2.3. ERMUSR 08-11-2015 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE June 2015 Electric P&L June's electric kwh sales (for May usage) are up from the prior year by 1/2%overall: • Residential usage is down 7.5% • Small Commercial usage is up 5% • Large Commercial usage is up 2.9% from the prior year. June Operating Revenue is consistent with the prior year, down slightly by 3.84% for the month, down 1.74% for year-to-date numbers, and over year-to-date budgeted numbers by 1%. However, June 2014 had a PCA charge to customers of$131,000, and without considering this PCA charge, the revenue in June 2015 is up 1%compared to the prior year. Other Revenue is behind the prior year by 12%for June, for two reasons. The first reason is Security Revenue is down(however this is misleading and is explained below), and the second reason is we had May and June's MISO payments received in June of 2014, overstating June 2014's revenue. To better explain the first reason, Security Revenue is not down in sales,but the recognition of revenue is impacted by the annually billed accounts. In our previous software, when customers were billed annually the revenue for the year for that customer all showed up in that month. In our current software, when customers are billed annually the revenue is spread out evenly over the year. Each month of this year, as customers whose annual billing occurs in that month, that revenue starts in the month of the annual billing and is recognized over the next twelve months. All customers annually billed in June 2015 are showing 1/12 of the annual bill as revenue this month. All customers annually billed in June 2014 were showing all of it, 12/12 of the annual bill, as revenue that month. As the year progresses, and our annually billed security customers are all billed for their annual services, the revenue stream will grow and become more consistent. Overall, Total Revenues are behind the prior year by 4.34%, (and .27% ahead without considering the PCA of 2014.)Year-to-date revenues are behind 2%from the prior year (but ahead by 1.27%without considering the prior year pro-forma adjustment of $500,000.) Purchased Power is down from the prior year 4.75%. Last year there were significant PCA charges being passed along that we are not receiving this year(the PCA for June 2014 was $22,662, and year-to-date through June last year we had PCAs of$802,307.) Year-to-date the difference in costs for purchased power are 10%less than the prior year, and absent the PCA, 2.64%less than the prior year. 38