2.3 ERMU FINANCIALS 03-18-2014 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE January 2014 Electric P&L January's electric kWh sales (for December usage) are up in all categories. Residential is up 20%, Small Commercial is up 17% and the Large Commercial usage is up 5% from the prior year. However, January Operating Revenue includes a PCA credit distribution of $344,143, a reduction to revenue (comparably, there was no PCA distribution January 2013). Also, the change in the standby generation contract and participation in the dispersed generation contract is different from the prior year, resulting in reduced amounts for 2014. Finally, there is a change in the billing process of donated street lights, which results in a lower amount in January that should be offset in February. This all contributes to the total revenue of $2,112,936, under budgeted numbers by 5%, and down slightly from the prior year 1.5%. Other Operating Revenue is up 12% from the budgeted numbers, and up from the prior year 10%. All components are up, with the exception of the Landfill Project as there was decreased production in January. Miscellaneous Revenue is up significantly due to the recycling of scrap materials. Purchased Power of $1,860,663 is up from budgeted numbers 7%, and up from last year 14%, reflecting the increased wholesale cost and usage. For other expenses, most are up over the prior year and budget, largely impacted by three pay periods in January 2014, versus two in January 2013. Operating Expense is up with costs of fuel and utilities increased; as well as labor costs are up due to additional time spent inside on engine and power plant maintenance in taking advantage of the cold weather outside. Distribution Expense is up with the annual glove testing, and tools repaired or replaced. Maintenance Expenses are up, but because of an accident last year involving a vehicle hitting our equipment which we invoiced insurances to cover - thereby reducing our 2013 cost. Other Operating Expenses are increased due to disposal of unusable inventory. Administrative and General Expenses are increased mostly by the three pay periods, and also by the HSA contributions in January. Total expenses were $2,579,901, over budget by 9%, and higher than the previous year by 19%. For January, the Electric Department has a Net Loss of $(289,847), compared to a budget of $29,243, and the prior year of $142,880. (Not factoring the distribution of the PCA in January, we are in line with budget.) 27