The System
Perennial’s transmission and distribution system consists of 1,949 miles of line, providing power to approximately 7,774 meters in York and Fillmore counties in Nebraska. Perennial employs 31 people and the District headquarters is located in York, Nebraska.
Energy Sales
The District has several revenue classes
that make up energy sales. The industrial
and irrigation classes typically make up the
largest portion of sales revenue. In 2023 the
industrial class accounted for 40.7 percent
of total sales revenue. Industrial load is more
consistent, whereas irrigation is dependent
on weather conditions and can vary year to
year. Irrigation revenue was 29.2 percent of
total revenue in 2023. In 2023 the irrigation
season started earlier than normal because
of a dry winter. Because of that, the
District experienced the largest amount of
irrigation sales in its history. Revenue from
energy sales in 2023 totaled $31,783,270,
compared to $29,514,920 million 2022, an
increase of $2,268,350.
The largest component of sales revenue is derived from selling kilowatt-hours (kWh). Total kWh sold in 2023 was 382.852 million, compared to 369.899 million kWh in 2022. In 2023 irrigation kWh sold in 2023 was 16.024 million greater than in 2022. The industrial class had a minor decrease of 585,061 kWh in 2023.
Power Cost
The District does not have any generating facilities. They purchase 92 percent of their power requirements from Nebraska Public Power District. The other 8 percent is purchased from Bluestem Energy Solutions, which provides power from three wind turbines. Power costs were 72.7 percent of total cost of electric service in 2023. This means for every dollar spent seventy-three cents goes to purchased power cost. NPPD did not increase power production rates for 2023, therefore Perennial did not need to raise customer rates. The District purchased 396.016 million kWh, at a cost of $21.549 million in 2023. Power purchased from NPPD amounted to 363.015 million kwh at a cost of $19.763 million. Power received from Bluestem was 33.001 million kwh at a cost of $1.786 million. In 2022, total kWh purchased was 385.109 million at a cost of $19.627 million.
Operation and Maintenance Expenses (Excluding Power Cost)
In addition to purchased power costs, the District spends dollars to keep the electric system reliable and efficient. Operation and maintenance expenses (less power cost) was $5.454 million in 2023, compared to $4.484 million in 2022. Repercussions from the pandemic have included higher prices for materials and assets. Supply chain issues made critical components for the maintenance of the system harder to obtain, and with unknown availability in the future, the District purchased additional components to insure they would be available in the future.
Depreciation
Depreciation of system and capital assets is the largest non-operating expense. In 2023 depreciation expense was $2.473 million, compared to $2.363 million in 2022.
Long Term Debt
In 2023 the District did not incur any new debt. There are currently 3 outstanding bond issues, leaving total bond debt at $7.9 million.
Non-Operating Revenue
With the rise in interest rates, the District earned more from investing some of its reserves. Interest income in 2023 was $605,801 compared to $152,651 in 2022.
Utility Plant
Each year the District plans for building and rebuilding areas of the system that need to be added or replaced. The District’s total utility plant increased $3.196 million to $83.311 million in 2023. Total utility plant in 2022 was $80.116 million. At the end of 2023, the District’s equity in relation to assets was 82 percent.
Cash and Investments
As of December 31, 2023, cash and investments totaled $14.608 million. Of that, $3.214 million is restricted funds that are kept for rate stabilization and held in capital membership accounts.
In Summary
Perennial ended 2023 in a strong financial position. With the economy seeing price increases in all areas of business, we will continue to be prudent in managing the finances of the District. Perennial’s management and board of directors always strive to utilize the District’s funds so that the system can be well maintained while keeping rates as low as possible. If you would like any further information or have any questions, you may contact the Mike Haumont, Manager of Finance and Accounting at 402-362-3355.