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F O C U S E D O N O U R : C U S T O M E R S F O C U S E D O N : T H E F U T U R E ANAHEIM OWNED. ANAHEIM FOCUSED. L E T T E R F R O M T H E G E N E R A L M A N A G E R F O C U S E D O N O U R : C O M M U N I T Y F O C U S E D O N : S U S T A I N A B I L I T Y F O C U S E D O N : R E L I A B I L I T Y F O C U S E D O N : K E E P I N G R A T E S L O W F O C U S E D O N : S U P P O R T I N G A N A H E I M O N L I N E F I N A N C I A L R E P O R T T A B L E O F C O N T E N T S : : P L E A S E C L I C K B E L O W 2 0 1 4 A N N U A L R E P O R T ---PAGE BREAK--- 2 0 1 4 A N N U A L R E P O R T WE’RE FOCUSED ON MAKING ANAHEIM BETTER THAN EVER. In 1895, some 38 years after Anaheim’s founding, its residents were full of renewed optimism. A new century was upon them, bound to bring new advances in technology, medicine, and food production. But that year, they also funneled their optimism into voting to create and operate the town’s own utility — something they hoped would dramatically improve their quality of life, give them reliable and affordable power and water, and help them become more self-sufficient. They were successful! Nearly 120 years later, Anaheim Public Utilities — Orange County’s only customer-owned, not-for-profit utility providing both water and power — is still delivering on that promise, adding a level of comfort, convenience, and peace-of-mind that is helping more than 348,000 residents and 15,000 businesses in our 50-square-mile community thrive. And not just thrive, but grow to become the county’s second largest city and the 10th largest in the state. While the population over the years has grown, demand has heightened and we face such challenges as severe drought, we are still committed to ensuring an adequate supply of water at competitive rates. We’re working closely with the community to enhance efficient use and conservation. Our partnerships with local water agencies keeps our technologies in the forefront of innovation, and our water supply affordable and reliable. When it comes to electricity, we have adopted a similar mission. Our 13 high voltage substations, 109 circuits, and ever-growing network of undergrounded power lines ensure that we continue to provide dependable, affordable electricity, respond quickly to emergencies, and secure future power needs. Of course, part of that future is making renewable power and other sustainable options an even greater priority. Our tagline, “Anaheim Owned. Anaheim Focused.” sums up so well what we do. Clearly our focus in 2013-14 — like every year — was on Anaheim and the people who live and work here. Whether it was improving customer service and convenience with our new Customer Information System; enhancing safety and aesthetics through undergrounding miles of aging electric wires and poles; expanding sustainability with numerous solar projects; or upgrading facilities and equipment city-wide to ensure the highest degree of reliability, we are constantly focused on the community and ensuring that it continues to prosper. If those early Anaheim pioneers knew what an impact their votes actually made in the long-run, they’d be as proud as we are today. Dukku Lee General Manager, Anaheim Public Utilities 0 1 L E T TE R F R O M T H E GENERAL MANAGER ---PAGE BREAK--- 2 0 1 4 A N N U A L R E P O R T Anaheim Public Utilities was built from the ground up for a very specific group: the people and businesses of Anaheim! That means we are solely focused on delivering services that meet their specific needs and that make life in Anaheim easier, more convenient, and more affordable. This past year, that’s exactly what we accomplished in some unique and exciting ways — and why 93% of those surveyed said that we met or exceeded service expectations for effectiveness, responsiveness, and courtesy. Here are a few ways we did it: CUSTOMER INFORMATION SYSTEM Our new Customer Information System (CIS) is a state-of-the-art computerized system that makes processes faster and easier, puts more helpful information at customer fingertips, and greatly enhances our ability to deliver superior service. Customers can now access account data, get alerts and updates, and connect with service through the web or smart apps on their phones — in addition to traditional ways, including phone and in-person. RESPONSE TIME Speedy response time is one of our trademarks. We continued to rank among the fastest of all regional utilities in streetlight repair, restoring service outages, and ensuring the highest levels of service uptime. EASY PAYMENTS When it comes to our ongoing focus on reducing fees, streamlining processes, and making it easier for our customers to comply with local, state, and federal regulations, we’ve succeeded on numerous fronts. Customers can now enjoy greater flexibility and ease when paying deposits and fees and receiving credit. They can expect an expedited plan check process to ensure projects keep moving forward. And we are now able to more quickly issue fee waivers and courtesy credits for any meter or billing inconsistencies. F O C U S E D O N O U R CUSTOMERS 0 2 ---PAGE BREAK--- 2 0 1 4 A N N U A L R E P O R T F O C U S E D O N O U R COMMUNITY The people who live here, as well as the companies and organizations that do business here, all help create the wonderful community we call Anaheim. When we do our part to enrich this community, we are enriching the lives and experiences of those who make this city home — which is why we participate, help, and get involved in so many events and activities each year. In this past year alone, we were an integral part of nearly 50 community events! IN THE COMMUNITY… We worked hard to support people, projects, and public events, helping to upgrade life in our city. Some of our proudest moments included sponsoring health fairs where community residents received free health screenings; keeping the city beautiful through an innovative graffiti abatement program featuring such methods as artificial ivy and paint-resistant sealants; stopping fraudulent solicitors in their tracks through thousands of informative phone messages and door hangers; and taking water conservation at Ponderosa Park to new levels through an underground reclaimed water storage tank that saves 2 million gallons a year. We were also honored to participate in seasonal festivals, benefits for such diseases as leukemia and and numerous events supporting residents in our armed forces. IN THE SCHOOLS… We connected with thousands of young students as we participated in career fairs, community college tours, education festivals, safety, as well as conservation outreach, and Public Power Week and Water Awareness Month events. We even sponsored scholarships, student projects, book giveaways, and contests to help kids further their education as well as learn about sustainability, safety, and good citizenship. Our impact in the schools earned us the Golden Hub of Innovation award from the Association of California Cities of Orange County for helping the district save approximately $1.2 million per year in utility costs and reduce emissions equivalent to taking 916 vehicles off the road. IN INDUSTRY… We’re making it easier for Anaheim companies and organizations to focus on business, improve their bottom lines, and run as efficiently as possible. Numerous rebate programs for everything from solar energy collection and use and EV chargers to irrigation and lighting efficiencies are helping to promote a more sustainable city. Training programs and support prepare businesses for emergencies. Plus, our regulatory assistance means faster plan checks, prompt temporary service during construction, lower or eliminated fees, and help with permits and paperwork. 0 3 ---PAGE BREAK--- 2 0 1 4 A N N U A L R E P O R T We are focused on doing what’s best for Anaheim and the people who live, work, and play here. Long-range, sustainable, and cost-efficient solutions are always a part of our strategy, and that often means a proactive approach to generating and delivering power and water to our customers. Each year, we continue to reduce our carbon footprint through conservation and efficiency programs, by expanding and expediting our use of renewable resources, and by making smarter choices like natural gas over coal. These kinds of choices — paired with our water conservation rebate programs and customer education — have also helped us reduce water supply costs while increasing groundwater supply, despite the region’s drought conditions. The result is continued water supply reliability for our customers. RENEWABLE POWER We’ve met the state’s current goal of having 20% renewable power in our resources mix and will meet or exceed the ultimate goal of 33% by 2020. This includes utilizing such renewable sources as biomass and waste, geothermal, hydroelectric, solar, and wind. WATER CONSERVATION Thanks to our many conservation programs that help our customers more easily take advantage of money- and water-saving measures, we saved 37.3 acre feet of water during FY2014. That’s enough water to supply about 112 families a year! In the process, we helped more than 400 residents receive rebates for investing in such water-conserving products as high-efficiency clothes washers and toilets. F O C U S E D O N SUSTAINABILITY 0 4 42% GEOTHERMAL 34% WIND 22% BIOMASS/BIOGAS 1% SMALL HYDROELECTRIC 1% SOLAR ---PAGE BREAK--- 2 0 1 4 A N N U A L R E P O R T F O C U S E D O N RELIABILITY Everything we do is to ensure our customers get the water and power they need, when they need it, and at an affordable price. For us, that kind of reliability goes well beyond delivery they can count on. It includes consistent quality, steady pricing, rock-solid customer service and responsiveness, and the foresight and planning necessary to ensure everything from our equipment to our suppliers and resources will enable us to provide for our community well into the future. The result of this impeccable approach to reliability? Anaheim’s water and power services are multi-award-winning and consistently recognized among the top in the nation. This year, the American Public Power Association again awarded us the title of Reliable Public Provider (RP3) — a distinction we have held since the award began in 2006. This designation is given to less than 10% of the 2000+ public power agencies nationwide for excellence in reliable day-to-day service and safety performance. We received further impressive feedback and notability from the Western Electric Coordinating Council after an extensive audit of our operations, maintenance, and data modeling. The high praise we received demonstrates our commitment to safety, security, and compliance and is an important measure of excellence in the industry. Our water services, too, are equally decorated. We are one of just a few cities nationwide with a Class 1 water system — one reason we received the Association of Metropolitan Water Agencies’ Gold Award for Exceptional Utility Performance, ranking us in the top national performance quartile for water system reliability. In delivering nearly 60 million gallons of water daily, we perform more than 47,000 water tests each year to achieve high quality results while maintaining our reputation of delivering some of the cleanest best tasting water in the U.S. 0 5 ---PAGE BREAK--- 2 0 1 4 A N N U A L R E P O R T F O C U S E D O N T H E FUTURE Our commitment to excellence and continuous improvement has helped us deliver the kind of results our customers have come to expect. By staying on the forefront of advances in our industry, we continue to be in prime position to serve our customers through responsive and effective service. Our focus on efficiency, reliability, and sustainability has also provided strong results and opportunities to continue servicing the Anaheim community for years to come. SAFETY AND EMERGENCY PREPAREDNESS In the last year, we applied for and received two no-cost 2,000-gallon water tanker trailers from the Water Emergency Response Organization of Orange County for use during emergencies or planned service outages. We also recently partnered with the Anaheim Fire Department to provide several solar-powered cell phone chargers in the event of an extensive power outage. Our extensive safety training and emergency preparation is an ongoing effort to ensure that we can make service repairs, partner with other response teams, and help the community during emergencies in the most useful ways possible. SERVICE CONTINUITY Maintaining a high level of service reliability as well as beautifying our city often go hand-in-hand with our safety initiatives. Our underground conversion program during 2013-14, for example, replaced 2.6 miles of overhead poles and wires with underground conduit and equipment. This not only insulates our equipment from storms and airborne disturbances, but clears Anaheim’s skyline. In the same vein, we replaced approximately 50,000 feet of degraded direct-buried cable and installed 40 underground and overhead switches and other equipment that make it possible to remotely monitor outages and restore power quickly. CUSTOMER SERVICE Our attention to our customers is reflected in our investment in a new, state-of-the-art Customer Information System. This advanced computer system went online in June 2014, instantly upgrading outdated billing, customer information, field services, and treasury functions. It not only enables staff to use and provide real-time information, but gives customers a wide range of easy tools to access account information, request services, and make online payments. 0 6 ---PAGE BREAK--- 2 0 1 4 A N N U A L R E P O R T WATER EFFICIENCY AND SUSTAINABILITY Conservation and sustainable initiatives are an integral part of who we are and what we do. This past year, we made significant strides in making Anaheim even more energy efficient and environmentally friendly. We deployed efficient LED street lights along with undergrounding projects, improved our solar program to encourage greater participation, and installed fast electric vehicle chargers at key locations throughout the city to support the growing trend toward cleaner-running transportation. In addition, our Water Recycling Demonstration Project won an Award of Merit from Engineering News Record for its innovative and smart design. LINDA VISTA RESERVOIR AND PUMP STATION We replaced a 49-year-old earthen-lined reservoir with a modern, concrete tank that meets seismic codes. The reservoir and pump station are now operational and reliably serve groundwater to central, south, and east Anaheim. ELECTRIC LEWIS SUBSTATION UPGRADES We upgraded equipment and efficiencies, making repairs much easier and less expensive, and improving how our grid handles short circuits. ANAHEIM CONVENTION CENTER SOLAR ROOFTOP We began work on the largest city-owned, convention center roof-mounted solar system in North America. Covering 300,000 sq. ft. above three exhibit halls, and featuring 7,908 solar panels, the completed 2.4-megawatt system will generate 3.6 million kilowatt-hours of electricity — enough to power 600 homes for an entire year. OPTIMIZING OUR INFRASTRUCTURE Each year, we upgrade, improve, and add to our city-wide infrastructure to enhance reliability and operational efficiency and to keep us ready for the future. Proactive and ongoing investment in critical infrastructure can save money in the long-run from costly repairs and outages. Here are some of last year’s highlights: 0 7 ---PAGE BREAK--- The quality, reliability, and high level of service that Anaheim Public Utilities provides comes at a cost — and we’re proud to report that for our customers, that cost is lower than almost anywhere in Orange County. Each year, we work hard to keep water and power rates as low and affordable as possible. We do that through ongoing innovation, regular efficiency upgrades, and smart business practices. Here are the results of that diligence: WATER RATES AMONG THE LOWEST Anaheim ranks among the lowest of all Orange County water agencies when it comes to customer costs. That means water for the typical household in our city is more affordable than the average elsewhere in Orange County. ELECTRIC RATES LOWEST IN COUNTY Anaheim delivers power to our customers at rates almost 10% lower than any other provider in Orange County — and without the user tax that other utilities commonly charge. And because we use a simple two-tiered approach to residential rates as opposed to multiple tiers, that savings increases as usage goes up. F O C U S E D O N KEEPING RATES LOW 0 8 2 0 1 4 A N N U A L R E P O R T ---PAGE BREAK--- We believe Anaheim is a wonderful place — and we’re doing our part by being the best utility we can be. As you’ve seen on the previous pages, our overarching mission goes far beyond our day-to-day functions of delivering cost-efficient power and water to Anaheim. Working hand-in-hand with our management team to accomplish these goals is our Public Utilities Board. This seven-member task force of Anaheim residents — impartially representing the public’s interests — is appointed by the Anaheim City Council to advise them on utility matters, from water sources and power supplies to renewable energy options, water conservation and efficiency incentives, rates and budgets. Their community-mindedness often extends well beyond utility business to include volunteering and leadership in such city organizations and causes as the Anaheim Boys and Girls Club, Anaheim Museum and Historical Society, Anaheim Library, Anaheim Fire Department, Anaheim Community Services Board, school boards, and many more. PUBLIC UTILITIES BOARD Dukku Lee, General Manager Janet Lonneker, Assistant General Manager, Electric Services Brian Beelner, Assistant General Manager, Finance and Administration Steve Sciortino, Assistant General Manager, Joint Services Don Calkins, Assistant General Manager, Water Services 2 0 1 4 A N N U A L R E P O R T F O C U S E D O N SUPPORTING ANAHEIM 0 9 John Machiaverna Chairperson David Wain Board Member Chip Monaco Board Member Lon Cahill Board Member Diane Singer Vice Chairperson Robert W. Hernandez Board Member Susan Faessel Board Member ---PAGE BREAK--- ANAHEIM OWNED. ANAHEIM FOCUSED. A N A H E I M P U B L I C U T I L I T I E S Anaheim West Tower 201 South Anaheim Boulevard Anaheim, CA 92805 [PHONE REDACTED] ANAHEIM.NET/UTILITIES CLICK BELOW TO ACCESS OUR ELECTRIC WATER F I N A N C I A L R E P O R T S