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Projected Operating Results Existing Rates
<br />
<br />Cash Reserves
<br />unrestricted cash
<br />reserves for the Study Period is shown at the end of Exhibit 2-A and in Table 2-4 below.
<br />As shown below, under existing retail rates and estimated revenue requirements over the
<br />Study Period, the unrestricted cash reserves for the electric utility are projected to
<br />decrease from approximately $14.9million at the end of 2019 to approximately $2.6
<br />million by the end of 2024. Also shown in Table 2-4 is the reserve balance goal based
<br />on ERMU policy. The end of year reserve balance is projected to decrease from 173%
<br />of reserve goal to 31% of reserve goal.
<br />
<br />
<br />
<br />Year
<br />20202021202220232024
<br />Beginning Balance $14,881,922 $12,714,089 $10,749,338 $8,067,046 $5,729,322
<br />Plus Change in Net Position 1,066,189 461,714 (1,074,594) (1,450,833) (1,973,230)
<br />Plus Depreciation
<br /> 3,030,678 3,182,035 3,685,551 3,799,110 3,894,243
<br />Plus Bond Proceeds
<br /> - 11,250,000 - - -
<br />Less Capital Improvements
<br /> (4,540,700) (15,105,500) (3,406,750) (2,854,000) (3,332,200)
<br />Less Loss of Revenue Pmts
<br /> (800,000) (800,000) (800,000) (800,000) (800,000)
<br />Less Debt Principal
<br /> (924,000) (953,000) (1,086,500) (1,032,000) (966,000)
<br />Ending Balance $12,714,089 $10,749,338 $8,067,046 $5,729,322 $2,552,136
<br />Reserve Goal $7,362,998 $8,212,108 $8,099,589 $8,136,525 $8,275,657
<br />Reserves as % of Goal 173% 131% 100% 70% 31%
<br />
<br />-7-
<br />151
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