Board of Directors Meeting
April 28, 2016
March Operational Results
Category
March
Variance
Municipal Demand (MW)
(5.0%)

(5.1%)

Municipal Energy (MWh)
0.8%

(0.3%)

(20.4%)

(24.3%)

24.4%

21.5%

Surplus Sales Volume (MWh)
(51.3%)

(55.0%)

Surplus Sales Price ($/MWh)
(20.0%)

(16.1%)

1.5%

(3.6%)

Baseload Generation (MWh)
Wind Generation (MWh)
Dispatch Cost ($/MWh)
2016
Variance
 > 2% |  +\- 2% of budget |  < -2%
Board of Directors Meeting
April 28, 2016
Financial Summary
Category
March
Variance from
Budget
Year to Date
Variance from
Budget
($ in millions)
($ in millions)
Net Income
$0.6

$(0.3)

Debt Coverage
.27x

(.07x)

$(1.3)

$(5.4)

Operating Expenses
$1.8

$5.0

Capital Additions
$5.8

$7.9

Revenues
 > 2% |  +\- 2% of budget |  < -2%
Board of Directors Meeting
April 28, 2016
Debt Financing Summary
Series JJ Bonds
April 28, 2016
Overview
• Series JJ bonds were sold on April 12
• Competitive sale process
• Total par sold was $147.2 million
• Proceeds of $179 million
• Use of proceeds:
• $60 million to fund transmission and production capital projects
• $119 million refund a portion of the outstanding Series HH bonds
• Bonds are rated AA by both Fitch and S&P
• Final maturity of the bonds is 2036
• Bonds maturing after 2026 are callable in 2026 at par
• Closing occurred on April 26, 2016
Competitive Sale Results
• Sale occurred on April 12 at 8:30 a.m.
• Bidders were required to pre-register and
submit bids via Parity platform as true
interest cost or TIC
Bidder (Investment Bank)
TIC
JP Morgan Securities LLC
2.1882
Bank of America/ Merrill Lynch
2.1975
Wells Fargo Bank, NA
2.2006
• One basis point equals $128,000 of interest
cost to Platte River
Goldman Sachs
2.2041
Citigroup Global Markets, Inc
2.2089
• $2M of total savings between lowest and
highest bidder
Morgan Stanley & Co, LLC
2.2131
RBC Capital Markets
2.2283
Jefferies LLC
2.2383
Robert W. Baird & Co, Inc
2.3451
• Nine bidders with TIC bids ranging from
2.19% to 2.35%
• “AA” credit provides significant interest
expense savings, “A” credit price
approximately 27 bps higher or $3.5M
• Based on expected AA yields, Platte River
results ranged 2-9 basis points lower
depending on maturity
Series HH Refunding
• Advance refunded $105.4 million of Series HH bonds
• Maturity dates 2020 – 2029, callable 06/01/2019
• Present value savings of $13.7 million, or 13%
• Average annual debt service savings of approximately
$1.2 million from 2017 through 2029
Millions
$16
Series HH Bonds - Debt Service
$14
$12
$10
$8
$6
$4
$2
$0
2016
2018
2020
Prior Debt Service
2022
2024
Refunding Debt Service
2026
2028
Debt Service
Millions
$35
New Money DS
Refunding DS
$30
Existing DS
$25
$20
$15
$10
$5
$0
2016
2018
2020
2022
2024
2026
2028
2030
2032
Debt service on existing debt declines significantly in
2018, when Series GG Bonds mature
2034
2036
Summary
• Very successful bond sale, excellent results
• Lowest rate on our fixed rate debt in Platte River’s history
• AA credit rating affirmed by S&P and Fitch
• Refunding of HH bonds
• Annual interest savings of $1.2 million through 2029
• Present value savings on the refunding of $13.7M
• Funding for transmission & production capital projects
• Maintain SFP target of 200 days cash on hand
Board of Directors Meeting
April 28, 2016
Western IRP Requirements
Andy Butcher
Director of Operations
Western IRP Requirements
• A new rule with Integrated Resource Plan (IRP) requirements
was approved and published in the Federal Registry on
10/20/1995.
• This rule made it a requirement for any Long Term Firm Electric
Customer to file an IRP every 5 years.
• Platte River is a Long Term Firm Electric Customer of Western
due to our Federal Hydropower contracts.
• On 7/27/2011, Western approved the last Platte River IRP and at
the same time set the next due date to 6/15/2016.
Platte River IRP Timeline
History
5/1/06
11/20/96
7/9/02
11/20/95
IRP Year 
Fall 2006
3/28/97
1997
Energy
Planning and
Management
Program takes
effect
4/06
6/12/02
6/10/2011
2002
2007
Platte River
files 2002
IRP
Platte River files
its inaugural IRP
Platte River’s
inaugural IRP is
approved
7/27/2011
Western
approves
early filing
Western approves IRP,
States that 6/15/97 was
inaugural IRP approval
data
Filing cover letter
does not appear
in Platte River’s
records
Platte River
requests
approval to
submit the 2007
IRP in fall of
2006
2012
Platte River
files 2012
IRP
Western
approves 2012
IRP, states that
it is effective
through
6/15/16
Western IRP Requirements
Req.
Description
Status
1
Identify and compare all practicable energy
efficiency and energy supply resource options
Gen Tech Review—done in 2015
2
Include action plan with timing set by customer
Draft IRP action plan finished
3
Describe efforts to minimize adverse
environmental effects of new resource
acquisitions
Primary driver for analysis is CO2
reduction—should be clear
4
Provide ample opportunity for full public
participation
2014 Outreach and Report
2015 Board Work Session
5
Conduct load forecasting
Annual LF meets this requirement
6
Include brief description of measurement
strategies for options identified in IRP to
determine whether objectives are being met
Annual progress update
Overall IRP Work is 85%+ Done
100%
90%
80%
70%
60%
50%
40%
30%
20%
• Outreach at 4
cities was done
in 2014
• Webinar
conducted
• Summary report
from 2014
outreach is
complete
• 8/19/15 Board
work session
was open to
public
• Need to include
a summary in
the IRP Report
• Report was
written in 2015
• Acts as
culmination of
public
participation
process
• Include as main
feature of IRP
• Acts as filter for
resource
analysis
• Used 23+
scenarios from
8/19/15 Board
work session
• Board has
already
approved
• Revise loss-ofload probability
and other drivers
• Significant effort
was made for a
2015 write-up
• This draft is
being used to
develop 2016
IRP document
10%
0%
Conclude Public
Participation Process
Complete Generation
Technology Review
Finalize Analysis of
Resource Options
Finalize IRP Report
IRP Completion Schedule
Preparation
Analysis Quality Check
•
•
•
•
•
•
•
•
4/7 – Final direction from management
4/8 – Establish overall IRP message
4/13 – Finalize public participation report
4/13 – Finalize generation tech report
4/15 – Revise loss-of-load probability
4/19 – Review load forecast with Finance
4/19 – Review DSM with Customer Services
4/19 – Complete review of 23+ scenarios and
sensitivities
• 4/20 – Review public part with Customer
Services
• 4/20 – Incorporate edits into document
Document Review
Distribution
•
•
•
•
•
•
•
•
• 6/10 – Revisions, printing,
publishing
• 6/15 – Report due to Western
4/15 – Provide draft IRP at UD meeting
4/22 – Platte River management review of 4/20 edits
4/28 – Provide management’s draft at board meeting
5/6 – Edits due from board
5/13 – IRP Presentation to UD Meeting
5/18 – Final edits incorporated by Platte River
5/19 – Provide advance copy to board
5/26 – Board presentation / approval of IRP
Board of Directors Meeting
April 28, 2016
Water Resources Discussion
Board of Directors Meeting
April 28, 2016
Agenda
• Water Discussion – Background
• Platte River Water Portfolio
• Windy Gap Water Background, Uses, and Constraints
• Windy Gap Firming Project
• Project Timeline and Milestones
• Participation
• Considerations
• Water Discussion – Upcoming Policy Decisions
• Next Steps
Water Discussion - Background
Platte River’s Water Portfolio:
• Windy Gap Project
• Poudre River (junior rights)
Windy Gap Background:
• Assigned from municipalities: Fort Collins, Estes Park, Loveland
• 160 Units (out of project total of 480 units)
• Platte River assumed all debt – final payment in 2016
• Entitled up to 1/3 of the project production
• Fully consumable and reusable water
Platte River’s Use of Windy Gap:
• Process Water: 10” line from Horsetooth, direct delivery (600 AF/yr)
• Cooling Water: 24” line from Drake Treatment plant
• Reuse Agreement (4,200 AF contractual obligation)
Water Discussion - Background
Windy Gap Project Constraints:
•
•
•
•
Junior priority – water not available to pump in dry years
No dedicated storage – no place to put water in wet years
Annual firm yield of Windy Gap = 0
Platte River has to look for an alternative water supply in both wet
and dry years – this has occurred in 12 out the past 29 years
Windy Gap Firming Project:
• 90,000 AF reservoir (firm yield of 30,000 AF)
• 13 Participants from the Northern Front Range
• Platte River evaluated several water project options, and the Windy
Gap Firming Project was by far the best option both financially and
operationally to firm the water supply that is critical to electrical
operations
Windy Gap Firming Project Timeline
Windy Gap
Project
Completed
1985
Reclamation
published
purpose/need
report, and
alternatives report
2003
2005
Firming Project
formally entered
the federal
permitting
process
2008
State
approved
mitigation
efforts and
Final EIS
2011
Reclamation
published
Draft EIS
Begin
Construction
Federal Approvals:
Carriage Contract
& ROD
2012
2014
2016
2018
401 State
Certification,
404 Permit,
Begin Design
1041 Permit approved,
and other agreements
for Colorado River
improvements/benefits
2021/2022
Construction
Complete,
Ready to Fill
Windy Gap Firming Participation
Windy Gap Firming Project Participation
Levels
Participant
Broomfield
PRPA
Longmont
Loveland
Greeley
Erie
Little Thompson WD
Superior
Louisville
Lafayette
Evans
Fort Lupton
CWCWD
TOTAL
Units
Owned
56
160
80
40
52
14
12
15
6
1
0
3
1
440
Requested
Storage
Volume (af)
25,200
12,000
12,000
7,000
7,000
6,000
4,850
4,500
2,700
1,800
1,750
1,050
330
86,180
Permitted Design = 90,000 AF
Broomfield
PRPA
Longmont
Loveland
Greeley
Erie
Little Thompson WD
Superior
Louisville
Lafayette
Evans
Fort Lupton
CWCWD
Unsubscribed
Windy Gap Firming Participation
Windy Gap Firming Project Participation
Levels
Participant
Broomfield
PRPA
Longmont
Loveland
Greeley
Erie
Little Thompson WD
Superior
Louisville
Lafayette
Evans
Fort Lupton
CWCWD
TOTAL
Units
Owned
56
160
80
40
52
14
12
15
6
1
0
3
1
440
Requested
Storage
Volume (af)
25,200
12,000
12,000
7,000
7,000
6,000
4,850
4,500
2,700
1,800
1,750
1,050
330
86,180
Permitted Design = 90,000 AF
Broomfield
PRPA
Longmont
Loveland
Greeley
Erie
Little Thompson WD
Superior
Louisville
Lafayette
Evans
Fort Lupton
CWCWD
Unsubscribed
Windy Gap Firming Project
Windy Gap Firming Project Considerations:
• Current subscriptions are about 4,000 AF less than permitted
capacity – goal is to build to 90,000 AF
• Some entities may choose to go up or down in levels
• Platte River is also evaluating its own storage level
• Number of entities seeking additional units for the Firming Project,
however - limited availability of Windy Gap units
• Some need units to firm what they have subscribed
• Some would like to firm additional capacity
• It’s in everybody’s best interest to build to full capacity
• Reduces $/AF for all participants
• Ensures full utilization of a storage project – water storage
project opportunities are limited
• Timing is paramount - participants need to finalize subscriptions by
the end of this year
Water Policy Discussion Points
Working Towards Water Policy Development
• Some concepts are currently clear:
• Maintain adequate water supplies for all existing operations
• Maintain adequate water supplies for all future generation
resources
• Proactively manage water agreements necessary to meet
current and future needs
• Some concepts need board input and direction:
• Windy Gap Firming Project – Platte River final participation
level
• Managing water as an asset – for the benefit of Platte River,
constituent Municipalities, and the region
Water Policy Discussion Points
Board Decisions Needed for Draft Policy:
• Platte River’s Windy Gap Firming Participation Level
• Decision needed in the next few months
• Windy Gap Firming Project Maximization
• Near-term Sale of Windy Gap Units for Firming Project
• Platte River’s Future Water Position
• Disposition of Reserve Windy Gap Units
• Keep, Lease, Sell?
• Pending requests
• Associated risks
Next Steps:
• Review of Platte River’s Windy Gap Firming participation level
Questions?
Board of Directors Meeting
April 28, 2016