KIUC Linemen All Geared Up - Kauai Island Utility Cooperative

Statement
of Operations
For the period 01/01/2011 – 07/31/2011
70 KIUC CURRENTS
By Karissa Jonas, CFO
We are pleased to report that the KIUC results
of operations through July 31, 2011, are strong as
the weak economy continues to show measurable
signs of recovery. Electricity usage on the island is
2 percent higher than in the prior year. Regardless
of the improved sales volume, KIUC is still 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. Revenues,
expenses, and net margins totaled $105.9 million,
$98.6 million, and $7.3 million, respectively, for
the seven­month period ending July 31, 2011.
As is the case for all electric utilities, the cost of
power generation is the largest expense, totaling
$64.5 million or 60.9 percent of revenues. Fuel
costs are the largest component of power
generation, totals $56.2 million or 53.0 percent of
revenues, and represents 87.1 percent of the cost
of power generation. The remaining $8.3 million
or 7.9 percent of revenues and 12.9 percent 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
7.3%
Administrative &
General
Net of Non-Operating
Margins
6.6%
Marketing &
Communications
0.5%
Interest
4.8%
Member Services
1.8%
Net Margins
6.9%
Transmission & Distribution
Operation & Maintenance
2.8%
Production Operation &
Maintenance
7.9%
Fuel & Purchased
Power Costs
53%
The cost of operating and maintaining the
electric lines totaled $3.0 million or 2.8 percent of
total revenues. The cost of servicing our members
totaled $1.8 million or 1.8 percent of revenues.
The cost of keeping our members informed
totaled $0.6 million or 0.5 percent 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
$7.2 million or 6.8 percent of revenues.
Being very capital intensive, depreciation and
amortization of the utility plant costs $7.8 million
or 7.3 percent of revenues. Although not subject
to federal income taxes, state and local taxes
amounted to $8.9 million or 8.4 percent of
revenues. Interest on long­term debt, at a very
favorable sub­5­percent interest rate, totals $5.1
million or 4.8 percent of revenues. Non­operating
net margins added $0.3 million to overall net
margins. Revenues less total expenses equal
margins of $7.3 million or 6.9 percent of
revenues. Margins are allocated to consumer
members and paid when appropriate.