Council approves CU 2001 budget

City Council Sept. 18 approved the $353 million 2001 City Utilities operating budget, which was approved by the Board of Public Utilities in its Aug. 31 meeting. CU's budget for the 2000 fiscal year was $281.4 million.

There are no base price increases in electric, natural gas or water in the 2001 budget, but CU representatives advise customers of a $40-per-month increase per household in natural gas prices this winter.

According to the budget, volatility in the natural gas market has driven the total expected constant use bill to 18 percent higher than the average bill in 1983. The sudden increase is purely commodity-based, and should the natural gas market return to historical levels, utility bills will reflect actual prices.

The budget also refers to a 77 percent inflation rate since 1983. Electricity and water utility prices have remained constant since 1991 and 1992, respectively.

The budget states the projected 2001 average annual residential bill still equates to real savings more than $750 annually when compared to the inflation rate.

The utility's major capital projects for 2001 include the McCartney Generating Station, the trunked radio system, a new customer information system and development of the Partnership Industrial Center West.

The new customer information system will replace the utility's current 20-year-old system and allow CU to work with customers on their billing dates and methods of payment.

With the new system, customers can have their charges automatically billed to their credit cards, and customers will be able to choose if they want to have their bills sent on the same day of each month. Customer service representatives will also be able to pull up previous bills on the computer screen when assisting customers via the new system.

PIC West will consist of approximately 300 acres. Its site plan will be in place by early October, according to Karl Plumpe, senior manager of economic development for CU, and the first building will break ground in the spring of 2001.

Lenexa, Kan.-based George Butler Associates has been retained as the engineering firm for PIC West, Plumpe said.

The largest 2001 CU capital project is the McCartney station. To meet the growing demand on CU's electric system, the utility will install two 47-megawatt simple- cycle combustion turbines on the recommendation of the Future Power Supply Study performed by Burns & McDonnell.

The turbines will be located at a green site in the northeastern portion of CU's territory and are planned to be operational by 2002.

The total projected cost for the two turbines is $53 million, which will be financed. CU projects two additional turbines will be needed by 2006.

An 800-megahertz trunked radio system to connect the city of Springfield, Greene County and CU employees will be tested in May 2001.

The radio system will be owned and operated by CU and will be provided by Motorola. Motorola's bid for the $26.5 million contract was approved by the three entities in the spring.