3.1.C. ERMUSR Financial 03-09-2010

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PROFIT AND LOSS NARRATIVE January 2010 Electric P&L To start off the year, January Operating Revenue is over budgeted numbers and the prior year. Residential, Small Conunercial and the Large Commercial Data Center revenue categories are up from last year. The Large Commercial category, excluding the Data Centers, is down with the decrease of 3 customers compared to last year. Other Operating Revenue is over budgeted numbers, but under last year. Security is performing well and is more than budgeted. Delinquent Penalties and Disconnect Charges are less than budgeted amounts, and yet despite lower revenues, it is a positive indicator for us. Purchased Power is in line with the budget (up by a small margin consistent with revenues) and last year numbers. For other expenses, Landfill Gas is more than last year but 2009 did not have the monthly maintenance amount of $28,000 or gas purchase of $12,000 included yet and so it is not an accurate representation. Security expenses have several costs in January 2010 that were not in January of 2009. They include advertising, printing, and promotional items. Services to the City does not reflect the 2009 revenue payment. Dues anal Subscriptions 2010 are higher with CAPX expenses. For January, the Electric Department has a Net Income of $141,000 and is ahead of budget by $80,000. Water P&L Water Operating Revenues are also up this month compared to last year, and also ahead of budget. However, we are pumping less water through our system than the prior year. Other Revenue is ahead of budget but down from the prior year. The Investment Income amounts are due to the bond refunding escrow accounts earning interest. This refunding will be completed in February and the escrow funds will be depleted as they are applied to that payment. Expenses are over budget in total but there are some timing differences. Supplies and Expense in 2009 does not include the electric for the well pumping. Maintenance of Wells is more but this is not a consistent monthly expense and so will often vary with budgeted and prior year numbers. For January, the Water Department has a net loss (which is expected this time of year) of $82,000 and is very close to budget.