2.3. ERMUSR 09-10-2013 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE July 2013 Electric P&L July Operating Revenue of$2,575,968 is behind budgeted numbers, and behind the prior year 9%. Last year July had excessive heat and humidity, with temperatures above 75 degrees 21 out of 31 days out of the month. The average temperature was 75 degrees, which is the normal high for July. Comparably, in 2013 the average temperature in July was 70 degrees, with less than 10 days above 75 degrees. Other Operating Revenue is above the budgeted numbers and above the prior year numbers 6%. Interest income is up sharply this month, coming in at twice the budgeted amount. This is a semi-rebound from the drop in market values the previous month. The other revenue items are fairly consistent with the prior year. Purchased Power of$2,258,559 is just under the prior year and in line with budgeted numbers. The remaining expenses are very close to the prior year with the exception of Distribution Expense (which is down as uniforms were purchased in July 2012 but June 2013), and Other Operating Expense that is higher because of a credit in the prior year due to mutual aid reimbursement for services provided to Grand Rapids. For July, the Electric Department has a Net Loss of($135,189), which is behind budget by $126,102, but behind the prior year by$252,709. (Remember, July was an exceptionally good month last year.) Water P&L Water Operating Revenues are behind last year by 30% at $201,844, and also behind budget. The decrease in water sales in directly related to the weather items discussed above. Other Revenue of$34,542 is ahead of budget and the prior year due to Connection Fees. For expenses, the decrease in Pumping Expense is almost exactly offset by the increase in Distribution Expense. Expenses are in line with budget, and the prior year. For July, the Water Department has a net profit of$47,932, approximately half of the budgeted amount and 61% behind last year. (Again, keep in mind July was an exceptional month last year(favorable), and we have an opposing unexceptional (poor) July this year.) However, the water projections for the remainder of the year combining with actual year-to-date numbers still have the water department on track with budgeted numbers. 19