CU board hears financial update

By LARRY C. BOWERS
Posted 6/29/20

Cleveland Board of Public Utilities members received a report from Finance Division Vice President Marshall Stinnett during a recent virtual June meeting, which anticipates a slight increase in …

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CU board hears financial update

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Cleveland Board of Public Utilities members received a report from Finance Division Vice President Marshall Stinnett during a recent virtual June meeting, which anticipates a slight increase in electric rates for July.

The report also shows the changes in retail electric rates for the months of July from 2016 through this year.

The July 2020 increase will be 0.76% over the month of June. This will bring the cost for electric customers to 9.734 per kilowatt hour. For the month of June, the rate was 9.661 per kWh.

The monthly fluctuation is driven by the Tennessee Valley Authority's Fuel Cost Adjustment, with the increase (or decrease) passed along to Cleveland Utilities customers.

The report from Stinnett, and his staff, also showed financial percentages for the month of May for the Electric, Water and Wastewater divisions.

For the Electric Division, the cost of purchased power as a percentage of retail sales was 71.9%, which can be compared to the utility's budgeted percentage of 77.5% for Fiscal Year 2020.

The Electric Division results for May are electric sales revenue of $6,961,208, which was offset by purchased power of $5,000,352. This resulted in an operating margin of $1,960,856. This can be compared to the budgeted margin of $1,688,134 for the month.

Operating expenses for May were $2,084,672, which can be compared to budgeted expenses of $1,856,246.

The Electric Division serviced 32,037 customers during the month, and recorded a net income of $42,180. This can be favorably compared to a budgeted net loss of $27,537.

In the Water Division, for the month of May, sales revenue was $1,221,413. This is compared to the budgeted amount of $1,290,504.

Other revenue added an additional $167.633 for the month. The division serviced 32,568 customers with water.

Operating expenses for May were $1,313,982, which can be compared to a budgeted amount of $1,304,513.

The Water Division recorded an operating income of $75,064, which is compared to the budgeted operating income of $116,334.

In the Wastewater Division, for the month of May, wastewater treatment revenue was $1,002,811. This is compared to the budgeted amount of $1,072,346.

Other revenue sources added an additional $75,792 for the month, and the division serviced 19,504 customers.

Operating expenses in wastewater treatment for the month was $1,009,201. This can be compared to the budgeted amount of $1,051,821.

The Wastewater Division recorded an operating income of $69,402, which is compared to a budgeted income of $103,897 for the month of May.

 

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