6.3. ERMUSR 09-09-2008 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE July 2008 Electric P&L The Operating Revenue is up 3% over the prior year. This is due to the large industrial sales with the data centers. They are 250% over last year. Residential and commercial sales are down this month from a year ago, 13% and 4%, respectively. Year to date operating revenues are 56% of budget, which happens to be exactly where we were last year at this time. The data centers are definitely picking up "the slack", however we are still remaining conservative in our projections for year end and anticipate revenues will be under budget approximately $100,000. Other revenues are still down YTD from 2007, and are up slightly for the month due to the capital equipment refund of sales tax reflected in the Miscellaneous Revenue category. The capital equipment refund was for $148,000 and a portion had been set up as a receivable, $40,000, with the remaining $108,000 posted to Miscellaneous Revenue. Also reflected in this Miscellaneous Revenue category is a decrease to revenue for an error discovered in the billing setup for our large data center customers. The amounts for sales tax were being posted to a revenue account instead of the liability account. The current year was corrected to the appropriate revenue accounts for the first 6 months of 2008. There were six months in 2007 that the error affected, amounting to $29,000 that is accounted for here as a reduction to revenue. Connection Fees continue to be down. Purchased power is pretty consistent with the prior year and continues to be the largest operating expense variance over last year, up 26% year to date. The Other Operating Expense and Landfill categories are consistent with the prior year. Distribution and Maintenance expenses have the largest increases again as there is more work being done on the upkeep and repair of our infrastructure. Overall, the expenses are at 56% of budget and the linear benchmark would be 58%. Water P&L Water Sales are up this month as compared to the prior months, and yet is still down from last year for the month and year to date numbers. We are still anticipating that we will be under budget for the year. Connection Fees continue to be down. The maintenance categories of the expense budget are at 49% of total budget, but slightly ahead of last year. Overall, expenses are pretty consistent with last year. Total expenses are at 57% of budget, and the linear benchmark would be 58%. ~q