KIUC Currents - Kauai Island Utility Cooperative

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Statement of Operations For the period 01/01/2010 – 09/30/2010 30 KIUC CURRENTS By Karissa Jonas, Controller We report that the KIUC results of operations through September 30, 2010, are improving as the weak economy begins to show signs of recovery. Electricity use on the island has remained at the same level as the prior year. It is still at a significantly decreased level from the preeconomic downturn level, primarily due to the reduction in visitors to the island. KIUC is doing everything it can, while maintaining safety and reliability, to reduce costs in various areas to operate efficiently and effectively, and continue to maintain a strong financial position to meet our loan covenants. Revenues, expenses and net margins totaled $115.2 million, $107.3 million and $7.9 million, respectively, for the ninemonth period ending September 30, 2010. As is the case for all electric utilities, the cost of power generation is the largest expense, totaling $64.2 million or 55.7% of revenues. Fuel costs are the largest component of power generation, totaling $54.1 million or 46.9% of revenues, and representing 84.2% of the cost of power generation. The remaining $10.1 million or 8.8% of revenues and 15.8% of the cost of power generation represents the cost of operating and maintaining the generating units. Percentage of Total Revenue Taxes 8.4% Depreciation & Amortization 9.8% Administrative & General Net of Non-Operating Margins 7.0% Marketing & Communications 0.5% Interest 5.9% Member Services 2.4% Net Margins 6.9% Fuel & Purchased Power Costs 46.9% Production Operation & Maintenance 8.8% Transmission & Distribution Operation & Maintenance 3.4% The cost of operating and maintaining the electric lines totaled $3.9 million or 3.4% of total revenues. The cost of servicing our members totaled $2.7 million or 2.4% of revenues. The cost of keeping our members informed totaled $0.6 million or 0.5% of revenues. Administrative and general costs—which include legislative and regulatory expenses, engineering, executive, human resources, safety and facilities, information services, financial and corporate services, and board of director expenses—totaled $8.5 million or 7.4% of revenues. Being very capital intensive, depreciation and amortization of the utility plant costs $11.3 million or 9.8% of revenues. Although not subject to federal income taxes, state and local taxes amounted to $9.7 million or 8.4% of revenues. Interest on longterm debt, at a very favorable sub5% interest rate, totals $6.8 million or 5.9% of revenues. Nonoperating net margins added $0.4 million to overall net margins. Revenues less total expenses equal margins of $7.9 million or 6.9% of revenues. Margins are allocated to consumer members and paid when appropriate.
Parting Shot An early morning photo taken at the boat launch area in Kapa‘a. Simple Pleasures Princeville Sunset Photo courtesy of Diana Rachal Photo by Judie Fernandez We are always looking for interesting items to feature in SImple Pleasures and Parting Shot. If you have an item to share with readers, please email currents@kiuc.coop or send it to: KIUC Currents, 4463 Pahe‘e Street, Suite 1, Līhu‘e, HI 967662000. DECEMBER 2010 31
Page 1 and 2: December 2010 KIUC in the Community
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Page 29: KIUC is updating account records an

KIUC Currents - Kauai Island Utility Cooperative

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