content_image/149996.jpg
After the adjustment for dividends on the Class B Preference Shares of the Company, earnings on Class A Ordinary Shares for Fiscal 2011 were $19.5 million, or $0.68 per Class A Ordinary Share, a $0.6 million increase when compared to $18.9 million, or $0.67 per Class A Ordinary Share, for Fiscal 2010. 

## Sales 

Kilowatt-hour sales for Fiscal 2011 were 554.0 million, comparable to 553.8 million for Fiscal 2010. The average temperature for 2011 was 82.3 degrees Fahrenheit (“°F”) compared to 81.9 °F for 2010. 

Total customers as at December 31, 2011 were 26,636, an increase of 2% compared to 26,151 customers as at December 31, 2010. An average of 40 customers were connected per month for Fiscal 2011 as compared to an average of 58 customers per month for Fiscal 2010. The Company continues to see an increase in customer numbers but also continues to see a decline in the average customer kWh consumption. 

According to Government reports, the number of work permit holders on the Island has declined significantly since 2009 (see “The Economy” section for further details). This has caused some rental properties to remain vacant with an active electricity account. Vacant residences with active electricity accounts are included within customer numbers, however, these accounts result in lower average electricity sales. 

## Operating Revenues 

Operating revenues increased 21%, or $38.0 million, to $218.1 million for Fiscal 2011 from $180.1 million for Fiscal 2010. Operating revenues are higher due to higher fuel factor revenues in 2011 driven by higher fuel costs. 

Electricity sales revenue increased by $0.1 million to $69.6 million in Fiscal 2011 from $69.5 million for Fiscal 2010. Electricity sales revenues are higher mainly due to an increase in kWh sales in the Commercial category. 

Fuel factor revenues for Fiscal 2011 totalled $148.5 million, a 34% increase from the $110.6 million in fuel factor revenues for Fiscal 2010. Fuel factor revenues increased due to an increase in the cost of fuel (see the “Power Generation”  section for further details). The average Fuel Cost Charge rate per kWh charged to consumers for the twelve months ended December 31, 2011 was $0.27, a 35% increase from $0.20 per kWh for the twelve months ended December 31, 2010. CUC passes through 100% of fuel costs to consumers on a two- month lag basis without mark-up. 

## Sales and Customer Highlights 

<img src='content_image/149996.jpg'>

## Operating Expenses 

Total operating expenses for Fiscal 2011 increased 25% to $193.1 million from $154.2 million for Fiscal 2010. The major contributing factor to the increase in operating expenses is higher power generation expenses which are comprised predominantly of fuel costs. 

## Power Generation 

Power generation costs for Fiscal 2011 increased $38.5 million, or 34%, to $151.7 million when compared to $113.2 million for Fiscal 2010. The increase is mainly due to higher fuel costs. 

The Company’s average price per imperial gallon (“IG”) of fuel for Fiscal 2011 increased to $4.63 from $3.45 for Fiscal 2010. The Company’s average price per IG of lubricating 

