6.1a ERMUSR 02-08-2022andare Trust, Conflict(the productive kind), Commitment, Accountability, and
Attention to Results.If you haven’t read the book, I highly recommend it. It is a very
easy read and not too long either.
ATTACHMENTS:
MMPA 2021 Review
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Page 2 of 2
81
1
82
2021 Review
January 25, 2022
2
83
Outline
¤Business Environment¤Strategy¤2021 Operations¤2021 Financial Results
3
84
Business Environment
¤Climate Is Changing¤COVID Disrupting Economy¤High Inflation¤High US Natural Gas Prices¤High World Natural Gas Prices
4
COLDER
WARMER
Projection
85
Historical
Summers Are Getting Hotter
1980198519901995200020052010201520202025203020352040
0
800600400200
1,2001,000
Cooling Degree Days
5
COLDER
WARMER
Projected
86
Historical
1980198519901995200020052010201520202025203020352040
0
Winters Are Getting Warmer
9,0008,0007,0006,0005,0004,0003,0002,0001,000
10,000
Heating Degree Days
6
87
ÎSet Peak Demand RecordÎFirst Time on Record
More Extreme Weather Events
¤February Cold ¤June Heat¤December Tornado in Minnesota
7
88
COVID Disrupting Economy
ÎQuits Rate 14.4% Over Last Five MonthsÎUnemployment Rate: 3.9%
¤Labor Markets ¤Supply Chain Challenges¤Management Challenges
2021
2020
8
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999 89
1998
1997
1996
1995
Annual Change in CPI-U
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
Highest Inflation in 40 Years
1981
9.0%8.0%7.0%6.0%5.0%4.0%3.0%2.0%1.0%0.0%
10.0%
9
20172018201920202021
90
Annual Henry Hub Average Spot Gas Price
High Natural Gas Prices
20062007200820092010201120122013201420152016
-
9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00
10.00
$ per MMBtu
10
91
Strategy
ÎGlobal WarmingÎMany Utilities Have Adopted 100% GoalÎSome Customers Want ItÎRegulation
¤Board Planning Activity¤Identified Need for Approach to 100% Renewable
11
92
2021 Operations
ÎBecause of Low LMPs
¤FEP Performance Similar to Prior Years¤Other Gas Resources Generated More¤Large Increase in HTBE Production¤OGWF Output Dropped
12
BSF
BOGWF
HTBE
93
OGWF
SEP
MRS
FEP
20172018201920202021
Total MMPA Generation
-
800,000 600,000 400,000 200,000
1,400,000 1,200,000 1,000,000
13
94
2021 Financial Results
¤Rates Below Xcel¤Net Income Is Good¤Cash Is Sufficient¤Coverage Is Very Good
14
Xcel
95
MMPA
2015201620172018201920202021
-
MMPA-Xcel Rate Comparison
90 80 70 60 50 40 30 20 10
100
$ per MWh
15
96
Net Income ($ 000)
2015201620172018201920202021
-
5,000
40,000 35,000 30,000 25,000 20,000 15,000 10,000
$ 000
16
97
Year-End Unrestricted Cash
20142015201620172018201920202021
0
908070605040302010
$ MIllions
17
98
Year-End Debt Outstanding
20142015201620172018201920202021
0
50
350300250200150100
$ Millions
18
99
Debt Service Coverage
2015201620172018201920202021
Bond Indenture Requirement
2.602.402.202.001.801.601.401.201.00
100
UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Melissa Karpinski –FinanceManager
MEETING DATE: AGENDA ITEM NUMBER:
February 8, 2022 6.1c
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
Bond payments due February 1 totaling $1,553,541.91 have been paid. These are: a
water bond that matured on February 1; one refunding of electric bonds that matured
onFebruary 1; the bonds from 2016 and 2018 for our Minnesota Municipal Power
Agencybuy-in maturing in 2036 and 2048, respectively; 2021 electric bond and 2021
water bond for the new field services building maturing in 2051 and 2041, respectively.
The accounting department has been busy preparing for the2021 annual audit. Our
auditors from Abdo will be completing the audit field work March 3-4. This part of the
audit will be performed remotely.
We have received quite a few of our annual surveys that will be completed in the
upcoming months.
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