5.1 ERMUSR 02-14-2023��i
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Melissa Karpinski — Finance Manager
MEETING DATE:
AGENDA ITEM NUMBER:
February 14, 2023
5.1
SUBJECT:
Financial Report — December 2022
ACTION REQUESTED:
Receive the December 2022 Financial Report
DISCUSSION:
Please note that these are the preliminary unaudited financial statements.
Electric
December's electric kWh sales are down from the prior year, 4%. For further breakdown:
• Residential usage is up 2%
• Small Commercial usage is down 1%
• Large Commercial usage is down 8%
Electric Operating Revenues for December of $3,312,145 are less than prior year by 2% but
favorable to budget by 1%. December YTD is more than prior year by 7% and favorable to
budget by 6%. The prior YTD variance and budget YTD variance is due to an increase in PCA
revenue.
Other Revenues of $204,013 are more than the prior year by 11% and favorable to budget by
63%. Other Revenues YTD are more than prior year by 8% and favorable to budget by 15%. The
main drivers of prior YTD variance are Customer Penalties and Transmission Investments which
are partially offset by Interest & Dividend Income.
Overall, Total Revenues of $3,516,159 are less than the prior year by 1% but favorable to
budget by 4%. YTD is more than the prior year by 7% and favorable to budget by 6%.
Purchased Power of $2,325,351 is less than the prior year by 1% but is unfavorable to budget by
30%. YTD is more than prior year by 12% and unfavorable to budget by 17%. YTD EAC charge is
$2,953,659 more than prior year and $4,295,368 more than budget. EAC charge is partially
offset by PCA revenue of $3,795,368.
Administrative Expenses of $310,838 are less than the prior year by 2% and favorable to budget
by 6%. YTD costs are more than the prior year by 5% but are favorable to budget by 3%.
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General Expenses of $24,644 are less than prior year by 58% and favorable to budget by 50%.
YTD costs are more than the prior year by 2% but are still favorable to budget by 31%.
Total expenses YTD are 12% more than prior year and 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 December 2022, the Electric Department has a Net Profit of $102,213 and YTD Net Profit of
$399,276. This is behind the budgeted monthly Net Profit of $458,601 and behind the prior
year monthly Net Profit of $420,524. YTD is behind the budgeted YTD Net Profit of $2,047,494
and is less than the prior YTD Net Profit of $1,919,272.
Overall, the electric department has decreased usage YTD (3% less than budget and 2% 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 4% (due to decreased usage) and about .5% more than prior year
(due to decreased usage being offset by the rate increase). Total expenses excluding purchased
power are favorable to budget by 3%. The YTD variance for purchased power is unfavorable to
budget by $4,526,684 and YTD total expense variance is unfavorable to budget by $4,225,473
(total expense variance is less than the purchased power variance because other expenses are
coming in favorable to budget).
Water
December gallons of water sold are up 5% from the prior year. For further breakdown:
• Residential use is up 1%
• Commercial use is up 10%
Water Operating Revenues for December of $150,156 are more than prior year by 6% and
favorable to budget by 32%. YTD is less than prior year by 5% but favorable to budget by 18%.
Other Revenues of $730,286 are less than prior year by 12% but favorable to budget by 869%.
YTD is more than prior YTD by 54% and favorable to budget by 189%. The main driver causing
the prior YTD variance and budget YTD variance is Connection Fees.
Overall, Total Revenues of $880,442 are less than prior year by 9% but more than prior YTD by
16%. YTD Total Revenues are favorable to budget by 64%.
Total Expenses of $269,561 are less than prior year by 29% and less than prior YTD by 2%. YTD
is favorable to budget by 3%.
For December 2022, the Water Department has a Net Profit of $610,880 and YTD Net Profit of
$2,342,995. This is ahead of the budgeted monthly Net Loss of ($103,703) and ahead of the
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prior year monthly Net Profit of $591,158. YTD is ahead of the budgeted YTD Net Profit of
$107,673 and is ahead of the prior YTD Net Profit of $1,527,010.
ATTACHMENTS:
• Balance Sheet 12.2022
• Electric Balance Sheet 12.2022
• Water Balance Sheet 12.2022
• Summary Electric Statement of Revenues, Expenses and Changes in Net Position
12.2022
• Summary Water Statement of Revenues, Expenses and Changes in Net Position 12.2022
• Graphs Prior Year and YTD 2022
• Detailed Electric Statement of Revenues, Expenses and Changes in Net Position 12.2022
• Detailed Water Statement of Revenues, Expenses and Changes in Net Position 12.2022
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