AGENDA TITLE:
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Fiscal Year 2025/26 Electric Utility Quarterly Financial Update Report (EU)
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MEETING DATE:
October 7, 2026
PREPARED BY:
Melissa Price, Assistant Electric Utility Director
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recommendation
RECOMMENDED ACTION:
Receive Electric Utility Financial Update Report for the third and fourth quarters of Fiscal Year 2025/26.
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BACKGROUND INFORMATION:
The Fiscal Year 2025/26 Financial Update Report through June 30, 2026 is attached as Exhibit 1. A highlight of activities and progress is outlined below. Overall, LEU maintains a strong financial position, operates within approved budgets and remains well positioned to continue maintenance, operations and capital improvement efforts.
Electric Utility Financial Highlights
REVENUE is stable, ending the Fiscal Year (FY) at 94 percent of budget.
Resulting energy sales revenue totaled 97 percent of budget with energy consumption ending slightly higher (1%) than original estimates. This was primarily due to strong industrial customer demand despite an overall 5 percent decline in consumption due to more mild weather when compared to the prior year.
Other revenue ended at only 58 percent of budget primarily due to a $2.5 million multi-year write off of delinquent accounts approved by City Council. Other unrealized revenue is attributed to timing associated with both Low Carbon Fuel Standard and Cap and Trade revenues scheduled for receipt in FY 27.
EXPENSES ended the year at 91 percent of budget.
Power supply costs ended at 96 percent of budget.
Non-power operating expenses ended the year at 86 percent of budget primarily due to staff vacancies in the Line worker, Metering and Engineering divisions.
Capital outlay expenses ended the year at 55 percent of budget primarily due to:
A delay associated with approval of the 230 kV Project by the California Public Utilities Commission and subsequent deposits placed for long lead time materials. Unspent funds of approximately $1.6M...
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