Perennial’s transmission and distribution system consists of 1,951 miles of line, providing power to approximately 7,647 meters in York and Fillmore counties in Nebraska. Perennial employs 33 people and the District is headquartered in York, Nebraska.
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 2022 the industrial class accounted for 41.3% 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 26.5% of total revenue in 2022. The District had slight decrease in revenue from energy sales of $333,704 in 2022.
Revenue in 2022 was $29.515 million, compared to $29.849 million in 2021. The largest component of sales revenue is derived from selling kilowatt-hours (kWh). Total kWh sold in 2022 was 369.899 million, compared to 379.115 million kWh in 2021. In 2022, despite several storms damaging pivots and crops, irrigation kWh sold was slightly higher than in 2021 by 998,366 kWh. The industrial class had a minor decrease of 9.753 million kWh in 2022.
The District does not have any generating facilities. It purchases 91 percent of its power requirements from Nebraska Public Power District. The other 9 percent is purchased from Bluestem Energy Solutions, which provides power from three wind turbines. Power costs were 73.7 percent of total cost of electric service in 2022. This means for every dollar spent 74 cents goes to purchased power cost. Perennial did not raise customer base rates in 2023. The District purchased 385.109 million kWh, at a cost of $19.627 million in 2022. Power purchased from NPPD amounted to 349.096 million kwh at a cost of $17.648 million. Power received from Bluestem was 36.014 million kwh at a cost of $1.979 million. In 2021, total kWh purchased was 393.771 million at a cost of $19.558 million.
OPERATION & 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 $4.484 million in 2022, compared to $4.429 million in 2021. Due to a few major storms in 2022, had many miles of damaged line and related equipment. The costs to the District for repair of the damage amounted to nearly $1.3 million. In certain circumstances, reimbursement from the government (FEMA/NEMA) may be available. Unfortunately, the District received less than $100,000 in reimbursement.
Depreciation of system and capital assets is the largest nonoperating expense. In 2022 depreciation expense was $2.363 million, compared to $2.207 million in 2021.
LONG TERM DEBT
In 2022 the District did not incur any new debt. A bond issue from 2014 was paid off, leaving total bond debt at $9.2 million.
With interest increasing in 2022 the District was to earn more from investments. Interest income in 2022 was $152,651 compared to $43,983 in 2021.
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 $3.054 million to $80.116 million. Total utility plant in 2021 was $77.062 million. At the end of 2022, the District’s equity in relation to assets was 82 percent.
CASH AND INVESTMENTS
As of December 31, 2022, cash and investments totaled $14.655 million. Of that, $2.877 million is restricted funds that are kept for rate stabilization and held in capital membership accounts.
Perennial ended 2022 once again in a strong financial position, despite unexpected storm damage costs. Perennial’s management and board of directors always strive to manage 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 Mike Haumont the Manager of Finance and Accounting at 402-362-3355.