FINANCIAL RESULTS
Table 2: Historical Time-of-Use Electricity Rates
| Effective date | Off-peak price | Mid-peak price | On-peak price | Average |
|---|---|---|---|---|
| (¢ per kWh) | (¢ per kWh) | (¢ per kWh) | (¢ per kWh) | |
| 1-Nov-19 | 10.1 | 14.1 | 20.8 | 15.10 |
| 1-May-19 | 6.5 | 9.4 | 13.4 | 9.77 |
| 1-May-18 | 6.5 | 9.4 | 13.2 | 9.70 |
| 1-Jul-17 | 6.5 | 9.5 | 13.2 | 9.73 |
| 1-May-17 | 7.7 | 11.3 | 15.7 | 11.57 |
| 1-Nov-16 | 8.7 | 13.2 | 18.0 | 13.30 |
| 1-May-16 | 8.7 | 13.2 | 18.0 | 13.30 |
| 1-Nov-15 | 8.3 | 12.8 | 17.5 | 12.87 |
| 1-May-15 | 8.0 | 12.2 | 16.1 | 12.10 |
For rate setting purposes, the sale and cost of electricity is a flow-through item for which, over the long term, any net revenue or expenses resulting from the sale and cost of power are ultimately returned, or charged to EWU's customers as mandated by the OEB. Accordingly, the operating results of EWU are typically viewed in absence of these amounts by the regulator and the company.
net income
Net income in 2019 was $12.2 million compared to $8.5 million in 2018. Despite the potential for timing differences related to the cost of power, net income was very comparable to the prior year and provides for a 3.68% return on equity.
SaleS and coStS of electricity
In 2019, revenue from the sale of electricity was $254.9 million or $5.4 million more than in 2018. At the same time the cost of electricity paid by EWU increased by $2.7 million. The combined difference in these changes had the effect of positively impacting earnings in 2019 compared to 2018 in the amount of $2.7 million.
The summary of historic time-of-use rates presented in Table 2 illustrates the change of the average time-of-use rate from a low of 9.70 cents per KWh in 2018 to the current high of 15.10 cents per KWh which went into effect November 1, 2019.
diStriBution revenue
While the sale of electricity is a flow through cost for EWU, distribution charges on EWU customer bills become revenue for the Company to cover its operating and capital costs.
The rates used to establish distribution charges to EWU customers are set by the OEB. In 2019, distribution revenue of $51.4 million was $2.7 million, or 1.1% higher than in 2018.
In 2019, as in recent years, EWU's rate applications to the OEB have provided for below inflation rate increases. Accordingly, including the impact of flow-through items, the distribution portion of our customers' bills has decreased effective May 1, 2019 compared to the previous year.
other revenue
Other revenue for WCU includes amounts charged to WUC by EWU under the Water Services Operating Agreement, together with charges to the City of Windsor for streetlight
