TOWN OF READING
MUNICIPAL LIGHT DEPARTMENT
BUSINESS-TYPE PROPRIETARY FUND
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2006
Cash Flows From Operating Activities:
	Receipts from customers and users				$	79,072,683
	Payments to vendors and employees					(64,089,617)
	Customer refund, purchase power, and fuel charge adjustments					(1,957,534)
Net Cash Provided By (Used For) Operating Activities						13,025,532
Cash Flows From Noncapital Financing Activities:
	Return on investment to Town of Reading					(1,946,870)
	MMWEC refund					661,311
	Other					281,915
Net Cash Provided By (Used For) Noncapital Financing Activities						(1,003,644)
Cash Flows From Capital and Related Financing Activities:
	Acquisition and construction of capital assets					(4,702,259)
	Principal payment on notes					(855,000)
	Interest expense					(146,214)
	Contributions in aid of construction					694,448
Net Cash Provided By (Used For) Capital and Related Financing Activities						(5,009,025)
Cash Flows From Investing Activities:
	Investment income					602,242
	(Increase) decrease in restricted cash and investments					(2,621,292)
Net Cash Provided By (Used For) Investing Activities						(2,019,050)
		Net Change in Cash and Short-Term Investments				4,993,813
Unrestricted Cash and Short Term Investments, Beginning of Year						10,677,046
Unrestricted Cash and Short Term Investments, End of Year					$	15,670,859
Reconciliation of Operating Income to Net Cash:
	Operating income				$	5,519,904
	Adjustments to reconcile operating income to net
	cash provided by (used for) operating activities:
		Depreciation expense				2,790,346
		Changes in assets and liabilities:
			Restricted cash - Calpine liability			(33,424,860)
			Accounts receivable			1,863,585
			Prepaid and other assets			453,772
			Inventory			(9,480)
			Accounts payable			2,570,371
			Accrued liabilities			(154,329)
			Calpine liability - energy contract buy-out			33,424,860
			Other liabilities			(8,637)
Net Cash Provided By (Used For) Operating Activities					$	13,025,532
See notes to financial statements.