2.3. ERMUSR 05-14-2013 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE March 2013 Electric P&L March Operating Revenue of$2,044,089 is behind budgeted numbers by 6% and the prior year 5%. Last year March was unseasonably warm hitting 70 degrees or above five days out of the month. Comparably, in 2013 the high in March was only 47 degrees. The Dispersed Generation Credit is more than the prior year due to the second data center not being on the program early 2012. This summer there will only be one data center on the program and so the numbers will be skewed all year. Other Operating Revenue is above the budgeted numbers 13% and above the prior year numbers 8%. Interest income is up over last year with the maturing of two CDs in 2013. The other revenue items are fairly consistent with the prior year. Purchased Power of$1,662,304 is increased over the prior year 1.6% but under budgeted numbers by 3.8%. The remaining expenses are very close to the prior year with the exceptions of Maintenance Expense that is higher(related to increased tree trimming and vehicle maintenance this month) and Distribution Expense that is lower (related to decreased clothing purchases this month) than the prior year. Total expenses of $2,346,876 are under the budgeted numbers by 7.5% and slightly ahead of the prior year by 1.1%. For March, the Electric Department has a Net Loss of($151,035), which is ahead of budget by $63,975, but behind the prior year by $136,227. (A loss was budgeted for March 2013 and incurred March 2012.) The increased revenue in 2012 due to the warm weather(mentioned above) flowed right to the bottom line. Water P&L Water Operating Revenues are ahead of last year by 15% at $97,288, and also ahead of budget by 25%. This increased usage is from the commercial segment (and not dependent on weather) showing an increase over the prior year in spite of the cooler weather. Other Revenue of$25,461 is slightly up from budget, 14%, and down from the prior year 34%, due to Connection Fees. Expenses are in line with budget, and yet over the prior year by 19%. The increased expense is due to the installation of pressure reducing valves that will equalize the water pressure between the high and low side distribution networks. This is a budgeted one time expense for 2013. For March, the Water Department has a net loss (which is expected this time of year) of ($106,720), which is 22% ahead of budget and 54% behind last year. (We still have the installation of the sewer meter that will offset the year to date expenses and show a better margin for the water department. This should be reflected in May's financials.)