HomeMy WebLinkAboutReport - Mail Packet - 5/6/2014 - Platte River Power Authority Annual Report 2013Annual Report 2013
40 Years of Excellence
Table of Contents
Annual Report
2013
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Chairman & GM’s Letter
Vision, Mission, and Values
Our Communities
Board of Directors & Senior Management
Financial Highlights & Energy Market Statistics
40 Years of Excellence
Employee Perspectives
2013 Highlights
Report of Management
Independent Auditor’s Report and Financial Statements
Platte River Power Authority Timeline
Glossary
Platte River at a Glance
4
6
8
10
14
18
20
28
44
46
90
102
103
Platte River Headquarters
agreement to purchase an additional 32.5
megawatts of capacity from a wind farm to
be constructed in eastern Colorado.
• Specially designed perimeter walls were
built at two substations in Fort Collins in
accordance with our efforts to enhance
safety and improve security at Platte
River’s facilities.
• Efficiency programs offered to
customers by Platte River and the owner
municipalities’ utilities captured more
energy savings than ever before.
• Financial results were strong, bolstered by
growth and continued economic recovery
in our region resulting in increased sales
to the Municipalities and others.
We overcame a number of challenges while
achieving these goals, including a forced
outage of Unit 1 at the Craig Station and
the extreme flooding that occurred in our
communities in September. We are fortunate
that Platte River’s service reliability was not
compromised by the flood and we were
able to reach out and help our communities
during this difficult time.
While September 2013 will be remembered
for the flood, the month also marked the
40th anniversary of the commencement of
Platte River’s operations. These coinciding
events reminded us of our responsibilities to
continue Platte River’s tradition of excellent
service and make positive contributions to
the quality of life in our communities.
As Platte River’s Board of Directors and
management team, we prepare for future
challenges and opportunities. In 2013, we
updated our vision and mission statements
and developed a new set of values meant to
build on the organization’s strong foundation
and carry us forward. We worked together
through a comprehensive, inclusive process
to develop a Strategic Plan that outlines
strategic initiatives, objectives, and goals
for 2014 and beyond. One very important
goal is the creation of a new Integrated
Resource Plan that will help guide our future
infrastructure investments, and expansion of
the services we provide to our communities.
The Strategic Plan will be updated annually
as detailed analyses of future scenarios are
completed, new technologies evolve, and
market opportunities arise.
Celebrating Platte River’s past has made
us grateful for the strong foundation of
operational, organizational, and financial
success that has been laid for us. As we
look forward to building on that foundation,
we can confidently say that the Board of
Directors, management team, and all of
our employees are committed to supporting
Safety – Working safely and protecting the public, our employees, and the assets we
manage is non-negotiable.
Integrity – Being ethical and holding ourselves accountable to conduct business in a fair,
honest, open, compliant, and environmentally responsible manner is at the core of
what we do.
Customer Service – Providing quality service at a competitive price while being
responsive to our owners’ needs creates added value and improves customer satisfaction.
Respect – Encouraging constructive dialogue that promotes a culture of inclusiveness,
recognizes our differences, and accepts varying viewpoints will lead us to optimal
solutions for even the most difficult challenges.
Operational Excellence – Engaging employees to strive for excellence and continuous
improvement ensures that we provide reliable service while managing costs and creating
a rewarding work environment.
Innovation – Supporting the development of technologies to promote the efficient use
of electricity, protect the environment, and create a diversified energy supply portfolio
mitigates risk and creates opportunities.
Sustainability – Maintaining financial integrity, minimizing our environmental impact,
and supporting responsible economic development in our owner communities ensures the
long-term viability of the organization and the communities we serve.
Vision Mission Values
As a respected leader
and responsible energy
partner, improve the
quality of life for the
citizens served by our
owner communities.
Provide safe, reliable,
environmentally
responsible, and
competitively priced
energy and services.
6 | Annual Report 2013 Annual Report 2013 | 7
Fort Collins
Denver
Loveland
Longmont
Estes Park
COLORADO
W Y O MING
Platte River Power Authority is
a Colorado political subdivision
established to provide
wholesale electric generation
and transmission to the
municipal utilities of its owner
communities—Estes Park,
Fort Collins, Longmont,
and Loveland.
Our
Communities
Estes Park
Fort Collins
Longmont
Loveland Don Reilly – DJR Imaging
C. Nathan Pulley Photography
Aaron Olaf / Flickr
Jim Landon / Flickr
8 | Annual Report 2013
Dennis Coombs
Mayor
City of Longmont
Tom Roiniotis
Chairman of the Board
Director, Power & Communications
City of Longmont
Karen Weitkunat
Mayor
City of Fort Collins
Reuben Bergsten
Utilities Director
Town of Estes Park
Bill Pinkham
Vice Chairman
Mayor
Town of Estes Park
Gerry Horak
Mayor Pro Tem
City of Fort Collins
Steve Adams
Director, Water and Power
City of Loveland
Cecil Gutierrez
Secretary
Mayor
City of Loveland
10 | Annual Report 2013
Platte River is governed by an eight-
person Board of Directors designed to
bring relevant expertise to the decision-
making process. The Board includes
two members from each of the owner
municipalities.
The mayor (or a designee of the mayor)
from each of the owner municipalities
serves on the Board. Each of the other
four directors are appointed to four-year
staggered terms by the governing body of
the owner municipality being represented
by that director.
Board of
Directors
12 | Annual Report 2013
Platte River operates under the direction
of a General Manager who serves at
the pleasure of the Board of Directors.
The General Manager is the principal
executive officer with full responsibility
for planning, operations, and the
administrative affairs of Platte River.
Assisting the General Manager is a
management team composed of directors,
officers, and the General Counsel. Platte
River’s senior management has substantial
experience, with an average of over 25
years of service in the utility industry.
Senior
Management
David Smalley
Chief Financial & Risk Officer
Karin Hollohan
Corporate Services Director
John Bleem
Strategic Planning &
Customer Service Director
Deborah Schaneman
Environmental Services &
Compliance Director
Joseph Wilson
General Counsel
Jackie Sargent
General Manager/CEO
Jason Frisbie
Chief Operating Officer
Barbara Ateshzar
Government &
External Affairs Officer
Revenues/Expenses ($000)
Operating Revenues
Operating Expenses
Nonoperating revenues (expenses), net
Income before contributions
Power Operations
Demand-municipalities (MW)
Energy-municipalities (GWh)
Energy-others (GWh)
Selected Other Data
Gross utility plant ($000)
Long-term debt, net ($000)
Debt to capitalization ratio
Total revenue bond coverage
2013
$194,938
174,515
(11,135)
$9,288
649
3,196
729
$1,292,605
$246,353
34/66
1.70x
2012
$182,635
160,918
(10,313)
$11,404
653
3,192
745
$1,285,309
$269,781
36/64
1.72x
2011
$181,443
161,284
(8,750)
$11,409
639
3,182
937
$1,272,027
$262,874
36/64
1.80x
Years Ended December 31,
Financial Highlights
Energy Deliveries
To Others
To Municipalities
2013
GWh
2012 2011
4,500
4,000
Energy Market Statistics
2011
129,764
16,373
311
146,448
1,114,846
1,945,153
3,630
3,063,629
$91,822
118,781
506
$211,109
8,591
8.24
$707.61
2012
131,367
16,576
399
148,342
1,114,372
1,963,969
11,932
3,090,273
$98,186
128,168
925
$227,279
8,483
8.81
$747.42
Combined Retail Sales for Four Municipalities1
Number of Customers (average monthly)
Residential
Commercial & Industrial
Other
Total
Energy Sales (MWh)
Residential
Commercial & Industrial
Other
Total
Revenue ($000)
Residential
Commercial & Industrial
Other
Total
Residential Averages (annual)
kWh per Customer
Revenue per kWh (cents)
Revenue per Customer
2013
132,958
17,041
292
150,291
1,131,275
1,959,336
Platte River has provided safe, reliable, environmentally responsible, and competitively priced
electricity to its owner municipalities of Estes Park, Fort Collins, Longmont, and Loveland,
Colorado since 1973. Platte River’s history can be chronicled by some of the major events and
accomplishments of the past 40 years. During that time, the four communities have come to rely
on their partnerships with Platte River to power their growth and wellbeing.
40 Years
of Excellence
18 | Annual Report 2013 Annual Report 2013 | 19
Hard working, dedicated employees have always been key
to Platte River’s success. The following are reflections from a
few current employees who have each contributed more than
25 years of service to the organization.
Employee
Perspectives
20 | Annual Report 2013 Annual Annual Report Report 2013 2013 | | 21 ??
Steve Christensen
What is your favorite thing about your job?
I have made a lot of friends over the years. It is a safe
place to work and the pride in workmanship is a very
warm feeling.
What is the biggest change you’ve
seen at Platte River while you’ve
been working here?
When we got our first computer. I took a DOS class to
understand what it could do and how to work with it.
Look at where Windows is today. It’s mind boggling.
What is your fondest memory about
working at Platte River?
Being one of Rawhide’s original 25 operators. We spent
six months in the same room working together to learn
the plant. We became very close and are still in contact
today. There are only two of us left that have stayed the
full time.
Carol Ballantine
What is your favorite thing about your job?
I truly love what I do. Not only is the job fun, but it is
meaningful and an integral part of accomplishing Platte
River’s mission. Most importantly, I work with a great
group of people, which makes coming to work enjoyable.
What is your proudest accomplishment
while at Platte River?
Putting together a strong, hardworking, and loyal staff
that is top-notch.
What is your fondest memory about
working at Platte River?
Working at Rawhide during its construction and early
start-up years. The camaraderie of carpooling and
working at the plant for the first few years of my career
are really great memories.
Annual Report 2013 | 23
30 29
Annual Report 2013 | 25
Paul Schulz
What is your favorite thing about your job?
I enjoy the variety of job responsibilities and the ever-
evolving aspects of environmental regulatory programs
impacting the electric utility industry.
What is one piece of advice you would give
to someone who is just beginning a career
at Platte River?
Remember we are all on the same team. Have some fun
and be safe!
What is the biggest change you’ve seen
at Platte River while you’ve
been working here?
Technological changes have been huge.
Pat Thoms 30
What is your favorite thing about your job?
The people and the daily challenges of providing
materials and services in a timely manner.
What is your fondest memory about
working at Platte River?
The celebration of Rawhide Unit 1 going commercial
and the arrival of the first coal train.
What is your proudest accomplishment
while at Platte River?
The implementation of three warehouses and
computerized purchasing processes.
What is the biggest change you’ve
seen at Platte River while you’ve
been working here?
Besides the photo on my ID badge?
30
Annual Report 2013 | 27
Becky Avery
What is your fondest memory about
working at Platte River?
My first tour of Rawhide and how impressed I was with
the size of the plant and its cleanliness.
What is your proudest accomplishment
while at Platte River?
Having successful year-end financial audits throughout the
years. Although I coordinate these audits, they wouldn’t
be successful without the assistance of the accounting and
finance staff.
What is one piece of advice you would give
to someone who is just beginning a career
at Platte River?
Ask lots of questions and get to know people.
Employees at Platte River are very knowledgeable
and willing to help.
Rocky Knutson 25
What is your favorite thing about your job?
Working with the professional and dedicated staff we have
at Platte River. There always seems to be something new
that comes up to add variety and challenge to your day!
What is one piece of advice you would give
to someone who is just beginning a career
at Platte River?
Commit to giving your best effort, day in and day out, to
your job and you can have a career here at Platte River.
What is the biggest change you’ve seen
at Platte River while you’ve
been working here?
I believe we are going through the biggest change at the
present time. Identifying what Platte River’s future looks
like with what seem to be ever-changing environmental
and compliance regulations is not an easy task.
32
Over time, an organization’s reputation is determined by its ability to rise
to challenges and realize opportunities. Both challenges and opportunities
presented themselves in 2013. Platte River’s achievements during the year
demonstrate how the organization has created a reputation for strong
operational and financial performance over the past 40 years.
2013 Highlights
Since beginning commercial operation in 1984, Rawhide Unit 1 has received regular
maintenance to maximize the plant’s useful life, increase efficiency, and maintain environmental
excellence. Proactive maintenance combined with the daily activities of highly skilled and
dedicated staff have also made the unit one of the electricity generation industry’s most reliable
coal-fired power plants.
Rawhide Unit 1 finished 2013 with a 96.1 percent capacity factor, surpassing the previous
record for this facility—95.9 percent—achieved in 2009. To put this in perspective, industry
statistics reveal that the average annual capacity factor for all U.S. coal-fired power plants
during 2007-2011 was 67.3 percent. Rawhide’s outstanding capacity factor is a result of high
unit reliability and low operational costs.
Rawhide Performs Better than Ever
Annual Report 2013 | 29
Rawhide Energy Station
28 | Annual Report 2013
Road going into Big Thompson
Canyon from Estes Park
Longmont flooding
Estes Park Mayor Bill Pinkham (left), Loveland Mayor Cecil Gutierrez (center), and Colorado
Governer John Hickenlooper (neon jacket) celebrate the reopening of U.S. Hwy 34.
While isolated flooding along northern Colorado creeks and rivers is not uncommon, the
magnitude of the event that struck the region in September 2013 was unprecedented. Torrential
rains fell during much of a four-day period in the middle of the month, causing the rivers that flow
through Platte River’s communities to overrun their banks. Flood damage in the communities was
most significant along the St. Vrain River (Longmont) and the Big Thompson River (Estes Park and
Loveland) where raging waters uprooted trees, destroyed buildings, and displaced thousands of
people from their homes. Dozens of roads and bridges were made impassible due to high water
or structural damage and, for a time, the Town of Estes Park was isolated.
Fortunately, Platte River’s transmission infrastructure and service reliability were not compromised
during the flood. This left staff available to help the communities with vital tasks such as the
emergency restoration of fiber optics-based phone and 911 services to Estes Park. At the
distribution level, the municipal utilities’ immediate and aggressive responses to problems spared
all but a few customers from lengthy disruptions in power.
Recovery work began almost immediately after the rains stopped. As part of the effort, Platte
River and the Town of Estes Park made $247,000 in special funding available to businesses in
the Town for energy efficiency projects that will lower future utility bills and potentially mitigate
the economic losses they suffered.
Another shining example of the region’s determination to bounce back from the catastrophe
was the restoration of the road that links Estes Park and Loveland. It took just ten weeks for 150
highway workers working seven days a week to repair or rebuild parts of an 18-mile stretch of
U.S. Highway 34. During the project, 650 truckloads of debris were removed, 60,000 tons of
road base and asphalt were laid, and 2,700 truckloads of concrete were poured.
Other aspects of recovery will take months and even years to complete. However long it may
be, Platte River Power Authority will be around to help.
CLICK HERE to see more photos of the 2013 flood
Nature Throws a Punch
30 | Annual Report 2013
Matthew Jonas / Longmont Times-Call
Estes Park Trail-Gazette
Colorado Governer’s Office
Platte River owns an 18 percent share of Craig Station Units 1 and 2, which are operated by
Tri-State Generation and Transmission Association, Inc. (Tri-State). Craig Unit 1 experienced
a lengthy forced outage from September 7 to December 25. The Unit initially tripped due to
boiler fouling and subsequently the high and intermediate pressure sections of the turbine were
damaged during the first attempted restart. The total net financial impact on Platte River was
approximately $4.6 million.
Craig Unit 1 has operated reliably since returning to service. Tri-State has initiated over 40
procedural, testing, training, and maintenance improvements to prevent such incidents in the future.
Craig Unit 1 Experiences
Prolonged Outage
No organization can survive, much less excel, for forty years without consistently strong financial
performance. Contributing to Platte River’s strong financial results in 2013 was an improving
wholesale electricity market. Income before contributions was $9.3 million and debt service
coverage—the ratio of total net revenues to debt payments and a source of confidence for our
bondholders—was 1.70, well over the 1.10 required by bond covenants. This performance is in
line with the level expected for organizations with strong credit ratings.
To ensure that Platte River’s financial and operational goals continue to be met, the Board
of Directors approved a 2.0 percent increase in the firm resale power service rate, effective
January 1, 2014. Increasing operations and maintenance expenses, the addition of a 32.5 MW
wind purchase power agreement and costs to support strategic planning initiatives were the
primary drivers for the rate increase.
Platte River continues to be the lowest cost wholesale electric supplier located in Colorado.
Strategic Financial Targets are Met
The physical security of remote assets emerged as a significant industry issue during 2013.
Platte River was ahead of the curve. In 2013 Platte River completed construction of walls around
two substations in Fort Collins that were previously surrounded by chain link fences. Similar walls
had been constructed in the other owner municipalities. The walls are a key aspect of Platte
River’s substation physical security policy, intended to protect both people and high-voltage
equipment by preventing unauthorized access to the substations.
Specially designed decorative concrete blocks containing recycled fly ash produced at the
Rawhide Energy Station were interlocked to form the walls. Suggestions from community
members and staff from the owner municipalities were incorporated into the aesthetics and
design of the walls.
Substation Walls Improve Security
32 | Annual Report 2013 Dixon Creek Substation
In 2013, Platte River entered into a 25-year agreement with an affiliate of Invenergy Wind LLC
to purchase output from a wind power generation facility to be constructed in Logan County,
Colorado. The Spring Canyon II Energy Center is expected to commence commercial operations
by the fourth quarter of 2014.
Platte River estimates that Spring Canyon II will provide approximately
3.5 percent of the power consumed annually in its four owner
municipalities, doubling the wind energy supply to Platte River’s system.
New Wind Energy
On December 30, 2013, Platte River transferred
ownership of the Medicine Bow Wind Project to
Medicine Bow Wind, LLC, a subsidiary of Gamesa
Corporacion Tecnologica, S.A. Medicine Bow Wind
intends to refurbish the existing wind turbines, which date
back to the late-1990s, and use the site to demonstrate
its retrofit technology. If successful, the retrofit will extend
the life of the site well beyond the five year operating
horizon planned by Platte River. If successful the retrofit
will also increase the capacity of the turbines.
Platte River entered a 20-year Power Purchase
Agreement with Medicine Bow Wind as part of the
transaction. The pricing is advantageous and contains
guarantees for performance over the first 15 years of the
extended life.
Medicine Bow Wind
Project Sold to Extend Life
and Capacity of Turbines
34 | Annual Report 2013
History of the Medicine Bow
Wind Project
1998—Platte River purchases the
assets of what will become the
Medicine Bow Wind Project in Carbon
County, Wyoming. Two 600 kW
Vestas turbines are erected and wind
energy is delivered to Fort Collins
Utilities, the first utility in Colorado to
offer wind energy to its customers.
1999 & 2000—Seven 660 kW Vestas
turbines are erected as Estes Park
Light & Power, Longmont Power &
Communications, and Loveland Water
and Power begin offering wind power
to their customers.
2005—Clipper Windpower, Inc.
installs its 2.5 MW Liberty I prototype
turbine. Platte River purchases the
energy produced by the Liberty I for
Fort Collins Utilities’ Wind Program
and the Town of Estes Park.
2011—Clipper Windpower
decommissions and removes the Liberty
I following a major gearbox failure.
During its six years of operations, the
prototype turbine successfully fulfilled
its mission of helping Clipper refine a
new turbine design prior to installations
across the U.S.
2013—Project is sold to Medicine
Bow Wind, LLC. The transaction will
extend the life of the Medicine Bow
Efficiency Programs Capture
More Savings
Energy Efficiency – Investments and Savings
Annual Energy Savings
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
$3.3
$3.0
$2.7
$2.4
$2.1
$1.8
$1.5
$1.2
$0.9
$0.3
$0.0
Yearly Investments
Energy Savings (MWh)
Investment (millions)
The retail customers of Platte River’s owner municipal utilities have a demonstrated desire for
services that help them save energy. Platte River actively partners with the utilities to offer a
number of common energy efficiency programs to customers in all the municipalities, with
coordination and some or all of the funding provided by Platte River. Each of the four owner
municipalities also offers programs in addition to the shared programs.
Together Platte River and the municipalities spent over $3 million in 2013 for projects that will
help customers reduce their annual electricity consumption by about 17 million kilowatt-hours—
equivalent to the annual energy use of about 2,000 homes. The projects should also lower the
combined electric bills of participating customers by about $1.3 million per year.
36 | Annual Report 2013 Efficient lighting upgrade at
Colorado State University’s Moby Arena
Strategic Direction
Statements
• Management should explore ways
to improve collaboration and
communication among the partner
cities, facilitated by Platte River.
• Platte River should investigate
options to reduce/mitigate its
carbon footprint using Colorado’s
approved Climate Action Plan as a
guide (20% below 2005 levels by
2020 and 80% below 2005 levels
by 2050).
• Platte River management should be
directed to look at diversifying and
balancing the generation supply
portfolio.
• Platte River management should be
directed to look at the expansion
of renewable resources using
the measures established for
cooperatives in Colorado SB 13-
252 as a guide (20% of retail
energy from qualified sources by
2020).
• In the context of above items (2, 3
and 4), Platte River management
should present to the Board an
energy-portfolio diversification plan
(in the context of a comprehensive
strategic plan) that keeps us
competitive, meaning Platte River
should remain the lowest cost
wholesale power provider located
in Colorado.
• Platte River management
should explore opportunities for
administering a common survey
with the owner municipalities.
• Platte River should become
strategically aware of technology,
innovation trends and opportunities.
Platte River believes it has a responsibility to participate in efforts that enhance the quality of
life in its communities. Although Platte River sponsors community events and provides support to
local non-profit groups, it is most proud of the hands-on volunteer commitment of its employees.
In 2013, employees came together to help establish a 15,000 square foot community vegetable
garden in Fort Collins and refurbished the landscaping at Larimer County’s reuse/recycling
education center.
Employees repeatedly demonstrate their generosity through giving activities that benefit people
in need. In 2013, they contributed more than $50,000 through one-time donations and
payroll deductions to the United Way as well as $3,640 to the Food Bank for Larimer County.
Employees also donated about 100 units—12.5 gallons—of blood to patients in area hospitals,
and 60 refurbished bicycles for underprivileged children.
Planning has taken many forms at Platte River over
the years, with the primary focus—new electric supply
resources to serve the needs of the Municipalities—
evolving over time. Planning initially focused on building
resources to meet the growing municipal loads as federal
hydropower sources were becoming limited. Once
these resources were built, the focus shifted toward
Planning is a Priority (continued)
1970s - 1980s
Building:
• Craig
• Rawhide
• Transmission
Operations:
• Craig
• Rawhide
• Transmission
• Municipal sales
• Sale of capacity
and energy to
Public Service Co.
• Debt reduction
Summer Peak:
• Five new gas
combustion turbines
• Transmission
• End of sale to
Public Service Co.
• Hydro (drought)
• Craig & Rawhide
operations
Flexibility:
• Renewables
• Demand response
• Distributed
generation
• New technologies
• Diverse member
needs
• Balancing multiple
uncertainties &
managing risks
1980s - 1990s Early 2000s Next Phase
Resource Planning Phases - Platte River
A special meeting of the Board of Directors was held in July to review planning-related
information and to allow management to gather direction from the Board regarding Platte
River’s future. During this meeting, seven statements of strategic direction were provided to the
management team by the Board.
These and other planning activities culminated in the creation of the Strategic Plan. The
plan contains a Board-issued initiative that will help guide development of Platte River’s next
Integrated Resource Plan, which is expected to be completed in 2014.
Strategic planning will be an ongoing process as detailed analyses of future scenarios are
completed, new technologies evolve, and market opportunities arise.
Resource Planning Initiative
Platte River will evaluate options for diversifying its future mix of resources:
integrating both supply and demand side technologies and capitalizing on
regional competitive strengths (proximity to natural gas and coal, excellent
wind and solar resources, and local/regional energy technology research
and development).
Goals
1. Evaluate natural gas combined cycle generation and other options to
support integration of additional renewable energy resources, to diversify
the resource mix and to provide flexibility for future electric market
scenarios.
2. Conduct an analysis to evaluate alternatives for decreasing Platte River’s
greenhouse gas emissions and identify the associated cost implications.
3. Conduct an analysis for meeting retail customer energy requirements
Economic and population growth will drive electricity demand going forward, and are key inputs
to the planning process. The northern Colorado economy continued its positive trend in 2013.
Economy Continues to Improve Economy Continues to Improve (continued)
Average Monthly Employment
2007 2008
Ft Collins-Loveland MSA
2009 2010 2011 2012 2013
175,000
150,000
125,000
100,000
75,000
50,000
25,000
0
Persons Employed
Home Price Index
2007 2008
Ft Collins-Loveland MSA
2009 2010 2011 2012 2013
200
175
150
125
100
75
50
25
0
(1st Quarter 1995=100)
Home Price Index
Residential Building Permits
2007 2008
Larimer County
2009 2010 2011 2012 2013
800
700
600
500
400
300
200
100
0
Number of Permits
Historical and Projected Future Populations
2000 2005
Platte River’s Four Municipalities
2010 2015 2020
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Population
250,051
Platte River Power Authority’s management is responsible for the preparation, integrity and
objectivity of the financial statements and related information included in this Annual Report.
The financial statements have been prepared in conformity with accounting principles generally
accepted in the United States of America and, where required, reflect amounts based on the
best estimates and judgments of management.
Platte River maintains a strong internal control structure designed to provide reasonable
assurance that transactions are executed in accordance with management’s authorization, that
financial statements are prepared in conformity with generally accepted accounting principles
and that assets are safeguarded.
Platte River’s internal auditor evaluates internal controls for adherence to company policies
and procedures on an ongoing basis and reports findings and recommendations for possible
improvements to management. In addition, the independent auditors consider elements of
the internal control system in determining the nature and scope of their audit procedures in
performing the annual audit of Platte River’s financial statements.
The Board of Directors, whose members are not employees of Platte River, periodically meet
with the independent auditors and management to discuss the audit scope, audit results and
any recommendations to improve the internal control structure. The Board of Directors directly
engages the independent auditors.
Report of Management
David D. Smalley
Chief Financial Officer
Jackie A. Sargent
General Manager/CEO
44 | Annual Report 2013 Rawhide staff
Headquarters staff
Independent
Auditor’s Report
and Financial
Statements
Years Ended December 31,
2013 and 2012
Independent Auditor’s Report ..............................................
Management’s Discussion and Analysis (Unaudited) ................
Financial Statements
Statements of Net Position ...................................................
Statements of Revenues, Expenses and
Changes in Net Position ....................................................
Statements of Cash Flows ...................................................
Notes to Financial Statements .............................................
Required Supplementary Information (Unaudited) ...................
Other Information (Unaudited) ..............................................
Table of Contents
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Platte River Power Authority
46 | Annual Report 2013 Annual Report 2013 | 47
We believe that the audit evidence we have
obtained is sufficient and appropriate to
provide a basis for our audit opinion.
In our opinion, the financial statements
referred to above present fairly, in all
material respects, the financial position
of Platte River as of December 31, 2013
and 2012, and the changes in its financial
position and its cash flows for the years
then ended in accordance with accounting
principles generally accepted in the United
States of America.
Emphasis of Matter
As discussed in Note 3 to the financial
statements, in 2013, Platte River adopted
new accounting guidance, Governmental
Accounting Standards Board Statement No.
65, Items Previously Reported as Assets and
Liabilities. Our opinion is not modified with
respect to this matter.
Required Supplementary Information
Accounting principles generally accepted
in the United States of America require
that the management’s discussion and
analysis and pension information listed
in the table of contents be presented to
supplement the basic financial statements.
Such information, although not part of the
basic financial statements, is required by
the Governmental Accounting Standards
Board, who considers it to be an essential
part of financial reporting for placing the
basic financial statements in an appropriate
operational, economic or historical context.
We have applied certain limited procedures
to the required supplementary information
in accordance with auditing standards
generally accepted in the United States
of America, which consisted of inquiries
of management about the methods of
preparing the information and comparing
the information for consistency with
management’s responses to our inquiries,
the basic financial statements and other
knowledge we obtained during our audit
of the basic financial statements. We do
not express an opinion or provide any
assurance on the information because the
limited procedures do not provide us with
sufficient evidence to express an opinion or
provide any assurance.
Other Information
Our audit was conducted for the purpose
of forming an opinion on the basic
financial statements as a whole. The
Other Information (Budgetary Comparison
Schedule) listed in the table of contents
is presented for purposes of additional
analysis and is not a required part of the
basic financial statements. Such information
This discussion and analysis provides an overview of the financial performance of Platte River
Power Authority (Platte River) for the fiscal years ended December 31, 2013 and December
31, 2012. The information presented should be read in conjunction with the basic financial
statements and accompanying notes to the financial statements.
Platte River is a wholesale electricity generation and transmission provider that delivers safe,
reliable, environmentally responsible and competitively priced energy and services to its four
owner municipalities, Estes Park, Fort Collins, Longmont and Loveland. Platte River owns and
operates the coal-fired Rawhide Unit 1, and five natural gas-fired combustion turbines–Units A,
B, C, D and F located at the Rawhide site. Platte River is also a part owner of Craig Units 1 and
2 located in northwest Colorado.
Platte River operates as a utility enterprise and follows the Uniform System of Accounts
prescribed by the Federal Energy Regulatory Commission (FERC). Platte River has implemented
all applicable Governmental Accounting Standards Board (GASB) pronouncements. The
accompanying financial statements are prepared on the accrual basis of accounting in
conformity with accounting principles generally accepted in the United States of America.
• Platte River reported income before
contributions of $9.3 million in 2013,
approximately $2.1 million lower than
2012. An increase in operating revenues
of $12.3 million was more than offset by
increases in operating expenses of $13.6
million and nonoperating expenses, net, of
$0.8 million.
• Municipal sales increased $9.6 million in
2013 over 2012 as the result of a 5.1%
increase in wholesale rates. Municipal
loads were relatively flat with a 0.1%
increase in energy deliveries over 2012.
• Surplus sales revenue (sales for resale and
other) increased $2.7 million in 2013
compared to 2012 resulting from higher
contract and short-term sales. The contract
sales increased $0.1 million, short-term
sales increased $2.8 million with a higher
average selling price, and wheeling
revenues decreased $0.2 million.
• During 2013, a scheduled five-week
maintenance outage for Craig Unit 2 was
completed. The major focus of the outage
was on upgrading the turbine to increase
efficiency of the unit.
• In September, Craig Unit 1 suffered
problems with the turbine rotor and was
removed from service for repair. The unit
was returned to service late December.
• Purchased power costs for 2013 increased
$1.5 million compared to 2012 due to
replacement power costs during the Craig
outages and to meet loads during peak
periods.
• Fuel expense increased $8.2 million in
2013 compared to 2012 as the result of
the contract for Rawhide coal moving from
a fixed price to market price. This increase
was offset by lower fuel costs for the Craig
units as a result of the outages.
• Nonoperating expenses, net, increased
$0.8 million in 2013 compared to 2012
and include a $1.5 million loss on the
sale of the Medicine Bow Wind Project
Condensed Financial Statements Net Position
The following condensed statements of net position and condensed statements of revenues,
expenses and changes in net position summarize Platte River’s financial position and changes in
financial position for 2013, 2012, and 2011.
Total net position at December 31, 2013 was $478.5 million, an increase of $9.1 million over
2012. Total net position at December 31, 2012 was $469.3 million, an increase of $11.2
million over 2011.
Management’s Discussion and Analysis (unaudited)
Condensed Statements of Net Position
Assets
Electric utility plant
Special funds and investments
Current and other assets
Total assets
Deferred outflows of resources
Liabilities
Noncurrent liabilities
Current liabilities
Total liabilities
Deferred inflows of resources
Net position
Net investment in capital assets
Restricted
Unrestricted
Total net position
2013
$582,884
87,336
87,771
757,991
4,480
243,504
37,631
281,135
2,879
329,294
24,750
124,413
$478,457
2012
$604,604
86,039
82,238
772,881
5,623
268,915
37,386
306,301
2,879
330,339
24,772
114,213
$469,324
2011
$624,363
60,684
83,760
768,807
7,763
265,857
Condensed Financial Statements (continued)
Management’s Discussion and Analysis (unaudited)
• Current liabilities reflect a $0.2 million
increase in 2013 due to increases in
accounts payable, current portion of the
capitalized lease obligation, and accrued
liabilities offset by decreases in current
maturities of long-term debt and accrued
interest. Current liabilities decreased
$5.6 million in 2012 due to a decrease
in accounts payable resulting from less
construction activity at the end of the year
partially offset by increases in current
maturities of long-term debt and current
portion of the capitalized lease obligation.
• Deferred inflows of resources for 2013
reflect no change from 2012. The accrual
of the maintenance outage liability was
suspended in 2013 to mitigate the rate
increase to the municipalities. In 2012, the
outage liability decreased $6.8 million as
the outage liability was utilized during the
Rawhide scheduled maintenance outage in
the spring.
Condensed Statements of Revenues, Expenses and Changes in Net Position
Operating revenues
Operating expenses
Operating income
Nonoperating expenses, net
Income before contributions
Contributions of assets to municipalities
Change in net position
Beginning net position
Ending net position
2013
$194,938
174,515
20,423
(11,135)
9,288
(155)
9,133
469,324
$478,457
2012
$182,635
160,918
21,717
(10,313)
11,404
(155)
11,249
458,075
$469,324
2011
$181,443
161,284
20,159
(8,750)
11,409
Operating Revenues
2013
2012
2011
Municipal Sales Surplus Sales and Other
$180
$160
$140
$120
$100
$80
$60
$40
$20
$0
Operating Expenses
2013
2012
2011
Purchased
Power
Fuel Operations &
Maintenance
Administrative
& General
Depreciation
$60
$50
$40
$30
$20
$10
$0
Operating Revenues
and Expenses (in millions)
Management’s Discussion and Analysis (unaudited)
Debt Ratings
Budgetary Highlights
Moody’s, Standard & Poor’s (S&P) and Fitch Ratings assigned ratings of Aa2, AA and AA,
respectively, to Platte River’s Series II Bonds issued in March 2012. The ratings on Platte River’s
existing bonds remained unchanged.
Platte River’s Board of Directors approved the 2013 Annual Budget with total revenues of
$194.0 million, operating expenses of $142.8 million, debt service expenditures of $32.8
million and capital additions of $25.6 million. A portion of the capital additions funding was
provided from the proceeds of the Series II Bonds. The following budgetary highlights are
presented on a non-GAAP budgetary basis.
Total operating revenues of $194.9 million ended the year $2.1 million, or 1.1%, above
budget. Municipal sales of $169.3 million were $4.0 million below budget due to below-budget
variances in billing demand and energy deliveries. Surplus sales totaled $25.6 million and were
$6.1 million above budget resulting primarily from higher-than-budgeted surplus sales prices.
Operating expenses totaled $141.0 million and were $1.8 million, or 1.3%, below budget.
Fuel expense was the largest variance, $2.2 million below budget, primarily due to lower
generation from the Craig units. Production expenses ended the year $0.6 million below budget
with lower-than-budgeted operations and maintenance costs for Rawhide Unit 1. Purchased
power was $0.9 million above budget due to higher purchases made during Craig outages and
to meet loads during peak months. Transmission expenses were less than $0.1 million below
budget and administrative and general expenses were $0.1 million above budget. Debt service
expenditures totaled $32.8 million, which were slightly higher than budget. This variance is due
to lower interest allowance for funds used during construction. Capital additions of $16.2 million
in 2013 were $9.4 million below budget. All categories came in below budget; however, the
Financial Statements
2013
$14,517
1,254,163
(709,721)
558,959
23,925
582,884
28,209
59,127
87,336
18,092
21,492
13,797
6,344
11,307
11,425
1,480
83,937
3,708
126
3,834
757,991
4,480
2012
$14,517
1,250,253
(680,705)
584,065
20,539
604,604
31,945
54,094
86,039
14,363
21,404
12,725
5,719
11,120
11,200
1,558
78,089
4,021
128
4,149
772,881
5,623
December 31,
Assets
Electric utility plant, at original cost (Notes 3 and 4):
Land and land rights
Plant and equipment in service
Less: accumulated depreciation
Plant in service, net
Construction work in progress
Total electric utility plant
Special funds and investments (Note 5):
Restricted funds and investments
Dedicated funds and investments
Total special funds and investments
Statements of Revenues, Expenses and Changes in Net Position
2013
$169,311
25,627
194,938
23,760
52,592
52,521
12,287
33,355
174,515
20,423
570
(505)
(11,155)
83
(128)
(11,135)
9,288
(155)
9,133
469,324
$478,457
2012
$159,675
22,960
182,635
22,262
44,417
49,420
11,316
33,503
160,918
21,717
737
822
(12,092)
381
(161)
(10,313)
11,404
(155)
11,249
458,075
$469,324
(In thousands)
Years Ended December 31,
Operating revenues (Note 3):
Sales to municipalities
Sales for resale and other
Total operating revenues
Operating expenses:
Purchased power
Fuel
Operations and maintenance
Administrative and general
Depreciation
Total operating expenses
Operating income
Nonoperating revenues (expenses) (Notes 5 and 7):
2013
$20,423
33,355
(1,697)
(412)
143
(281)
(50)
(1,825)
—
$49,656
$942
(737)
250
2012
$21,717
33,503
(1,077)
(354)
(51)
316
159
(2,356)
(6,763)
$45,094
$674
(610)
269
Years Ended December 31,
Reconciliation of operating income to net cash
provided by operating activities
Operating income
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
Changes in assets and liabilities which
provided (used) cash:
Accounts receivable
Fuel and materials and supplies inventories
Prepayments and other assets
Deferred outflows of resources
Accounts payable
Other liabilities
Deferred inflows of resources
Net cash provided by operating activities
Noncash capital and related financing activities
Additions of electric utility plant through
incurrence of accounts payable
Amortization of bond premiums and
deferred loss on refundings
Amortization of regulatory asset
(In thousands)
Restated
Statements of Cash Flows (continued)
Financial Statements Notes to Financial Statements
Notes to Financial Statements:
1. Organization
Platte River Power Authority (Platte River) was organized in accordance with Colorado law as a
separate governmental entity by the four municipalities of Estes Park, Fort Collins, Longmont, and
Loveland. Platte River contracted to supply the wholesale electric power and energy requirements
Rawhide Energy Station
The Rawhide Energy Station consists of Rawhide Unit 1, a 280-megawatt (net) coal-fired
generating facility, a cooling pond, coal-handling facilities, related transmission facilities, and five
simple-cycle gas-fired peaking units. Peaking Units A through D have a summer peaking capacity
of 65 megawatts each. Peaking Unit F has a summer peaking capacity of 128 megawatts. The
Rawhide Energy Station facilities are wholly owned and operated by Platte River.
Yampa Project
Platte River owns 18%, or 155 megawatts, of Craig Units 1 and 2 of the Yampa Project as
a tenant-in-common with four other electric utilities. The current Yampa Project Participation
Agreement took effect on April 15, 1992. The Yampa Project consists of 863 megawatts of coal-
fired generation and associated transmission plant facilities located near the town of Craig in
northwestern Colorado. Platte River’s share of the plant investment is included in plant in service,
net, in the accompanying statements of net position. Platte River’s share of operating expenses
of the Yampa Project is included in operating expenses in the accompanying statements of
revenues, expenses and changes in net position. Separate financial statements for the Yampa
Project are not available. In addition, Platte River and all but one of the other Yampa Project
participants own Trapper Mining, Inc., which owns and operates the adjacent coal mine that
supplies the majority of Craig Units 1 and 2 fuel needs.
Medicine Bow Wind Project
On December 30, 2013, Platte River sold the Medicine Bow Wind Project equipment to
Medicine Bow Wind, LLC, a subsidiary of Gamesa Corporacion Tecnologica, S.A. The
Medicine Bow Wind Project consists of nine wind turbines with a total capacity output of 5.8
megawatts near the town of Medicine Bow, Wyoming. During Platte River’s ownership, the
site was leased with annual payments based on a percentage of imputed revenues from the
wind energy sales. The site lease payments were recorded as an operations and maintenance
expense. Platte River recorded a net $1.5 million loss from the sale of the wind equipment. As
part of the sale transaction, Platte River entered into a 20 year Power Purchase Agreement with
Medicine Bow Wind, LLC.
2. Operations
Notes to Financial Statements
3. Summary of Significant
Accounting Policies
Reporting Entity
For financial reporting purposes, Platte River meets the criteria of an “other stand-alone
government” and has no component units as defined in Governmental Accounting Standards
Board (GASB) Statements No. 14 and 39, The Financial Reporting Entity and Determining
Whether Certain Organizations Are Component Units—an amendment of GASB Statement No.
14. As a municipal utility and a separate governmental entity, Platte River is exempt from taxes on
its property and income.
Basis of Accounting
Platte River accounts for its financial operations as a “proprietary fund” and the accompanying
financial statements have been prepared using the accrual method of accounting in conformity
with accounting principles generally accepted in the United States of America. Platte River’s
accounts are maintained in accordance with the Uniform System of Accounts as prescribed by the
Federal Energy Regulatory Commission.
As a Board-regulated entity, Platte River is subject to the provisions of GASB Statement No. 62,
Codification of Accounting and Financial Reporting Guidance Contained in Pre-November
30, 1989 FASB and AICPA Pronouncements, Regulated Operations, paragraphs 476–500,
which requires the effects of the rate-making process to be recorded in the financial statements.
Accordingly, certain expenses and revenues normally reflected in the statements of revenues,
expenses and changes in net position as incurred are recognized when they are included in Platte
River’s wholesale rates. Platte River has recorded various regulatory assets and liabilities to reflect
the rate-making process. (Note 9)
Budgetary Process
A formal budgetary process is required by Colorado State Local Government Law and is
utilized as a management control tool. A proposed annual budget must be submitted to Platte
River’s Board of Directors by October 15 of each year. Following public hearings, the budget
is considered for adoption by the Board of Directors on or before December 31. Since Platte
River operates as an enterprise, it is not subject to Colorado’s Taxpayers’ Bill of Rights (TABOR)
provisions.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America as prescribed by GASB requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results may differ from those estimates.
Electric Utility Plant and Depreciation
Electric utility plant is stated at the historical cost of construction. Construction costs include labor,
materials, contracted services, and the allocation of indirect charges for engineering, supervision,
transportation, and administrative expenses. The cost of additions to utility plant and replacement
property units is capitalized. Repairs, maintenance, and minor replacement costs are charged to
expense when incurred. When construction is debt-financed, an allowance for borrowed funds
used during construction is included in the project cost.
Depreciation is recorded using the straight-line method over the estimated useful lives of the
various classes of plant in service, which range from five to 50 years. Depreciation expense
was approximately 3% of depreciable property for the years 2013 and 2012. The original cost
of property replaced or retired, and removal costs less salvage, are charged to accumulated
depreciation.
Cash and Cash Equivalents
For purposes of the statements of cash flows, Platte River considers all cash on deposit with
financial institutions and highly liquid investments with an original maturity of less than three
months, excluding special funds and investments, as cash and cash equivalents.
Closure and Postclosure Care Costs of Disposal Facility
Platte River accrues a liability of estimated future closure and postclosure care costs for its Rawhide
Energy Station ash disposal facility. The liability is determined by multiplying the estimated closure
and postclosure care costs in current dollars by the percentage of the disposal facility’s total
estimated capacity used through the end of the year.
3. Summary of Significant
Accounting Policies (continued)
Notes to Financial Statements
3. Summary of Significant
Accounting Policies (continued)
Long-term Debt
The difference between the reacquisition price and the net carrying amount of refunded debt
(deferred amount on refundings) in an advance refunding transaction is deferred and amortized
as a component of interest expense using the bonds outstanding method over the shorter of the
remaining life of the defeased debt or the life of the new debt. The deferred amount is reported as
a deferred outflow of resources.
Energy Risk Management
Platte River has established a formal energy risk management program to manage its exposure
to risks associated with wholesale energy and natural gas market price fluctuations. Under Board
of Directors approved policies, Platte River may use various physical and financial instruments,
such as physical forward contracts, futures, swaps, and option agreements. These transactions
are hedges and any expense, gain or loss that is realized on these transactions is recorded as
purchased power or fuel expense in the accompanying statements of revenues, expenses and
changes in net position.
During 2013 and 2012, Platte River entered into natural gas swap contracts to fix prices for
the purpose of hedging against natural gas price fluctuations. The contracts are based on the
Colorado Interstate Gas Co. (CIG) index published in Gas Daily. At December 31, 2013,
Platte River had swap contracts for 20,000 mmBtu at an average fixed price of $3.51 per
mmBtu, which expire in July and August 2014. These contracts had a fair value of $7,000 as
of December 31, 2013, based on price estimates provided by Goldman Sachs & Company,
Platte River’s counterparty for the swap contracts. There were no swap contracts outstanding at
December 31, 2012. As a result of hedging contracts, there was no effect on fuel expense for the
year ended December 31, 2013 and an increase of $45,000 for the year ended December 31,
2012. No cash was paid or received by Platte River when the contracts were initiated. Platte River
is the fixed price payer. The natural gas swap contracts are considered normal purchase contracts
because Platte River takes delivery of the natural gas. Thus, the contracts are not included in the
scope of GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments.
66 | Annual Report 2013 Annual Report 2013 | 67
Operating Revenues and Expenses
Operating revenues and expenses consist of those revenues and costs directly related to the
generation, purchase, and transmission of electricity. Operating revenues are billed and recorded
at the end of each month for all electricity delivered. Revenues and expenses related to financing,
investing, and other activities are considered to be nonoperating.
Deferred Outflows
Other deferred charges primarily consist of unamortized deferred losses on refunding of debt.
Use of Restricted Resources
When both restricted and unrestricted resources are available for use, it is Platte River’s policy to
use restricted funds first, for their intended purposes only, based on the bond resolutions.
Recent Accounting Pronouncements
In 2013, Platte River implemented GASB Statement No. 65, Items Previously Reported as Assets
and Liabilities. This statement identifies certain items that were previously reported as assets
and liabilities that should be classified as deferred outflows of resources or deferred inflows of
resources, or recognized as expenses or revenues. The implementation of GASB 65 had no impact
on Platte River’s net position.
Reclassifications
Certain reclassifications have been made to conform the prior year’s information to the current
year presentation.
3. Summary of Significant
Accounting Policies (continued)
Notes to Financial Statements
4. Electric Utility Plant
Electric utility plant asset activity for the year ended December 31, 2013, was as follows:
Electric utility plant asset activity for the year ended December 31, 2012, was as follows:
(In thousands)
Nondepreciable assets:
Land and land rights
Construction work
in progress
Depreciable assets:
Production plant
Transmission plant
General plant
Less accumulated
depreciation
Total electric utility plant
December 31
2012
$14,517
20,539
35,056
881,078
335,514
33,661
1,250,253
(680,705)
$604,604
Increases
$ —
15,607
15,607
8,552
2,347
1,346
12,245
(33,355)
($5,503)
Decreases
$ —
Investment of Platte River’s funds is administered in accordance with Colorado law and Platte
River’s General Power Bond Resolution, Fiscal Resolution and Investment Policy. Accordingly, Platte
River may only invest in obligations of the United States government and its agencies and other
investments permitted under Colorado law. Platte River records its investments at their estimated
fair market values. The unrealized holding gains and losses on these investments are included in
net increase (decrease) in fair value of investments in the statements of revenues, expenses and
changes in net position.
The fair value of investments is presented on the statements of net position as special funds and
investments, cash and cash equivalents, and other temporary investments. Special funds and
investments are either internally dedicated by Board Resolution (dedicated funds and investments)
or restricted as to use by Platte River’s General Power Bond Resolution (restricted funds and
investments). The fair value of investments, exclusive of accrued interest of $99,000 and $87,000
as of December 31, 2013 and 2012, respectively, are shown in the following tables.
As of December 31, 2013, Platte River had the following cash and investments and
related maturities:
5. Cash and Investments
Notes to Financial Statements
5. Cash and Investments (continued)
Statement of net position presentation of cash, cash equivalents and investments is as follows as of
December 31, 2013:
Fair
Value
$29,154
10,862
1,992
15,234
18,006
75,248
13,489
38,084
$126,821
Investment Maturities (in years)
(In thousands)
Cash and
Investment Type
U.S. Treasuries
U.S. Agencies:
FFCB
FHLB
FHLMC
FNMA
Total securities
Certificates of deposit
Cash & money market funds
Total cash and investments
Less
Than 1
$15,315
2,834
—
5,705
5,074
28,928
4,871
38,084
$71,883
1 - 2
$6,540
2,056
—
Statement of net position presentation of cash, cash equivalents and investments is as follows as of
December 31, 2012:
Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from rising interest rates, Platte
River’s investment policy and Colorado state statutes limit the investment portfolio to maturities of
five years or less. Platte River uses a laddered approach to investing funds based on projected
cash flows. The assumed maturity date for callable securities is based on market conditions as of
December 31, 2013. If the price of the security is at or above its call price, the security is assumed
to be redeemed on its next call date.
Credit Risk
Platte River’s investment policy allows investments in local government investment pools and
money market funds. As of December 31, 2013, Platte River maintained investments in funds
managed by the local government investment pool Colorado Local Government Liquid Asset Trust
(COLOTRUST), the Colorado Statewide Investment Program (CSIP), and the Wells Fargo Heritage
Money Market Fund. All of these funds are rated AAAm by Standard and Poor’s Ratings Services
(S&P). Platte River’s investments in Federal Farm Credit Bank (FFCB), Federal Home Loan Bank
(FHLB), Federal Home Loan Mortgage Corporation (FHLMC), and Federal National Mortgage
Association (FNMA) were rated Aaa by Moody’s Investors Service and AA+ by S&P.
5. Cash and Investments (continued)
Notes to Financial Statements
5. Cash and Investments (continued)
6. Noncurrent Liabilities
(In thousands)
December 31
2012
$269,781
14,225
3,626
186
251
3,588
1,073
332
$293,062
Additions
$ —
—
461
2
—
475
—
2
$940
Reductions
($23,428)
(2,517)
—
—
(80)
(273)
(83)
—
($26,381)
December 31
2013
$246,353
11,708
4,087
188
Noncurrent liability activity for the year ended December 31, 2012, was as follows:
6. Noncurrent Liabilities (continued)
Notes to Financial Statements
7. Long Term Debt
2013
$68,085
113,925
53,745
235,755
10,598
246,353
(21,060)
$225,293
Interest Rate
4.50% - 5.00%
3.00% - 5.00%
2.00% - 5.00%
2012
$77,520
114,025
65,475
257,020
12,761
269,781
(21,265)
$248,516
(In thousands)
December 31,
Power Revenue Bonds
Series GG:
Serial Bonds
Maturing 6/1/2018
Series HH:
Serial Bonds
Maturing 6/1/2029
Series II:
Serial Bonds
Maturing 6/1/2037
Unamortized bond premium
Total revenue bonds outstanding
Less: due within one year
Total long-term debt, net
(In thousands)
December 31
2011
$262,874
16,613
3,802
185
327
3,625
1,156
330
$288,912
Additions
$ 72,388
—
—
1
—
Bond service funding requirements projected for all bonds outstanding are shown in
the table below:
7. Long Term Debt (continued)
Notes to Financial Statements
7. Long Term Debt (continued)
Year ending December 31
Deposits in 2013 for 2014 payment
2014
2015
2016
2017
2018
2019–2023
2024–2028
2029–2033
2034–2037
(In thousands)
Principal
$12,285
21,597
18,850
20,660
17,370
10,429
48,940
62,256
13,151
10,217
$235,755
Interest
$945
10,788
9,787
8,900
7,977
7,172
28,685
15,374
4,204
1,168
$95,000
Total
$13,230
32,385
28,637
29,560
25,347
17,601
77,625
77,630
17,355
11,385
$330,755
Year ending December 31
2014
2015
Total note payments
(In thousands)
Principal
$83
The following table is a calculation of the power revenue bond coverage ratios for the years
ended December 31, 2013 and 2012:
7. Long Term Debt (continued)
Notes to Financial Statements
8. Capitalized Lease Obligation
2013
$194,938
141,160
53,778
1,889
55,667
—
—
$55,667
$32,777
(83)
$32,694
1.70
2012
$182,635
127,415
55,220
1,404
56,624
—
—
$56,624
$33,294
(381)
$32,913
1.72
(In thousands)
Net revenues:
Operating revenues
Operating expenses, excluding depreciation
Net operating revenues
Plus interest and other income(1)
Net revenues before rate stabilization
Rate stabilization:
Deposits
Withdrawals
Total net revenues
Bond service:
Power revenue bonds
Allowance for funds used during construction
Net revenue bond service
Coverage:
Power revenue bonds
(1) Excludes unrealized holding gains and losses on investments
and loss on sale of Medicine Bow Wind Project equipment.
Arbitrage Rebate
Under U.S. Treasury Department regulations, all governmental tax-exempt debt issued after August
31, 1986, is subject to arbitrage rebate requirements. Interest income on bond proceeds that
exceeds the cost of borrowing is payable to the federal government on every fifth anniversary of
each bond issue. No arbitrage liability was outstanding as of December 31, 2013 and 2012.
Under an agreement with the Municipal Subdistrict of the Northern Colorado Water
Conservancy District, Platte River is entitled to an allocation of one-third of the available
water from the Windy Gap Project, a water diversion facility completed May 1, 1985. Under
the agreement, Platte River is obligated to pay each year one-third of the debt service and
approximately one-third of the actual operating and maintenance costs of the Windy Gap
9. Regulatory Assets
and Deferred Items
Notes to Financial Statements
9. Regulatory Assets
and Deferred Items (continued)
10. Net Investment in Capital Assets
Regulatory Assets
Additional Pension Expense – Regulatory Assets
Platte River funds its defined benefit pension plan (Note 11) based on cost estimates
developed on an actuarial basis. In addition to the base contribution, Platte River has an
additional funding charge if the market value of the assets is less than 100% of the actuarial
present value of accumulated plan benefits. Effective January 1, 2010, the Board of Directors
approved a policy under GASB 62, paragraphs 476–500, that provides for the expense
recognition of any additional pension funding charge to be spread over a ten-year period.
Each subsequent year’s additional funding charge, if any, will be added to the regulatory
prepaid asset and amortized over an additional ten-year period. The additional pension
funding charge was $423,000 for 2013 and $0 for 2012. The regulatory prepaid asset for
additional pension expense was $2,872,000 and $2,893,000 as of December 31, 2013
and 2012, respectively. The current portion of these amounts, $443,000 and $401,000 as
of December 31, 2013 and 2012, respectively, is included as a component of prepayments
and other assets in the statements of net position.
Debt Issuance Costs
GASB 65 changed the accounting for the treatment of debt issuance costs. Under GASB
65, debt issuance costs are now required to be expensed in the period incurred rather than
amortized over the life of the related debt. In order to provide recovery for debt issuance
costs through rates, the Board of Directors approved the use of GASB 62, paragraphs 476–
500, to recognize debt issuance costs as a regulatory asset and to continue to amortize these
costs over the life of the associated debt. Unamortized debt issuance costs were $1,279,000
as of December 31, 2013 and $1,530,000 as of December 31, 2012.
Deferred Items
Accrued Maintenance Outage Costs – Deferred Inflow (Regulatory Credit)
As allowed under GASB 62, paragraphs 476–500, an accrual for a portion of the estimated
incremental expenses of future scheduled major maintenance outages is normally recorded
each year. To mitigate rate pressure in the year 2013, the Board of Directors approved
shifting the 2013 accrual amount to the years 2014 and 2015. During 2012, a portion of
the estimated maintenance and replacement power costs for the next major maintenance
outage, planned for Rawhide Unit 1 in the fall of 2015, was accrued. As of December 31,
2013 and 2012, the balance in the regulatory liability account was $2,879,000.
Net investment in capital assets is comprised of the following as of December 31, 2013 and 2012:
(In thousands)
Electric utility plant
Unspent Series II Bond proceeds
Unamortized deferred loss on debt refunding
Long-term debt, net
Capitalized lease obligation
Other long-term debt payable
Accounts payable incurred for capital assets
2013
$582,884
2,513
3,071
(246,353)
(11,708)
(171)
(942)
$329,294
2012
$604,604
6,170
4,496
11. Defined Benefit Pension Plan
Notes to Financial Statements
12. Defined Contribution Pension Plan
The Platte River Power Authority Defined Benefit Plan (the Plan) is a single-employer, defined
benefit pension plan administered by Platte River. The Plan provides retirement and disability
benefits, annual cost-of-living adjustments, and death benefits to Plan members and beneficiaries.
All regular Platte River employees hired prior to September 1, 2010 are covered by the Plan.
Retirement benefits are based upon years of service rendered and salaries earned by the
employee in accordance with the Plan’s provisions. Benefit provisions of the Plan are determined
and authorized by the Board of Directors of Platte River. Platte River issues publicly available
financial statements and required supplementary information for the Plan. The report may be
obtained from Platte River.
All contributions to the Plan are authorized by the Board of Directors and made by Platte River.
The Plan’s funding policy is intended to fund current service costs as they accrue, plus an
additional funding charge if the market value of the assets is less than 100% of the actuarial
present value of accumulated plan benefits. For the year ended December 31, 2013, the annual
pension cost and required contribution by Platte River was $4,544,000. There was no net
pension obligation for the years ended December 31, 2013 and 2012. The annual required
contribution for the current year was determined as part of the January 1, 2012, actuarial
valuation using the frozen-initial-liability method. The actuarial assumptions included: (a) 8%
investment rate of return, (b) 3.0% projected salary increase due to inflation, merit and seniority
for the year 2012, reverting to 4.5% for years thereafter, and (c) 3.0% per year cost-of-living
adjustment for participants in pay status prior to January 1, 1992, and 2.0% per year for all
other participants. The actuarial value of Plan assets was determined using techniques that smooth
the effects of short-term volatility in the market value of investments over a four-year period.
Three-year trend information for Platte River’s pension cost and contributions is as follows:
The Schedule of Funding Progress, presented as required supplementary information following
the notes to the financial statements, presents multiyear trend information about whether the
actuarial value of plan assets are increasing or decreasing over time relative to the actuarial
accrued liability for benefits.
Year
Ended
2011
2012
2013
Percentage of APC
Contributed
100.0%
100.0
100.0
Net Pension
Obligation
$ —
—
—
Annual
Pension Cost (APC)
$4,390*
3,561
4,544*
(In thousands)
13. Contribution of Fiber Optic
Network to Municipalities
During 1998, Platte River constructed a fiber optic network between and around the four
municipalities to which it provides electric service. The surplus capacity in the network built
around the City of Longmont was contributed to the City of Longmont in 1998 and was recorded
as a return of capital. Platte River retained ownership of the remaining fiber optic network,
and in 1999, began leasing surplus portions of the dark fiber for the benefit of each of the
remaining three municipalities to independent telecommunication service providers. A portion
of the revenues distributed to the municipalities, $155,000, is considered a return of capital
14. Insurance Programs
15. Commitments
Notes to Financial Statements
15. Commitments (continued)
Platte River has purchased insurance policies to cover the risk of loss related to various general
liability and property loss exposures. The amount of insurance settlements has not exceeded
insurance coverage in the past three years. Platte River also provides a self-insured medical and
dental plan to its employees. Medical stop-loss insurance has been purchased, which covers
losses in excess of $175,000 per person per incident. A liability was recorded for estimated
medical and dental claims that have been incurred but not reported of $261,000 at December
31, 2013 and $261,000 at December 31, 2012. A third party administrator is used to account
for the health insurance claims and provides the estimated medical claims liability based on
prior claims payment experience. The medical claims liability is included as a component of
accounts payable in the statements of net position.
Changes in the balance of the medical claims liability during 2013 and 2012 were as follows:
Platte River has long-term purchase power contracts with the Western Area Power Administration
through September 30, 2024. The federal hydroelectric power received in 2013 provided
approximately 19% of the resources needed by Platte River to serve the loads of the four owner
municipal systems. The contract rates and the amount of energy available are subject to change.
During 2013, Platte River purchased $17,940,000 under these contracts.
Platte River and three of the other four participants in the Yampa Project own Trapper Mine,
the primary source of coal for the Yampa Project. The original contract provided delivery of
specified amounts of coal to each Yampa Participant through 2014. In September 2009, the
contract was extended through 2020. Supplemental coal will be supplied through the year
2017 under a contract with ColoWyo Coal Company. These contracts are subject to price
escalation adjustments. During 2013, coal purchases totaled $12,695,000 from Trapper Mine
and $5,329,000 from ColoWyo Coal Company.
The Rawhide Energy Station’s coal purchase and transportation agreements are under multiple-
year contracts. Base prices for these contracts are subject to future price adjustments. During
2013, Platte River paid $30,686,000 for coal delivered under these agreements.
Platte River has committed to purchase Renewable Energy Credits (RECs) for the years 2014
through 2024 with future payments of $5,761,000. During 2013, Platte River purchased
$459,000 under these REC agreements. In addition, Platte River has committed to purchase
renewable wind energy output of 12 megawatts from Silver Sage Windpower, LLC through
2027. During 2013, Platte River purchased $1,963,000 under this renewable wind energy
agreement.
During 2013, Platte River entered into two additional wind power purchase agreements.
Delivery of 32.5 megawatts from Spring Canyon Energy II, LLC is expected to begin in 2014 for
a period of 25 years. An agreement with Medicine Bow Wind, LLC to purchase the output from
the Medicine Bow Wind Project will also begin in 2014 for a period of 20 years.
Platte River and the other Yampa Project participants, in order to comply with recent
environmental regulations, have agreed to upgrade the NOx emissions control equipment
at Craig Units 1 and 2 beginning in 2012. Platte River’s share of the capital costs of these
upgrades, expected to be completed in 2017, is estimated to be approximately $35,269,000
of which $2,089,000 has been expended through December 31, 2013.
(In thousands)
Medical claims liability, beginning of year
Current year claims and changes in estimates
Claim payments
Medical claims liability, end of year
2013
$261
2,357
(2,357)
$261
2012
$243
2,487
(2,469)
$261
16. Risks and Contingencies
17. Subsequent Event
Notes to Financial Statements
In the ordinary course of business, Platte River may be impacted by various legal matters and
is subject to legislative, administrative, and regulatory requirements relative to environmental
issues. Although the outcomes of such matters is not possible to predict, management is aware of
no pending legal matters or environmental regulations for which the outcome is likely to have a
material adverse effect upon Platte River’s operations, financial position or changes in financial
position in the near term.
Platte River obtains the majority of its power from coal generating facilities. Changes in
environmental regulations could affect the cost of generation for these facilities or could require
significant capital expenditures. Such costs could materially affect the rates Platte River charges
its customers.
On January 17, 2014, Platte River paid the City of Fort Collins the remaining principal and
interest to date in the amount of $176,000 to terminate the note payable for the wind turbine
reimbursement.
Required Supplementary Information
Actuarial
Valuation
Date
1/1/11
1/1/12
1/1/13
Actuarial
Value of
Assets
(a)
$65,475
67,677
74,215
Actuarial
Accrued
Liability
(AAL)
(b)
$65,475
67,677
74,215
Actuarial
AAL
(UAAL)
(b-a)
$ —
—
—
Funded
Ratio
(a/b)
100.0%
100.0
100.0
Covered
Payroll
(c)
$18,728
18,766
18,614
UAAL as a
Percentage
of Covered
Other Information
Revenues
Operating revenues:
Municipal sales
Contract surplus sales
Short-term surplus sales
Total operating revenues
Nonoperating revenues:
Interest income(1)
Other income(2)
Total nonoperating revenues
Total revenues
Budget
$173,276
—
19,550
192,826
482
714
1,196
$194,022
Actual
$169,311
1,531
24,096
194,938
536
1,353
1,889
$196,827
Year Ended December 31, 2013
Variance
($3,965)
1,531
4,546
2,112
54
639
693
$2,805
(In thousands)
Budgetary Comparison Schedule (unaudited)
Expenditures
Operating expenses(3):
Purchased power
Fuel expense
Production expenses
Transmission expenses
Administrative and general
Total operating expenses
Debt service expenditures(4):
Interest expense
Principal
Allowance for funds used during construction
Total debt service expenditures
Capital additions:
Production
Transmission
General
Total capital additions
1974
1976
1973
1975
106 MW Peak
6 Employees
125 MW Peak
16 Employees
111 MW Peak
12 Employees
133 MW Peak
18 Employees
Groundbreaking at Craig for the
Yampa Project (Craig Units 1 & 2) in
which Platte River is an 18% owner.
Colorado legislature amends State
constitution to allow municipal joint
ownership.
The 230 kV Ault-Fort Collins
transmission line and the Timberline
Substation are completed.
The Organic Contract is revised to
increase Board to eight members,
adding each Municipality’s mayor, or
an elected council member designated
by the mayor.
Platte River Power Authority
commences operations as a
non-profit corporation.
Al Hamilton is hired as Platte
River’s first General Manager.
Colorado State
House Bill 1666
passes, establishing
Platte River as a
political subdivision
with the ability to
issue tax exempt
bonds.
1973
Platte River
Power
Authority
Timeline
90 | Annual Report 2013 Annual Report 2013 | 91
1982
194 MW Peak
131 Employees
The first Rawhide Marathon is held with 1,486
participants. The event raises money for local
charities and is held annually through 1986.
1978
1980
1977
1981
1983
1979
147 MW Peak
20 Employees
186 MW Peak
95 Employees
225 MW Peak
219 Employees
179 MW Peak
42 Employees
172 MW Peak
30 Employees
Platte River’s headquarters building is dedicated and
opened for business.
Craig Unit 1
begins commercial
operations.
The Loveland-Longmont 230 kV transmission line
and the Longs Peak Substation are completed.
An agreement between Platte River and Public
Service Company of Colorado is executed for
the sale of surplus capacity and energy from the
Yampa Project.
The Rawhide Shortline
Railroad is dedicated,
connecting Rawhide with
Burlington Northern Railroad.
Rawhide becomes home to
a herd of American Bison.
Ground is broken for
the Rawhide Energy
Station.
Craig Unit 2 begins
commercial operations.
92 | Annual Report 2013 Annual Report 2013 | 93
173 MW Peak
61 Employees
1995
344 MW Peak
180 Employees
Platte River becomes an initial
incorporator and member of
Western States Power Corp.,
a non-profit organization, as
a vehicle to provide funding
for the construction of federal
hydropower generation.
1987
1989
1992
1984
1990
1994
217 MW Peak 216 Employees
309 MW Peak
203 Employees 312 MW Peak
192 Employees
246 MW Peak
211 Employees
279 MW Peak
209 Employees
289 MW Peak
201 Employees
Thaine Michie becomes Platte
River’s third General Manager.
The first National Audobon Society
Christmas Bird Count is held at Rawhide.
A 10 kW photovoltaic solar energy
plant is dedicated at Platte River’s
headquarters.
The first Kids Kamp is
held for the children of
Platte River employees.
The week-long camp
held each June through
1997 teaches campers
about safety, health and
nutrition, diversity, and
team work.
Platte River begins its
alternative vehicle program
with two modified electric
Fort Escort station wagons.
James Pendergrass becomes Platte
River’s second General Manager.
The Rawhide Energy Station begins
commercial operations on March 31,
under budget and one day ahead of
schedule.
The 30-mile 230 kV, Ault-Fort St.
Vrain line is completed to provide an
interconnection with Public Service Co.
of Colorado and increase transmission
capacity and reliability.
Platte River’s first Intergrated
Resource Plan is produced.
Platte River’s annual system peak
2000
2002
1997
2001
1999
371 MW Peak
161 Employees
498 MW Peak
183 Employees
431 MW Peak
166 Employees
466 MW Peak
172 Employees 533 MW Peak 189 Employees
1998
411 MW Peak
164 Employees
Platte River purchases
the assets of what will
become the Medicine
Bow Wind Project.
After months of preparation,
January 1 (Y2K) passes
without incident.
Platte River commits to voluntarily reduce SO2 and NOx emmissions
from Rawhide Unit 1 by executing a Voluntary Emmissions Reduction
Agreement with the State of Colorado.
The Ka$h for Kilowatts energy efficiency program is launched.
Rawhide Units A, B, and C begin commercial operations.
Fiber optic lines are installed between Platte
River and the owner municipalities to replace
the aging microwave system used for electric
system operations.
Two all-electric Toyota RAV 4 vehicles are added to Platte
River’s fleet.
A 14.5 mile pipeline is built to provide fuel for natural
gas turbines being installed at Rawhide.
Brian Moeck becomes
Platte River’s fourth
General Manager.
96 | Annual Report 2013
2004
2006
2008
2010
2003
2005
2007
2009
560 MW Peak
189 Employees
618 MW Peak
192 Employees
635 MW Peak
211 Employees
576 MW Peak
217 Employees
576 MW Peak
185 Employees
603 MW Peak
198 Employees
634 MW Peak
216 Employees
615 MW Peak
218 Employees
Rawhide Unit D begins
commercial operations.
The Fort Collins Area
Chamber of Commerce
presents Platte River
with an Environmental
Business Award for
Resource Conservation.
Rawhide Unit F begins commercial
operations.
Power Magazine includes Rawhide
Unit 1 in its article on the world’s
top five coal-fired plants.
A new state-of-the-art
mercury removal system is
installed at Rawhide.
Platte River becomes
a charter partner in
the City of Fort Collins
Climate Wise Program.
Key Rawhide control systems are
replaced with state-of-the-art digital
technology.
Clipper Windpower’s 2.5 MW
Liberty I prototype wind turbine
is installed at Medicine Bow.
Platte River purchases the energy
produced by the Liberty I for Fort
Collins Utilities’ Wind Program and
the Town of Estes Park.
The one-millionth work
hour without a lost-time
injury is logged at
Rawhide.
The Larimer
County Board of
2012
2011
2013
640 MW Peak
221 Employees 649 MW Peak
218 Employees
653 MW Peak
222 Employees
Jackie Sargent becomes Platte River’s fifth
General Manager.
Platte River completes construction of a
9.4 mile, 230 kV transmission line to
enhance reliability for Fort Collins and
Loveland residents.
Rawhide Unit 1 achieves
an all-time high continuous
operating record of 292 days
after producing over 1.7
million MWh of energy.
A 22 mile, 230 kV
transmission line serving
the City of Longmont is
completed.
Vision and Mission
Statements are updated.
Annual energy savings
from efficiency programs
coordinated and at least
partially funded by Platte
River reach 101,886 MWh.
A new strategic planning
process begins.
2014
Platte River
Power
Authority
Timeline
100 | Annual Report 2013
Annual Report 2013 | 103
Headquarters:
Began Operations:
General Manager:
Governance:
The Organization:
Employees
(Dec. 31, 2013):
2013 Peak Municipal
Demand:
Historical Peak Municipal
Demand:
Platte River at a Glance
Fort Collins, Colorado
1973
Jackie A. Sargent
Platte River is governed by an eight-member Board of
Directors comprised of each mayor or designee and a
person appointed by each Municipality’s governing body.
Platte River is a political subdivision of the State of Colorado.
218
649 MW
653 MW on June 25, 2012
Platte River Power Authority delivers safe, reliable, environmentally responsible, and
competitively priced electricity and services to its owner municipalities of Estes Park, Fort Collins,
Longmont and Loveland, Colorado where they are distributed by each municipal utility to
residents and businesses.
Carbon Dioxide (CO2):
Capacity Factor:
Circuit:
Electric System:
Gigawatt-hour (GWh):
Greenhouse Gas (GHG):
Hydropower:
Kilowatt (kW):
Kilowatt–hour (kWh):
Megawatt (MW):
Megawatt-hour (MWh):
Substation:
Voltage:
Watt:
Watt-hour:
Glossary
A greenhouse gas that is a by-product of combustion (see
Greenhouse Gas).
A measure of power plant utilization calculated as the ratio of
the actual output of the plant over a period of time to its output
if it had operated at full capacity over the same period of time.
A pathway through which electricity moves.
Physically interconnected generating plants, transmission lines,
and related equipment.
One billion watt-hours (see Watt-hour).
A gaseous component of the atmosphere that traps some
of the heat coming from the sun near the Earth’s surface.
Greenhouse gases include water vapor, carbon dioxide,
methane, nitrous oxide, and chlorofluorocarbons.
Electricity generated using the energy of moving water.
One thousand watts (see Watt).
One thousand watt-hours (see Watt-hour).
One million watts (see Watt).
2000 East Horsetooth Road
Fort Collins, Colorado 80525-5721
970.226.4000
One million watt-hours (see Watt-hour).
An electric system facility used to change voltage from one
level to another and/or switch circuits or lines in and out of
service (see Circuit, Electric System and Voltage).
The force that causes electricity to flow through a circuit (see
Circuit).
A unit of electric power.
The amount of energy used in one hour by a device requiring
one watt of electricity for operation (see Watt).
102 | Annual Report 2013
Commissioners
presents Platte River
with its Environmental
Stewardship Award.
Platte River passes its first NERC reliability
audit with no areas of concern and no
violation of any standard or requirement.
Platte River begins receiving energy generated
by the Silver Sage Windpower Project.
98 | Annual Report 2013 Annual Report 2013 | 99
demand occurs in the summer for
the first time.
Microwave equipment is installed to
provide more reliable communications
throughout Platte River’s transmission
system.
The Rawhide Fire Department is formed
to protect the new plant and the people
who work there.
Annual Report 2013 | 95
Total expenditures
Revenues less expenditures
Budget
$22,884
54,768
45,567
7,397
12,146
142,762
11,642
21,225
(113)
32,754
16,735
7,051
1,808
25,594
$201,110
($7,088)
Actual
$23,760
52,592
44,982
7,347
12,277
140,958
11,642
21,225
(83)
32,784
10,584
4,189
1,432
16,205
$189,947
$6,880
Year Ended December 31, 2013
Variance
($876)
2,176
585
50
(131)
1,804
—
—
(30)
(30)
6,151
2,862
376
9,389
$11,163
$13,968
(In thousands)
Budgetary Comparison Schedule (unaudited, continued)
Other Information
(1) Interest income excludes unrealized investment holding gains and losses.
(2) Loss on sale of Medicine Bow Wind Project equipment is not included.
(3) Operating expenses do not include depreciation and other nonappropriated expenses.
(4) Debt service expenditures represent monthly principal and interest funding.
88 | Annual Report 2013 Annual Report 2013 | 89
Payroll
[(b-a)/c]
—
—
—
(In thousands)
Schedule of Funding Progress (unaudited)
86 | Annual Report 2013 Annual Report 2013 | 87
84 | Annual Report 2013 Annual Report 2013 | 85
on the original asset. As of December 31, 2013 and 2012, lease advances of $990,000
and $1,073,000, respectively, have been recorded as a liability in the statements of net
position. The municipalities’ portion of the lease payments received is flowed through to the
municipalities, net of Platte River’s costs.
Effective September 1, 2010, the Board of Directors established the Platte River Power Authority
Defined Contribution Plan (in accordance with the Internal Revenue Code Section 401(a)) for all
regular employees hired on or after that date. As of December 31, 2013, there were 36 plan
participants. The plan’s assets are held in an external trust account. The General Manager of
Platte River is the Plan Administrator and benefit provisions and contribution requirements are
authorized and may be amended by the Board of Directors.
Platte River contributed the required contribution for plan participants of 5% of their earnings
for the years 2013 and 2012. Platte River will also contribute to the 401(a) an amount equal to
50% of the participant’s contributions to a separate 457(b) plan, taking into account only such
participant contributions up to 6% of the participant’s earnings. For the years ended December
31, 2013 and 2012, contributions to the 401(a) plan by Platte River were $203,000 and
$89,000, respectively. The plan’s records are kept on the accrual basis.
Annual Report 2013 | 83
* As described in Note 9, $2,872,000 of these amounts has been deferred.
(269,781)
(14,225)
(251)
(674)
$330,339
80 | Annual Report 2013 Annual Report 2013 | 81
Deferred Outflows
With the adoption of GASB 65, certain items we previously reported as assets are now
classed as deferred outflows. As of December 31, 2013 and 2012, deferred outflows
consisted of the following:
(In thousands)
Unamortized deferred loss on refunding of debt
Other
2013
$3,072
1,408
$4,480
2012
$4,496
1,127
$5,623
Project. These payments, which totaled $4,870,000 and $4,328,000 in 2013 and 2012,
respectively, have been included in operations and maintenance expenses in the accompanying
statements of revenues, expenses and changes in net position, as allowed under GASB 62,
paragraphs 476–500. Platte River originally recorded $41,590,000 as a capitalized lease for
its water allotment and has recorded $29,882,000 accumulated amortization as of December
31, 2013. The remaining liability of $11,708,000 represents Platte River’s share of principal
amounts of the Subdistrict’s Series H, I and J Bonds outstanding as of December 31, 2013.
These amounts will be amortized over the terms of the Subdistrict’s Water Revenue Bonds, which
mature in 2017.
The following is a schedule of the future minimum lease payments for the capital lease:
Year ending December 31
2014
2015
2016
2017
Less: amount representing interest
Total lease payments
Less: due within one year
Present value of future net payments
(In thousands)
$3,241
3,243
3,394
3,398
13,276
(1,568)
11,708
(2,641)
$9,067
78 | Annual Report 2013 Annual Report 2013 | 79
88
$171
Interest
$9
4
$13
Total
$92
92
$184
In March 2012, Platte River issued $65,475,000 Series II Power Revenue Bonds at a true interest
cost of 3.16%. Proceeds from the bonds and additional contributions by Platte River were used
to refund $42,130,000 of Series EE Power Revenue Bonds. Additionally, all of the Series EE
Bonds became callable and were paid in full from cash held in trust. Proceeds were also used to
finance $30,263,000 of transmission facility additions and upgrades. The refunding resulted in an
economic gain (net present value savings) of $4,607,000.
In prior years, Platte River defeased certain revenue bonds by placing the proceeds of the
refunding bonds and available cash in an irrevocable trust to provide for all future debt service
payments on the refunded bonds. Accordingly, the trust account assets and the liability for the
defeased bonds are not included in Platte River’s financial statements. As of December 31, 2013,
$16,975,000 of the defeased Series I Bonds remains outstanding.
Other Long-term Debt
Wind turbine reimbursement represents a note payable to the City of Fort Collins for the acquisition
of wind turbines. The note is payable in ten annual installments of $92,000 each, beginning July
2006, which includes interest at 5.0%. The noncurrent portion of the wind turbine reimbursement
is included as a component of other liabilities and credits and the current portion is included in
accrued liabilities and other in the statements of net position. The note is uncollateralized.
Maturities are as follows as of December 31, 2013:
Bond Service Coverage
Power revenue bonds are secured by a pledge of the revenues of Platte River after deducting
operating expenses, as defined in the General Power Bond Resolution. The power revenue bonds
issued by Platte River may be subject to early call provisions. Principal and interest payments are
met from net revenues earned from wholesale electric rates charged to the municipalities and
others, and from interest earnings.
Under the General Power Bond Resolution, Platte River is required to charge wholesale electric
energy rates to the municipalities that are reasonably expected to yield net revenues for the
forthcoming 12-month period that are at least equal to 1.10 times total power bond service
requirements. Under the General Power Bond Resolution, Platte River has established a Rate
Stabilization Reserve Account. Deposits to this account are a reduction to current net revenues
for purposes of computing bond service coverage. Future withdrawals will increase net revenues
for purposes of computing bond service coverage and could assist Platte River, at such time, in
meeting its wholesale rate covenant. The balances in the Rate Stabilization Reserve Account at
December 31, 2013 and 2012 were $20,311,000 and $20,325,000, respectively, excluding
accrued interest. The Rate Stabilization Reserve Account is included in dedicated funds and
investments in the statements of net position.
76 | Annual Report 2013 Annual Report 2013 | 77
228
—
2
$72,619
Reductions
($65,481)
(2,388)
(176)
—
(76)
(265)
(83)
—
($68,469)
December 31
2012
$269,781
14,225
3,626
186
251
3,588
1,073
332
$293,062
Due within
one year
$21,265
2,517
—
—
80
202
83
—
$24,147
Long-term debt, net
Capitalized lease obligation
Reclamation liability
Disposal facility closure costs
Wind turbine reimbursement
Compensated absences
Lease advances
Yampa employee obligation
Total noncurrent liabilities
Long-term debt outstanding as of December 31, 2013 and 2012, consists of the following:
Fixed rate bond premium costs are amortized over the terms of the related bond issues.
Interest expense for the years ended December 31, 2013 and 2012, is comprised
of the following:
2013
$11,642
(487)
$11,155
2012
$12,433
(341)
$12,092
(In thousands)
Interest
Amortization of bond related costs
Total interest expense
74 | Annual Report 2013 Annual Report 2013 | 75
171
3,790
990
334
$267,621
Due within
one year
$21,060
2,641
—
—
83
250
83
—
$24,117
Long-term debt, net
Capitalized lease obligation
Reclamation liability
Disposal facility closure costs
Wind turbine reimbursement
Compensated absences
Lease advances
Yampa employee obligation
Total noncurrent liabilities
Restricted funds and investments
Dedicated funds and investments
Cash and cash equivalents
Other temporary investments
Total investments
Fair
Value
$31,934
54,038
14,362
21,385
$121,719
Accrued
Interest
$11
56
1
19
$87
Total
$31,945
54,094
14,363
21,404
$121,806
(In thousands)
Concentration of Credit Risk
Platte River’s investment policy states that assets held in Platte River’s funds shall be diversified to
eliminate the risk of loss resulting from over concentration of assets in a specific maturity, a specific
issuer or a specific class of securities. As of December 31, 2013, more than 5% of Platte River’s
investments were concentrated in FFCB, FHLMC and FNMA. These investments are 9%, 12%
and 14%, respectively, of Platte River’s total investments (including outside investment pools and
certificates of deposit).
Noncurrent liability activity for the year ended December 31, 2013, was as follows:
72 | Annual Report 2013 Annual Report 2013 | 73
1,001
4,006
13,603
8,618
—
$22,221
2 - 3
$7,299
3,984
1,992
8,528
8,926
30,729
—
—
$30,729
3 - 4
$ —
1,988
—
—
—
1,988
—
—
$1,988
4 - 5
$ —
—
—
—
—
—
—
—
$ —
Fair
Value
$23,823
8,977
8,363
15,000
12,961
69,124
13,351
39,244
$121,719
Investment Maturities (in years)
(In thousands)
Cash and
Investment Type
U.S. Treasuries
U.S. Agencies:
FFCB
FHLB
FHLMC
FNMA
Total securities
Certificates of deposit
Cash & money market funds
Total cash and investments
Less
Than 1
$8,010
6,583
8,363
7,493
7,018
37,467
3,171
39,244
$79,882
1 - 2
$13,314
334
—
3,005
—
16,653
4,837
—
$21,490
2 - 3
$2,499
2,060
—
—
2,006
6,565
5,343
—
$11,908
3 - 4
$ —
—
—
4,502
3,937
8,439
—
—
$8,439
4 - 5
$ —
—
—
—
—
—
—
—
$ —
As of December 31, 2012, Platte River had the following cash and investments and
related maturities:
Restricted funds and investments
Dedicated funds and investments
Cash and cash equivalents
Other temporary investments
Total investments
Fair
Value
$28,203
59,049
18,092
21,477
$126,821
Accrued
Interest
$6
78
—
15
$99
Total
$28,209
59,127
18,092
21,492
$126,920
(In thousands)
70 | Annual Report 2013 Annual Report 2013 | 71
(12,221)
(12,221)
(7,597)
(327)
(411)
(8,335)
4,339
($16,217)
December 31
2013
$14,517
23,925
38,442
882,033
337,534
34,596
1,254,163
(709,721)
$582,884
(In thousands)
Nondepreciable assets:
Land and land rights
Construction work
in progress
Depreciable assets:
Production plant
Transmission plant
General plant
Less accumulated
depreciation
Total electric utility plant
December 31
2011
$14,517
55,572
70,089
874,167
294,119
33,652
1,201,938
(647,664)
$624,363
Increases
$ —
16,308
16,308
8,937
41,812
1,175
51,924
(33,503)
$34,729
Decreases
$ —
(51,341)
(51,341)
(2,026)
(417)
(1,166)
(3,609)
462
($54,488)
December 31
2012
$14,517
20,539
35,056
881,078
335,514
33,661
1,250,253
(680,705)
68 | Annual Report 2013 $604,604
64 | Annual Report 2013 Annual Report 2013 | 65
of each of these municipalities (except for energy produced by each municipality’s hydro
facilities in service at September 1974). These contracts currently extend through December
31, 2050. Each of the four participant municipalities has a residual interest in Platte River’s
assets and liabilities upon dissolution, which is proportional to the total revenue received from
each municipality since Platte River was organized, less any contributions previously distributed.
Based upon electric revenues billed from inception through December 31, 2013, these residual
interests are approximately as follows:
Under Colorado law and the municipal contracts, Platte River’s Board of Directors has the
exclusive authority to establish the electric rates to be charged to the member municipalities.
Platte River must follow specified statutory procedures, including public notice and holding a
hearing to receive public comments, before adopting an annual budget and implementing any
changes in the electric rates.
City of Fort Collins
City of Longmont
City of Loveland
Town of Estes Park
Residual Interest
48%
26%
21%
5%
100%
See accompanying notes
62 | Annual Report 2013 Annual Report 2013 | 63
Interest income
Other income (expense)
Interest expense
Allowance for funds used during construction
Net decrease in fair value of investments (Note 5)
Total nonoperating revenues (expenses)
Income before contributions
Contributions of assets to municipalities (Note 13)
Change in net position
Net position at beginning of year
Net position at end of year
Statements of Cash Flows
2013
$193,533
(115,486)
(28,391)
49,656
(12,468)
(674)
350
—
—
—
(21,265)
(11,692)
(155)
(45,904)
(1,480)
1,457
(23)
3,729
14,363
$18,092
2012
$181,483
(108,856)
(27,533)
45,094
(12,688)
(7,889)
—
(1,021)
(42,130)
72,388
(20,330)
(12,480)
(155)
(24,305)
(25,463)
1,404
(24,059)
(3,270)
17,633
$14,363
Years Ended December 31,
Cash flows from operating activities
Receipts from customers
Payments for operating goods and services
Payments for employee services
Net cash provided by operating activities
Cash flows from capital and related financing activities
Additions to electric utility plant
Payments from accounts payable incurred for electric
utility plant additions
Proceeds from sale of equipment
Bond Issuance Costs paid and escrowed
interest payments
Deposits into escrow for bond defeasance
Proceeds from issuance of long-term debt
Principal payments on long-term debt
Interest payments on long-term debt
Contributions to municipalities related to assets
Net cash used in capital and related
financing activities
Cash flows from investing activities
Purchases and sales of temporary and restricted
investments, net
Interest and other income, including realized
gains and losses
Net cash used in investing activities
Increase (decrease) in cash and cash equivalents
Balance at beginning of year in cash and
cash equivalents
Balance at end of year in cash and cash equivalents
(In thousands)
Restated
Financial Statements
See accompanying notes
See accompanying notes
60 | Annual Report 2013 Annual Report 2013 | 61
Current assets:
Cash and cash equivalents (Notes 3 and 5)
Other temporary investments (Note 5)
Accounts receivable—municipalities
Accounts receivable—other
Fuel inventory, at last-in, first-out cost
Materials and supplies inventory, at average cost
Prepayments and other assets
Total current assets
Noncurrent assets:
Regulatory assets (Note 9)
Long-term prepayments
Total noncurrent assets
Total assets
Deferred Outflows of Resources
Deferred outflows of resources (Note 9)
(In thousands)
Restated
Statements of Net Position Statements of Net Position (continued)
2013
$225,293
9,067
9,144
243,504
21,060
2,641
11,247
949
1,734
37,631
281,135
2,879
329,294
24,750
124,413
$478,457
2012
$248,516
11,708
8,691
268,915
21,265
2,517
11,029
1,010
1,565
37,386
306,301
2,879
330,339
24,772
114,213
$469,324
December 31,
Liabilities
Noncurrent liabilities (Notes 3 and 6);
Long-term debt, net (Note 7)
Capitalized lease obligation (Note 8)
Other liabilities and credits
Total noncurrent liabilities
Current liabilities:
Current maturities of long-term debt (Notes 6 and 8)
Current portion of capitalized lease obligation (Note 6)
Accounts payable
Accrued interest
Accrued liabilities and other
Total current liabilities
Total liabilities
Deferred Inflows of Resources
Regulatory credit (Note 9)
Net Position
Net investment in capital assets (Note 10)
Restricted
Unrestricted
Total net position
(In thousands)
Restated
See accompanying notes
See accompanying notes
58 | Annual Report 2013 Annual Report 2013 | 59
majority of this variance was the result of below-budget production additions due to project
schedule changes and construction delays. A portion of the variance will be carried over to the
2014 Annual Budget in order to complete the projects that were not completed in 2013.
Bond Issue
Power Revenue Bonds
Series GG
Series HH
Series II
Moody’s
Aa2
Aa2
Aa2
S&P
AA
AA
AA
Fitch
AA
AA
AA
56 | Annual Report 2013
(155)
11,254
446,821
$458,075
(In thousands)
Years Ended December 31,
Change in Net Position
Net position increased $9.1 million in 2013, $2.1 million lower than 2012. An increase
in operating revenues was more than offset by an increase in operating expenses and
nonoperating expenses, net. Net position increased $11.2 million in 2012, approximately
the same increase as 2011. An increase in operating revenues and a decrease in operating
expenses were offset by an increase in nonoperating expenses, net.
• Operating revenues in 2013 increased
$12.3 million over 2012. This increase
was due to a $9.6 million increase
in municipal sales and a $2.7 million
increase in surplus sales and other
revenues. Operating revenues in 2012
increased $1.2 million over 2011. This
increase was due to a $9.2 million
increase in municipal sales partially
offset by an $8.0 million decrease in
surplus sales.
• Operating expenses in 2013 increased
$13.6 million over 2012. The largest
increase was in fuel expense as a result
of the Rawhide coal contract moving
from a fixed charge to market price.
Smaller increases were reflected in the
other operating expense categories.
Operating expenses in 2012 decreased
$0.4 million from 2011. This decrease
was primarily due to lower purchased
power costs partially offset by increases
in depreciation, fuel, and operations and
maintenance expenses.
• Nonoperating expenses, net, in 2013
increased $0.8 million over 2012. The
increase included a loss recorded on
the sale of the Medicine Bow Wind
Project equipment offset by a decrease
in interest expense. Also, the allowance
for funds used in construction decreased.
Nonoperating expenses, net, in 2012
increased $1.6 million over 2011.
The largest change was a decrease in
the allowance for funds used during
construction due to the majority of the
transmission capital projects being
completed by 2012. This was partially
offset by decreases in amortization
of bond financing costs and interest
expense. Also, increases in other income
and in the fair value of investments were
offset by a reduction in interest income.
54 | Annual Report 2013 Annual Report 2013 | 55
42,996
308,853
9,642
342,980
24,608
90,487
$458,075
(In thousands)
Restated Restated
• Electric utility plant decreased $21.7
million during 2013, primarily the result of
a $29.0 million increase in accumulated
depreciation. Also, plant and equipment
in service increased $3.9 million and
construction work in progress increased
$3.4 million. In 2012, electric utility plant
decreased $19.8 million as the result of
an increase in accumulated depreciation
and a decrease in construction work in
progress partially offset by an increase in
plant and equipment in service. Additional
details about electric utility plant can be
found in Note 4 to the financial statements.
• Special funds and investments at December
31, 2013 increased $1.3 million over
December 31, 2012. The increase was
the result of an increase in dedicated funds
partially offset by a decrease in restricted
funds due to capital expenditures from
the Series II project fund. Special funds
and investments at December 31, 2012
increased $25.4 million over December
31, 2011. The increase was primarily the
result of issuing the Series II Bonds.
• Current and other assets increased $5.5
million during 2013 as the result of an
increase in cash and cash equivalents and
accounts receivable. In addition, increases
in fuel and materials and supplies
inventories were offset by a decrease in
regulatory assets and prepayments. In
2012, current and other assets decreased
$1.5 million as the result of a decrease in
cash and cash equivalents, partially offset
by an increase in accounts receivable,
materials and supplies inventory, and
prepayments.
• Deferred outflows of resources decreased
$1.1 million in 2013 primarily due to a
reduction in unamortized deferred losses
on debt refundings partially offset by an
increase in other deferred costs. In 2012,
deferred outflows of resources decreased
$2.1 million largely due to a decrease
in unamortized deferred losses on debt
refundings.
• Noncurrent liabilities decreased $25.4
million in 2013. The decrease was
the result of the principal retirements
of debt, a decrease in the capitalized
lease obligation, and an increase in the
reclamation liability. Noncurrent liabilities
increased $3.1 million in 2012 primarily
as the result of the issuance of the Series
II Bonds. Additional details about long-
term debt can be found in Note 7 to the
financial statements.
52 | Annual Report 2013 Annual Report 2013 | 53
equipment. The loss was the net result of
the proceeds received from the sale and
the write-off of the net book value of the
assets. Lower interest expense in 2013
partially offset the loss.
• Capital expenditures of $16.2 million
were made in 2013 for additions and
upgrades to the power plants and the
transmission system. The largest portion,
$10.6 million, was for additions and
upgrades to the Rawhide and Craig Units.
Transmission additions totaled $4.2 million
and included expenditures for substation
perimeter walls and transformer additions.
General additions totaled $1.4 million
and included communication, facility and
information technology projects.
Management’s Discussion
and Analysis (unaudited) Financial Highlights
Management’s Discussion and Analysis (unaudited)
50 | Annual Report 2013 Annual Report 2013 | 51
has not been subjected to the auditing
procedures applied in the audit of the basic
financial statements, and accordingly, we
do not express an opinion or provide any
assurance on it.
Denver, Colorado
March 14, 2014
Management’s Responsibility for the
Financial Statements
Management is responsible for the
preparation and fair presentation of these
financial statements in accordance with
accounting principles generally accepted in
the United States of America; this includes
the design, implementation and maintenance
of internal control relevant to the preparation
and fair presentation of financial statements
that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion
on these financial statements based on
our audits. We conducted our audits
in accordance with auditing standards
generally accepted in the United States
of America. Those standards require that
we plan and perform the audit to obtain
reasonable assurance about whether the
financial statements are free from material
misstatement.
An audit involves performing procedures to
obtain audit evidence about the amounts
and disclosures in the financial statements.
The procedures selected depend on the
auditor’s judgment, including the assessment
of the risks of material misstatement of the
financial statements, whether due to fraud or
error. In making those risk assessments, the
auditor considers internal control relevant to
the entity’s preparation and fair presentation
of the financial statements in order to design
audit procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness
of the entity’s internal control. Accordingly,
we express no such opinion. An audit also
includes evaluating the appropriateness
of accounting policies used and the
reasonableness of significant accounting
estimates made by management, as well as
evaluating the overall presentation of the
financial statements.
We have audited the accompanying
basic financial statements, which are
comprised of the statements of net
position as of December 31, 2013 and
2012, and statements of revenues,
expenses and changes in net position
and of cash flows for the years then
ended, and the related notes to the
financial statements as listed in the
table of contents of Platte River Power
Authority (Platte River).
Independent Auditor’s Report on Financial
Statements and Supplementary Information
48 | Annual Report 2013 Annual Report 2013 | 49
Board of Directors
Platte River Power Authority
Fort Collins, Colorado
279,868
303,721
333,600
374,800
Source: Colorado Department of Labor and Employment, Fort Collins-Loveland
Metropolitan Statistical Area (Includes Estes Park)
Source: Federal Housing Finance Agency, Fort Collins-Loveland
Metropolitan Statistical Area (Includes Estes Park)
Source: Larimer County Building Department Sources: Colorado State Demography Office (Historical)
and Platte River Power Authority (Future)
Annual Report 2013 | 43
using increasing levels of renewable resources and the associated cost
implications.
4. Update Platte River’s Renewable Energy Supply Policy.
5. Analyze the potential benefits and costs of distributed generation at
municipal utility and retail customer levels and integrate cost effective
alternatives into the next Integrated Resource Plan.
6. Track innovative technologies to enhance energy supply and implement
cost effective improvements utilizing new technology opportunities.
7. Seek Board approval of a new Integrated Resource Plan that integrates
increased renewable energy, distributed generation, resource diversification
and greenhouse gas reduction, while maintaining Platte River’s position as
the lowest cost wholesale electric supplier located in Colorado.
40 | Annual Report 2013 Annual Report 2013 | 41
operational considerations, along with ensuring sales of
excess capacity and energy. Planning in the early 2000s
was dominated by the addition of new gas generation
to meet the fast growing summer peak demands of the
Municipalities.
Platte River’s Board of Directors and management
team began a new phase of planning in 2013 that
will support strategic thinking and the development
of adaptive strategies for the future. Supply resources
will again be the primary focus with emphasis placed
on flexibility for responding to significant risks and
challenges such as climate change, new environmental
legislation and regulations related to coal generation,
fuel and market price volatility, physical and cyber
security threats, an aging workforce, increasingly diverse
needs among the Municipalities, and transitions in
wholesale markets.
Platte River’s Board of Directors and management
team reviewed these and other challenges, in addition
to opportunities facing the organization. Input from
citizens regarding their preferences for future generation
resources and the importance of the price they pay for
electricity was collected, and a new Strategic Planning
& Customer Service Division was established to give
increased attention to long-term planning and risk
management.
Platte River is Active in its Communities Planning is a Priority
Volunteer activities
38 | Annual Report 2013
turbines. A 20-year Power Purchase
Agreement is executed.
Medicine Bow Wind Project
5,486
3,096,097
$104,406
135,229
747
$240,382
8,509
9.23
$785.26
Energy Market Statistics (continued)
2011
26,971
298,192
175,105
156,556
656,824
639,460
131,617
1,493,417
825,550
731,522
3,182,106
1,051,491
4,233,597
2012
24,394
302,602
181,196
157,450
665,642
652,761
126,889
1,508,735
813,675
742,919
3,192,218
820,993
4,013,211
Wholesale Power Requirements
Peak Demand (kW)
Estes Park
Fort Collins
Longmont
Loveland
Sum of Municipalites’ Peaks
Demand - Platte River Coincident
Energy (MWh)
Estes Park
Fort Collins
Longmont
Loveland
Sum of Municipalities’ Energy
Sales to Others and Miscellaneous2
Energy-Total System
2013
25,793
295,924
177,143
160,442
659,302
648,709
130,682
1,500,215
812,226
752,462
3,195,585
814,629
4,010,214
1Compiled from preliminary sales and other reports of the municipalities supplied with electric energy by Platte River.
2Includes energy imbalance and exchange agreement settlements.
16 | Annual Report 2013
3,500
3,000
2,500
2,000
1,500
1,000
500
0
3,196
729
3,925
3,192
745
3,937
3,182
937
4,119
Revenues, Expenses, Income (In thousands)
Operating revenues
Operating expenses
Net nonoperating
expenses
Income before
contributions
2013 2012 2011
$250,000
$200,000
$150,000
$100,000
$50,000
$0
-$50,000
-$100,000
-$150,000
-$200,000 -$174,515
-$11,135
$9,288
$194,938
-$160,918
-$10,313
$11,404
$182,635
-$161,284
-$8,750
$11,409
$181,443
14 | Annual Report 2013 Annual Report 2013 | 15
our communities by ensuring the ongoing
success of Platte River for the next 40 years
and beyond.
2013 was a landmark year for Platte River
Power Authority as we celebrated 40 years
of operational excellence and service to our
four owner municipalities. The vision of the
individuals who founded Platte River and
the hard work and dedication of employees
and Board members over four decades laid
the foundation for success. As a tribute to all
who have been part of Platte River’s proud
history, this year’s Annual Report features
reflections from several employees who have
contributed over 25 years of service
to the organization.
While we look back in this report at some of
the events and achievements of the past forty
years, special note is made of operational
and financial goals that were accomplished
in 2013:
• Rawhide Unit 1 achieved yet another year
of outstanding performance and remained
one of the best utilized coal-fired plants in
the U.S.
• As part of our ongoing plan to acquire
new renewable energy, we executed an
From the Chairman of the Board
and General Manager
4 | Annual Report 2013 Annual Report 2013 | 5
To Our Readers
Tom J. Roiniotis
Chairman of the Board
Jackie A. Sargent
General Manager/CEO