2.3. ERMUSR 06-16-2015 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE April 2015 Electric P&L April's electric kwh sales (for March usage)are down slightly from the prior year by .67%overall: • Residential usage is down 10.23% • Small Commercial usage is up 8.14% • Large Commercial usage is up 2.5%from the prior year. Last year's financials are reflecting the transfer from reserves of$500,000 to offset the PCAs that we were absorbing. This was done on a pro-forma 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. In these narratives, I will be providing comparisons on the actual performance year-to-year, not including the pro-forma adjustment. Absent the pro-format adjustment, April Operating Revenue is consistent with the prior year, over year-to-date numbers by 4.7%, and over year-to-date budgeted numbers by 3.8%. Other Revenue is ahead of the prior year by 24%, however, the prior year's numbers reflect a security adjustment to correct a billing error on City accounts. There was a refund to the City for an overbilling of monitoring fees since 2005. Absent, this adjustment, Other Revenue is consistent with the prior year. Overall, without the pro-format adjustment, Revenues are ahead of the prior year by 1.3%, and year-to-date ahead by 4.5%. Purchased Power is down from the prior year 17%. Last year there were significant PCA charges being passed along that we are not receiving this year(the PCA for April 2014 was $93,829, and year-to-date through April last year we had PCAs of$703,331.) Absent the PCA, purchased power is 12.6%down from the prior year. Year-to-date the difference in costs for purchased power are 12%less than the prior year, and absent the PCA, 3%less than the prior year. For other expenses,there are several variances. Distribution Expense is increased due to labor related to equipment and safety items, fees for safety gloves testing, and traffic signs purchased. Maintenance Expense continues to be higher related to management's distribution of time with overhead maintenance. (The allocation of management's time within the payroll system needs to adjusted and distributed over the applicable expenses, since it is currently not distributing appropriately. We are working with NISC to facilitate the proper allocation.) Also impacting Maintenance Expense is mapping as we work to update the map books. Depreciation is lower due to the actual depreciation being calculated as assets are added to the system, versus last year the annual depreciation was 33