ERMUSR FINANCIALS 08-12-2008 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE June 2008 Electric P&L The Operating Revenue is up 1.6% over the prior year. This includes the remaining Power Cost adjustment amount we collected, $90,652. Residential and commercial sales are down and this is probably due to both weather and reduced growth, maybe some intentional conservation. The large industrial sales are up with the data centers running and that is making up for the low sales in other categories. Year to date operating revenues are 47% of budget, and over 50% would be typical. We'll see how these next few months fare for sales but we are anticipating that we will be slightly under budget for the year, unless we have an earlier, colder winter. At this point it seems like it will be around $100,000. We will be able to cutback on some capital projects to offset this. Other revenues are down from a year ago. The capital equipment refund of sales tax was received in June last year and so that is a $240,000 difference. (We submitted $148,000 this year and should probably receive that in August .) Connection Fees are pretty even with last year at this point, but we don't expect to have much more, if any, for the rest of the year. This probably sounds like a broken record now - purchased power continues to be the largest operating expense variance over last year, up 19% year to date. The Other Operating Expense category is down again this month. We received our reimbursement from GRE for the urge testing of our diesel generator plant, $6,865, and these funds are offset against the fuel and engine maintenance costs. Year to date these expenses are reasonable - at 34% of budget. Distribution Expense is higher this month due to the purchasing of our PPE (Personal Protective Equipment) clothing of shirts and pants, for approximately $19,000. Maintenance expenses have the largest increase in underground distribution and this line item accounts for the majority of the increase in the whole maintenance category. Again, there is more of a focus on maintenance this year as the new construction projects have slowed down, and we will continue to monitor it. Customer Accounts expense is down 60% compared to last year, but write-offs were included in June 2007, and for 2008 they were done in July. Administrative and General expenses are down from last year but in line with budgets and projections. Last year we purchased computers in June and that accounts for an $18,000 difference. We also had three pay periods in June last year and so that accounts for a $22,000 difference. 101