Dawson PPD 2016 financial report: A trip to the county fair
By Tara Naprstek, Manager of Finance and Administration
The sights, the sounds, the smells…a county fair must be right around the corner! The fair is a chance to show the fruits of the past year’s labors – produce from a garden tended to all season, cookies that finally turned out after endless batches, or a sundress with a perfectly even hem. Join me at Dawson PPD’s own (sort of) county fair as we look back at our financial performance from the last year.
One of the best parts of any county fair is the food! With all the choices, it’s important to maintain a balanced diet – put apples on that funnel cake, dip fried green beans in lots of ranch dressing, and wash it all down with a fresh squeezed lemonade to get your fruits and vegetables. A balanced diet reminds me of a balance sheet, but instead of food groups, it’s assets, liabilities and net position.
The assets side of the balance sheet totaled $190.7 million at the end of 2016, up $9.7 million from the previous year. Capital assets (our electric system, buildings, trucks and equipment) made up 86.1 percent of the total, with cash and investments accounting for 5.8 percent. The remaining 8.1 percent was comprised of accounts receivable, materials inventory and other assets.
The other side of the balance sheet is a combination of liabilities and net position, also totaling $190.7 million. Our primary liability is bond debt. Bonds are a very cost effective way to finance electric system construction costs. All our liabilities, including bond debt, account for 36.8 percent of the total. The remaining 63.2 percent is our net position or equity. It’s the difference between our assets and liabilities.
My family bleeds “4-H green,” so it’s not a county fair without livestock. Countless hours spent breaking a stubborn calf to lead or trying to keep the pigs clean were rewarded with a trip to the show ring. Round and round the ring we would go as the judge sized up the competition.
The round show ring reminds me of a doughnut chart, and this one shows where the District’s revenue – electric energy sales, other operating revenue and non-operating revenue – came from in 2016. Total annual revenues for 2016 were $61.3 million, up $1.1 million from the prior year. Hot, dry summer months meant farmers had to irrigate their crops more and the air conditioners in our houses had to work a little harder.
Carnival games & rides
Once the livestock show is over and our bellies are full of fair food, it’s time to check out the carnival games and rides. So much to see and do! Plus, that allowance money we’ve been saving up is burning a hole in our pockets.
First stop is the ring toss game. Another ring means another doughnut chart representing the District’s expenses and margins – how the revenue dollars were spent. Another way to think of this is that every kilowatt hour of electricity sold can be broken down into these cost components.
By far, the largest portion is for the cost of power at 58.1 percent, with maintenance and distribution a distant second at 11.8 percent.
Dawson PPD invests margins earned right back into the electric system through our capital program. Such capital expenditures are necessary to serve growing load requirements with a reliable and economical power supply.
It’s hard to miss the bright neon lights of the carnival rides or the screams and giggles of those brave enough to take a turn. My very favorite ride as a child was the Scrambler. All that spinning in different directions seemed to mix up your insides, but my friends and I sure did love it!
When the District talks about our mix, we’re referring to our sales mix – how many kilowatt hours are consumed by each customer class. In 2016, 549,605,054 kilowatt hours of electricity were used by our customers. Residential users consumed 43 percent of the total, while irrigation accounted for 30 percent. Large commercial and industrial services made up 22.6 percent of the mix, with the remaining 4.4 percent coming from small commercial and street lighting accounts.
There’s no better way to end a trip to the county fair than with a concert. Whether it’s the local band or a big-name act, we love to sing along and dance under the stars. A concert’s even more fun when you can enjoy it with friends. Here at Dawson PPD, we consider our customers – all 23,028 – our friends. Residential and seasonal customers make up 68.0 percent, with irrigators coming in at 25.2 percent. Commercial, industrial and street lighting customers round out the other 6.8 percent.
What a ride
As Dawson PPD’s county fair comes to a close, I hope you’ve enjoyed the sights, the sounds, the smells and the review of our 2016 financials.