Georgetown Electric Lost $11.7M net in FY18 Selling Power

There are many $numbers floating around as the city staff tries to minimize the losses in the electric fund. However, from the budget amendment presented at the November 27, 2018 City Council meeting we find that the fund lost $11,657,283 in the net purchased power line. See below.

Thus the electric fund lost more than admitted by the published losses provided by city staff.

Applying the 90 day reserve funds of $5,125,000 to the Net Purchase Power loss results in a loss of $6,532,283. Other losses in the fund account for the difference between the Net Purchase Power losses after using the reserve and the variance to the projected ending balance of $6.84M which is one of the reported loss numbers.

It is observed that a substantial part of the purchased power at fixed costs from EDF Energy and Clearway Energy was sold into the ERCOT market at much below cost, hence the loss.