Page 21 - Moreno Valley 2019 Popular Annual Financial Report

MORENO VALLEY ELECTRIC UTILITY

Moreno Valley Electric Utility (MVU): This fund is an Enterprise Fund which is used to account for the
operations of MVU, with a mission to provide safe, reliable, and economical electric service to consumers
in the City’s newly developed areas under the “Greenfield” concept. The City began serving its first
customers in February 2004.
MORENO VALLEY UTILITY
NET POSITION (IN $000’S)
MVU REVENUES FY 16/17 FY 17/18 FY 18/19
Sales and Service Charges $28,816 $31,032 $30,768
Miscellaneous* $613 $3,850 $3,538
Total Revenues $29,429 $34,882 $34,306

MVU EXPENDITURES FY 16/17 FY 17/18 FY 18/19
Electricity Purchased $12,112 $12,715 $12,400
Other Operating Expenses $10,154 $12,378 $14,098
Interest Expense $3,053 $1,494 $2,248
Total Expenditures $25,319 $26,587 $28,746

Change in Net Position $4,110 $8,296 $5,560 *Includes “other” revenues such
Restatement of Net Position $(283) as Interest Revenue, Contributed
Total Net Position $30,293 $38,588 $44,148 Capital, and Engineering Plan
Check Fees.
FY 18/19 ELECTRIC UTILITY EXPENSES
As an Enterprise Fund, MVU generates most of
43% its revenues from charges for services provided,
Electricity 20% much like a business. As such, the primary
Purchased
Services and source of revenue for MVU is sales and service
Supplies
charges which saw a 0.9% decrease over the
prior year. In total, MVU revenues decreased
1.7% to $34.3 million.

Electricity purchases, MVU’s largest expense,
experienced a 2.5% decrease over the prior
2% 16%
Other 4% 7% 8% year. Other operating expenses include cost of
Expenses Cost of Depreciation Interest Distribution
Services Share services, depreciation, services and supplies,
Expenses Expense
and distribution share expenses. These expenses
increased 13.9%, while interest expense saw an
TOTAL NET POSITION increase of 50.5%. In total, MVU expenditures
increased 8.1% to $28.7 million.

MVU ON THE RISE
FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19
$60

$40
MILLIONS $20 The Net Position for MVU indicates a positive

percentage change of 14.4% from FY 17/18. Positive
percentage changes in Net Position indicate that
$0 the financial position of the Moreno Valley Electric
Utility has improved.

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