6.1. ERMUSR 08-12-2014 - Laserfiche WebLink

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Financial Highlights Year-Ending Rate Year-Ending Unrestricted Cash Stabilization Balance in thousands of dollars in thousands of dollars 40,000 — 30,000 _ S41,Q35 $29,300_ 35,000 --- - 25,000 -- 30,000 $33,443 - 20,000 .— - 25,000 --- _ $21,500 15,000 __ 20,000 — $21,950 15,000 -- 10,000 _ $11 500 10,000 5,000 5,000 -- 0 — 0 __ 2011 2012 2013 2011 2012 2013 Rate Stabilization Fund Strong Cash Position At the end of 2013, the rate stabilization fund MMPA's cash position strengthened in 2013, balance was $29.3 million. This gives the with the Agency ending the year with more Agency financial flexibility and the ability to than $41 million of unrestricted cash and cash set rates to members based on long-term equivalents. MMPA had an increase in unrestricted energy price expectations. MMPA maintains its cash of more than $7 million during the year. rate stabilization fund with the goal of avoiding The Agency's cash balance at the end of 2013 volatile price changes to members. represented more than three months of operating The Agency budgets an annual contribution to expenses and interest expense. MMPA also has the rate stabilization fund and makes further a $5 million line of credit with U.S. Bank that additions to the fund based on financial results. provides additional liquidity. 2013 Bond Issue Net Income in thousands of dollars MMPA issued $18 million of electric revenue 6,000 bonds in the fall of 2013 to finance the Home- $6,062 town BioEnergy project. As part of the bond 5,000 --- $5,200 - issue, MMPA obtained an A rating with a stable 4,000 outlook from Fitch. Moody's maintained its A3 $3,996 rating for MMPA while improving the Agency's 3,000 -- outlook from stable to positive. 2,000 1,000 ---- o 2011 2012 2013 2013 MMPA Annual Report 7