Ken Webb, CU senior vice president and CFO, delivered the brief report during a recent formal gathering of the Cleveland Board of Public Utilities. The board will meet again Thursday for final updates which are expected to give the total picture for the now completed fiscal year.
Under revenue, Webb reported the Electric Division finished the fiscal year with $94,924,234.06 in sales, but the original budget projection had forecast sales of $100,425,898. On a more positive note, however, the year’s kilowatt-hours sales exceeded the year before which were recorded at 93,359,857.
“We did fall short of what we had projected sales to be ... but they did exceed last year’s,” Webb cited.
In spite of a rocky start, budget projections fared better for CU in purchased power from TVA. The original budget forecast projected CU would pay $83,804,216 for TVA electric power; however, the tab as of June 30 was only $79,304,188.57.
“That’s a number we were somewhat concerned about early in the year,” Webb said of the amount of money CU was spending on TVA power. “... But as the year progressed, it came back to what we were expecting.”
The Electric Division’s total operating margin landed at $15,620,045, compared to budget projections of $16,621,682, Webb said.
On a related note in Webb’s report, the CFO pointed out TVA’s kilowatt-hour price effective with the coming Aug. 13 billing cycle will be 8.823 cents, which is a drop from the 8.841 cents on the July 13 billing cycle.
“... That’s still down about three-fourths of 1 percent from last August,” Webb said, and added, “That’s good news for our customers.”
Asked if the kWh price drop is a result of the summer’s heavier rainfall, the CFO confirmed it is.
“TVA has generated more [electricity] through dams ... which is a low-cost way to generate power,” Webb said, referring to hydroelectric production.
Water Division revenue for the fiscal year came in at $11,745,810.37. Budgeted projections called for revenue of $12,205,137.
Webb reported the Wastewater Division was the only one of three to exceed the budget. Revenue from sewer services brought in $9,536,794.34, compared to the budgeted forecast of $9,460,024.
Webb’s fiscal year report also looked at sales volume in which all three divisions fell under budget projections.
In the Electric Division, just under 1.073 billion kilowatt-hours were sold. The budgeted forecast was for 1.102 billion. Webb described this as a 97.4 percent attainment of budget.
In the Water Division, sales totaled 2.734 billion gallons. This compares to the budget projection of 2.858 billion gallons, or a 95.7 percent attainment.
In the Wastewater Division, sales totaled almost 1.8 billion gallons, compared to the budget projections of 1.808 billion. This represented a 99.5 percent attainment.