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April 28, 2000
PUC netincome higherthan budgetedin 1999By KREMENA TODOROVA Journal Staff Writer NEW ULM - The New Ulm Public Utilities Commission posted higher-than-expected income in 1999, but its gas and water divisions lost money, Public Utilities Director Bob Stevenson said this week. Net income in 1999 hit $1.08 million, compared to a budgeted $545,000. The electric division, which is PUC's largest, took in $1.2 million, which compares to a budgeted $326,000. According to PUC officials, the electric division's results are due to an increase in sales, and increased efficiencies in the power plant. Wholesale sales (which include sales to outside utilities) were up $886,000 from the projected, and retail sales (or sales to local retail customers) were up $13,000 from the budget, with industrial customers accounting for the bulk of the increase. In addition, the PUC bought more power than expected, and generated less. This helped save money because outside generation prices can be seasonally lower than the cost of local generation. Net income for the wastewater treatment division was $64,000, which compares to a budget net loss of $81,000. "This can be attributed simply to control of expenses," Stevenson said. But PUC's gas and water divisions lost money in 1999. The gas division lost $142,000, compared to a budgeted income of $58,000. Sales, especially to residential customers, were down approximately 12 percent from the budget, which officials said was due to a warm winter. Also, distribution expenses exceeded budget targets by 10 percent, mostly thanks to a jump in maintenance spending. The water division ended 1999 with a net loss of $68,000, compared to a projected $58,000 in the black. This was due to some $168,000 over budget paid on refunding 1992 water bonds, and higher than expected consulting fees.
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