July (pdf) - New York Power Authority

July 26, 2011
c. Report of the Chief Financial Officer
Ms. Elizabeth McCarthy provided highlights of the financial report to the Trustees. She said that the
Authority’s financial condition remains very strong. For the period ended June 30, 2011, Net Income was $72
million, which is $7.8 million higher than budgeted. To date, O&M expenses were lower than budgeted;
however, it is expected that it will correct itself over time. Other operating expenses were higher than budgeted
due to the unbudgeted voluntary contributions to the state and as a result of the extension of the Power for Jobs
program. For the year 2011, Net Income is estimated to be approximately $200 million. She continued that, at
the end of the reporting period, the Authority had $1.117 billion in cash and liquidity, an increase of $48 million
from the beginning of the year, which has been invested in a variety of instruments with a variety of maturities.
The T&D and Power Supply capital programs are approximately $30 million behind budget while capital
expenditures for Energy Efficiency programs are about $13 million over budget. As of June 30, 2011, the
Authority's debt is $1.87 billion, which is down $55 million from the beginning of the year.
In response to a question from Trustee Nicandri, Ms. McCarthy said that, year- to-date, Net Income is
approximately $8 million over budget and that at the end of the year it is expected to be approximately $20
million over budget. In response to further question from Trustee Nicandri, Ms. McCarthy said that, if needed,
staff will ask for the Board's approval to adjust the O&M budget at the September Trustees’ meeting. Trustee
Dyson added that, as an addition to the remarks by Trustee Nicandri, the Authority needs to maintain its facilities
in top condition and it should not allow artificial ceilings on its budget to delay maintenance of its facilities.
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