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Missouri Basin Municipal Power Agency d/b/a
Missouri River Energy Services
Western Minnesota Municipal Power Agency
Combined Statements of Net Position (Unaudited)
March 31, 2015 and 2014
March 31
Assets:
Current Assets:
Cash and cash equivalents:
Restricted
Unrestricted
2015
March 31
2014
50,413,485
60,998,680
124,446,713
9,459,340
30,918,086
19,546,293
155,364,799
29,005,633
Accounts and notes receivable
17,308,269
17,517,806
Advances to Missouri Basin Power Project
19,462,317
16,501,184
1,112,036
1,135,453
176,881
176,881
1,170,749
2,374,341
245,008,536
127,709,978
Unrestricted
Total short-term investments
Fuel stock
Materials and supplies
Other current assets
Total Current Assets
Non-Current Assets:
Long-term investments:
Restricted
20,736,684
63,303,829
61,683,993
234,905,739
82,420,677
Utility plant in service
462,068,264
389,764,618
Less-accumulated depreciation
233,323,866
226,300,330
Net utility plant in service
228,744,398
163,464,288
147,014,752
103,753,787
375,759,150
267,218,075
Advances for mine development
1,372,939
99,614
Unamortized debt expense
4,214,652
2,346,903
Other non-current assets
2,696,896
4,901,271
Total long-term investments
Capital assets:
Construction work in progress
Net capital assets
Total Assets
Accounts Payable
Accrued taxes
Short-term debt
$ 25,668,774
$ 20,040,075
1,952,781
1,791,603
—
21,060,000
Current liabilities payable from restricted
assets:
Current maturity of revenue bonds
Accrued interest
Total Current Liabilities
11,795,000
14,865,000
7,306,315
3,228,093
46,722,870
60,984,771
$ 863,957,912 $ 484,696,518
Missouri River
Energy Services
Western Minnesota
Municipal Power
Agency
As of March 31, 2015
Non-Current Liabilities:
171,601,910
Unrestricted
2014
$ 34,482,582 $ 27,074,636
33,924,044
Restricted
2015
Current Liabilities:
15,930,903
Total cash and cash equivalents
Short-term investments:
Liabilities and Net Position:
Quarterly
Financial
Statements
Revenue bonds, net of unamortized debt
discount and premium and excluding
current maturities
601,200,126
223,917,490
Revenues collected for future costs
37,308,475
35,355,850
Unearned revenue
18,257,263
19,413,979
Total Non-Current Liabilities
656,765,864
278,687,319
Total Liabilities
703,488,734
339,672,090
160,469,178
145,024,428
$ 863,957,912
$ 484,696,518
Net Position
Total Liabilities and Net Positions
Management Discussion
The Combined Statements of Net Position and
Statements of Revenues, Expenses and Changes in
Net Position for the periods ended March 31, 2015
and 2014, 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 2014 Annual
Report.
LONG-TERM POWER SALES
Long-term sales revenue for the three months ended
March 31, 2015, totaled $44.5 million, which is 1.8
percent higher than the $43.7 million during the
same period in 2014. The increase in revenue
compared to 2014 was due to increased 2015 rates
offset by a decrease in megawatt hours (MWh)
sales. The year-to-date 2015 MWh sales were 7.3
percent lower than in 2014. The average rate for
long-term power sales was approximately 6.3 cents
per kilowatt-hour (kWh) for the three months ended
March 31, 2015, compared to the 5.7 cents per kWh
for the three months ended March 31, 2014, an
increase of 9.8 percent.
SHORT-TERM POWER SALES
Short-term power sales revenue for the three
months ended March 31, 2015, totaled $0.3 million,
which is 96.1 percent lower than the $6.4 million
during the same period in 2014. The reason for the
decrease in 2015 is due to significantly higher
MWh sold to other utilities in 2014. MRES
executed two short-term sale agreements in 2014 to
sell a portion of the generation from the Laramie
River Station (LRS) and hedged the transactions
with other purchases. These sales and related
purchases generated net revenue to MRES.
OPERATING EXPENSES
Fuel expense for the three months ended March 31,
2015, was 23.6 percent lower than the same period
in 2014 due to a decrease in the MWh generated at
LRS and a decrease in average cost per MWh. The
12 week maintenance on LRS started in mid-March
2015. Purchased power expense during the three
months ended March 31, 2015, was $9.0 million
lower compared to the same period in 2014. The
decrease in purchased power expense was due to a
decrease in prices paid for market purchases and
higher purchases in 2014 for purchases made to
hedge the short-term power sales discussed above.
The 15.5 percent increase in other power supply
operation and maintenance (O&M) expenses
compared to the same period in 2014 was largely
due to higher O&M expense at LRS. Transmission
operation and maintenance expenses during the
three months ended March 31, 2015, were 18.3 less
than the prior year largely due to lower net
congestion expenses from Midcontinent
Independent System Operator.
CHANGE IN NET POSITION
The change in net position for the three months
ended March 31, 2015, was approximately $11.9
million compared to approximately $6.9 million for
the same period in 2014 and the $5.9 million
budgeted. The higher change in net position was
largely due to lower purchased power expense
offset by higher LRS O&M expenses.
RED ROCK HYDROELECTRIC PROJECT
Construction of the Red Rock Hydroelectric Project
(RRHP) continues. Construction of RRHP began in
August 2014 and is expected to be completed in
early 2018.
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, 2015 and 2014
Three Months
Ended March 31
2015
2014
Operating Revenues:
Long-term power sales
Short-term power sales
$ 44,450,998 $ 43,675,950
251,293
6,439,233
Transmission services
8,721,411
7,184,895
Other operating income
1,224,811
78,922
54,648,513
57,397,000
Total Operating Revenues
Operating Expenses:
Fuel
5,184,065
6,784,348
11,493,051
20,467,296
Other power supply operation and maintenance
8,837,534
7,651,705
Depreciation and amortization
1,989,167
1,555,524
Transmission operation and maintenance
6,658,715
8,153,271
Purchased power
Customer information and collections
Administrative and general
Property taxes
Total Other Operating Expenses
Operating Income
63,118
35,644
2,278,092
2,130,093
681,903
489,486
37,185,645
47,267,367
17,462,868
10,111,633
Non-Operating Revenues (Expenses):
Investment income
Other income
Other expense
Interest expense
Amortization of financing related costs, premium
and discount
588,176
142,393
1,720,135
1,558,335
(780,269)
(694,687)
(7,306,315)
(3,240,457)
817,234
78,218
Amortization of reserves previously collected
1,266,317
1,266,317
Amortization of cancelled power supply and
transmission project
(488,468)
(488,468)
(1,872,182)
(2,322,510)
Net Costs recoverable in (for) future years:
Principal in excess of depreciation and
amortization
Other costs recoverable in future years
Total Non-Operating Expenses
Change in Net Position
488,468
488,468
(5,566,904)
(3,212,391)
$ 11,895,964 $ 6,899,242