City of Red Deer Electric, Light & Power Department Transmission Facility Owner Rule 005 - Annual Financial and Operating Report

Schedule 1

Summary of Revenue Requirement

Schedule 2

Summary of Return on Rate Base

Schedule 2.1

Summary of Mid-Year Rate Base

Schedule 2.2

N/A

Summary of Mid- Year Capital Structure

Schedule 2.3

N/A

Schedule of Debt Capital Employed

Schedule 2.4

N/A

Schedule of Preferred Share Capital Employed

Schedule 3

Summary of Operating and Maintenance Expense

Schedule 4

Summary of Depreciation Expense

Schedule 4.1

Capital Assets Continuity Schedule

Schedule 4.2

Summary of Capital Additions

Schedule 5

N/A

Summary of Utility Income Tax

Schedule 6

N/A

Summary of Customers, Energy and Revenue

Schedule 7

Explanation of Corporate Cost Allocations from Other City Departments

Schedule 8

Summary of Payroll & Manpower Statistics

Schedule 9

Summary of Reserve / Deferral Accounts

Schedule 10

Reconciliation of Financial Reports to Audited Financial Statements - I/S

Schedule 11 Schedule 12

N/A

Reconciliation of Financial Reports to Audited Financial Statements - B/S Variance Explanations

Note: An interim rate is in place for 2009 pending a final decision by the AUC, therefore actual results are compared with prior year actual results.

SCHEDULE 1

The City of Red Deer TFO SUMMARY OF REVENUE REQUIREMENT FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s)

Line No.

Description

1 2 3 4 5 6

Return on Rate Base Operating and Maintenance Depreciation and Amortization Reserve/Deferral Account Funding Utility Income Tax Subtotal

7

Revenue Offsets

8

Total Revenue Requirement

9 10 11 12

Detailed Revenue Requirement Distribution Tariff Revenue Transmission Tariff Revenue Retail Tariff Revenue Other Revenue

13

Total Revenue Requirement

CrossReference

Sch 2 Sch 3 Sch 4 Sch 9 Sch 5

2009 Actual

2009 Forecast

165 1,213 336 (38) 0 1,676

2008 Actual

206 1,112 325 33 0 1,676

0 Sch 10

Line 9

Var. Actual to Forecast

0

Var. %

Var. Actual to Prior Year

Var. %

(41) 101 12 (71) 0 0

-20.1% 9.1% 3.6% -215.2% 0.0% 0.0%

0

0.0%

1,676

1,676

0

0.0%

0 1,676 0 0

0 1,676 0 0

0 1 0 0

0.0% 0.0% 0.0% 0.0%

1,676

1,676

1

0.0%

Working Paper Reference

Note: (1) To be reconciled to Audited Financial Statements (2) Provide a detailed breakdown of items captured in Revenue Offsets and Other Revenue on a supporting sub-schedule

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 2

The City of Red Deer TFO SUMMARY OF RETURN ON RATE BASE FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s)

2009 Actual Line No.

Description

CrossReference

Mid-Year Capital

n/a n/a n/a n/a

1 2 3 4

Short-Term Debt Long-Term Debt Preferred Shares Common Equity

Sch 2.2 Sch 2.2 Sch 2.2 Sch 2.2

5

Mid-Year Invested Capital

Sch 2.1

6

Return on Mid-Year Rate Capital

0.0

Ratio

Prorated Rate Base

Cost Rate %

Var. Actual to 2008 Actual

Return $

Var. %

63.00%

3,164

5.83%

185

29

19%

37.00%

1,858

-1.06%

(20)

(70)

-139%

100.00%

5,022

3.28% 165

(41)

-20%

Sch 1

Working Paper Reference

2008 Actual Line No.

Description

Cross Reference

Mid Year Capital

n/a n/a n/a n/a

7 8 9 10

Short-Term Debt Long-Term Debt Preferred Shares Common Equity

Sch 2.2 Sch 2.2 Sch 2.2 Sch 2.2

11

Mid-Year Invested Capital

Sch 2.1

12

Return on Mid-Year Rate Capital

0.0

Deemed Structure

Prorated Rate Base

Cost Rate %

Return $

65.00%

2,563

6.07%

156

35.00%

1,380

3.67%

51

100.00%

3,943

5.23%

Sch 1

206

`

Note: (1) If forecast information is not available, substitute with prior year Variance explanation provided.

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 2.1

The City of Red Deer TFO SUMMARY OF MID-YEAR RATE BASE FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s)

Line No.

Description

1 2 3

Gross Utility Plant in Service Opening Balance Closing Balance Mid-Year Gross Utility Plant in Service

4 5 6

Accumulated Depreciation - Utility Opening Balance Closing Balance Mid-Year Accumulated Depreciation - Utility

7 8 9

Contributions in Aid of Construction Opening Balance Closing Balance Mid-Year Utility Contributions in Aid of Construction

10 11 12

Amortization of Contributions Opening Balance Closing Balance Mid-Year Utility Amortization of Contributions

13

CrossReference

2009 Actual

2009 Forecast

2008 Actual

Var. Actual to Forecast

Var. %

Var. Actual to Prior Year

Var. %

Sch 11

11,801 12,865 12,333

11,408 11,801 11,604

394 1,064 729

3.5% 9.0% 6.3%

Sch 11

7,534 6,982 7,258

7,685 7,534 7,609

(152) (552) (352)

-2.0% -7.3% -4.6%

Sch 11

0 0 0

0 0 0

0 #DIV/0! 0 #DIV/0! 0 #DIV/0!

Sch 11

0 0 0

0 0 0

0 #DIV/0! 0 #DIV/0! 0 #DIV/0!

Mid-Year Net Utility Plant in Service

5,075

3,995

1,080

27.0%

14 15

Necessary Working Capital Other No Cost Capital

117 (170)

102 (153)

16 (17)

15.3% 10.9%

16

Mid-Year Net Rate Base (Capital Invested)

5,022

3,943

1,079

27.4%

Sch 2

Working Paper Reference

Note: (1) Closing balances for each category should be balanced to the audited Balance Sheet on Schedule 11

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 2.2

The City of Red Deer TFO SUMMARY OF MID-YEAR CAPITAL STRUCTURE FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s)

Line No.

Description

Cross-

Current

Previous

Actual

Forecast

Var. Actual to

Var.

Working Paper

Reference

Year-End

Year-End

Mid-Year Capital

Mid-Year Capital

Forecast

%

Reference

1

Short-Term Debt

Sch 2.3

2

Long-Term Debt

Sch 2.3

3

Preferred Shares

Sch 2.4

5

Total Mid-Year Invested Capital

Red Deer TFO in practice is 100% equity financed, and has no debt or equity financing outstanding. Red Deer TFO uses deemed debt 4 Common Equity 0 0 and equity ratios as per AUC Decision 2009-216. This deemed ratio has been entered on schedule 2. 0

0

0

0

0

Note: (1) If forecast information is not available, substitute with prior year (2) Capital Structure pertains to regulated business (3) Year end balances to be reconciled to Audited Financial Statements on Schedule 11

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 2.3

The City of Red Deer TFO SCHEDULE OF DEBT CAPITAL EMPLOYED FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s)

2009 Actual Underwriting Line

Cross-

No.

Reference

1

Issue Description

Series

Date

Maturity Coupon Date

Rate

Effective

Principal

Discount

Total

Amount

& Expense

Amount

Principal

Cost Rate Outstanding %

at Year-End

Average

Variance

Carrying

Embedded

Actual to

Var.

Working Paper

Cost

Cost Rate

Forecast

%

Reference

A

0.00%

0

0

0

0%

0

0

0

0%

2

B

0.00%

0

0

0

0%

0

0

0

0%

3

C

0.00%

0

0

0

0%

0

0

0

0%

4

D

0.00%

0

0

0

0%

0

0

0

0%

5

E

0.00%

0

0

0

0%

0

0

0

0%

6

F

0.00%

0

0

0

0%

0

0

0

0%

0

0

0

0

0

0.00%

0

0%

7

Sch 2.2

Current Year-End Balance

8

Sch 2.2

Prior Year-End Balance

0

0

0.00%

0

0%

9

Sch 2.2

Mid-Year Balance

0

0

0.00%

0

0%

Red Deer TFO is in practice 100% equity financed and has no direct debt financing.

2009 Forecast

Underwriting Line

Cross-

No.

Reference

1

Issue Description

Series

Date

Maturity Coupon Date

Rate

Effective

Principal

Discount

Total

Amount

& Expense

Amount

Principal

Average

Cost Rate Outstanding %

at Year-End

Carrying

Embedded

Cost

Cost Rate

A

0.00%

0

0

0

0%

0

0

2

B

0.00%

0

0

0

0%

0

0

3

C

0.00%

0

0

0

0%

0

0

4

D

0.00%

0

0

0

0%

0

0

5

E

0.00%

0

0

0

0%

0

0

6

F

0.00%

0

0

0

0%

0

0

0

0

0

0

0

0.00%

7

Sch 2.2

Current Year-End Balance

8

Sch 2.2

Prior Year-End Balance

0

0

0.00%

9

Sch 2.2

Mid-Year Balance

0

0

0.00%

Note: (1) In any year where there is a new issue, provide supporting schedule (2) Any differences between Forecast and Actual are to be explained on working paper (3) Include short-term debt if it is considered by the utility to be a component of Capital Struture and provide explanation (4) Variance analysis is on Carrying Cost

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 2.4

The City of Red Deer TFO SCHEDULE OF PREFERRED SHARE CAPITAL EMPLOYED FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s)

2009 Actual Line No.

CrossReference

1 2 3 4

Series

Issue Date

A B C D

Dividend Rate

Stated Value of Issue

0.000 0.000 0.000 0.00%

Underwriting Discount & Expense

Net Proceeds Outstanding

Carrying Cost of Issue

Average Embedded Cost Rate

0

0 0 0 0

0 0 0 0

0 0 0 0

0

0

0

0

Variance Actual to Forecast

Var.

Working Paper Reference

% 0 0 0 0

0% 0% 0% 0%

0.00%

0

0%

5

Sch 2.2

Current Year-End Balance

6

Sch 2.2

Prior Year-End Balance

0

0

0.00%

0

0%

7

Sch 2.2

Mid-Year Balance

0

0

0.00%

0

0%

2009 Forecast Line No.

CrossReference

1 2 3 4

Stated

Underwriting

Issue

& Expense

Net Proceeds

Carrying

Average

Issue

Cost Rate

Red Deer TFO Issue is in practice equity financed has no preferred financing. Dividend100% Value of Discount Outstanding Cost share of Embedded Series

Date

A B C D

Rate 0.00% 0.00% 0.00% 0.00%

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0

0

0

0

0.00%

5

Sch 2.2

Current Year-End Balance

6

Sch 2.2

Prior Year-End Balance

0

0

0.00%

7

Sch 2.2

Mid-Year Balance

0

0

0.00%

Guidelines: (1) In any year where there is a new issue, provide a supporting schedule. (2) Any differences between Forecast and Actual are to be explained in a supporting working paper.

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 3

The City of Red Deer TFO SUMMARY OF OPERATING AND MAINTENANCE EXPENSE FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s)

Line No.

Description

1

408.1

2

CrossReference

2009 Actual

2009 Forecast

2008 Actual

Var. Actual to Forecast

Var. %

Var. Actual to Prior Year

Var. %

Taxes other than Income Taxes

162

153

9

5.6%

560

Operation and Maintenance Supervision and Engineering

528

411

117

28.3%

3

561

Operation & Maintenance Control Center Operations

51

41

10

24.4%

4

562

Operation & Maintenance Station Equipment expenses

114

217

(103)

-47.5%

5

566

Operations and Maintenance Miscellaneous Transmission

166

93

73

77.9%

6

575

Operations & Maintenance IT support

55

44

11

25.1%

7

920

Administration and General Salaries

9

7

2

33.2%

8

923

Outside Services Employed

56

77

(21)

-26.8%

9

924

Insurance Premiums

6

8

(2)

-20.3%

10

925

Injuries and Damages

0

0

(0)

-64.9%

11

930.1

General Advertising Expense

2

1

1

112.5%

12

930.2

Miscellaneous General Expense

62

57

6

10.1%

13 14

935

1 1,213

2 1,112

(2) 101

-72.5% 9.1%

Maintenance of General Plant Total Utility Operating and Maintenance Costs

Sch 1

Working Paper Reference

Note: (1) Expense categories need to be identified by the individual utilities, however, should show sufficient breakdown to allow for reasonable understanding of operation (2) Total Utility Operating & Maintenance Costs are shown as net of Disallowed Expense as per reconciliation on Schedule 11

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 4

The City of Red Deer TFO SUMMARY OF DEPRECIATION EXPENSE FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s)

Line No. 1 2 3 4 5

USA

Description

403

Transmission Plant - Buildings & Site Development Transmission Plant - Substation Equipment Transmission Plant - Telecontrol System General Plant Total Utility Depreciation Expense

CrossReference

Sch 1

2009 Actual

2009 Forecast

2008 Actual

Var. Actual to Forecast

Var. %

Var. Actual to Prior Year

Var. %

24 250 31 31

24 249 39 13

0 0.0% 1 0.5% (8) -20.2% 18 141.0%

336

325

12

Working Paper Reference

3.6%

Note: (1) Asset categories need to be identified by the individual utilities, however, should show sufficient breakdown to allow for reasonable understanding of operation (2) Provide detail on "Other"

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 4.1

The City of Red Deer TFO CAPITAL ASSETS CONTINUITY SCHEDULE FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s)

CAPITAL ASSETS Line No.

Property Group

CrossReference

1 2 3 4 5 6

Transmission Plant - Buildings & Site Development Transmission Plant - Substation Equipment Transmission Plant - Telecontrol System General Plant Substation Land General Plant - Land

7

Subtotal

8

Capital Work in Progress (CWIP)

9

Total Utility

Sch 2.1

Balance at 12/31/2008

2009 Additions

2009 Retirements

2009 Transfers

2009 Adjustments

2009 AFUDC

Balance at 12/31/2009

Working Paper Reference

997 8,575 1,522 245 428 34

0 94 13 1,830 0 48

0 17 654 216 0 34

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

997 8,652 881 1,859 428 48

11,801

1,985

921

0

0

0

12,865

29

167

0

0

0

8

204

11,830

2,152

921

0

0

8

13,069

` ACCUMULATED DEPRECIATION Line No. Property Group

CrossReference

Balance at 12/31/2008

Depreciation Provision

2009 Retirements

2009 Transfers

2009 Adjustments

2009 AFUDC

Balance at 12/31/2009

Working Paper Reference

1 2 3 4

Transmission Plant - Buildings & Site Development Transmission Plant - Substation Equipment Transmission Plant - Telecontrol System General Plant

598 6,098 698 140

24 250 31 31

0 19 654 216

0 0 0 0

0 0 0 0

0 0 0 0

622 6,329 75 (45)

5

Subtotal

7,534

336

889

0

0

0

6,982

6

Capital Work in Progress (CWIP)

0

0

0

0

0

0

0

7

Total Utility

7,534

336

889

0

0

0

6,982

Sch 2.1

Note: (1) Asset categories need to be identified by the individual utilities, however, should show sufficient breakdown to allow for reasonable understanding of operation (2) Provide detail on "Other" (3) Year end balances to be reconciled to Audited Financial Statements on Schedule 11

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 4.2

The City of Red Deer TFO SUMMARY OF CAPITAL ADDITIONS FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s)

2009 Actual Line No.

1 2 3 4 5 6

7 8 9 10 11 12 13 14

Description

Cross-

CWIP

Cap

Cap

Reference

Balance

Expend

Adds

Capital Maintenance Project 1 Project 2 Project 3 Project 4 Project 5 Subtotal

2008 Actual AFUDC

0.0

0.0

0.0

0.0

CWIP

CWIP

Cap

Cap

Balance

Balance

Expend

Adds

0.0 0.0 0.0 0.0 0.0 0.0

New Regulated Additions New SCADA system Project 2 Project 3 Project 4 Project 5 Subtotal

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0 0.0 0.0 0.0 0.0 0.0

Total Business Unit

0.0

0.0

0.0

0.0

0.0

1,828.7

1,828.7

0.0

0.0

1,828.7

1,828.7

0.0

15 16 17 18 19 20 21

Direct General PP&E New EL&P Building Project 2 Project 3 Project 4 Project 5 Total Direct General Additions

22

Total Capital Additions > $500K

Sch 4.1

0.0

532.7

0.0

868.3

Var. Actual to

Var.

Working Paper

Balance

Prior Year

%

Reference

0.0

11.4

0.0 0.0 0.0 0.0 0.0 0.0

324.2

532.7

868.3

11.4

0.0 0.0 0.0 0.0 0.0 0.0

0.0

324.2

532.7

868.3

11.4

0.0

0.0 0.0 0.0 0.0 0.0 0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0 0.0 0.0 0.0 0.0 0.0

1,828.7

324.2

0.0

AFUDC

CWIP

868.3

0.0

0%

(868.3)

-100%

(868.3)

0%

(868.3)

0%

1,828.7

#DIV/0!

1,828.7

0%

960.4

111%

Note: (1) Materiality Criteria:- List all projects over $500,000, also report all multi-year projects that exceed this limit in total, but do not exceed materiality in any one particular year (2) Variance analysis is on Capital Additions

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 5

The City of Red Deer TFO SUMMARY OF UTILITY INCOME TAX FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s)

Line No.

CrossReference

Description

1 2 3 4 5

Current Tax Federal Income Tax Federal Taxable Income Income Tax Rate Total Federal Income Tax

6 7 8 9 10 11 12

Provincial Income Tax Federal Taxable Income Add: CCA Federal Flowthrough Less: CCA Provincial Flowthrough Provincial Taxable Income Income Tax Rate Total Provincial Income Tax

13

Total Current Tax

14 15 16 17 18 19

Future Tax Temporary Differences Income Tax Rate Other Total Future Tax

20 21 22 23 24

Other Items Large Corporations Tax Preferred Dividend Tax Other Total Other Items

25

Total Utility Income Tax

City of Red Deer (TFO)

2009 Actual

2009 Forecast

2008 Actual

0.000 0.000 0.000

0.0 0.000% -

Var. Actual to Forecast

Var. %

Var. Actual to Prior Year

Var. %

Working Paper Reference

0.0% -

0.0 0.000% -

0.0 0.000% -

N/A-Red Deer TFO is exempt from the requirement to pay income tax.

Sch 1

-

-

-

0.0% -

0.0% -

0.0% -

-

-

-

-

-

-

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 6

The City of Red Deer TFO SUMMARY OF CUSTOMERS, ENERGY AND REVENUE FOR THE YEAR ENDED DECEMBER 31, 2009 Line No.

CrossRef.

Description

1 2 3 4 5

Residential Customers - Average Energy Sales (MWh) Revenue ($000s) kWh per Customer Cents/kWh

6 7 8 9 10

Commercial Customers - Average Energy Sales (MWh) Revenue ($000s) kWh per Customer Cents/kWh

11 12 13 14

Industrial Customers - Average Energy Sales (MWh) Revenue ($000s) Cents/kWh

15 16 17 18 19

R.E.A. Farm N/A- -Average This Customers Energy Sales (MWh) Revenue ($000s) kWh per Customer Cents/kWh

20 21 22 23 24

Company Rural Farm Customers - Average Energy Sales (MWh) Revenue ($000s) kWh per Customer Cents/kWh

25 26 27

Street & Space Lights Energy Sales (MWh) Revenue ($000s) Cents/kWh

28

Other Revenues/Adjustments

29

Total Utility Revenue ($000s)

20X5 Actual

20X5 Forecast

20X4 Actual

Var. Actual to Forecast

Var. %

Var. Actual to Prior Year

Var. %

Working Paper Reference

schedule does not apply to the City of Red Deer TFO because we have no energy sales. The AESO is our only customer and pays our TFO tariff based on AUC approved rates.

Sch 1

-

-

-

-

-

Note: (1) Revenue categories need to be identified by the individual utilities, however, should show sufficient breakdown to allow for reasonable understanding of operation (2) Provide detail on "Other"

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 7

The City of Red Deer TFO EXPLANATION OF CORPORATE COST ALLOCATIONS FROM OTHER CITY DEPARTMENTS FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s)

2009 Actual Line No.

CrossRef.

Transactions In To RD

Var. Actual to Forecast

Var. %

Affiliate

Nature of Service

Corporate Allocations to RD TFO

Information Technology

55

Operating

11

25.1%

2

Accounting

22

Operating

2

10.1%

3

Accounts Receivable

2

Operating

0

12.6%

4

Accounts Payable

5

Operating

5

Purchasing

2

Operating

1

44.3%

6

Stores

30

Operating

11

54.9%

7

Personnel

15

Operating

3

28.9%

8

Mayor & City Manager

29

Operating

8

36.3%

9

City Clerk & Council

33

Operating

(2)

-5.8%

10

Development Services Director

9

Operating

2

33.2%

11

Other

1

Operating

1

TOTAL

Amount

Transactions Out From RD

Sch. 3; line 9

Working Paper Reference

(1) -15.0%

(3) -70.0%

202

31

18.4%

2008 Actual Line No.

CrossRef.

Transactions In To RD

Affiliate

Nature of Service

Corporate Allocations to RD TFO

Information Technology

44

Operating

13

Accounting

20

Operating

14

Accounts Receivable

1

Operating

15

Accounts Payable

6

Operating

16

Purchasing

1

Operating

17

Stores

20

Operating

18

Personnel

11

Operating

19

Mayor & City Manager

21

Operating

20

City Clerk & Council

35

Operating

21

Development Services Director

7

Operating

22

Other

5

Operating

12

TOTAL

Amount

Sch. 3; line 9

Transactions Out From RD

171

Note: (1) List of Services need to be identified by the individual utilities, however, should show sufficient breakdown to allow for reasonable understanding of operation (2) Identify in columns titled Transaction In and Transactions Out, the account type that the entry was recorded as. (3) Provide cross reference for each item to schedules in this package (4) To be Reconciled to Audited Financial Statements

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 8

The City of Red Deer TFO SUMMARY OF PAYROLL AND MANPOWER STATISTICS FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s)

SALARIES, WAGES AND EMPLOYEE BENEFITS Line CrossNo. Description Reference Gross Salaries and Wages 1 Transmission Operations 2 Distribution Operations 3 Retail Operations 4 Transmission Capital 5 Distribution Capital 6 Retail Capital 7 Other 8 Salaries and Wages Charged to Utility Operations 9 10 11 12 13 14 15 16 17

Gross Employee Benefits Transmission Operations Distribution Operations Retail Operations Transmission Capital Distribution Capital Retail Capital Other Benefits Charged to Utility Operations

EMPLOYEE ALLOCATION Line No.

1 2 3 4 5 6

2009 Actual

Description

CrossReference

Manpower Statistics Total Regular Employees (FTEs) Total Temporary Employees (FTEs) Total Contract Staff (FTEs) Total Manpower Less: Allocated to DFO Total Manpower - Utility Operations (TFO) (Average numbers for the year)

Wages Benefits

2009 Forecast

2008 Actual

Var. Actual to Forecast

494 na na 0 na na na 494

389 na na 109 na na na 498

120 na na 0 na na na 120

86 na na 24 na na na 110

2009 Actual

2009 Forecast

2008 Actual

Var. Actual to Forecast

Var. %

Var. %

Var. Actual to Prior Year

Var. %

105

27.0%

(109)

-100.0%

(4)

-0.9%

34

39.8%

(24)

-100.0%

10

9.1%

Var. Actual to Prior Year

Var. %

45.0 45.0

44.1 44.1

0.9 0

2.0% 0

0.9

2.0%

39.3 5.7

39.1 5.0

0.2 0.7

0.6% 13.2%

87.3 21.1

Working Paper Reference

Working Paper Reference

99.7 21.9

Definitions: (1) Operations - refers to all costs recorded as operating costs (2) Capital - refers to all costs that have been capitalized (3) FTE information is requested, however, if unavailable, provide gross

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 9

The City of Red Deer TFO SUMMARY OF RESERVE/DEFERRAL ACCOUNTS FOR THE YEAR ENDED DECEMBER 31, 2009 ($000s) 2009 Actual Line No.

Description

Cross-

Opening

Ref.

Balance

Adds

2008 Actual

Amort. Recoveries

Ending

Opening

Balance

Balance

Ending Adds

Amort. Recoveries Balance

Var. Actual to

Var.

Working Paper

Prior Year

%

Reference

List of Deferral Accounts 1 2 3

Hearing Cost Reserve Direct Assign Capital Deferral ROE Deferral

4

Total Deferred Assets

5

Self-Insurance Reserve

6

Total Deferred Liabilities

Sch 11

Sch 11

(70.2) (29.7) (8.4)

0.0 0.0 0.0

0.0 0.0 0.0

0.0 (29.7) (8.4)

(70.2) 0.0 0.0

(70.2) (10.2) (5.9)

0.0 (19.5) (2.4)

0.0 0.0 0.0

0.0 0.0 0.0

(70.2) (29.7) (8.4)

0.0 29.7 8.4

0% -100% -100%

(108.2)

0.0

0.0

(38.0)

(70.2)

(86.3)

(21.9)

0.0

0.0

(108.2)

29.7

-27%

100.0

0.0

0.0

0.0

100.0

66.7

33.3

0.0

0.0

100.0

(0.0)

0%

100.0

0.0

0.0

(38.0)

100.0

66.7

33.3

0.0

0.0

100.0

(0.0)

0%

Notes: (1) List of accounts need to be identified by the individual utilities, however, should show sufficient breakdown to allow for reasonable understanding of operation (2) Explain "Other" (3) To be reconciled to Audited Financial Statements (4) Variance analysis is on Ending Balance

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 10

The City of Red Deer TFO RECONCILIATION OF FINANCIAL REPORTING SCHEDULES TO AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2009 INCOME STATEMENT ITEMS ($000s)

Line No. 1 2 3 4 5 6 7 8 9

Description

CrossReference

Revenues Adjustment 1 Adjustment 2 Adjustment 3 Adjustment 4 Reclassification 1 Reclassification 2 Reclassification 3

Financial Statements

Adjustments

1,676

Sch 1

10 Operating and Maintenance 11 Reserve Funding 12 Adjustment 2 13 Reclassification 1 14 Disallowed Expenses 15

1,676

1,213 (38)

Sch 1

1,175

16 Depreciation and Amortization 17 18 Sch 1

336

19 Income Tax 20 21

n/a Sch 1

22 Revenue Offsets 23 24

25 Return

Utility Total

336

0

0 0 0 0 0 0 0 0 0

2009 Financial Results Distribution Transmission Retail

1,676

1,676

0 0 0 0 0 0

1,213 (38)

0 0 0

336

1,175

336

n/a

0

0

Sch 1

0

0 0 0

Sch 1

165

0

1,676

n/a

1,676

1,676

0

1,676

1,213 (38)

0

1,175

1,213 (38)

0

336 0

n/a 0 0

Utility Total

336

336 0

n/a

0

0

0

0

0

0

0

0

0

165

165

1,175

336

n/a 0

0

0

0

0

165

Please Note: The City of Red Deer's Electric Light & Power Department is primarily a DFO, and consequently does not produce a formal or internal income statement for its limited TFO functions. Consequently there is no internal, external, audited, or unaudited TFO income statement appropriate for this reconciliation. This note applies to schedule 11 as well.

City of Red Deer (TFO)

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

SCHEDULE 11

The City of Red Deer TFO RECONCILIATION OF FINANCIAL REPORTING SCHEDULES TO AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2009 BALANCE SHEET ITEMS ($000s)

Line No. 1 2 3 4 5 6 7 8 9

Description Assets Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 Item 7

10 Liabilities 11 Item 1 12 Item 2 13 Item 3 14 Item 4 15

16 Equity 17 Item 1 18

City of Red Deer (TFO)

CrossReference

Audited Financial Statements

Adjustments

20X3 Financial Results Distribution Transmission Retail

Total

Total

0.000

0.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.0

0.0

0.0

0.0

0.0

0.0 0.0 0.0 0.0 0.0

0.0

0.0

0.0

0.0

0.0

0.0 0.0

0.0

0.0

0.0

0.0

0.0

n/a - please see note at the bottom of schedule 10. 0.0

0.0

0.0 0.0

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)

The City of Red Deer TFO (RD) Variance Explanations for Schedules 1 to 11- 2009 Actual Results vs. 2008 Actual Results 2009 Rule 005 Annual Financial Reporting - Interim Rate in place pending AUC's final decision on 2009 Revenue Requirements Criteria: $100K, or 10% and having a dollar amount >$50K. Variance Actual 2009 to Actual 2008 ($000's) % Explanation 1

Schedule 1 Summary of Revenue Requirement

2

line 2 Operating and Maintenance

3

line 4 Reserve/Deferral Account Funding

4 5

6

101

9.1% Higher O&M cost is almost equally the result of inflation on labour & supplies, and removal of stores from rate base and conversion to an annual lease cost. See schedule 3. (71) -215.2% Lower Reserve/Deferral Account Funding is the result of no addition to Self Insurance Account in 2009 and refunding the amounts in ROE and Direct Assign Deferral Accounts as per AUC decision 2009-264.

Schedule 2 Summary of Return on Rate Base line 4 Common Equity

(70) -138.7% This line serves as a balance entry, lower 2009 common equity compared to 2008 is the result of an interim rate being in place for 2009 pending AUC's final decision.

Schedule 2.1 Summary of Mid-year Rate Base

7 8 9

line 1 Goss Utility Plant In Service - Opening Balance line 2 Gross Utility Plant in Service - Closing Balance line 4 Accumulated Depreciation - Opening Balance

394 1,064 (152)

10

line 5 Accumulated Depreciation - Closing Balance

(552)

11

Schedule 3 Summary of Operating and Maintenance Expense

12

line 2 O&M Supervision and Engineering

117

13

line 4 O&M Station Equipment Expenses

(103)

14

line 5 O&M Miscellaneous Transmission

73

15

3.5% Higher opening balance in 2009 is due to the installation of new SCADA system in 2008. 9.0% Higher 2009 closing balance compared to 2008 is the result of the new EL&P building. -2.0% Lower 2009 accumulated depreciation opening balance is the result of the retirement of old SCADA system in 2008. -7.3% Lower 2009 accumulated depreciation closing balance is the result of the retirement of the old EL&P and stores buildings in 2009.

28.3% The increase in Supervision and Engineering is the result of benefit rate increase from 22% to 24%; salary adjustment, increase in transmission allocation factor for Senior Planning Engineer from 50% to 75% and for Planning Engineer from 80% to 90%. -47.5% The lower O&M substation equipment expenses in 2009 is the result of capitalizing some of the substation maintenance contracted services as per the AUC Decision 2009-264. 77.9% The increase is primarily caused by the new Stores Lease Cost .

Schedule 8 Summary of Payroll and Manpower Statistics

16

line 1 Gross Salaries and Wages-Transmission Operations

17

line 4 Gross Salaries and Wages-Transmission Capital

City of Red Deer (TFO)

105

27.0% Result of Increase in O&M Supervision and Engineering cost. See explanation provided on line 12 above. (109) -100.0% In 2009 no internal labour cost was charged to transmission capital projects as all projects were handled by external contractors.

5/20/2010

2009 Rule 005 (Compared to 2008 Actual)