Page 13 - Moreno Valley 204 PAFR

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MorEno VallEy ElECtriC utility
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.
As an Enterprise Fund, MVU generates most of its revenues from charges for services provided, much like a business.
As such, the primary source of revenue for MVU is sales and service charges which saw a 6.1% increase over the prior
year. In total, MVU revenues increased 12.1% to $59.9 million.
Electricity purchases, MVU’s largest expense, experienced a 20.4% decrease over the prior year. Other operating
expenses include cost of services, depreciation, services and supplies, and distribution share expenses. These expenses
increased 6.0%, and interest expense decreased 1.0%. In total, MVU expenditures decreased 4.9% to $38.9 million.
The Net Position for MVU indicates a positive percentage change of 25% from FY 22/23. Positive percentage changes
in Net Position indicate that the financial position of the Moreno Valley Electric Utility has improved.
FY23/24 ELECTRIC UTILITY TOTAL NET POSITION
EXPENSE
$120
62%
$100
Other expenses
$80
millions $60
4% $40 $52 $63 $71 $83 $104
34%
Interest expense $20
Electricity
purchased $0
FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24
MorEno VallEy utility CHangES in nEt poSition (IN $000’S)
MVU REVENUES FY 21/22 FY 22/23 FY 23/24

Sales and service charges $ 45,340 $ 49,581 $ 52,621
Miscellaneous* $ (598) $ 3,834 $ 7,253

Total Revenues $ 44,742 $ 53,415 $ 59,874
MVU EXPENDITURES FY 21/22 FY 22/23 FY 23/24
Electricity purchased $ 14,787 $ 16,386 $ 13,038

Other expenses** $ 18,856 $ 22,910 $ 24,285
Interest expense $ 3,080 $ 1,612 $ 1,595

Total Expenditures $ 36,723 $ 40,908 $ 38,918
Change in net position $ 8,019 $ 12,507 $ 20,956

*Includes “other” revenues such as contributed capital and interest revenue, as well as GASB 31 fair value adjustment
of investments to recognize unrealized gain or loss of securities (in FY 21/22 the fair market value adjustment of
investments recognized a loss)
**Includes loss on disposal of capital assets
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