Bryan Texas UtilitiesBoard of Directors

2009 BTU

Annual Report

The BTU Board was created in 2001 by Ordinance of the Bryan City Council to oversee the operations of the electric utility.

The seven-member board is appointed by the City Council and must possess specific experience for each position such as accountant, attorney, engineer or marketer.

left to right: Carl L. Benner, Emanuel Glockzin Jr.,Mark Carrabba, Hank McQuaide, Ralph Davila, L. Gene Kornegay, Bill Atkinson

2009 BTUAnnual Report

Bryan Texas UtilitiesBoard of Directors

Hank McQuaideChairman

L. Gene KornegayVice Chairman

Ralph DavilaBill Atkinson

Emanuel Glockzin Jr.Secretary

Mark CarrabbaCarl L. Benner

Letter from the General Manager

I want to begin by saying how proud I am of every BTU employee for the work they have done the past year. The circumstances under which they have worked have been very taxing as regulatory rule changes have created new burdensome tasks. Red Flag Rules in Customer Service were instituted to protect customer identity. Federal Reliability Standards, with hefty fines attached, have stretched our transmission, distribution, and generation employees to write new operating guides and document our compliance. A new statewide power pricing mechanism, known as the Nodal Market, requires our operators at the Qualified Scheduling Entity to learn all new rules for generation operation.

BTU employees have completed these tasks and many more while at the same time keeping electric rates among the lowest in the state of Texas, reliability the highest among all southern utilities, and financial strength for the long haul. When you see a BTU employee at work in the community, I would ask you to remember what a great job they do for you twenty-four hours a day, seven days a week, when power needs to be there.

Dan WilkersonGeneral Manager

2009 BTUAnnual Report

BTU System Reliability Remains High

BTU takes the responsibility of serving customers with reliable electric power very seriously and the numbers prove it! We track specific information in all departments for a variety of reasons and one of the areas we closely track and report is system reliability. Reliability is a significant component of any utility’s ability to measure long-term electric service. Because of its importance, standard measurements and reporting benchmarking tools are used at each utility to determine system reliability. The two most common reports are:

SAIFI – System Average Interruption Frequency Index, andSAIDI – System Average Interruption Duration Index

SAIFI is the average number of times a customer is interrupted over a specified time period. It is determined by the total number of customer interruptions divided by the total number of customers served; it is measured in “interruptions per customer” and is calculated on a monthly basis. BTU has an excellent record of reliable service in both the city and rural service areas. The BTU SAIFI number in the city in 2009 was .1882 interruptions per customer and the SAIFI number for the same period in the rural area was .6801. Both of these numbers compare very well to the American Public Power Association average for other municipal utilities of .88 interruptions per customer. BTU has continued to keep these numbers low for years, the 5 year SAIFI average in the city is .3534 and in the rural is .7476.

The indicator of the average outage duration is SAIDI. SAIDI is a measure of time, generally minutes or hours, of the outage duration of each customer served. Again, just like SAIFI, BTU has an excellent SAIDI record. In 2009, the SAIDI number in the city was 10.835 minutes and in the rural area 43.0578 minutes. SAIDI is calculated by the sum of all customer interruption durations divided by the total number of customers served. In comparison, the American Public Power Association 2009 average was 68.98 minutes of time per customer for outages. As you can see again, BTU fairs very well to other municipal utilities.

Taken together, these numbers indicate that an average BTU customer has an outage of about 20 minutes every two or three years. These numbers are low and to maintain that BTU takes many steps to keep power interruptions to a minimum; maintaining a three-year rotating tree trimming schedule is important, as is patrolling lines. But, we are able to do only so much preventative work, outages will occasionally occur due to inclement weather, animal causes, vehicular accidents and other uncontrollable reasons. No matter the cause of the outage, BTU responds quickly and restores service as efficiently as possible. Our numbers prove it!

2009 BTU

Annual Report

The

Family

Food For Families

BTU is well represented in our community by its employees who work at the annual Food for Families Drive. In addition, BTU donated $1,000 to help feed families in the Brazos Valley.

Each year, BTU proudly sends four of the area’s best students to Washington D.C. to represent our community. The participants are selected each year based on the results of an essay contest.

The candidate search begins in January of each year and by April the winners are announced. In June, the four selected winners begin their one week journey and fellowship in our nation’s capital.

The action packed week takes the students to such sites as the Smithsonian Museums, Washington and Lincoln Memorials, Arlington National Cemetery, the Supreme Court, and many others. While in Washington D.C., the students will also get to speak to their Congressman.

Youth Tour 2009

Haley NicholsSt. Joseph

Chris GillarSt. Joseph

John MayoA&M Consolidated

Stacie BoneBryan Collegiate High

2 0 0 9 B T U C A L E N D A R

WWW.BTUTILITIES.COM

BRYAN TEXAS UTILITIES

BTU Kids Calendar 2009

January February March April

May June July August

September October November December

BTU was proud to present the first annual Dansby Duo, a bike and run Duathlon. This event highlights Lake Bryan and promotes a healthy lifestyle for our community. Well over 100 local participants came out and enjoyed the beautiful lake surroundings, music, awards and fun atmosphere.

245 mountain bike racers braved the elements and tested their bikes ability to withstand the mud at BTU’s 17th annual Power Pedal.Despite the muddy conditions, the event was a success as money was raised for Kingdom Ranch, a local non-profit Christian summer camp that serves special needs children and their siblings. Power Pedal is our local celebration of Public Power Week, a country-wide program to celebrate the importance of public power to local citizens.

5k run-12 mile bike-5k runMarch 29, 2009

2009 BTU

Annual Report

BTU’s Dansby Duo

Power Pedal 2009

The Texas Lineman’s Rodeo Association Inc. (TLRA) is a nonprofit organization created to offer line workers in Texas a way to showcase their pride in the profession of high-voltage line work.

BTU’s 100th Year Celebrationand Dedication of Dansby Power Plant Unit 3

Wednesday, October 7, 2009

Giving Back

2009 BTUAnnual Report

Helping

BTU employees work hard every day and are very dedicated to giving our customers the highest level of customer service possible. BTU employees are also very involved in our communities in the Brazos Valley. Listed below are just a few of the many ways they reach out and contribute to the well-being of our communities and make a positive, lasting impact on those they serve with, volunteer with and help.

4HAlpha Delta Pi

A&M United Methodist Church

ASA Certified Umpire

BCS Apartment Association

BCYLS

BTU Dansby Duo

BTU Power Pedal

Band Chaperone

Baptist Church

Blood Donor

Booster Club for Rudder High School

Boys & Girls Club

Boy Scouts

Brazos County A&M Club Member Brazos Valley Food Bank

Brazos Valley Mountain Bikers Association

Calvert FFA Member

Challenge Club (helping teenage girls)

Chamber of Commerce

Church Festival Carnival Volunteer

Coach Little League

Coalition For Life

Coordinator for Neighborhood Garden Projects

Deacon at New Zion Missionary Church

Deacon at Wellborn Baptist Church

Downtown Bryan Economic Development Association

Food For Families Food Drive

Habitat for Humanity Hearne 4-H Leader

Hockey Referee

Homeless Families Volunteer

HOSTS Mentor

Junior League

Knights of Columbus

Lions Club

Local Business Owner

Member of Houston Livestock Show

Mexican Astronomy Society

North Bryan Community Center

Northeast Texas Forest Landowners Association

Northwest Aquatic League Swim Meet Official

Parkway Baptist Church Kids Game Night Director

Peace Lutheran Church Council President of the Home Owners Association

President of USBC

Provide Meals for 150 Kids

PTO

Relay for Life

Reserve for the Bryan Police Department

Robertson County Go Texan

School Career Day

Scout Master

Senior Games

Soccer Coach

Stampede for Need

Sunday School Teacher for A&M Church of Christ

Sunday School Teacher for Bethel Lutheran Church

Sunday School Teacher for Wellborn Baptist Church

TAMU Association of Former Students

TAMU Foundation Legacy Society

Texas Aggie Band Association

Texas Mountain Riders Association

Umpire for Little League

United Methodist Men’s Member

United Way

Usher for Church

Volunteer for Covenant Family Church

Vice President for Bethune Women’s Club

Vice President for Home Owners Association

Vice President for Rangers Club

Worship Leader for A&M Church of Christ

Auctioneer

Collector

Cycling

Fishing

Gardening GolfHunting

Marathons

Running

SCUBA Diving

Sports

Traveling

Water Skiing

WoodworkVolunteering

Community Partners

2009

$ 42,001,023 197,239,937 43,871,847

1,124,356 284,237,163

10,562,788 6,860,604

88,272,030 105,695,422

111,139,619 25,952,587 41,449,535

$ 178,541,741

$ 149,544,637

129,604,221 7,678,682

12,261,734 22,944,743 35,206,477 (6,856,431)

(35,372,924) (6,479,735)

(25,851,213) (39,353,826)

57,269,389 $ 17,915,563

City Electric System Condensed Financial StatementsFor the Fiscal Years Ended September 30, 2009 and 2008

2008

$ 43,835,353 168,720,478 71,839,488

728,827 285,124,146

12,000,832 6,146,666

90,839,919 108,987,417

102,408,085 31,349,830 42,378,814

$ 176,136,729

$ 155,748,711

141,968,938 6,506,072 7,273,701 1,391,491 8,665,192

(5,723,297) (61,679,506)

28,017,034 27,291,359 (3,429,218) 60,698,607

$ 57,269,389

Condensed Statements of Net Assets

Current assets Capital assets, net Restricted assets Other Total assets

Current liabilities Current liabilities payable from restricted assets Noncurrent liabilities Total liabilities

Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets

Consolidated Statement of Revenues, Expenses and Cash Flows Operating revenues Operating expenses Depreciation Operating income Net adjustments and changes in financial position Net cash provided by operating activities Net transfers Capital and prepaid power expenditures Proceeds (uses) from capital debt and other financing activities Net cash (used) provided by investing activities Net increase (decrease) in cash Balance - beginning of year Balance - end of year

2009 BTU

Annual Report

Condensed Statements of Net Assets

Current assets Capital assets, net Restricted assets Other Total assets

Current liabilities Current liabilities payable from restricted assets Noncurrent liabilities Total liabilities

Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets

Consolidated Statement of Revenues, Expenses and Cash Flows Operating revenues Operating expenses Depreciation Operating income Net adjustments and changes in financial position Net cash provided by operating activities Capital expenditures, net of financing Proceeds (uses) from capital debt and other financing activities Net cash (used) provided by investing activities Net increase (decrease) in cash Balance - beginning of year Balance - end of year

2009

$ 7,368,680 38,006,419 4,023,799

342,264 49,741,162

3,454,387 921,100

6,165,652 10,541,139

35,016,618

37,500 4,145,905

$ 39,200,023

$ 30,996,152 27,889,698 1,542,160 1,564,294 5,432,081 6,996,375

(4,075,862) (360,701)

(2,973,021) (413,209) 5,553,049

$ 5,139,840

2008

$ 7,090,108 36,231,685 4,651,025

227,662 48,200,480

3,118,055

481,464 6,741,035

10,340,554

34,173,796 22,450

3,663,680 $ 37,859,926

$ 28,975,229 26,118,134 1,411,649 1,445,446

(3,165,746) (1,720,300) (6,239,689)

5,968,986 5,238,388 3,247,385 2,305,664

$ 5,553,049

Rural Electric System Condensed Financial StatementsFor the Fiscal Years Ended September 30, 2009 and 2008

2009 BTUAnnual Report

General Information

Customer Service

Power Outage

Line Design

Toll Free Number

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Energy Related Questions

Website

Email

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Lobby

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Bryan Texas UtilitiesContact Information

979-821-5715

979-821-5700

979-822-3777

979-821-5770

1-877-363-7448

979-821-5940

979-821-5715www.btutilities.com

UCISMan@btutilities.com

Monday - Friday, 7 a.m. – 6 p.m.

Monday – Friday, 7:30 a.m. – 6 p.m.

Physical Address

Mailing Address

205 E. 28th St.Bryan, TX 77803

P.O. Box 1000Bryan, TX 77805