ERMUSR Financials 07-12-2005 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE ELECTRIC The Operating Revenue from May 2005 was lower than it was in May 2004, due to cooler weather. Usage was down by approximately 1,500,000 kilowatt hours, with the greatest reduction seen in the commercial and industrial customers. For Other Operating Revenue in May 2005 compared to May 2004, it was down overall by approximately $5,000. Interest Income was higher in May of 2005 by approximately $4,000 with the maturity of $300,000 in CDs, while Connection Fees and Miscellaneous Income are each down $6,000. (The Miscellaneous Income item is where the security systems' income is being reported for 2005 and so it has been higher than 2004 Miscellaneous Income in previous months. In May 2004 there was $12,000 in Miscellaneous Income from installed Street Lights that was not repeated in 2005.) The purchased power cost is about the same as last year even though there was a decrease in the amount of power consumed and this is because of the rate increase that was not passed on 100% to the customer. Operating Maintenance expense is higher than a year ago by $4,000 due to some maintenance projects at the plant. Depreciation continues to be the third largest expense, increased considerably from last year. Services to the City is an increased expense over last year as a larger monthly payment is being remitted, $30,000 in 2005 compared to $20,000 in 2004. General and Administrative Expense is lower due to the CIP (Conservation Improvement Program) spending being down from a year ago, $10,000 in 2005 compared to $28,000 in 2004. WATER The Operating Revenue is down approximately $20,000 from last year, due to the rainy weather in May 2005. Connection Fees are up considerably, $66,000. The interest income of $2,800 is earned from the savings account. The largest expense for water continues to be depreciation. Pumping Expense is $10,000 higher than in 2004 due to the increased maintenance on wells. The Administrative and General Expense is higher by $45,000 but that is comprised of $15,000 for the water meters through the CIP, $16,000 in the penalties related to prior years payroll filings, and the distribution variance discussed previously (5% 2004 split versus 25% 2005 split) of $14,000.