The Lower Colorado River Authority Transmission Services Corporation reported a year‑to‑date net margin slightly above budget and a year‑end forecast close to budget despite a delayed rate case.

Mr. Jim Travis, who presented the Transmission Services Corporation (TSC) financial highlights, told the board the delay in approval of the company’s rate case affected cost‑of‑service revenue but that other items offset the shortfall. “Even with this delay, we’re expecting to achieve our budget, near budget year end performance,” Travis said.

Travis said TSC’s year‑to‑date net margin was favorable by about $2,200,000 (roughly 1 percent) compared with budget. He attributed the favorable year‑to‑date position mainly to higher interest income and miscellaneous revenues, the largest of which comes from a rebuilding project for Austin Energy in which TSC is charging for both work and materials.

Expenses were running higher year to date — about $7,100,000 (approximately 5 percent) above budget — primarily driven by outside services tied to the Austin Energy project and higher facility lease costs related to the rate‑case delay. Those higher costs were partly offset by lower labor, transportation and enterprise expenses.

For fiscal year end, Travis said TSC expects total revenues to finish above budget primarily because of the Austin Energy project, while expenses are also forecast to end higher than budget. At the current forecast he said TSC expects to fall slightly short of the budgeted net margin — by about $3,200,000, or roughly a negative 1 percent.

On debt metrics, Travis said TSC had targeted a debt service coverage ratio of 1.37 but currently forecasts ending the year at about 1.36.

On capital spending, TSC is forecasting to exceed the board‑approved capital budget of $880,600,000 by about $68,000,000, for a current forecast of $948,000,000 (about 108 percent of budget). Travis told the board that increases reflect estimate and schedule changes and several projects added after the 2025 plan was approved; he said staff will return later in the fiscal year if a formal amendment is needed.

Travis noted the board has authorized the president and CEO to approve certain project amendments and projects under $1,500,000 or for generation interconnects; two such amendments and two CEO‑approved projects were reported in the quarter. He said staff will present any recommended capital budget amendments toward the April or May timeframe when projections are firmer.

The board did not take a formal vote in connection with the financial presentation; Travis offered to answer questions and the board proceeded to other agenda items.