Financial Forecasts

Schneider Engineering's (SE) Financial Forecasts services allow Clients to prudently plan the financial future of the utility. SE Financial Forecasts consider economic factors that include projected MWH purchases and sales (by revenue class), power costs, capital expenditures, operating costs, debt payments and the impact of these economic factors to equity, TIER (Times Interest Earned Ratio) and DSC (Debt Service Coverage) goals and other economic factors.

Key issues and considerations for the Financial Planning process include:

• Equity and debt ratios
• Cash and general funds
• Capital Credits Retirement
• Capital Requirements

The planning process results in the utility having the information to:

• Determine if / when a rate change is required
• Understand the current and projected financial condition of the utility
• Develop a clear plan for debt and equity goals
• Support loan applications

The result is a Financial Forecast that provides system management, governing bodies and lenders a clear understanding of the Client's current and projected financial position.