FOR IMMEDIATE RELEASE

For Release: June 26, 2014

Contact: Brad Captain, Corporate Relations

Data Show kWh Sales Growth Rebounds for First Time Since 2010

DULLES, Va.—The National Rural Utilities Cooperative Finance Corporation (CFC) has compiled findings from its annual Key Ratio Trend Analysis (KRTA), an annual assessment of financial trends among electric distribution cooperatives nationwide.

“This year’s data show that the electric cooperative network has maintained several positive trends from recent years, including strengthened financial positions,” said Steve Kettler, CFC senior vice president, Strategic Business Development & Support Group.

The most recent KRTA data are based on information submitted by 815 electric cooperatives for the year ending Dec. 31, 2013. Notable trends include:

• Sales reversed a downward trend. Electric cooperatives’ median kilowatt-hour sales grew by 3.13 percent in 2013—a reversal of a downward trend in recent years. The uptick in sales occurred despite relatively flat median consumer growth, which increased slightly to 0.50 percent in 2013 from 0.43 percent in 2012.
• Cooperatives maintained strong financial positions. The median system’s equity as a percentage of assets increased to 43 percent in 2013, up slightly from the 2012 median of 42.95 percent. Coverage ratios also showed improvement. The median times interest earned ratio (TIER) improved to 2.62 from 2.42 in 2012; median modified debt service coverage (MDSC) increased to 1.87 from 1.81 in 2012.
• Consumers continued to make timely payments. Despite a sluggish national economy, electric bills remained a priority for cooperative members in 2013. Overdue bills (more than 60 days) as a percentage of operating revenue held at last year’s median of 0.13 percent. The median amount written off as a percent of operating revenue improved slightly, to 0.14 percent from 0.15 percent in 2012.

Except as required by law, CFC undertakes no obligation to update or publicly release any revisions to statements in this press release to reflect events, circumstances or changes in expectations after the date on which the release is issued.

About CFC

The National Rural Utilities Cooperative Finance Corporation (CFC) is a nonprofit finance cooperative created and owned by America’s electric cooperative network.

With more than $23 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.

About KRTA

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.

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