DULLES, VA--(Marketwired - May 3, 2013) - The National Rural Utilities Cooperative Finance Corporation (CFC) (
"This year's preliminary data show co-op management and boards have maintained healthy systems despite difficult economic times -- including the steepest decline in kilowatt-hour sales on record," said Rich Larochelle, CFC senior vice president, Corporate Relations.
Preliminary KRTA data are based on information submitted by 703 electric cooperatives for the year ending Dec. 31, 2012, as compared with 2011 KRTA results from the same group of cooperatives. Emerging trends include:
- Cooperatives maintained strong financial positions. For the preliminary group of reporting cooperatives, the median system's equity as a percentage of assets increased to 42.43 percent, up slightly from the 2011 median of 41.99 percent for the same group. Coverage ratios remained relatively unchanged. The median times interest earned ratio (TIER) for the group improved from 2.36 in 2011 to 2.39; median modified debt service coverage (MDSC) decreased slightly from 1.79 in 2011 to 1.77.
Distribution cooperatives continued to take advantage of low interest rates, reflected in a continuing decline in the blended interest rate. The median rate for the group dropped from 4.79 percent in 2011 to 4.59 percent, the lowest in at least five years.
- Sales took a steep decline. The preliminary group's median kilowatt-hour sales dropped by 2.13 percent in 2012, following a 2011 decrease of 0.34 percent. Median consumer growth was up slightly but remained sluggish, increasing from 0.28 percent in 2011 to 0.41 percent.
- Consumers continued to make timely payments. Electric bills remained a priority for cooperative members in 2012. Overdue bills (over 60 days) as a percentage of operating revenue decreased from 0.15 percent in 2011 to 0.13 percent. The median amount written off as a percent of operating revenue also declined, from 0.17 percent in 2011 to 0.15 percent.
The final KRTA report, which will include data from approximately 815 distribution cooperatives, will be completed by mid-summer.
The National Rural Utilities Cooperative Finance Corporation (CFC) is a nonprofit finance cooperative created and owned by America's electric cooperative network. With approximately $21 billion in assets, CFC is committed to providing unparalleled industry expertise, flexibility and responsiveness to serve the needs of our member-owners. Visit us online at www.nrucfc.coop.
CFC developed the KRTA in 1975 to provide electric cooperative managers and board members a complete picture of their system's financial performance and to help them analyze results compared with medians from other electric cooperatives. Medians are used as opposed to averages, which can be skewed by extreme responses. The KRTA is based on unaudited data reported by electric distribution cooperatives.