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

Monthly Reports and Financial Results As of May 31, 2020

VALLEY ELECTRIC ASSOCATION CONSOLIDATED YEAR OVER YEAR MONTHLY RESULTS MAY 2020 STATEMENT - UNAUDITED 2020 2019 VARIANCE BUDGET VARIANCE VEA $ 4,901,142 $ 4,507,449 8.7% $ 4,645,898 5.5% VETA $ 565,965 $ 664,542 -14.8% $ 670,190 -15.6% Comms $ 745,230 $ 622,937 19.6% $ 748,227 -0.4% Operating Income $ 6,212,338 $ 5,794,928 7.2% $ 6,064,315 2.4% Total Cost of Power 2,591,538 2,676,087 3.2% 2,563,420 -1.1% GROSS OPERATING MARGIN 3,620,800 3,118,841 16.1% 3,500,895 3.4% Distribution Expense - Operation 847,631 789,734 -7.3% 777,731 -9.0% Distribution Expense - Maintenance 260,183 287,505 9.5% 322,069 19.2% Consumer Accounts Expense 185,079 203,685 9.1% 215,748 14.2% Customer Service & Informational Expense 52,714 68,421 23.0% 62,305 15.4% Sales Expense 44,191 75,831 41.7% 49,968 11.6% Administrative and General Expense 618,995 958,941 35.5% 704,783 12.2% TOTAL OPERATING EXPENSES 2,008,793 2,384,118 15.7% 2,132,603 5.8% Fixed Costs (Depr. & Taxes) 1,110,252 1,072,312 -3.5% 1,111,548 0.1% Interest Expense (LTD) 738,285 754,444 2.1% 761,358 3.0% Interest Charged to Construction 1,593 1,096 -45.4% 1,220 0.0% Interest Expense - Other 33,697 167,672 79.9% 32,160 -4.8% Other Deductions 9,781 11,506 15.0% 6,763 -44.6% TOTAL EXPENSES FOR VEA 3,902,400 4,391,147 11.1% 4,045,652 3.5% NET OPERATING MARGIN (281,600) (1,272,306) 77.9% (544,757) 48.3% Interest Income (Non-Operating) 2,673 17,439 -84.7% 8,080 -66.9% Non-Operating Margins - Other 1,046 (32,352) 103.2% (9,775) 110.7% Other - Capital Credits & Patronage Dividends - - - - 0.0% NET NON-OPERATING MARGIN 3,719 (14,913) 124.9% (1,695) 319.4% TOTAL MARGINS $ (277,881) $ (1,287,219) 78.4% $ (546,452) 49.1% EBITDA $ 1,602,226 $ 723,217 121.5% $ 1,361,529 17.7%

VALLEY ELECTRIC ASSOCIATION CONSOLIDATED INCOME STATEMENT - UNAUDITED PERIOD ENDED MAY 31, 2020 YTD(MAY) YTD(MAY) YTD(MAY) MAY 2020 VS 2019 2020 VS BUD 2019 2020 BUD 2020 Dollars % Dollars % Operating Revenue and Patronage Capital 33,332,178 34,005,990 33,998,217 6,212,338 673,812 2.0% 7,773 0.0% Power Production Expense - - Cost of Purchased Power 16,107,202 14,655,653 14,899,776 2,591,538 1,451,550 9.0% 244,123 1.6% Distribution Expense - Operation 3,597,753 3,976,190 3,910,475 847,631 (378,437) -10.5% (65,715) -1.7% Distribution Expense - Maintenance 1,566,315 1,413,679 1,609,798 260,183 152,636 9.7% 196,120 12.2% Consumer Accounts Expense 1,023,629 1,014,909 1,081,134 185,079 8,720 0.9% 66,225 6.1% Customer Service and Informational Expense 245,750 307,108 311,387 52,714 (61,359) -25.0% 4,278 1.4% Sales Expense 380,237 200,727 249,595 44,191 179,510 47.2% 48,868 19.6% Administrative and General Expense 5,699,425 3,618,194 3,517,870 618,995 2,081,231 36.5% (100,324) -2.9% Total Operation & Maintenance Expense 28,620,312 25,186,461 25,580,035 4,600,331 3,433,851 12.0% 393,574 1.5% Depreciation & Amortization Expense 5,319,520 5,458,266 5,451,302 1,093,730 (138,746) -2.6% (6,964) -0.1% Tax Expense - Property & Gross Receipts 0 - 0 - Tax Expense - Other 96,764 83,719 82,500 16,522 13,045 13.5% (1,219) -1.5% Interest on Long-Term Debt 3,771,728 3,742,027 3,813,471 738,285 29,702 0.8% 71,445 1.9% Interest Charged to Construction (Credit) 5,070 5,611 6,100 1,593 (541) -10.7% 489 8.0% Interest Expense - Other 842,359 184,868 176,871 33,697 657,490 78.1% (7,997) -4.5% Other Deductions 57,584 50,692 33,817 9,781 6,892 12.0% (16,875) -49.9% Total Cost of Electric Service 38,713,338 34,711,643 35,144,096 6,493,938 4,001,695 10.3% 432,453 1.2% Patronage Capital & Operating Margins (5,381,160) (705,653) (1,145,879) (281,600) 4,675,507 86.9% 440,226 38.4% Non Operating Margins - Interest 98,525 36,909 40,320 2,673 (61,616) -62.5% (3,411) -8.5% Allowance for Funds Used During Construction 0 0 0 0 0 - 0 - Income (Loss) from Equity Investments 0 - 0 - Non Operating Margins - Other 156,351 (31,637) (48,875) 1,046 (187,989) -120.2% 17,238 35.3% Generation & Transmission Capital Credits 0 - 0 - Other Capital Credits & Patronage Dividends 427,964 495,607 500,000 0 67,643 15.8% (4,393) -0.9% Extraordinary Items 0 - 0 - Patronage Capital or Margins (4,698,321) (204,774) (654,434) (277,881) 4,493,546 95.6% 449,659 68.7% EBITDA 4,654,282 8,768,838 8,384,366 1,602,226 4,114,556 88.4% 384,472 4.6%

VALLEY ELECTRIC ASSOCIATION CONSOLIDATED BALANCE SHEET - UNAUDITED AS OF MAY 31, 2020 ASSETS AND OTHER DEBITS LIABILITIES AND OTHER CREDITS 1. Total Utility Plant in Service $339,552,556 30. Memberships $194,860 2. Construction Work in Progress 4,065,085 31. Patronage Capital 130,927,937 3. Total Utility Plant (1+2) 343,617,642 32. Operating Margins - Prior Years (63,694,146) 4. Accum. Provision for Depreciation and Amort 98,963,514 33. Operating Margins - Current Year (705,653) 5. Net Utility Plant (3-4) 244,654,128 34. Non-Operating Margins 500,879 6. Nonutility Property - Net 0 35. Other Margins & Equities 10,663,406 7. Investment in Subsidiary Companies 0 36. Total Margins & Equities (30 thru 35) 77,887,283 8. Invest. in Assoc. Org. - Patronage Capital 5,623,419 37. Long-Term Debt RUS (Net) 0 9. Invest. in Assoc. Org. - Other - General Funds 0 (Payments-Unapplied ($___________) 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 1,065,373 39. Long-Term Debt - Other - RUS Guaranteed 0 13. Special Funds 0 40. Long-Term Debt - Other(Net) 226,899,263 14. Total Other Property & Investments (6 thru 13) 8,535,097 41. Long-Term Debt - RUS Economic Development (Net) 0 15. Cash-General Funds 3,744,688 42. Payments - Unapplied 16. Cash-Construction Funds-Trustee 0 43. Total Long-Term Debt (37 thru 41 - 42) 226,899,263 17. Special Deposits 4,392,396 44. Obligations Under Capital Leases 1,792,359 18. Temporary Investments 0 45. Accumulated Operating Provisions - Asset Retirement Obligations 2,410,416 19. Notes Receivable - Net 0 46. Total Other Noncurrent Liabilities (44+45) 4,202,775 20. Accounts Receivable - Net Sales of Energy 5,691,352 47. Notes Payable 0 21. Accounts Receivable - Net Other 1,432,633 48. Accounts Payable 5,922,718 22. Renewable Energy Credits 0 49. Consumers Deposits 815,635 23. Materials & Supplies - Electric and Other 4,478,950 50. Current Maturities Long-Term Debt 8,017,022 24. Prepayments 1,736,047 51. Current Maturities Long-Term Debt-Economic Dev. 25. Other Current & Accrued Assets 4,029 52. Current Maturities Capital Leases 3,484,425 26. Total Current & Accrued Assets (15 thru 25) 21,480,095 53. Other Current & Accrued Liabilities 5,203,292 27. Regulatory Assets 0 54. Total Current & Accrued Liabilities (47 thru 53) 23,443,092 28. Deferred Debits 60,305,437 55. Regulatory Liabilities 0 29. Total Assets & Other Debits (5+14+26+thru 28) $334,974,756 56. Deferred Credits 2,542,343 57. Total Liabilities & Other Credits (36+43+46+54 thru 56) $334,974,756

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