2.3. ERMUSR 07-14-2015 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE May 2015 Electric P&L May's electric kwh sales (for April usage)are down from the prior year by 1.14% overall: • Residential usage is up 1.07% • Small Commercial usage is up 6.22% • Large Commercial usage is down 2.94% from the prior year. May Operating Revenue is consistent with the prior year, down slightly by 3.09% for the month, down 1.26%for year-to-date numbers, and over year-to-date budgeted numbers by 2.5%. However, May 2014 had a PCA charge to customers of$130,000, and without considering this PCA charge, the revenue in May 2015 is up 2.7%compared to the prior year. Other Revenue is behind the prior year by 25%, due to Connection Fees of$32,000 last year compared to $9,600 in the current year. Other Revenue items are consistent with the prior year. Overall, Total Revenues are behind the prior year by 4.79%, (and .44% ahead without considering the PCA of 2014.)Year-to-date revenues are behind 1.47% from the prior year(but ahead by 2.58%without considering the prior year pro-forma adjustment of $500,000.) Purchased Power is down from the prior year 5%. Last year there were significant PCA charges being passed along that we are not receiving this year(the PCA for May 2014 was $76,314, and year-to-date through May last year we had PCAs of$779,644.)Absent the PCA, purchased power is .01% down from the prior year. Year-to-date the difference in costs for purchased power are 11%less than the prior year, and absent the PCA, 2.5% less than the prior year. For other expenses, there are several variances. Operating and Maintenance Expense is decreased due to lower utilities expense for electric and water at the power plant. Landfill Gas Expense is increased due to a re-ring of engine#1 costing $29,608. 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.) Depreciation is lower due to the actual depreciation being calculated as assets are added to the system, versus last year the annual depreciation was estimated and allocated evenly over the year with a true-up in December. Customer Accounts Expense are higher due to software conversion expenses. Administrative and General Expenses 28