Monthly Reports and Financial Results As of March 31, 2020 VALLEY - PowerPoint PPT Presentation

Monthly Reports and Financial Results As of March 31, 2020

VALLEY ELECTRIC ASSOCATION CONSOLIDATED YEAR OVER YEAR MONTHLY RESULTS PRELIMINARY UNAUDITED MARCH STATEMENT 2020 2019 VARIANCE BUDGET VARIANCE VEA $ 5,056,375 $ 5,315,010 -4.9% $ 5,037,102 0.4% VETA $ 644,239 $ 913,849 -29.5% $ 670,190 -3.9% Comms $ 720,926 $ 609,920 18.2% $ 717,838 0.4% Operating Income $ 6,421,540 $ 6,838,780 -6.1% $ 6,425,130 -0.1% Total Cost of Power 2,700,742 3,319,172 18.6% 2,783,134 3.0% GROSS OPERATING MARGIN 3,720,798 3,519,607 5.7% 3,641,996 2.2% Distribution Expense - Operation 763,091 774,177 1.4% 792,089 3.7% Distribution Expense - Maintenance 294,006 350,789 16.2% 321,941 8.7% Consumer Accounts Expense 210,338 185,335 -13.5% 216,343 2.8% Customer Service & Informational Expense 58,316 30,941 -88.5% 62,266 6.3% Sales Expense 30,679 69,951 56.1% 49,930 38.6% Administrative and General Expense 753,588 938,886 19.7% 706,132 -6.7% TOTAL OPERATING EXPENSES 2,110,017 2,350,080 10.2% 2,148,702 1.8% Fixed Costs (Depr. & Taxes) 1,108,610 1,073,305 -3.3% 1,106,548 -0.2% Interest Expense (LTD) 754,451 785,431 3.9% 762,816 1.1% Interest Charged to Construction 296 1,112 73.3% 1,220 0.0% Interest Expense - Other 36,979 176,892 79.1% 35,383 -4.5% Other Deductions 10,913 12,424 12.2% 6,763 -61.4% TOTAL EXPENSES FOR VEA 4,021,267 4,399,243 8.6% 4,061,432 1.0% NET OPERATING MARGIN (300,468) (879,636) 65.8% (419,436) 28.4% Interest Income (Non-Operating) 9,451 19,891 -52.5% 8,080 17.0% Non-Operating Margins - Other (3,243) (715) -353.3% (9,775) 66.8% Other - Capital Credits & Patronage Dividends 495,607 427,964 15.8% 500,000 0.0% NET NON-OPERATING MARGIN 501,815 447,139 12.2% 498,305 0.7% TOTAL MARGINS $ 201,347 $ (432,497) 146.6% $ 78,869 155.3% EBITDA $ 1,599,868 $ 1,157,104 38.3% $ 1,486,532 7.6%

VALLEY ELECTRIC ASSOCIATION PRELIMINARY CONSOLIDATED INCOME STATEMENT - UNAUDITED PERIOD ENDED MARCH 31, 2020 YTD(MAR) YTD(MAR) YTD(MAR) MAR 2020 VS 2019 2020 VS BUD 2019 2020 BUD 2020 Dollars % Dollars % 1. Operating Revenue and Patronage Capital 21,623,776 21,882,787 21,825,439 6,421,540 259,011 1.2% 57,348 0.3% 2. Power Production Expense - - 3. Cost of Purchased Power 11,188,229 9,645,627 9,812,463 2,700,742 1,542,602 13.8% 166,836 1.7% 6. Distribution Expense - Operation 2,182,982 2,321,147 2,355,333 763,091 (138,165) -6.3% 34,186 1.5% 7. Distribution Expense - Maintenance 993,519 867,349 965,788 294,006 126,170 12.7% 98,439 10.2% 8. Consumer Accounts Expense 608,668 632,038 649,071 210,338 (23,370) -3.8% 17,033 2.6% 9. Customer Service and Informational Expense 125,556 200,726 186,815 58,316 (75,171) -59.9% (13,912) -7.4% 10. Sales Expense 239,389 121,970 149,697 30,679 117,418 49.0% 27,726 18.5% 11. Administrative and General Expense 3,702,099 2,231,240 2,108,857 753,588 1,470,859 39.7% (122,383) -5.8% 12. Total Operation & Maintenance Expense (2 thru 11) 19,040,442 16,020,098 16,228,023 4,810,759 3,020,344 15.9% 207,925 1.3% 13. Depreciation & Amortization Expense 3,186,030 3,271,301 3,261,206 1,092,088 (85,271) -2.7% (10,095) -0.3% 14. Tax Expense - Property & Gross Receipts 0 - 0 - 15. Tax Expense - Other 53,294 49,581 49,500 16,522 3,713 7.0% (81) -0.2% 16. Interest on Long-Term Debt 2,267,188 2,267,272 2,290,423 754,451 (83) 0.0% 23,151 1.0% 17. Interest Charged to Construction (Credit) 2,555 2,421 3,660 296 134 5.3% 1,239 33.9% 18. Interest Expense - Other 508,836 115,808 110,934 36,979 393,028 77.2% (4,874) -4.4% 19. Other Deductions 36,619 34,066 20,290 10,913 2,553 7.0% (13,776) -67.9% 20. Total Cost of Electric Service (12 thru 19) 25,094,966 21,760,548 21,964,036 6,722,009 3,334,418 13.3% 203,488 0.9% 21. Patronage Capital & Operating Margins (1 minus 20) (3,471,189) 122,239 (138,598) (300,468) 3,593,429 103.5% 260,837 188.2% 22. Non Operating Margins - Interest 64,931 29,619 24,160 9,451 (35,313) -54.4% 5,459 22.6% 23. Allowance for Funds Used During Construction 0 0 0 0 0 - 0 - 24. Income (Loss) from Equity Investments 0 - 0 - 25. Non Operating Margins - Other 119,558 (30,911) (29,325) (3,243) (150,468) -125.9% (1,586) -5.4% 26. Generation & Transmission Capital Credits 0 - 0 - 27. Other Capital Credits & Patronage Dividends 427,964 495,607 500,000 495,607 67,643 15.8% (4,393) -0.9% 28. Extraordinary Items 0 - 0 - 29. Patronage Capital or Margins (21 thru 28) (2,858,737) 616,554 356,237 201,347 3,475,291 121.6% 260,317 73.1% 30. EBITDA 2,546,714 5,828,622 5,577,125 1,599,868 3,281,908 128.9% 251,497 4.5%

VALLEY ELECTRIC ASSOCIATION CONSOLIDATED BALANCE SHEET - UNAUDITED AS OF MARCH 31, 2020 ASSETS AND OTHER DEBITS LIABILITIES AND OTHER CREDITS 1. Total Utility Plant in Service $339,118,526 30. Memberships $194,150 2. Construction Work in Progress 3,645,941 31. Patronage Capital 130,990,318 3. Total Utility Plant (1+2) 342,764,467 32. Operating Margins - Prior Years (63,694,146) 4. Accum. Provision for Depreciation and Amort 96,706,360 33. Operating Margins - Current Year 122,239 5. Net Utility Plant (3-4) 246,058,107 34. Non-Operating Margins 494,315 6. Nonutility Property - Net 0 35. Other Margins & Equities 10,624,825 7. Investment in Subsidiary Companies 0 36. Total Margins & Equities (30 thru 35) 78,731,702 8. Invest. in Assoc. Org. - Patronage Capital 5,639,266 37. Long-Term Debt RUS (Net) 0 9. Invest. in Assoc. Org. - Other - General Funds 0 (Payments-Unapplied ($___________) 10. Invest in Assoc. Org. - Other - Nongeneral Funds 1,846,304 38. Long-Term Debt - FFB - RUS Guaranteed (Net) 0 11. Investments in Economic Development Projects (Payments-Unapplied ($___________) 12. Other Investments 1,111,678 39. Long-Term Debt - Other - RUS Guaranteed 0 13. Special Funds 0 40. Long-Term Debt - Other(Net) 227,217,519 14. Total Other Property & Investments (6 thru 13) 8,597,249 41. Long-Term Debt - RUS Economic Development (Net) 0 15. Cash-General Funds 2,193,409 42. Payments - Unapplied 16. Cash-Construction Funds-Trustee 0 43. Total Long-Term Debt (37 thru 41 - 42) 227,217,519 17. Special Deposits 4,381,444 44. Obligations Under Capital Leases 2,371,800 18. Temporary Investments 0 45. Accumulated Operating Provisions - Asset Retirement Obligations 2,403,978 0 46. Total Other Noncurrent Liabilities (44+45) 4,775,778 19. Notes Receivable - Net 20. Accounts Receivable - Net Sales of Energy 5,817,700 47. Notes Payable 0 21. Accounts Receivable - Net Other 1,517,583 48. Accounts Payable 5,975,415 22. Renewable Energy Credits 0 49. Consumers Deposits 870,746 23. Materials & Supplies - Electric and Other 4,447,715 50. Current Maturities Long-Term Debt 8,010,131 24. Prepayments 1,862,847 51. Current Maturities Long-Term Debt-Economic Dev. 25. Other Current & Accrued Assets 13,639 52. Current Maturities Capital Leases 3,469,049 26. Total Current & Accrued Assets (15 thru 25) 20,234,337 53. Other Current & Accrued Liabilities 3,835,331 27. Regulatory Assets 0 54. Total Current & Accrued Liabilities (47 thru 53) 22,160,673 28. Deferred Debits 60,725,692 55. Regulatory Liabilities 0 29. Total Assets & Other Debits (5+14+26+thru 28) $335,615,384 56. Deferred Credits 2,729,713 57. Total Liabilities & Other Credits (36+43+46+54 thru 56) $335,615,384

VALLEY ELECTRIC ASSOCIATION ADDITIONAL SUPPORTING REPORTS AS OF MARCH 31, 2020