2015 Annual Report
TID crews completed the Lateral 8 Regulating Reservoir - the first reservoir built by the District since the completion of Don Pedro in 1971.
Overview 2015 Established in 1887, TID was the first publicly owned irrigation district in the state and one of only four in California today that also provides electric retail energy directly to homes, farms and businesses. Organized under the Wright Act, TID operates under the provisions of the California Water Code as a special district. TID is also a balancing authority and is governed by a five-member Board of Directors.
Irrigated Acres
Electric Service Territory
2015 Peak Demand
147,943
662 square miles 517.5MW
Miles of Distribution Line
Miles of Transmission Line
Number of Electric Accounts (year end)
2,235
389
101,370
Customers per Mile of Distribution Line
Customers per Mile of Transmission Line
Employees
451
259
451
Bond Ratings
Board of Directors
Standard & Poor’s A+ Fitch A+ Moody’s A2
Michael Frantz Division 1 Charles Fernandes (VP) Division 2 Joe Alamo (President) Division 3 Rob Santos Division 4 Ron Macedo Division 5
Service Area
DON PEDRO LAKE XY
Y X
MODESTO
Y X
Y X
TUOLUMNE RIVER Y X Y X
X
X
Y X
CERES
Y X Y X
Y X
TURLOCK LAKE
Y X
X
Y X
Y X
HUGHSON
Y X
Y X XY
KEYES
X Y X Y X
DENAIR TURLOCK
Y NT OU NTY SC U U O LA DC NIS RCE STA ME
N SA
DELHI BALLICO XY
RIV
5
N UI AQ JO
PATTERSON
ER
HILMAR XY X
Y X
Y X
Y X
Y X
X
Y X
Y X
Y X
Y X
Y X
SANTA CLARA COUNTY
Y X
XY
STANISLAUS COUNTY
R RIVE CED MER XY
XY
H IG
HW AY 99
ELECTRICAL SERVICE AREA IRRIGATION SERVICE AREA
A Letter from the General Manager Throughout 2015, TID was faced with many challenges and uncertainties regarding our energy and water future. However, as the year developed, the District showed its ability to adapt, taking those challenges and shaping them into opportunities. As the historic drought continued, TID was one of the few irrigation districts in the state that was able to provide water to its customers. While the amount of available water was not substantial, it was enough for customers to continue their livelihoods in the hopes of better winters ahead. Recognizing that a dry 2016 was a possibility, TID took the opportunity to construct a project that would seize additional water savings within our canal system. Building on the success of a smaller pilot project at the confluence of Laterals 7 and 8 and the Highline Canal in Hilmar, TID began construction of the Lateral 8 Regulating Reservoir Expansion Project. Working in conjunction with the Lateral 8 Total Channel Control Project, this 25-acre regulating reservoir has the capacity to save 9,000 acre-feet of water in an average water year, and the ability to start entire irrigation heads from the reservoir which increases the level of service for those customers served by Laterals 7 and 8. These projects both show how TID is embracing new technologies to most-effectively manage water resources. Still, we would be foolish to embrace the new without leveraging existing assets. The Don Pedro Hydroelectric Project is set apart from other hydroelectric projects because it operates on a water-first-priority basis. Don Pedro is the lifeblood of our water system, and operating it efficiently is in the community’s best interest. As the end of our 50-year license loomed in 2016, we continued our efforts to relicense the project with the Federal Energy Regulatory Commission. Because of our stewardship, we are hopeful to acquire a new license in the near future. Along with the drought, 2015 brought new legislative challenges, including California’s SB 350, which requires a utility’s Renewable Portfolio Standard be 50 percent renewable by 2030. Although TID has a clean resource mix, our largest source of clean energy, the Don Pedro Hydroelectric Project isn’t able to count towards our Renewable Portfolio Standard. As such, TID didn’t wait for legislation to move; we invested in a 20-year purchase power agreement (PPA) to buy clean, renewable solar power from SunPower. To serve the agreement, SunPower is constructing a 54-megawatt solar photovoltaic power plant at the company’s Rosamond Solar site in Kern County, which is expected to be operational by the end of 2016. The plant is anticipated to generate an equivalent amount of energy to serve approximately 20,000 homes. This PPA will move the District approximately 7 percent closer to meeting California’s 50 percent renewable standard by 2030. No matter the challenge, TID has responsibly managed the resources entrusted to us, and we take every opportunity we can to continue to provide reliable water and power to our customers.
Casey Hashimoto, PE
Historical Operating Statistics (unaudited) 2015
2014
2013
2012
2011
Residential
72,772
72,909
72,366
72,033
71,829
Commercial
7,086
7,090
7,065
6,983
6,968
($ IN THOUSANDS)
AVERAGE CUSTOMERS AT END OF PERIOD:
Industrial
836
830
794
798
780
Other (1)
20,676
20,160
20,046
20,099
20,355
Total
101,370
100,989
100,271
99,913
99,932
Residential
706,945
725,523
716,316
713,915
693,659
Commercial
131,135
130,606
128,154
126,608
124,820
Industrial
766,170
749,864
747,745
738,693
729,239
Other (1)
411,734
399,761
393,316
377,315
346,822
2,015,983
2,005,754
1,985,531
1,956,531
1,894,540
62,565
69,199
68,235
66,846
49,137
1,439,114
1,388,342
1,641,616
1,542,545
1,942,107
3,517,662
3,463,295
3,695,382
3,565,922
3,885,784
Generated by district
2,267,333
2,257,182
2,214,620
2,305,959
2,369,260
Purchased
1,319,345
1,281,089
1,563,500
1,350,643
1,618,465
Subtotal
3,586,678
3,538,271
3,778,120
3,656,602
3,987,725
69,016
74,976
82,738
90,680
101,941
3,517,662
3,463,295
3,695,382
3,565,922
3,885,784
$113,282
$114,169
$109,790
$106,946
$100,655
Commercial
18,540
18,319
17,756
16,759
15,998
Industrial
91,521
87,318
85,711
80,006
75,891
Other (1)
55,190
52,226
50,453
45,117
41,571
(16,424)
3,093
(12,112)
425
(36,586)
MWh SALES:
Total Retail Interdepartmental meters Wholesale Power Total
SOURCES OF MWh:
System losses Total
ELECTRIC ENERGY REVENUES: (IN THOUSANDS) Residential
Power Supply Adjustment Recognized (Deferral)
262,109
275,125
251,598
249,253
197,529
Electric Service Charges
Total Retail Energy
470
497
488
358
408
Other Electric Revenue
78
77
76
81
74
Electric Energy Retail
262,657
275,699
252,162
249,692
198,011
Wholesale Power Total
SYSTEM PEAK DEMAND (MW)
50,973
64,341
73,460
49,115
69,334
$313,630
$340,040
$325,622
$298,807
$267,345
517
510
527
516
491
AVERAGE MWh SALES PER CUSTOMER FOR THE PERIOD Residential
9.715
9.951
9.899
9.911
9.657
Commercial
18.506
18.421
18.139
18.131
17.913
916.471
903.451
941.744
925.680
934.922
Residential
$160.24
$157.36
$153.27
$149.80
$145.11
Commercial
$141.38
$140.26
$138.55
$132.37
$128.17
Industrial
$119.45
$116.45
$114.63
$108.31
$104.07
$0.07195
$0.080
$0.070
Industrial
AVERAGE REVENUE PER MWh FOR THE PERIOD
AVERAGE COST OF POWER PER KWh FOR RETAIL LOAD(2)
(1) Includes agricultural and municipal water pumping, street lighting, and interdepartmental meters. (2) Includes depletion and depreciation on generation assets, excludes debt service. (3) Revised to reflect natural gas sales and depletion (4) Revised to reflect PG&E pipeline depreciation. (5) Added A2PP and A2PP pipeline depreciation
(3)
$0.073
(3)&(5)
$0.063
(3)
Historical Results of Operations (unaudited) ($ IN THOUSANDS)
2015
2014
2013
2012
2011
OPERATING REVENUES: Electric energy - Retail Electric energy - Wholesale Wholesale Gas Irrigation Other Total Operating Revenue
$262,657
$275,699
$252,162
$249,692
$198,011
50,973
64,341
73,460
49,115
69,334
2,898
17,061
12,391
5,121
13,941
14,311
7,758
8,438
7,606
7,445
1,640
4,293
3,944
3,700
3,538
332,479
369,152
350,395
315,234
292,269
73,466
OPERATING EXPENSES: Power Supply: Purchased Power
55,202
63,926
68,505
64,158
Generation and Fuel
97,656
121,951
107,391
94,948
92,539
Total Power Supply
152,858
185,877
175,896
159,106
166,005
Other Electric O&M
23,330
22,730
23,506
19,561
19,732
Irrigation O&M
11,294
11,828
12,623
11,943
11,161
Public Benefits
6,119
6,962
6,908
5,012
4,614
21,135
21,640
20,528
20,703
19,962
Administration and General Loss of disposal of utility plant
-
-
2,438
5,634
-
Depreciation and amortization
62,515
70,442
64,496
53,152
50,109
277,251
319,479
306,395
275,111
271,583
55,228
49,673
44,000
40,123
20,686
Total Operating Expenses
OPERATING INCOME OTHER INCOME (EXPENSE): Interest/Derivative (loss)gain Miscellaneous Total Other Income
3,668
1,271
562
2,548
5,218
13,851
9,357
9,119
8,267
8,187
17,519
10,628
9,681
10,815
13,405
53,000
57,338
59,996
54,687
50,547
-
-
-
-
-
19,747
2,963
(6,315)
(3,749)
(16,456)
304,009
310,324
314,073
330,529
$296,095
$306,972
$304,009
$310,324
$314,073
2.81x
2.35x
2.83x
2.42x
2.82x
INTEREST EXPENSE Long Term Debt
TRANSFER (TO) FROM DEFERRED REGULATORY CREDITS NET INCOME (LOSS) RETAINED EARNINGS: BEGINNING OF YEAR END OF YEAR
276,348
(3)
DEBT SERVICE COVERAGE REVENUE BONDS/COP'S
(1) Walnut Energy Center went commercial 2/28/06. (2) Electric Rate Stabilization transfer of $8,000 ‘(3) Government Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Report for Pensions, was a adopted in 2015 and as a result beginning of year Net Position was restated as of January 1, 2015
Management Team Casey Hashimoto
General Manager
Assistant General Managers Joseph Malaski Larry Gilbertson Tou Her Brian LaFollette
Financial Services & CFO Electrical Engineering & Operations Water Resources Power Supply
Advisors
Griffith & Masuda Orrick, Herrington & Sutcliffe LLP PricewaterhouseCoopers LLP Public Financial Management, Inc. SAIC Energy, Environment & Infrastructure, LLC
General Counsel Bond Counsel Independent Accountants Financial Advisor Consulting Engineers