3.3. ERMUSR 03-20-2012 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE January 2012 Electric P&L To start off the year, January Operating Revenue of $2,188,597 is better than budgeted numbers by 1% and up from the prior year 3%. Within the revenue categories, Residential revenue is down slightly and Small Commercial revenue is very close to last year, however the Large Commercial revenue is up 10% from the prior year. Dispersed Generation Credit is down from the budgeted amount due to the second data center not being on the program yet. Other Operating Revenue is also over the budgeted numbers and the prior year. Connection Fees are already above the entire annual budget amount with SportTech and Aggregate Industries upgrading their transformers. This category was budgeted very conservatively and new construction and upgrades are performing better than planned. Purchased Power of $1,555,838 is under budgeted numbers by 7% and down from last year 2%, in spite of the increased usage over last year. Last year had a PCA of approximately $100,000 and this yeaz it was only $70,000, which accounts for the lower purchased power in 2012. For other expenses, Landfill Gas is consistent with the prior year, and Operating and Maintenance Expenses are both under budget and the prior yeaz numbers. Security Expenses are up from the prior year and budget due to advertising items purchased for the Expo and National Night Out. The categories of Donated Electricity and Transfers to the City are down, with the difference a result of a prepayment estimate used in 2011 that was higher than actual usage (and adjusted for the subsequent month), and actual usage reflected in 2012. Administrative and General Expense is under budget and under the prior year as well. The CIP category is where the largest variance exists with a couple of different contributors: last year there was labor related to the energy audits of $4,000, a consultant payment of $5,000, updating of brochures for $3,000, and rebates issued of $1750 -all of which did not occur in 2012. Additionally, we received rebate reimbursement from GRE of approximately $5,000 in 2012. Total expenses were $2,104,510, under budget by 7%, and lower than the previous year by 3% For January, the Electric Department has a Net Income of $286,784 and is ahead of budget by $253,245, and ahead of the prior year by $196,080.