CU requests additional budget money

The utility presented a budget supplement to Springfield City Council at last night’s council meeting that would bring CU’s 2005-2006 fiscal year budget to $455.2 million.

Jim Shuler, CU associate general manager and chief financial officer, said the majority of that increase – $50.3 million – is due to higher than anticipated natural gas costs. The budget was created in May 2005.

Shuler added that customers already have paid for that increase through increased fuel prices over the winter. CU is only able to spend what is initially budgeted unless council approves additional spending.

The remaining money that CU is requesting is split among several items:

• $2 million is needed to begin construction on the second plant at Southwest Power Station; initial construction must begin before Dec. 15 in order to preserve the facility’s valid air permit.

• $850,000 is slated for repairs from the tornadoes that hit the area in March; repairs are needed on the James River cooling tower, as well as on the electric transmission systems.

• $2.1 million would pay for unexpected costs for pump repairs and rental at Stockton Lake after the pumps there failed earlier this year.

• The utility wants $200,000 to begin implementation of its energy conservation plan; a rate increase to take effect in October will provide an additional $1 million for conservation programs, but CU wants to start those programs before October.

• CU also wants $10 million for a fuel contingency fund, in case fuel costs are higher than expected for the last few months of the fiscal year.

Public hearing was continued to council’s June 26 meeting, at which time council is expected to vote.

See SBJ’s June 19 issue for more from City Council’s June 12 meeting.