NU utilities revenue up; bottom line shows shortfall

Revenue increase coincides with

rising cost

of energy

By RON LARSEN

Journal Staff Writer

NEW ULM -- With New Ulm Public Utilities two-thirds of the way through Fiscal Year 2004, it's looking like the utility may end the year with over-budget revenues and an under-budget net margin.

The utility's revenues through August, totaling $21,571,191, are running $1.4 million ahead of budgeted revenue for the eight-month period. Meanwhile, the utility's bottom line shows a total of $923,889 which represents a shortfall of $46,171 from budget.

As Utilities Director Gary Gleisner told the commission, there are two forces at work here. The increased revenue results, to a great extent, to the increased cost of energy. Also, since the utility buys energy in one month and doesn't get the revenue from it until the next month, that also impacts any "snapshot in time" look at the utility's financial progress through the year.

For example, utilities sales for August totaled $2,303,337 which is down $80,231 from budget and $114,000 down from August 2003 actual. While purchased power (electricity) came in under budget for August by about $154,000, fuel was up $78,906 over budget. Transmission and distribution costs also topped budget with transmission being $9,212 and distribution $19,075 over budget, respectively.

August utilities sales in the Electric Fund fell $30,876 short of budget, but when outside utility sales, miscellaneous revenue, grants and interest are added, total August revenue amounted to $1,895,423 which is $130,155 over budget and about $50,000 higher than the August 2003 actual.

That pushed the Electric Fund's revenue year-to-date to $12,519, which tops budget by $1,348,243. It's also about $1 million higher than 2003 year-to-date.

Even though it's "off-season" for the utility's other big fund, the Natural Gas Fund, with August revenue totaling $209,028, was on the negative side of the budget by $10,142. However, that had little impact on the fund's year-to-date totals. Its total revenue, at $6,261,559, is running $418,350 over budget and nearly $700,000 ahead of 2003.

The District Energy Fund is running slightly ahead of budget with a $14,283 pad on year-to-date revenue totaling $560,086.

The water fund shows a budget shortfall of $34,413 on sales totaling $1,620,722. The wastewater fund shows a shortfall of $73,854 in sales totaling $1,581,930 year-to-date.