5.1 ERMUSR 11-8-2022��i
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Melissa Karpinski — Finance Manager
MEETING DATE:
AGENDA ITEM NUMBER:
November 8, 2022
5.1
SUBJECT:
Financial Report —September 2022
ACTION REQUESTED:
Receive the September 2022 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, 1%. For further breakdown:
• Residential usage is down 3%
• Small Commercial usage is down 2%
• Large Commercial usage is up 5%
Electric Operating Revenues for September of $4,492,336 are more than prior year by 12% and
favorable to budget by 8%. September YTD is more than prior year by 10% and favorable to
budget by 7%. The prior YTD variance and budget YTD variance is mainly due to PCA revenue of
$2,874,065.
Other Revenues of $165,884 are less than the prior year by 29% and unfavorable to budget by
21%. Other Revenues YTD are less than prior year by 4% but favorable to budget by 3%. The
main driver of budget YTD variance is Contributions from Customers.
Overall, Total Revenues of $4,658,220 are more than the prior year by 10% and favorable to
budget by 7%. YTD is more than the prior year by 10% and favorable to budget by 6%.
Purchased Power of $3,086,039 is more than the prior year by 27% and is unfavorable to
budget by 5%. YTD is more than prior year by 17% and unfavorable to budget by 16%. YTD EAC
charge is $3,269,544 more than prior year and $3,374,065 more than budget. EAC charge is
partially offset by PCA revenue of $2,874,065.
Administrative Expenses of $335,799 are more than the prior year by 19% and unfavorable to
budget by 6%. YTD costs are more than the prior year by 5% but are favorable to budget by 2%.
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General Expenses of $36,748 are less than prior year by 28% and favorable to budget by 25%.
YTD costs are more than the prior year by 8% but are still favorable to budget by 29%.
Total expenses YTD are 15% more than prior year and are unfavorable to budget by 11%. The
main driver causing the prior YTD variance and budget YTD variance is Purchased Power
(majority of other expenses are favorable to budget).
For September 2022, the Electric Department has a Net Profit of $412,280 and YTD Net Loss of
($143,127). This is ahead of the budgeted monthly Net Profit of $303,047 but behind the prior
year monthly Net Profit of $750,798. YTD is behind the budgeted YTD Net Profit of $1,043,570
and is less than the prior YTD Net Profit of $1,241,869.
Overall, the electric department has decreased usage YTD (3% less than budget and 1% less
than prior year) but increased PCA revenue due to passing along the EAC charge from our
purchased power cost. YTD total operating revenue excluding PCA revenue would be
unfavorable to budget by 3% (due to decreased usage) and about .7% more than prior year
(due to decreased usage being offset by the rate increase). Total expenses excluding purchased
power are favorable to budget by 2%. The YTD variance for purchased power is unfavorable to
budget by $3,437,237 and YTD total expense variance is unfavorable to budget by $3,222,069
(total expense variance is less than the purchased power variance because other expenses are
coming in favorable to budget).
Water
September gallons of water sold are down 1% from the prior year. For further breakdown:
• Residential use is down 1%
• Commercial use is down 1%
Water Operating Revenues for September of $427,484 are in line with prior year and favorable
to budget by 59%. YTD is less than prior year by 9% but favorable to budget by 17%.
Other Revenues of $62,789 are more than prior year by 9% but unfavorable to budget by 17%.
YTD is more than prior YTD by 117% and favorable to budget by 126%. The main driver causing
the prior YTD variance and budget YTD variance is Connection Fees.
Overall, Total Revenues of $490,273 are more than prior year by 1% and more than prior YTD
by 19%. YTD Total Revenues are favorable to budget by 45%.
Total Expenses of $264,123 are more than prior year by 9% and more than prior YTD by 1%.
YTD is favorable to budget by 1%.
For September 2022, the Water Department has a Net Profit of $226,149 and YTD Net Profit of
$1,433,098. This is ahead of the budgeted monthly Net Profit of $84,342 but behind prior year
monthly Net Profit of $240,773. YTD is ahead of the budgeted YTD Net Profit of $220,813 and is
ahead of the prior YTD Net Profit of $853,155.
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ATTACHMENTS:
• Balance Sheet 09.2022
• Electric Balance Sheet 09.2022
• Water Balance Sheet 09.2022
• Summary Electric Statement of Revenues, Expenses and Changes in Net Position
• Summary Water Statement of Revenues, Expenses and Changes in Net Position 09.2022
• Graphs Prior Year and YTD 2022
• Detailed Electric Statement of Revenues, Expenses and Changes in Net Position 09.2022
• Detailed Water Statement of Revenues, Expenses and Changes in Net Position 09.2022
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