5.1 ERMUSR 03-13-2018 - Laserfiche WebLink

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Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Theresa Slominski—Finance & Office Manager MEETING DATE: AGENDA ITEM NUMBER: March 13, 2018 5.1 SUBJECT: Financial Report- January 2018 ACTION REQUESTED: Receive the January 2018 Financial Report DISCUSSION: With the change in billing cycles, the revenue comparisons from the prior year will be skewed as they will not be comparing the same billing time frames. Also,budgeted numbers were not adjusted for the billing cycle change, as the data did not exist to estimate this impact. Please keep this in mind as we review the financials throughout 2018. Electric P&L January's electric kWh sales (from December consumption) are down from the prior year, 2%. For further breakdown: • Residential usage is down 14% • Small Commercial usage is down 9% • Large Commercial usage is up 5% Electric Operating Revenue for January was $2,779,290, 2%behind the prior year and 6%below budget. As mentioned above,the billing cycle change resulted in a difference when comparing revenue year to year. Less revenue was billed in January 2018 compared to 2017. Also,this year there is no pro-forma adjustment as there is no demand adjustment credit. The prior year had a pro-forma adjustment to show the demand adjustment credit being funded through reserves on the "Other Revenue/..../AC Credit" line item. Other Revenue Total is behind the prior year by 2%and is 12%below budget. We did not assess penalties in January to help the customers adjust to the billing cycle change, and is the main driver for this variance. Overall, Total Revenues of$2,899,125 are behind prior year by 2%and below budget by 6%. Purchased Power of$2,286,679 is more than the prior year by 8%, and above budget by 2%. Administrative Expenses of$295,065 are 1%behind prior year, and 12%below budget. Page 1 of 2 180