Financial Report
KANSAS CITY BOARD OF PUBLIC UTILITIES
Kansas City Board of Public Utilities
Kansas City, Kansas
Annual Comprehensive Financial Report
For the Fiscal Years Ended
December 31, 2022 and 2021
2022 Board of Directors
President – Mary L. Gonzales Jeff Bryant
Vice President – Rose Mulvany Henry Robert L. Milan, Sr.
Secretary – Tom Groneman David Haley
General Manager
William A. Johnson
An Enterprise Fund of the:
Unified Government of Wyandotte County, Kansas City, Kansas
Prepared by: Office of Accounting & Office of Corporate Communications
Kansas City Board of Public Utilities
Annual Comprehensive Financial Report
For the Fiscal Years Ended December 31, 2022 and 2021
Table of Contents
Page
INTRODUCTORY SECTION
Letter of Transmittal ........................................................................................................................................... 1
Certificate of Achievement for Excellence in Financial Reporting ..................................................................... 7
President’s Message ............................................................................................................................................ 8
Board of Directors Profiles - 2022 .................................................................................................................... 10
General Manager’s Message ............................................................................................................................. 14
Senior Management Profiles - 2022 .................................................................................................................. 16
Organizational Chart ......................................................................................................................................... 18
FINANCIAL SECTION
Independent Auditor’s Report ........................................................................................................................... 19
Management’s Discussion and Analysis (Unaudited) ....................................................................................... 22
Financial Statements
Statements of Net Position ............................................................................................................... 28
Statements of Revenues, Expenses and
Change in Net Position ............................................................................................................. 30
Statements of Cash Flows ................................................................................................................ 31
Notes to Financial Statements .......................................................................................................... 32
Required Supplementary Information
Schedule 1 – Schedule of Changes in Net Pension Liability and Related Ratios ............................. 72
Schedule 2 – Schedule of Employer 10 Year Contributions ............................................................ 75
Schedule 3 – Schedule of Changes in Total OPEB Liability and Related Ratios ............................. 77
Supplementary Information
Schedule 4 – Combining Statements of Net Position ....................................................................... 79
Schedule 5 – Combining Statements of Revenues, Expenses and
Change in Net Position .......................................................................................... 81
STATISTICAL SECTION (Unaudited)
Table of Contents ............................................................................................................................................ 82
Financial Trends
Net Position by Component .............................................................................................................. 83
Combined Operating Statements ....................................................................................................... 84
Revenue Capacity
Electric Utility Systems Sales ........................................................................................................... 85
Water Sales ....................................................................................................................................... 86
Debt Capacity
Utility System Revenue Bonded Indebtedness .................................................................................. 87
Ratios of Outstanding Debt ............................................................................................................... 88
Debt per Customer ............................................................................................................................ 89
Table of Contents (cont’d)
Page
STATISTICAL SECTION (Unaudited) cont.
Demographic and Economic Information
Electric Load Statistics in Megawatts ................................................................................................ 90
Principal Customers ........................................................................................................................... 91
Employee Data ................................................................................................................................... 92
Demographic and Economic Statistics ............................................................................................... 93
Principal Employers ........................................................................................................................... 94
Operating Information
Electric Rates Schedules .................................................................................................................... 95
Water Rates Schedules ....................................................................................................................... 99
Capital Operating Indicators ............................................................................................................ 100
Staffing by Division ......................................................................................................................... 101
Independent Auditor’s Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards ............................................................................................ 102
INTRODUCTORY
SECTION
1
June 8, 2023
Members of the Board of Directors
Kansas City Board of Public Utilities
The Charter Ordinance of the Unified Government of Wyandotte County/Kansas City, Kansas requires the
Kansas City Board of Public Utilities (BPU) publish within six months of the close of each fiscal year an
Annual Comprehensive Financial Report (ACFR). This report is presented in conformity with Generally
Accepted Accounting Principles (GAAP) and audited by a certified public accounting firm. This report is
published to fulfill that requirement for the fiscal year ended December 31, 2022.
The ACFR consists of management’s representation concerning the finances of the BPU. As a result,
responsibility for this report for the fiscal year ended with respect to both the accuracy of the data and the
completeness and fairness of the presentation, including all disclosures, rests with the BPU. To the best of
our knowledge and belief, the enclosed data is accurate in all material respects and are reported in a manner
designed to present fairly the financial position and results of operations of the BPU. As management, we
assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all
material respects. To enhance the reader’s understanding of theses financial statements, note disclosures
have been included as an integral part of this document.
The BPU’s financial statements have been audited by FORVIS, LLP (FORVIS). The goal of the
independent audit was to provide reasonable assurance that the financial statements of the BPU are free of
material misstatement. The independent audit involved examining, on a test basis, evidence supporting the
amount and disclosures in the financial statements; assessing the accounting principles used and significant
estimates made by management; and evaluating the overall financial statement presentation. FORVIS
concluded, based upon the audit, the financial statements present fairly, in all material respects, the financial
position of the BPU as of December 31, 2022, and the results of BPU’s operations and cash flows for the
year then ended in conformity with GAAP. The independent auditor’s report is presented as the first
component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter
of transmittal is designed to complement MD&A and should be read in conjunction with it. The BPU’s
MD&A can be found immediately following the report of the independent auditors.
Profile
The Utility System is comprised of the electric and water utilities and is, by statute and charter ordinance,
under the operational control and administration of the Board of Directors for the BPU. The Unified
Government of Wyandotte County/KCK, as authorized by state statutes, reserves the right to incur debt on
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behalf of the BPU. However, the statutes vest the BPU with exclusive day-to-day control of the utility
system. The Utility presently serves approximately 65,000 electric customers and 53,000 water customers.
The Electric Utility has two active electric power generating stations, a 17% ownership interest in a
combined cycle power generating station, and seven purchase power agreements to provide the capacity
and energy needed by its retail customers. The active generating stations are the Nearman Creek Power
Station (“Nearman Station”) and the Quindaro Power Station (“Quindaro Station”), and the 17% ownership
interest is in the Dogwood Generating Facility (Dogwood) described herein. Purchased power agreements,
which are also described herein, have been executed and include renewable low impact hydro power from
Bowersock Mills and Power Company, the only hydro project in the State of Kansas as well as wind from
the Cimarron Bend Wind Project, Smoky Hills Wind Farm and Alexander Wind Farm, all in Kansas.
The Nearman Station has two units; the first is a coal-fired steam electric generating station. Commercial
operation of the Nearman coal-fired unit began in 1981. The second unit is a simple cycle combustion
turbine which can be fired on either natural-gas or No. 2 fuel oil. The combustion turbine plant, known as
the Nearman CT4, functions as a peaking plant and was placed in service during February of 2006.
The Quindaro Station currently has two units; all of the units are combustion turbines, which function as
peaking units. The units were placed in commercial operation in 1974 and 1977 respectively and are
designed to burn No. 2 fuel oil. In October, 2019, the Utility made the decision to cease operations of
Quindaro Station Units 1 & 2 as the units are not efficient to operate. The assets were permanently impaired
and recorded as a Regulatory Asset of $73.6 million that will be amortized through 2040.
In December, 2012, the Utility acquired an undivided 17% ownership interest in the assets of Dogwood, a
natural gas-fired combine cycle generating plant. The Utility’s share is approximately 110 MW.
Generation and operating expenses from Dogwood are allocated to the utility based on the 17% interest.
The Utility is also required to provide its share of financing any capital additions.
The Utility generating stations are interconnected by a network of 161 kV and 69 kV transmission lines.
The Utility’s transmission and distribution network includes 61.20 miles of 161 kV line, 60.03 miles of 69
kV line, and over 3,000 miles of overhead line and 313.70 miles of underground cable. The system has 29
electric distribution substations and four industrial substations. The Utility is interconnected with one other
area utility, Evergy Inc.
The Utility System is a member of the Southwest Power Pool (SPP), which is a Regional Transmission
Operator (RTO), located in Little Rock, Arkansas. SPP’s primary purpose is to facilitate the movement of
power throughout the RTO’s footprint through an integrated marketplace. The integrated marketplace is
intended to provide for the reliable movement of power during all times but especially during emergency
events while providing cost savings to those load serving utilities through a more efficient process of
resource dispatch. Many of the efficiencies are driven by SPP becoming the balancing authority for the
region. SPP’s current footprint covers much of the south-central portion of the United States.
The Utility has contracts with the Southwestern Power Administration (SPA) entitling the Utility to
annually purchase 38.6 MW of hydroelectric peaking capacity, and 5 MW of hydroelectric power from the
Western Area Power Administration (WAPA). The Utility also has entered into seven Renewable Energy
Purchase Agreements. BPU’s agreement with TradeWind Energy is to receive 25% of the energy output
of Phase 1 of the Smoky Hills Wind Farm. Phase I of the project has a name plate of approximately 100
MW of wind capacity. The wind farm was built approximately 25 miles west of Salina, Kansas in Lincoln
and Ellsworth Counties in Kansas. In March 2017, also through TradeWind Energy, the BPU began
receiving 200 MW of energy generated by wind turbines from the Cimarron Bend Wind Project. The wind
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farm is located just south of Minneola, Kansas. BPU also has an agreement with Oak Grove Power
Producers to provide 3.5 MW of landfill gas from Arcadia, Kansas. The BPU maintains a contract with the
Bowersock Mills & Power Company (“Bowersock”) to purchase the capacity and energy of an existing
2.15 MW run of the river hydroelectric facility on the Kansas River in Lawrence, Kansas and 4.70 MW of
capacity from an expansion of Bowersock’s existing hydroelectric facilities. BPU also receives 25 MW of
energy generated by wind turbines from OwnEnergy, Inc. The wind farm is located south of Alexander,
Kansas in Rush County in Kansas. Lastly, in November 2016, BPU along with MC Power, a solar
developer, agreed to install a 1 MW alternating current solar photovoltaic facility at the Nearman Creek
Power facility. The project is intended to be a community solar project where customers can license panels
to reduce their monthly electric expenses and support greener initiatives.
The Water Utility serves approximately 53,000 water customers in the service area of approximately 152
square miles. This service area includes Kansas City, Kansas, Edwardsville, southern Leavenworth County,
parts of Bonner Springs and a small section of northern Johnson County. BPU’s current average day is 30
million gallons of water a day (MGD) with the maximum day average over the last 5 years of 40 MGD.
The historical max day is 49 MGD. The water utility utilizes the state-of-the-art Nearman Water Treatment
Plant (NWTP) and has the capacity to pump 72 MGD, including one water treatment facility; three major
pump stations; 1,000 miles of water pipes and two of the nation’s largest horizontal collector wells.
The Water distribution system consists of a network of underground mains, reservoirs, and a series of
booster district systems. The water transmission network consists of 72.5 miles of primary and trunk lines
ranging in size from 24 to 48 inches. From these mains, water is delivered through a system of 900 miles
of secondary water mains. The Utility has approximately 32.5 million gallons of water stored in reservoirs
and elevated tanks at various locations in the distribution system. There are three booster-pumping stations,
which increase water pressure to higher elevations and through the 1,000 miles of water pipes.
The Utility’s annual budget represents the plan for providing electric and water services for each fiscal year.
An annual budget consisting of operating and maintenance expenses as well as a five-year capital plan is
submitted by the General Manager and Executive Directors to the Board of Directors. The Board of
Directors adopts the budget no later than December of each year. Budgetary control is maintained at the
departmental level by comparing budgeted expenses with actual expenses on a periodic and year-to-date
basis.
Economic Conditions
The Unified Government is the government for both Wyandotte County and the City of Kansas City, KS.
Wyandotte County accounts for a large number of manufacturing, transportation and distribution, including
rail, and health care jobs in the metropolitan area. Many of these jobs are high paying and contribute to the
positive statistics regarding gross payroll and gross sales. Development remains an important priority for
the Unified Government.
The County of Wyandotte County covers 155.7 square miles. It is located on the eastern border of the State
and along with three other Kansas counties and eight Missouri counties, comprise the Kansas City
Metropolitan Statistical Area with a population of approximately 2 million.
According to the U.S. Census Bureau, Wyandotte County’s estimated population was 169,245 in 2021.
Compared to population trends in the prior decades, the current estimates indicate a more stable population.
The median age is 34 versus a national average of 38 years. Approximately, 39% of the population is
greater than 50 years old.
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In recent years, efforts have been directed toward the development of a 1,600-acre tract of land located
directly northwest of the intersection of Interstate Highways I-70 and I-435. The Unified Government
attracted the Kansas Speedway as the economic catalyst for development of this tract using the STAR Bond
financing incentive. The speedway project, totaling more than $280 million, is a 1.5-mile tri-oval on
approximately 1,100 acres of land, with 72 luxury hospitality suites and grandstand seating for 82,000.
Joining Kansas Speedway at Village West are major destination retailers and entertainment businesses that
attract approximately 12 million visitors and shoppers annually. The initial anchor businesses and
attractions include: Cabela’s, Nebraska Furniture Mart, Great Wolf Lodge and Resort, Hollywood Casino,
Children’s Mercy Park, home of the Kansas City MLS soccer team Sporting KC Soccer Club and Field of
Legends Field (formerly CommunityAmerica Ballpark), home of the American Association’s Kansas City
Monarchs Baseball Club. An additional development north of I-70 and east of I-435, just east of the Village
West area include the headquarters for the Dairy Farmers of America which is the area’s largest private
employer in terms of revenue. In 2018, the U.S. Soccer National Training and Coaching Development
Center, named Compass Minerals, opened which will house the elite athlete training and performance
analytics campus and national youth soccer development programs. In 2020, a multi-sport athletic complex
known as Homefield, Homefield Outdoor and Homefield Youth Baseball Complex is being developed
within Village East.
Industrial growth has resulted from the General Motors $600 million investment in its Kansas City plant.
The redevelopment of two adjacent industrial parks has occurred in this area as well. This building is
occupied by Inergy and is a supplier to the General Motors automotive plant. In 2018, General Motors
announced a $265 million investment to support production of the new Cadillac XT4 Crossover SUV.
General Motors also produces the Chevy Malibu. Additional industrial development was the construction
of the Amazon Fulfillment Center. The facility is on 134 acres and approximately 4,000 employees
currently work at the fulfillment center. An additional Amazon fulfillment center was completed in 2021.
This is a 1.08 million square-foot logistics facility with approximately 1,000 employees.
In 2020, the Kansas City Kansas region was selected by Urban Outfitters to build an 880,000 square foot
distribution and fulfillment center. The facility will be located near the Kansas Speedway and will be a
$403 million capital investment with up to 2,000 jobs. Operations began in 2022 with estimated completion
of 4
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quarter 2023. Additionally, in 2018, the Unified Government was awarded $13.8 million to replace
the existing I-70 and Turner Diagonal interchange. This allowed for the development of the $155 million
Turner Logistics Industrial Park on a site adjacent to I-70. The site will include 2.7 million square feet of
distribution/warehouse space and will create 1,800 jobs. As of December 2022, there has been five
buildings completed.
Adjacent to Kansas University Medical Center is are the Hudson Apartments, which is the demolition and
construction of a new $48 million, 5-story multifamily housing complex. It will consist of 228 1–2-bedroom
units and studios with amenities. This will provide much needed housing space in this area. Completion
date is expected to be Fall 2024.
Long Term Financial Planning
BPU’s goals for the future include meeting the needs of the community as development continues within
the county. BPU utilizes a five-year capital improvement program to prioritize projects, which will be
scheduled over a number of years as financial resources are available. The electric capital improvement
plan identifies approximately $180 million in generation, transmission, and distribution projects. The
electric capital plan is projected to be 50% bond financed over the years. The water capital improvement
plan identifies approximately $118 million in projects, of which 60% are projected to be financed.
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Cash Management and Investment Policy
The Utility’s cash management practice encourages investment of all cash not needed for immediate
expenditures. It is the policy of the Utility to invest public funds in a manner that provides the highest
investment return with the maximum security while complying with all Kansas statutes governing the
investment of public funds. The Utility’s investment policy was adopted by the Board of Directors.
Internal Control
Management of the Board of Public Utilities (BPU) is responsible for establishing and maintaining internal
controls to ensure that assets of the BPU are protected from loss, theft, or misuse, and to ensure that adequate
accounting data are compiled to allow for the preparation of financial statements in conformity with
accounting principles generally accepted in the United States. The internal controls are designed to provide
reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance
recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the
evaluation of costs and benefits requires estimates and judgements by Management.
Major Initiatives
The Board of Public Utilities is currently investing in significant capital improvements to update and
improve service to our customers. Projects underway include electric substation, transmission and
distribution improvements in the Rosedale, Armourdale, and Piper areas as well as replacing a 7MG Water
Reservoir in Argentine and the upgrading of the water distribution valves and mains throughout the
community.
The electric utility has completed the construction of the new Rosedale substation and has decommissioned
the Fisher substation. The new substation will support the expansion of the University of Kansas Medical
Center which constructed a $75 million medical education building as well as a $280 million patient tower
which will be a seven-story facility. Work continues throughout 2023 to build out and enhance the
distribution facilities in this area. With the Urban Outfitters development, the electric utility will be
providing the distribution facilities to support the new growth in that area over the next several years.
The water utility has increased efforts to replace aging infrastructure in the water distribution system over
the next several years. The water utility plans to replace approximately 3-5 miles of water mains each year.
The utility received a federal grant of $10 million to help in replacing water mains within the distribution
system. In addition, a 7-million-gallon reservoir will be designed and constructed over the next two years
within the Argentine water system. The new reservoir will provide more water storage for the area and give
an emergency backup to the Fairfax Industrial area in the Northeast section of our service territory.
GFOA Certificate of Achievement Award
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Kansas City Board of Public
Utilities for its annual comprehensive financial report for the year ended December 31, 2021. This was the
forty-first consecutive year that the BPU achieved this prestigious award. In order to be awarded a
Certificate of Achievement, BPU must publish an easily readable and efficiently organized annual
comprehensive financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
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A Certificate of Achievement is valid for a period of one year only. We believe this 2022 annual
comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements
and we are submitting it to the GFOA to determine its eligibility for a certificate for the forty-second
consecutive year.
Acknowledgements
In closing, I would like to thank the Accounting staff for their efforts in preparing and providing the
financial information. Special thanks to David Mehlhaff, Chief Communications Officer, in coordinating
the comments for the President’s and General Manager’s messages.
Respectfully submitted,
Lori C. Austin
Chief Financial Officer/Chief Administrative Officer
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Kansas City Board of Public Utilities
Kansas
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2021
Executive Director/CEO
8
PRESIDENT’S MESSAGE
The Kansas City Board of Public Utilities (BPU) has been providing electric and water services to Wyandotte County
for more than 100 years. As a non-profit organization, its mission remains the same as it has always been – to provide
quality dependable utility services to the community at the lowest possible price.
Despite challenges, BPU and the community made significant accomplishments in 2022. The Board of Directors,
management, and BPU staff worked hard to help customers and the community better manage issues like rising
inflation and the lingering impacts of COVID, while remaining focused on ensuring reliable, quality electric and
water service – not only today, but in the future as well.
Specific 2022 accomplishments included:
Customer Service Convenience Improvements – Providing more convenience and accessibility options, and
expanded communications tools. This included promotions and resources for several unique programs
including a new Service Outage and Customer Billing Alert text capability, the Energy Engage Portal, an
online Self-Service tool, a mobile-friendly Electric Outage Reporting Map, an Equal Pay Plan alternative,
and additional bill payment kiosk locations bringing added payment options to local neighborhoods.
Renewable Energy Leader – BPU remained a leader in renewable energy, with more than 48% of its
generation today coming from wind, hydropower, and landfill gas. One of the “greenest” public utilities in
the nation, our diverse generation mix allows the utility to be less reliant on only coal and gas which
experiences price fluctuations, with the community, the environment, and public health also benefiting from
this “clean power” approach. Promotion of its Community Solar Farm, the first in the state, continued to
both residential and commercial customers. In total, BPU has the capacity to power 135,000 local homes
from its carbon-free renewable energy portfolio.
Energy Efficiency and Conversation – Continued promoting energy and water efficiency and savings
initiatives through customer education and outreach.
Transparency and Communications – Continued working on initiatives to make information more readily
accessible, while ensuring the use of industry best practices in achieving this. To ensure public input, the
utility continued making all board meetings accessible online and virtually via Zoom, and utilized social
media, direct mailings, and earned media placements as a tool for continued engagement with customers and
the community.
Continuing to champion strategic alliances and support expansion opportunities that benefit the utility as
well as the community. Supporting economic development, business retention and growth in the service area
with other community partners.
A continued focus on employee training and development, and improved utility recruiting efforts to improve
employee qualifications and performance.
9
BPU provided and contributed far more than just electricity and water service to the community in 2022. The Board
of Directors, as well BPU employees who all live and work in Wyandotte County, understand that the utility’s
mission is to ensure reliable and affordable electric and water service, while working hard to improve the quality of
life for our entire community.
Mary L. Gonzales
Board President
June 8, 2023
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Board of Directors – 2022
The Board of Directors is composed of six members, three of whom are elected at large and three of whom are
elected by district. Every two years three members are elected for four-year terms. The Board chooses a president,
vice president, and secretary from its own membership. The Board meets twice a month, on the first and third
Wednesdays. Members receive a monthly salary of $950. The treasurer of the Unified Government of Wyandotte
County/Kansas City, Kansas is the ex-officio treasurer of the Board. The Board is charged with the duty to hire a
General Manager, who serves as BPU’s chief executive officer, and who administers the day-to-day operations of
the utility.
Mary L. Gonzales
President
Member at Large
Elected 2001-2005
Re-elected 2005-2009
Re-elected 2009-2013
Re-elected 2013-2017
Re-elected 2017-2021
Re-elected 2021-2025
Ms. Gonzales retired from teaching school in 2006 after a 33-year career. For many of those years she was an
eighth-grade language arts teacher at Piper Middle School. Ms. Gonzales has a Bachelor of Arts degree in
Education from the University of Montevallo in Montevallo, Alabama, and a Master’s degree in Curriculum
and Instruction from Emporia State University. She is currently the BPU’s Board President and has previously
served as Board President from 2005 to 2007 and previously as vice president and secretary of the BPU Board.
Besides her BPU Board and other community activities, she is a member of the American Public Power
Association and the American Water Works Association. A graduate of Leadership 2000, she serves on the
board for the Rosedale Development Association and also on the advisory board for the Civic Leadership
Academy for Olathe, Kansas schools. Mary was also District 5 Coordinator in the successful effort to
consolidate the Wyandotte County/City governments and served on the advisory board of the Wyandotte
County Library. In addition, she is past President of Delta Kappa Gamma International Educational Society
and is a former board member for both El Centro and City Vision Ministries.
Rose Mulvany Henry
Vice President
Member at Large
Elected 2019-2023
Ms. Mulvany Henry is a native of Kansas City, Kansas, where she attended Bishop Ward High School. She
furthered her education and received her B.A. in English from the University of Kansas (1990), and her J.D.
from Washburn University School of Law (1993). Rose is currently admitted to practice in Kansas. Rose is
currently the Vice President of Regulatory & Legislative Affairs for Metronet, the largest privately held fiber-
11
Board of Directors – 2022 – (continued)
to-the-premise company in the United States. Prior to joining Metronet in 2021, Rose has over 30 years of utility
industry experience representing many companies in the technology and communication industries and then with
her own private practice in Kansas City, Kansas. Rose is currently the BPU’s Board Vice President.
Tom Groneman
Secretary
Member,
Second
District
Elected 2013-2017
Re-Elected 2017-2021
Re-Elected 2021-2025
Mr. Groneman is a lifelong Wyandotte County resident, graduating from Wyandotte High School in 1965.
He has served as BPU’s Board President from 2016 to 2017. In 1969 he graduated from Bethany College,
Lindsborg, KS with a Bachelor’s degree in Business/Economics.
Following college, he entered the United States Navy and was trained as a Vietnamese linguist. He was
stationed for 15 months at the Naval Communications Station, Philippines where he was assigned to
temporary active duty with the Commander of Carrier Division 5/Task Force 77 aboard the USS Enterprise,
USS Kitty Hawk and USS Constellation. He finished his tour at the National Security Agency, Ft. Meade,
MD.
After the military he returned to Wyandotte County and worked briefly as a probation officer for the 29
th
Judicial District. In 1975 he was appointed Register of Deeds to fill out the unexpired term of Jack Reardon
who had been elected mayor. He was subsequently elected to seven consecutive four-year terms as Register
of Deeds. In 2003, Mr. Groneman joined the staff of Governor Kathleen Sebelius to become the Director of
Alcoholic Beverage Control for the State of Kansas. He commuted for nearly eight years between Kansas
City and Topeka until the change in administrations in 2011.
During his public service, Tom has served in numerous positions on various state and national organizations.
Jeff Bryant
Member, Third
District
Elected 2011-2015
Re-elected 2015-2019
Re-elected 2019-2023
Mr. Bryant is the Lead Estimator/Job Cost Analyst for Plastic Packaging Technologies in Kansas City,
Kansas. He has been with the company for over 40 years serving in a variety of roles.
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Board of Directors – 2022 – (continued)
He is a past member of the Armourdale Renewal Association, the Turner Lions Club and the Kansas City
Chapter of the NAACP. He served a two-year term on the Schlagle Sit Council, which is committed to
increasing the graduation rate of local students. He has served on the Unified Government’s (UG) Finance
Standing Committee and previously served on the Public Works and Safety Committee. He is Leadership
2000 Class XX graduate and has served on the Board of Directors of Leadership 2000. Mr. Bryant is a graduate
of Turner High School and attended Donnelly College.
Jeff has also served as BPU’s Board President in 2017 and previously as Vice President and Secretary of the
BPU Board.
Robert L. Milan, Sr.
President
Member, First District
Elected 1991-1995
Re-elected 1995-1999 Re-elected 2011-2015
Re-elected 1999-2003 Re-elected 2015-2019
Re-elected 2003-2007 Re-elected 2019-2023
Re-elected 2007-2011
Mr. Milan has served on the BPU Board for over 30 years, having been first elected in 1991. He has served as
President five times previously. In 2007, BPU recognized Mr. Milan’s dedication to the utility by naming a
new Water Division facility in his honor, the Robert L. Milan, Sr. Pump Station and Reservoir.
Mr. Milan worked at the U.S. Department of Labor for 32 years, retiring as a Federal Representative. He is
active in the Northeast Optimist Club and NAACP. In 2001 he served as State President of AARP. In 2010,
the Directors of the Heritage Registry of Who’s Who announced the inclusion of Mr. Milan. He has received
many awards including being selected by the Kansas City Globe as one of the 100 most influential people in
1998.
A native of Kansas City, Kansas, he owned Milan's Roller Arena and Bowling establishment for many years.
Mr. Milan is a Sumner High School graduate and attended Kansas City Kansas Community College, the
University of Kansas extension, Donnelly College, the Univ of Colorado, Temple Univ. and Pioneer College.
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Board of Directors – 2022 – (continued)
David B. Haley
Member at Large
Elected 2021-2025
Mr. Haley has served the community in several capacities having been first elected to the Kansas House of
Representatives beginning in 1994 and then the Kansas Senate since 2000 where he was re-elected to a 6
th
term
in the Kansas Senate in 2020.
He serves as the Ranking Minority member of the Senate Judiciary Committee and also served on the Senate’s
Ethics; Elections & Local Government; public Health & Welfare; Federal & State Affairs; Assessment &
Taxation and Redistricting Committees among other leadership positions.
Mr. Haley graduated from Morehouse College (Atlanta, GA) and Howard University Law School (Washington,
D.C.). He is a public affairs counselor and real estate developer and an active member of the National Black
Caucus of State Legislators.
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GENERAL MANAGER’S MESSAGE
As a non-profit municipal utility, BPU maintains customer-focused principles including Accountability,
Appreciation, Customer Focus, Innovation, Integrity, Respect and Transparent Communication. The utility has
provided quality dependable utility service to the community and residents of Wyandotte County since 1909. Today
BPU services nearly 65,000 commercial, industrial, and residential customers over a 150 sq. mile area. BPU’s
primary goal remains providing quality dependable services to ratepayers at the lowest possible price.
BPU continually looked for ways to meet the needs of all its customers, from individual residents to the largest
businesses, and became a more adaptive, efficient, and focused organization as a result in 2022. Throughout the year,
BPU managed existing and introduced several new programs and initiatives to better service utility customers, and
the community, while maintaining a stable financial position and remaining prepared to meet future electric and
water requirements for the entire community. These included, among other things:
Providing cost effective, safe, and reliable utility services, including efficient operation of electric and water
production facilities.
Payment Assistance Programs – BPU maintained several programs administered by the United Way,
including the Utility Assistance Program which disbursed funds to eight local non-profit agencies, and the
Customer Hardship Payment Service program, which helped offset utility expenses related to changes in
employment, income status, health emergencies, etc.
A Stable Financial Position – In addition to meeting the needs of the community, BPU has been able to do
so while reducing its annual budget and spending over the last five years. From $495 million in 2016 to
$350.6 million in 2022, BPU has cut its annual budget by more than 30% in recent years.
Ensuring continued fiscal sustainability by effectively managing debt service coverage, cash-on-hand,
and credit ratings through open and transparent fiscal and budget policies. In achieving this, BPU was
recognized with the Certificate of Achievement for Excellence in Financial Reporting Award by the
Government Finance Officers Association (GFOA) in 2022. The utility was also assigned a
profile/rating of ‘A’ and ‘Stable Outlook’ by national rating service companies Fitch Ratings and S&P
Global Ratings.
Working to ensure that electric transmission and distribution systems continued operating in a safe and
reliable manner.
Identifying and encouraging usage of innovative technologies, implementation of utility wide reliability
standards, and the development of a safety-conscious workplace.
Continuing to focus on corporate reporting programs including data analytics and operational performance
metrics. Ensure utility compares favorably with other peer municipal utilities within the region.
On-going evaluation and improvements to maintain and upgrade BPU’s aging utility system and
infrastructure, while maintaining and exceeding all environmental regulations.
BPU was named a 2022 Silver Stevie Award recipient by the American Business Awards (ABA) for its
community response to the pandemic, received the 2022 Sue Kelly Community Service Award from the
American Public Power Association (APPA), and was named the PR News 2022 Nonprofit Awards
winner in the Social Responsibility category for its efforts to assist the community and customers
impacted by COVID. This included the 2022 Annual BPU Charity Golf Tournament which raised over
15
$49,000 for children’s charities, the BPU Summer Youth Program which helps provide mentoring and
jobs for local youth, and the BPU Employee Foundation that gathers donations and volunteers
throughout the community, among other things.
BPU and its employees continued working to provide reliable, safe, and affordable utility services to the community
in 2022 despite various challenges, simultaneously refining some operational and customer-oriented strategies as
necessary.
Moving forward, BPU will continue working to: 1) ensure production and delivery systems meet demand; 2)
champion renewable energy; 3) offer residential customers flexible and easy payment options; 4) utilize new
technology to improve customer service; 5) promote energy and water efficiency; 6) ensure compliance with federal
and state rules and regulations; and 7) ensure fiscal sustainability by managing debt, cash-on-hand, and credit ratings
through open and transparent fiscal and budget policies.
BPU and its employees remain committed to improving the overall quality of life in the community it service, just
as it has for more than a century.
Respectfully,
William A. Johnson
General Manager
June 8, 2023
16
Senior Management – 2022
William A. Johnson
General Manager
William A. (Bill) Johnson has worked at the
Kansas City Board of Public Utilities for more
than forty (42) years. Mr. Johnson earned an
MBA from Ottawa University in 2007.
He began his career at BPU in an entry-level
position and worked his way up through the
ranks into an executive level position prior to
being appointed General Manager. His
previous position included directing BPU
Electric Operation & Technology division
activities; including but not limited to, Electric
Transmission and Distribution, Electric
Engineering, Information and Technology,
Telecommunications, and Fleet Maintenance.
Over his career, he has sponsored many large
utility projects including modernizing BPU’s
electric infrastructure and he has played a key
role in introducing some of the utility’s most
advanced enterprise technology systems
designed to improve utility operations.
Jeremy Ash
Chief Operating Officer
Lori C. Austin
Chief Financial Officer/Chief
Administrative Officer
Steve Green
Executive Director
Water Operations
Johnetta M. Hinson
Executive Director
Customer Services
Darrin McNew
Acting Executive Director
Electric Operations
He is past President of Kansas Municipal
Utilities, a current board member for the
Kansas City Kansas United Way, and past
board member of the Boys & Girls Club. He
is a member of the American Public Power
Association (APPA) and the Rocky Mountain
Electric League (RMEL). He is also past
President of the Kansas-Missouri chapter of
the American Association of Blacks in
Energy. He received the distinguished “Black
Achievers Award” from the Southern
Christian Leadership Council and the “Black
Man of Distinction Award” from the Friends
of Yates.
David E. Mehlhaff
Chief Communications
Officer
Maurice Moss
Executive Director
Corporate Compliance
Jerin Purtee
Executive Director
Electric Supply
Dong T. Quach
Executive Director
Electric Production
Jerold T. Sullivan
Chief Information
Officer
17
Executive Staff and Department Heads
2022
Becky Aldinger, Director
Purchasing & Supply Chain
Glen Brendel, Director
Electric Production Operations/Maintenance
Andrew Coffelt,
NERC Compliance Officer
Dennis Dumovich, Director
Human Resources
Michael Fergus, Director
Electric Distribution & Service
Andrew Ferris, Director
Financial Planning
Jody Franchett, Director
Administrative Services
Brian D. Laverack, Director
Network Operations
Dustin Miller, Director
Applications Information Technology
Patrick J. Morrill, Director
Electrical Engineering
Tung Nguyen, Director
Electric Production Engineer
Steve Nirschl, Director
Water Processing
Randy J. Otting, Director
Accounting
Scott Paramore, Acting Director
Electric Substations Eng & Ops
Clifford Robinett, Acting Director
Water Distribution
Ingrid Setzler, Director
Environmental Services
Chris D. Stewart, Director
Civil Engineering
Patrice Townsend, Director
Utility Services
18
KansasCityBoardofPublicUtilities
2022OrganizationalChart
Accounting
Civil Engineering
Cash Operations and Collections
Corporate Compliance
Customer Service
Electric Metering & Services
Electric Production Engineering
Electric Production Maintenance
Electric Production Operations
Electric Supply Planning
Electric System Control
Electric Transmission & Dist
Electrical Engineering
Employee Relations
Employment
Environmental Services
Grounds Maintenance
Information Technology
Network Support
OH / UG Lines
Production Support Services
Purchasing
Radio / Telecom & Cable
Stores
Street Lights
Substations
Traffic Signal
Transportation
Utility Services
Water Metering & Services
Water Distribution
Water Processing
Water System Support
FINANCIAL
SECTION
Independent Auditor’s Report
The Board of Directors
Board of Public Utilities
Kansas City, Kansas
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Board of Public Utilities of Kansas City, Kansas (the
BPU), an enterprise fund of
the Unified Government of Wyandotte County/Kansas City, Kansas, as of and
for the years ended December 31, 2022 and 2021, and the related notes to the financial statements,
which collectively comprise the BPU’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the financial position of the BPU as of December 31, 2022 and 2021, and the changes in
financial position and its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States
of America (GAAS); the Kansas Municipal Audit and Accounting Guide (the Guide); and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States (Government Auditing Standards). Our responsibilities under those
standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements”
section of our report. We are required to be independent of the BPU, and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Emphasis of Matters
As discussed in Note 1 to the financial statements, the financial statements present only the BPU and do
not purport to, and do not, present the financial position of the Unified Government of Wyandotte County,
Kansas City, Kansas as of December 31, 2022 and 2021, the changes in its financial position, or, where
applicable, its cash flows thereof for the years then ended in conformity with accounting principles
generally accepted in the United States of America.
As discussed in Note 1 to the financial statements, on January 1, 2021, the BPU adopted Governmental
Accounting Standards Board Statement No. 87, Leases.
Our opinion is not modified with respect to these matters.
The Board of Directors
Board of Public Utilities
Page 2
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the BPU’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audits, significant audit findings, and certain internal control-related
matters that we identified during the audits.
The Board of Directors
Board of Public Utilities
Page 3
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, pension and other postemployment information as listed in the table of contents
be presented to supplement the basic financial statements. Such information is the responsibility of
management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with GAAS, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audits were conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the BPU’s basic financial statements. The Combining Statements as listed in the
table of contents are presented for purposes of additional analysis and are not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audits of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with GAAS. In our opinion, the information is fairly stated, in all material respects, in relation
to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial
report. The other information comprises the Introductory and Statistical sections but does not include the
basic financial statements and our auditor’s report thereon. Our opinion on the basic financial statements
does not cover the other information, and we do not express an opinion or any form of assurance
thereon.
In connection with our audits of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
The Board of Directors
Board of Public Utilities
Page 4
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 8, 2023,
on our consideration of the BPU’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements, and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the BPU’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the
BPU’s internal control over financial reporting and compliance.
Kansas City, Missouri
June 8, 2023
This page has been left intentionally blank.
Board of Public Utilities
Management’s Discussion and Analysis
December 31, 2022 and 2021
(Unaudited)
22
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Board of Public Utilities of
Kansas City, Kansas’s (BPU) financial statements. The BPU’s financial statements comprise two
components: 1) financial statements and 2) notes to the financial statements. Other required
supplementary information is provided in addition to the financial statements.
Financial Statements
The financial statements are designed to provide readers with a broad overview of the BPU’s finances in a
manner similar to a private-sector business.
The statement of net position presents information on BPU’s assets, deferred outflows of resources,
liabilities and deferred inflows of resources, with the difference between these reported as net position.
Over time, increases/decreases in net position may serve as a useful indicator of whether the financial
position of the BPU is improving/deteriorating.
The statement of revenues, expenses and changes in net position presents information showing how
BPU’s net position changed during the most recent fiscal year. All changes in net position are reported as
the underlying event giving rise to the change occurs, regardless of the timing of the cash flows. Thus,
revenues and expenses reported in this statement for some items will only result in cash flows in future
fiscal periods (for example, uncollected payments-in-lieu of taxes and earned but unused vacation leave).
Notes to the Financial Statements
The notes provide additional information essential to a full understanding of the data provided in the
financial statements.
Other Information
In addition to the financial statements and accompanying notes, this report also presents certain required
supplementary information concerning the BPU’s progress in funding its obligation to provide pension
and postretirement benefits to its employees.
The combining statements for the BPU’s electric and water utilities are presented immediately following
the required supplemental information.
The BPU is an administrative agency of the Unified Government of Wyandotte County/Kansas City,
Kansas (Unified Government).
The electric and water departments are reflected as an enterprise fund on the Unified Government’s
financial statements consisting of the statement of net position; statement of revenues, expenses and
changes in net position; and statement of cash flows. This management’s discussion and analysis of the
BPU’s financial report presents the discussion and analysis of the BPU’s financial performance for the
years ended December 31, 2022 and 2021 with selected comparative information of the year ended
December 31, 2020. This analysis should be read in conjunction with the financial statements and notes
thereto.
Board of Public Utilities
Management’s Discussion and Analysis
December 31, 2022 and 2021
(Unaudited)
23
The following tables summarize the financial condition and operations of the BPU as of December 31,
2022, 2021 and 2020 and for each of the years then ended (the financial information for 2020 has not
been adjusted for the impacts of the BPU’s implementation of GASB 87 during 2021):
Statements of Net Position Summary
2022
2021
(As Restated)
2020
Assets and deferred outflows of resources:
Current assets $ 169,411,971 $ 143,143,157 $ 145,468,946
Capital assets, net 1,076,701,899 1,072,433,104 1,069,848,798
Other noncurrent assets 102,532,815 91,687,867 90,560,353
Total assets 1,348,646,685 1,307,264,128 1,305,878,097
Deferred outflows of resources 45,488,357 65,686,229 32,555,985
Total assets and deferred outflows
of resources $ 1,394,135,042 $ 1,372,950,357 $ 1,338,434,082
Liabilities, deferred inflows of resources, and
net position:
Current liabilities $ 93,845,110 $ 85,836,241 $ 84,780,351
Noncurrent liabilities 649,039,876 678,989,714 717,779,584
Total liabilities 742,884,986 764,825,955 802,559,935
Deferred inflows of resources 82,980,183 89,204,318 51,799,811
Net position:
Net investment in capital assets 451,012,342 427,959,301 397,769,293
Restricted 45,992,834 22,594,388 29,543,724
Unrestricted 71,264,697 68,366,395 56,761,319
Total net position 568,269,873 518,920,084 484,074,336
Total liabilities, defe rred inflows of
resources and net position $ 1,394,135,042 $ 1,372,950,357 $ 1,338,434,082
Board of Public Utilities
Management’s Discussion and Analysis
December 31, 2022 and 2021
(Unaudited)
24
Statements of Revenues, Expenses and Changes in Net Position Summary
Operating revenues:
2022
2021
(As Re stated)
2020
Residential $ 110,391,146 $ 98,837,029 $ 99,892,366
Commercial 126,967,366 104,869,840 107,334,998
Industrial 57,733,185 45,213,319 52,532,941
Other 40,445,684 66,416,518 25,444,106
Energy rate component recovery 12,468,276 2,312,998 —
Payment-in-lieu of taxes 37,073,894 31,715,220 32,687,316
Total operating revenues 385,079,551 349,364,924 317,891,727
Operating expenses:
Fuel 55,754,914 47,845,256 28,727,073
Purchased power 67,452,166 58,012,729 57,067,042
Production 42,442,507 39,990,738 43,602,858
Transmission and distribution 46,245,007 46,294,841 45,129,256
General and administrative 26,629,022 29,722,913 31,199,101
Depreciation and amortization 41,253,137 39,056,593 37,473,398
Total operating expenses 279,776,753 260,923,070 243,198,728
Operating income 105,302,798 88,441,854 74,692,999
Nonoperating income (expense):
Interest expense (22,029,289) (23,513,227) (27,887,268)
Payment-in-lieu of taxes (37,073,894) (31,715,220) (32,687,316)
Other 1,787,862 679,899 108,300
Total nonoperating expense, net (57,315,321) (54,548,548) (60,466,284)
Contributions and transfers:
Contributions from developers and others 1,362,312 952,442 1,075,471
Change in net position 49,349,789 34,845,748 15,302,186
Net position, beginning of year 518,920,084 484,074,336 468,772,150
Net position, end of year $ 568,269,873 $ 518,920,084 $ 484,074,336
Total revenue $ 388,229,725 $ 350,997,265 $ 319,075,498
Total expense 338,879,936 316,151,517 303,773,312
Financial Highlights
2022 Compared to 2021
Net capital assets increased by $4.3 million in 2022. The increase is attributed to additions
associated with electric and water transmission and distribution assets, as well as additions to
general plant assets.
Debt service coverage ratio for 2022 increased to 2.83 times in comparison with 2.45 for the year
ended 2021.
Deferred outflows of resources decreased by $20.2 million due to pension recognition.
Net position increased by $49.3 million during 2022.
Board of Public Utilities
Management’s Discussion and Analysis
December 31, 2022 and 2021
(Unaudited)
25
In 2022, the BPU’s operating revenues were approximately $385.1 million, with the Electric Utility
recognizing revenues of $332.3 million and the Water Utility recognizing revenues of $52.8 million. The
average number of customer accounts remained stable from the prior year.
The BPU’s total operating revenue increased by approximately $35.7 million to $385.1 million in 2022.
The Electric Utility experienced increased electric sales of $33.8 million compared to 2021. Residential,
Commercial, and Industrial were more than prior year.
The Water Utility experienced an increase of $1.9 million in water sales compared to 2021. In
comparison to the 2022 budgeted revenue, overall, the BPU collected 110% of the projected Energy and
Water sales and 113% of total operating revenue.
Operating expenses for 2022 and 2021 were approximately $279.8 million and $260.9 million,
respectively. The Electric Utility represented $244.1 million and $224.6 million for 2022 and 2021,
respectively, while the Water Utility represented $35.7 million and $36.3.3 million for 2022 and 2021 in
operating expenses, respectively. The largest components of operating expenses are fuel, purchased
power and production expense. Overall, in 2022, fuel, purchased power and electric production costs
totaled $165.6 million which is $19.8 million more than 2021. The BPU’s power supply mix for fiscal
years 2022 and 2021 was 22% and 22% coal, 55% and 55% net power purchases, 16% and 16% gas, and
7% and 7% oil, respectively.
2021 Compared to 2020
Net capital assets increased by $2.6 million in 2021. The increase is attributed to additions
associated with electric and water transmission and distribution assets, as well as additions to
general plant assets.
Debt service coverage ratio for 2021 increased to 2.45 times in comparison with 2.15 for the year
ended 2020.
Deferred outflows of resources increased by $33.1 million due to pension recognition.
Net position increased by $34.8 million during 2021.
In 2021, the BPU’s operating revenues were approximately $349.4 million, with the Electric Utility
recognizing revenues of $298.5 million and the Water Utility recognizing revenues of $50.9 million. The
average number of customer accounts remained stable from the prior year.
The BPU’s total operating revenue increased by approximately $31.5 million to $349.4 million in 2021.
The Electric Utility experienced increased electric sales of $33 million compared to 2020. Residential,
Commercial, and Industrial and Wholesale sales were less than prior year. Wholesale sales were up
compared to prior year due to Winter Storm Uri in February of 2021.
The Water Utility experienced a decrease of $1.5 million in water sales compared to 2020. In comparison
to the 2021 budgeted revenue, overall, the BPU collected 99% of the projected Energy and Water sales
and 112% of total operating revenue.
Board of Public Utilities
Management’s Discussion and Analysis
December 31, 2022 and 2021
(Unaudited)
26
Operating expenses for 2021 and 2020 were approximately $260.9 million and $243.2 million,
respectively. The Electric Utility represented $224.6 million and $207.9 million for 2021 and 2020,
respectively, while the Water Utility represented $36.3 million and $35.3 million for 2021 and 2020 in
operating expenses, respectively. The largest component of operating expenses is fuel, purchased power
and production expense. Overall, in 2021, fuel, purchased power and electric production costs totaled
$145.8 million which is $16.4 million more than 2020. The BPU’s power supply mix for fiscal years
2021 and 2020 was 22% and 23% coal, 55% and 66% net power purchases, 16% and 8% gas, and 7% and
3% oil, respectively.
Capital Assets
2022 Compared to 2021
Net capital assets increased by $4.3 million in 2022. Capital asset additions were offset by approximately
$41.3 million of depreciation and amortization expense.
Refer to Note 5 to the financial statements for additional information.
2021 Compared to 2020
Net capital assets increased by $2.6 million in 2021. Capital asset additions were offset by approximately
$39.1 million of depreciation and amortization expense.
Refer to Note 5 to the financial statements for additional information.
Debt Administration
2022 Compared to 2021
Noncurrent liabilities outstanding as of December 31, 2022 and 2021 were $649.0 million and
$679.0 million, respectively.
The BPU maintains a debt ratio that is consistent with the current provisions in the bond indenture
document. This debt service ratio is a measure of the adequacy of cash to pay debt service and is the
minimum amount necessary to prevent bond default. The BPU must maintain debt coverage of 1.2. The
coverage requirement imposed by the bond indenture is that operating revenues be at least 120% of the
maximum annual debt service.
The BPU also has a mandatory provision in its bond indentures for a debt service trigger when debt
coverage is 1.3 times or below the annual debt service payment amounts.
As of December 31, 2022 and 2021, the BPU had debt coverage of 2.83 times and 2.45 times,
respectively.
Board of Public Utilities
Management’s Discussion and Analysis
December 31, 2022 and 2021
(Unaudited)
27
In 2022, the BPU’s utility system bonds for both electric and water debt are rated A from both Fitch and
Standard & Poor’s Rating Services and A2 from Moody’s Investors Service. The interest rate on the
BPU’s outstanding debt ranges from .69% to 5.00%. Interest on debt expense for 2022 and 2021 was
$22.0 million and $23.5 million, respectively.
Refer to Note 6 to the financial statements for additional information.
2021 Compared to 2020
Noncurrent liabilities outstanding as of December 31, 2021 and 2020 were $679.0 million and
$717.8 million, respectively.
The BPU maintains a debt ratio that is consistent with the current provisions in the bond indenture
document. This debt service ratio is a measure of the adequacy of cash to pay debt service and is the
minimum amount necessary to prevent bond default. The BPU must maintain debt coverage of 1.2. The
coverage requirement imposed by the bond indenture is that operating revenues be at least 120% of the
maximum annual debt service.
The BPU also has a mandatory provision in its bond indentures for a debt service trigger when debt
coverage is 1.3 times or below the annual debt service payment amounts.
As of December 31, 2021 and 2020, the BPU had debt coverage of 2.45 times and 2.15 times,
respectively.
In 2021, the BPU’s utility system bonds for both electric and water debt are rated A from both Fitch and
Standard & Poor’s Rating Services and A2 from Moody’s Investors Service. The interest rate on the
BPU’s outstanding debt ranges from .69% to 5.20%. Interest on debt expense for 2021 and 2020 was
$23.5 million and $27.9 million, respectively.
Refer to Note 6 to the financial statements for additional information.
Board of Public Utilities
Statements of Net Position
December 31, 2022 and 2021
See Notes to Financial Statements (Continued) 28
Assets and Deferred Outflows of Resources 2022
2021
(As Restated)
Current assets:
Cash and cash equivalents $ 24,755,891 $ 44,337,909
Investments 19,808,027 —
Cash and cash equivalents – restricted 11,110,952 27,173,589
Investments – restricted 16,330,560 —
Accounts receivable – customers and other 32,455,283 26,861,877
Accounts receivable – unbilled 16,024,229 14,211,636
Allowance for doubtful accounts (221,529) (325,091)
Inventories 30,464,844 24,645,614
Regulatory assets 14,781,274 2,312,998
Prepayments and other current assets 3,902,440 3,924,625
Total current assets 169,411,971 143,143,157
Noncurrent assets:
Capital assets:
Property, plant, and equipment 1,930,344,381 1,870,778,928
Less accumulated depreciatio
n
(939,398,338) (902,505,513)
Plant in service, net 990,946,043 968,273,415
Construction work in progress 85,755,856 104,159,689
Capital assets, net 1,076,701,899 1,072,433,104
Restricted assets:
Cash and cash equivalents 2,773,016 9,774,250
Investments 249,000 249,000
Net pension asset 23,267,891 —
Total restricted assets 26,289,907 10,023,250
System development costs, net 699,929 561,973
Regulatory assets 62,526,966 66,205,022
Lease receivables 13,016,013 14,897,622
Total noncurrent assets 1,179,234,714 1,164,120,971
Total assets 1,348,646,685 1,307,264,128
Deferred outflows of resources:
Deferred loss on bond refunding 5,006,986 6,126,495
Deferred outflows - Pension 40,481,371 59,559,734
Total deferred outflows of resources 45,488,357 65,686,229
Total assets and deferred outflows of resources $ 1,394,135,042 $ 1,372,950,357
Board of Public Utilities
Statements of Net Position
December 31, 2022 and 2021
See Notes to Financial Statements 29
Liabilities , Deferred Inflows of Resources, and Net Pos ition 2022
2021
(As Res tated)
Liabilities:
Current liabilities :
Current maturities of revenue bonds $ 27,500,000 $ 26,360,000
Current maturities of government loans 3,226,196 3,126,122
Accrued interes t 6,828,161 7,208,432
Customer depos its 7,316,569 7,179,201
Accounts payable 31,715,133 25,915,522
Payroll and payroll taxes 2,376,781 2,778,998
Accrued claims payable 794,053 1,034,053
Workers compens ation 1,860,005 1,489,381
Public liability reserve 620,546 703,659
Other accrued liabilities 8,307,274 7,289,790
Payment-in-lieu of taxes 3,041,625 2,510,289
Cons truction contract retainage payable 258,767 240,794
Total current liabilities 93,845,110 85,836,241
Noncurrent liabilities :
Long-term debt – revenue bonds 574,353,768 603,633,966
Government loans 23,659,817 24,932,056
Total long-term debt 598,013,585 628,566,022
Total other postemployment benefit liability 43,584,221 42,856,226
Compens ated abs ences 7,442,070 7,205,898
Net pension liability — 361,568
Total noncurrent liabilities 649,039,876 678,989,714
Total liabilities 742,884,986 764,825,955
Deferred inflows of resources :
Deferred gain on bond refunding 738,339 830,608
Deferred inflows - pension 58,448,089 60,145,000
Deferred inflows - OPEB 9,038,998 11,495,040
Deferred inflows - leas es 14,754,757 16,733,670
Total deferred inflows of resources 82,980,183 89,204,317
Net position:
Net inves tment in capital as s ets 451,012,342 427,959,301
Res tricted - debt s ervice 22,724,943 22,594,388
Res tricted - net pension as s et 23,267,891 —
Unrestricted 71,264,697 68,366,395
Total net pos ition 568,269,873 518,920,084
Total liabilities , deferred inflows of res ources,
and net pos ition $ 1,394,135,042 $ 1,372,950,357
Board of Public Utilities
Statements of Revenues, Expenses and Changes in Net Position
Years Ended December 31, 2022 and 2021
See Notes to Financial Statements 30
2022
2021
(As Restated)
Operating revenues:
Residential $ 110,391,146 $ 98,837,029
Commercial 126,967,366 104,869,840
Industrial 57,733,185 45,213,319
Other 40,445,684 66,416,518
Energy rate component recovery 12,468,276 2,312,998
Payment-in-lieu of taxes 37,073,894 31,715,220
Total operating revenues 385,079,551 349,364,924
Operating expenses:
Fuel 55,754,914 47,845,256
Purchased power 67,452,166 58,012,729
Production 42,442,507 39,990,738
Transmission and distribution 46,245,007 46,294,841
General and administrative 26,629,022 29,722,913
Depreciation and amortization 41,253,137 39,056,593
Total operating expenses 279,776,753 260,923,070
Operating income 105,302,798 88,441,854
Nonoperating revenues (expenses):
Interest expense (22,029,289) (23,513,227)
Payment-in-lieu of taxes (37,073,894) (31,715,220)
Other 1,787,862 679,899
Total nonoperating expenses, net (57,315,321) (54,548,548)
Income before contributions and transfers 47,987,477 33,893,306
Contributions and transfers:
Contributions from developers and others 1,362,312 952,442
Change in net position 49,349,789 34,845,748
Net position, beginning of year, as restated 518,920,084 484,074,336
Net position, end of year $ 568,269,873 $ 518,920,084
Board of Public Utilities
Statements of Cash Flows
Years Ended December 31, 2022 and 2021
See Notes to Financial Statements 31
2021
2022
(As Restated)
Cash flows from operating activities:
Receipts from customers $ 375,615,923 $ 349,147,862
Receipts from customers on behalf of Unified Government 62,103,508 57,410,461
Payments to suppliers (194,429,401) (172,728,398)
Payments to Unified Government (60,956,861) (57,142,715)
Payments to employees (63,349,094) (64,175,861)
Net cash provided by operating activities 118,984,075 112,511,349
Cash flows used in noncapital financing activities – payment-in-lieu of taxes (36,542,558) (31,618,335)
Cash flows from capital and related financing activities:
Purchases of property, plant, and equipment (41,981,150) (34,918,561)
Proceeds from government loans 1,953,958 -
Principal payments received on lease receivables 1,881,609 -
Interest p ayments received on lease receivables 72,450 -
System development costs (184,350) (306,218)
Payments on revenue bonds (26,360,000) (25,395,000)
Payments on government loans (3,126,122) (3,372,051)
Interest paid on utility system debt (22,409,561) (23,618,590)
Net cash used in capital and related financing activities (90,153,166) (87,610,420)
Cash flows provided by (used in) investing activities:
Purchases of investments (73,353,587) (14,111,977)
Proceeds from sales and maturities of investments 37,215,000 27,813,000
Interest received 1,204,347 92,941
Net cash provided by (used in) investing activities (34,934,240) 13,793,964
Net increase (decrease) in cash and cash equivalents (42,645,889) 7,076,558
Cash and cash equivalents, beginning of yea
r
81,285,748 74,209,190
Cash and cash equivalents, end of year $ 38,639,859 $ 81,285,748
Components of cash and cash equivalents at end of fiscal year:
Restricted $ 13,883,968 $ 36,947,839
Unrestricte
d
24,755,891 44,337,909
$ 38,639,859 $ 81,285,748
Reconciliation of operating income to net cash provided by operating activities:
Operating income $ 105,302,798 $ 88,441,854
Adjustments to reconcile operating income to net cash provided by operating activities:
Depreciation and amortization 41,253,137 39,056,593
Changes in noncash assets and noncash liabilities:
Accounts receivable – customers and other, net (7,509,564) (178,656)
Inventories (5,819,229) 3,166,650
Prepayments and other current assets (141,519) (122,359)
Customer deposits 137,367 (172,450)
Accounts payable 6,756,336 (816,423)
Payroll and payroll-related liabilities (166,044) (1,008,433)
Accrued claims payable 47,512 138,581
Other accrued liabilities 1,017,485 946,859
Deferred fuel costs and deferred purchased power (12,468,276) (13,975,719)
Construction contract payable 17,972 (1,105,434)
Deferred outflows - pension 19,078,363 24,735,723
Deferred inflows - pension (1,696,912) (34,249,752)
Net pension asset/liability (23,629,459) 7,567,390
Total other postemployment benefit liability 727,995 (8,069,316)
Deferred inflows - other postemployment benefits (2,456,042) 7,690,105
Deferred inflows - leases (1,978,913) -
Other noncurrent assets, net 511,068 466,136
Net cash provided by operating activities $ 118,984,075 $ 112,511,349
Supplemental noncash disclosure:
Contributions of capital assets from developers $ 1,362,312 $ 952,442
Change in accounts payable incurred for purchase of capital assets 956,723 2,546,793
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
32
Note 1: Summary of Significant Accounting Policies
Description of Business
The Board of Public Utilities of Kansas City, Kansas (the BPU) consists of the municipal electric
and water utility, which provide services to approximately 65,000 electric and 53,000 water
customers.
Under Charter Ordinance of the Unified Government of Wyandotte County, Kansas City, Kansas
(the Unified Government), the BPU is an administrative agency of the Unified Government and, as
such, is a part of the Unified Government’s primary government. However, the BPU’s operational
and administrative control is under a six-member elected board of directors (the Board). The
accompanying financial statements represent the combination of only those operations related to
the Unified Government’s electric and water utility. The financial statements do not purport to and
do not present the financial position of the Unified Government.
Basis of Accounting
The BPU accounts for the water and electric utility as an enterprise fund. Significant
interdepartmental accounts, including interdepartmental sales, have been eliminated. BPU uses the
economic resources measurement focus and accrual basis of accounting under which revenues are
recognized when earned and expenses are recorded when liabilities are incurred. The BPU’s
accounting policies conform to the requirements for regulated operations. In accordance with these
rules, certain costs or credits may be recorded as deferred charges or credits when it is probable
that future rates established by the Board permit recovery of specific costs or require these credits
to be returned to ratepayers. The BPU applies the provisions of GASB Accounting Standards
Codification Section Re10, Regulated Operations, as appropriate.
Revenues and expenses are classified as either operating or nonoperating. Operating revenues and
expenses generally result from providing services in connection with ongoing operations.
Operating revenues include activities that have characteristics of exchange transactions, including
charges for services. Nonoperating revenues include activities that have the characteristics of
nonexchange transactions, such as grants, subsidies and investment income. Operating expenses
include the cost of service, payroll, administrative expenses, contractual services and depreciation.
All expenses not meeting the above criteria are classified as nonoperating.
Estimates and Assumptions
The preparation of financial statements in conformity with U.S. generally accepted accounting
principles (GAAP) requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. Significant items subject to
such estimates and assumptions include the useful lives of capital assets; allowances for doubtful
accounts, and inventory; employee benefit obligations, environmental liabilities and other
contingencies.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
33
Revenue Recognition
Operating revenues are recognized when electric and water services are delivered to customers.
Payment-in-lieu of taxes represents amounts billed and collected by the BPU on behalf of the
Unified Government. The BPU remits all such amounts to the Unified Government.
Meters are read and bills are rendered on a cycle basis. Unbilled revenue represents services
delivered to customers and not billed at the end of a period. Management accrues estimated
delivered amounts each period.
Operating revenues reported in the statements of revenues, expenses and changes in net position
are shown net of discounts and estimated allowances for doubtful accounts.
Cash and Cash Equivalents
Cash and cash equivalents include all highly liquid investments (including restricted assets) with an
original maturity of three months or less when purchased. Current restricted assets are assets that
are scheduled to be disbursed within the year.
Capital Assets
Capital assets are stated at cost to acquire or cost to construct. These costs include payroll-related
costs, including pensions and other fringe benefits. For depreciable assets that are retired due to
circumstances other than impairment, the net book value of assets retired plus the cost of removal,
less salvage, is charged against accumulated depreciation with no gain or loss recognized. Per the
financial reporting requirements of GASB Statement No. 42, Accounting and Financial Reporting
for Impairment of Capital Assets and for Insurance Recoveries, any losses associated with capital
asset impairments will be charged as a nonoperating expense. Repairs and maintenance are
charged to maintenance expense. Contributions from developers and others are stated at
acquisition value at the date donated. Currently, the BPU has a capitalization threshold of $5,000
for plant assets.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net assets that applies to a future period(s) and so will not be
recognized as an outflow of resources (expense) until that time. The BPU has three items that meet
the criterion for reporting as deferred outflows on the statement of net position, the deferred charge
on bond refunding, the changes in assumptions in the pension plan, and contributions made to
retirement and other postemployment benefit plans subsequent to the measurement date. A
deferred charge on refunding results from the difference in the carrying value of refunded debt.
This amount is deferred and amortized over the shorter of the life of the refunded or refunding
debt. The changes in assumptions in the pension plan are recognized in pension expense over the
average working lifetime of all plan participants, beginning in the current reporting period. These
amounts are described in detail in Note 9.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
34
In addition to liabilities, the statement of net position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net assets that applies to a future period(s) and so will not be
recognized as an inflow of resources (revenue and/or contra expense) until that time. The BPU will
report certain changes in assumptions relating to the OPEB plan, difference between expected
actual expense in the pension and OPEB plans, difference between expected and actual earnings in
the pension plan, the amount for leases, as lessor, under GASB 87 guidance, and deferred charge
on refunding as deferred inflows of resources on the statement of net position.
Depreciation
The BPU depreciates plant and equipment on a composite basis over their estimated useful lives on
a straight-line basis. In 2022, the BPU engaged an independent third-party consulting firm to
conduct a depreciation study to determine if existing depreciation rates remained applicable to the
depreciable property groups. The depreciation study performed in 2022 resulted in a change in
accounting estimate. New depreciation rates resulting from the study were adopted during fiscal
year 2022.
Use
f
ul
C
omposite Lives
Rates
(
in years
)
Production plant 2.57%–4.00% 25–39
Transmission and distribution 1.63%–6.67% 15–61
General plant 2.00%–7.75% 13–50
Accounts Receivable
An estimate is made for the provision for uncollectible accounts based on an analysis of the aged
accounts receivable and historical write-offs, net of recoveries. Additional amounts may be
included based upon management’s evaluation of customer credit risks. Allowances for doubtful
accounts totaled $221 and $325 thousand at December 31, 2022 and 2021, respectively.
Inventories
Inventories are stated at cost and consist of the following:
2022 2021
Fuel $ 9,045,573 $ 4,493,362
Material and supplies 21,419,271 20,152,252
Total $ 30,464,844 $ 24,645,614
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
35
Investments
Investments consist of deposits, repurchase agreements, certificates of deposit, money market
funds, and U.S. Treasury securities, which are recorded at estimated fair value as determined by
market prices. The BPU’s investment policies are governed by the BPU’s Charter Ordinance,
management policies, and statutes established by the State of Kansas. Securities are held by the
BPU’s safekeeping agent. Cash deposits are held with banks insured by Federal Deposit Insurance
Corporation (FDIC) and acceptable collateral is maintained for amounts above FDIC limits, equal
to or greater than 102% of the funds deposited at all times.
Brushy Creek Coal Company and Liberty Coal Company
The BPU holds an indirect 50% interest in Brushy Creek Coal Company (BCCC) and a 50%
indirect interest in Liberty Coal Company (Liberty). The other 50% interest in both BCCC and
Liberty is indirectly owned by the City of Sikeston, Missouri (Sikeston). BCCC was the owner and
operator of a coal mine and related equipment located in Illinois. BCCC discontinued mining
operations in 1997. BCCC did not have material operations during the years ended December 31,
2022 and 2021. Upon cessation of operations at BCCC, the BPU became contractually responsible
for 50% of asset retirement obligations and for 50% of certain postretirement benefits to mine
workers. At December 31, 2022 and 2021, the BPU has recorded an estimated liability of
$794,000 and $1.0 million, respectively, within accrued claims payable for its estimated remaining
share of these obligations. Funding provided for these obligations was $240,000 in 2022 and 2021.
The amounts recorded for the BPU’s portion of the asset retirement obligation and the miners’
benefits require significant judgment and involve a number of estimates. The BPU has recorded its
estimated obligations for each of these items using information currently available to management.
These estimates could change significantly over time.
Customer Deposits
Customer deposits are moneys that have been collected from customers that are held by the BPU
until the customer either terminates their service or the customer is in good credit standing with the
BPU for 12 months. The funds are held in an interest-bearing account; after 12 months, the
deposit, plus interest, is credited back to the customer.
Debt Issuance Costs
Debt issuance costs are expensed as incurred with the exception that bond insurance premiums are
capitalized and amortized over the life of the bonds.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
36
Pensions
The net pension liability (asset) is calculated as the difference between the actuarially calculated
value of the projected benefit payments attributed to past periods of service and the plans’ fiduciary
net position. The total pension expense is comprised of the service cost or actuarial present value
of projected benefit payments attributed to the valuation year, interest on the total pension liability,
plan administrative expenses, current year benefit changes, and other changes in plan fiduciary net
position less employee contributions and projected earnings on plan investments. Additionally, the
total pension expense includes the annual recognition of outflows and inflows of resources due to
pension assets and liabilities.
For purposes of measuring the net pension liability (asset), deferred outflows of resources related to
pensions, pension expense, and information about the fiduciary net position of the Retirement
Pension Plan for Employees of the Board of Public Utilities of Kansas City, Kansas (the Plan) and
additions to/deductions from the Plan’s fiduciary net position have been determined on the same
basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
Other Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources related to OPEB
and OPEB expense have been determined on the same basis as they are for the OPEB Plan. For
this purpose, benefit payments are funded on a pay-as-you-go basis. The BPU funds on a cash
basis as benefits are paid. No assets have been segregated and restricted to provide for
postretirement benefits. Generally accepted accounting principles require that the reported results
must pertain to liability and asset information within certain defined timeframes. The following
timeframes are used for the year ended December 31, 2022:
Valuation Date January 1, 2022
Measurement Date December 31, 2022
Measurement Period January 1, 2022 to December 31, 2022
For the year ended December 31, 2021:
Valuation Date January 1, 2022
Measurement Date December 31, 2021
Measurement Period January 1, 2021 to December 31, 2021
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
37
Vacation and Sick Leave
Under the terms of the BPU’s personnel policy, employees are granted vacation and sick leave. In
the event of termination, an employee is paid for accumulated vacation days. Employees may
carry over, from year to year, a maximum of 120 hours of vacation hours for bargaining unit
employees and 120 hours for non-bargaining employees. The liability for accumulated vacation of
$1,700,500 and $1,676,100 includes current vacation of $247,330 and $266,900 at December 31,
2022 and 2021, respectively, which is included in reserve for compensated absences and payroll
and payroll tax liabilities in the accompanying statements of net position. Sick leave can be
accrued up to 1,760 hours. Employees who resign with at least 15 years of service are paid for
75% of accumulated sick leave. All employees are paid for accumulated sick leave upon
retirement or death. The liability for accrued sick leave of $7,043,400 and $6,934,400 includes
current sick leave of $1,054,500 and $1,137,700 at December 31, 2022 and 2021, respectively,
which is included in reserve for compensated absences and payroll and payroll taxes in the
accompanying statements of net position.
Beginning
Balance Additions Reductions
Ending
Balance
Sick leave $ 6,934,400 $ 1,054,500 $ (945,500) $ 7,043,400
Vacation 1,676,100 247,330 (222,930) 1,700,500
2022
2021
Beginning Ending
Balance Additions Reductions Balance
Sick leave $ 6,478,800 $ 1,137,700 $ (682,100) $ 6,934,400
Vacatio
n
1,629,700 266,900 (220,500) 1,676,100
Net Position
In the financial statements, net position is displayed in three components as follows:
Net investment in capital assets – This consists of capital assets, net of accumulated
depreciation, less the outstanding balances of any bonds, notes, or other borrowings that are
attributable to the acquisition, construction or improvement of those assets.
Restricted – This consists of net positions that are legally restricted by outside parties or by
law through constitutional provisions or enabling legislation. When both restricted and
unrestricted resources are available for use, it is generally the BPU’s policy to use restricted
resources first, then unrestricted resources as they are needed.
Unrestricted – This consists of net position that does not meet the definition of “restricted”
or “net investment in capital assets.”
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
38
Accounting Pronouncements - Not Yet Effective
GASB Statement No. 94 – Public-Private and Public-Public Partnerships and Availability
Payment Arrangements. The primary objective of this Statement is to improve financial reporting
by addressing issues related to public-private and public partnership arrangements (PPPs). The
requirements of this Statement are effective for reporting periods beginning after June 15, 2022,
which is the fiscal year beginning January 1, 2023. At this time, the BPU is currently assessing the
impact of this Statement.
GASB Statement No. 96 – Subscription-Based Information Technology Arrangements. The
primary objective of this Statement is to provide guidance on the accounting and financial
reporting for subscription-based information technology arrangements (SBITAs) for government
end users. The requirements of this Statement are effective for reporting periods beginning after
June 15, 2022, which is the fiscal year beginning January 1, 2023. At this time, the BPU is
currently assessing the impact of this Statement.
GASB Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance
comparability in accounting and financial reporting and to improve the consistency of authoritative
literature by addressing (1) practice issues that have been identified during implementation and
application of certain GASB Statements and (2) accounting and financial reporting for financial
guarantees. The requirements of this Statement are effective at various dates based on topics
addressed. At this time, the BPU is currently assessing the impact of this Statement.
GASB Statement 100, Accounting Changes and Error Corrections – an amendment of GASB
Statement No. 62. The primary objective of this Statement is to enhance accounting and financial
reporting requirements for accounting changes and error corrections to provide more
understandable, reliable, relevant, consistent, and comparable information for making decisions or
assessing accountability. The requirements of this Statement are effective for fiscal years beginning
after June 15, 2023 which is the fiscal year beginning January 1, 2024. At this time, the BPU is
currently assessing the impact of this Statement.
GASB Statement No. 101, Compensated Absences. The objective of this Statement is to better
meet the information needs of financial statement users by updating the recognition and
measurement guidance for compensated absences. That objective is achieved by aligning the
recognition and measurement guidance under a unified model and by amending certain previously
required disclosures. The requirements of this Statement are effective for fiscal years beginning
after December 15, 2023 which is the fiscal year beginning January 1, 2024. At this time, the BPU
is currently assessing the impact of this Statement.
Accounting Pronouncements – Adopted in 2022
GASB issued Statement No. 87, Leases, in June 2017, originally effective for reporting periods
beginning after December 15, 2019. GASB issued Statement No. 95, Postponement of the Effective
Dates of Certain Authoritative Guidance (GASB 95), which postponed the effective date to
reporting periods beginning after June 15, 2021. The objective of this statement is to better meet
the information needs of financial statement users by improving accounting and financial reporting
for leases by governments by creating a single model for leases. This statement increases the
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
39
usefulness of the financial statements by requiring recognition of certain lease assets and liabilities
for leases that previously were classified as operating leases and recognized as inflows of resources
or outflows of resources based on the payment provisions of the contract. The BPU adopted this
statement as of January 1, 2021, the earliest period presented in these financial statements. The
implementation of this statement resulted in the recognition of a lease receivable and a deferred
inflow of resources of $18,712,581 as of January 1, 2021 for lessor contracts. This guidance also
requires restatement of the prior year’s information, see Note 13 for the impact of the restatement.
Leases are contracts that convey control of the right to use another entity’s nonfinancial asset as
specified for a period of time in an exchange or exchange-like transaction without the transfer of
ownership of the asset. The lease term is the period of time where there is a noncancellable right to
use the underlying asset. The BPU set a capitalization threshold for leases with total payments over
the life of the contract in excess of $25,000.
For lessor contracts, lease receivables and deferred inflows of resources are reported at present
value using the BPU’s incremental borrowing rate unless otherwise noted in the contract terms.
Lease receivables are reported in prepayments and other current assets for the current portion and
lease receivables for the long-term portion on the statements of net position. The amortization of
the discount for lessor contracts is recorded as prepayments and other current assets on the
Statements of Net Position with the offset to interest income in other – net on the statements of
revenue, expenses and changes in net position.
Note 2: Cash and Investments
Kansas state statutes authorize the BPU, with certain restrictions, to invest in open accounts, time
deposits, certificates of deposit, U.S. Treasury notes and U.S. agency notes. All deposits with
banks are collateralized at 102% of market value, as required by the BPU’s Cash and Investment
Policy and Kansas state statute, less insured amounts.
The following represents the BPU’s total cash and investments at December 31, 2022 and 2021:
2022 2021
Cash and certificates of deposit (CDs) $ 637,135 $ 523,308
Repurchase agreements 32,935,324 52,493,802
U.S. Treasuries and U.S. Agencies 35,876,589 —
Money market funds 5,578,398 28,517,638
Total cash and investments $ 75,027,446 $ 81,534,748
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
40
Cash and investments are included in the following statement of net position accounts at
December 31, 2022 and 2021:
2022 2021
Current assets:
Cash and cash equivalents $ 24,755,891 $ 44,337,909
Investments 19,808,027 —
Cash and cash equivalents – restricted 11,110,952 27,173,589
Investments – restricted 16,330,560 —
Noncurrent restricted assets:
Cash and cash equivalents 2,773,016 9,774,250
Investments 249,000 249,000
$ 75,027,446 $ 81,534,748
Deposits and Investments
The BPU maintains a cash and investment program to pay for operating and capital requirements,
as well as, for debt service requirements. The investment program consists of deposits, repurchase
agreements, certificates of deposit and U.S. Treasury securities. Other investments using
U.S. agency and money market fund securities for the debt service program are managed by the
bond trustee. Nearly all maturities of securities were less than one year. At December 31, 2022
and 2021, the bank balance and certificates of deposit were $637,135 and $523,308, respectively,
which were covered by federal depository insurance or collateral held in safekeeping in the BPU’s
name.
The fair values, as determined by market prices, of the BPU’s cash and investments at
December 31, 2022 are as follows:
Investment Maturities
Less than 6–12
Investment Type Fair Value 6 Months Months
Cash and CDs $ 637,135 $ 637,135 $ -
Repurchase agreements 32,935,324 32,935,324 -
U.S. Treasuries and U.S. Agencies 35,876,589 21,759,444 14,117,145
Money market funds 5,578,398 5,578,398 -
Total $ 75,027,446 $ 60,910,301 $ 14,117,145
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
41
The fair values, as determined by market prices, of the BPU’s cash and investments at
December 31, 2021 are as follows:
Investment Maturities
Less than 6–12
Investment Type Fair Value 6 Months Months
Cash and CDs $ 523,308 $ 523,308 $ -
Repurchase agreements 52,493,802 52,493,802 -
Money market funds 28,517,638 28,517,638 -
Total $ 81,534,748 $ 81,534,748 $ -
Investment Policy
The BPU has an investment policy that regulates investments in securities that have objectives of
safety of principal, liquidity with all investments in U.S. dollars, and investment returns optimized
within the constraints of safety and liquidity. Eligible securities are specific to Kansas state
statutes and the BPU’s bond indenture agreements. All securities owned by the BPU are in
conformance with the investment policy.
Credit Risk
Credit risk is the risk that an entity will not be able to honor its commitments in the event of
liquidation. The BPU’s investment policy states that the investment portfolio be designed and
managed in accordance with the responsibility of ensuring the public’s trust and is consistent with
state and local laws. Two investment objectives that the BPU strives for are safety and liquidity.
Investments are made so as to minimize the potential for realized losses arising from changes in
fair value or issuer default. Sufficient liquidity is also maintained in order to meet the anticipated
cash needs of the utility. The BPU manages credit risk by requiring all investments meet the
investment guidelines as established by the State of Kansas as described in K.S.A. 12-1675 and
10-131. These statutes require all investments be in (a) U.S. Treasury securities; (b) U.S. agency
securities; (c) Money Market Mutual Funds; (d) Repurchase Agreement securities; (e) and any
external investment pools and be the highest rated by nationally recognized rating agencies. All of
the BPU’s securities including money market mutual funds are AAA rated by Moody’s. Any bank
deposits and certificates of deposit are fully collateralized by the FDIC or other qualifying
securities. All securities held by the BPU meet the credit quality objective.
Custody Risk
Custody risk is the risk that, in the event of the failure of the counterparty to a transaction, an entity
will not be able to recover the value of the investment or collateral securities that are in the
possession of an outside party. The BPU believes it has no custodial risk. All securities are
registered in the name of the BPU and held by a third-party safekeeping agent. Investments in
money market mutual funds are not exposed to custodial risk because their existence is not
evidenced by securities that exist in physical or book entry form.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
42
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s
investment in a single issuer. The BPU manages credit risk by requiring all investments meet the
investment guidelines as established by the state of Kansas in K.S.A. 12-1675 and 10-131 and
diversifying investment holdings to avoid high concentration of any one security issuer. The BPU
has a concentration of credit risk where it holds more than 5% of its investment portfolio in any
one security issuer other than U.S. Treasury securities and in investment pools.
The following U.S. agency securities held in safekeeping by the BPU’s bond trustee are in excess
of 5% of total investments as of December 31, 2022:
Percentage of
Issuer Amount Total Portfolio
Federal Home Loan Bank $ 16,068,561 21.42%
The BPU did not hold more than 5% of its investment portfolio in any one security issuer as of
December 31, 2021.
Interest Rate Risk
Interest rate risk is the risk that the fair value of the BPU’s investments will decrease as a result of
the increase in interest rates. The BPU investment policy requires the minimization of the risk of
fair value change. This is accomplished by structuring the investment portfolio so that fixed
income securities mature to meet cash requirements for debt service and other disbursement
requirements for ongoing operations and by keeping maturities short.
Derivatives
The BPU has not used derivative instruments historically. Contracts containing derivatives, such
as coal procurement and other commodity purchase contracts are routinely evaluated and amounts
purchased have been used by the BPU in producing power and qualify as normal purchases.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
43
Non-restricted Designated Assets
Certain cash and investment amounts have been designated by Board policy for specific purposes
as follows:
2022 2021
Economic development fund $ 1,975 $ 250,000
Capital debt reduction 6,290,000 6,290,000
Reserve - public liabilit
y
1,000,000 1,000,000
Reserve - workers' comp 1,100,000 1,100,000
Rate stabilization fund 9,156,273 9,156,273
System development reserve 11,562,888 10,801,732
Total $ 29,111,136 $ 28,598,005
Note 3: Restricted Assets
Restricted assets were held in the following funds at December 31, 2022 and 2021:
2022 2021
Debt service fund $ 20,124,943 $ 19,994,388
Customer deposits 7,316,569 7,179,201
Construction funds 1,522,016 8,523,250
Improvement and emergency fund 1,500,000 1,500,000
Total restricted assets $ 30,463,528 $ 37,196,839
The BPU is permitted to invest funds in specified types of investments in accordance with its
investment policy until the time such funds are required to be disbursed for their designated
purposes.
Note 4: Dogwood Energy Facility (Dogwood)
BPU owns an undivided 17% interest in the assets of the Dogwood Energy Facility (Dogwood), a
natural gas-fired combined cycle generating plant located in Pleasant Hill, Missouri in Cass
County, Missouri, operated by Dogwood Energy, LLC. In addition to the BPU, Kansas Power
Pool (KPP), Missouri Joint Municipal Electric Utility Commission (MJMEUC) and the City of
Independence, Missouri also own 10.3%, 16.4% and 12.3%, respectively, of the Dogwood Energy
Facility. Dogwood Energy, LLC maintains the remaining ownership (44.0%) in the facility.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
44
The BPU’s portion of the 630 megawatt (MW) rated capability of Dogwood is approximately 110
megawatts (MW). Generation from Dogwood and operating expenses incurred by Dogwood are
allocated to the BPU based on the 17% ownership interest. The BPU’s proportionate share of their
plant operating expenses is included in the corresponding operating expenses in the statement of
net position. In addition, the BPU is required to provide its share of financing for any capital
additions to Dogwood. During 2022 and 2021, BPU’s portion of fuel expense was $16,064,217
and $15,154,453, respectively, and its portion of operating and maintenance expense was
$3,411,544 and $3,121,315, respectively. BPU also receives a portion of the wholesale sales
generated by the Dogwood plant. BPU received $23,920,688 and $27,008,279 during 2022 and
2021, respectively, in wholesale sales from Dogwood. These amounts are included in the
accompanying statements of revenues, expenses and changes in net position.
The BPU applied proportionate consolidation rules to record its undivided ownership interest in
this facility. The BPU’s investment includes an acquisition adjustment of $34.8 million, which is
presented as property, plant, and equipment and amortized over the estimated life of the plant
(29.1 years). The BPU paid 15 years of Payment-in-Lieu of Taxes (PILOT) to Cass County,
Missouri in the amount of $2.5 million. This was recorded as a prepayment and is being amortized
until 2028.
The BPU Board of Directors has approved the recovery of amounts invested in this facility,
including the acquisition adjustments in current rates.
Information relative to the BPU’s ownership interest in Dogwood as of December 31, 2022 and
2021, is shown in the table below. These amounts are included in the 2022 and 2021 Capital
Assets table in Note 5.
Percent Plant in Accumulated
Facility (type) Ownership
Net MW Service Depreciation CWIP
Dogwood (combined cycle) 17% 110 45,517,494$ 12,986,425$ 1,887,912$
Dogwood (combined cycle) 17% 110 45,517,494$ 11,446,031$ 379,701$
2022
2021
The BPU has an operating agreement with Dogwood Energy, LLC, which provides for a
management committee comprising one representative and an alternate from each participant.
Dogwood Power Management, LLC, the project management company, controls the operating and
maintenance decisions of Dogwood in its role as operator. The BPU and other participating
entities have joint approval rights for the annual business plan, the annual budget and material
changes to the budget.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
45
Note 5: Capital Assets
Capital asset activity for the year ended December 31, 2022 is as follows:
Beginning Transfers/ Ending
Balance Additions Retirements Adjustments Balance
Electric:
Production plan
t
$ 831,274,243 $ 7,843,427 $
–
– $ (1,201,133) $ 837,916,537
Transmission and distribution 466,609,443 40,417,452 (23,983) 285,922 507,288,834
General plant 149,057,911 3,452,439
–
– 6,240 152,516,590
Total electric 1,446,941,597 51,713,317 (23,983) (908,971) 1,497,721,960
Water:
Production plan
t
142,975,068 855,020
–
– 6,940 143,837,028
Transmission and distribution 228,391,154 6,685,738
–
– 1,560 235,078,452
General plant 52,471,109 1,235,832
–
–
–
– 53,706,941
Total water 423,837,331 8,776,590 –– 8,500 432,622,421
Property, plant,
and equipment 1,870,778,928 60,489,907 (23,983) (900,471) 1,930,344,381
Construction work in progress –
not depreciable 104,159,689 42,386,730 (60,790,563)
–
– 85,755,856
Total capital assets 1,974,938,617 102,876,637 (60,814,546) (900,471) 2,016,100,237
Less accumulated depreciation:
Electric:
Production plant 399,896,472 16,230,786
–
–
–
– 416,127,258
Transmission and
distribution 250,488,110 7,743,548 (19,884) (11,832) 258,199,942
General plant 89,273,821 4,724,484
–
– 314 93,998,619
Total electric 739,658,403 28,698,818 (19,884) (11,518) 768,325,819
Water:
Production plant 72,148,030 3,229,708
–
–
–
– 75,377,738
Transmission and
distribution 56,690,083 3,651,359
–
–
–
– 60,341,442
General plant 34,008,997 1,344,264
–
– 78 35,353,339
Total water 162,847,110 8,225,331 –– 78 171,072,519
Combined total 902,505,513 36,924,149 (19,884) (11,440) 939,398,338
Capital assets, net $ 1,072,433,104 $ 65,952,488 $ (60,794,662) $ (889,031) $ 1,076,701,899
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
46
Capital asset activity for the year ended December 31, 2021 is as follows:
Beginning Transfers/ Ending
Balance Additions Retirements Adjustments Balance
Electric:
Production plan
t
$ 826,054,130 $ 5,602,989 $
–
– $ (382,876) $ 831,274,243
Transmission and distribution 456,087,808 10,386,787 (29,414) 164,262 466,609,443
General plant 146,633,547 2,424,364
–
–
–
– 149,057,911
Total electric 1,428,775,485 18,414,140 (29,414) (218,614) 1,446,941,597
Water:
Production plan
t
141,835,683 1,148,105
–
– (8,720) 142,975,068
Transmission and distribution 224,206,425 4,185,735
–
– (1,006) 228,391,154
General plant 51,719,290 751,819
–
–
–
– 52,471,109
Total water 417,761,398 6,085,659 –– (9,726) 423,837,331
Property, plant,
and equipment 1,846,536,883 24,499,799 (29,414) (228,340) 1,870,778,928
Construction work in progress –
not depreciable 91,252,887 38,379,394 (25,472,592)
–
– 104,159,689
Total capital assets 1,937,789,770 62,879,193 (25,502,006) (228,340) 1,974,938,617
Less accumulated depreciation:
Electric:
Production plant 385,478,782 14,382,478
–
– 35,212 399,896,472
Transmission and
distribution 243,459,846 7,051,026 (22,762)
–
– 250,488,110
General plant 84,424,428 4,849,393
–
–
–
– 89,273,821
Total electric 713,363,056 26,282,897 (22,762) 35,212 739,658,403
Water:
Production plant 68,746,486 3,402,682
–
– (1,138) 72,148,030
Transmission and
distribution 53,219,685 3,470,398
–
–
–
– 56,690,083
General plant 32,611,745 1,397,252
–
–
–
– 34,008,997
Total water 154,577,916 8,270,332 –– (1,138) 162,847,110
Combined total 867,940,972 34,553,229 (22,762) 34,074 902,505,513
Capital assets, net $ 1,069,848,798 $ 28,325,964 $ (25,479,244) $ (262,414) $ 1,072,433,104
As discussed in Note 4, on December 18, 2012, the BPU acquired an undivided 17% interest in the
assets of the Dogwood Energy Facility. The BPU’s portion of the Dogwood investment included
an acquisition adjustment of $34.8 million. This amount is included in the Electric Production
Plant. The BPU is amortizing the acquisition adjustment over 29.1 years. The amount amortized
in 2021 and 2022 is $1,201,133 and is included in the Electric Production Plant Adjustments in the
2021 and 2022 table.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
47
Note 6: Long-Term Debt
The BPU’s indebtedness as of December 31, 2022 consists of the following obligations:
Beginning Ending Amount Due
Balance Additions Reductions Balance in One Year
Revenue bonds:
2012 refunding $ 1,195,000 $
—
$ (1,195,000) $
—
$
—
2012B 2,030,000
—
(2,030,000)
—
—
2014 133,380,000
—
(14,240,000) 119,140,000 14,945,000
2016A 114,165,000
—
(2,605,000) 111,560,000 2,735,000
2016B refunding 39,150,000
—
(1,825,000) 37,325,000 1,920,000
2016C 56,265,000
—
—
56,265,000
—
2020A 16,525,000
—
(490,000) 16,035,000 500,000
2020B 230,100,000
—
(3,975,000) 226,125,000 7,400,000
592,810,000 — (26,360,000) 566,450,000 27,500,000
Unamortized premium 37,183,966 — (1,780,198) 35,403,768 —
Total revenue
b
onds 629,993,966
—
(28,140,198) 601,853,768 27,500,000
Government loans – Unified KCK 3,870,213
—
(363,296) 3,506,917 373,152
Government loans – KDHE 24,187,965 1,953,958 (2,762,827) 23,379,096 2,853,044
$ 658,052,144 $ 1,953,958 $ (31,266,321) $ 628,739,781 $ 30,726,196
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
48
The BPU’s indebtedness as of December 31, 2021 consists of the following obligations:
Beginning Ending Amount Due
Balance Additions Reductions Balance in One Year
Revenue bonds:
2011 $ 6,360,000 $
—
$ (6,360,000) $
—
$
—
2012 refunding 3,660,000
—
(2,465,000) 1,195,000 1,195,000
2012B 3,980,000
—
(1,950,000) 2,030,000 2,030,000
2014 144,340,000
—
(10,960,000) 133,380,000 14,240,000
2016A 114,165,000
—
—
114,165,000 2,605,000
2016B refunding 40,890,000
—
(1,740,000) 39,150,000 1,825,000
2016C 56,265,000
—
—
56,265,000
—
2020A 17,010,000
—
(485,000) 16,525,000 490,000
2020B 231,535,000
—
(1,435,000) 230,100,000 3,975,000
618,205,000 — (25,395,000) 592,810,000 26,360,000
Unamortized premium 38,964,165 — (1,780,199) 37,183,966 —
Total revenue
b
onds 657,169,165
—
(27,175,199) 629,993,966 26,360,000
Government loans – Unified KCK 4,566,680
—
(696,467) 3,870,213 363,296
Government loans – KDHE 26,863,549
—
(2,675,584) 24,187,965 2,762,826
$ 688,599,394 $ — $ (30,547,250) $ 658,052,144 $ 29,486,122
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
49
Details of utility system revenue bonds outstanding at December 31, 2022 and 2021 are as follows:
Interest Original
Revenue Bonds Rate Amount Maturity 2022 2021
2012 Refunding 3.12-5.00 $ 110,830,000 09-01-2032 $ — $ 1,195,000
2012B 2.00-5.00 79,540,000 09-01-2037 — 2,030,000
2014 3.00-5.00 190,620,000 09-01-2044 119,140,000 133,380,000
2016A 3.00-5.00 114,165,000 09-01-2045 111,560,000 114,165,000
2016B Refunding 3.25-5.00 42,545,000 09-01-2034 37,325,000 39,150,000
2016C 5.00 56,265,000 09-01-2046 56,265,000 56,265,000
2020A 3.00 17,010,000 09-01-2045 16,035,000 16,525,000
2020B 0.69-2.55 231,535,000 09-01-2037 226,125,000 230,100,000
Subtotal 566,450,000 592,810,000
Current maturities (27,500,000) (26,360,000)
Unamortized premium 35,403,768 37,183,966
Total utility system revenue bonds, excluding current maturities $ 574,353,768 $ 603,633,966
Interest on portions of the outstanding utility system revenue bonds is payable on a semiannual
basis. As of December 31, 2022 and 2021, the BPU was in compliance with all required debt
covenant ratios.
The BPU completed a defeasement of utility systems revenue bonds by placing the proceeds of
new bonds in irrevocable trusts to provide all future debt service payments on the old 2011-A,
2012-A and 2012-B Utility System Revenue Bonds. Accordingly, neither the trust account assets
nor the liability for the defeased bonds are included in the BPU’s financial statements. The amount
of outstanding advance refunding of in substance defeased debt was $0 and $155,755,000 as of
December 31, 2022 and 2021, respectively.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
50
The debt service to maturity on the outstanding BPU revenue bonds as of December 31, 2022 is as
follows:
Interest
(including
Principal accreted)
Bond year(s) ending December 31:
2023 $ 27,500,000 $ 20,484,483
2024 28,560,000 19,422,217
2025 29,275,000 18,713,426
2026 30,050,000 17,935,888
2027 30,910,000 17,073,155
2028–2032 164,460,000 71,042,801
2033–2037 122,885,000 45,478,302
2038–2042 79,255,000 25,206,225
2043–2047 53,555,000 5,384,800
$ 566,450,000 $ 240,741,297
The utility system revenue bond indebtedness requires special reserves and accounts as follows:
Account Authorized Expenditure
Debt service and reserve Paying current principal and interest on bonds
Construction Acquiring, constructing and installing capital
improvements
Improvement and emergency Financing major renewals, repairs, and replacements,
and extraordinary or unforeseen expenditures
The utility system revenue bond debt service and reserve account is held in escrow in a bank acting
as trustee for the BPU. The utility system revenue bond indentures also provide for a bond reserve
account to be held by the trustee for the future payments of principal and interest in the event that
the net revenues of the utility system are less than or equal to 130% of the maximum annual debt
service on the bonds. All amounts are reported on the accompanying statements of net position as
restricted assets.
The current indentures also require the BPU to establish utility rates and collect fees sufficient to
pay the operating, maintenance, and debt service costs of the utilities; to maintain the accounts
listed above; and to provide net operating income, before depreciation and payment-in-lieu of
taxes, of at least 120% of the maximum annual debt service due on the outstanding bonds. All of
the BPU’s utility plant facilities are pledged under the terms of the indentures.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
51
Total indebtedness also includes government loans, which represent the amounts borrowed from
Kansas Department of Health and Environment for the purpose of Water capital improvements to
be repaid in installments over 33 years ending 2054. Governmental loans also include a $4.56
million loan with the Unified Government of Wyandotte County and Kansas City, Kansas, for
improvements to the radio tower system as well as a loan with the Unified Government in 2020 for
the Leavenworth Road Improvements Project of $1.455 million.
The debt service to maturity on the outstanding BPU government loans as of December 31, 2022 is
as follows:
Interest
(including
Principal accreted)
Bond year(s) ending December 31:
2023 $ 3,226,196 $ 610,180
2024 3,858,293 583,775
2025 3,271,155 562,778
2026 3,349,236 500,923
2027 3,116,138 437,307
2028–2032 10,557,407 2,705,137
2033–2037 560,000 56,400
2038–2042 947,588 3,588
$ 28,886,013 $ 5,460,088
In August 2021, the BPU entered into a Kansas Public Water Supply loan fund agreement, for
which the amount is not to exceed $25.0 million. In August 2022, the loan was amended and
increased to $39.5 million. The projects to be funded by this loan consist of construction of
ground water storage at Argentine Pump Station, construction of a water transmission main from
90
th
and Parallel to I-435 and France Family drive, electrical improvements at the Nearman Water
Treatment Plant, Parallel Pump Station and Milan Pump Station, and replacement of deteriorated
water lines throughout the distribution system. As of December 31, 2022, the BPU has drawn
down $1.954 million of the loan.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
52
The BPU has pledged specific revenue streams to secure the repayment of certain outstanding debt
issuances. The corresponding debt issuances are for utility system revenue bonds and the purpose
of the debt is for utility improvements. The following table lists those revenues, the amount and
term of pledge remaining, the current year principal and interest on the debt, the amount of pledged
revenue recognized during the current fiscal year, and the approximate percentage of the revenue
stream that has been committed:
Pledged
Principal revenue
and interest recognized
Percentage for the for the
Amount of Term of of revenue year ended year ended
Type revenue pledged pledge commitment pledged 2022 2022
Electric and water operating
revenue $ 807,191,297 Through 2046 12.5% $ 47,985,296 $ 57,582,355
Note 7: Regulatory Assets and Regulatory Deferred Inflows
The BPU is subject to the provisions of GASB Codification Section Re10, Regulated Operations,
and has recorded assets and deferred inflows on its statements of net position resulting from the
effects of the rate-making process, which would not be recorded under U.S. generally accepted
accounting principles for nonregulated entities. Regulatory assets represent costs incurred that
have been deferred because future recovery in customer rates is probable. Deferred inflows
generally represent probable future reductions in revenue or refunds to customers. Management
regularly assesses whether regulatory assets and deferred inflows are probable of future recovery or
refund. If recovery or refund of regulatory assets or deferred inflows is not approved by the BPU
Board of Directors, which is authorized to approve rates charged to customers or is no longer
deemed probable, these regulatory assets or deferred inflows are recognized in the current period
results of operations. Additionally, these factors could result in an impairment of utility plant
assets if the cost of the assets could not be expected to be recovered in customer rates. Regulatory
assets and deferred inflows as of December 31, 2022 and 2021 are as follows:
Amortization
Ending 2022 2021
Regulatory assets:
Recovery of Quindaro Power Station Units 2040 $ 62,526,966 $ 66,205,022
Recovery fuel purchased powe
r
2022 14,781,274 2,312,998
Total regulatory assets $ 77,308,240 $ 68,518,020
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
53
A regulatory asset has been approved by the Board of Directors to recover through rates the costs
related to the Quindaro Power Station units closing. The remaining net book value was recorded as
a regulatory asset in 2020. The remaining costs of these assets will be accelerated and amortized
over a 20-year period.
The BPU has an energy adjustment rate rider (ERC). Estimated retail tariffs are set to recover
estimated fuel costs such as coal, natural gas, and purchased power. The ERC allows differences
between these estimates and actual fuel and purchased power costs to be deferred as a regulatory
asset or a deferred inflow depending on the nature of the variance between estimated and actual
costs incurred.
Note 8: Payment-in-Lieu of Taxes (PILOT) and Community Contributions
The BPU is exempt from federal and state income taxes and local property taxes because it is an
administrative agency of the Unified Government. However, the BPU is required by a Charter
Ordinance to pay a percentage of gross operating revenues to the Unified Government. The
Charter Ordinance established a range of 5.0% – 15.0%. The payment-in-lieu of tax was
established at 11.9% in 2022 and 2021, which amounted to $37,073,894 and $31,715,220,
respectively. The PILOT is billed and collected by the BPU by a supplemental rate rider.
In addition to these payments to the Unified Government, the BPU also contributes services to the
Unified Government, such as electricity, water, street lighting, fire hydrant services, traffic signals,
billing and collection of the Unified Government sewer, storm water and trash fees at no charge.
These service contributions approximated $11,897,163 and $10,039,263 or 3.55% and 3.18% of
total operating revenue, for 2022 and 2021, respectively. Expenses associated with these service
contributions are recorded in the relevant operating expense caption on the statements of revenues,
expenses and changes in net position.
Note 9: Commitments and Contingencies
Power Purchase and Sales Agreements
On December 21, 2006, the BPU entered into a Renewable Energy Purchase Agreement with
TradeWind Energy to receive 25% of the energy output of Phase 1 of the Smoky Hills Wind Farm.
This contract is a 20-year fixed price contract for 25% of the output of 100.8 MW of turbines as
well as the Renewable Energy Credits associated with the output. The wind farm, which was built
approximately 25 miles west of Salina, Kansas in Lincoln and Ellsworth Counties, began
commercial operation in January 2008. Total power purchased under this agreement was
$2,973,103 and $2,913,394 in 2022 and 2021, respectively.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
54
On November 3, 2010, the BPU entered into an agreement with Lawrence, Kansas based
Bowersock Mills and Power Company to purchase 7 MW of hydroelectric power over the next
25 years, providing additional renewable energy resources to BPU’s existing power generating
mix. Total power purchased under this agreement was $2,448,444 and $2,642,673 in 2022 and
2021, respectively.
In December 2013, the BPU completed negotiations with OwnEnergy Inc., a developer of
mid-sized wind projects, for the purchase of 25 megawatts of energy generated by wind turbines.
The wind farm is located south of Alexander, Kansas in Rush County. Construction began in
December 2013, and ties into the Southwest Power Pool (SPP) Midwest Energy transmission
system. The contract between BPU and OwnEnergy Inc. is a 20-year renewable energy Purchase
Power Agreement (PPA). The wind farm was completed in 2015 with commercial production
beginning in December 2015. Total power purchased under this agreement was $3,414,848 and
$3,390,209 in 2022 and 2021, respectively.
The BPU has contracts with the Southwestern Power Administration (“SPA”) entitling the BPU to
annually purchase 38.6 MW of hydroelectric peaking capacity. These contracts provide the BPU
with hydro allocations until July 1, 2035. The BPU counts the full SPA capacity as a firm supply
resource, reducing the need for additional capacity purchases and delaying the need for additional
firm generation or other firm purchase power agreements. The energy available from this capacity
is equal to 1,200 hours per MW of capacity per year, the scheduling of such energy being at the
BPU’s discretion (with certain minimum and maximum monthly and seasonal limitations). Total
power purchased under this agreement was $2,834,365 and $3,690,349 in 2022 and 2021,
respectively. The BPU also has an allotment of 5 MW of hydroelectric power from the Western
Area Power Administration (“WAPA”) until September 30, 2024. Total power purchased under
this agreement was $475,997 and $468,979 in 2022 and 2021, respectively.
In January 2016, the BPU completed negotiations with TradeWind Energy Inc., a renewable
energy developer, for the purchase of 200 megawatts of energy generated by wind turbines.
Construction began on the wind farm in 2016 with commercial operations beginning in April of
2017. The facility is located just south of Minneola, Kansas and ties into the Southwest Power Pool
(SPP) in the Sunflower Energy transmission system. The contract between BPU and the Cimarron
Bend Wind Project, LLC. is a 20-year renewable energy Purchase Power Agreement (PPA). Total
power purchased under this agreement was $18,137,984 and $17,723,388 in 2022 and 2021,
respectively.
In November 2016, the BPU finalized an agreement with MC Power, a solar developer, for the
purchase of a 1 megawatt alternating current solar photovoltaic facility to be located at the Kansas
City Board of Public Utilities Nearman Creek Power facility in Kansas City, Kansas. The contract
between the BPU and MCP-KCBPU, LLC is a 25-year renewable energy Purchase Power
Agreement (PPA) with commercial operations beginning in September of 2017. The project is
intended to serve as a community solar project whereas BPU customers can license panels within
the project to reduce their overall monthly electric expenses, while supporting greener initiatives.
Total power purchased under this agreement was $149,138 and $142,340 in 2022 and 2021,
respectively.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
55
The BPU has determined these purchase contracts to be excluded from the scope of GASB
Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, as these are
normal purchase contracts.
Coal Contracts
BPU purchases coal for Nearman generating stations through contracts with Western Fuels
Association (WFA) and affiliates. WFA, in turn, contracts with coal producers and railroads to
meet its coal supply and delivery commitments to the BPU. BPU is required to pay all costs
incurred by WFA in acquiring and delivering the coal as well as a management fee.
Coal delivery to Nearman is contracted between WFA and Union Pacific Railroad which is
effective until December 31, 2022. The contract contains three (3) additional periods of one (1)
year each unless a party notifies the other party in writing their intent to terminate the agreement.
The delivery cost is established from a base price and is adjusted by indices set out in the contract.
The estimated coal purchase for Nearman station is $23,000,000 annually for 2023 and 2024. Any
additional coal required will be bought through spot market.
The BPU purchased approximately 785,702 and 671,300 tons of coal for approximately
$25,341,000 and $19,400,000 for the Nearman Station in 2022 and 2021, respectively.
The BPU has determined these coal contracts to be excluded from the scope of GASB Statement
No. 53, Accounting and Financial Reporting for Derivative Instruments, as these are normal
purchase contracts.
Retirement Plan
Plan Description
The Retirement Pension Plan for the Board of Public Utilities of Kansas City, Kansas (the “Plan”)
is a contributory, single-employer defined benefit pension plan administered by the Board of
Pension Trustees of the Retirement Pension Plan of the Board of Public Utilities of Kansas City,
Kansas (“the Board”) of Pension Trustees.
The Plan is governed by Kansas State statutes, which provide for the establishment of a Board of
Pension Trustees and provides authorization for the Plan to take control and custody of all assets,
property and funds presently held, controlled and in the possession of the Plan’s Board of Pension
Trustees. The Plan was established and may be amended only by the Board of Pension Trustees.
The Board of Pension Trustees is represented equally by three management seats, appointed by the
General Manager, and three non-management seats elected by the BPU members. The Plan
membership includes all persons employed by the BPU on a regular, permanent basis.
Separate, stand-alone financial statements of the Plan can be obtained from the Pension
Administrator, in care of the Human Resources Department of the BPU, 540 Minnesota Avenue,
Kansas City, KS 66101.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
56
Benefits Provided
The primary benefits provided by the Plan are retirement benefits. However, the Plan also provides
ancillary benefits in the event of pre-retirement death, disability, or termination of employment
prior to meeting the eligibility requirements to retire. An employee of the BPU is eligible for
coverage at the time of employment as a regular, permanent BPU employee. An employee remains
a Member of the Plan as long as they continue employment with the BPU. Vesting is achieved
upon the completion of five years of service. For Tier 1 members, retirement is at age 55,
regardless of service. Benefits are calculated using the compensation for the three highest years of
service within the last 10 years of service, multiplied by the total years of service and the formula
factor of 1.80 percent, plus final average salary multiplied by the total years of service prior to
January 1, 2004 and the formula factor of 0.40 percent. Benefits vest after five years of service.
For Tier 2 members, retirement is at age 65, with five years of service or age 60, with 30 years of
service. Benefits are calculated using the compensation for the member’s entire career, multiplied
by the formula factor of 1.50 percent. Benefits vest after five years of service.
Cost of Living Adjustment (COLA)
The COLA is an automatic, simple 3% for members who retired before January 1, 1993. The
COLA is not automatic, but discretionary for members who retired on or after January 1, 1993.
The COLA can vary from 0% to 3% of the previous year’s pension as determined by the Pension
Board every year. If, on the first January 1 following benefit commencement, benefits have been
received for less than a full calendar year, the increase is a fraction of the determined increase equal
to the ratio of number of monthly benefit payments received divided by 12.
Employees Covered by Benefit Terms
The data required regarding the membership of the Plan was furnished by the Pension
Administrator of the Plan. The following table summarizes the membership of the Plan as of
December 31, 2021 and 2020, the respective measurement dates.
2021 2020
Inactive Members or Beneficiaries Currently Receiving Benefits 809 811
Disabled Members 7 7
Inactive Members Entitled To But Not Yet Receiving Benefits 22 24
Inactive Non-vested Members Entitled to a Refund of Member Contributions 2 1
Active Members 504 525
Total 1,344 1,368
Contributions
Benefit and contribution provisions are established by and may only be amended by the Pension
Board of Trustees. Contribution rates are determined annually by the Pension Board of Trustees.
The BPU contributes a fixed contribution rate, equal to that of the members, currently 8.50% of
pensionable earnings as of December 31, 2022 and 2021.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
57
For the years ended December 31, 2022 and 2021, BPU contributed $4,533,603 and $4,547,136,
respectively to the Plan.
Net Pension Liability/Asset
The total pension liability used to calculate the net pension liability/(asset) was determined by
actuarial valuations as of January 1, 2021 and 2020 and rolled forward to the respective
measurement dates as applicable. As of December 31, 2022, the Plan reported a net pension asset
of $23,267,891. As of December 31, 2021, the Plan reported a net pension liability of $361,568.
Actuarial Assumptions
The total pension liability/asset based on the January 1, 2021 and 2020 actuarial valuations was
determined using the following key actuarial assumptions for 2021 and 2020 and other inputs:
January 1, 2021
Valuation
January 1, 2020
Valuation
Price inflation
2.35 percent 2.35 percent
Salary inflation
3.1 - 6.1 percent 3.1 - 6.1 percent
Long-term rate of return, net of investment
expenses; and including inflation rate assumption
6.75 percent 6.75 percent
January 1, 2021 Valuation
Cost of living adjustment: Retired before January 1, 1993: 3.0 percent in all years. Retired
on/after January 1, 1993: 1.9 percent for 2022, 2.5 percent for 2023 and 3.0 percent for 2024 and
later.
Mortality: Pre-retirement mortality rates were based on the Pub-2010 General Employees Median
Mortality Table with generational mortality projections using Scale MP-2020. Post-retirement
mortality rates were based on the Pub-2010 General Employees Median Mortality Table with
generational mortality projections using Scale MP-2020.
The actuarial assumptions used in the 2021 valuation are based on the results of an assumption
review completed in 2021.
January 1, 2020 Valuation
Cost of living adjustment: Retired before January 1, 1993: 3.0 percent in all years. Retired
on/after January 1, 1993: 1.0 percent through 2022 and 3.0 percent for 2023 and later.
Mortality: Pre-retirement mortality rates were based on the Pub-2010 General Employees Median
Mortality Table with generational mortality projections using Scale MP-2020. Post-retirement
mortality rates were based on the Pub-2010 General Employees Median Mortality Table with
generational mortality projections using Scale MP-2020.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
58
The actuarial assumptions used in the 2020 valuation are based on the results of an assumption
review completed in 2021.
The long-term expected rate of return on pension plan investments is reviewed as part of the
regular experience study prepared for the Plan. The results of the most recent experience study
were presented in 2021. Several factors are considered in evaluating the long-term rate or return
assumption, including long-term historical data, estimates inherent in current market data, and an
analysis in which best-estimate ranges of expected future real rates of return (expected returns net
of investment expense and inflation), along with estimates of variability and correlations for each
asset class, were developed by the Plan’s investment consultant. These ranges were combined to
develop the long-term expected rate of return by weighting the expected future real rates of return
by the target asset allocation percentage and then adding expected inflation. The capital market
assumptions developed by some investment consultants are often intended for use over a 10-year
investment horizon and are not always useful in setting the long-term rate of return for funding
pension plans which covers a longer timeframe. The investment consultant for the Board of Public
Utilities, at the time the Experience Study was completed, provided capital market assumptions for
a 50-year period and those were used as part of the analysis. The long-term rate of return
assumption is intended to be a long-term assumption (30 to 50 years) and is not expected to change
absent a significant change in the asset allocation, a change in the inflation assumption, or a
fundamental change in the market that alters expected returns in future years.
The target asset allocation and best estimates of arithmetic real rates of return for each major asset
class used for the 2021 assumption review, as provided by the Plan’s investment consultant at that
time, Asset Consulting Group, are summarized in the following table:
Asset Class
Target
Allocation
Long-Term
Expected
Real Rate of
Return
Domestic Large Cap Equity 17.5 % 7.1
Domestic Small Cap Equity 17.5 8.5
International Developed Equity 17.0 8.0
Emerging Market Equity 3.0 9.1
Long/Short Equity 5.0 5.7
Core Bonds 21.0 2.6
Core Plus 5.0 2.9
Core Real Estate 7.0 6.7
Opportunistic Added Real Estate 7.0 9.7
100.0 %
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
59
Discount Rate
The discount rate used to measure the total pension liability at December 31, 2021 was 6.75%. The
discount rate used to measure the total pension liability at December 31, 2020 was 6.75%. The
projection of cash flows used to determine the discount rate assumed the plan contributions from
members and BPU will be made at the current contribution rates as determined annually by the
Pension Board in effect on the measurement date:
i. Employee contribution rate: 8.5% of annual compensation
ii. BPU contribution rate: Same as member contributions (8.5% of annual compensation)
iii. Administrative expenses for the current and future years were assumed to be .70% of the
current member’s proportionate share of covered payroll.
Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make
all projected future benefit payments of current Plan members. Therefore, the long-term expected
rate of return on Plan investments of 6.75% was applied to all periods of projected benefit
payments to determine the total pension liability, within the January 1, 2021 valuation.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
60
Changes in the Net Pension (Asset) Liability
Changes in the total pension liability, plan fiduciary net position and the net pension liability
(asset) are:
Total
Pension
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Net Pension
Liability
(Asset)
(a) - (b)
Balances at January 1, 2022
592,414,344$ 592,052,776$ 361,568$
Change s for the ye ar:
Service cost 7,850,152 - 7,850,152
Interest on total pension lia bility 38,865,663 - 38,865,663
Difference between expected and
actual experience (2,509,295) - (2,509,295)
Changes of assumptions 1,666,254 - 1,666,254
Employer contributions - 4,547,136 (4,547,136)
Employee contributions - 4,547,136 (4,547,136)
Net investment income - 61,147,813 (61,147,813)
Benefit payments, including
member refunds (33,805,491) (33,805,491) -
Administrative expenses - (739,852) 739,852
Net changes 12,067,283 35,696,742 (23,629,459)
Balances at December 31, 2022
604,481,627$ 627,749,518$ (23,267,891)$
Increases (Decreases)
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
61
Total
Pension
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Net Pension
Liability
(Asset)
(a) - (b)
Balances at January 1, 2021
531,708,609$ 538,914,431$ (7,205,822)$
Change s for the ye ar:
Service cost 7,280,467 - 7,280,467
Interest on total pe nsion liability 38,648,801 - 38,648,801
Difference between expected and
actual experience (8,333,009) - (8,333,009)
Changes of assumptions 56,495,556 - 56,495,556
Employer contributions - 4,491,136 (4,491,136)
Employee contributions - 4,491,136 (4,491,136)
Net investment income - 77,987,680 (77,987,680)
Benefit payments, including
member refunds (33,386,080) (33,386,080) -
Administrative expenses - (445,527) 445,527
Net changes 60,705,735 53,138,345 7,567,390
Balances at December 31, 2021
592,414,344$ 592,052,776$ 361,568$
Increases (Decreases)
Within the January 1, 2021 valuation, the following changes were applied to the actuarial
assumption and method:
The assumed COLA for post January 1, 1993 retirees was changed from 1% through 2022
and 3% thereafter to 1.9% for 2022, 2.5% for 2023 and 3% thereafter, for TPL purposes
only.
Within the January 1, 2020 valuation, the following changes were applied to the actuarial
assumption and method:
The assumed COLA for post January 1, 1993 retirees was changed from 1% through 2020
and 3% thereafter to 1% through 2022 and 3% thereafter, for TPL purposes only.
The inflation assumption was decreased from 2.6% to 2.35%.
The investment return assumption was decreased from 7.5% to 6.75%
The general wage growth assumption was decreased from 3.35% to 3.10%.
The covered payroll growth assumption was decreased from 3.25% to 3.00%.
The interest crediting rate assumption for contribution account balances was decreased
from 3.5% to 3.35%.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
62
The mortality assumption was changed to the Pub-2010 General Median Mortality Tables
with future mortality improvements modeled using Scale MP-2020.
The individual salary increase assumption was modified to reflect the lower general wage
increase assumption of 3.10%. In addition, the merit salary increase assumption was
changed to a service-based table.
The asset smoothing method was modified to use a closed 5-year smoothing period instead
of a closed 8-year period. The corridor was eliminated.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability (asset) of the Plan, calculated using a discount rate
of 6.75%, as well as the Plan’s net pension liability (asset) calculated using a discount rate that is
1-percentage point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate.
1% Decrease
(5.75%)
Current
Discount
Rate (6.75%)
1% Increase
(7.75%)
Net pension liability (asset) $49,960,145 ($23,267,891) ($84,281,613)
2022
The following was 2021 presented sensitivity impact to the net pension liability (asset) of the Plan,
calculated using a discount rate of 6.75%, as well as the Plan’s net pension liability (asset)
calculated using a discount rate that is 1-percentage point lower (5.75%) or 1-percentage-point
higher (7.75%) than the current rate.
1% Decrease
(5.75%)
Current
Discount
Rate (6.75%)
1% Increase
(7.75%)
Net pension liability (asset) $73,030,146 $361,568 ($60,087,961)
2021
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
63
Pension Expense
For the fiscal years ended December 31, 2022 and 2021, the BPU recognized pension expense of
($1,714,405) and $2,600,497, respectively. Annual pension expense consists of service cost,
interest and administrative expenses on pension liability less employee contributions and projected
earnings on pension plan investments. The difference between actual and expected earnings is
recorded as a deferred outflow/inflow of resources recognized in pension expense over a five-year
period.
Deferred Outflows/Inflows of Resources related to Pensions
In accordance with GASB Statement Nos. 67 and 68, the BPU recognizes differences between
actual and expected experience with regard to economic or demographic factors, changes of
assumptions about future economic or demographic factors, the difference between actual and
expected investment returns, changes in proportion, and contributions subsequent to the
measurement date as deferred outflow/inflows of resources.
As of December 31, 2022, the BPU reported deferred outflows and inflows of resources related to
pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience $ — $ 7,479,549
Changes of assumptions 35,947,768 —
Net difference between projected
and actual earnings on pension plan investments — 50,968,540
Contributions subsequent to the measurement date 4,533,603 —
Total $ 40,481,371 $ 58,448,089
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
64
As of December 31, 2021, the BPU reported deferred outflows and inflows of resources related to
pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience $ — $ 11,521,639
Changes of assumptions 55,012,598 —
Net difference between projected
and actual earnings on pension plan investments — 48,623,361
Contributions subsequent to the measurement date 4,547,136 —
Total $ 59,559,734 $ 60,145,000
The amount reported as deferred outflows of resources as of December 31, 2022, resulting from
contributions subsequent to the measurement date of $4,533,603, will reduce the net pension
liability for the year ending December 31, 2023. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension
expenses as follows:
2,106,493$
(10,501,612)
(9,693,086)
(4,412,116)
(22,500,321)$
Year Ended December 31:
2023
2024
2025
2026
Other Postemployment Benefits
Plan Description
The BPU provides certain postemployment health care and life insurance benefits to eligible
retirees and their dependents in accordance with provisions established by the BPU’s Board of
Directors. The plan is a single-employer defined-benefit healthcare plan administered by the BPU.
The BPU currently determines the eligibility, benefits provided, and changes to those provisions
applicable to eligible retirees. The OPEB plan does not issue separate financial statements.
Employees are given a 90-day window to retire with medical coverage at ages 55 and above with
seven consecutive years of service.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
65
Benefits Policy
The post retirement benefit plan is a comprehensive major medical plan with a $100 deductible per
individual or $200 per family. For individuals, the plan pays 80% of the next $12,500 of allowable
charges and 100% thereafter for the remainder of that calendar year. For families, the plan pays
80% of the next $25,000 of allowable charges and 100% thereafter for the remainder of that
calendar year. The plan has a lifetime benefit maximum of $750,000. Benefits cease at the first of
the month that the retired employee attains age 65 or death. Spouse benefits end at the first of the
month that the retired employee attains age 65, the end of the month of the retiree’s death, or on the
date of the spouse’s death. Retirees are not required to contribute toward the cost of the
postretirement benefits.
Funding Policy
The contribution requirements of plan members and the BPU are established and can be amended
by the BPU’s Board. The required contribution is based on a pay-as-you-go financing requirement.
For the years ended December 31, 2022 and 2021, the BPU paid $2,873,127 and $2,533,557,
respectively, for retirees medical. GASB Statement 75 does not require funding of the OPEB
liability, and the BPU has chosen not to fund it. The BPU funds on a cash basis as benefits are
paid. No assets have been segregated and restricted to provide for postretirement benefits nor are
any assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. A
schedule of funding progress is included as required supplementary information.
Employees Covered by Benefit Terms
As of January 1, 2022 (the actuarial valuation date), the OPEB plan membership consisted of the
following:
Number of Participants
Retirees (with medical coverage) 110
Retiree Spouses (with medical coverage) 75
Total 185
Total OPEB Liability
2022
The total OPEB liability of $43,584,221 at December 31, 2022 was measured as of December 31,
2021, and was determined by an actuarial valuation as of January 1, 2022.
The total OPEB liability in the January 1, 2022 actuarial valuation was determined using the
following actuarial assumptions:
Discount rate: 2.26% per annum based on the S&P Municipal Bond 20 Year
High Grade Rate Index
Salary increases: 2.50% per annum
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
66
Healthcare cost trend rate: Medical: 7.50% graded uniformly to 4.50% over 13 years.
Mortality rates were based on the Pub-2010 Amount Weighted Mortality Table base rates projected
generationally with scale MP-2021.
The actuarial cost method was Entry Age Normal Level Percent of Salary.
2021
The total OPEB liability of $42,856,226 at December 31, 2021 was measured as of December 31,
2021, and was determined by an actuarial valuation as of January 1, 2022.
The total OPEB liability in the January 1, 2022 actuarial valuation was determined using the
following actuarial assumptions:
Discount rate: 2.26% per annum based on the S&P Municipal Bond 20 Year
High Grade Rate Index
Salary increases: 2.50% per annum
Healthcare cost trend rate: Medical: 7.50% graded uniformly to 4.50% over 13 years.
Mortality rates were based on the Pub-2010 Amount Weighted Mortality Table base rates projected
generationally with scale MP-2021.
The actuarial cost method was Entry Age Normal Level Percent of Salary.
Changes in Total OPEB Liability
2022 2021
Balance at January 1 42,856,226$ 50,925,542$
Service costs 2,606,139 2,978,629
Interest costs 994,983 1,631,759
Experience losses (gain) - (8,065,304)
Changes of assumptions - (2,080,843)
Benefits payments (2,873,127) (2,533,557)
Net change 727,995 (8,069,316)
Balance at December 31 43,584,221$ 42,856,226$
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
67
Sensitivity of Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following represents the total OPEB liability for 2022 and 2021, calculated using the stated
healthcare cost trend assumption, as well as what the OPEB liability would be if it were calculated
using a healthcare cost trend rate that is 1 percentage-point lower or 1 percentage-point higher than
the assumed trend rate:
1% Decrease Current 1% Increase
6.5% decreasing to
3.5% over 13 years
7.5% decreasing to
4.5% over 13 years
8.5% decreasing to
5.5% over 13 years
Total OPEB Liability - 2022 $ 39,103,717 $ 43,584,221 $ 48,812,953
Total OPEB Liability - 2021 38,776,315 42,856,226 47,609,477
Healthcare Cost Trend Rates
Sensitivity of Total OPEB Liability to Changes in the Discount Rate
The following represents the total OEPB liability for 2022 and 2021, calculated using the stated
discount rate, as well as what the total OPEB liability would be if it were calculated using a
discount rate that is 1 percentage-point lower or 1 percentage-point higher than the current rate:
1% Decrease
(1.26%)
Current
Discount
Rate (2.26%)
1% Increase
(3.26%)
Total OPEB Liability-2022 $ 46,666,807 $ 43,584,221 $ 40,701,221
Total OPEB Liability-2021 45,942,601 42,856,226 39,980,855
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB
The BPU recognized OPEB expense of $1,145,080 and $2,154,346 in 2022 and 2021, respectively.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
68
The BPU recognized deferred inflows of resources related to OPEB of $9,038,998 and $11,495,040
in 2022 and 2021, respectively. See below for the sources as of December 31, 2022:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected
and actual experience $ — $ 5,641,413
Changes of assumptions — 3,397,585
Total $ — $ 9,038,998
The amounts reported as deferred inflows of resources related to OPEB will be recognized in
expense as follows:
(2,456,042)$
(2,456,042)
(2,033,267)
(1,610,500)
(483,147)
(9,038,998)$
2027
Year Ended December 31:
2023
2024
2025
2026
Risk Management
The BPU is exposed to various risks of loss related to tort claims; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
The BPU is self-insured for workers’ compensation, healthcare, certain general liability claims and
a portion of the automobile and small vehicle fleet.
The BPU is responsible for the first $750,000 of a workers’ compensation claim per employee/per
occurrence and workers’ compensation claims greater than $750,000 and up to $35,000,000 per
employee/per occurrence are fully insured. At December 31, 2022 and 2021, an asset of
$1,100,000 is within current assets-cash and cash equivalents and a liability of approximately
$1,860,000 and $1,489,000 as of December 31, 2022 and 2021, respectively, is within current
liabilities-workers’ compensation reserve in the statements of net position. Claims for worker’s
compensation in 2022 and 2021 were $763,100 and $570,100, respectively.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
69
At December 31, 2022 and 2021, an asset of $1,000,000 is within current assets-cash and cash
equivalents and a liability of approximately $620,000 and $704,000 as of December 31, 2022 and
2021, respectively, is within current liabilities-public liability in the statements of net position.
Public liability and healthcare claims paid were $11,464,000 and $12,066,000 as of December 31,
2022 and 2021, respectively.
The BPU is essentially 100% self-insured for healthcare claims and is responsible for the first
$500,000 of general liability and automobile insurance claims. In addition, any general liability or
automobile claims greater than $35,000,000 are the responsibility of the BPU. Settlements did not
exceed insurance coverage for the past three years. At December 31, 2022 and 2021, the BPU has
established a liability of approximately $2,481,000 and $2,193,000 for workers’ compensation and
public liability reserves, respectively, which is based on estimates of the amounts needed to pay
prior and current year claims. The liability is based on the requirement that a liability for claims
incurred prior to the statement of net position date be recorded if information related to such claims
is available prior to the issuance of the financial statements and the amount of loss can be
reasonably estimated. The total amount of claims and judgments is expected to become due within
one year.
Changes in the workers’ compensation and public liability reserves for 2022, 2021 and 2020 are as
follows:
2022 2021 2020
Beginning accruals $ 2,193,000 $ 1,814,000 $ 1,982,000
Additional accruals 11,752,000 12,445,000 12,632,000
Charges for claim payments (11,464,000) (12,066,000) (12,800,000)
Ending accruals $ 2,481,000 $ 2,193,000 $ 1,814,000
Environmental Compliance
The BPU is subject to substantial regulation of air emissions and control equipment, as well as
water, waste, remediation and disposal issues related to operation of its electric generating utilities
under federal, state and local environmental laws and regulations. In the last 15 years, federal,
state and local agencies have continued to issue regulations applicable to electric generating
utilities. The BPU participates in the rulemaking process, including providing comments on rules
to assist the agency in identifying areas for improvement and challenging rules, if necessary. The
BPU also continues to review and evaluate regulations and implement changes to its processes, if
necessary, to maintain compliance.
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
70
Other Legal Matters
In the normal course of business, the BPU is subject to various lawsuits, actions, proceedings,
claims and other matters asserted under laws and regulations. Management believes the amounts
provided in the financial statements, as prescribed by U.S. generally accepted accounting
principles, are adequate in light of the probable and estimable contingencies. However, there can
be no assurances that the actual amounts required to satisfy alleged liabilities from various legal
proceedings, claims and other matters, and to comply with applicable laws and regulations, will not
exceed the amounts reflected in the BPU’s financial statements. As such, costs, if any, that may be
incurred in excess of those amounts provided as of December 31, 2022 and 2021 cannot be
reasonably determined.
Note 10: Principal Customers
Electric and water charges to the BPU’s five largest retail customers expressed as a percentage of
total operating revenues for the years ended December 31, 2022 and 2021 were as follows:
2022 2021
Principal retail customers:
General Motors Corporation 3.6% 2.2%
Certainteed Corp 3.5% 3.2%
Johnson County WaterDistrict # 1 2.6% 2.1%
Univ. of Kansas Hosp. Auth. 2.3% 2.0%
Griffin Wheel Co 2.3% 1.9%
Total principal retail customers 14.3% 11.4%
Note 11: Disclosures About Fair Value of Assets and Liabilities
The BPU categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical
assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant
unobservable inputs.
The BPU has the following recurring fair value measurements:
Federal agency securities of $35,876,589 and $0 as of December 31, 2022 and 2021,
respectively, are valued using quoted prices for similar assets, quoted prices in markets that
are not active or other inputs that are observable or can be corroborated by observable
market data for substantially the full term of the assets (Level 2 inputs).
Board of Public Utilities
Notes to Financial Statements
December 31, 2022 and 2021
71
Money market funds of $5,578,398 and $28,517,638 as of December 31, 2022 and 2021,
respectively, are valued using quoted market prices (Level 1 inputs).
Note 12: Leases
The BPU leases, as a lessor, various tower and pole attachment space to various telecommunication
companies, the terms of which expire through 2031. During the years ended December 31, 2022
and 2021, the BPU recognized revenue approximately of $2,565,000 and $1,000,000 under the
agreements, respectively.
Note 13: Restatement of Prior Year’s Financial Statements
Upon the implementation of GASB No. 87, Leases, the BPU restated certain financial statement
line items on the statement of net position and the statement of revenues, expenses and changes in
net position for the year ended December 31, 2021. The adoption of the statement had no material
impact on previously reported statement of cash flows.
The following financial statement line items for fiscal year 2021 were affected by the adoption:
As Restated
As Previously
Reported
Effect of
Change
Statement of Net Position
Prepayments and other current assets $ 3,924,625 $ 1,967,758 $ 1,956,867
Lease receivables 14,897,622 — 14,897,622
Deferred inflows of resources - leases 16,733,670 — 16,733,670
Net position, end of year 518,920,084 518,799,265 120,819
Statement of Revenues, Expenses and Changes in Net Position
Other nonoperating revenues 679,899 559,080 120,819
Unrestricted net position 68,366,395 68,245,576 120,819
Board of Public Utilities
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Years Ended December 31,
(Unaudited)
Schedule 1
(Continued) 72
2022 2021 2020 2019 2018 2017 2016 2015
Total Pension Liability
Service cost 7,850,152$ 7,280,467$ 7,289,384$ 7,201,941$ 7,440,404$ 7,297,782$ 7,339,629$ 7,560,923$
Interest on total pension liability 38,865,663 38,648,801 37,017,215 38,047,652 37,460,630 36,679,579 38,033,409 36,958,326
Difference between expected and actual experience (2,509,295) (8,333,009) (2,307,726) (7,318,385) (10,311,840) (14,572,637) (9,622,386) -
Assumption changes 1,666,254 56,495,556 13,177,439 13,089,347 5,161,410 12,331,048 (21,130,167) -
Benefit payments, including member refunds (33,805,491) (33,386,080) (33,456,312) (32,627,516) (32,206,227) (31,747,866) (31,346,590) (30,832,788)
Net change in total pension liability 12,067,283 60,705,735 21,720,000 18,393,039 7,544,377 9,987,906 (16,726,105) 13,686,761
Total pension liability, beginning 592,414,344 531,708,609 509,988,609 491,595,570 484,051,193 474,063,287 490,789,392 477,102,631
Total pension liability, ending (a) 604,481,627$ 592,414,344$ 531,708,609$ 509,988,609$ 491,595,570$ 484,051,193$ 474,063,287$ 490,789,392$
Plan Fiduciary Net Position
Employer contributions 4,547,136$ 4,491,136$ 4,349,056$ 4,398,226$ 4,250,560$ 4,252,025$ 4,172,968$ 4,278,318$
Employee contributions 4,547,136 4,491,136 4,349,056 4,398,226 4,250,560 4,252,025 4,172,968 4,278,318
Net investment income (loss) 61,147,813 77,987,680 86,777,876 (12,362,654) 74,677,580 27,612,362 3,875,505 27,423,709
Benefit payments, including member refunds (33,805,491) (33,386,080) (33,456,312) (32,627,516) (32,206,227) (31,747,866) (31,346,590) (30,832,788)
Administrative expenses (739,852) (445,527) (472,986) (550,640) (461,577) (371,417) (332,625) (338,801)
Net change in plan fiduciary net position 35,696,742 53,138,345 61,546,690 (36,744,358) 50,510,896 3,997,129 (19,457,774) 4,808,756
Plan fiduciary net position, beginning 592,052,776 538,914,431 477,367,740 514,112,098 463,601,202 459,604,073 479,061,847 474,253,091
Plan fiduciary net position, ending (b) 627,749,518$ 592,052,776$ 538,914,430$ 477,367,740$ 514,112,098$ 463,601,202$ 459,604,073$ 479,061,847$
Net pension liability, ending (a) - (b) (23,267,891)$ 361,568$ (7,205,821)$ 32,620,869$ (22,516,528)$ 20,449,991$ 14,459,214$ 11,727,545$
Fiduciary net position as a percentage of the total pension liabilit
y
103.85% 99.94% 101.36% 93.60% 104.58% 95.78% 96.95% 97.61%
Covered payroll 53,495,722$ 52,836,899$ 52,494,578$ 51,909,688$ 50,272,605$ 50,070,440$ 50,400,000$ 49,091,000$
Net pension liability as a percentage of covered payroll -43.49% 0.68% -13.73% 62.84% -44.79% 40.84% 28.69% 23.89%
Note: Required schedule is intended to show 10-year trend. GASB 68 was adopted in 2015, as such, only eight years are presented herein. Additional years will be
added as they become available.
Board of Public Utilities
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Years Ended December 31,
(Unaudited)
73
Schedule 1
Changes of actuarial assumptions and methods:
In 2022, the assumed COLA for post January 1, 1993 retirees was changed from 1% through 2022 and 3% thereafter to 1.9% for 2022,
2.5% for 2023, and 3% thereafter, for TPL purposes only.
In 2021, the assumed COLA for post January 1, 1993 retirees was changed from 1% through 2020 and 3% thereafter to 1% through 2022
and 3% thereafter, for TPL purposes only.
In 2021, the inflation assumption was decreased from 2.60% to 2.35%.
In 2021, the investment return assumption was decreased from 7.5% to 6.75%.
In 2021, the general wage growth assumption was decreased from 3.35% to 3.10%.
In 2021, the covered payroll growth assumption was decreased from 3.25% to 3.00%.
In 2021, the interest crediting rate assumption for contribution account balances was decreased from 3.5% to 3.35%.
In 2021, the mortality assumption was changed to the Pub-2010 General Median Mortality Tables with future mortality improvements
modeled using Scale MP-2020.
In 2021, the individual salary increase assumption was modified to reflect the lower general wage increase assumption of 3.10%. In
addition, the merit salary increase assumption was changed to a service-based table.
In 2021, the asset smoothing method was modified to use a closed 5-year smoothing period instead of a closed 8-year period. The
corridor was eliminated.
In 2020, the assumed COLA for post January 1, 1993 retirees was changed from 1% through 2022 and 3% thereafter to 1% through 2020
and 3% thereafter, for TPL purposes only.
In 2019, the inflation assumption was decreased from 3.10% to 2.60%.
In 2019, the investment return assumption was decreased from 8.0% to 7.5%.
Board of Public Utilities
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Years Ended December 31,
(Unaudited)
74
Schedule 1
In 2019, the general wage growth assumption was decreased from 4.0% to 3.35%.
In 2019, the covered payroll growth assumption was decreased from 4.0% to 3.25%.
In 2019, the interest crediting rate assumption for contribution account balances was decreased from 4.0% to 3.5%.
In 2019, the mortality assumption was changed to the RP-2014 Blue Collar Mortality Table with future mortality improvements modeled
using Scale MP-2017.
In 2019, retirement rates were adjusted to better reflect actual experience.
In 2019, termination rates were changed from age-based, sex-distinct assumption to a service-based, unisex assumption.
In 2019, the individual salary increase assumption was modified to reflect the lower general wage increase assumption of 3.35%. In
addition, the merit salary increase assumption was adjusted to reflect higher salary increases at younger ages.
In 2019, the administration expense assumption was increased from 0.60% of pay to 0.70% of pay.
In 2019, the amortization method for the unfunded actuarial liability (UAL) was changed to a “layered” amortization approach. The
UAL as of January 1, 2019 will continue to be amortized according to the current schedule. New amortization bases will be created on
each subsequent valuation date equal to the difference between the actual and expected UAL, with payments calculated using a closed 20-
year period as a level-percent of payroll. A new amortization base will also be created when actuarial assumptions are changed or the
benefit structure is modified. An appropriate period will be determined by the Board for these events, after discussion with the actuary.
In 2018, the assumed COLA for post January 1, 1993 retirees was changed from 1% through 2022 and 3% thereafter to 1% through 2021
and 3% thereafter, for TPL purposes only.
In 2017, the assumed COLA for post January 1, 1993 retirees was changed from 1% through 2025 and 3% thereafter to 1% through 2022
and 3% thereafter for TPL purposes only.
In 2016, the assumed COLA for post January 1, 1993 retirees was changed from 1% through 2020 and 3% thereafter to 1% through 2025
and 3% thereafter for TPL purposes only.
Board of Public Utilities
Required Supplementary Information
Schedule of Employer 10 Year Contributions
December 31,
(Dollar amounts in thousands)
(Unaudited)
(Continued) 75
Schedule 2
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Actuarially determined contribution $ 6,256 $ 8,030 $ 4,084 $ 5,561 $ 6,458 $ 5,781 $ 7,263 $ 7,428 $ 7,887 $ 8,398
Actual employer contributions 4,534 4,547 4,491 4,462 4,398 4,251 4,252 4,173 4,278 4,269
Contribution deficiency (excess) $ 1,723 $ 3,483 $ (407) $ 1,099 $ 2,060 $ 1,530 $ 3,011 $ 3,255 $ 3,609 $ 4,129
Covered payroll
$ 53,337 $ 53,496 $ 52,837 $ 52,494 $ 51,910 $ 50,273 $ 50,070 $ 49,091 $ 50,128 $ 50,792
Contribution as a percentage of
covered payroll 8.50% 8.50% 8.50% 8.50% 8.47% 8.46% 8.49% 8.50% 8.53% 8.41%
Board of Public Utilities
Required Supplementary Information
Schedule of Employer 10 Year Contributions
December 31,
(Dollar amounts in thousands)
(Unaudited)
76
Schedule 2
Notes to Required Supplementary Information for Contributions
The following actuarial methods and assumptions were used to determine the actuarially determined contribution reported in the most recent actuarial
valuation (January 1, 2022):
Actuarial cost method Entry age normal cost
Amortization method Level percentage of payroll, closed,
Remaining amortization period Layered bases having 17-20 years remaining
Asset valuation method 5-year smoothed fair value
Inflation 2.35 percent
Salary increases 3.10 to 6.10 percent
Investment rate of return 6.75 percent
Cost-of-living adjustments 3.00 percent
Changes of benefits and funding tiers: In 2010, The Pension Board Trustees adopted a new plan design for members hired on or after January 1,
2010. The new plan is a career average defined benefit plan. The Pension Board Trustees increased the
member contribution rate from 5.5 percent to 8.5 percent. This also increased the BPU’s matching
contribution rate.
Board of Public Utilities
Required Supplementary Information
Schedule of Changes in Total OPEB Liability and Related Ratios
Fiscal Years Ended December 31,
(Unaudited)
77
Schedule 3
2022 2021 2020 2019 2018
Total OPEB Liability
Service cost 2,606,139$ 2,978,629$ 2,864,066$ 2,777,950$ 2,689,238$
Interest on total OPEB liability 994,983 1,631,759 1,531,224 1,677,527 1,617,127
Experience losses (gains) - (8,065,304) - (294,584) -
Changes of assumptions - (2,080,843) - (5,201,435) -
Benefit Payments/Refunds (2,873,127) (2,533,557) (3,765,029) (3,651,823) (3,825,597)
Net change in total OPEB liability 727,995 (8,069,316) 630,261 (4,692,365) 480,768
Total OPEB liability, beginning 42,856,226 50,925,542 50,295,281 54,987,646 54,506,878
Total OPEB liability, ending 43,584,221$ 42,856,226$ 50,925,542$ 50,295,281$ 54,987,646$
Covered employee payroll 44,821,400$ 43,728,195$ 48,912,628$ 47,719,637$ 48,709,400$
Total OPEB liability as a percentage of
covered employee payroll 97.24% 98.01% 104.12% 105.40% 112.89%
Notes to Schedule:
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75 to pay related benefits.
Changes of benefit terms: There were no changes of benefit terms in 2022.
Changes of benefit assumptions: There were no changes of benefit assumptions in 2022.
Changes of plan provisions, actuarial assumptions and actuarial methods: There were no changes of plan
provisions, actuarial assumptions and actuarial methods in 2022.
Changes of plan provisions, actuarial assumptions and actuarial methods in 2021:
The discount rate decreased to 2.26% from 3.10%.
The mortality improvement rates were updated to the PUB-2010 Amount Weighted
Mortality Table base rates with scale MP-2021.
The medical trend was updated to 7.50% graded uniformly to 4.50% over 13 years.
Board of Public Utilities
Required Supplementary Information
Schedule of Changes in Total OPEB Liability and Related Ratios
Fiscal Years Ended December 31,
(Unaudited)
78
Schedule 3
Changes of plan provisions, actuarial assumptions and actuarial methods in 2019:
The discount rate increased to 3.10% from 3.03%.
The mortality improvement rates were updated to use MP2019, compared to MP2017.
The medical trend was updated to follow the Getzen model after a three-year transition
period starting at 7.25% and decreasing uniformly to 6.50%.
The medical aging factors were updated to adjust for age and gender and are assumed to
follow the Yamamoto aging assumptions.
This schedule is intended to show information for 10 years. Additional years will be included as they
become available. This information is presented as of the measurement date, which is the same as each of
the years presented above.
Board of Public Utilities
Combining Statements of Net Position
December 31, 2022 and 2021
See Notes to Financial Statements (Continued) 79
Schedule 4
Electric Water Total Utility
Assets and Deferred Outflows of Resources 2022 2021 2022 2021 2022 2021
Current assets: (as restated) (as restated) (as restated)
Cash and cash equivalents $ 5,477,835 $ 25,769,100 $ 19,278,056 $ 18,568,809 $ 24,755,891 $ 44,337,909
Investments 19,808,027
—
—
—
19,808,027
—
Cash and cash equivalents – restricte
d
9,104,664 22,381,386 2,006,288 4,792,203 11,110,952 27,173,589
Investments – restricte
d
13,574,386
—
2,756,174
—
16,330,560
—
Accounts receivable – customers and other 28,529,670 23,179,367 3,925,613 3,682,510 32,455,283 26,861,877
Accounts receivable – unbille
d
13,371,654 11,474,649 2,652,575 2,736,987 16,024,229 14,211,636
Allowance for doubtful accounts (146,535) (290,026) (74,994) (35,065) (221,529) (325,091)
Inventories 27,224,825 22,006,193 3,240,019 2,639,421 30,464,844 24,645,614
Regulatory assets 14,781,274 2,312,998
—
—
14,781,274 2,312,998
Prepayments and other current assets 3,841,599 3,873,887 60,841 50,738 3,902,440 3,924,625
Total current assets 135,567,399 110,707,554 33,844,572 32,435,603 169,411,971 143,143,157
Noncurrent assets:
Property, plant, and equipment 1,497,721,959 1,446,941,596 432,622,422 423,837,332 1,930,344,381 1,870,778,928
Less accumulated depreciation (768,325,820) (739,658,404) (171,072,518) (162,847,109) (939,398,338) (902,505,513)
Plant in service, net 729,396,139 707,283,192 261,549,904 260,990,223 990,946,043 968,273,415
Construction work in progress 64,165,794 89,336,557 21,590,062 14,823,132 85,755,856 104,159,689
Capital assets, net 793,561,933 796,619,749 283,139,966 275,813,355 1,076,701,899 1,072,433,104
Restricted assets:
Cash and cash equivalents 2,623,016 9,624,250 150,000 150,000 2,773,016 9,774,250
Investments 249,000 249,000
—
—
249,000 249,000
Net pension asset 18,614,313
—
4,653,578
—
23,267,891
—
Total restricted assets 21,486,329 9,873,250 4,803,578 150,000 26,289,907 10,023,250
System development costs 609,927 496,971 90,002 65,002 699,929 561,973
Regulatory assets 62,526,966 66,205,022
—
—
62,526,966 66,205,022
Lease receivables 13,016,013 14,897,622
—
—
13,016,013 14,897,622
Total noncurrent assets 891,201,168 888,092,614 288,033,546 276,028,357 1,179,234,714 1,164,120,971
Total assets 1,026,768,567 998,800,168 321,878,118 308,463,960 1,348,646,685 1,307,264,128
Deferred outflows of resources:
Deferred loss on bond refunding 4,299,675 5,184,146 707,311 942,349 5,006,986 6,126,495
Deferred outflows - pension 32,364,027 47,626,718 8,117,344 11,933,016 40,481,371 59,559,734
Total deferred outflows of resources 36,663,702 52,810,864 8,824,655 12,875,365 45,488,357 65,686,229
Total assets and deferred outflows of resources $ 1,063,432,269 $ 1,051,611,032 $ 330,702,773 $ 321,339,325 $ 1,394,135,042 $ 1,372,950,357
Board of Public Utilities
Combining Statements of Net Position
December 31, 2022 and 2021
See Notes to Financial Statements 80
Schedule 4
Liabilities, De ferre d Inflows of Electric Water Total Utility
Resources, and Net Position 2022 2021 2022 2021 2022 2021
Lia bilities:
(as restated) (as restated) (as restated)
Curre nt liabilities :
Current maturities of revenue bonds $ 20,339,000 $ 19,228,900 $ 7,161,000 $ 7,131,100 $ 27,500,000 $ 26,360,000
Current maturities of government loans 233,165 226,546 2,993,031 2,899,576 3,226,196 3,126,122
Accrued interest 6,472,294 6,784,705 355,867 423,727 6,828,161 7,208,432
Customer deposits 6,003,034 5,888,042 1,313,535 1,291,159 7,316,569 7,179,201
Accounts payable 25,949,694 23,427,073 5,765,439 2,488,449 31,715,133 25,915,522
Payroll and payroll taxes 592,446 1,073,291 1,784,335 1,705,707 2,376,781 2,778,998
Accrued claims payable 794,053 1,034,053
—
—
794,053 1,034,053
Workers compensation reserve 1,410,198 1,115,803 449,807 373,578 1,860,005 1,489,381
Public liability reserve 430,412 522,943 190,134 180,716 620,546 703,659
Other ac c rue d lia bilities 8,242,518 7,236,052 64,756 53,738 8,307,274 7,289,790
Payment-in-lieu of taxes 2,606,121 2,098,276 435,504 412,013 3,041,625 2,510,289
Construction contract retainage payable 33,582 195,178 225,185 45,616 258,767 240,794
Interdepartmental balances (37,597,507) (34,231,247) 37,597,507 34,231,247
—
—
Total current liabilities 35,509,010 34,599,615 58,336,100 51,236,626 93,845,110 85,836,241
Nonc urre nt liabilities:
Long-term debt – revenue bonds 529,203,680 551,189,603 45,150,088 52,444,363 574,353,768 603,633,966
Government loans 2,284,008 2,517,174 21,375,809 22,414,882 23,659,817 24,932,056
Total long-term debt 531,487,688 553,706,777 66,525,897 74,859,245 598,013,585 628,566,022
Total other postemployment benefit liabilit
y
34,867,377 34,284,981 8,716,844 8,571,245 43,584,221 42,856,226
Reserve for compensated absences 6,474,601 6,269,131 967,469 936,767 7,442,070 7,205,898
Net pension liability
—
289,254
—
72,314
—
361,568
Noncurrent liabilities 572,829,666 594,550,143 76,210,210 84,439,571 649,039,876 678,989,714
Total liabilities 608,338,676 629,149,758 134,546,310 135,676,197 742,884,986 764,825,955
Deferred inflows of resources:
Deferred gain on bond refundings 580,536 652,483 157,803 178,125 738,339 830,608
Recovery fuel purchased power
—
—
—
—
—
—
Deferred Inflows - Pension 46,758,471 48,116,000 11,689,618 12,029,000 58,448,089 60,145,000
Deferred Inflows - OPEB 7,231,198 9,196,032 1,807,800 2,299,008 9,038,998 11,495,040
Deferred Inflows - Leases 14,754,757 16,733,669
—
—
14,754,757 16,733,669
Total deferred inflows of resources 69,324,962 74,698,184 13,655,221 14,506,133 82,980,183 89,204,317
Net position:
Net investment in capital assets 244,227,980 236,317,259 206,784,362 191,642,042 451,012,342 427,959,301
Restricted - debt service 18,906,015 18,723,344 3,818,928 3,871,044 22,724,943 22,594,388
Restricted - net pension asset 18,614,313
—
4,653,578
—
23,267,891
—
Unrestricte
d
104,020,323 92,722,487 (32,755,626) (24,356,091) 71,264,697 68,366,396
Total net position 385,768,631 347,763,090 182,501,242 171,156,995 568,269,873 518,920,085
Total liabilities, deferred inflows of resources & net position $ 1,063,432,269 $ 1,051,611,032 $ 330,702,773 $ 321,339,325 $ 1,394,135,042 $ 1,372,950,357
Board of Public Utilities
Combining Statements of Revenues, Expenses and Change in Net Position
Years Ended December 31, 2022 and 2021
See Notes to Financial Statements 81
Schedule 5
Electric Water Total Utility
2022 2021 2022 2021 2022 2021
Operating revenues:
(as restated) (as restated) (as restated)
Residential $ 85,641,891 $ 74,259,513 $ 24,749,255 $ 24,577,516 $ 110,391,146 $ 98,837,029
Commercial 115,324,995 93,894,764 11,642,371 10,975,076 126,967,366 104,869,840
Industrial 51,528,923 39,501,911 6,204,262 5,711,408 57,733,185 45,213,319
Othe
r
35,736,849 62,152,399 4,708,835 4,264,119 40,445,684 66,416,518
Energy rate component recover
y
12,468,276 2,312,998
—
—
12,468,276 2,312,998
Payment-in-lieu of taxes 31,554,468 26,316,288 5,519,426 5,398,932 37,073,894 31,715,220
Total operating revenues 332,255,402 298,437,873 52,824,149 50,927,051 385,079,551 349,364,924
Operating expenses:
Fuel 55,754,914 47,845,256
—
—
55,754,914 47,845,256
Purchased powe
r
67,452,166 58,012,729
—
—
67,452,166 58,012,729
Production 36,780,229 34,296,391 5,662,278 5,694,347 42,442,507 39,990,738
Transmission and distribution 31,442,950 31,660,162 14,802,057 14,634,679 46,245,007 46,294,841
General and administrative 19,759,749 22,148,340 6,869,273 7,574,573 26,629,022 29,722,913
Depreciation and amortization 32,941,288 30,685,559 8,311,849 8,371,034 41,253,137 39,056,593
Total operating expenses 244,131,296 224,648,437 35,645,457 36,274,633 279,776,753 260,923,070
Operating income 88,124,106 73,789,436 17,178,692 14,652,418 105,302,798 88,441,854
Nonoperating revenues (expense):
Interest expense (20,135,886) (21,217,800) (1,893,403) (2,295,427) (22,029,289) (23,513,227)
Payment-in-lieu of taxes (31,554,468) (26,316,288) (5,519,426) (5,398,932) (37,073,894) (31,715,220)
Othe
r
1,571,789 631,225 216,073 48,674 1,787,862 679,899
Total nonoperating expenses, net (50,118,565) (46,902,863) (7,196,756) (7,645,685) (57,315,321) (54,548,548)
Income before contributions
and transfers 38,005,541 26,886,573 9,981,936 7,006,733 47,987,477 33,893,306
Contributions and transfers:
Contributions from developers and others
—
—
1,362,312 952,442 1,362,312 952,442
Change in net position 38,005,541 26,886,573 11,344,248 7,959,175 49,349,789 34,845,748
Net Position, beginning of year, as restated 347,763,090 320,876,517 171,156,994 163,197,820 518,920,084 484,074,337
Net Position, end of year $ 385,768,631 $ 347,763,090 $ 182,501,242 $ 171,156,995 $ 568,269,873 $ 518,920,085
Statistical Section
(Unaudited)
This part of the annual comprehensive financial report presents detailed information as a
context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the utility’s overall
financial health.
Contents Page
Financial Trends 83
These schedules contain trend information to help the reader understand
how the utility’s financial performance and well-being have changed over
time.
Revenue Capacity 85
These schedules contain information to help the reader assess the utility’s
most significant local revenue source.
Debt Capacity 87
These schedules present information to help the reader assess the affordability
of the utility’s current levels of outstanding debt and the utility’s ability to
issue additional debt in the future.
Demographic and Economic Information 90
These schedules offer demographic and economic indicators to help the
reader understand how the information in the utility’s financial activities
takes place.
Operating Information 95
These schedules contain service and infrastructure data to help the readers
understand how the information in the utility’s financial report relates to
the services the utility provides and the activities it performs.
Financial Trends
Board of Public Utilities
83
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Net Investment in Capital As s ets:
Capital assets, net of depreciation 840,462,907$ 866,886,249$ 937,144,580$ 1,056,866,885$ 1,085,876,104$ 1,106,310,690$ 1,128,250,318$ 1,069,848,798$ 1,072,433,104$ 1,076,701,900$
Bonds and notes payable:
Principal, long term (448,634,819) (467,692,007) (523,972,467) (611,647,461) (645,044,993) (640,847,083) (635,790,263) (620,231,173) (595,110,716) (572,831,752)
Government Loans (25,897,005) (30,415,148) (31,193,378) (31,425,644) (32,076,338) (31,553,635) (31,086,167) (28,058,177) (24,932,056) (23,659,817)
Capital Leases (690,070) (854,126) (2,261,192) (1,003,499) - - - - - -
Principal, current (19,030,000) (18,230,000) (19,340,000) (19,995,000) (20,735,000) (23,885,000) (24,700,000) (25,395,000) (26,360,000) (27,500,000)
Government Loans, current (1,688,935) (1,748,714) (2,081,722) (2,650,896) (2,734,035) (2,821,191) (2,935,102) (3,372,052) (3,126,122) (3,226,196)
Capital Leases, current (321,746) (600,093) (1,551,182) (1,257,694) (1,003,499) - - - - -
Retainage Liability - - - (17,645,683) (1,020,187) (1,949,083) (1,753,890) (1,346,228) (240,796) (258,767)
Capital Assets in Accounts Payable (2,481,673)
Deferred Outflow of Resources 7,012,191 13,379,768 12,226,051 14,478,732 12,990,591 11,502,447 10,014,303 7,246,003 6,126,495 5,006,986
Deferred Inflow of Resources
(922,878) (830,608) (738,339)
Total Net Investment in Capital As sets:
351,212,523$ 360,725,929$ 368,970,690$ 385,719,740$ 396,252,643$ 416,757,145$ 441,999,199$ 397,769,293$ 427,959,301$ 451,012,342$
Restricted Net Position (A)
Bond covenant requirements 46,162,140$ 135,307,603$ 53,414,286$ 140,494,752$ 84,472,520$ 62,681,627$ 39,646,700$ 33,880,894$ 31,117,638$ 24,246,959$
Bond proceeds designated for project construct ion (B) 25,458,437 (109,205,755) (31,487,584) (117,521,257) (60,256,043) (37,436,271) (14,660,410) (11,542,992) (8,523,250) (1,522,016)
Bond principal unspent (25,458,437) - - - - -
Funds segregated under City Ordinance due to 3,612,072 3,796,842 4,103,492 4,118,734 5,449,008 6,733,792 6,965,610 7,351,651 7,179,201 7,316,569
Liability for customer deposits (3,612,072) (3,796,842) (4,103,492) (4,194,474) (5,449,008) (6,733,792) (6,965,610) (7,351,651) (7,179,201) (7,316,569)
Net Pension Asset
- - - - - 22,516,528
- 7,205,822 - 23,267,891
Total Restricted Net Position 46,162,140$ 26,101,848$ 21,926,702$ 22,897,755$ 24,216,477$ 47,761,884$ 24,986,290$ 29,543,724$ 22,594,388$ 45,992,834$
Unrestricted Net Position
Other designated funds
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Reserve funds
- - - - - - - - - -
Funds held for future improvements
- - - - - - - - - -
Project construction accounts
- - - - - - - - - -
Unrestricted - Other 18,906,563 37,943,638 53,521,776 36,556,998 38,174,218 (11,935,046) 1,786,661 56,761,319 68,366,395 71,264,697
Total Unrestricted Net Position 18,906,563$ 37,943,638$ 53,521,776$ 36,556,998$ 38,174,218$ (11,935,046)$ 1,786,661$ 56,761,319$ 68,366,395$ 71,264,697$
Total Net Position 416,281,226$ 424,771,415$ 444,419,168$ 445,174,493$ 458,643,338$ 452,583,983$ 468,772,150$ 484,074,336$ 518,920,084$ 568,269,873$
Footnote A
Per Question 95 of "Guide to Implementation of GASB Statement 34 on Basic Financial Statements - and Management's Discussion and Analy sis - For State and Local Governments" (Imp lementation Guide), Restricted Net Position
should be rep ort ed when const raint s p laced on net asset use are either:
a. Externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments.
b. Imposed by law through constitutional provisions or enabling legislation.
The basic concep t is that restrictions are not unilat erally established by the rep orting government itself, and cannot be removed without the consent of those imp osing the rest rictions or through formal due p rocess.
Footnote B
Per the Implementation Guide, if there are significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds should not be included in the "calculation of net investment in capital assets. The
unspent portion of the debt would be included in the calculation of Net Position restricted for capital projects.
Amounts for 2021 were restated for the adoption of GASB 87. Amounts prior to 2021 were not restated.
Net Position By Component
Las t Ten Fis cal Years
Board of Public Utilities
84
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Operating Revenues
Residentia
l
86,654,645$ 89,816,917$ 86,380,759$ 89,793,663$ 96,264,382$ 106,047,470$ 99,988,671$ 99,892,366$ 98,837,029$ 110,391,146$
Commercia
l
99,649,009 104,306,455 101,468,567 101,480,393 113,608,013 118,435,681 112,966,497 107,334,998 104,869,840 126,967,366
Industria
l
44,178,102 47,842,971 50,923,573 50,595,037 54,653,921 57,246,465 55,539,127 52,532,940 45,213,319 57,733,185
Othe
r
28,305,763 43,412,193 35,805,009 28,665,489 20,278,405 38,572,604 34,554,724 25,444,107 66,416,519 40,445,684
Deferred Energy Rate Component 1,296,801 (5,129,895) (2,112,487) 171,983 (171,983) - - - 2,312,998 12,468,276
Payment-in-lieu of taxes 27,333,943 31,291,744 30,658,851 30,336,724 32,673,555 35,490,480 34,116,534 32,687,316 31,715,220 37,073,894
Total Operating Revenues 287,418,263 311,540,385 303,124,272 301,043,289 317,306,293 355,792,700 337,165,553 317,891,727 349,364,925 385,079,551
Op erat ing Exp enses
Production (1) 122,778,881 139,651,369 118,860,432 127,789,644 135,704,266 146,034,208 135,534,744 129,396,973 145,848,723 165,649,587
Transmission & Distribution 42,336,766
41,865,301 47,304,341 47,459,564 45,780,972 48,593,280 52,260,989 45,129,256 46,294,841 46,245,007
General and Administrative 31,747,806
34,179,058 35,096,181 34,997,762 32,584,960 24,375,263 34,962,802 31,199,100 29,722,913 26,629,022
Depreciation & Amortization 33,613,655
32,939,640 47,538,375 36,436,756 31,608,943 36,110,255 35,835,585 37,473,399 39,056,593 41,253,137
Total Operating Expense 230,477,108 248,635,368 248,799,329 246,683,726 245,679,141 255,113,006 258,594,120 243,198,728 260,923,070 279,776,753
Op erat ing Income 56,941,155 62,905,017
54,324,943 54,359,563 71,627,152 100,679,694 78,571,433 74,692,999 88,441,855 105,302,798
Interest Income/(Expense) (2) (19,509,494) (23,329,806) (23,725,356) (23,497,562) (25,705,028) (26,484,517) (28,593,656) (27,778,968) (22,833,328) (20,241,428)
Payment-in-lieu of taxes (27,333,943) (31,291,744) (30,658,851) (30,336,724) (32,673,555) (35,490,480) (34,116,534) (32,687,316) (31,715,220) (37,073,894)
Nonoperating Income/(Exp ense) (46,843,437) (54,621,550) (54,384,206) (53,834,286) (58,378,583) (61,974,997) (62,710,190) (60,466,284) (54,548,548) (57,315,322)
Income/Loss 10,097,718 8,283,467 (59,263) 525,277 13,248,569 38,704,697 15,861,243 14,226,715 33,893,307 47,987,476
Contributions 234,557 206,722 951,950 230,046 220,273 - 326,924
1,075,471 952,442 1,362,312
Change In Net Position 10,332,275$ 8,490,189$ 892,687$ 755,323$ 13,468,842$ 38,704,697$ 16,188,167$ 15,302,186$ 34,845,749$ 49,349,788$
Footnotes:
(1) Includes fuel, purchased power and production.
(2) Includes other non operating income.
Combined Operating Statements
Las t Ten Fis cal Years
Amounts for 2021 were restated for the adoption of GASB 87. Amounts prior to 2021 were not restated.
Revenue Capacity
Board of Public Utilities
85
Dollars /$'s (Kwh) Cus tomers
Average
kWh
Average Monthly
kWh
Average
Sales /$'s Dollars/$'s (Kwh) Customers
Average
kWh
Average Monthly
kWh
Average
Sales /$'s
2013 62,720,564$ 570,101,207 56,607 10,071 839 1,108.00$ 88,739,827$ 974,198,305 6,867 141,867 11,822 12,922.65$
2014 66,175,299$ 570,452,010 57,104 9,990 832 1,158.86$ 93,289,110$ 972,781,805 6,897 141,044 11,754 13,526.04$
2015 62,913,435$ 553,722,235 57,138 9,691 808 1,101.08$ 90,640,767$ 971,810,982 6,946 139,909 11,659 13,049.35$
2016 65,823,214$ 578,784,449 57,952 9,987 832 1,135.82$ 90,335,199$ 976,063,357 6,836 142,783 11,899 13,214.63$
2017 72,054,974$ 565,191,151 58,432 9,673 806 1,233.14$ 102,217,692$ 963,303,327 6,826 141,123 11,760 14,974.76$
2018 81,811,709$ 615,850,423 58,556 10,517 876 1,397.15$ 106,882,111$ 1,031,359,796 6,837 150,850 12,571 15,632.90$
2019 75,952,160$ 585,778,805 58,907 9,944 829 1,289.36$ 101,781,643$ 964,951,084 6,799 141,925 11,827 14,970.09$
2020 75,024,142$ 582,140,237 59,493 9,785 815 1,261.06$ 96,258,037$ 907,606,621 6,833 132,827 11,069 14,087.23$
2021 74,240,513$
598,542,538 59,786 10,011 834 1,241.77$ 93,894,764$ 958,610,707 6,901 138,909 11,576 13,605.96$
2022 85,641,891$ 602,404,017 60,117 10,021 835 1,424.59$ 115,324,995$ 1,001,706,441 6,943 144,276 12,023 16,610.25$
Dollars /$'s (Kwh) Cus tomers
Average
kWh
Average Monthly
kWh
Average
Sales /$'s Dollars/$'s (Kwh) Customers
Average
kWh
Average Monthly
kWh
Average
Sales /$'s
2013 39,454,295$ 539,561,698 90 5,995,130 499,594 438,381.06$ 21,028,399$ 264,080,917 203 1,300,891 108,408 103,588.17$
2014 42,828,672$ 554,090,099 90 6,156,557 513,046 475,874.13$ 34,251,771$ 397,969,989 199 1,999,849 166,654 172,119.45$
2015 45,014,967$ 622,671,779 88 7,075,816 589,651 511,533.72$ 21,934,068$ 352,047,700 195 1,805,373 150,448 112,482.40$
2016 44,967,833$ 599,924,592 87 6,895,685 574,640 516,871.64$ 17,322,688$ 355,559,247 197 1,804,869 150,406 87,932.43$
2017 48,680,080$ 558,582,767 83 6,729,913 560,826 586,506.99$ 17,131,916$ 265,561,130 175 1,517,492 126,458 97,896.66$
2018 51,385,553$ 594,719,707 83 7,165,298 597,108 619,103.05$ 26,472,362$ 432,377,270 178 2,429,086 202,424 148,721.13$
2019 49,601,656$
569,703,684 84 6,782,187 565,182 590,495.90$ 25,071,583$ 496,463,564 165 3,008,870 250,739 151,948.99$
2020 46,214,139$ 513,639,581 84 6,114,757 509,563 550,168.32$ 21,282,792$ 416,611,395 177 2,353,737 196,145 120,241.76$
2021 39,501,911$ 467,110,055 83 5,627,832 468,986 475,926.64$ 45,483,852$ 394,880,324 168 2,350,478 195,873 270,737.21$
2022 51,528,923$ 539,367,635 82 6,577,654 548,138 628,401.50$ 28,792,457$ 399,715,268 165 2,422,517 201,876 174,499.74$
*Other includes Schools, Wholesale Sales, Highway Lighting and Public Authorities
Dollars /$'s (Kwh)
Average
kWh
Average Monthly
kWh
Average
Sales /$'s
2013 211,943,085$ 2,347,942,127 63,767 36,821 3,068 3,324
2014 236,544,852$ 2,495,293,903 64,290 38,813 3,234 3,679
2015 220,503,237$ 2,500,252,696 64,367 38,844 3,237 3,426
2016 218,448,934$ 2,510,331,645 65,072 38,578 3,215 3,357
2017 240,084,662$ 2,352,638,375 65,516 35,909 2,992 3,665
2018 266,551,735$ 2,674,307,196 65,654 40,733 3,394 4,060
2019 252,407,042$ 2,616,897,137 65,955 39,677 3,306 3,827
2020 238,779,110$ 2,419,997,834 66,587 36,343 3,029 3,586
2021 253,121,040$ 2,419,143,624 66,938 36,140 3,012 3,781
2022 281,288,266$ 2,543,193,361 67,307 37,785 3,149 4,179
LAST TEN FISCAL YEARS
Total
ELECTRIC UTILITY SYSTEMS SALES
Cus to mers
Indus trial
Commercial
Other *
Residential
0%
20%
40%
60%
80%
100%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
29%
28%
28%
30%
30%
30%
30%
31%
29%
30%
42%
39%
41%
41%
43%
40%
40%
40%
37%
41%
19%
18%
20%
21%
20%
19%
20%
19%
16%
18%
10%
14%
10%
8%
7%
10%
10%
9%
18%
10%
Percentage of Electric Utility Sales
(2013-2022)
Residential Commercial Industrial Other
0
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
3,000,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
KWH by Class
(2013-2022)
RES COM M IND OTHER
Board of Public Utilities
86
Fis cal
Ye ar
Gal l ons
Pumped
Gallons
Sold
Operating
Revenue
Average Number of
Customers
Average Revenue
Per Customer
2013 11,239,380,000 6,217,618,000 $ 43,245,833 49,927 $866.18
2014 10,708,060,000 6,240,941,000 $ 43,714,822 50,384 $867.63
2015 10,335,230,000 6,377,958,000 $ 44,451,047 51,060 $870.56
2016 10,621,330,000 6,473,999,000 $ 44,588,234 51,232 $870.32
2017 10,446,880,000 6,405,780,000 $ 46,063,465 51,683 $891.27
2018 10,935,800,000 6,917,117,000 $ 46,190,960 51,923 $889.60
2019 11,157,640,000 6,738,982,000 $ 45,528,747 52,484 $867.48
2020 10,731,940,000 6,668,798,000 $ 47,016,561 53,034 $886.54
2021 10,655,090,000 5,975,827,000 $ 45,528,120 53,528 $850.55
2022 11,183,920,000 6,222,138,000 $ 47,304,722 53,695 $880.99
b
Wate r Sales
Las t Ten Fis cal Years
NOTE:
Gallons sold excludes internal BPU department use and water services provided to the Unified Government of Wyandotte County/Kansas
City, Kansas.
$830.00
$840.00
$850.00
$860.00
$870.00
$880.00
$890.00
$900.00
Average Annual Revenue Per Customer
Debt Capacity
Board of Public Utilities
87
Fiscal
Ye ar
Gross Revenue
(1)
Operating
Ex pe n s e s
(2)
Current
Ye ar Net
Revenue
Available for
Debt Service
Maxi mum
Outs tanding
Annual
Debt S ervice
(3)
Principal
(3)
Interes t
(3)
Total
(3)
Coverage
(4)
Percentage of
Personal Income
(5)
Per Capita
(5)
2013 $ 287,771,566 $ 196,863,453 $ 90,908,113 $ 44,144,619 490,350,940 264,673,442 755,024,382 2.06 6.6% $ 3,241
2014 $ 311,682,145 $ 215,695,728 $ 95,986,417 $ 49,344,896 580,178,862 348,063,141 928,242,003 1.94 9.1% $ 3,873
2015 $ 304,013,043 $ 201,260,954 $ 102,752,089 $ 50,117,164 563,060,100 322,942,821 886,002,921 2.03 9.3% $ 3,735
2016 $ 300,906,787 $ 210,246,970 $ 90,659,817 $ 58,791,060 714,361,539 463,204,520 1,177,566,059 1.57 15.3% $ 4,763
2017 $ 319,335,382 $ 214,070,198 $ 105,265,184 $ 58,791,060 695,100,373 431,129,444 1,126,229,817 1.78 14.4% $ 4,609
2018 $ 358,352,708 $ 219,002,751 $ 139,349,957 $ 58,791,060 670,929,825 398,585,911 1,069,515,736 2.36 13.5% $ 4,455
2019 $ 339,997,594 $ 222,758,535 $ 117,239,059 $ 58,864,282 649,691,269 367,453,580 1,017,144,849 2.04 12.6% $ 4,287
2020 $ 318,032,730 $ 205,725,330 $ 112,307,400 $ 52,293,942 649,635,229 289,966,738 939,601,967 2.15 12.1% $ 4,167
2021 $ 347,712,960 $ 219,553,479 $ 128,159,481 $ 52,206,664 645,868,177 270,382,978 916,251,155 2.45 10.4% $ 3,888
2022 $ 374,524,978 $ 226,055,340 $ 148,469,638 $ 52,424,285 630,882,055 250,342,691 881,224,746 2.83 9.2% $ 3,793
(4) Current Year Net Revenue Available for Debt Service divided by Maximum Outstanding Annual Debt Service
(5) Population and personal income data can be found in the Deomographic Schedule.
Utility System Revenue Bonded Indebtedness
Las t Ten Fis cal Years
(1) Total operating revenues, interest on investments, other interest and income (excluding Construction Fund) and other.
(2) Total operating expenses exclusive of depreciation and amortization.
(3) The maximum outstanding annual debt service and debt service includes the payments required for the government loans.
NOTE:
The most restrictive bond ordinance provides for historical net revenue coverage at 120 percent of the Maximum Outstanding Annual Debt Service.
Debt S ervice
Board of Public Utilities
88
Percentage
Fiscal Revenue Capital Revolving Total of Personal Per
Year Bonds Leases Loan Debt
(1)
Income
(2)
Capita
(2)
2013 493,123,256 1,011,816 27,585,940 521,721,012 6.6% 3,241$
2014 594,842,762 1,454,219 32,448,862 628,745,843 9.1% 3,873$
2015 574,800,051 3,812,374 33,275,100 611,887,525 9.3% 3,735$
2016 749,163,718 2,261,193 34,076,540 785,501,451 15.3% 4,763$
2017 726,036,036 1,003,499 34,810,371 761,849,906 14.4% 4,609$
2018 702,168,354 - 34,374,826 736,543,180 13.5% 4,455$
2019 675,150,673 - 34,021,269 709,171,942 12.6% 4,287$
2020 657,169,165 - 31,430,229 688,599,394 12.1% 4,167$
2021 629,993,966 - 28,058,178 658,052,144 10.4% 3,888$
2022 601,853,768 - 26,886,013 628,739,781 9.2% 3,793$
(1) Details regarding outstanding debt can be found in the notes to the financial statements.
(2) Population and personal income data can be found in the Demographic Schedule.
UNIFIED GOVERNMENT OF WYANDOTTE COUNTY / KANSAS CITY, KANSAS
RATIOS OF OUTSTANDING DEBT
Last Ten Fiscal Years
Board of Public Utilities
89
Principal Interest Total Customers Debt / Customer
2013 12,990,212 17,556,873 30,547,085 63,767 479
2014 6,006,202 13,967,449 19,973,651 64,290 311
2015 13,374,647 23,175,436 36,550,083 64,367 568
2016 13,132,257 21,674,172 34,806,429 65,072 535
2017 15,109,395 27,432,979 42,542,374 65,516 649
2018 15,668,083 28,121,516 43,789,600 65,654 667
2019 18,633,362 27,551,597 46,184,963 65,955 700
2020 19,194,875 26,699,303 45,894,183 66,587 689
2021 19,160,972 21,280,549 40,441,521 66,938 604
2022 19,455,446 20,448,297 39,903,743 67,307 593
Total 152,725,450 227,908,171 380,633,631 65,545 580
Principal Interest Total Customers Debt / Customer
2013 5,135,018 5,430,078 10,565,096 49,927 212
2014 3,553,934 4,034,112 7,588,046 50,384 151
2015 6,528,435 5,080,064 11,608,499 51,060 227
2016 7,183,067 4,648,256 11,831,323 51,232 231
2017 7,536,501 4,645,095 12,181,596 51,683 236
2018 7,800,952 4,419,018 12,219,971 51,923 235
2019 8,153,737 4,105,635 12,259,372 52,484 234
2020 8,440,227 3,790,867 12,231,094 53,034 231
2021 9,606,080 2,246,340 11,852,421 53,528 221
2022 10,030,676 1,879,003 11,909,679 53,695 222
Total 73,968,628 40,278,469 114,247,097 51,895 220
Principal Interest Total Customers Debt / Customer
2013 18,125,230 22,986,951 41,112,181 113,694 362
2014 9,560,136 18,001,561 27,561,697 114,674 240
2015 19,903,082 28,255,500 48,158,582 115,427 417
2016 20,315,324 26,322,428 46,637,752 116,304 401
2017 22,645,896 32,078,074 54,723,970 117,199 467
2018 23,469,036 32,540,535 56,009,570 117,577 476
2019 26,787,099 31,657,231 58,444,335 118,439 493
2020 27,635,102 30,490,170 58,125,277 119,621 486
2021 28,767,052 23,526,890 52,293,942 120,466 434
2022 29,486,122 22,327,300 51,813,422 121,002 428
Total 226,694,078 268,186,640 494,880,728 117,440 421
Year
Total Combined
Debt per Customer
Las t Ten Fis cal Years
Year
Total Electric
Year
Total Water
Demographic and Economic
Information
Board of Public Utilities
90
Maxi m u m
Fiscal Purchase Power Market Net
Year
Generated Agreement Purchases/(Sales) Total Load System Peak Capacity
2013 2,252,961 218,782 (121,528) 2,350,215 454 747
2014 2,661,052 214,332 (464,931) 2,410,453 459 728
2015 1,767,688 257,821 382,733 2,408,242 485 718
2016 954,458 360,986 1,116,577 2,432,021 480 718
2017 1,164,228 1,083,830 104,101 2,352,158 494 726
2018 1,350,390 1,224,246 (39,637) 2,534,999 496 726
2019 1,478,032 1,292,993 (363,824) 2,407,201 483 580
2020 1,444,815 1,295,707 (467,177) 2,273,346 443 580
2021 1,644,248 1,084,048 (414,118) 2,314,178 464 588
2022 1,546,652 1,204,501 (290,981) 2,460,173 485 822
NOTES:
• Generated amounts include BPU's owned generating assets less system usage.
• Starting in 2013, BPU's portion of Dogwood's generation is included in the generated amounts.
• Purchase Power Agreements (PPA) represent renewable energy generated outside BPU’s
service territory and sold directly through the Southwest Power Pool.
• Total load is the amount of power supplied to BPU’s retail and borderline customers.
b
Electric Load Statistics in Megawatts
Last Ten Fiscal Years
0
500,000
1,000, 000
1,500, 000
2,000, 000
2,500, 000
3,000, 000
Generated & Purchase Power Agreement
Generated Agreement
Board of Public Utilities
91
2013 Revenue 2014 Revenue
General Motor's (Auto Production) 9,270,426$ General Motor's (Auto Production) 11,111,432$
Griffin Wheel (Railroad Wheels) 5,630,110$ Griffin Wheel (Railroad Wheels) 6,616,049$
Owens Corning Fiberglass (Insulation) 5,399,261$ Owens Corning Fiberglas s (Insulation) 5,787,124$
WaterOne of Johnson County (Water Utility) 5,058,926$ WaterOne of Johnson County (W ater Utility) 5,086,239$
Univ. of Kansas Hospital Authority (Hospital) 4,338,344$ Univ. of Kansas Hospital Authority (Hospital) 4,582,043$
CertainTeed Corp. (Insulation) 4,070,531$ CertainTeed Corp. (Insulation) 4,168,566$
Univ. of Kansas Medical Center (Hospital) 3,933,091$ Univ. of Kansas Medical Center (Hospital) 4,128,363$
Procter & Gamble Co. (Cleaning Products) 3,900,600$ Pro cter & Gamble Co. (Cleaning Products ) 3,581,800$
Magellan Pipeline Company (Petroleum Pipeline) 2,018,430$ Magellan Pipeline Company (Petroleum Pipeline) 2,277,962$
Sara Lee Foods Corporation (Packaged Foods) 1,958,357$ Keebler Company (Food Manufacturer) 2,088,604$
2015
Revenue 2016 Revenue
General Motor's (Auto Production) 14,149,360$ General Motor's (Auto Production) 12,137,710$
Griffin Wheel (Railroad Wheels) 6,847,075$ CertainTeed Corp. (Insulation) 9,374,453$
CertainTeed Corp. (Insulation) 6,584,360$ Griffin Wheel (Railroad Wheels ) 5,705,991$
Owens Corning Fiberglass (Insulation) 5,622,261$ Univ. of Kansas Hospital Authority (Hospital) 4,909,834$
Univ. of Kansas Hospital Authority (Hospital) 5,135,283$ WaterOne of Johnson County (Water Utility) 4,896,004$
WaterOne of Johnson County (Water Utility) 4,637,054$ Owens Corning Fiberglass (Ins ulation) 4,825,533$
Univ. of Kansas Medical Center (Hospital) 4,406,627$ Procter & Gamble Co. (Cleaning Products) 4,356,090$
Procter & Gamble Co. (Cleaning Products) 4,373,082$ Univ. of Kans as Medical Center (Hospital) 4,265,334$
P Q Corporation (Chemicals Manufacturer) 2,430,849$ P Q Corporation (Chemicals Manufacturer) 2,670,974$
Hillshire Brands (Food Manufacturer) 2,274,983$ GNB Battery (Battery Manufactu rer) 2,312,000$
2017
Revenue 2018 Revenue
General Motor's (Auto Production) 10,945,178$ General Motor's (Auto Production) 12,542,607$
CertainTeed Corp. (Insulation) 10,726,179$ CertainTeed Corp. (Insulation) 11,253,924$
Griffin Wheel (Railroad Wheels) 6,656,822$ Griffin Wheel (Railroad Wheels) 7,823,039$
Univ. of Kansas Hospital Authority (Hospital) 6,631,641$ WaterOne of Johnson County (Water Utility) 6,892,251$
Owens Corning Fiberglass (Insulation) 5,777,506$ Univ. of Kansas Hospital Authority (Hospital) 6,426,046$
WaterOne of Johnson County (Water Utility) 5,752,958$ Owens Corning Fiberglass (Ins ulation) 6,183,292$
Univ. of Kansas Medical Center (Hospital) 4,801,206$ Procter & Gamble Co. (Cleaning Products) 4,961,457$
Procter & Gamble Co. (Cleaning Products) 4,677,147$ Univ. of Kans as Medical Center (Hospital) 4,959,198$
P Q Corporation (Chemicals Manufacturer) 2,935,005$ P Q Corporation (Chemicals Manufacturer) 3,065,642$
GNB Battery (Battery Manufacturer) 2,823,661$ Keebler Company (Food Manufacturer) 2,812,566$
2019
Revenue 2020 Revenue
General Motor's (Auto Production) 13,401,776$ General Motor's (Auto Production) 12,295,126$
CertainTeed Corp. (Insulation) 13,085,501$ CertainTeed Corp. (Insulation) 12,287,073$
Griffin Wheel (Railroad Wheels) 8,545,022$ WaterOne of Johnson County (W ater Utility) 7,614,250$
WaterOne of Johnson County (Water Utility) 7,364,110$ Griffin W heel (Railroad Wheels ) 7,311,151$
Univ. of Kansas Hospital Authority (Hospital) 7,151,463$ Univ. of Kansas Hospital Authority (Hospital) 7,094,013$
Owens Corning Fiberglass (Insulation) 6,327,404$ Univ. of Kansas Medical Center (Hospital) 4,836,499$
Procter & Gamble Co. (Cleaning Products) 5,441,844$ Pro cter & Gamble Co. (Cleaning Products ) 4,306,739$
Univ. of Kansas Medical Center (Hospital) 5,343,639$ Owens Corning Fiberglas s (Insulation) 4,132,337$
P Q Corporation (Chemicals Manufacturer) 3,709,720$ P Q Corporation (Chemicals Manufacturer) 3,326,773$
Keebler Company (Food Manufacturer) 3,063,239$ Keebler Company (Food Manufacturer) 3,133,673$
2021
Revenue 2022 Revenue
General Motor's (Auto Production) 9,991,138$ General Motor's (Auto Production) 12,158,411$
CertainTeed Corp. (Insulation) 7,060,713$ CertainTeed Corp. (Ins ulation) 11,837,863$
WaterOne of Johnson County (Water Utility) 6,555,503$ WaterOne of Johnson County (W ater Utility) 8,700,581$
Griffin Wheel (Railroad Wheels) 6,316,777$ Univ. of Kansas Hospital Authority (Hospital) 7,772,842$
Univ. of Kansas Hospital Authority (Hospital) 5,995,176$ Griffin Wheel (Railroad Wheels ) 7,553,727$
Univ. of Kansas Medical Center (Hospital) 5,558,762$ Owens Corning Fiberglas s (Insulation) 7,111,759$
Procter & Gamble Co. (Cleaning Products) 3,313,535$ Univ. of Kansas Medical Center (School / Hospital) 4,186,940$
Owens Corning Fiberglass (Insulation) 3,086,009$ Procter & Gamble Co. (Cleaning Products) 3,822,879$
P Q Corporation (Chemicals Manufacturer) 2,516,314$ Ecovyst Catalyst Technologies (Chemicals Manufacturer) 3,675,380$
Keebler Company (Food Manufacturer) 2,449,382$ Stryten Energy (Energy Storage) 3,092,291$
PRINCIPAL CUSTOMERS (Ten year history)
Board of Public Utilities
92
Employee
Benefits Total Number of
and Salary Employees
Fiscal Payroll And As of
Year Salaries Taxes Benefits December 31,
(1) (2) (3)
2013 $ 50,791,860 $ 24,823,381 $ 67,604,414 585
2014 $ 50,128,257 $ 28,327,841 $ 70,156,566 556
2015 $ 49,616,092 $ 26,999,213 $ 69,373,164 557
2016 $ 50,386,498 $ 26,829,378 $ 69,763,315 557
2017 $ 50,446,956 $ 28,680,273 $ 71,303,334 533
2018 $ 52,109,160 $ 28,343,762 $ 72,511,843 544
2019 $ 53,032,489 $ 31,404,739 $ 76,496,149 547
2020 $ 53,567,578 $ 30,616,356 $ 76,169,739 521
2021 $ 54,185,156 $ 29,014,127 $ 75,185,088 503
2022 $ 54,088,777 $ 32,259,431 $ 77,672,675 496
(1) Includes compensated absences that are also included in salaries
(2) Excludes paid time not worked.
(3) Excludes temporary employees and employees on long-term disability.
b
Employee Data
Las t Ten Fiscal Year
440
460
480
500
520
540
560
580
600
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Number of Employees
Board of Public Utilities
93
Personal County-wide
Income
2
Per Capita
2
Public
County (thousands Personal School Unemployment
Year Population
1
of dollars) Income Enrollment
3
Rate
2013 160,984 $7,910,231 $49,150 29,753 7.9%
2014 162,320 $6,912,435 $42,641 30,200 6.9%
2015 163,832 $6,574,820 $40,242 30,414 6.0%
2016 164,934 $5,141,826 $31,273 30,826 5.5%
2017 165,313 $5,303,254 $32,085 31,578 5.2%
2018 165,324 $5,435,835 $32,663 31,436 4.8%
2019 165,429 $5,623,400 $33,900 32,353 4.3%
2020 165,265 $5,670,813 $34,107 31,376 7.8%
2021 169,245 $6,340,465 $38,329 32,091 4.7%
2022 165,746 $6,823,748 $40,892 30,895 3.5%
Sources and Notes
:
3
School enrollment of Kansas City, Kansas #500, Turner #202, Piper #203, Bonner Springs #204 and parochial
schools in Wyandotte County.
UNIFIED GOVERNMENT OF WYANDOTTE COUNTY / KANSAS CITY, KANSAS
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
1
U.S. Dept of Commerce, Bureau of Census, Local Population Estimates; non-decennial Census figures are
time-series data updated annually with release of annual population estimate. Note, the 2020 population
number is from the decennial Census count.
2
Personal Income and Per Capita Personal Income per U.S. Bureau of Economic Analysis. Most recent year is
an estimate based on trends.
Board of Public Utilities
94
Employees in
County
(Employment
Range) Rank
Percentage
of Total
County
Employment
Employees
in County
(Employment
Range) Rank
Percentage
of Total
County
Employment
Kansas University Health Systems 8500+ 1 9.25% 4500-5000 1 6.09%
Kansas City, KS School District #500 4500-5000 2 4.98% 3500-4000 4 4.18%
University of Kansas Medical Center 3500-4000 3 4.49% 3500-4000 3 4.24%
Amazon Fullfillment Center 3500-4000 4 3.64% - -
-
United Parcel Service 1000-2499 5 3.05% - - -
Unified Government of Wyandotte Co/KCK 1000-2499 6 2.65% 1000-2499 6 2.57%
Associated Wholesale Grocers 1000-2499 7 2.52% 1000-2499 9 1.28%
General Motors Corporation 1000-2499 8 2.41% 3500-4000 2 4.30%
Providence Medical Center 1000-2499 9 1.20% 750-999 10 1.10%
Nebraska Furniture Mart 1000-2499 10 1.11% 1000-2499 8 1.29%
Burlington Norther Santa Fe - - - 1000-2499 7 1.81%
Cerner - - - 2500-3000 5 3.40%
32,433 35.30% 23,613 30.26%
Source: Unified Government Finance Department, Research Division.
UNIFIED GOVERNM ENT OF WYANDOTTE COUNTY / KANSAS CITY, KANSAS
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
Fiscal Year 2022 Fiscal Year 2013
Operating Information
95
Board of Public Utilities
Summer Winter Summer Winter Summer Winter Summer Winter
Res identia l
Rate Code 10 0
Customer Charge 14.50$ 14.50$ 16.00$ 16.00$ 19.00$ 19.00$ 22.00$ 22.00$
Energy Charge:
First 1,000 kWh 0.06790 0.05260 0.07240 0.05610 0.06406 0.06406 0.06466 0.06466
Next 1,000 kWh 0.07960 0.05100 0.08480 0.05430 0.06406 0.06406 0.06466 0.06466
All Additional kWh 0.09980 0.05100 0.10630 0.05430 0.06406 0.06406 0.06466 0.06466
Residential Electric Heating
Rate Code 10 1
Customer Charge 14.50 14.50 16.00 16.00 19.00 19.00 22.00 22.00
Energy Charge:
First 1,000 kWh 0.06790 0.05260 0.07240 0.05610 0.06406 0.06406 0.06466 0.06466
Next 1,000 kWh 0.07960 0.03720 0.08480 0.03960 0.06406 0.03906 0.06466 0.03966
All Additional kWh 0.09980 0.03190 0.10630 0.03400 0.06406 0.03906 0.06466 0.03966
Small General Service
Rate Code 20 0
Customer Charge 27.50 27.50 30.00 30.00 35.00 35.00 40.00 40.00
Energy Charge:
First 3,500 kWh 0.08080 0.07020 0.08570 0.07450 0.04677 0.04677 0.04733 0.04733
All Additional kWh 0.03400 0.02340 0.03610 0.02480 0.04677 0.04677 0.04733 0.04733
Facilities Charge:
Secondary Service 2.55 2.55 2.71 2.71 3.26 3.26 3.30 3.30
Prim ary Service 2.02 2.02 2.14 2.14 2.62 2.62 2.65 2.65
Demand Charge:
First 10 kW No Charge No Charge No Charge No Charge No Charge No Charge No Charge No Charge
All Additional kW 6.91 6.91 7.33 7.33 5.50 5.50 5.57 5.57
*Metering Adjustment:
Primary -2.00% -2.00% -2.00% -2.00% -2.00% -2.00% -2.00% -2.00%
Secondary NA NA NA NA NA NA NA NA
Customers without Demand Meters
All kWh 0.0967 0.0893 0.1026 0.0947 0.09280 0.09280 0.08846 0.08846
Small General Service Electric Heating
Rate Code 201 (Started Mar-2017)
Customer Charge 35.00 35.00 40.00 40.00
Energy Charge:
First 3,500 kWh 0.04677 0.04677 0.04733 0.04733
All Add i tiona l kWh 0.04677 0.02677 0.04733 0.02709
Facilities Charge:
Secondary Service 3.26 3.26 3.30 3.30
Primary Service 2.62 2.62 2.65 2.65
Demand Charge:
Firs t 10 kW No Charge No Charge No Charge No Charge
All Add i tiona l kW 5.50 5.50 5.57 5.57
*Metering Adjustment:
Primary -2.00% -2.00% -2.00% -2.00%
Secondary NA NA NA NA
*Metering Adjustment:
Source: Board of Public Utilities approved rate tariffs.
Rate Component Information Available for 2012-2022
Years repres ented are for years with rate tariff adjus tments .
Electric Rates
2012 thru 2022
Jan-12 Jan-13 Mar-17 Dec-18
For years 2012-Current, when a meter is installed which does not compensate for transformer losses, the customer's metered kWh and kW is adjusted according to the
percentages.
Notes:
96
Board of Public Utilities
Summer Winter Summer Winter Summer Winter Summer Winter
Medium General Service Rate
Rate Code 250
Customer Charge 60.00 60.00 65.00 65.00 75.00 75.00 85.00 85.00
Energy Charge:
First 300 kWh per kW 0.04730 0.03680 0.04950 0.03850 0.03637 0.03637 0.03724 0.03724
All Additional kWh 0.01580 0.01370 0.01650 0.01430 0.02137 0.02137 0.02188 0.02188
Facilities Charge:
Secondary Service 3.11 3.11 3.26 3.26 4.02 4.02 4.11 4.11
Prim ary Service 2.46 2.46 2.58 2.58 3.46 3.46 3.54 3.54
Demand Charge:
All Additional kW 6.88 6.88 7.21 7.21 6.50 6.50 6.66 6.66
*Metering Adjustment:
Primary NANA NA NA NANA NANA
Secondary 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Medium General Service Rate Electric Heating
Rate Code 251 (Started Mar-2017)
Customer Charge 75.00 75.00 85.00 85.00
Energy Charge:
First 300 kWh per kW 0.03637 0.03637 0.03724 0.03724
All Additional kWh 0.02137 0.01137 0.02188 0.01164
Facilities Charge:
Secondary Service 4.02 4.02 4.11 4.11
Prim ary Service 3.46 3.46 3.54 3.54
Demand Charge:
All Additional kW 6.50 6.50 6.66 6.66
*Metering Adjustment:
Prim ary NA NA NA NA
Secondary 2.0% 2.0% 2.0% 2.0%
Large General Service Rate
Rate Code 300
Customer Charge 130.00 130.00 140.00 140.00 155.00 155.00 170.00 170.00
Energy Charge:
First 300 kWh per kW 0.04130 0.03170 0.04360 0.03340 0.03540 0.03540 0.03636 0.03636
All Additional kWh 0.01380 0.01380 0.01460 0.01460 0.01540 0.01540 0.01582 0.01582
Facilities Charge:
Secondary Service 3.13 3.13 3.3 3.3 4.02 4.02 4.13 4.13
Prim ary Service 2.48 2.48 2.62 2.62 3.46 3.46 3.56 3.56
Demand Charge:
All Additional kW 7.99 7.99 8.43 8.43 8.43 8.43 8.66 8.66
*Metering Adjustment:
Secondary 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Primary NANA NA NA NANA NANA
*Metering Adjustment:
Source: Board of Public Utilities approved rate tariffs.
Rate Component Information Available for 2012-2022
Years represented are for years with rate tariff adjus tm ents .
Electric Rates
2012 thru 2022
Jan-12 Jan-13 Mar-17 Dec-18
For years 2012-Current, when a meter is installed which does not compensate for transformer losses, the customer's metered kWh and kW is adjusted according to the
percentages.
Notes:
97
Board of Public Utilities
Summer Winter Summer Winter Summer Winter Summer Winter
Large General Service Rate Electric Heating
Rate Code 301 (Started Mar-2017)
Customer Charge 155.00 155.00 170.00 170.00
Energy Charge:
First 300 kWh per kW 0.03540 0.03540 0.03636 0.03636
All Ad ditio nal kWh 0.00540 0.00540 0.00555 0.00555
Facilities Charge:
Secondary Service 4.02 4.02 4.13 4.13
Prim ary Service 3.46 3.46 3.56 3.56
Demand Charge:
All Ad ditio nal kW 8.43 8.43 8.66 8.66
*Metering Adjustment:
Secondary 2.0% 2.0% 2.0% 2.0%
Prim ary NA NA NA NA
Large Power Service Rate
Rate Code 400
Customer Charge 275.00 275.00 300.00 300.00 350.00 350.00 400.00 400.00
Energy Charge:
First 300 kWh per kW 0.02310 0.02100 0.02490 0.02260 0.02081 0.02081 0.02183 0.02183
All Additional kWh 0.01100 0.01000 0.01190 0.01080 0.01050 0.01050 0.01101 0.01101
Facilities Charge:
Secondary Service 2.62 2.62 2.83 2.83 3.24 3.24 3.40 3.40
Prim ary Service 2.09 2.09 2.25 2.25 2.75 2.75 2.88 2.88
Subs tation Service 0.79 0.79 0.85 0.85 0.95 0.95 1.00 1.00
Demand Charge:
All Additional kW 8.59 8.59 9.26 9.26 9.26 9.26 9.71 9.71
*Metering Adjustment:
Primary NANA NA NA NANA NANA
Secondary 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Substation Service -2.8% -2.8% -2.8% -2.8% -2.8% -2.8% -2.8% -2.8%
Transmission -3.3% -3.3% -3.3% -3.3% -3.3% -3.3% -3.3% -3.3%
Large Power Service Rate Electric Heating
Rate Code 401 (Started Mar-2017)
Customer Charge 350.00 350.00 400.00 400.00
Energy Charge:
First 300 kWh per kW 0.02081 0.02081 0.02183 0.02183
All Ad ditio nal kWh 0.01050 0.00550 0.01101 0.00577
Facilities Charge:
Secondary Service 3.24 3.24 3.40 3.40
Prim ary Service 2.75 2.75 2.88 2.88
Subs tation Service 0.95 0.95 1.00 1.00
Demand Charge:
All Ad ditio nal kW 6.95 6.95 8.56 8.56
*Metering Adjustment:
Prim ary NA NA NA NA
Secondary 2.0% 2.0% 2.0% 2.0%
Subs tation Service -2.8% -2.8% -2.8% -2.8%
Transmission -3.3% -3.3% -3.3% -3.3%
*Metering Adjustment:
Source: Board of Public Utilities approved rate tariffs.
Rate Component Information Available for 2012-2022
Years represented are for years with rate tariff adjustments.
Electric Rates
2012 thru 2022
Jan-12 Jan-13 Mar-17 Dec-18
For years 2012 - Current, when a meter is installed which does not compensate for transformer losses, the customer's metered kWh and kW is adjusted according to the
percentages.
Notes:
98
Board of Public Utilities
Summer Winter Summer Winter Summer Winter Summer Winter
Large Power High Load Factor
Rate Code 450 (Started Mar-2017)
Customer Charge 350.00 350.00 400.00 400.00
Facilities Charge:
Secondary Service 3.24 3.24 3.40 3.40
Primary Service 2.75 2.75 2.88 2.88
Substation Service 0.95 0.95 1.00 1.00
Demand Charge:
All Additional kW 17.50 17.50 17.93 17.93
*Metering Adjustment:
Prim ary NA NA NA NA
Secondary 2.0% 2.0% 2.0% 2.0%
Substation Service -2.8% -2.8% -2.8% -2.8%
Transmission -3.3% -3.3% -3.3% -3.3%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Average Monthly Residential kWh
854 839 832 808 832 806 876 829 815 834 835
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Average Ener gy Rate Component (ERC)
0.03445 0.03038 0.03490 0.03139 0.02939 0.03539 0.03340 0.03270 0.03200 0.02647 0.04071
Environmental Surcharge (ESC) 2012 2013 2014 2015 2016 Jan-Feb 2017 Mar-Dec 2017 2018 2019 2020 2021 2022
Rate Code 100 (kWh) 0.00094 0.00097 0.00124 0.00304 0.00444 0.00664 0.00899 0.01000 0.00902 0.00892 0.00857 0.01006
Rate Code 200 (kWh) 0.00140 0.00144 0.00179 0.00443 0.00656 0.00973 0.01128 0.01134 0.01039 0.01034 0.01010 0.01214
Rate Code 250 (kW) 0.38985 0.38662 0.47525 1.19839 1.70924 2.61501 3.98803 3.92962 3.71095 3.67398 3.29417 3.93938
Rate Code 300 (kW) 0.38985 0.38662 0.47525 1.19839 1.70924 2.61501 2.14008 3.77993 3.42465 3.55253 3.20436 3.82812
Rate Code 400 (kW) 0.40618 0.43575 0.56661 1.50282 2.03925 2.90730 3.69120 4.11948 3.81418 3.73724 3.15847 3.66200
Rate Code USD500 (kWh) 0.00136 0.00142 0.00168 0.00382 0.00535 0.00841 0.01125 0.01063 0.01041 0.01005 0.00843 0.00982
*Metering Adjustment:
Source: Board of Public Utilities approved rate tariffs.
Rate Component Information Available for 2012-2022
Years represented are for years with rate tariff adjustments.
Electric Rates
2012 thru 2022
Mar-17 Dec-18
For years 2012-Current, when a meter is installed which does not compensate for transformer losses, the customer's metered kWh and kW is adjusted according to the
percentages.
Notes:
Jan-12 Jan-13
Board of Public Utilities
99
Jan-13
Meter Size Inside City Outside City
Monthly Customer Access Charge
5/8" 17.50$ 17.50$ 19.35$
3/4" 21.30 21.30 23.55
1" 26.55 26.55 29.35
1.5" 41.60 41.60 46.00
2" 56.70 56.70 62.60
3" 123.00 123.00 136.00
4" 198.00 198.00 219.00
6" 386.00 386.00 427.00
8" 575.00 575.00 635.00
10" 763.00 763.00 843.00
12" and Larger 875.00 875.00 967.00
Monthly Minimum Bill
5/8" 17.87 21.92 19.74
3/4" 38.60 40.80 41.83
1" 53.90 58.03 58.22
1.5" 95.03 101.39 101.77
2" 141.29 152.42 150.51
3" 271.19 292.18 289.51
4" 436.82 473.39 465.99
6" 860.14 920.56 916.71
8" 1,365.55 1,409.43 1,451.07
10" 1,949.46 2,038.82 2,067.43
12" and Larger 2,349.25 2,565.81 2,488.27
CCF Units
Per Month
0 to 7 3.680 3.680 3.890
8 to 160 3.180 3.180 3.280
161 to 2000 3.180 3.180 3.280
2001 to 8000 2.450 2.450 3.030
All over 8000 2.450 2.450 3.030
Private Fire Protection Rates
2" 7.97 7.97 7.97
4" 20.44 20.44 20.44
6" 49.86 49.86 49.86
8" 100.21 100.21 100.21
10" 175.95 175.95 175.95
12" and Larger 281.10 281.10 281.10
Source: Board of Public Utilities approved rate tariffs.
Years represented are for years with rate tariff adjustments.
Notes:
Water Rates
2012 thru 2022
Jan-12
100
Board of Public Utilities
Water System:
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Miles of Water Mains 967.55 967.04 966.85 967.74 970.14 966.64 963.94 959.84 957 1,001
Number of New Service Taps 166 155 187 205 311 257 185 167 166 158
Max. Day Pumped (Gallons) 46,450,000 39,880,000 36,390,000 40,590,000 38,890,000 29,570,000 42,090,000 43,470,000 36,860,000 38,170,000
Min. Day Pumped (Gallons) 23,950,000 24,400,000 22,230,000 23,720,000 23,680,000 24,960,000 25,130,000 24,180,000 23,390,000 24,820,000
Max. Rate (MGD) 54545454545454545454
Water Main Breaks 590 606 499 444 481 602 528 376 419 476
Avg daily consumption (gallons) 30,850,000 29,326,000 28,251,482 29,098,630 28,612,843 30,046,990 30,475,805 29,322,263 29,100,678 30,746,230
Source: Various water divisions.
Capital Operating Indicators
LAST 10 FISCAL YEARS
Board of Public Utilities
101
Department
2013
Approved
2014
Approved
2015
Approved
2016
Approved
2017
Approved
2018
Approved
2019
Approved
2020
Approved
2021
Approved
2022
Approved
1000 ES Administration 4444444455
1600 Electric System Control 25 25 25 24 24 24 24 24 23 23
Total Electric Supply
29 29 29 28 28 28 28 28 28 28
1100 EP Administration 6777986644
1101 Maintenance and Planning 3222222111
1103 EP Engineers Common 5555445788
1200 Kaw Plant Common 1100000000
1301 EP Maintenance-Quindaro 21 21 20 15 14 13 9 0 0 0
1302 EP Operations-Quindaro 38 38 38 29 23 21 17 5 0 0
1303 EP Engineering - Quindaro 3333331000
1401 EP Maintenance-Nearman 16 20 20 22 26 27 27 29 29 31
1402 EP Operations-Nearman 35 35 35 35 38 39 40 48 46 41
1403 EP Engineering - Nearman 2222221000
1500 Common Plant Maintenance 45 38 35 35 33 33 32 30 30 17
Total Electric Production
184 180 175 163 161 159 148 126 118 102
1900 EO Administration 4222222222
2000 EO Planning 0442223352
2100 EO Transmission 86 85 85 82 81 81 80 78 78 78
2200 EO Substation / Relay 13 13 13 13 14 14 15 15 15 17
2300 Telecommunications 7788888888
2410 IT Administration 1111112211
2420 Desktop 7 7 9 11 11 12 12 12 12 12
2430 Applications 12 12 15 14 16 17 17 17 18 18
2500 EO Grounds / Claims 1112222222
2600 EO Fleet Maintenance 23 23 23 21 21 21 21 21 21 20
2700 EO Electrical Engineering 25 25 25 23 22 22 22 21 19 17
2800 EO Elec Meters & Services 16 15 23 23 22 20 20 20 20 19
2810 Meter Reading 15 800000000
2820 Revenue Protection 3500000000
2900 EO Traffic Signal 5554444444
Total Electric Operations & Technology
218 213 214 206 206 206 208 205 205 200
6800 Corporate Compliance 0000000001
6900 Nerc Compliance 3333444444
1700 Environmental Services 6555445566
1701 Environmental Air Quality 3333333333
Total Corporate Compliance
12 11 11 11 11 11 12 12 13 14
3700 Water Meters/Services 23 24 24 26 25 26 23 22 22 22
3900 Maintenance Nearman 6677677777
4000 Process Administration 3333322222
4100 Laboratory 10 998888877
4200 WO Mains 39 37 39 37 38 37 40 39 39 39
4400 WP Support Services 6644555555
4500 Water Administration 1111111111
4600 Water Civil Engineering 15 16 16 15 15 15 15 15 15 15
4800 Operations Nearman 888788991010
Total Water
111 110 111 108 109 109 110 108 108 108
5000 Customer Relations 14 14 15 17 17 17 17 17 17 17
5100 Cash Operations 8888888874
5200 Collections 19 15 15 14 14 12 12 12 11 10
5800 CS Administration 6766666666
6200 Customer Accounting 8888888887
Total Customer Service
55 52 52 53 53 51 51 51 49 44
6100 Accounting 18 18 18 16 16 16 16 16 16 14
6300 Purchasing 4455555555
6400 Stores 24 24 23 22 22 22 22 21 20 20
7000 General Managers Office 6654333333
7100 Marketing & Corporate Communications 3343323366
7400 Human Resources 10 10 10 9999999
7900 Utility Svcs 3333333300
8600 Administrative Services 3333333333
8700 Image Processing 7787777777
Total Administrative
81 81 82 75 75 74 75 70 69 67
Overall Total Number Of Approved Positions
678 665 663 633 632 627 620 588 590 563
Source: Board of Public Utilities approved annual budget.
Staffing by Division
2013 - 2022 Budget
102
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
Independent Auditor’s Report
The Board of Directors
Board of Public Utilities
Kansas City, Kansas
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States (Government Auditing Standards), the financial
statements of the Board of Public Utilities of Kansas City, Kansas (the BPU), which comprise the BPU’s
statement of net position as of December 31, 2022, and the related statements of revenues, expenses,
and changes in net position and cash flows for the year then ended, and the related notes to the financial
statements, and have issued our report thereon dated June 8, 2023, which contained “Emphasis of
Matters” paragraphs regarding presentation of only the BPU financial statements and a change in
accounting principle.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the BPU’s internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the BPU’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the BPU’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that were not identified.
103
The Board of Directors
Board of Public Utilities
Page 2
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the BPU’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Kansas City, Missouri
June 8, 2023
