access to capital meeting
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Access to Capital Meeting. June 4, 2013 Denver, CO. Agenda. Welcome & Opening Remarks Mark Demonstrating the Need Wendy Regional Meeting Summary Linda Next Steps Mark Path Ahead All. Opening Remarks. Recent Developments Federal Outlook - PowerPoint PPT PresentationTRANSCRIPT
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Access to Capital Meeting
June 4, 2013Denver, CO
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Agenda
• Welcome & Opening RemarksMark
• Demonstrating the NeedWendy
• Regional Meeting SummaryLinda
• Next Steps Mark• Path Ahead All
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Opening Remarks
• Recent Developments• Federal Outlook OMB Letter to Agency Heads, dated May 29, 2013
“Your 2015 budget submission to OMB should reflect a 5 percent reduction below the net discretionary total provided…in the 2014 Budget….and also include additional reductions…to bring your overall submission 1 0 percent below…the 2014 Budget.”
Source: http://www.whitehouse.gov/sites/default/files/omb/memoranda/2013/m-13-14.pdf
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• Providing access to hydro power at cost for preference customers
• Ensuring continued safe and reliable operations
• Meeting legislated and regulatory mandates
• Effective use of the transmission resource
BALANCING CUSTOMER AND WESTERN’S NEEDS
Safety, Security,
Reliability Strategic/ Technical
Leadership
Regulatory Requirements
Customer Partnership
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Human Capital ROI: What does it mean
• Measures the effect of our organization’s human capital contribution to financial performance as a ‘return on capital invested in pay and benefits’ for all full-time labor.
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Value-Added Performance
• G&A: 5-Yr increase of 17%; 4.84% annually over 10 years
• G&A averaged only ~8% of total operating costs
• Revenue/FTE: averaged $638K (Note: As a public entity, one indicator of productivity is revenue relative to FTE; as opposed to a profit margin financial measure often used by private sector entities)
• HC ROI: Increased 62% (FY-12, 186%; FY-08 124%)
• Bottom Line Rate Impact: Reduced 6.5% (FY-12, $28.68 per/MWh; FY-08 $30.65 per/MWh) 6
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Demonstrating the Need
Wendy ShatfordComptroller
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Capital Construction by Power ProjectBased on revised regional capital plans as of March 2013
Includes Construction and Rehabilitation Program (C&R) activities only. Does not include capitalized O&M or Program Direction expenses in Western’s CROM appropriation acct, Revolving Fund accounts (CRSP, Ft. Peck), or the Boulder Canyon Project.
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Capital Construction Need by RegionBased on revised regional capital plans as of March 2013
Includes Construction and Rehabilitation Program (C&R) activities only. Does not include capitalized O&M or Program Direction expenses in Western’s CROM appropriation acct, Revolving Fund accounts (CRSP, Ft. Peck), or the Boulder Canyon Project.9
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Capital Construction NeedBased on revised regional capital plans as of March 2013
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Regional Meeting Summary
Linda KimberlingChief Financial Officer
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What We Heard
• No proven “need” for additional capital• Existing funding mechanisms are sufficient• A Western-Wide solution is unnecessary • Adamantly opposed to new legislation• No workable Western-wide governance structure • Preference customers are being “taxed” to support
the needs of the Open Access Transmission Tariff
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Next Steps
Mark GabrielAdministrator
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On The Horizon
• Strategy & Roadmap
• Robust Asset Management Plan
• Customer & Stakeholder Engagement
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Paving the Path Ahead
• Open Discussion
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