ERMUSR FINIANCIALS 04-17-2008 - Laserfiche WebLink

Home Browse Search

PROFIT AND LOSS NARRATIVE Electric P&L The Operating Revenue is up 17.5% over the prior year, due in part to the usage (usage is up 9.5%) and rate increases. The groups showing the largest increases from last year are residential customers and demand customers. Interest Income is up as we are carrying higher balances in reserves (as intended.) The credits that you see posted in customer penalties are for prior months' penalties that were removed for various reasons, at the discretion of the Assistant Office Manager and the Collections Clerk. Expenses are up 22% over the prior year. Purchased power is up 25% year to date and some of that is related to the increased usage. A larger cost component of this was discussed at the last meeting and will be higher for the next several months as Connexus passes along their power cost adjustments (PCA.) We are, in turn, passing some of this along to our customers, but not all of it. Typically, we have refunded PCA to customers in the summer months when the bills are higher. This year, that "refund" is coming in the form of the reduced PCA now. We will continue to monitor this. Operating and Maintenance expenses that are also up are Natural Gas (which actually has two months' payments reflected instead of one because the bill was paid earlier than normal this month) and Maintenance of Engines as the Worthington engine at the plant had some special cleaning done for $6,800. Distribution Expense is increased due to the purchase of some safety items (road signs and cones to meet safety requirements $6,500 and "do not operate" tags for equipment $2,000.) General Maintenance expenses are up due to more general preventative maintenance that we are doing. This is an area that we will most likely see grow in the future years as the building of new infrastructure slows down and we focus on maintaining what we have already built. Administrative Expenses are up in the following categories. Office Supplies for the purchase of seven printers for the office and three new computers $4,620. These were budgeted items for replacement and aren't able to be capitalized because they do not meet the $5,000 individual minimum capitalization requirement. Insurance is up from last year and is a timing issue more than an actual cost issue. The insurance term is from April to April and the prior year's term (2006) was allocated through December, not into the next year -however, we should have comparable numbers at the end of the year. Schools and Meetings expense is high this month due to training that staff have taken advantage of this time of year when things are typically slower. (q