ERMUSR Financials 08-14-2007 - Laserfiche WebLink

Home Browse Search

c PROFIT AND LOSS NARRATIVE Electric P&L The revenues reflect increased usage, as well as, our rate increase. Compared to the month of June last year, usage is up almost 12%, but that usage increase is from the commercial and industrial customers, not the residential customers. Overall, we seem to be on track for putting money to reserves this year. We'll continue to monitor that to see how close we can get to our goal of approximately $800,000. The large amount of interest earned is from a CD that matured and was redeemed. The miscellaneous revenue has an amount of $237,000 that is from the Capital Equipment refund we received for 2006 purchases. (The Capital Equipment refund is a result of sales tax that we paid on electric distribution components that are tax-exempt. We cannot receive the exemption "up front" when we purchase the items, however, the sales tax has to be remitted to the state when the items are purchased and then we have to apply to the state to have it refunded to us.) It is a significant amount due to the large capital projects we completed in 2006. Purchased power is skewed in comparison to last year, and that is because of the way the power bill was accrued last year versus this year. Last year's number for purchased power was actually for ERMU's June consumption but the revenue we were billing for was the customers' May consumption. (We are always a month behind in billing because we can't obtain the meter readings for the consumption until the month has passed. So we read the meters the first of the month through the tenth of the month, and then send the customer a bill at the end of the month. However, we are billed from Connexus on approximately the tenth of the month for the immediate prior month.) This year the financials reflect ERMU's May consumption to match May's revenue we are billing for. The administration expenses are up approximately $20,000 from last year. This is a result of increases in insurance costs, training costs and staffing costs. Water P&L The revenues here, too, reflect increase usage. Compared to the month of June last year, usage is up around 25%, and it is largely commercial and industrial customers, although residential is up slightly. The connect fees continue to be under budget and down from last year, creating quite a variance from the year-to-date numbers of last year. We will most likely see a decrease in our reserves this year for the water department. Pumping expense are up from last year and included some testing done at the Twin Lakes Well, and an install of an adjustable valve for the Freeport Tower. Administrative expenses are up from the prior year due to increases in insurance, training, and staffing costs.