Utility Financial Services

Utility Financial Trend Analyses - KPP staff members annually prepare over a dozen charts for each member utility illustrating the utility's financial health over a five-year period using various indicators such as operating ratio, number of expense days covered by unrestricted cash, debt service coverage ratio, operating expense and revenue per kilowatt-hour sold, and transfers to other funds as a percentage of customer revenue.  Charts also provide comparisons to danger thresholds and median levels for all KPP member utilities.  KPP makes no additional charge for this service.
 
Fund Balance Review - A utility often experiences rate pressure from rising costs and fund transfers that erode the utility's fund balance that is needed to absorb unexpected or extraordinary expenses, or a downturn in the local economy.  Short of undergoing a full cost-of-service rate study, KPP provides a review of utility revenues and expenses that affect the fund balance and provides options for establishing fund balance objectives to help maintain a financially healthy utility.  The computer model uses simple Excel spreadsheets to forecast revenues and expenses for a ten-year period.  As a planning tool, the user may make adjustments to existing finances to determine their impact on the utility's bottom line over the ten-year period.  KPP makes no additional charge for this service.
 
Payment of Membership Dues - The Kansas Power Pool pays the membership dues on behalf each KPP member utility to Kansas Municipal Utilities and the American Public Power Association.
 
Capacity Payments - To each member utility contributing utility-owned power generation resources to KPP's energy resource pool that benefit all member utilities, KPP makes payments for the proven capacity of the resources based on a rate calculation approved by the full membership.  Member-owned generating units contribute to the capacity requirements of the Southwest Power Pool for reliability purposes and relieve KPP from the need to purchase external capacity.