A report by Ken Webb, manager of the Accounting Division, reveals the public utility almost pulled it off but fell short in the Water Division; at least, in total revenue. In sales volume, the utility dropped in all three divisions as compared to July 2010.
Webb’s numbers were presented in a recent meeting of the Cleveland Board of Public Utilities.
In the Electric Division for July, CU reported sales volume of 103,741,782 kilowatt-hours, representing a 2.3 percent drop compared to a year ago. In July, CU reported 29,284 electric customers — a .23 percent increase — who paid 9.31 cents per kilowatt-hour.
In revenue, the Electric Division reported $9,763,229, compared to $8,559,344 that was budgeted. This represented actual earnings of $271,724. In expenses for the month, CU reported $9,491,504 and $8,430,656 was budgeted.
In the Water Division, CU reported sales volume of 277,945,500 for a 3.7 percent drop compared to July 2010. During the month, the Water Division recorded 29,618 customers who paid an average of $4.02 per 1,000 gallons.
In revenue, the Water Division reported $1,220,515, an amount that fell short of the budgeted expectation of $1,239,291. Expenses for the month totaled $1,004,369, but $1,090,950 was budgeted. The revenue and expenses ledger netted actual earnings for the month of $216,146, compared to budgeted earnings of $148,341.
In the Wastewater Division (sewer), the public utility reported total sales volume for July of 169,050,750 which was a 1 percent drop over last year. For the month, the Wastewater Division recorded 17,461 customers who paid $4.93 per 1,000 gallons.
In revenue, the Wastewater Division reported $914,033 compared to the budget forecast of $870,587. Expenses for the month totaled $778,109 which were slightly less than the budgeted forecast of $779,665. Net earnings were $135,924 compared to $90,922 that was budgeted.
CU’s fiscal year for 2011 ended June 30 and showed the utility’s sales to be up in all three divisions — Electric, Water and Wastewater.
Of the fiscal year 2011 increases in the Electric Division, Webb stressed, “It is important this number remain positive in order to fund capital projects and service debt.”
The public utility’s viability is especially significant in that CU is currently involved in several capital improvement projects such as providing infrastructure to new industrial developments and others.
Webb said the Water Division’s strong performance for fiscal year 2011 also was significant for the utility’s future operation.
“This is a very positive step forward from fiscal year 2010 when the result was a $608,656 loss,” he explained of the Water Division total. “A loss of this size would have been a significant issue if it had continued to occur as the division’s ability to fund needed capital projects and fund debt service would have been impaired.”
The same was true in CU’s Wastewater Division for 2011 whose numbers ended in the positive.