3.3. ERMUSR 08-11-2009 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE June 2009 Electric P&L Operating Revenue is down 7.9% from the prior year. Residential sales are down only slightly and this is probably due to both weather and reduced growth, maybe some intentional conservation. The large industrial sales of the data centers are down this year compared to last year. In June and July of 2008 UHG was testing and pushing their systems to the maximum, this year reflects normal usage for the data centers. UHG is slowly ramping up their usage. Year to date operating revenues are 46.56% of budget, last year at this time we were at 46.66% of budget. Other revenues are down from a year ago, with the biggest differences in investment income and connections fees, both attributable to the state of the economy. Customer penalties are up slightly, another economic result. Purchased Power shows an increase of 30% over last year, which includes a PCA of $117,966.38 billed to us for May usage. We still have not, however, billed any PCAs to our customers this year. The total of PCAs billed to us so far this year is $209,641.94. (I have included the PCA monthly breakdown year-to-date 2009, and also 2008 in my staff updates.) Distribution Expense is lower this month compared to last year. Last year there was a large purchase of PPE (Personal Protective Equipment) clothing of shirts and pants, for approximately $19,000. Maintenance expenses continue to be down from last year. Services to the City result in higher expenses for the month, consistent with year-to-date activity. This is the result of increased revenue transfers to the city and donated electricity increases. Also, other income has a $25,000 credit for a gain on disposition of equipment related to the trade in value we received on the bucket truck. Customer Accounts expense is down and the biggest factor is the collection on past write- offs, which reduces the current expense. Administrative and General expenses are down from last year but in line with budgets and projections. The biggest difference is the Conservation Improvement Program (CIP) expenses this year reflect $13,000 in rebates reimbursed from GRE, which reduces the current expense. Year-to-date Net Income is positive, in spite of the absorption of the PCAs. Targeted budget net income numbers differ by approximately $300,000, but our cash position for end of year projections are in line. (Refer to the Cash Flow Detail spreadsheet, page 5.) ~~