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5.1 ERMUSR 10-13-2020UTILITIES COMMISSION MEETING TO:FROM: ERMU Commission Melissa Karpinski –Finance Manager MEETING DATE: AGENDA ITEM NUMBER: October 13, 20205.1 SUBJECT: Financial Report – August2020 ACTION REQUESTED: Receive the August2020 Financial Report DISCUSSION: Please note that these are the preliminary unaudited financial statements. Electric August’s electric kWhsales are down from the prior year, 10%. For further breakdown: Residential usageis down 11% Small Commercial usage is down 16% Large Commercial usage is down 9% Electric Operating Revenues for August of $3,726,425 are less than prior year by 8% and unfavorable to budget by 10%. August YTD is behind the prior year by 1% and unfavorable to budget by 2%. The prior YTD variance is due to Commercial Sales. Other Revenues of $213,347 are lessthan the prior year by 8% but favorable to budget by 25%. Other Revenues YTD are more than the prior year by 1% and favorable to budget by 12%. Overall, Total Revenues of $3,939,773 are less than the prior year by 8% and unfavorable to budget by 9%. YTD is less than the prior year by 1% and is unfavorable to budget by 2%. Purchased Power of $2,591,162 is more than the prior year by 3% but favorable to budget by 12%. YTD is less than prior year by 3% and is favorable to budget by 3%. Administrative Expenses of $243,644 are more than the prior year by 6% but are favorable to budget by 10%. YTD costs are more than the prior year by 12% but are favorable to budget by 3%. The main driver of the prior YTD variance is the recognition of $160,583 in Salaries expense due to COVID-19. An area that has seen a reduction in expense is Schools & Meetings as many trainings and meetings have been cancelled this year due to COVID-19. ______________________________________________________________________________ Page 1 of 2 37 General Expensesof $25,171aremore than prior yearby 5% butarefavorable to budget by 41%. YTD costs are morethan the prior year by 7% but are favorabletobudget by 34%. Total expensesYTDare 1% less than prior year andare favorable to budget by 4%. The main driver of the prior YTD variance is Purchased Power. For August 2020, the Electric Department has a Net Profit of $448,276 and YTD Net Profit of $1,377,839. This is ahead of the budgeted monthly Net Profit of $340,252 but is less than the prior year monthly Net Profit of $883,079. YTD is ahead of the budgeted YTD Net Profit of $771,387 but is slightly less than the prior YTD Net Profit of $1,397,042. Water August gallons of water sold are up from the prior year, 3%. For further breakdown: Residential use is up 3% Commercial use is up 4% Water Operating Revenues for August of $373,760 are ahead of prior year by 4% and are favorable to budget by 1%. YTD is ahead of prior year by 20% and is favorable to budget by 18%. The prior YTD variance is mainly due to Elk River Residential Sales. Other Revenues of $104,476 are ahead of prior year by 18% and favorable to budget by 51%. YTD is behind prior year by 7% but are favorable to budget by 27%. The main driver causing the prior YTD variance is Connection Fees. Overall, Total Revenues of $478,237 are ahead of prior year by 7% and are ahead of prior YTD by 13%. YTD Total Revenues are favorable to budget by 20%. Total Expenses of $246,211 are ahead of prior year by 14% but are in line with prior YTD. YTD is also favorable to budget by 12%. For August 2020, the Water Department has a Net Profit of $232,025 and YTD NetProfit of $454,158. This is ahead of the budgeted monthly Net Profit of $154,580 and is ahead of the prior year monthly Net Profit of $229,275. YTD is significantly ahead of the budgeted YTD Net Loss of ($171,855) and prior YTD Net Profitof $185,609. ATTACHMENTS: Balance Sheet 08.2020 Summary Electric Statement of Revenues, Expenses and Changes in Net Position 08.2020 Summary Water Statement of Revenues,Expenses and Changes in Net Position 08.2020 Graphs Prior Year and YTD 2020 Detailed Electric Statement of Revenues, Expenses and Changes in Net Position 08.2020 Detailed Water Statement of Revenues, Expenses and Changes in Net Position 08.2020 ______________________________________________________________________________ Page 2 of 2 38 39 40 41 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 40,000 35,000 30,000 25,000 20,000 Energy Purchases in MWH 15,000 Month 20192020 42 Elk River Municipal Utilities Monthly Total Electric Load 40,000 35,000 30,000 25,000 Electric Load in MWH 20,000 15,000 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 43 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 44 Elk River Municipal Utilities Monthly Water Pumpage 160 140 120 100 80 60 Pumpage in Million Gal. 40 20 0 Month 20192020 Elk River Municipal Utilities Peak Day Pumpage 6.0 5.0 4.0 3.0 illion Gal. 2.0 Peak Day in M 1.0 0.0 Month 20192020 45 Elk River Municipal Utilities Monthly Water Sales 140 $500,000 $450,000 120 $400,000 100 $350,000 $300,000 80 $250,000 60 $200,000 Sales In Dollars $150,000 40 Sales in Million Gal. $100,000 20 $50,000 $0 0 Month 2019 MG2020 MG2019 $2020 $ 46 47 48 49 50 51 52 53 54 55 56