,000 48 DMC-BRT Route Corridor - 200,000 100,000 - - 300,000 49 Fiber-Crosstown to Silver Lake - 75,000 - - - 75,000 50 Fiber-Marion to Cty PW/St Bridget Twr to WC - 745,000 475,000 - - 1,220,000 51 Fiber-Marion to Chester 466,000 - - - - 466,000 52 Viola Rd Roundabout 200,000 - - - - 200,000 53 Fiber Relocation Silver Lake 225,000 85,000 85,000 85,000 85,000 565,000 54 Allocation - Distribution Expansion 3,105,000 3,595,000 3,737,000 3,610,000 4,115,000 18,162,000 55 Feeder Extensions 200,000 250,000 340,000 250,000 600,000 1,640,000 56 Feeder Rebuilds 125,000 135,000 140,000 145,000 150,000 695,000 57 Transmission Projects 40,000 45,000 50,000 50,000 55,000 240,000 58 Substation Projects 105,000 120,000 145,000 125,000 150,000 645,000 59 Road Projects 350,000 550,000 400,000 400,000 450,000 2,150,000 60 Road Projects - DMC 450,000 500,000 500,000 400,000 300,000 2,150,000 61 Manhole Switch Replacements 90,000 100,000 105,000 105,000 110,000 510,000 62 Cable Replacement 260,000 275,000 300,000 300,000 300,000 1,435,000 63 Manhole Repair/Replace 260,000 270,000 280,000 290,000 300,000 1,400,000 64 Capacitor Bank Installations 18,000 20,000 60,000 20,000 20,000 138,000 65 Fiber Optic Projects 160,000 200,000 195,000 200,000 200,000 955,000 66 Distribution Transformers 650,000 675,000 700,000 725,000 750,000 3,500,000 67 Overhead to Underground Conversion 325,000 350,000 375,000 400,000 425,000 1,875,000 68 Pole Replacements 42,000 45,000 47,000 50,000 55,000 239,000 69 Upgrades Due to Electrification 30,000 60,000 100,000 150,000 250,000 590,000 70 Survey GPS Replacement - 40,000 - - - 40,000 71 Dual Sensor Drone 20,000 - - - - 20,000 72 GIS Utility Network Implementation 80,000 40,000 40,000 - - - 80,000 73 Service Territory Payments 335,615 291,985 309,504 290,934 349,121 1,577,159 74 Service Territory Payments - SMMPA Reimbursement (164,852) (145,993) (154,752) (145,467) (174,561) (785,625) 75 Designer XI Implementation 90,000 - - - - 90,000 76 Responder Grid Ops Implementation - 90,000 - - - 90,000 77 Total Core Services 53,313,552 35,206,519 14,215,219 12,173,203 13,086,320 18,571,381 93,252,642 Rochester Public Utilities Electric Utility 2023 - 2027 Capital Improvement Plan Section 2 - Page 2
Multi-Year Project Total 2023 2024 2025 2026 2027 5-Yr Total Rochester Public Utilities Electric Utility 2023 - 2027 Capital Improvement Plan 78 Corporate Services 79 Racking Replacement in Stockyard 20,000 20,000 20,000 20,000 20,000 100,000 80 Change Management Tool 25,000 - - - - 25,000 81 NSX Implementation 142,000 42,000 100,000 - - - 142,000 82 Business Intelligence/Reporting 45,000 45,000 45,000 45,000 45,000 225,000 83 PRI to SIP 50,000 - - - - 50,000 84 Core Switch Replacement - 1,400,000 - - - 1,400,000 85 Allocation - Technology 657,000 604,000 497,000 707,000 737,000 3,202,000 86 Network Management 132,000 202,000 110,000 110,000 110,000 664,000 87 Output Management 16,000 16,000 16,000 16,000 16,000 80,000 88 Server Management 261,000 61,000 61,000 196,000 61,000 640,000 89 Workstation Management 138,000 145,000 145,000 145,000 145,000 718,000 90 Backup/DR 50,000 - 35,000 - 150,000 235,000 91 Storage Management - - - - 175,000 175,000 92 Operation Technology 60,000 180,000 130,000 240,000 80,000 690,000 93 Total Corporate Services 142,000 839,000 2,169,000 562,000 772,000 802,000 5,144,000 94 Power Resources 95 Hydro Controls and Electrical Upgrade 900,000 300,000 200,000 200,000 200,000 - 900,000 96 Allocation - Power Resources 100,000 375,000 495,000 925,000 1,025,000 2,920,000 97 A-Wing Renovation 789,476 432,340 176,800 180,336 - - 789,476 98 UPS Replacement Program-Unit 1 113,709 - - - - 113,709 99 Allocation - Facilities 30,000 30,000 30,000 30,000 30,000 150,000 100 Underground Equipment Trailer 50,760 - - - - 50,760 101 Allocation - Fleet 800,880 870,252 830,208 761,400 873,072 4,135,812 102 Total Power Resources 1,689,476 1,827,689 1,652,052 1,735,544 1,916,400 1,928,072 9,059,757 103 General Management 104 Project Contingency Fund 700,000 700,000 700,000 700,000 700,000 3,500,000 105 Total General Management - 700,000 700,000 700,000 700,000 700,000 3,500,000 106 Total External Expenditures 55,145,028 38,573,208 18,736,271 15,170,747 16,474,720 22,001,453 110,956,399 107 Less: Bonding (65,472) (1,914,224) (4,542,104) (4,240,198) (865,343) (11,627,341) 108 Less: Contributions in Aid of Construction (31,752,884) (17,199,722) (7,373,000) (627,000) (355,000) (6,755,000) (32,309,722) 109 Net Capital External Expenditures (Rate Funded) 23,392,144 21,308,014 9,449,047 10,001,643 11,879,522 14,381,110 67,019,336 110 Total Internal Expenditures (Capital Labor) 4,973,884 7,343,198 4,432,358 4,692,983 6,883,321 28,325,744 111 Net Capital Expenditures 23,392,144 26,281,898 16,792,245 14,434,001 16,572,505 21,264,431 95,345,080 Section 2 - Page 3
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ROCHESTER PUBLIC UTILITIES WATER UTILITY 2023 OPERATING BUDGET ADOPTED SECTION XIII Rochester Public Utilities Water Utility Operating Budget
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Title Pages Assumptions 1 Forecast by Year 2022 through 2027 2 Condensed Income Statement 3 Revenue Sources & Expense Categories 4 Operating Expenditures Graph 5 Production & Sales Statistics Forecast 6 ROCHESTER PUBLIC UTILITIES WATER UTILITY 2023 OPERATING BUDGET INDEX Section 3
ASSUMPTIONS • Interest Earnings Rate: 1.25% • Average Salary Expense Change: 2.4% (excluding headcount additions) (consists of COLA, merit and promotion increases) • Change in Full-time Equivalents: 0 • Minimum Cash Reserve Requirement: Current policy amount $7,367,400 RETAIL REVENUES / SALES • Revenue Adjustment: 5.0% proposed general rate increase • Water CCF Sales Forecast 3.0% Increase from 2022 Year End Projected Sales • Total Water Utility Customers 1.0% Increase over Year End 2022 Projected Customers • Forecast Assumes Normal Weather : 538 Cooling Degree Days 27.85 Inches Summer Rainfall OTHER ITEMS • In Lieu of Tax forecast increasing $28,320 to a total of $438,287 ROCHESTER PUBLIC UTILITIES WATER UTILITY 2023 OPERATING BUDGET Section 3 - Page 1
in 000's 2020 2021 2022 F2 2023 2024 2025 2026 2027 RPU Rate Increase 3.5% 0.0% 2.5% 5.0% 5.0% 5.0% 5.0% 5.0% 1 Revenue 2 Retail Water $10,665 $11,064 $11,048 $11,746 $12,478 $13,205 $14,022 $14,753 3 Other Services & Fees $1,423 $1,543 $1,932 $1,989 $2,022 $2,055 $2,089 $2,123 4 Total Revenue $12,088 $12,607 $12,980 $13,734 $14,501 $15,260 $16,111 $16,875 5 Cost of Revenue 6 Water Supply $1,758 $2,002 $2,059 $2,023 $2,053 $2,066 $2,087 $2,091 7 Total Cost of Revenue $1,758 $2,002 $2,059 $2,023 $2,053 $2,066 $2,087 $2,091 8 Gross Margin 9 Retail Water $8,908 $9,062 $8,988 $9,723 $10,425 $11,139 $11,935 $12,662 10 Other Services & Fees $1,423 $1,543 $1,932 $1,989 $2,022 $2,055 $2,089 $2,123 11 TOTAL GROSS MARGIN $10,331 $10,605 $10,920 $11,712 $12,448 $13,195 $14,024 $14,784 12 Controllable Costs 13 Salaries & Benefits $3,065 $3,197 $3,213 $3,493 $3,598 $3,855 $4,005 $4,285 14 Other Operating Expenses $1,145 $1,329 $1,231 $1,360 $1,368 $1,406 $1,445 $1,485 15 Major Maintenance $521 $225 $972 $705 $567 $670 $939 $824 16 Non-Bonded Capital Projects $2,441 $4,088 $4,592 $4,966 $6,960 $5,931 $5,021 $5,910 17 TOTAL CONTROLLABLE COSTS $7,172 $8,840 $10,009 $10,524 $12,493 $11,863 $11,410 $12,503 18 Depreciation & Amortization $2,745 $2,785 $2,965 $3,121 $3,213 $3,286 $3,409 $3,533 19 Less Non Bonded Projects (capitalized) ($2,441) ($4,088) ($4,592) ($4,966) ($6,960) ($5,931) ($5,021) ($5,910) 20 Less Total Internal Costs (capitalized) ($426) ($398) ($383) ($482) ($357) ($350) ($388) ($338) 21 Interutility Allocation $1,737 $1,876 $1,872 $1,983 $2,023 $2,063 $2,104 $2,146 22 Total Operating Expenses $8,788 $9,014 $9,870 $10,181 $10,411 $10,930 $11,513 $11,934 23 Net Operating Income (Loss) $1,543 $1,591 $1,050 $1,531 $2,036 $2,265 $2,511 $2,851 24 Financing & Other Non-Operating Items: 25 Bond & Interest Related Expenses ($1) - - - - - - - 26 Interest Income $223 $196 $170 $143 $141 $141 $141 $150 27 Misc Non-Operating Income (Expense) ($5) ($126) - - - - - - 28 Total Financing & Non-Operating Items $218 $70 $170 $143 $141 $141 $141 $150 29 Income Before Transfers or Capital Contributions $1,761 $1,660 $1,220 $1,674 $2,177 $2,405 $2,652 $3,001 30 Transfers (In Lieu of Taxes) ($385) ($407) ($410) ($438) ($471) ($492) ($509) ($516) 31 Capital Contributions $1,283 $3,160 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 32 Cash Transfers from City/Intercompany - $540 $156 $530 $2,500 $1,000 - $1,575 33 NET INCOME $2,660 $4,953 $2,067 $2,866 $5,306 $4,013 $3,243 $5,160 34 NET INCOME (Excluding Contrib & Cash Tfrs from City) $811 $1,236 $1,706 $1,913 $2,143 $2,485 35 TARGET NET INCOME 5,159 $ 5,370 $ 6,992 $ 7,253 $ 7,490 $ 7,760 $ 36 Excess (Deficit) from Target (4,349) $ (4,134) $ (5,286) $ (5,340) $ (5,347) $ (5,274) $ 37 1/01 Cash Balance 11,975 $ 12,903 $ 11,825 $ 11,264 $ 11,366 $ 11,283 $ 11,426 $ 38 Change in Net Assets 4,953 2,067 2,866 5,306 4,013 3,243 5,160 39 Depreciation & Amortization 2,785 2,965 3,121 3,213 3,286 3,409 3,533 40 Capital Additions (4,486) (4,975) (5,448) (7,318) (6,282) (5,410) (6,248) 41 Non-Cash Contributions (3,160) (1,100) (1,100) (1,100) (1,100) (1,100) (1,100) 42 Debt Principal Payments - - - - - - - 43 Debt Proceeds - - - - - - - 44 Net Change in Other Assets/Liabilities 836 (34) - - - - - 45 Net Changes in Cash 928 (1,078) (561) 102 (83) 143 1,345 46 12/31 Cash Balance 12,903 $ 11,825 $ 11,264 $ 11,366 $ 11,283 $ 11,426 $ 12,771 $ 47 Mimimum Cash Reserve 8,529 $ 6,474 $ 7,367 $ 7,280 $ 7,136 $ 6,983 $ 6,966 $ 48 Excess (Deficit) from Miminum Cash Reserve 4,374 $ 5,351 $ 3,897 $ 4,086 $ 4,147 $ 4,443 $ 5,805 $ Historical Data ROCHESTER PUBLIC UTILITIES WATER UTILITY Management Reporting P&L Section 3 - Page 2
2022 2023 Variance % in 000's 2020 2021 Orig Bdgt 2022 F2 2023 Orig Bdgt 2022 to Orig Bdgt Variance 1 Revenue 2 Retail Water $10,665 $11,064 $10,854 $11,048 $11,746 $11,653 $93 0.8% 3 Other Services & Fees $1,423 $1,543 $1,959 $1,932 $1,989 $1,991 ($2) -0.1% 4 Total Revenue $12,088 $12,607 $12,812 $12,980 $13,734 $13,643 $91 0.7% 5 Cost of Revenue 6 Water Supply $1,758 $2,002 $1,847 $2,059 $2,023 $1,889 $134 7.1% 7 Total Cost of Revenue $1,758 $2,002 $1,847 $2,059 $2,023 $1,889 $134 7.1% 8 Gross Margin 9 Retail Water $8,908 $9,062 $9,007 $8,988 $9,723 $9,764 ($41) -0.4% 10 Other Services & Fees $1,423 $1,543 $1,959 $1,932 $1,989 $1,991 ($2) -0.1% 11 TOTAL GROSS MARGIN $10,331 $10,605 $10,965 $10,920 $11,712 $11,754 ($43) -0.4% 12 Controllable Costs 13 Salaries & Benefits $3,065 $3,197 $3,364 $3,213 $3,493 $3,631 ($138) -3.8% 14 Other Operating Expenses $1,145 $1,329 $1,317 $1,231 $1,360 $1,321 $39 2.9% 15 Major Maintenance $521 $225 $1,015 $972 $705 $686 $19 2.8% 16 Non-Bonded Capital Projects $2,441 $4,088 $4,878 $4,592 $4,966 $7,435 ($2,469) -33.2% 17 TOTAL CONTROLLABLE COSTS $7,172 $8,840 $10,575 $10,009 $10,524 $13,073 ($2,549) -19.5% 18 Depreciation & Amortization $2,745 $2,785 $2,968 $2,965 $3,121 $3,077 $44 1.4% 19 Less Non Bonded Projects (capitalized) ($2,441) ($4,088) ($4,878) ($4,592) ($4,966) ($7,435) $2,469 -33.2% 20 Less Total Internal Costs (capitalized) ($426) ($398) ($391) ($383) ($482) ($301) ($180) 59.7% 21 Interutility Allocation $1,737 $1,876 $1,862 $1,872 $1,983 $1,899 $84 4.4% 22 Total Operating Expenses $8,788 $9,014 $10,136 $9,870 $10,181 $10,313 ($132) -1.3% 23 Net Operating Income (Loss) $1,543 $1,591 $830 $1,050 $1,531 $1,442 $89 6.2% 24 Financing & Other Non-Operating Items: 25 Bond & Interest Related Expenses ($1) - - - - - - 0.0% 26 Interest Income $223 $196 $200 $170 $143 $206 ($62) -30.3% 27 Misc Non-Operating Income (Expense) ($5) ($126) - - - - - 0.0% 28 Total Financing & Non-Operating Items $218 $70 $200 $170 $143 $206 ($62) -30.3% 29 Income Before Transfers or Capital Contributions $1,761 $1,660 $1,030 $1,220 $1,674 $1,647 $27 1.6% 30 Transfers (In Lieu of Taxes) ($385) ($407) ($369) ($410) ($438) ($379) ($59) 15.6% 31 Capital Contributions $1,283 $3,160 $1,105 $1,100 $1,100 $1,100 - 0.0% 32 Cash Transfers from City - $540 $85 $156 $530 $4,010 ($3,480) -86.8% 33 NET INCOME $2,660 $4,953 $1,851 $2,067 $2,866 $6,378 ($32) -0.5% 34 1/01 Cash Balance 11,975 $ 11,283 $ 12,903 $ 11,825 $ 11,194 $ 631 $ 5.6% 35 Change in Net Assets 4,953 1,851 2,067 2,866 6,378 (3,512) -55.1% 36 Depreciation & Amortization 2,785 2,968 2,965 3,121 3,077 44 1.4% 37 Capital Additions/Service Territory Comp (4,486) (5,269) (4,975) (5,448) (7,881) 2,433 -30.9% 38 Non-Cash Contributions (3,160) (1,105) (1,100) (1,100) (1,100) - 0.0% 39 Debt Principal Payments - - - - - - 0.0% 40 Debt Proceeds - - - - 12,150 (12,150) -100.0% 41 Net Change in Other Assets/Liabilities 836 1,467 (34) - (11,953) 11,953 -100.0% 42 Net Changes in Cash 928 (88) (1,078) (561) 672 (1,232) -183.5% 43 12/31 Cash Balance 12,903 $ 11,194 $ 11,825 $ 11,264 $ 11,866 $ (601) $ -5.1% 44 Mimimum Cash Reserve 8,529 $ 6,474 $ 6,474 $ 7,367 $ 6,449 $ 919 $ 14.2% 45 Excess (Deficit) from Miminum Cash Reserve 4,374 $ 4,720 $ 5,351 $ 3,897 $ 5,417 $ (1,520) $ -28.1% Historical Data ROCHESTER PUBLIC UTILITIES WATER UTILITY Management Reporting P&L Section 3 - Page 3
ROCHESTER PUBLIC UTILITIES WATER UTILITY 2023 OPERATING BUDGET Retail Water 83.0% Other Services & Fees 17.0% GROSS MARGIN $11,711,555 Operating & Maintenance 57.9% Electricity 9.0% Depreciation 25.6% Billing Fee 6.4% Chemicals 1.2% EXPENSE USES $12,203,354 Section 3 - Page 4
- 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Water Operating Expenditures Section 3 - Page 5
2022 F2 2023 2024 2025 2026 2027 1 CCF Pumped 5,779,565 5,972,755 6,036,057 6,060,581 6,128,464 6,092,549 2 % Change -6.9% 3.3% 1.1% 0.4% 1.1% -0.6% 3 Retail CCF 5,730,606 5,903,718 5,981,828 6,015,623 6,092,645 6,056,357 4 % Change -3.2% 3.0% 1.3% 0.6% 1.3% -0.6% 5 Number of Customers 6 Residential 37,975 38,331 38,687 39,043 39,399 39,755 7 Commercial 3,820 3,883 3,935 3,988 4,042 4,098 8 Industrial 23 23 23 23 23 23 9 Interdepartmental 1 1 1 1 1 1 10 Total Customers 41,819 42,238 42,646 43,055 43,465 43,877 11 % Change 1.5% 1.0% 1.0% 1.0% 1.0% 0.9% ROCHESTER PUBLIC UTILITIES PRODUCTION & SALES STATISTICS FORECAST WATER UTILITY Section 3 - Page 6
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Rochester Public Utilities Water Utility Capital Improvement & Major Maintenance Budget ROCHESTER PUBLIC UTILITIES WATER UTILITY 2023 CAPITAL IMPROVEMENT & MAJOR MAINTENANCE BUDGET ADOPTED
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Title Pages 5 Year Project List: Major Maintenance 1 Capital 2 ROCHESTER PUBLIC UTILITIES WATER UTILITY 2023 CAPITAL IMPROVEMENT AND MAJOR MAINTENANCE BUDGET INDEX Section 4
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Multiple-Year Project Total 2023 2024 2025 2026 2027 5-Yr Total 1 Core Services 2 Municipal Well Abandonment 50,000 - - - - 50,000 3 Service Assured-Water 212,885 294,200 302,600 311,300 320,300 1,441,285 4 Allocation - Water Distribution System Maintenance 295,000 150,000 200,000 500,000 375,000 1,520,000 5 Water Storage Facility Painting 295,000 150,000 200,000 500,000 375,000 1,520,000 6 Water Cost-of-Service/Rate Design Study - - 45,000 - - 45,000 7 Operating Contingency Fund 85,000 90,000 90,000 95,000 95,000 455,000 8 Total Core Services - 642,885 534,200 637,600 906,300 790,300 3,511,285 9 Compliance and Public Affairs 10 Old Municipal Wells Sealing 30,000 - - - - 30,000 11 Water Quality Data Management 12,000 12,360 12,730 13,112 13,500 63,702 12 Total Compliance and Public Affairs - 42,000 12,360 12,730 13,112 13,500 93,702 13 Power Resources 14 Allocation - RPU Water Facilities 20,000 20,000 20,000 20,000 20,000 100,000 15 Total Power Resources - 20,000 20,000 20,000 20,000 20,000 100,000 16 Total Major Maintenance Plan - External Expenditures - 704,885 566,560 670,330 939,412 823,800 3,704,987 Rochester Public Utilities Water Utility 2023 - 2027 Major Maintenance Plan Section 4 - Page 1
Multi-Year Project Total 2023 2024 2025 2026 2027 5-Yr Total 1 Core Services 2 Well & Booster Station Metering 10,000 11,000 11,000 - - 32,000 3 Chlorine Sensor Replacement 24,633 - - - - 24,633 4 Install New AC Units at Wells & Boosters 37,300 38,600 39,700 40,800 41,900 198,300 5 Water PLC 24,000 24,000 24,000 24,000 24,000 120,000 6 Meter ERT Replacement 510,000 510,000 510,000 510,000 510,000 2,550,000 7 Water Meter Replacements 690,000 690,000 690,000 690,000 690,000 3,450,000 8 Allocation - Water Distribution System Replacement 157,150 116,925 182,700 124,475 186,250 767,500 9 Replacement of Pumping Units 120,000 60,000 120,000 60,000 120,000 480,000 10 Well Motor Replacements 17,500 18,000 18,500 19,000 19,500 92,500 11 Installation of Variable Frequency Drive Units 19,650 15,225 19,800 20,375 20,950 96,000 12 Replacement of Booster Pumps - 23,700 24,400 25,100 25,800 99,000 13 Allocation - Water Metering/AMR 290,160 200,500 180,800 160,500 139,600 971,560 14 Alloc - Residential Water Metering/AMR 158,400 137,400 115,800 93,500 70,600 575,700 15 Alloc - Commercial Water Metering/AMR 131,760 63,100 65,000 67,000 69,000 395,860 16 New Wells 280,000 135,000 395,000 850,000 150,000 1,810,000 17 Water Utility Contingency Fund 180,000 180,000 180,000 185,000 185,000 910,000 18 New Marion L 1.0MG Reservoir - - - - 1,575,000 1,575,000 19 1.0MG Baihly High Level Tower 4,030,000 530,000 2,500,000 1,000,000 - - 4,030,000 20 DMC - Discovery Walk 200,000 - - - - 200,000 21 DMC - Broadway N, Zumbro River Bridge N to Elton Hills Dr - 400,000 200,000 - - 600,000 22 DMC - 6th St SE Bridge Construction - - - 210,000 - 210,000 23 DMC - 3rd Ave SW - 2nd St SW to 4th St SW - 200,000 - - - 200,000 24 DMC - Rochester Rapid Transit 2nd St SW Recon - 880,000 200,000 - - 1,080,000 25 Willow Heights High Level Booster Station 100,000 - - - - 100,000 26 Center St to 11th Ave NE - - 690,000 - - 690,000 27 Center St to 16th Ave NW - - - 600,000 - 600,000 28 Marion Rd Duct Project 665,000 - - - - 665,000 29 Scenic Oaks Pressure Transient 100,000 - - - - 100,000 30 Allocation - Water Distribution System Expansion 915,000 950,000 1,335,000 1,350,000 2,238,525 6,788,525 31 T&D City Projects 365,000 200,000 385,000 200,000 888,525 2,038,525 32 T&D Developer Projects 150,000 150,000 150,000 150,000 150,000 750,000 33 T&D RPU Projects 400,000 600,000 800,000 1,000,000 1,200,000 4,000,000 34 Total Core Services 4,030,000 4,713,243 6,836,025 5,638,200 4,744,775 5,740,275 27,672,518 36 Well #16 Conversion 50,000 - - - - 50,000 37 Total Compliance & Public Affairs - 50,000 - - - - 50,000 38 Power Resources 39 Water Pickup Truck 67,680 - - - - 67,680 40 Allocation - Fleet 135,360 124,080 293,280 276,360 169,499 998,579 41 Total Power Resources - 203,040 124,080 293,280 276,360 169,499 1,066,259 42 Total External Expenditures 4,030,000 4,966,283 6,960,105 5,931,480 5,021,135 5,909,774 28,788,777 43 Total Internal Expenditures 481,521 357,452 350,417 388,475 338,372 1,916,237 44 Total Contributed Assets 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 5,500,000 45 Less: Water Accessibility Funds (4,030,000) (530,000) (2,500,000) (1,000,000) - (1,575,000) (5,605,000) 46 Less: Bond Funded - - - - - - 47 Net Capital Expenditures - 6,017,804 5,917,557 6,381,897 6,509,610 5,773,146 30,600,014 Water Utility 2023 - 2027 Capital Improvement Plan Rochester Public Utilities Section 4 - Page 2
ROCHESTER PUBLIC UTILITIES 2023 PERSONNEL BUDGET ADOPTED SECTION XIIV Rochester Public Utilities Personnel Budget
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Title Pages Permanent Staff Per Customer Served/Retail Sales 1 Permanent and Temporary Staffing Comparison 2 ROCHESTER PUBLIC UTILITIES 2023 PERSONNEL BUDGET INDEX Section 5
Authorized # Customers $'s of Retail Total Retail Number of Utility Served Per Sales Per Year Service Points Sales $'s Employees Employee Employee 2023 101,811(1) 163,667,168(1) 211(2) 483 775,674 2022 100,609(1) 160,731,438(1) 211(2) 477 761,760 2021 99,386 157,782,929 208 478 758,572 2020 98,503 154,640,308 207 476 747,055 2019 96,849 157,899,357 203 477 777,829 NOTES: Numbers include combined water and electric utilities. 2021 data is 359. (1) Forecasted (2) Staff changes: No potential reclassifications in 2023 Adding no new positions in 2023 for customer size class of 50K-100K customers, is 324. RPU comparison using this criteria and ROCHESTER PUBLIC UTILITIES 2023 PERSONNEL BUDGET Regular Staff Per Customer Served And Dollars of Retail Sales For Electric Utilities, APPA 2019 Retail Customers per Non-Power-Generation Employee Section 5 - Page 1
2022 2022 2023 Difference 2022 % Year Original budget Projected Estimated original to 2023 Change Regular Employees $30,333,271 $28,730,215 $30,133,171 -$200,100 -0.7% Limited-Term Employees $162,918 $173,310 $174,561 $11,643 7.1% Temporary/Contract Labor $730,025 $618,239 $493,390 -$236,635 -32.4% Total $31,226,214 $29,521,764 $30,801,122 -$425,092 -1.4% NOTE: Estimated cost include base salaries, salary increases, overtime, RPU's share of employee pensions, payroll taxes, and benefits. Excludes accrual adjustment for unfunded PERA liability. ROCHESTER PUBLIC UTILITIES 2023 PERSONNEL BUDGET Regular and Temporary Staffing Total Costs Section 5 - Page 2
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ROCHESTER PUBLIC UTILITIES SUPPLEMENTAL DATA CAPITAL/OPERATING BUDGETS ADOPTED SECTION XV Rochester Public Utilities Supplemental Data Capital/Operating Budgets
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Title Pages Electric & Water Rate Increases vs. Inflation 1 Year End Cash Balances 2 RPU Tax and Tax Equivalents 3 ROCHESTER PUBLIC UTILITIES 2023 SUPPLEMENTAL DATA CAPITAL / OPERATING BUDGETS INDEX Section 6
Year Inflation % Electric Rates % Water Rates % SMMPA Rates % 2022* 6.4% 1.5% 2.5% 0.0% 2021 4.7% 0.0% 0.0% 0.0% 2020 1.2% 0.0% 3.5% -4.0% 2019 1.8% 1.9% 6.0% 0.0% 2018 2.4% 1.5% 6.0% 2.0% 2017 2.1% 3.7% 6.0% 6.0% 2016 1.3% 1.7% 6.0% 0.0% 2015 0.1% 3.5% 3.5% 0.0% 2014 1.6% 3.0% 1.5% 0.0% 2013 1.5% 0.0% 0.0% 0.0% 10-Year Annualized Average 2.3% 1.7% 3.5% 0.4% 2023* 2.5% 5.0% 0.0% *Estimated Yearly Values ROCHESTER PUBLIC UTILITIES 2023 CAPITAL / OPERATING BUDGETS ELECTRIC AND WATER REVENUE CHANGE VERSUS INFLATION Section 6 - Page 1
ROCHESTER PUBLIC UTILITIES 2023 CAPITAL/OPERATING BUDGETS YEAR END CASH BALANCES (Millions of Dollars) Year YEAR END CASH BALANCE - ELECTRIC YEAR END REMAINING DEBT PROCEEDS ELECTRIC YEAR END CASH BALANCE - WATER YEAR END REMAINING DEBT PROCEEDS WATER 2012 43.2 8.0 2013* 42.7 25.9 6.6 2014 38.6 15.7 5.7 2015* 41.7 3.1 4.9 2016* 40.8 5.7 2017* 56.8 23.1 7.1 2018 82.3 10.4 2019 88.7 10.5 2020 90.4 12.0 2021 103.8 12.9 2022 94.3 11.8 2023* 87.3 11.6 11.3 2024 89.6 9.6 11.4 2025 95.4 5.1 11.3 2026 111.2 0.9 11.4 2027 115.2 - 12.8 * The Electric Utility has had debt financings of $34 million in December 2000, $9.9 million in August 2002, $5.7 million in March 2005, $76.7 million in March 2007 which included an advance refunding of the 2000 bond issue in the amount of $30.2 million, $6.7 million in September 2009, $4.0 million in February 2013 to refinance the remaining 2002 issue, $38.4 million in May 2013, $39.97 in November 2015 to advance refund the new money portion of the 2007C bond issue, a $25.0 million temporary borrowing in April 2016, $108.3 in February 2017, which included $23.6 million to refund the remaining portion of the 2007C bond issue and $20.9 million to pay off the 2016 temporary borrowing, and $37.17 in February 2021 to advance refund the 2013B bond issue. The Water Utility has had debt financings of $1.5 million in August 2006. There is proposed future debt financings in 2023 of $13.6 million for the Electric Utility for AMI. $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 Dollars (Millions) Year Year End Cash Balances (2012-2021 Actual, 2022-2027 Projected) YEAR END CASH BALANCE - ELECTRIC Section 6 - Page 2
Utility Licenses, Permits & Penalties 305,345 Water Appropriation Fees 63,178 Payment to General Fund Electric 9,606,922 Water 438,287 Total 10,045,209 Sales Tax - Electric & Water 1,029,771 SMMPA Property Taxes ($9,607,995 x 42%) 4,035,358 Total Tax & Tax Equivalents 15,478,860 Electric/Water Retail Sales 163,667,168 % of Electric/Water Retail Sales 9.5% ROCHESTER PUBLIC UTILITIES 2023 CAPITAL / OPERATING BUDGETS RPU ESTIMATED TAX AND TAX EQUIVALENTS Section 6 - Page 3
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