July (pdf) - New York Power Authority

CERTAIN FINANCIAL AND OPERATING MATTERS
The Authority’s financial statements are prepared on an accrual basis in accordance with generally
accepted accounting principles. The financial statements for the years ended December 31, 2009 and
December 31, 2010, were audited by KPMG LLP, independent auditors, whose reports dated March 12,
2010 and March 29, 2011, respectively expressed unqualified opinions on those statements. The financial
statements for the year ended December 31, 2008 were audited by other auditors whose report dated February
26, 2009 expressed an unqualified opinion on those statements. Pursuant to continuing disclosure agreements
entered into in connection with certain of the Authority’s outstanding debt, the financial statements for the years
ended December 31, 2008 and December 31, 2009, respectively, were filed with the then existing nationally
recognized municipal securities information repositories. The financial statements for the year ending
December 31, 2010 were provided to the Municipal Securities Rulemaking Board’s Electronic Municipal
Market Access (“EMMA”) system.
Historical Net Income
The net income of the Authority for the three years ended December 31, 2010, derived from the
Statements of Revenues, Expenses and Changes in Net Assets in the financial statements of the Authority for
the years ended December 31, 2010, December 31, 2009 and December 31, 2008, are summarized below:
Summary Statements of Net Income
(In millions)
2010 2009 2008
Operating revenues $2,568 $2,595 $3,185
Operating expenses
Purchased power…………………………………………………… 931 905 1.242
Fuel………………………………………………………………… 224 366 615
Operations and maintenance……………………………………… 443 438 456
Wheeling…………………………………………………………… 528 436 388
Depreciation………………………………………………………... 163 164 173
Total operating expenses…………………………………………… 2,289 2,309 2,874
Operating income 279 286 311
Nonoperating revenues……………………………………………… 138 132 164
Nonoperating expenses………………………………………………. 236 165 176
Net income $181 $253 $299
Management’s Discussion of Financial Results and Operations
For a more complete statement of management’s discussion and analysis, see pages 22-30 of the
Authority’s financial statements for the year ended December 31, 2010.
Financial Results and Operations—2010 vs 2009
Summary
The Authority had net income of $181 million in the year 2010, compared to $253 million in 2009.
This $72 million decrease in net income is primarily due to higher nonoperating expenses ($65 million) as
a result of higher voluntary contributions to New York State. Operating income was slightly lower ($7
million) than the prior year. Lower fuel costs and higher purchased power expenses in 2010 were
substantially attributable to changes in resources utilized to serve the Authority’s Southeast New York
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