Turlock Irrigation District Management’s Discussion and Analysis (Unaudited) December 31, 2020 and 2019
Other noncurrent liabilities Other noncurrent liabilities decreased $2.6 million in 2020. The decrease was primarily due to a decrease of $1.3 million in the net pension liability, decrease of $1.1 million in derivative financial instruments and a decrease of $0.4 million in TID's Pacific Gas & Electric (PG&E) pipeline obligations offset by an increase of $0.2 million in TID’s asset retirement obligation. Other current liabilities Other current liabilities decreased $13.9 million in 2020. The decrease was due to a net decrease in commercial paper of $4.4 million, a net decrease in gas and power accounts payable and accrued expenses of $4.9 million, a decrease of interest payable of $2.5 million, a decrease in customer deposits and advances of $2.0 million, a decrease of $0.4 million in current portion of lease obligations and a decrease of $0.4 million in derivative financial instruments offset by an increase in accrued salaries, wages and related benefits of $0.7 million. Deferred inflow of resources Deferred inflow of resources increased $30.5 million due to an increase of $25.9 million in the power supply adjustment, a $4.1 million net increase in deferred debt refunding gain as a result of current year refunding, a net increase in deferred pension inflows of $1.5 million and $0.9 million increase in unrealized gain on investments offset by a decrease of $1.7 million in deferred auction sales and a decrease in deferred OPEB inflows of $0.2 million. Changes in net position Operating revenues Operating revenues decreased $1.0 million from $343.0 million in 2019 to $342.0 million in 2020. Wholesale electric revenues decreased $7.9 million to $47.0 million in 2020 from $55.0 million in 2019, as a result of a decrease in volume sold offset by a small an increase in average sales price. Volumes decreased approximately 14.0% when compared to 2019 while average sales price increased approximately 6.2% from an average of $41/megawatt hours (MWh) in 2019 to $44/MWh in 2020. Wholesale gas revenues decreased $1.6 million primarily due to a decrease in sales volume. Electric retail power revenues were up $10.5 million primarily due to a deferral of $25.9 million, which reduced revenues in 2020 as a result of the power supply adjustment compared to a deferral of $30.2 million in 2019. The Board elected to utilize electric rate stabilization of $0 million in 2020 compared to $9.6 million in 2019 to fund capital projects. Consumption for 2020 was up approximately 5.8% when compared to 2019.
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