Rustic Development Utilities Programs

Presentation Transcript

Rustic Development Utilities Programs KENNETH M. ACKERMAN Assistant Administrator Program Accounting and Regulatory Analysis NARUC Staff Subcommittee on Accounting and Finance Albuquerque, New Mexico April 23, 2007

Topics Electric Program Telecommunications Program Water & Environmental Program Accounting and Depreciation Issues Other Issues

Electric Program

Summary of Historical Electric Programs Loan Budget (Dollars in Million) Loan Program: 2004 2005 2006 Direct 5% 240 119 99 Municipal Rate 1,000 104 100 Direct Treasury Rate 750 1,000 99 FFB Guaranteed 1,900 2,100 2,600 Non-FFB Guaranteed 99 0 100 Section 313A 0 1,000 1,500 Total Loan Program 3,989 4,323 4,498

Summary of Loan Program Electric Programs Budget (Dollars in Million) 2007 2007 Loan 2006 Proposed CR Program: Actual Budget Direct 5% 99 99 42 Municipal Rate 100 39 99 Direct Treasury Rate 99 700 990 FFB Guaranteed 2,600 3,000 2,700 Non-FFB Guaranteed 100 0 Section 313A 1,500 0 500 Total Loan Program 4,498 3,838 4,331 CR = Continuing Resolution

Distribution Loans Approved By State

Distribution Loans Approved Purposes 10,245 Miles of New Distribution Lines 6,300 Miles of Upgraded Distribution Lines 61 Miles of New Transmission Lines 4,034 Miles of Upgraded Transmission Lines $ 600,000 Generation System Improvements $11,000,00 New Generation (7,000 kW) $9,595,000 Service/Warehouse/Headquarters Buildings New or potentially Upgraded Service in 221 Outmigration and 99 Poverty Counties

Generation & Transmission Loans Approved

Generation & Transmission Loans Approved

Generation & Transmission Loans Approved By State

Generation & Transmission Loan Purposes 726 Miles of New Transmission Lines 599 Miles of Upgraded Transmission Lines $754,130,000 Generation System Improvements $824,388,000 For 1,220,000 kW of New Generation $181,418,600 Generation Emission Reduction New and additionally Upgraded Service in 584 Outmigration and 234 Poverty Counties

Jobs Created From Electric Programs Loans

TOTAL COOPERATIVE SALES (TYPE)

NATION'S LANDMASS

NATION'S POPULATION

DISTRIBUTION MILES OF LINE

TRANSMISSION MILES OF LINE

GENERATION

RENEWABLE ENERGY USDA, Rural Development perceives the significance Renewable Energy has to the economies of country America, and additionally the need to guarantee a scope of accessible wellsprings of force. RD extensively characterizes Renewables to include: Wind, Bio-Mass, Solar, Water, and Geothermal vitality sources.

RENEWABLE ENERGY Planning for the transmission is similarly as essential as making arrangements for era

Rural Development Utilities Programs in a joint effort with NRECA "Getting Green Power to Market"

USDA, Rural Development has a few financing choices accessible for financing Renewable Energy ventures. Area 9006 , Renewable Energy and Energy Efficiency Grants and Loan Guarantees.

Renewable Loans – To Date Renewable Loans – To Date Renewable Loans – To Date

RUS BOX SCORE Hardship Loans As of 3/31/2007 FY Authority … $ 99,000,000 Approved (4) … .. $ 40,258,000 Remaining … . $ 58,742,000 Applications Pending (13) $ 104,456,000

RUS BOX SCORE Municipal Rate Loans As of 3/31/2007 FY Authority … $ 100,764,304 Approved (3) … .. $ 27,301,644 Remaining … $ 73,462,660 Applications Pending (10) $ 61,650,000

RUS BOX SCORE Treasury Rate Loans As of 3/31/2007 FY Authority … $ 990,000,000 Approved (21) … .. $ 401,239,000 Remaining … . $ 588,761,000 Applications Pending (0) $ - 0-

RUS BOX SCORE Loan Guarantees As of 3/31/2007 FY Authority … $3,000,000,000 Approved (2) … .... $ 19,238,000 Remaining … . $2,980,762,000 Applications Pending (34) $11,156,907,900

Telecommunications

TELECOMMUNICATIONS Program Budgets Infrastructure Loan Programs: Hardship: $143 million $145 million Cost of Money: $247 million $250 million FFB: $299 million $295 million Program 2007 2008 (proposed )

TELECOMMUNICATIONS Program Budgets Broadband Loan and Grant Program: Program 2007 2008 (proposed) Grants: $ 10 M $ - 0-Loans: $ 998.5 M $300 M

TELECOMMUNICATIONS Program Budgets Distance Learning and Telemedicine Programs: Loans: $128 million $0* Grants: $ 25 million $25 million Program 2007 2008 (proposed) *Unused allocation persists from earlier year

Broadband Loan Program: FY2007 Budget 4% Funding: $0 (little interest for the program) Treasury Rate Funding: $ 998.5 M

Broadband Loan Program: Statistics 198 Applications Received Totaling $4,332,000,000 Applications Processed as of March 31, 2007 68 Approved $1,212,000,000 24 In Review $ 998,000,000 106 Returned $2,141,000,000

Public Television Digital Transition Grants Public Television Digital Transition Grants: $4.95 Million Available These stipends help Public Television Stations serving significant provincial populaces in transitioning to computerized communicate TV transmission, as commanded by the Federal Communications Commission. Give assets might be utilized to secure and introduce offices and programming vital for the move. Concede assets may likewise be utilized for related designing and ecological reviews. NOFA Published April 10, 2007 http://www.usda.gov/rus/telecom/open tv.htm

Distance Learning and Telemedicine Grants Distance Learning and Telemedicine Grants: $24.7 Million Available The DLT Program is outlined particularly to meet the instructive and human services prerequisites of provincial America. The reason for the DLT program is to give monetary help to improve learning and human services open doors for provincial inhabitants. http://www.usda.gov/rus/telecom/dlt/dlt.htm

RTB Dissolution

RTB The Bank finished the principal period of its liquidation as reclamation installments were made to the last two shareholders before the finish of Fiscal Year 2006. Each of the 737 private shareholders of the Bank have gotten their stock reclamation installments, which totaled more than $1.43 billion. The main residual stride to finish up the liquidation of the Bank will be the November 13, 2007 professional rata conveyance of the rest of the $39.7M to the Class An and Class B shareholders at the season of liquidation.

RTB Website For more data, go to the RTB site: http://www.usda.gov/rus/telecom/rtb/index_rtb.htm

Water and Environmental Programs

Water and Environmental Programs ($ Millions) FY 2007 FY 2008 Actual Proposed Direct Loans $ 990.00 $ 1,080.24 Guaranteed Loans $ 75.00 $ 75.00 Grants $ 451.44 $ 346.00 2005 Hurricanes $ 29.90 $ 0 Solid Waste Mgmt Grants $ 3.50 $ 3.50 Individually-owed water well $ 0.99 $ 0 Grants for Water and $ 0.50 $ 0 Wastewater Revolving Total $ 1,551.33 $ 1,504.74

Grants Made FY06

Accounting and Depreciation Issues

Uniform System of Accounts Proposed Rulemaking anticipated that soon would refresh our Electric System of Accounts Will actualize late FERC orders Clarifies RDUP particular direction

Uniform System of Accounts Proposes representing Renewable Energy Credits and looks for contribution from all invested individuals on philosophies.

Depreciation Guidelines Generation Depreciation Policy Use deterioration rates beforehand endorsed by RDUP Administrator unless administrative body having locale requires distinctive rates Do not submit for endorsement to other administrative bodies rates not already affirmed by RDUP

Depreciation Guidelines Generation Depreciation Policy Prescribed rates unless uncommon conditions legitimize unique rates Detailed reviews for exceptional cases and submitted to RDUP for endorsement

Depreciation Guidelines Nuclear Facilities – Policy Proposed composite rate must be submitted