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5.1 ERMUSR 2-11-2020UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Melissa Karpinski Finance Manager MEETING DATE: AGENDA ITEM NUMBER: February 11, 2020 5.1 SUBJECT: Financial Report December 2019 ACTION REQUESTED: Receive the December 2019 Financial Report DISCUSSION: The 2019 Financial Report is presented for your review. Please note that these are the preliminary ǒƓğǒķźƷĻķ financial statements. Electric December electric kWh sales are down from the prior year, 4%. For further breakdown: Residential usage is down 1% Small Commercial usage is down 5% Large Commercial usage is down 6% Electric Operating Revenues for December of $2,656,655 are more than prior year by 2% and favorable to budget by 3%. December YTD is behind prior year by 2% and unfavorable to budget by 3%. The prior YTD variance is mainly due to Elk River Sales (driven by a decrease in rates and usage) which are partially offset by not having the Dispersed Generation Credit since transitioning to MMPA. Other Revenues of $231,321 are more than the prior year by 16% and favorable to budget by 46%. Other Revenue YTD is behind prior year by 9% but is favorable to budget by 23%. The main drivers of the prior YTD variance are from Contributions from Customers (Otsego Street Light Asset Transfer) and Interest Income (due to MMPA buy-in). Overall, Total Revenues of $2,887,976 are more than the prior year by 3% and favorable to budget by 6%. YTD is less than the prior year by 2% and unfavorable to budget by 1%. Purchased Power of $1,854,125 is less than the prior year by 10% and is favorable to budget by 5%. YTD is less than prior year by 7% and is favorable to budget by 3%. Administrative Expenses of $260,036 are more than the prior year by 4% but are favorable to budget by 15%. YTD costs are more than the prior year by 3% but are favorable to budget by 9%. The main drivers of the prior YTD variance are Salaries and Medical/Dental. ______________________________________________________________________________ Page 1 of 2 59 General Expenses of$53,827aremorethan the prior yearby 131% andareunfavorable to budget by 20%. YTD costs are more than the prior year by 79% but are favorable to budget by 32%. The main driver causing the prior YTD variance is CIP Rebates being fully funded from ERMU. Total expenses YTD are 2% less than the prior year and are favorable to budget by 5%. For December 2019, the Electric Department has a Net Profit of $34,948 and YTD Net Profit of $2,870,618. This is ahead of the budgeted monthly Net Loss of ($344,908) and is more than the prior year monthly Net Loss of ($132,783). YTD is ahead of the budgeted YTD Net Profit of $1,593,658 but is less than the prior YTD Net Profit of $2,960,518. Water December gallons of water sold are down 4% from the prior year. For further breakdown: Residential use is down 1% Commercial use is down 7% Water Operating Revenues for December of $122,337 are in line with the prior year and are favorable to budget by 9%. YTD is behind prior year by 9% but is in line with budget. Other Revenues of $66,042 are less than the prior year by 5% and are behind prior YTD by 26%. The main driver causing the prior YTD variance is Connection Fees. Other Revenues YTD are favorable to budget by 48%. Overall, Total Revenues of $188,380 are behind the prior year by 2% and are behind prior YTD by 14%. YTD Total Revenues are favorable to budget by 9%. Total Expenses of $191,760 are more than the prior year by 5% but are in line with prior YTD. YTD is also favorable to budget by 8%. For December 2019, the Water Department has a Net Loss of ($3,379) and YTD Net Profit of $340,865. This is ahead of the budgeted monthly Net Loss of ($63,592) but is slightly behind the prior year monthly Net Profit of $10,661. YTD is significantly ahead of the budgeted YTD Net Loss of ($144,494) but is behind the prior YTD Net Profit of $840,660. ATTACHMENTS: Balance Sheet 12.2019 Summary Electric Statement of Revenues, Expenses and Changes in Net Position 12.2019 Summary Water Statement of Revenues, Expenses and Changes in Net Position 12.2019 Graphs Prior Year and YTD 2020 Detailed Electric Statement of Revenues, Expenses and Changes in Net Position 12.2019 Detailed Water Statement of Revenues, Expenses and Changes in Net Position 12.2019 ______________________________________________________________________________ Page 2 of 2 60 61 62 63 Elk River Municipal Utilities Monthly Electrical Demand 75.0 70.0 65.0 60.0 55.0 50.0 Demand in MW 45.0 40.0 35.0 30.0 Month 20192020 Elk River Municipal Utilities Monthly Energy Purchases 34,000 29,000 24,000 19,000 Energy Purchases in MWH 14,000 Month 20192020 64 Elk River Municipal Utilities Monthly Total Electric Load 40,000 35,000 30,000 25,000 20,000 Electric Load in MWH 15,000 10,000 Month 20192020 Elk River Municipal Utilities Monthly Electric Sales $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 Sales in Dollars $2,000,000 $1,500,000 $1,000,000 Month 20192020 65 Elk River Municipal Utilities Monthly Residential, Commercial & Industrial Loads 25,000 20,000 15,000 10,000 Loads in MWH 5,000 - Month 2019 Residential2020 Residential2019 Commercial 2020 Commercial2019 Industrial2020 Industrial Elk River Municipal Utilities Monthly Residential, Commercial & Industrial Sales $2,500,000 $2,000,000 $1,500,000 $1,000,000 Sales in Dollars $500,000 $0 Month 2019 Residential2020 Residential2019 Commercial 2020 Commercial2019 Industrial2020 Industrial 66 Elk River Municipal Utilities Monthly Water Pumpage 140 120 100 80 60 40 Pumpage in Million Gal. 20 0 Month 20192020 Elk River Municipal Utilities Peak Day Pumpage 5.0 4.5 4.0 3.5 3.0 2.5 illion Gal. 2.0 1.5 1.0 Peak Day in M 0.5 0.0 Month 20192020 67 Elk River Municipal Utilities Monthly Water Sales 120.0 100.0 80.0 60.0 40.0 Sales in Million Gal. 20.0 0.0 Month 20192020 Elk River Municipal Utilities Monthly Water Sales $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 Sales in Dollars $100,000 $50,000 $0 Month 20192020 68 69 70 71 72 73 74 75 76 77 78