3.1.C. ERMUSR 09-13-2011 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE July 2011 Electric P&L July's Operating Revenue is up 1.2% from the prior year, and over budgeted numbers by 5%. Within the Operating Revenue category, Residential usage is down 6% while Small Commercial usage is down 9%, and Large Commercial usage is up almost 2%. Other Operating Revenue is in line with the prior year, yet under budgeted numbers by 14%. The Interest Income continues to post steady returns with the sweep account in place. Connect Fees and Penalties are reasonably consistent. Purchased Power is up from the prior year by 15% and up 19% from budget. This month's power bill included a Power Cost Adjustment (PCA) of $120,000. This increases our yearly accumulated PCA total by 40% for a total to date of $310,000. We know August will add another $40,000 and September is going to be approximately $150,000 which will then be a grand total of approximately $500,000. Given these increased PCA figures, we need to start passing along some of the PCA because we have such tight margins. We pass these PCAs along in "mills", which is one tenth of a penny per kilowatt hour. At $500,000, we will have approximately 20-25 mills to absorb or pass along. (We billed 4 mills in the August customer billing and recouped $132,592.) We anticipate at least 1 mill billed in some subsequentbillings, which still leaves a significant PCA absorbed by the utility to the benefit of our customers. For other expenses, Landfill Gas is slightly above last year and yet under budgeted amounts. Maintenance Expenses are over the budgeted numbers slightly, and over the prior year numbers by 30%. The biggest increases over the prior year relate to outages, a roof repair, and some recloser testing. Other Operating Expenses are in line with budget and the prior year numbers. Customer accounts expense is down given the change in meter reading and reduced write-offs. Administrative and General Expense is over the prior year and budget due to increased legal fees (related to the power contract research), and increased 2011 APPA training. For July, the Electric Department has a net loss of $197,532 which is behind the prior year and budget, but only slightly. The year to date net profit is $455,154 and the prior year to date net profit was $483,586. Water P&L Water Operating Revenue is over the prior year by 2%, and over budgeted numbers by 1 %. The pumping is consistent with last year at 98.8 million gallons (MG) in 2010 and 90 MG in 2011, with the peak. pumping day the same volume both years at 3.9 MG. Other Revenue is down from the prior year, however ahead of budget. Last year there was over $90k in connection fees from Duffy Development Companies for an apartment building. Administrative and General Expense shows an increase resulting from Dues and Subscriptions timing on the quarterly funds remitted to the state, and consulting fees paid for the Wellhead Protection program. Expenses are over the prior year amounts by 10%, and are consistent with the budgeted amounts. For July, the Water Department has a net profit of $93,655, which is better than the budgeted profit of $88,603, and behind the $161,162 profit last year. The year to date net loss is ($221,116), which is behind prior year to date net loss of ($86).