Public Utilities finish strong

By RON LARSEN

Journal Staff Writer

NEW ULM -- Despite a steady increase in natural gas prices in late 2003, New Ulm Public Utilities finished strong, posting a net margin for the year of $843,833, according to preliminary figures presented to the Public Utilities Commission at its March meeting.

This was nearly five times the budgeted net margin of $170,277.

With the audit fieldwork about 90 percent complete, "the majority of the year-end adjustments have been processed. This report will give an approximate estimation of year-end results," Director Gary Gleisner told commissioners.

The Electric Division led the way, garnering a preliminary net margin of $749,802. The Water Division came in with a preliminary net margin of $111,001, more than double its budgeted net margin of $47,544, due to an increase in water sales. District Energy Division (steam heat) followed with a preliminary net margin of $130,351, double the budgeted net margin of $65,031.

Although the Natural Gas Division wound up in the red by $44,954, it overcame a decrease in sales amounting to 15,250 MCF with total sales being over budget because of the increased cost of wholesale natural gas. Even the Wastewater Division contributed in a negative sort of way. While the division's actual net loss totaled $153,429, that was about $128,000 less than the budgeted net loss of $281,190.

A strong showing in February helped the New Ulm Public Utilities overcome a loss generated in January. A net margin of $680,054 which was over $200,000 ahead of budget in February brought the year-to-date net margin to $259,583, compared with a budgeted margin of $604,190.

The Natural Gas Division was the big gainer in February, posting a $391,516 net margin which brought the division's year-to-date net margin to $88,439.

The second largest net margin was $182,687 posted by the Electric Division. All five divisions posted net margins for the month.