ANAHEIM PUBLIC UTILITIES20 18 ANNUAL REPORT

Remember the days of paper maps? I’m dating myself, but when we used to plan out family vacations, we would go get paper maps and highlight our route. When changing course due to a traffic accident or construction, unfolding and re-folding the map was no easy task. Today, paper maps are just about non-existent. Smart technologies not only chart out our routes, they can also help us navigate around detours and talk to us in different voices and languages. Map apps have simplified our lives through technology and improved our driving experience by saving time, reducing idling, and lowering vehicle emissions.

At Anaheim Public Utilities, we are on a lifelong journey of incorporating technology to make us a better utility provider, and to improve the customer experience, save time, optimize performance, and measure our effectiveness. In the past year, we’ve made many strides forward and I’d like to highlight some of this year’s accomplishments. Earlier this year, City Council approved an agreement with a solar developer who will be installing a large-scale solar farm in Riverside County. The solar farm will utilize batteries to store energy and discharge when it’s needed the most, during late afternoons as solar power drops off. The energy will be delivered to Anaheim starting in late 2020.

In the spring, we held our Spring Greening events throughout the city and had over 700 participants. Our team provided residents with 183 energy efficient Dusk-to-Dawn fixtures to light up their properties, signed them up for 60 free shade trees, and helped complete 145 home surveys to find ways to lower their bills.

Our City Council also approved the Integrated Resource Plan, which is a roadmap to a more sustainable utility. It outlines our goal to transition towards increasing amounts of green power supplies such as wind, solar, geothermal and landfill gas, of which we have now reached the 30% mile marker.

In early summer, we started construction of our inaugural Solar for Schools projects that include solar-powered carport and lunch shade structures at nine local campuses. Altogether, the sites will deliver 1.5 megawatts of clean power and students at the schools will be able to download and analyze data from their very own solar system. A corresponding income-qualified program was developed and customers who typically do not have access to solar power are now signing up to benefit from the energy produced by Solar for Schools.

Our La Palma Water Complex also received a rehabilitation after 60 years of daily use and was dedicated in July. The complex consists of a new 4-million gallon reservoir that helps manage fluctuations in water use throughout the day. Aging pumps, pipes, and electrical equipment were replaced at the facility that had served Anaheim residents well, but was at the end of its useful life. Angelica L., a summer intern from Katella High School, gave a speech on the importance of water quality to the audience. Angelica was also a recipient of the inaugural student scholarship program that will help her in her environmental studies at University of California, Irvine.

Moving forward, we have many other projects and plans to help us continue on the road to a safer, cleaner, and more efficient Anaheim. For example, Anaheim’s Wildfire Mitigation Plan, which identifies strategies to mitigate the potential for wildfires through proactive measures such as inspections, tree trimming, infrastructure hardening, cameras, fire weather assessments, and future undergrounding, is being developed. In collaboration with Anaheim Fire & Rescue, levels of fire threat zones were identified to be consistent with state practices. Fortunately for Anaheim, 98% of overhead lines in the highest fire threat zones are already underground, but we are certainly not being complacent on this major issue. New technologies and collaboration with universities, fire officials, and other utilities continue to drive our continual planning process.

Another big project currently underway is the LED street lights upgrade. Through this fiscal year, more than 3,544 street lights have been upgraded to the latest LED technology that vastly improves visibility and improves energy efficiency. Our customers have asked to increase lighting along roadways in order to help them feel safer in their communities. We’ve responded by coordinating with Code Enforcement and the Anaheim Police to prioritize areas in need of increased lighting at major intersections, along major roadways, and around parks and schools.

As the only municipally owned electric and water service provider in Orange County, our goal at Anaheim Public Utilities is to utilize technology to be forward-thinking, safe, reliable, affordable, and sustainable.

Dukku LeeGeneral Manager Anaheim Public Utilities

GENERAL MANAGER’S LETTER

ELECTRIC SERVICES

119,552 ELECTRIC METERS

13 SUBSTATIONS

1,110 MILES OF DISTRIBUTION LINES

20,600+ STREET LIGHTS

13,298 TRANSFORMERS

OUR MISSION THIS YEAR —AND EVERY YEAR— IS TO EN SURE THAT RESIDENTS AND BUSINESSES IN ANAHEIM CAN COUNT ON SAFE, RE LIABLE POWER AT AFFORDABLE PRICES. THA N KS TO SYSTEM-WIDE EQUIPME NT AN D TECHN OLOGY UPGRADES, UNDE RG ROUN DING, AND IN FRASTRUCTURE IMPROVEMENTS, WE’VE MADE GREAT STRIDES AND CONTINUE TO PUSH FOR WARD TO ACHIE VE MORE. WE’RE POWERING A HIGH QUALITY OF L IFE IN ANAHEIM BY ENSURING THAT OUR CUSTOMERS CAN COUNT ON ELECTRICITY WHEN THEY NEED IT, SAFER PUBLIC SPACES, AND EXCEPTIONAL AFFORDABILITY.

POWERING LIFE THROUGHOUT THE CITY.

3,544LED STREET

LIGHTS INSTALLED TO-DATE

128 CIRCUIT MILESOVERHEAD LINES PLACED UNDERGROUND TO-DATE

1.1 MILLION FEETDIRECT BURIED CABLE REPLACED TO-DATE

RELIABILITY: TOP 25% FOR U.S. PUBLIC

UTILITIES FOR FREQUENCY AND

DURATION OF OUTAGES

2.1 DAYSAVERAGE STREET

LIGHT REPAIR TIME

60OVERHEAD

TRANSFORMERS REPLACED

ACCOMPLISHMENTSRecognized by the American Public Power Association as a Reliable Public Power Provider (RP3).

WATER SERVICES

7,842 FIREHYDRANTS

64,000WATER METERS

9PUMP STATIONS

13STORAGE TANKS

23,000VALVES

14RESERVOIRS

15ACTIVE WELLS

753 MILES OF WATER MAINS

EACH Y EAR, WE PROACTIVELY REPL ACE AND UP GRADE WATER MAINS, VALVES, P UMPS, AND OTHER E Q UIPMENT TO MAKE SURE EACH AND EVER Y CUSTOMER HAS SAFE AND HIGH QUALITY WATER.

KEEPING ANAHEIM FLOWING IN THE RIGHT DIRECTION.

Recognized as a Platinum Award recipient from the Association of Metropolitan Water Agencies for Utility Excellence.

ACCOMPLISHMENTS

WATER MAINS REPLACED: 19,000 FT.

VALVES TESTED: 6,836

WATER QUALITY TESTS: 44,000

• REPLACED 4-MILLION GALLON RESERVOIR • UPGRADED TO MEET CURRENT SEISMIC REQUIREMENTS • PUMPS 6,250 GALLONS/ MINUTE

RATES 30% LOWER THAN AVERAGE

ORANGE COUNTY WATER UTILITIES

PUMP STATIONS REPLACED: 1

MAIN BREAKS: 3.9 PER 100 MILES OF

PIPE (65% LOWER THAN NATIONAL AVERAGE)

HYDRANT INSPECTIONS: 2,375

LA PALMA REHABILITATION

CUSTOMER SERVICE

CUSTOMER SERVICE STARTS WITH THE BASICS – RESPONDIN G TO CALLS QUICKLY, PROVIDING HELPFUL INFORMATIO N , AND FINDIN G SOLUTIONS TO OUR CUSTOMERS’ SPECIFIC CIR CUMSTANCES. BY L ISTENING TO OUR CUSTOMERS, WE’VE TAK EN STEPS TO EXPAND SE R VICE OFFERIN GS INCLUDING OPENING SATURDAY MORNIN G SER VICE, OFFERING A MON THLY BILLING OPTION, AND OFFE RIN G REBATES TO IMPROVE SAFETY AND LOWER UTILITY BILLS.

ANAHEIM OWNED. ANAHEIM FOCUSED.

ACCOMPLISHMENTS

SURVEY CATEGORIES RATED “GOOD” OR ABOVE BY OUR CUSTOMERS:

TIME TO RESPONDAVERAGE TELEPHONE

WAIT TIME: 2.3 MINUTES

EMPLOYEE COURTESY

AVERAGE MONTHLY CALLS TAKEN: OVER 19,000

EMPLOYEE EFFECTIVENESS

CUSTOMER SATISFACTION

90%

92%

91%

93%

SUSTAINABILITY

INVESTING IN OUR COMMUNITY’S LONG -TERM HEALTH REQUIRES SUSTAINABLE PRACTICES THAT REDUCE AIR POLLUTION AN D LOWE R OUR COLLECTIVE CARBON FOOTPRINT. HELPING CUSTOMERS SWITCH TO ZERO EMISSION V EHICLE S FUELED BY GREEN POWER, REPL ACE OLDER INEFFICIEN T APP LIANCES, OR IN STALL DROUGHT TOLE RANT GARDENS ARE STEPS TOWARDS A SUSTAINABLE CITY.

A CLEANER, GREENER ANAHEIM.

IN CUSTOMER BILL SAVINGS

HOME EFFICIENCY CHECKUPS

REGISTERED EVS IN ANAHEIM

SOLAR CONNECTIONS PROVIDED TO DATE

PUBLIC EV CHARGERS AVAILABLE

GALLONS

ANNUAL WATER SAVINGS

ANNUAL ELECTRICITY SAVINGS

ENERGY AND WATER EFFICIENCY REBATES

PROVIDED

KWH

$2.4M

1,743

2,047

3,050

207

17,000,000+

3,200+

26,000,000+

ACCOMPLISHMENTS

COMMUNITY ENGAGEMENT

ACCOMPLISHMENTSRecognized by the American Public Power Association as a Reliable Public Power Provider (RP3).

HELPING OUR COMMUNITY SHINE.

LEADERSHIP

THE ANAHEIM CITY COUNCIL PROVIDES T HE OVERARCHING VISION OF THIS MISSION. LED BY A MAYOR AND SIX DISTRICT-SPECIFIC COUN CIL MEMBERS ELECTED BY THE PUBLIC, THE POLICIES T HEY CREATE AN D INITIATIVES THEY PR OMOTE HELP GUIDE OUR CITY WITH WISDOM AND AN EYE TO THE FUTURE.

MAYOR: Harr y S idhuDISTRICT 1: Denise BarnesDISTRICT 2: Jordan BrandmanDISTRICT 3: Jose F. Mo renoDISTRICT 4: Luci l le K r ing, Mayor Pro TemDISTRICT 5: Stephen FaesselDISTRICT 6: Tre vo r O’N ei l

ANAHEIM PUBLIC UTILITIES LEADERSHIP

CITY COUNCIL

THE SEVEN-MEMBER PUBLIC UTILITIES BOARD WORKS ALONGSIDE THIS COUNCIL, AS WE LL AS WITH UTILITY MANAGE MEN T, TO ENSURE WE ARE DOIN G EVER YTHING POSSIBLE TO BEST REPRESENT OUR CUSTOMERS.

THE ANAHEIM PUBLIC UTILITIES MANAGEMENT TEAM THEN TRANSL ATES THAT CITY V ISION AN D CULTURE INTO OUR DAILY WATER, ELECTRIC, AND OUTREACH-BASED ACHIE VE MEN TS AND SER VICE.

DISTRICT 1: Jul ie Showalter DISTRICT 3: Vincent Baroldi DISTRICT 4: AB AbdulrahmanDISTRICT 5: Ernesto Medrano, ChairpersonAT LARGE: Robert NelsonAT LARGE: V ictor ia Ramire zAT LARGE: John Se ymour, V ice -Chairperson

DUKKU LEE General Manager

JANET LONNEKER A ssistant General Manager, E lectr ic Ser vices

BRIAN BEELNER A ssistant General Manager, Finance and Administrat ion

GRAHAM BOWEN A ssistant General Manager, Power Supply

MICHAEL MOORE A ssistant General Manager, Water Ser vices

JANIS LEHMAN Chief R isk Off icer

DAVID ALBAUGH Administrat ive Ser vices Manager

ANAHEIM PUBLIC UTILITIES BOARD

ANAHEIM PUBLIC UTILITIES STAFF

FINANCIALS

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ANAHEIM PUBLIC UTILTIESANAHEIM WEST TOWER

201 S . ANAHEIM BLVD. , CA 92805

714-765-3300ANAHEIM.NET/UTILITIES

FINANCIAL REPORT