Missouri Basin Municipal Pow er Agenc y
d/b/a Missouri River Energy Services
Western Minnesota Municipal Pow er Agenc y
Combined Statements of Net Position (Unaudited)
March 31, 2016 and 2015
March 31
March 31
Assets:
2016
2015
Liabilities and Net Position:
2016
2015
Current Assets:
Cash and cash equivalents:
Restricted
Unrestricted
Total cash and cash equivalents
Current Liabilities:
$ 56,109,725 $ 34,482,582
13,155,652
15,930,903
69,265,377
50,413,485
133,959,320
124,446,713
Short-term investments:
Restricted
Unrestricted
39,474,592
30,918,086
173,433,912
155,364,799
Accounts receivable
15,429,602
17,308,269
Advances to Missouri Basin Power Project
19,812,517
19,462,317
1,085,217
1,112,036
173,911
176,881
Total short-term investments
Fuel stock
Materials and supplies
Other current assets
Total Current Assets
1,481,649
1,170,749
280,682,185
245,008,536
Accrued taxes
$ 17,290,788
$ 25,668,774
4,086,396
1,952,781
11,095,000
11,795,000
7,155,075
7,306,315
39,627,259
46,722,870
Current liabilities payable from restricted
assets:
Current maturity of revenue bonds
Accrued interest
Total Current Liabilities
Long-term investments:
Restricted
67,944,103
Unrestricted
63,003,882
63,303,829
130,947,985
234,905,739
171,601,910
Revenue bonds, net of unamortized debt
discount and premium and excluding
current maturities
587,086,817
601,200,126
Revenues collected for future costs
37,571,880
37,308,475
Unearned revenue
13,388,659
18,257,263
Total Non-Current Liabilities
638,047,356
656,765,864
Total Liabilities
677,674,615
703,488,734
178,557,187
160,469,178
$ 856,231,802
$ 863,957,912
Capital assets:
Utility plant in service
494,429,224
462,068,264
Less-accumulated depreciation
237,552,689
233,323,866
Net utility plant in service
256,876,535
228,744,398
180,304,229
147,014,752
437,180,764
375,759,150
Advances for mine development
1,630,221
1,372,939
Unamortized debt expense
3,854,144
4,214,652
Other non-current assets
1,936,503
2,696,896
Construction work in progress
Net capital assets
Total Assets
Quarterly
Financial
Statements
Missouri River
Energy Services
Non-Current Liabilities:
Non-Current Assets:
Total long-term investments
Accounts Payable
$ 856,231,802 $ 863,957,912
Net Position
Total Liabilities and Net Position
Western Minnesota
Municipal
Power Agency
As of
March 31, 2016
Management Discussion
The Combined Statements of Net Position and Statements of
Revenues, Expenses, and Changes in Net Position for the
periods ended March 31, 2016 and 2015, are included for those
interested in the operations of the Missouri Basin Municipal
Power Agency d.b.a. Missouri River Energy Services (MRES)
and the Western Minnesota Municipal Power Agency
(WMMPA). These statements should be read in conjunction
with the 2015 Annual Report.
LONG-TERM POWER SALES
Long-term sales revenue for the three months ended March 31,
2016, totaled $40.6 million, which is nine percent less than the
$44.5 million during the same period in 2015. The decrease in
revenue compared to 2015 was due to a decrease in megawatt
hours (MWh) sales due to a mild winter and lower transmission
revenue included in long-term power sales. Year-to-date 2016
MWh sales were five percent lower than in 2015. The lower
transmission revenue included in long-term power sales is due
to not requesting SPP transmission for MRES members in the
MISO footprint. These members are estimated to save
approximately $12 million in 2016 due to not paying for SPP
transmission service. The average rate for long-term power
sales was approximately 6.0 cents per kilowatt-hour (kWh) for
the three months ended March 31, 2016, compared to the 6.3
cents per kWh for the three months ended March 31, 2015, a
decrease of four percent.
SHORT-TERM POWER SALES
Short-term power sales revenue for the three months ended
March 31, 2016, totaled $1.6 million, which is higher than the
$0.3 million during the same period in 2015. The increase in
2016 was due to higher MWh sold in 2016 due to more energy
being available for sale in 2016 compared to 2015 due to
Laramie River Station (LRS) Unit 1 being down for scheduled
maintenance in 2015.
TRANSMISSION SERVICE REVENUE
Transmission service revenue for the three months ended
March 31, 2016, totaled $9.6 million, ten percent higher than
the $8.7 million during the same period in 2015. The higher
revenue in 2016 was largely due to higher transmission costs
paid to others and passing these costs along to MRES members.
OTHER OPERATING INCOME
The bulk the other operating income is the amortization of the
reparations payment received from the Burlington Northern
Santa Fe Railway Company (BNSF) for rail overcharges resulting
from a ruling from the Surface Transportation Board (STB). The
payment was received in 2009 and had been classified as
unearned revenue pending the outcome of BNSF appeals of the
STB decision. In early 2015, the owners of LRS and BNSF
reached an agreement to settle the outstanding appeals. The
terms of the settlement agreement are confidential. The Board of
Directors, in its role as regulator, approved amortizing the
reparations payments over a four year period beginning in 2015.
OPERATING EXPENSES
Fuel expense for the three months ended March 31, 2016, was
four percent lower than the same period in 2015 due to a
decrease in average cost per MWh at LRS. Transmission O&M
expenses during the three months ended March 31, 2016, were
31 percent more than the prior year, largely due to higher
congestion costs in MISO. Depreciation expense during the
three months ended March 31, 2016, was ten percent higher
than the prior year, largely due to the remaining CapX 2020
transmission assets being placed into service. Administrative and
general expenses during the three months ended March 31, 2016,
were higher than the prior year, largely due to higher computer
expenses and higher administrative and general labor expense.
NON-OPERATING REVENUES (EXPENSES)
The investment income for the three months ended March 31,
2016, was 18 percent higher than the same period in 2015 due
to an increase in investment yields. Interest expense for the three
months ended March 31, 2016, decreased compared to the same
period in the prior year due to the regularly scheduled principal
payments and the 2015 refunding of the 2006A bonds.
CHANGE IN NET POSITION
The change in net position for the three months ended March
31, 2016, was approximately $8.2 million compared to
approximately $11.9 million for the same period in 2015. The
year-to-date change in net position is $1 million higher than
budgeted. The decrease in net position compared to 2015 was
largely due higher operating expenses and lower long-term
power sales. The favorable variance change in net position
compared to the 2016 budget is largely due to lower purchased
power expense offset by lower long-term power sales.
Missouri Basin Municipal Power Agency d/b/a
Missouri River Energy Services
Western Minnesota Municipal Power Agency
Combined Statements of Revenues, Expenses
and Changes in Net Position (Unaudited)
For the Periods Ending March 31, 2016 and 2015
Three Months
Ended March 31
2016
2015
Operating Revenues:
Long-term power sales
$ 40,552,262 $ 44,450,998
Short-term power sales
1,586,112
251,293
Transmission services
9,585,638
8,721,411
Other operating income
1,454,846
1,224,811
53,178,858
54,648,513
Total Operating Revenues
Operating Expenses:
Fuel
5,013,486
5,184,065
20,783,961
20,330,585
Depreciation and amortization
2,184,463
1,989,167
Transmission operation and maintenance
8,725,088
6,658,715
Other power supply operation and maintenance
Customer information and collections
Administrative and general
Property taxes
Total Other Operating Expenses
Operating Income
53,525
63,118
2,516,582
2,278,092
874,746
681,903
40,151,851
37,185,645
13,027,007
17,462,868
Non-Operating Revenues (Expenses):
Investment income
Other income
Other expense
Interest expense
Amortization of financing related costs, premium
and discount
696,192
588,176
1,876,899
1,720,135
(841,600)
(780,269)
(7,155,075)
(7,306,315)
923,499
817,234
1,266,317
1,266,317
—
(488,468)
Principal in excess of depreciation and
amortization
(1,609,240)
(1,872,182)
Other costs recoverable in future years
—
488,468
(4,843,008)
(5,566,904)
Amortization of reserves previously collected
Amortization of cancelled power supply and
transmission project
Net Costs recoverable in (for) future years:
Total Non-Operating Expenses
Change in Net Position
$ 8,183,999 $ 11,895,964