Otter Tail Corp
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
OTTR$78.44-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0001466593-24-000129
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001466593-24-000140
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 135 previous paragraphs and 140 current paragraphs.
70 unchanged; 48 reworded; 20 added; 14 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
Operating Revenues decreased $20.0 million primarily due to decreased sales volumes in our Manufacturing segment. See our segment disclosures below for additional discussion of items impacting operating revenues.
Current report
•A $1.1 million increase due to the impact of favorable weather.
Current report
•A $2.9 million decrease in fuel recovery revenues due to lower generation from our coal-fired and natural gas facilities and lower market energy prices.
Current report
Retail revenues were also impacted by a net decrease in rider revenues primarily due to increased PTCs from our wind and solar generation, which are passed on to customers, partially offset by additional recovery of costs associated with our advanced meter infrastructure and wind repowering projects.
Current report
Transmission Services Revenues increased $1.5 million primarily due a reduction in our estimated refund liability in connection with the resolution of a contested matter with FERC related to the allowed ROE during certain prior periods, which resulted in an additional nonrecurring revenue in the current period. The impact of the reduced refund was partially offset by refunds paid to other transmission owners in the current period.
Current report
Wholesale Revenues decreased $1.6 million primarily due to a 40% decrease in wholesale sales volumes.
Current report
Depreciation and Amortization increased $1.8 million due to additional assets, including certain distribution assets, being placed in service.
Current report
Operating Revenues decreased $20.8 million primarily due to a 13% decrease in sales volumes, with declines experienced primarily in the recreational vehicle, agriculture, construction, and lawn and garden end markets. Sales volumes have softened due to lower end market demand and inventory management efforts by manufacturers and dealers. A 37% decline in scrap metal revenues, largely driven by lower production volumes and a 6% decrease in steel costs, which are passed through to customers, also contributed to the decrease in operating revenues.
Current report
Cost of Products Sold decreased $11.9 million primarily due to lower sales volumes, as described above.
Current report
Operating Revenues increased $0.7 million as a 13% increase in sales volumes, driven by continued customer sales volume growth and distributor and end market demand, was largely offset by continued declining sales prices. Sales prices have steadily declined throughout the year and decreased 11% compared to the same period last year.
Current report
Selling, General, and Administrative Expenses increased $2.0 million primarily due to costs associated with ongoing litigation regarding the pricing of PVC pipe, which is further described in Note 10 to the consolidated financial statements, as well as variable costs associated with financial performance during the period.
Current report
General, and Administrative Expenses increased $4.4 million primarily due to increased insurance and employee benefit expenses, including increases in our workers' compensation and employee health insurance claim costs, after we had experienced a decline in employee medical costs in the prior year.
Current report
•A $14.8 million decrease in fuel recovery revenues primarily due to a 17% decrease in the cost of purchased power, as well as a 12% decrease in the volume of purchased power driven by unfavorable weather.
Current report
Retail revenues were also impacted by a net increase in rider revenues primarily due to the additional recovery of costs associated with our advanced meter infrastructure and wind repowering projects, partially offset by increased PTCs from our wind and solar generation, which are passed on to customers.
Current report
Depreciation and Amortization increased $5.1 million due to additional assets, including certain distribution assets, being placed in service.
Current report
Property Taxes decreased $1.5 million due to lower taxes associated with certain of our wind farm facilities in North Dakota due to a revision of the tax methodology applied to the property and lower than anticipated tax rates in Minnesota.
Current report
Operating Revenues decreased $34.0 million primarily due to a 12% decrease in sales volumes, with declines experienced primarily in the lawn and garden, agriculture, construction, and horticulture end markets. Sales volumes have softened due to lower end market demand and inventory management efforts by manufacturers, dealers, and distributors. Scrap metal revenues decreased 1%, driven by lower production volumes and lower scrap metal prices, which also contributed to the decrease in operating revenues.
Current report
Cost of Products Sold decreased $24.6 million primarily due to decreased sales volumes, as described above.
Current report
Selling, General, and Administrative Expenses increased $3.1 million due to costs associated with ongoing litigation regarding the pricing of PVC pipe, as well as variable costs associated with increased sales volumes and financial performance during the period.
Current report
On October 30, 2024, OTP entered into an agreement to acquire the assets of a solar facility currently under development. Per the agreement, the purchase price is equal to $23.6 million, plus the reimbursement of certain interconnection costs and costs to purchase and store the main power transformer. Closing of the transaction is expected to occur in the second half of 2025.
Removed paragraphs (14)
Previous report
Operating Revenues increased $4.6 million primarily due to increased sales volumes in our Plastics segment driven by strong distributor and end market demand, partially offset by decreased sales volumes in our Manufacturing segment, and decreased revenues in our Electric segment due to the impact of unfavorable weather. See our segment disclosures below for additional discussion of items impacting operating revenues.
Previous report
•A $2.5 million increase in fuel recovery revenues, primarily due to increased purchase power and fuel costs, partially offset by lower fuel volumes, primarily due to unfavorable weather during the period.
Previous report
Purchased Power costs to serve retail customers increased $4.0 million primarily due to a 50% increase in price of purchased power, as well as an 18% increase in the amount of kwh purchased.
Previous report
Operating and Maintenance Expenses decreased $0.9 million primarily due to lower vegetative management expenses and decreased maintenance costs.
Previous report
Depreciation and Amortization increased $1.7 million due to additional capital investments.
Previous report
Operating Revenues decreased $5.8 million primarily due to decreased sales volumes at both of our manufacturing businesses, with an overall sales volume decrease of 13% compared to the same period last year. At BTD Manufacturing, our contract metal fabricator, sales volumes declined primarily in the lawn and garden and agriculture end markets. A 31% decline in scrap metal revenues also contributed to the overall decrease in operating revenues. Decreased sales volumes and scrap revenues were partially offset by increased steel prices, resulting in a 5% increase in material costs, which are passed through to customers. At T.O. Plastics, our plastics thermoforming manufacturer, sales volume declines were primarily attributable to decreased sales of horticulture products as customers and distributors continued to reduce inventory levels from the high levels previously established due to supply chain challenges.
Previous report
Cost of Products Sold decreased $7.4 million primarily due to decreased sales volumes, partially offset by higher steel costs, as described above.
Previous report
•A $11.8 million decrease in fuel recovery revenues due to lower amounts of purchased power driven by unfavorable weather and decreased market energy costs.
Previous report
•A $1.0 million net increase in rider revenues, excluding the impact of interim revenues in North Dakota, primarily related to additional recovery of costs associated with our meter infrastructure project.
Previous report
Production Fuel costs increased $3.7 million primarily due to increased fuel usage at Big Stone Plant, as there was an outage at the plant during this same period last year, as well as a 4% increase in fuel cost per kwh.
Previous report
Depreciation and Amortization increased $3.3 million due to additional capital investments.
Previous report
Operating Revenues decreased $13.2 million primarily due to decreased sales volumes at both of our manufacturing businesses, with an overall sales volume decrease of 11% compared to the same period last year. At BTD, sales volumes declined primarily in the lawn and garden and agriculture end markets. Decreased scrap metal sales also contributed to the overall decrease in operating revenues. Decreased sales volumes and scrap revenues were partially offset by increased steel prices, resulting in a 3% increase in material costs, which are passed through to customers. At T.O. Plastics sales volume declines were primarily attributable to decreased sales of horticulture products as customers and distributors continued to reduce inventory levels from the high levels previously established due to supply chain challenges.
Previous report
Cost of Products Sold decreased $12.7 million primarily due to decreased sales volumes, partially offset by higher steel costs, as described above.
Previous report
Operating Revenues increased $37.2 million primarily due to a 38% increase in sales volumes driven by customer sales volume growth and distributor and end market demand. Sales volumes in the first half 2023 were impacted by distributors' inventory management strategies amid uncertain market conditions and end market softness. Increased sales volumes were partially offset by a 14% decrease in sales prices compared to the same period last year.
Reworded paragraphs (48)
Previous wording
Operating Expenses decreased $0.2 million primarily due to decreased sales volumes in our Manufacturing segment, lower fuel costs in our Electric segment and lower material costs in our Plastics segment. See our segment disclosures below for additional discussion of items impacting operating expenses.
Current wording
Operating Expenses decreased $6.4 million primarily due to decreased sales volumes in our Manufacturing segment and lower fuel costs in our Electric segment. See our segment disclosures below for additional discussion of items impacting operating expenses.
Previous wording
Interest Expense increased $0.9 million due to increased interest rates on our short-term variable rate debt outstanding at OTP and the issuance of an additional $120.0 million of long-term debt at OTP in March 2024.
Current wording
Interest Expense increased $2.0 million primarily due to the issuance of an additional $120.0 million of long-term debt at OTP in March 2024, the proceeds of which were used to repay short-term borrowings, fund capital expenditures, and support operating activities.
Previous wording
Other Income (Expense)increased $1.2 million, having a positive impact on net income, primarily due to increased investment income earned on our short-term cash equivalent investments and long-term marketable securities, as well as increased allowance for funds used during construction in our Electric segment related to an increase in capital expenditures compared to the same period last year. Increases to other income were partially offset by a lower amount of gains on our corporate-owned life insurance policies compared to the same period last year.
Current wording
Other Income (Expense)increased $3.0 million, having a positive impact on net income, primarily due to increased investment income earned on our short- and long-term investments. Increased investment income was primarily driven by increased available cash for investment from cash generation of our Plastics segment. Gains on our corporate-owned life insurance policies also contributed to the increase in other income.
Previous wording
Income Tax Expense increased $0.5 million primarily due to increased income before income taxes. Our effective tax rate was 19.2% for the three months ended June 30, 2024 and 19.7% for the same period last year.
Current wording
Income Tax Expense decreased $6.1 million primarily due to decreased income before income taxes and an increase in PTCs at OTP due to increased wind and solar generation. Our effective tax rate was 17.9% for the three months ended September 30, 2024 and 21.2% for the same period last year.
Previous wording
Retail Revenues increased $2.7 million primarily due to the following:
Current wording
Retail Revenues increased $0.3 million primarily due to the following:
Previous wording
•A $2.5 million increase in new retail revenues, net of an estimated refund, from an interim rate increase in North Dakota effective January 1, 2024 in connection with OTP's North Dakota rate case filed in November 2023.
Current wording
•A $3.0 million increase in retail revenues, net of an estimated refund, from an interim rate increase in North Dakota effective January 1, 2024 in connection with our current rate case.
Previous wording
The increases in retail revenues described above were partially offset by a $4.3 million decrease in retail revenues due to the impact of unfavorable weather.
Current wording
The increases in retail revenues described above were partially offset by the following:
Previous wording
Nonelectric Selling, General, and Administrative Expenses increased $1.1 million due to variable costs associated with increased business activity and financial performance during the period.
Current wording
Selling, General, and Administrative Expenses decreased $3.4 million primarily due to variable costs associated with decreased business activity and financial performance during the period.
Previous wording
Cost of Products Sold increased $11.2 million due to increased sales volumes, as discussed above, partially offset by a 24% decrease in the cost of PVC resin and other input materials. The unique supply and demand conditions experienced in recent years, which caused significant volatility and increases in resin costs, have subsided and resin costs have remained stable during the first half of the year.
Current wording
Cost of Products Sold increased $5.0 million primarily due to increased sales volumes, as described above. The unique supply and demand conditions experienced in recent years, which caused significant volatility and increases in resin costs, have subsided and resin costs remained stable during the period.
Previous wording
The following table summarizes consolidated operating results for the six months ended June 30, 2024 and 2023:
Current wording
The following table summarizes consolidated operating results for the nine months ended September 30, 2024 and 2023:
Previous wording
Operating Revenues increased $12.6 million primarily due to increased sales volumes within our Plastics segment, partially offset by decreased sales volumes in our Manufacturing segment, and decreased revenues and unfavorable weather in our Electric segment. See our segment disclosures below for additional discussion of items impacting operating revenues.
Current wording
Operating Revenues decreased $7.4 million primarily due to decreased sales prices within our Plastics segment, decreased sales volumes in our Manufacturing segment, and decreased fuel recovery revenues and unfavorable weather in our Electric segment. Within our Plastics segment, the impact of decreased sales prices was more than offset by increased sales volumes. See our segment disclosures below for additional discussion of items impacting operating revenues.
Previous wording
Operating Expenses decreased $6.6 million primarily due to lower purchased power costs in our Electric segment, lower sales volumes within our Manufacturing segment, and lower material costs in our Plastics segment, partially offset by costs associated with increased sales volumes within our Plastics segment. See our segment disclosures below for additional discussion of items impacting operating expenses.
Current wording
Operating Expenses decreased $13.0 million primarily due to lower sales volumes within our Manufacturing segment and lower purchased power costs in our Electric segment, partially offset by the impact of increased sales volumes within our Plastics segment. See our segment disclosures below for additional discussion of items impacting operating expenses.
Previous wording
Interest Expense increased $0.5 million due to increased interest rates on our short-term variable rate debt outstanding at OTP and the issuance of an additional $120.0 million of long-term debt at OTP in March 2024.
Current wording
Interest Expense increased $2.9 million due to the issuance of an additional $120.0 million of long-term debt at OTP in March 2024, the proceeds of which were used to repay short-term borrowings, fund capital expenditures, and support operating activities.
Previous wording
Other Income increased $3.7 million, having a positive impact on net income, primarily due to increased investment income earned on our short-term cash equivalent investments and long-term marketable securities, as well as increased allowance for funds used during construction in our Electric segment related to an increase in capital expenditures compared to the same period last year. Increases to other income were partially offset by a lower amount of gains on our corporate-owned life insurance policies compared to the same period last year.
Current wording
Other Income increased $6.7 million, having a positive impact on net income, primarily due to increased investment income earned on our short-term cash equivalent investments and long-term marketable securities. Increased investment income was primarily driven by increased available cash for investment resulting from cash generation in our Plastics segment. Allowance for funds used during construction in our Electric segment also increased related to an increase in capital expenditures compared to the same period last year.
Previous wording
Income Tax Expense increased $5.0 million primarily due to increased income before income taxes. Our effective tax rate was 19.2% for the six months ended June 30, 2024, and 18.8% for the same period last year. The increase in our effective tax rate was primarily driven by a decrease in PTCs from our wind generation assets compared to the same period last year.
Current wording
Income Tax Expense decreased $1.0 million compared to the same period last year. Our effective tax rate was 18.8% for the nine months ended September 30, 2024, and 19.7% for the same period last year. The decrease in our effective tax rate was primarily driven by an increase in PTCs from our wind and solar generation assets.
Previous wording
The following table summarizes Electric segment operating results for the six months ended June 30, 2024 and 2023:
Current wording
The following table summarizes Electric segment operating results for the nine months ended September 30, 2024 and 2023:
Previous wording
The operating results of our Electric segment are impacted by fluctuations in weather conditions and the resulting demand for electricity for heating and cooling. The following table shows heating and cooling degree days as a percent of normal for the six months ended June 30, 2024 and 2023.
Current wording
The operating results of our Electric segment are impacted by fluctuations in weather conditions and the resulting demand for electricity for heating and cooling. The following table shows heating and cooling degree days as a percent of normal for the nine months ended September 30, 2024 and 2023.
Previous wording
The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kwh sales under actual weather conditions and expected retail kwh sales under normal weather conditions for thesix months ended June 30, 2024 and 2023, and between those periods.
Current wording
The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kwh sales under actual weather conditions and expected retail kwh sales under normal weather conditions for the nine months ended September 30, 2024 and 2023, and between those periods.
Previous wording
Retail Revenues decreased $9.3 million primarily due to the following:
Current wording
Retail Revenues decreased $9.0 million primarily due to the following:
Previous wording
•A $9.7 million decrease due to the impact of unfavorable weather.
Current wording
•An $8.6 million decrease due to the impact of unfavorable weather.
Previous wording
•A $5.2 million increase in new retail revenues, net of an estimated refund, from an interim rate increase in North Dakota effective January 1, 2024 in connection with OTP's North Dakota rate case filed in November 2023.
Current wording
•An $8.2 million increase in retail revenues, net of an estimated refund, from an interim rate increase in North Dakota, effective January 1, 2024, in connection with our current rate case.
Previous wording
Transmission Services Revenues decreased $2.4 million as a result of certain project cost and operating and maintenance expense updates during the second quarter last year which resulted in additional nonrecurring revenues during the period.
Current wording
Transmission Services Revenues decreased $0.8 million primarily due to refunds paid to other transmission owners in the current period as well as certain project cost and operating and maintenance expense updates in the prior period which resulted in additional nonrecurring revenues during the period. The decreases were partially offset by a reduction in our estimated refund liability in connection with the resolution of a contested matter with FERC related to the allowed ROE during certain prior periods, which resulted in an additional nonrecurring revenue in the current period.
Previous wording
Production Fuel costs decreased $2.5 million due to a decrease in the generation from our coal-fired and natural gas facilities compared to the same period last year, primarily due to decreased demand resulting from unfavorable weather.
Current wording
Production Fuel costs decreased $0.9 million primarily due to a decrease in generation from our coal-fired and natural gas facilities compared to the same period last year, primarily due to a decrease in overall demand due to unfavorable weather.
Previous wording
Purchased Power costs to serve retail customers decreased $15.3 million due to a 23% decrease in the volume of purchased power due to decreased demand resulting from unfavorable weather, as well as a 12% decrease in the price of purchased power per kwh, primarily due to decreased market energy costs.
Current wording
Purchased Power costs to serve retail customers decreased $15.4 million due to a 17% decrease in the price of purchased power per kwh, primarily due to decreased market energy costs, as well as a 12% decrease in the volume of purchased power due to decreased demand resulting from unfavorable weather.
Previous wording
The following table summarizes Manufacturing segment operating results for the six months ended June 30, 2024 and 2023:
Current wording
The following table summarizes Manufacturing segment operating results for the nine months ended September 30, 2024 and 2023:
Previous wording
Nonelectric Selling, General, and Administrative Expenses decreased $0.7 million due to variable costs associated with decreased business activity and financial performance during the period.
Current wording
Selling, General, and Administrative Expenses decreased $4.1 million due to variable costs associated with decreased business activity and financial performance during the period.
Previous wording
Depreciation and Amortization increased $1.0 million due to an increase in our investment in manufacturing equipment and our facilities.
Current wording
Depreciation and Amortization increased $1.6 million due to an increase in our capital investment in manufacturing equipment and our facilities.
Previous wording
The following table summarizes Plastics segment operating results for the six months ended June 30, 2024 and 2023:
Current wording
The following table summarizes Plastics segment operating results for the nine months ended September 30, 2024 and 2023:
Previous wording
Operating Revenues increased $11.3 million primarily due to a 26% increase in sales volumes driven by customer sales volume growth and distributor and end market demand. Sales volumes in the second quarter of last year were negatively impacted by distributors’ inventory management strategies amid uncertain market conditions. Although demand has recovered from last year, sales prices have continued to decline. Sales prices decreased 13% compared to the same period last year, partially offsetting the impact of increased sales volumes.
Current wording
Operating Revenues increased $37.9 million primarily due to a 28% increase in sales volumes driven by continued customer sales volume growth and distributor and end market demand. Additionally, in the first nine months of 2023, distributors were closely managing their inventory levels and making strategic purchasing decisions amid the then uncertain market conditions which resulted in decreased sales volumes. Sales prices have steadily declined throughout the year and decreased 13% compared to the same period last year, partially offsetting the impact of increased sales volumes.
Previous wording
The following table summarizes Corporate operating results for the six months ended June 30, 2024 and 2023:
Current wording
The following table summarizes Corporate operating results for the nine months ended September 30, 2024 and 2023:
Previous wording
Other Operating Expenses increased $1.1 million primarily due to increased external service provider costs and increased employee benefit expenses, including increases in our employee health insurance claim costs.
Current wording
General, and Administrative Expenses increased $5.4 million primarily due to increased insurance and employee benefit expenses, including increases in our workers' compensation and employee health insurance claim costs, as well as increased share-based compensation expenses and external service provider costs.
Previous wording
The following provides a summary of rate rider filings and other regulatory filings that have or are expected to have a material impact on our operating results, financial position or cash flows.
Current wording
The following provides a summary of general rate, rate rider, and other regulatory filings that have or are expected to have a material impact on our operating results, financial position or cash flows.
Previous wording
On July 3, 2024, OTP filed an update to the original request increasing the amount of the net annual revenue increase from $17.4 million to $22.5 million to account for certain items identified throughout the regulatory process to date. An evidentiary hearing before the NDPSC had been scheduled for July 29, 2024, but due to the updated request, the evidentiary hearing is now expected to take place in fourth quarter of 2024, with a final decision anticipated by the end of the year.
Current wording
On July 3, 2024, OTP filed an update to the original request increasing the amount of the net annual revenue requirement increase from $17.4 million to $22.5 million, or a net increase of 10.9% in annual revenue, to account for certain items identified throughout the regulatory process to date. An evidentiary hearing before the NDPSC is scheduled to take place in December 2024, with a final decision anticipated in early 2025.
Previous wording
•Directed OTP to designate the Minnesota share of the jointly owned Coyote Station coal-fired plant as an Available Maximum Energy (AME) resource beginning in 2026 and ending no later than December 2031. If the designation as an AME resource is found to not be feasible, then Minnesota customers shall not continue to pay for or depend on capacity or energy from Coyote Station past 2028; and
Current wording
•Directed OTP to designate the Minnesota share of the jointly owned Coyote Station coal-fired plant as an Available Maximum Emergency (AME) resource beginning in 2026 and ending no later than December 2031. If the designation as an AME resource is found to not be feasible, then Minnesota customers shall not continue to pay for or depend on capacity or energy from Coyote Station past 2028; and
Previous wording
In February 2023, we filed a request for an Advanced Determination of Prudence (ADP) with the NDPSC for the on-site liquified natural gas storage at Astoria Station. Our latest supplemental IRP in North Dakota was filed in March 2023, which included the on-site storage request as well as other investments to meet our customers’ anticipated capacity and energy needs while maintaining system reliability and low electric service rates. At an informal hearing in July 2024, the NDPSC denied the on-site fuel storage ADP. It remains unclear what action the NDPSC will take on our IRP.
Current wording
In February 2023, we filed a request for an Advanced Determination of Prudence (ADP) with the NDPSC for the on-site liquified natural gas storage at Astoria Station. Our latest supplemental IRP in North Dakota, which was filed in March 2023, included the on- site storage request as well as other investments to meet our customers’ anticipated capacity and energy needs while maintaining system reliability and low electric service rates. At an informal hearing in July 2024, the NDPSC denied the on-site fuel storage ADP. It remains unclear what action the NDPSC will take on our IRP.
Previous wording
We continue to review and evaluate these final regulations, and their impact our operations, which could have a material impact on our operating results, financial condition and liquidity.
Current wording
We continue to review and evaluate these final regulations, and their impact on our operations, which could have a material impact on our operating results, financial condition and liquidity.
Previous wording
As of June 30, 2024, we had $318.1 million of available liquidity under our credit facilities and $230.7 million of available cash and cash equivalents, resulting in total available liquidity of $548.7 million, compared to total available liquidity of $430.8 million as of June 30, 2023.
Current wording
As of September 30, 2024, we had $263.8 million of available liquidity under our credit facilities and $280.0 million of available cash and cash equivalents, resulting in total available liquidity of $543.8 million, compared to total available liquidity of $468.1million as of September 30, 2023.
Previous wording
The following is a discussion of our cash flows for the six months ended June 30, 2024 and 2023:
Current wording
The following is a discussion of our cash flows for the nine months ended September 30, 2024 and 2023:
Previous wording
Net Cash Provided by Operating Activities increased $39.0 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023, primarily due to an increase in net income driven by increased earnings from our Plastics segment and a lower level of working capital compared to the previous year. Our working capital decrease was largely due to the timing and volume of resin and other input material purchases in our Plastics segment and capital expenditures in our Electric segment.
Current wording
Net Cash Provided by Operating Activities increased $4.3 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, primarily due to an increase in net income driven by increased earnings from our Plastics segment, partially offset by increased working capital at our Manufacturing segment.
Previous wording
Net Cash Used in Investing Activities increased $74.4 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase in cash used in investing activities was primarily due to a $50.1 million investment in U.S. treasuries made to secure a fixed rate of return until their maturity in September 2026, and a higher amount of Electric segment capital expenditures, including additional investments in our wind repowering and advanced meter infrastructure projects.
Current wording
Net Cash Used in Investing Activities increased $80.1 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The increase in cash used in investing activities was primarily due to a $50.1 million investment in U.S. treasuries made to secure a fixed rate of return until their maturity in September 2026, and an increase in capital expenditures in 2024. Capital expenditures during the nine months ended September 30, 2024 included additional investments in our wind repowering and advanced meter infrastructure projects, as well as continued investments in our manufacturing facility expansion projects in Arizona and Georgia.
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Production Fuel costs decreased $4.6 million primarily due to a decrease in generation from our coal-fired and natural gas facilities compared to the same period last year, as described above.
Current report — wording carried from elsewhere
Cost of Products Sold increased $16.2 million due to increased sales volumes, as described above, partially offset by a 16% decrease in the cost of PVC resin and other input materials.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
•A $1.3 million increase in retail revenues due to increased sales volumes from commercial and industrial customers.
Previous report — wording carried elsewhere
Cost of Products Sold increased $3.5 million primarily due to increased sales volumes, as described above. The impact of increased sales volumes was partially offset by decreased PVC resin costs. PVC resin and other input material costs decreased 14% compared to the same period in the previous year as the unique supply and demand conditions experienced in recent years, which caused significant volatility and increases in resin costs, have subsided and resin costs have remained stable during the first half of the year.
Previous report — wording carried elsewhere
Transmission Services Revenues decreased $2.3 million as a result of certain project cost and operating and maintenance expense updates during the second quarter last year which resulted in additional nonrecurring revenues during the period.