2.3. ERMUSR 05-20-2014 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE March 2014 Electric P L March's e ctric kwh sales (for February usage) are up 3% overall from the prior year; Residential usage is up 8%, Small Commercial usage is up 9%, and Large Commercial usage is d:l n 1% from the prior year. January Operating Revenue is over the prior year by 7%, anal slightly over budgeted numbers by 2%. Other Ope ating Revenue is up 15% from the budgeted numbers, and up from the prior year 4%. i1 ost components are consistent with the prior year, with the exception of the Miscellan:sus Revenue, which is increased as a result of two MISO payments (February and Marc being received this month. Overall, Ravenues are ahead of the prior year by 7%, and year to date are ahead by only 3%. Purchased 'ower includes a PCA of$275,643, for a year-to-date accumulated PCA of $609,502. I he total purchased power cost of$1,971,235 is up from budgeted numbers 16%, and p from last year 23%, reflecting the PCA as well as the increased wholesale cost and ut ge. This is the biggest single impact to the electric financials. Given this is an amoun over$500,000, a 6 mil PCA will be passed along to the customers in the May billing. To repeat ! om last month: The PCAs (Power Cost Adjustments) are a tool for power providers 1 i recoup extraordinary costs incurred in delivering the power that would not be covere. by the regular rate. When ERMU is charged a PCA from our power provider, it increase, our expense for our purchased power. If we choose to pass on the PCA, our power cos I is not reduced -we simply make it back in our revenues charged to our customers I much like the power provider did to us.) Conversely, if we receive a credit PCA from our power provider, it reduces our power cost, and if we choose to pass it on to our custo -rs, our revenues are reduced as we credit our customers. For other : penses, most are decreased from the prior year and below budget. Total expenses ere $2,684,694, over budget by 5%, and higher than the previous year by 14%. Keels in mind these numbers include the PCAs, which accounts for the increase. For March, the Electric Department has a Net Loss of$(337,826), compared to a budget of$(259,1.9), and the prior year of$(155,035). Year to date we are at a net loss of ($710,323 I compared to the prior year net profit of$212,089. Given that it is the PCA creating the impact, at least we are able to rectify this in subsequent months. As noted, a 6 mil PC' will be recovered in May. 20