Rates over the years have fluctuated from a low of 6.775 in October of 2006 to a high of 9.493 in October of 2008. The fuel cost adjustment was quarterly from 2006 to 2009, but was changed to monthly in November of 2009.
Financial Vice President Ken Webb provided the board of directors a detailed report for all divisions of Cleveland Utilities through March, the end of three quarters of the fiscal year. “So far, these three division are all in positive territory,” Webb said. “Electric and water continue to exceed expectations and sewer is very close to expectations.”
Webb then discussed numbers in each division through the first nine months of the year.
Electric Division
Through nine months, the Electric Division sold 799,508,297 kilowatt hours of electricity at an average retail price of 8.88 cents per killowatt hour.
Revenue from these killowatt hours was $70,856,470 and the offsetting charge for wholesale power purchased from TVA was $58,750,131. This leaves a margin of $12,106,339.
The actual margin is greater that budget projections, but less than the margin recorded through March of 2011. Whole power costs are running at 82.9 percent of sales, which is more favorable than the projected 84.9 percent. A percentage of 83.5 was used in preparation of the 2013 budget.
Other revenue contributed was $1,122,981, making the margin, plus other revenue, $13,229,320. It is from this amount that all operating expenses and depreciation is subtracted to arrive at the change in net assets for the period.
Expenses, including depreciation, was $11,159,387. This leaves a positive net change in assets of $2,069,933. From this amount debt service is paid and funds are used to purchase new plant and capital items for the utility system.
At the end of the nine-month period, the electric system was providing service to 29,682 customers, up 8 percent from the same time a year earlier.
Water Division
Webb said the first nine months for the Water Division has been favorable.
A total of 2,109,328,500 gallon of water was sold at an average retail price of $4.22 per 1,000 gallons. The revenue from the sale of water was $8,897,924 and exceeds the budgeted amount by 1 percent. Total revenue is $9,678,076.
Access fees continued to show steady progress during the year with a total amount of $156,227. This exceeds both the projected amount and the amount at this time a year earlier.
Webb issued a word of caution in saying it appears the April report could see a less-than-good month in this area as April requests for new service have declined.
Expenses for the Water Division through nine months totaled $9,219,871, leaving a positive change in net assets of $458,205. Webb said he is encouraged by these good results as the water system continued to see a need for additional investments in plant and facilities to meet the demand for water.
The water system’s customer list, in March, was only four away from 30,000 customers.
Wastewater Division
The sewer operation has recorded steady results through these first nine months, but the results are not as good as projected. The system has billed customers for treating 1,347,836,259 gallons of wastewater at an average price of $5.23 per 1,000 gallons.
Total division revenue for the three quarters was $7,659,408 and expenses totaled $7,248,289, for a positive change in net assets of $411,119. Access fees in sewer have been steady at $153,468, but Webb said there could be a bump in the road with April’s number.
Cleveland Utilities’ sewer Division provided service to 17,766 customers in March. This reflects a 1.4 increase over March of 2011.
