Dawson PPD’s 2022 financial performance maintained a strong trend. We continue to make improvements in the financial areas that were a focus of our 2020 strategic planning. Dawson PPD has reduced its debt as a percentage of assets and has grown its cash reserves. Our net margins remain strong.
Service territory and revenue
In 2022 we added 19 miles of line for a total of 5,845. We served an average of 23,279 customers, up from 23,181 in 2021.
Dawson PPD had a substantial year for irrigation sales. The sale of 216 million irrigation kilowatt hours topped 2021 by 30 percent. Total revenue among all rate classes was $70.9 million on the sale of 632.1 million kWh.
Cost of Power and Operating Expenses
The cost of purchased power accounted for 51 percent of operating revenue. Dawson PPD continued to receive a power cost adjustment (PCA) which has helped to keep this number consistent since 2020. The District also has a rate stabilization fund to help keep costs affordable for our customers. Operating and maintenance expenses (non-purchased power) accounted for 22 percent of operating revenue. This percentage is unchanged from the previous year.
Total interest expense on debt has been declining over the last several years. In 2020, we refinanced three bonds to take advantage of low interest rates and no new debt has been issued since that year. The District has also paid down principal on its bonds. Dawson PPD’s total interest expense is down 17 percent over the past two years.
Electric Power Distribution System Investment
Dawson PPD is committed to the quality and reliability of our electric power distribution system. We maintain a working plan of investment several years into the future. Over the last decade, we have invested $102 million back into our system. We invested $5.6 million and $8 million in 2021 and 2022, respectively. Our strong financial position allowed us to make these recent investments without issuing new debt.
2022 In Review
In 2022, the District reduced long-term debt by $4.4 million and invested $8 million in system assets. These accomplishments were made possible by controlling operating costs and having strong energy sales due to weather conditions.
The District is dedicated to providing reliable, dependable and affordable energy to its customers. Our strong financial position today will support these goals into the future.
OTHER NEWS
Dawson PPD awards $1,500 Utility Line Scholarship to Callaway High School graduate
March 31, 2021 Dawson Public Power District has awarded Weston Kunkee a $1,500 Utility Line scholarship to pursue his degree. Kunkee is a graduate of Callaway High School and the child of Dean and Angie Kunkee. He plans to pursue his degree in utility line at Mitchell...
BETWEEN THE LINES: What does reliability cost?
April 2021 By Gwen Kautz Dawson PPD General Manager gkautz (at) dawsonpower.com 308-324-2386 What does reliability cost? It’s never big things that break us – it’s always the little things. My adoption of “it’s always the little things” stems from scripture in which...
Honey hobbyist connects learners with nature
April 2021 “I’ve always had an appreciation and respect for nature,” said Amy Hill, Central Community College Regional Director at the Lexington Center. Her appreciation for and awareness of bees was heightened when her son was involved in an Entomology project...