Cleveland Utilities Vice President and CFO Marshall Stinnett reported to the Cleveland Board of Public Utilities on Thursday that customers will see a small cost decrease for power in January, but it …
Cleveland Utilities Vice President and CFO Marshall Stinnett reported to the Cleveland Board of Public Utilities on Thursday that customers will see a small cost decrease for power in January, but it probably won't offset the impact of the extreme cold lingering in the region.
Stinnett said electric customers will see a rate decrease of .58 percent over the month of December, which will bring the utility's rate to 9.310 per kilowatt hour.
For the month of December, customers paid a rate of 9.364 per kilowatt hour.
Stinnett emphasized that the rate change is driven by fuel cost adjustments by the Tennessee Valley Authority, which is passed through to local customers.
During Stinnett's report on power rates, there were some questions and inquiries concerning this cold period consumers are experiencing.
Responding to an inquiry by board member Chari Buckner, Electric Division Vice President Bart Borden said the local utility has hit a peak demand, but it was not quite as great as was anticipated.
Borden and Stinnett said the utility's new call center has been swamped with weather-related complaints and inquiries, including a massive amount of after-hours calls. Still, utility crews were able to address the situations of service interruptions and broken pipes and lines.
Cleveland Utilities continues to be under an emergency-response power demand request from TVA, which was received by the utility earlier in the week.
TVA is urging CU customers to lower their thermostats by one to three degrees, and to be conservative with routines tasks around the home to conserve power.
Through the partnership between the local and federal power distributors, energy-curtailment measures are in place, at least for the duration of this cold spell.
TVA's emergency program is an appeal to all CU customers to reduce non-essential electricity use as much as possible. Customers are being asked to reduce their use of hot water for baths, washing clothes, and dishes. They are also being asked to not use non-essential lights and appliances.
The remainder of Stinnett's financial report Thursday was pretty routine.
In the Water Division, during the month of November, the cost of purchased power as a percentage of retail sales was 77.5 percent, which can be compared to the utility's budgeted percentage of 80.9 percent.
November's electric sales revenue for the month was $7,293,790, which was offset by purchased power of $5,561,131. This resulted in an operating margin of $1,642,659. The budgeted margin for the month was $1,139,561.
Operating expenses for the month were $1,519,375. This can be compared to the budgeted operating expense of $1,560,827.
The Electric Division serviced 31,465 customers during the month.
The net income for the month in the Water Division was $276,528, which can be compared to a budgeted net loss of $39,481.
In the Water Division, water sales revenue for November was $1,174,970. The budgeted amount was $1,159,612. Other revenue sources added an additional $98,175 for the month, and the utility serviced 31,653 customers.
Operating expenses in the Water Division were $1,230,616, which can be compared to the budgeted amount of $1,226,078.
The division recorded an operating income of $42,529, which is very close to the budgeted amount of $42,937.
Wastewater treatment revenue for November was $1,021,494. This is compared to the budgeted amount of $933,304, Other revenue sources added $65,411, and there were 18,905 customers with service.
Operating expenses in Wastewater was $924,948, compared to a budgeted amount of $938,500.
The division recorded an operating income of $161,957, which can be compared to a budgeted operating income of $126,212 for November.
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