2.3. ERMUSR 10-11-2016 - Laserfiche WebLink

Home Browse Search

PROFIT AND LOSS NARRATIVE August 2016 Electric P&L August's electric kwh sales (from July consumption) are up from the prior year, 11.8%. For further breakdown: • Residential usage is up 12.7% • Small Commercial usage is down 15% • Large Commercial usage is up 7.5% August Operating Revenue of$3,883,892 includes a pro-forma adjustment to show the demand adjustment credit being funded through reserves. Year-to-date the amount of the demand adjustment credit was $579,293 and this has been reflected in the August financials. It is presented in the Other Revenue section of Operating Revenue (the account title is "Rate Increase" but it is actually the demand adjustment credit offset). In subsequent months' financials there will be an entry to recognize the current month's demand adjustment credit funding through reserves in the same way. Making these entries provides a clearer picture of the financials and the commission's intention to fund this demand adjustment credit as a measure to transition our newly acquired commercial customers from their previous rates over to our rates. Without the entry discussed above,the August Operating Revenue is $3,304,599 which is increased 1%over the prior year, and is 8%ahead of prior YTD. August's revenues were strong yet 10% short of budget. The weather was a factor, as the previous year was much warmer(this is also reflected in the water financials for August.) Revenues are ahead of the previous year and they still lag the YTD budget by 3%, however better than the 5% lag last month. We still have one more month of the summer rate (September)to narrow the budget lag. g g Other Revenue is increased 25%from the prior year as a result of revenues from the transmission projects not having transaction activity in August of 2015. In 2016 we received$3,400 for the Brookings project, and$10,200 for MISO revenue. Other Revenue Total is increased over the prior YTD by 9%, and increased 11.3%over budget YTD. Overall,Total Revenues of$3,522,251 ($4,101,544 less the pro-forma entry of$579,293) are above the prior year by 2%, and YTD ahead by 8%,however under YTD budget by 2.5%. Purchased Power of$2,805,965 is greater than the prior year by 10%, and over the budget by 4%. Our YTD costs are slightly over YTD budget now by 1%. 32