Page 13 - 2020 Popular Annual Financial Report

moreno valley

ELECTRIC ULTILITY

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 CHANGES IN NET POSITION (IN $000’S)

MVU REVENUES FY 17/18 FY 18/19 FY 19/20
Sales and Service Charges $31,032 $30,768 $35,475
Miscellaneous* $3,850 $3,538 $3,122
Total Revenues $34,882 $34,306 $38,597

MVU EXPENDITURES FY 17/18 FY 18/19 FY 19/20
Electricity Purchased $12,715 $12,400 $11,707
Other Expenses** $12,378 $14,098 $16,099
Interest Expense $1,494 $2,248 $2,856
Total Expenditures $26,587 $28,746 $30,662
Change in Net Position $8,295 $5,560 $7,935

*Includes “other” revenues such as Interest Revenue, Contributed Capital, and Engineering Plan Check Fees. ** Includes transfers out

FY 19/20 ELECTRIC UTILITY As an Enterprise Fund, MVU generates most of its revenues from charges
EXPENSES for services provided, much like a business. As such, the primary source
of revenue for MVU is sales and service charges which saw a 15.3%
increase over the prior year. In total, MVU revenues increased 12.8% to
$38.6 million.
52%
Other Electricity purchases, MVU’s largest expense, experienced a 5.6%
Expenses 39% decrease over the prior year. Other operating expenses include cost of
Electricity
Purchased services, depreciation, services and supplies, and distribution share
expenses. These expenses increased 15%, while interest expense
saw an increase of 27%. In total, MVU expenditures increased 6.9%
9%
Interest Expense to $30.7 million.

MVU on the rise
TOTAL NET POSITION

FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20
The Net Position for MVU indicates a positive percentage
$60 change of 18% from FY 19/20. Positive percentage changes in
Net Position indicate that the financial position of the Moreno
$40 Valley Electric Utility has improved.
MILLIONS
$20
$26 $30 $39 $44 $52

$0
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