August 20, 2018, Mesquite, NV – The Overton Power District is on solid footing and is performing well in comparison to other utilities in Nevada and across the nation. This was according to an annual Key Ratio Trend Analysis released recently for 2017 by the National Rural Cooperative Finance Corporation (CFC), a major financing organization for rural utilities.
“In this report, the district is compared to other entities across the state, and also with similarly-sized utilities across the country,” said MeLisa Garcia, OPD’s accounting supervisor, in an OPD Board of Trustees meeting held Wednesday, August 15 in Mesquite, NV. “It gives a picture of the industry as a whole and how we fit within that industry.”
In nearly every measure covered by the CFC Analysis, the OPD showed strength and stability.
Chief among these was in the measures showing the district’s reliability of service. In 2017, the average duration of system interruptions for OPD was at only 30 minutes. That was compared to 124 minutes per average service interruption for utilities in Nevada, and 218 minutes for similarly-sized utilities nation-wide.
Where OPD really shined was in one measure showing the percentage of total time that its system remains in service. In this ratio, OPD showed 99.99 percent in service for the year 2017. The statewide number for that period averaged 99.98 percent, while the nation-wide ratio was at 99.96 percent.
The Analysis also showed that OPD has performed well in controlling its costs, compared to its peers. Total Controllable Expenses per consumer came in at only $368 per customer in 2017. That was far below the state average at $920/customer and the national average at $516/customer.
In addition, the report showed that OPD is working relatively efficiently with a lean staff. According to the Analysis, OPD is operating at 320 customers per district employee. That was almost on par with the national number of 326. But it was far better than the Nevada average in this category which was at only 168 customers per employees.
OPD also compares well in its cost of power ratio. In 2017, the district paid an average of just 5.52 cents per kilowatt-hour (kWh) sold. That was compared to 6.6 cents in similarly-sized utilities nation-wide.
The Analysis also showed OPD on a sure footing in its ability to pay its debts. CFC uses a measure called Debt Service Coverage ratio to show the financial stability of a utility in this category, requiring utilities a minimum ratio of 1.35 percent, anything above that threshold is considered healthy. OPD far exceeds that threshold at 2.58 percent for 2017, qualifying OPD for additional interest rate discounts. That is compared to 1.33 percent as a statewide average, and 2.15 percent for similarly-sized utilities nation-wide.
“We are pleased with the district’s performance on these important key ratios,” said OPD General Manager Mendis Cooper. “It represents a strong focus over many years by our board of directors. But it also represents a company-wide effort from all of our employees to save dollars, reduce spending and operate even more efficiently.”