Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water

FY 2009. The commercial paper program will be increased to over $100 million in FY 2011. A description of the assumptions and
major issues in each major expenditure category follows.
. Personnel service expenditures are $0.3 million, or 0.3 percent below the approved FY 2010 budget. This decrease is
attributable to lower vacancy rates as filled positions have increased in recent years. Fringe benefits were adjusted based on
current market rates.
. Contractual service expenditures increase by $O.t million, or 0.1 percent, overthe approved FY 2010 budget due primarily to
funding for various contractual services throughout the organization. Funding was also added to improve water main
infrastructure repair/replacement needs and for professional services to maximize our new business processes, such as
MAXIMO.
. Waterpurchaseexpenditures increase by $0.9 million or3.1 percent overthe approved FY 2010 budget. This directly relates
to operating cost increases for the Washington Aqueduct's budget.
. Chemicals and supplies expenditures increase by $0.0S million, or 1.1 percent, from the approved FY 2010 budget.
. Utilities expenditures decrease by $+.2 million, or 11.2 percent, primarily due to lower anticipated electricity costs. Electricity,
budgeted at $29.3 million, or 11 percent of the revised FY 2010 budget, continues to be the largest portion of the Authority's
utilities budget. Electricity prices have been extremely volatile for the past several years, due to rising oil prices, heavy global
demand for power and oil, and the after effects of Hurricanes Katrina and Rita in FY 2005. We continue to utilize the five-year
electricity contract entered in FY 2005 for electricity generation. ln FY 2009, DC WASA was successful in purchasing its
electricity for an average cost of $95.52 per megawatt hour compared to an estimated average cost of $142.3 per megawatt hour
had DC WASA acquired its electricity through the PEPCO Standard Offer Service (SOS). This represented an estimated savings
of $13.1 million in FY 2009. We continue to mitigate the Authority's exposure from higher energy prices that occur during peak
demand periods by periodically locking in portions of our electricity load, especially for the summer and winter periods. Working
with our electric energy service company, we continue to monitor the electricity market on a continuing basis and explore
alternatives that could yield additional cost savings. ln FY 2011, we will lock the majority of our electricity load; thus reducing
potential budget exposure by $S million.
DC WASA continues its environmental stewardship implementing environmentally responsive and responsible polices and programs.
These actions protect the region's waterways, air, and land. ln FY 2009, DCWASA established a Carbon Footprint Steering
Committee and an Energy Steering Team each led by the Energy Manager. The Carbon Footprint Steering Committee was
established to formulate and provide guidance for the Authority's carbon footprint (greenhouse gases) inventory and reduction
objectives and to serve as a resource in evaluating opportunities and challenges associated with evolving federal and regional
carbon footprint legislation and regulation. At the end of FY 2009, DC WASA has completed its carbon footprint inventory as a part of
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