Combined Utility System Liquidity Replacement Finance Summary

Presentation of the Combined Utility System Liquidity Replacement Finance Department's summary for liquidity types, series, banks, and financing programs. Details include CP programs supporting CUS's CIP, VRDBs series, and liquidity agreements with highly rated banks. Recommendations for financing methods to support the System's capital improvement program are outlined.

• Finance
• Liquidity
• Replacement
• Commercial Paper
• Capital Improvement

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1. Combined Utility System Liquidity Replacement Finance Department Kelly Dowe, Director Presented By: Jennifer Olenick, Deputy Assistant Director Public Finance January 31, 2011

2. CUS Liquidity Summary Size Liquidity Type Series Bank Expiration ($ millions) 250.00 B-1 B-2 B-3 B-4 B-5 B-6 Total JPMorgan Chase Wells Fargo Bank of Tokyo-Mitsubishi Barclay's Vacant Citibank 12/16/2013 12/14/2012 1/20/2015 7/15/2013 N/A 7/15/2013 75.00 75.00 100.00 100.00 100.00 700.00 Commercial Paper 2004B-1 2004B-2 2004B-3 2004B-4 2004B-5 2004B-6 2008D-1 Total 225.00 100.00 75.00 75.00 100.00 78.33 132.01 785.34 Bank of America State Street Sumitomo JPMorgan Chase Lloyd's Scotia JPMorgan Chase 12/16/2013 4/5/2013 4/6/2012 4/6/2013 4/6/2013 4/6/2012 12/31/2012 Variable Rate Demand Bonds 2010 B-1 2010 B-2 Total 200.00 49.08 249.08 RBC RBC 3/22/2013 3/23/2013 Put Bonds 2

3. CUS Commercial Paper Series B-5 The Series B-5 CP program will support the CUS s CIP. Commercial paper has proven to be a cost-effective method of financing the System s capital improvement program; saving the System millions of dollars in debt service. The Finance Working Group recommends obtaining an aggregate amount of $100 million and entering into an agreement with a highly rated bank to support the Series B-5 CP program. The specific bank(s) selected for this transaction will be presented to Council through an RCA that is forthcoming. RCA is expected to be brought before Council in February. 3

4. CUS VRDBs Series 2004B-3 & B-6 Variable rate bonds are another cost-effective method of financing the System s capital improvement program. The current facilities will expire April 6, 2012. The Finance Working Group recommends maintaining the aggregate amount of capacity at $153.33 million and entering into new liquidity agreements with highly rated banks to support the Series 2004B Bonds. The specific banks selected for this transaction will be presented to Council through an RCA that is forthcoming. RCA is expected to be brought before Council in February or March. 4