2.3. ERMUSR 04-12-2016 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE February 2016 Electric P&L February's electric kwh sales are up from the prior year, 3.1%. For further breakdown: • Residential usage is down 7% • Small Commercial usage is down 15% • Large Commercial usage is up 13% February Operating Revenue is decreased 1% over the prior year, and this is contrary to logic given the 3% increase in kwh usage noted above. A couple of factors play into this. First, February 2016 was an average of 12 degrees warmer than February 2015 and so even though we had a higher customer count using power, they weren't individually using as much power as the previous year. Second, the 2016 demand usage was significantly lower(600 KW)than 2015 and this impacted revenue negatively by about $25k. Other Revenue is consistent with the prior year. In Miscellaneous Revenue, we received a transmission payment for the Brookings project for$7,889. In the prior year, a transmission payment was received in February for a previous month and was reallocated to the appropriate month resulting in a credit in February 2015 (this skews the year to year comparison.) Overall, Total Revenues of$2,643,556 are behind the prior year February by only.5%, and ahead of last year's year-to-date number by 3%, but behind the year-to-date budget by 7% (impacted by the month's warmer weather.) Purchased Power of$1,870,053 is over the prior year by 5.7%, yet under year-to-date budget 4.7%. In 2015, we had year-to-date PCA credits of$185k, versus 2016 year-to- date PCA credits of only$85k and is the biggest impact to the bottom line comparisons. For other expenses, in total they are over the prior year by 6.4%yet under year-to-date budget by 6.5%. The largest variances are in distribution and maintenance expenses, but still under budget,by 25%and 10%, respectively. Distribution Expense in increased due to the following higher expenses for February: a switch being replaced,testing of hoses and blankets, and blocks for diggers being purchased. Maintenance Expense is increased to due substation maintenance of Real-Time Auto Controller of$15,750 in February. For February 2016, the Electric Department has a Net Profit of$14,185 and a year-to- date Net Profit of$40,115, which is behind budget and the prior year. 34