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Statement of Revenue For Okanogan County Electric Coop (OCEC) & Estimated Okanogan County Energy Inc (OCEI)

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Consolidated CompanyElectric CompanyPropane Company

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YearYearPctYearYearPctYearYearPct

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20102009Change20102009Change20102009Change

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Operating Revenue$6,520,875$6,297,1333.6%$4,677,262$4,327,3228.1%$1,843,613$1,969,811(-6.4%)

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Operating Expenses

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Cost of power3,201,7673,108,8483.0%2,091,6032,084,8790.3%1,110,1641,023,9698.4%

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Distribution, operation403,488433,150(-6.8%)73,40584,210(-12.8%)330,083348,940(-5.4%)

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Distribution, maintenance745,229703,6095.9%732,693674,0798.7%12,53629,530(-57.5%)

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Customer accounts265,129253,5494.6%265,129253,5494.6%00

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Sales1,4331,922(-25.4%)1,4331,922(-25.4%)

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Administrative and general726,704675,2687.6%559,826518,5388.0%166,878156,7306.5%

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Depreciation and amortization408,956400,3862.1%298,234289,8702.9%110,722110,5160.2%

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Taxes178,131167,5856.3%147,591131,52912.2%30,54036,056(-15.3%)

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Total$5,930,837$5,744,3173.2%$4,168,481$4,036,6543.3%$1,762,356$1,707,6633.2%

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Operating Margins Before Fixed

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Charges and Other Income590,038552,8166.7%508,781290,66875.0%81,257262,148(-69.0%)

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Fixed Charges

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Interest on long term debt350,356336,7114.1%254,599239,1116.5%95,75797,600(-1.9%)

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Operating Margins after

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Fixed Charges239,682216,10510.9%254,18251,557393.0%(14,500)164,548(-108.8%)

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Capital Credits35,80328,31126.5%35,80328,31126.5%n/an/a

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Operating Margins275,485244,41612.7%289,98579,868263.1%(14,500)164,548(-108.8%)

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Non-Operating Margins

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Interest income43,97737,32217.8%42,34735,97117.7%1,6301,35120.7%

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USDA Grant200,0000200,0000

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Total243,97737,322553.7%242,34735,971573.7%1,6301,35120.7%

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Net Margins Before Income Tax519,462281,73884.4%532,332115,839359.5%(12,870)165,899(-107.8%)

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Federal Income Tax014,798n/an/a014,798

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Net Margins$519,462$266,94094.6%$532,332$115,839359.5%($12,870)$151,101(-108.5%)

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The data for the consolidated report and electric company are directly taken from the published 2010 auditors report from The OCEC website at http://okanoganelectriccoop.com/Financial/OCEC-2010AuditedFinancials.pdf . The propane company figures were estimated (created) by subtracting the electric company from the consolidated report. This was performed is MS Excel and the pct change column was also added. Please refer to the original documents for verification of all numbers. Note that I am not a financial expert and performed this simple subtraction calculation 4/4/2011 for estimation purposes only.

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Notes:

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1. Customer accounts line... the OCEC handles OCEI propane billing. There should be a transfer payment between propane and electric so that propane takes their share of the billing cost. As it is now, propane is understated and electric is overstated.

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2. Row headings are as stated in the auditors report... and were not changed to fit the differences between the electric non-profit coop and the propane for profit corporation... or possibly changed to better nomenclature for general financial report standards.

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3. The lack of transfer payments between the companies will distorts the margin numbers and does not give a true P/L picture of the propane business.

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4. There are some differences in the electric company data that was listed and the CFC form 7 for 2010. No attempt has been made to resolve those numbers.

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5. Data on the published auditors report to make the same calculations for balance sheet information was not available, so no breakdown could be made at this time for asset and liability categories which would be very informative. I will look into the Form 7 data to see what I might be able to come up with.