KIUC's Energy Wise Guys - Kauai Island Utility Cooperative

By Karissa Jonas, Controller
Statement
of Operations
For the period 01/01/2010 – 02/28/2010
38 KIUC CURRENTS
KIUC results of operations through February
28, 2010, are still being impacted negatively by
the weak economy. Electricity usage on the
island is still at a significantly decreased 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 in order to continue to
meet its loan covenants.
Revenues, expenses and net margins totaled
$24.6 million, $22.7 million and $1.9 million,
respectively, for the two­month period ending
February 28, 2010.
As is the case for all electric utilities, the cost of
power generation is the largest expense, totaling
$13.5 million or 55.0 percent of revenues. Fuel
costs are the largest component of power
generation, totaling $11.1 million or 45.1 percent
of revenues, and representing 82.0 percent of the
cost of power generation. The remaining $2.4
million or 9.9 percent of revenues and 18.0
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
11.0%
Administrative &
General
Net of Non-Operating
Margins
5.3%
Marketing &
Communications
0.5%
Interest
6.0%
Member Services
2.4%
Net Margins
7.8%
Fuel & Purchased
Power Costs
45.1%
Production Operation &
Maintenance
9.9%
Transmission & Distribution
Operation & Maintenance
3.6%
The cost of operating and maintaining the
electric lines totaled $0.9 million or 3.6 percent of
total revenues. The cost of servicing our members
totaled $0.6 million or 2.4 percent of revenues.
The cost of keeping our members informed
totaled $0.1 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
$1.4 million or 5.6 percent of revenues.
Being very capital intensive, depreciation and
amortization of the utility plant costs $2.7 million
or 11.0 percent of revenues. Although not subject
to federal income taxes, state and local taxes
amounted to $2.1 million or 8.4 percent of
revenues. Interest on long­term debt, at a very
favorable sub­5 percent interest rate, totals $1.5
million or 6.0 percent of revenues. Non­operating
net margins added $0.1 million to overall net
margins. Revenues less total expenses equal
margins of $1.9 million or 7.8 percent of
revenues. Margins are allocated to consumer
members and paid when appropriate.