The Austin Electric Utility Commission meeting on August 11, 2025, focused on the financial health of the utility, highlighting key metrics and budget performance. The primary goal discussed was achieving a double A bond rating through Standard and Poor's, with the current rating at double A minus. The commission noted that this rating was affirmed during a recent bond market review.

The meeting revealed that operating income is above budget, largely due to a one-time $30 million reserve transfer from power supply over recovery to the power supply stabilization reserve. This transfer helped the utility meet its financial policy of maintaining a minimum of 90 days of funds on hand for power costs. However, officials cautioned that this revenue boost is not expected to recur in future fiscal years.

The commission reported that while the utility is in substantial compliance with financial policies, it does not meet minimums on some reserve categories. The total over-recovery of power supply stands at $109 million, contributing to the utility's ability to meet the required 150 days of cash on hand.

In terms of budget performance, the utility reported an income of $17 million for June 2025, again influenced by the earlier mentioned reserve transfer. Without this transfer, the utility would have faced a loss. The commission also noted that operating expenses have increased by $25 million, reflecting rising costs.

The capital improvement plan for the fiscal year is projected at $400 million, with spending trends close to budget, although some overages in transmission and distribution were noted due to inflation and cost estimates differing from initial projections. The utility is currently financing 62% of its capital projects through debt, exceeding its preferred 50-50 split between debt and cash.

Overall, the meeting underscored the utility's ongoing efforts to maintain financial stability while navigating challenges related to revenue and expenses. The commission will continue to monitor these factors closely as they work towards their strategic financial goals.