2.3. ERMUSR 06-10-2014 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE April 2014 Electric P&L April's electric kwh sales (for March usage)are up 6.7%overall from the prior year; Residential usage is up 8.5%, Small Commercial usage is up 16%, and Large Commercial usage is up 8%from the prior year. April Operating Revenue (excluding the transfer of$500,000 from reserves, discussed below) is over the prior year by 10%, and over budgeted numbers by 5%. This month's financials are reflecting the transfer from reserves of$500,000 to offset the PCAs that we are absorbing. This is shown, on a proforma basis, as a transfer to Revenue and distribution from Equity, to represent in the financials the reserve allocation that normally occurs at the end of the year. Other Operating Revenue is down 22% from the budgeted numbers, and down from the prior year 25%. Security Revenue reflects a refund to the City for an overbilling of monitoring fees since 2005, and is therefore a negative number for April, and the reason for the overall decrease this month compared to the prior year. The remaining components of Other Revenue are consistent with the prior year. Overall, Revenues are ahead of the prior year by 7% (excluding the transfer of$500,000 from reserves, discussed above), and year to date are ahead by 9%. The total purchased power cost of$1,795,611 is up from budgeted numbers 19%, and up from last year 27%, reflecting the PCA as well as the increased wholesale cost and usage. The PCA included this month is $275,643, for a year-to-date accumulated PCA of $609,502. This is the biggest single impact to the electric financials. As mentioned last month, we are charging our customers 6 mils in May and, most likely,will be charging a PCA each month moving forward. (We received another$94,000 PCA in May's power billing and are told we will receive another$73,000 in June's power billing.) With the proforma adjustment (mentioned above)and the subsequent charging of PCAs (just discussed) the power costs and the revenue costs should align better in future financial presentations. For other expenses,Administrative &General is increased due to the purchase of replacement computers in trucks of$10K, and a payment for the ERMU history book of $7K,both affecting Office Supplies and Expense. Also bonding fees and expenses of $24K affects Dues and Subscriptions. For March, the Electric Department has a Net Profit of$380,582, compared to a budget of$100,821, and the prior year of$190,495. Year to date we are at a net loss of ($329,740) compared to the prior year net profit of$402,584. As we charge back the PCAs, we should see this year to date gap narrow in subsequent months. 20