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
Rate increase to take effect with May billing
Dawson Public Power District rates will increase this spring. Overall, the increase will be 1.85%. The percentage varies by rate class. Residential customers will see a 1.75% increase in their electric rates. This includes a $1 increase to the distribution charge and...
Ask the board: A conversation with Dave Dwiggins
Dave Dwiggins Dawson PPD Board Member Area served: Buffalo County Subdivision Years of service: 29 What do you do outside of serving on Dawson PPD’s Board of Directors? I am officially retired, but I previously operated the family farm. I currently manage the farm and...
Following his calling: Tracy Gordon retires
When you describe the personality of someone with a career in information technology, what adjectives come to mind? People may answer with nerdy or introverted. But what about extrovert or relationship-builder? For Dawson PPD’s Information Technology and Security...