3.1.C. ERMUSR 10-12-2010 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE August 2010 Electric P&L Electric Operating Revenue is up $429,833 or I9% from last year, and in line with the budgeted amount. The actual increase in kwh usage is 14.5%, and usage is up in all categories. Compared to a year ago, residential usage is up 25%, small commercial usage is up 14%, industrial usage is up .6%, and the data centers' usage is up 29%. United Healthcare data center usage continues to be up by over 40%, while Target data center is consistent with last year's usage. Other Revenue is up $44,614 or 34%. There is anon-recurring exception item in Miscellaneous Revenue and it is due to the gain that had to be recognized on the bond refinancing. We received direction from the auditors on properly accounting for the removal of the old bond and setting up the new bond and the gain that resulted. For Operating Expenses, purchased power is up $481,770 or 28%, which is consistent with the increased usage mentioned above, and also demonstrates the narrower margin we are operating in this year. (Revenue is up 19% and cost for power is up 28%.) Keep in mind that October is when we have the extra month of price differential where the margins widen. Operating Maintenance is consistent with the prior year. Landfill is increased over last year as we are recognizing those expenses better throughout the year, rather than a large addition at the end of the year. Services to the City are higher than last year as the contribution for 3% revenue is increased with the usage and rates, and we are paying based on actual usage of the prior month rather than an estimate that is "trued up" at the end of the year. We have a small net loss this month of $23,226 with ayear-to-date net profit of $462,271. Last year there was a net profit for the month of $42,510 with ayear-to-date net profit of $114,447. Water P&L Water Operating Revenue is down again this month but only $59,257 or 18% compared to last year. However, it is down 30% from the budgeted amount. We will see how the fall weather impacts the revenue; right now projections are coming in just under the budgeted number of $2,000,000 at $1,933,885. The budget was set very conservatively, and that is proving to have been a wise decision. In the two categories, residential usage was down 15% and commercial usage was down by 21%. Other Operating Revenue is down, even with the non-recurring gain in Miscellaneous Revenue related to the bond refinancing as mentioned above. Last year there were interest earnings on the escrow account and that is not present this year, and there were also connection fees. All Expenses are down from the prior month with the exception of Pumping Expense which is up from the prior year, by $14,645 or 48%, because of a well pump that had to be repaired. Year-to- date expenses as a whole are down from the prior year. Net profit for the month is $119,156 with a year to date net profit of $119,126. Last year net profit for the month was $170,914 with a year to date net loss of $8,835.