September CU electric rate shows 3% drop

By LARRY C. BOWERS Staff Writer
Posted 9/25/17

Cleveland Utilities’ Vice President and Chief Financial Officer Marshall Stinnett provided the public utility’s board some welcomed news at a recent gathering. This month’s numbers were for …

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September CU electric rate shows 3% drop

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Cleveland Utilities’ Vice President and Chief Financial Officer Marshall Stinnett provided the public utility’s board some welcomed news at a recent gathering. This month’s numbers were for June and July, and Stinnett and his staff were rounding out financials for the fiscal year.

Stinnett said the utility will see a rate decrease of 3 percent in September, over August’s numbers.

The decrease, generated by a fuel cost adjustment from the utility’s federal distributor — TVA — will bring CU’s rate to 9.563 per kilowatt hour. The August rate was 9.859 per kWh.

Stinnett emphasized the utility continues to pass along TVA rate adjustments to CU consumers.

The utility’s financial manager then gave board members complete up-to-date numbers for the Electric, Water and Wastewater divisions.

During the month of June, the cost of purchased power as a percentage of retail sales in Electric was 78.4 percent compared to 80.7 percent for the month of May. For the year, this percentage is 80.3 percent. This can be compared to the budgeted percentage of 80.9 percent for fiscal year 2017.

The results for June in Electric sales revenue is $9,021,548, which was offset by purchased power of $7,069,557. This resulted in an operating margin of $1,951,991. Other revenue sources contributed $144,865, and all of the numbers were driven by a customer base of 31,507.

The fiscal year results in Electric sales revenue is $99,657,929, which was offset by purchased power of $80,105,707. This resulted in an operating margin of $19,552,222, compared to the budgeted margin of $17,754,626.

Net income for the month was $975,914, after an adjustment for the utility’s new accounting treatment for the OPEB Trust. This brings the division to a combined net income of $3,934,532 for the year. This can be favorably compared to a net income of $2,495,544 for the previous year.

During July, the cost of purchased power as a percentage of retail sales was 77.7 percent, compared to the budgeted percentage of 80.9 for the fiscal year.

July’s electric sales revenue was $10,343,417, which was offset by purchased power of $8,040,783. This resulted in an operating margin of $2,302,634, compared to a budgeted margin of $1,798,401 for the month.

Operating expenses for July were $1,426,160, compared to the budgeted operating expense of $1,541,473. The division serviced 231,509 customers for the final month of the fiscal year.

Net income for july was $1,017,591, compared to the budgeted income of $399,758.

Numbers were just as impressive in the Water Division. Water Sales revenue for June was $1,184,418, with a budgeted amount of $1,288,557.

Other revenue sources added an additional $148,418, and the division serviced 31,586 customers during the 11th month of the year.

Operating expenses for June were $972,556, with a budgeted amount of $1,241,746.

The division recorded an operating income of $360,280, which was compared to budgeted operating income of $169,785.

The results of fiscal year 2017 for water sales revenue is $14,468,150, compared to a budgeted amount of $14,271,014. The resulting operating income for the year was $1,633,232, compared to a budgeted income of $1,109,968.

For the month of July, water sales revenue was $1.237,051, which can be compared to budget numbers of $1,416.,461. Other revenue sources added $107,063 for the month, and the division serviced 31,663 consumers.

Operating expenses for July were $1,178,332, and the budgeted amount was $1,285,711.

The Water Division recorded an operating income of $165,782, which is compared to budgeted operating income of $261,942.

Finally, the Wastewater Division was also in the positive, despite a lesser number of customers. Only 18,832 received service.

June’s wastewater treatment revenue was $1,056,110 compared to a budget of $1,000,069.

Operating expense for June was,$813,235, compared to a budgeted amount of $923,853..

The division recorded an operating income of $372,520, compared to the budgeted amount of $161,891.

The result for fiscal year 2017 in wastewater revenue is $12,297,226, compared to an anticipated budget of $11,886,579. Other revenue contributed $897,030.

Operating expenses for the year were $10,838,192, very close to the budgeted amount of $10,822,280. The resulting operating income was $2,356,064, which can be compared to budgeted operating income of $2,082,597.

July’s numbers for the Wastewater Division include treatment revenue of $1,032,433. This is compared to a budgeted amount of $1,042,207. Other revenue sources added $69,630 for the month, and the division provided service to 18,899 consumers.

Operating expense for July was $889,730, compared to the budgeted amount of $932,907.

The division recorded an operating income of $212,333, which can be compared to budgeted operating income of $184,224.

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