3.1.C. ERMUSR 10-11-2011 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE August 201 I Electric P&L August Operating Revenue is up 1S% from the prior year. Within the Operating Revenue category, Residential usage is up 7.7%, Small Commercial usage is up 4%, and Large Commercial usage is up almost 10%. Other Operating Revenue is down from the prior year, 12% due to the nonrecurring bond refunding revenue being recognized in 2010. Removing that factor, all remaining Other Revenue items are increased over the prior year. Purchased Power is up from the prior year by 10% and includes a Power Cost Adjustment (PCA) of $40,000. Our yearly accumulated PCA total is $368,603. September billing from Connexus has not arrived yet but we are anticipating the PCA to be approximately $150,000. (We billed 1 mill in the September ERMU customer billing and recouped $25,000.) We anticipate at ]east 1 mill billed in some subsequent billings, which still leaves a significant PCA absorbed by the utility to the benefit of our customers. For other expenses, Landfill Gas is down from the prior year as we incurred an additional direct billing expense last year at this time. Remaining operating expenses are in line with budget and the prior year numbers. In the category of Other Operating Expenses, we have a negative expense related to our mutual aid billing reimbursement. For August, the Electric Department has a net profit of $125,724 which is ahead of the prior year's net loss of ($24,101). The year to date net profit is $336,816 and the prior year to date net profit was $459,485. Water P&L Water Operating Revenue is under the prior year by 12%, at $240,150 compared to $273,254 last year. The pumping is also down from last year at 79.6 million gallons (MG) in 2011 and 85.7 MG in 2010, with the peak pumping day similar volume both years at 3.9 MG in 2011 and 4 MG in 2010. Other Revenue is increased from the prior year, due to connection fees from Pizza Ranch and Spectrum HS. Fumping Expense is decreased from the prior year (last year included a nonrecurring expense to the state for a chlorine leak.) Distribution Expense is down from the prior year due to our focus on meter change-outs versus water main maintenance. Remaining expenses are in line with the prior year, however total expenses are down from the prior year. For July, the Water Department has a net profit of $116,961, and last year's net profit was $78,472. The year to date net loss is ($114,002), which is behind the prior year to date net profit of $103,385. (Remember that we have a budgeted year end net loss for 2011 of ($198,180.))