6.6. ERMUSR 11-13-2008 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE September 2008 Electric P&L Revenues have caught up quickly in the months of August and September. Total Operating Revenue is up 13% over the prior year. The large industrial sales with the data centers are up 26% year to date. Year to date operating revenues are 78% of budget (the same as last year), and 75% would be the linear comparison. Other revenues are pretty consistent with the prior year with the exception of Security sales (which are almost double this month compared to last year) and Connection Fees (which have been down all year.) Purchased power is up 14% over the prior year, and up 20% year to date. The Other Operating Expense and Landfill Gas categories are consistent with last year. Distribution and Maintenance expenses are actually down this month compared to last year. Last year more maintenance was performed in this month as construction slowed down, and this year we have had projects come up and the maintenance focus we have been doing over the summer has dropped off. Administrative and General expenses are up from last year. The rebate portion of the CIP (Conservation Improvement Program) expenses are up but they will be offset as the rebates we have paid out are reimbursed to us from GRE in subsequent months. We have a net profit for this month again, and the year-to-date numbers reflect meeting the budgeted annual net profit early. The projections for November and December (see the cash flow detail) are a net loss for both months and ending the year down $192,000 from budget. The projected cash position is to draw down reserves by $100,000. Only time will tell. Water P&L Water Sales are finally picking up as well and are closing the gap when comparing to the prior year, but still behind by almost $100,000. Connection Fees are way down for the month, and for the year, but that seems to be turning a corner as ~~e head into the end of the year with some upcoming projects that will boost these numbers just a little. Expenses are pretty comparable to last year with the exception of interest expense. There was an adjustment made last year that skews the numbers for comparison. Here, too, we have a net profit for the month and year but water rarely sees a net profit in the fourth quarter. The projections (see the cash flow detail) are to end down $250,000 from budget and draw down reserves by $550,000. 4 "I