TURLOCK IRRIGATION DISTRICT
2016 ANNUAL REPORT www.tid.org
TID OVERVIEW Established in 1887, the Turlock Irrigation District (TID) was the first publicly owned irrigation district in the state and is one of only four in California today that also provides electric retail energy directly to homes, farms and businesses. Organized under the Wright Act, the District operates under the provisions of the California Water Code as a special district. TID is governed by a five-member, locally elected Board of Directors. TID delivers irrigation water through 250 miles of a gravity-fed canal system that irrigates approximately 150,000 acres of farmland. In addition, TID owns and operates an integrated and diverse electric generation, transmission and distribution system that serves more than 100,000 customer accounts within a 662 square-mile area. TID is one of five California Balancing Authorities and operates independently within the Western United States power grid.
TID MISSION TID will provide reliable and competitively priced water and electric service, while being good stewards of our resources and providing a high level of customer satisfaction.
147,901
662
Irrigated Acres
307
Irrigation Service Area (in square miles)
39
Customers per Mile of Distribution Line
226
Customers per Mile of Transmission Line
2
2,190
Electric Service Area (in square miles)
Miles of Distribution Line
379
525
Miles of Transmission Line
Peak Demand (in megawatts)
455
Number of employees
101,857
Number of Electric Accounts (at year end)
FROM THE GENERAL MANAGER
T
hroughout 2016, TID found itself facing new challenges. However, much as the District has done in the past, TID found a way to push ahead with prudent planning and innovation. As TID found itself on the better side of the historic drought, new challenges and obstacles arose in the District’s ability to provide water to our customers. After years of waiting, the State Water Resources Control Board recirculated its Draft Substitute Environmental Document (SED) as part of Phase 1 of the Bay-Delta Plan in September 2016. Under the proposal, the District would be required to release 40 percent unimpaired flows to the Tuolumne River from Don Pedro Reservoir. In response to the SED, TID partnered with Modesto Irrigation District and launched Worth Your Fight – a public awareness and advocacy campaign – to inform customers of the impacts of the proposal. We are incredibly thankful for the thousands of customers who put up signs, signed the petition, wrote letters or made comments at public hearings. While the comment period has come and gone, the District is continuing to work to protect the water our region relies on and improve upon our stewardship of the Tuolumne River. There are always new opportunities when managing water and power resources. Following the passage of California’s SB 350 in 2015, which requires a utility’s Renewable Portfolio Standard be 50 percent renewable by 2030, TID has continued to leverage its resources in this area. TID has positioned itself as a large, important member of the local community. For years, TID has been the lifeblood for the area and with new emphasis in recent years is finding ways to give back to the community through events, sponsorships and presentations. As you read this publication, you will notice metrics that support this claim. No matter the obstacle, TID has managed the resources entrusted to us and will continue to build a better balance between all our resources – water, power, and the communities we serve.
Casey Hashimoto, PE
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2016 Community Highlights More than 51 TID employees attended or participated in at least 76 community events
The TID Community Sponsorship Program sponsored local events and programs in
excess of $21,000
More than 400 TID customers attended the Public Power Week event at TID to exchange old light bulbs and learn about the importance of the public, not-for-profit power provided by TID.
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2 400
Pool Passes
were distributed to children as part of TID’s 2016 Pool Pass Program to encourage swimming in designated safe places instead of canals.
TID staff and equipment helped in a May cleanup effort on the Tuolumne River in Modesto, assisting in the removal of 79 abandoned tires, about 20 shopping carts and other trash and debris.
TID partnered with the Stanislaus County Fair to help provide a shaded rest area for 4-H and FFA students, offering free charging stations for mobile devices, as well as 250 mini cooling fans and 250 earbuds as giveaways for the students. All told, TID helped provide about 100 hours of shade for students working at the Fair.
TID 30-second water safety videos featuring Dexter Duck ran prior to films in the Turlock 14 Cinemas for a total of 12 weeks during
TID’s aquatic biologist taught more than 21 elementary school classes about the Chinook salmon life cycle and helped hundreds of children release salmonids to local rivers in the spring.
the summer.
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Worth Your Fight was an unprecedented joint Turlock Irrigation District-Modesto Irrigation District advocacy campaign devoted to informing TID and MID customers about the potential negative impacts associated with Phase 1 of the State Water Resources Control Board’s (SWRCB) Bay-Delta Water Quality Control Plan (Bay-Delta Plan).
KEY CAMPAIGN ELEMENTS Signage / Printed Materials / Print Advertising 400 large signs distributed by TID and 6,000 SED Fact Sheets developed for campaign use.
Website
Total Facebook reach of 678,276 people with 1,025,029 impressions.
Email Marketing
56,366 page views.
17 Worth Your Fight Weekly Update emails distributed during campaign.
E-petition
Radio Advertising
Total of 6,589 petitions submitted to the SWRCB on March 17, 2017.
Resolutions, Presentations and Meetings 5 cities/counties adopted formal resolutions opposing the SWRCB Phase 1 SED.
Earned Media More than 269 unique articles published related to the Phase 1 SED.
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Social Media / Facebook Advertising
Worth Your Fight 15-second traffic advertisements ran in fall and winter 1,235 total 15-second runs.
Paid Video
Two videos were developed to aid the Worth Your Fight campaign.
Employee Communication
Communicating to TID employees and growing them as outreach advocates was essential to the Worth Your Fight campaign.
2016 Energy Efficiency
$
In 2016
TID implemented (1) Non-Residential rebate & (6) Residential Programs
1,369
564
Residential customers exchanged incandescent bulbs for LEDs
residential customers
received rebates
An average of 66,305 residential customers received Home Energy Analysis reports
84 Non-Residential customers
44 Non-Residential customers took advantage
4,850,010 kWhs*
1,427,897 kWhs*
received rebates saving
of our LED direct install program, saving
Total savings for 2016 = 13,354,051 kWhs* * kWhs =kilowatt hours. A kilowatt hour is a measure of electrical energy equivalent to the power consumption of 1,000 watts for one hour 7
Financial Statistics HISTORICAL RESULTS OF OPERATIONS (UNAUDITED) 2016
2015
2014
2013
2012
$257,495
$262,657
$275,699
$252,162
$249,692
Electric energy - Wholesale
41,140
50,973
64,341
73,460
49,115
Wholesale Gas
5,041
2,898
17,061
12,391
5,121
Irrigation
13,023
14,311
7,758
8,438
7,606
($ IN THOUSANDS) OPERATING REVENUES: Electric energy - Retail
Other Total Operating Revenue
1,637
1,640
4,293
3,944
3,700
318,336
332,479
369,152
350,395
315,234
53,615
55,202
63,926
68,505
64,158
OPERATING EXPENSES: Power Supply: Purchased Power Generation and Fuel
76,808
97,656
121,951
107,391
94,948
Total Power Supply
130,423
152,858
185,877
175,896
159,106
Other Electric O&M
26,932
23,330
22,730
23,506
19,561
Irrigation O&M
13,336
11,294
11,828
12,623
11,943
Public Benefits
5,841
6,119
6,962
6,908
5,012
Administration and General
23,707
21,135
21,640
20,528
20,703
-
-
-
2,438
5,634
Loss of disposal of utility plant Depreciation and amortization
64,691
62,515
70,442
64,496
53,152
Total Operating Expenses
264,930
277,251
319,479
306,395
275,111
OPERATING INCOME
53,406
55,228
49,673
44,000
40,123
OTHER INCOME (EXPENSE): Interest/Derivative (loss)gain
2,056
3,668
1,271
562
2,548
Miscellaneous
10,512
13,851
9,357
9,119
8,267
Total Other Income
12,568
17,519
10,628
9,681
10,815
Long Term Debt
51,255
53,000
57,338
59,996
54,687
NET INCOME (LOSS)
14,719
19,747
2,963
(6,315)
(3,749)
BEGINNING OF YEAR
296,095
276,348 (1)
304,009
310,324
314,073
END OF YEAR
$310,814
$296,095
$306,972
$304,009
$310,324
2.91x
2.81x
2.35x
2.83x
2.42x
INTEREST EXPENSE:
NET POSITION:
DEBT SERVICE COVERAGE REVENUE BONDS - OVERALL (BOND RESOLUTION)(2)
(1) Government Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Report for Pensions, was a adopted in 2015 and as a result beginning of year Net Position was restated as of January 1, 2015. (2) Balance Available for Debt Service, divided by Total Debt Service.
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HISTORICAL OPERATING STATISTICS (UNAUDITED) 2016
2015
2014
2013
2012
Residential
73,029
72,772
72,909
72,366
72,033
Commercial
($ In thousands) AVERAGE CUSTOMERS AT END OF PERIOD:
7,148
7,086
7,090
7,065
6,983
Industrial
866
836
830
794
798
Other (1)
20,814
20,676
20,160
20,046
20,099
101,857
101,370
100,989
100,271
99,913
Residential
714,966
706,945
725,523
716,316
713,915
Commercial
128,568
131,135
130,606
128,154
126,608
Industrial
774,467
766,170
749,864
747,745
738,693
Total MWh SALES:
Other (1) Total Retail Interdepartmental meters
382,287
411,734
399,761
393,316
377,315
2,000,288
2,015,983
2,005,754
1,985,531
1,956,531
58,883
62,565
69,199
68,235
66,846
Wholesale Power
1,260,372
1,439,114
1,388,342
1,641,616
1,542,545
Total
3,319,543
3,517,662
3,463,295
3,695,382
3,565,922
1,954,296
2,267,333
2,257,182
2,214,620
2,305,959
SOURCES OF MWh: Generated by district Purchased
1,443,813
1,319,345
1,281,089
1,563,500
1,350,643
Subtotal
3,398,109
3,586,678
3,538,271
3,778,120
3,656,602
78,566
69,016
74,976
82,738
90,680
3,319,543
3,517,662
3,463,295
3,695,382
3,565,922
Residential
$114,519
$113,282
$114,169
$109,790
$106,946
Commercial
18,283
18,540
18,319
17,756
16,759
Industrial
92,721
91,521
87,318
85,711
80,006
System losses Total ELECTRIC ENERGY REVENUES: (IN THOUSANDS)
Other (1)
51,819
55,190
52,226
50,453
45,117
Power Supply Adjustment Recognized (Deferral)
(20,398)
(16,424)
3,093
(12,112)
425
Total Retail Energy
256,944
262,109
275,125
251,598
249,253
Electric Service Charges
473
470
497
488
358
Other Electric Revenue
78
78
77
76
81
Electric Energy Retail
257,495
262,657
275,699
252,162
249,692
Wholesale Power
41,140
50,973
64,341
73,460
49,115
$298,635
$313,630
$340,040
$325,622
$298,807
527
517
510
527
516
Total SYSTEM PEAK DEMAND (MW) AVERAGE MWh SALES PER CUSTOMER: Residential
9.790
9.715
9.951
9.899
9.911
Commercial
17.987
18.506
18.421
18.139
18.131
Industrial
894.304
916.471
903.451
941.744
925.680
Residential
$160.17
$160.24
$157.36
$153.27
$149.80
Commercial
$142.20
$141.38
$140.26
$138.55
$132.37
Industrial
$119.72
$119.45
$116.45
$114.63
$108.31
$0.066
$0.072
$0.080
$0.070
$0.073
AVERAGE REVENUE PER MWh:
AVERAGE COST OF POWER: PER KWh FOR RETAIL LOAD (2,3)
(1) Includes agricultural and municipal water pumping, street lighting, and interdepartmental meters. (2) Includes depletion and depreciation on generation assets, excludes debt service. (3) Added A2PP and A2PP pipeline depreciation.
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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 LAU ED CO S I N RC 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
XY
RI CED MER Y X
Y X
Y X
Y X
XY
Y X
Y X
XY
STANISLAUS COUNTY SANTA CLARA COUNTY
VER
H IG
HW AY 99
ELECTRICAL SERVICE AREA IRRIGATION SERVICE AREA
BOARD OF DIRECTORS Michael Frantz Charles Fernandes (VP) Joe Alamo (President) Rob Santos Ron Macedo
Division 1 Division 2 Division 3 Division 4 Division 5
MANAGEMENT TEAM Casey Hashimoto Larry Gilbertson Brian LaFollette Joseph E. Malaski Tou Her Michelle Reimers
General Manager Assistant General Manager, Electrical Engineering & Operations Assistant General Manager, Power Supply Assistant General Manager, Financial Services (CFO) Assistant General Manager, Water Resources Assistant General Manager, External Affairs
ADVISORS
Griffith & Masuda General Counsel Orrick, Herrington & Sutcliffe LLP Bond Counsel PricewaterhouseCoopers LLP Independent Accountants Public Financial Management, Inc. Financial Advisor Leidos, Inc. Consulting Engineers
REVENUE BOND RATINGS Standard & Poor’s A+ Fitch A+ Moody’s A2
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THE ATTACHED DISC CONTAINS THE TURLOCK IRRIGATION DISTRICT’S 2016 FINANCIAL STATEMENTS.
This document is stored in Adobe Acrobat (PDF) format. To view the document you will need to have the Adobe Acrobat Reader® installed on your computer. The PDF files are also available through the TID website at WWW.TID.ORG or by calling the TID business office at 209.883.8300
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