3.1.C. ERMUSR 05-10-2011 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE March 2011 Electric P&L March's Operating Revenue is up 6.2% from the prior year, yet slightly under budgeted numbers by 1.7%. Within the Operating Revenue categories, the disparity is in Residential usage, with other categories on target. The Dispersed Generation Credit is double the budget amount due to Data Center #1 participating at higher levels than projected. While this credit reduces the Operating Revenue, participation is desirable as it also reduces purchased power costs. Other Operating Revenue is slightly below budgeted numbers, and the prior year. The Landfill did not perform as well this month, down 14.2% from budget and 8.7% from the prior year. Interest Income is posting higher returns than expected, as a result of the sweep account in place. The other categories are very consistent as compared to the prior year and on target with budget. Purchased Power is up from the prior year by 7.7% and under budget by 8.0%. For other expenses, Landfill Gas has additional expense accrued for maintenance recognized throughout the year and will be a consistent disparity when comparing year to year. Maintenance Expenses are over budget and the prior year numbers. This year's maintenance focus, as noted last month, is on street lighting and meters and those categories show an increase. There is also an increase in transportation maintenance this month with many vehicles having repairs/maintenance completed along with parts and supplies being purchased, the annual inspection of line tnicks being performed, and a winch line purchase. Other Operating Expenses are in line with budget and prior year numbers. The categories of Donated Electricity and Transfers to the Gity are up, which is consistent with the increased revenue numbers. Administrative and Genera] Expense is down from the prior year; however above the monthly budget due to computer office supply purchases occurring in March versus January, and increased vacation usage in March. For March, the Electric Department has a net loss (expected this time of year) of ($126,971), less than the budgeted loss of ($167,285), and behind the prior year loss of ($77,444). The year to date net loss is ($131,240.48), less than the budgeted year to date net loss of ($317,244), and behind the prior year to date net loss of ($89,262). A smaller operating margin in 2011 explains the disparity when compared to the prior year. As stated in prior narratives, the slim margins are presenting different results from previous years and should not be compared as such. Overall performance of the Electric Department and its financials will best be evaluated after the summer months.