The objectives of this study were: 1) To determine whether the operating costs affect the earnings of PT PLN (Persero) Territory of Papua; 2) To determine whether the costs of shrinkage (losses) affect the earnings of PT PLN (Persero) Territory of Papua; 3) To determine whether the operating costs and losses affect the income of PT PLN (Persero) Papua region.
In research on the impact of operating expenses to revenues, the author uses simple regression. Simple regression is an analysis tool that is used to determine the influence of the independent variable (X) on the dependent variable (Y). The author uses simple linear regression method to determine the effect of operating expenses to revenues.
Results of research conducted to prove that there is a positive and significant effect of operating expenses to revenues. It can be seen from the ttabel> thitung (3.018> 2.015) with a significantly by 0048 <0.05. The results of this study showed a significant relationship between operating expenses to revenues. This means that the higher the operational costs incurred by PT. PLN Persero Papua region will increase revenue, conversely the lower the operational costs incurred will reduce the income at PT. PLN Persero Jayapyra Branch. Losses between positive and significant effect on revenue shrinkage. It can be seen from the ttabel> thitung (4.807> 2.015) with a significantly by 0.041 <0.05. The results of this study showed a significant relationship between the shrinkage on income. This means that the higher the losses felt by PT. PLN Persero Papua region would reduce the income, the lower the shrinkage otherwise owned by PT. PLN Persero Papua region will increase revenue.

Keywords: Operating Costs, Losses, Income