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5.1 ERMUSR 11-10-2020UTILITIES COMMISSION MEETING TO:FROM: ERMU Commission Melissa Karpinski –Finance Manager MEETING DATE: AGENDA ITEM NUMBER: November10, 2020 5.1 SUBJECT: Financial Report – September 2020 ACTION REQUESTED: Receive the September 2020 Financial Report DISCUSSION: Please note that these are the preliminary unaudited financial statements. Electric September’s electric kWh sales are up from the prior year, 6%. For further breakdown: Residential usageis up22% Small Commercial usage is down 2% Large Commercial usage is upless than 1% Electric Operating Revenues for Septemberof $3,496,148are more than prior year by 7% and favorable tobudget by 5%. September YTD is in line with the prior year but unfavorable to budget by 2%. The YTD budget variance is mainly due to Elk River Commercial Sales. Other Revenues of $147,538 are less than the prior year by 32% and unfavorable to budget by 11%. Other Revenues YTD are less than the prior year by 4% but favorable tobudget by 10%. The prior YTD variance is mainly due to Customer Penalties, due to not charging penalties on delinquent accounts during the Peacetime Emergency Order. Overall, Total Revenues of $3,643,687 are more than the prior year by 5% and favorable to budget by 5%. YTD is in line with the prior year but is unfavorable to budget by 1%. Purchased Power of $2,039,119 is less than the prior year by 11% and favorable to budget by 17%. YTD is less than prior year by 4% and is favorable to budget by 5%. Administrative Expenses of $287,046 are more than the prior year by 13% but are favorable to budget by 8%. 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 due to COVID-19 as many trainings and meetings have been cancelled this year. ______________________________________________________________________________ Page 1 of 3 38 General Expensesof $65,720aremore than prior yearby 65% andareunfavorable to budgetby 54%. YTD costs are morethan the prior year by 16% but are favorabletobudget by 24%.The prior YTD variance is due to Commercial Rebates, but this is still favorable toYTD budget. Total expenses YTD are 2% less than prior year and are favorable to budget by 5%. The main driver of the prior YTD variance is Purchased Power. For September 2020, the Electric Department has a Net Profit of $596,533 and YTD Net Profit of $1,974,372. This is ahead of the budgeted monthly Net Loss of ($40,897) andis more thanthe prior year monthly Net Profit of $245,463. YTD is ahead of the budgeted YTD Net Profit of $730,490 and is more than the prior YTD Net Profit of $1,642,505. Water September gallons of water sold are up from the prior year, 5%. For furtherbreakdown: Residential use is up 12% Commercial use is down 1% Water Operating Revenues for September of $286,928 are ahead of prior year by 3% but are unfavorable to budget by 1%. YTD is ahead of prior year by 17% and is favorable to budget by 15%. The prior YTD variance is mainly due to Elk River Residential Sales. Other Revenues of $67,374 are behind prior year by 21% but favorable to budget by 52%. YTD is behind prior year by 9% but are favorable to budget by 30%. The main driver causing the prior YTD variance is Connection Fees. verall, Total Revenues of $354,302 are behind prior yearby 3% but areahead of prior YTD by O 11%. YTD Total Revenues are favorable to budget by 18%. TotalExpenses of $257,213 are ahead of prior year by 17% and are ahead of prior YTD by 2%. YTD is also favorable to budget by 11%. For September 2020, the Water Department has a Net Profit of $97,073 and YTD Net Profit of $551,232. This is ahead of the budgeted monthly Net Profit of $78,927 but is behind the prior year monthly Net Profit of $144,703. YTD is significantly ahead of the budgeted YTD Net Loss of ($92,928) and prior YTD Net Profit of $220,919. ATTACHMENTS: Balance Sheet 09.2020 SummaryElectric Statement of Revenues, Expenses and Changes in Net Position 09.2020 Summary Water Statement of Revenues,Expenses and Changes in Net Position 09.2020 Graphs Prior Year and YTD 2020 Detailed Electric Statement of Revenues, Expenses and Changes in NetPosition 09.2020 ______________________________________________________________________________ Page 2 of 3 39 Detailed Water Statement of Revenues, Expenses and Changes in Net Position 08.2020 ______________________________________________________________________________ Page 3 of 3 40 41 42 43 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 44 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 45 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 46 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 47 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 $ 48 49 50 51 52 53 54 55 56 57 58