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5.1 ERMUSR 08-09-2022______________________________________________________________________________ Page 1 of 2 UTILITIES COMMISSION MEETING TO: ERMU Commission FROM: Melissa Karpinski – Finance Manager MEETING DATE: August 9, 2022 AGENDA ITEM NUMBER: 5.1 SUBJECT: Financial Report – June 2022 ACTION REQUESTED: Receive the June 2022 Financial Report DISCUSSION: Please note that these are the preliminary unaudited financial statements. Electric June’s electric kWh sales are up from the prior year, 8%. For further breakdown: • Residential usage is up 8% • Small Commercial usage is up 18% • Large Commercial usage is up 7% Electric Operating Revenues for June of $4,046,789 are more than prior year by 24% and favorable to budget by 20%. June YTD is more than prior year by 12% and favorable to budget by 8%. The prior YTD variance and budget YTD variance is mainly due to Power Cost Adjustment (PCA) revenue. Other Revenues of $240,998 are more than the prior year by 9% and favorable to budget by 18%. Other Revenues YTD is less than the prior year by 8% and is unfavorable to budget by 11%. The main driver of prior YTD variance and budget YTD variance is Interest & Dividend Income. Overall, Total Revenues of $4,287,787 are more than the prior year by 23% and favorable to budget by 20%. YTD is more than the prior year by 11% and favorable to budget by 7%. Purchased Power of $3,429,170 is more than the prior year by 18% and is unfavorable to budget by 26%. YTD is more than prior year by 17% and is unfavorable to budget by 20%. YTD Energy Adjustment Clause (EAC) charge is $2,032,274 more than prior year and $2,093,563 more than budget. EAC charge is partially offset by PCA revenue. Administrative Expenses of $302,445 are more than the prior year by 16% and unfavorable to budget by 2%. YTD costs are more than the prior year by 1% but are favorable to budget by 3%. 54 ______________________________________________________________________________ Page 2 of 2 General Expenses of $77,567 are more than prior year by 202% and are unfavorable to budget by 59%. YTD costs are more than the prior year by 28% but are still favorable to budget by 31%. Total expenses YTD are 15% more than prior year and are unfavorable to budget by 12%. The main driver causing the prior YTD variance and budget YTD variance is Purchased Power. For June 2022, the Electric Department has a Net Loss of ($259,606) and YTD Net Loss of ($582,321). This is behind the budgeted monthly Net Loss of ($205,929) and is behind the prior year monthly Net Loss of ($202,730). YTD is behind the budgeted YTD Net Profit of $278,639 and is less than the prior YTD Net Profit of $74,805. Water June gallons of water sold are down 6% from the prior year. For further breakdown: • Residential use is down 6% • Commercial use is down 6% Water Operating Revenues for June of $288,571 are less than prior year by 7% but are favorable to budget by 21%. YTD is less than prior year by 5% but favorable to budget by 8%. Other Revenues of $168,078 are more than prior year by 103% and favorable to budget by 124%. YTD is more than prior YTD by 100% and favorable to budget by 108%. The main driver causing the prior YTD variance and budget YTD variance is Connection Fees. Overall, Total Revenues of $456,649 are more than prior year by 17% and more than prior YTD by 28%. YTD Total Revenues are favorable to budget by 41%. Total Expenses of $252,206 are more than prior year by 1% but less than the prior YTD by 1%. YTD is favorable to budget by 3%. For June 2022, the Water Department has a Net Profit of $204,443 and YTD Net Profit of $332,282. This is ahead of the budgeted monthly Net Loss of ($41,007) and ahead of prior year monthly Net Profit of $140,680. YTD is ahead of the budgeted YTD Net Loss of ($272,420) and is ahead of the prior YTD Net Loss of ($99,005). ATTACHMENTS: • Balance Sheet 06.2022 • Electric Balance Sheet 06.2022 • Water Balance Sheet 06.2022 • Summary Electric Statement of Revenues, Expenses and Changes in Net Position 06.2022 • Summary Water Statement of Revenues, Expenses and Changes in Net Position 06.2022 • Graphs Prior Year and YTD 2022 • Detailed Electric Statement of Revenues, Expenses and Changes in Net Position 06.2022 • Detailed Water Statement of Revenues, Expenses and Changes in Net Position 06.2022 55