The sale of electricity by the Jamestown Board of Public Utilities has decreased again through the first six months of 2010, according to figures discussed during Tuesday's BPU board meeting.
Current figures from the BPU's electric division point to a further reduction in revenue from industrial customers as well as off-system sales of electricity, according to the company's six-month summary. But while operating expenses remained well under budget, administration costs did exceed budgeted figures.
Dave Leathers, BPU general manager, said the recession was felt locally during most of 2009, but Jamestown appeared to turn a corner after March. The situation has improved in the last three months and some increased demand is starting to be felt, he said.
Beginning in September, the electric division will also be assessing a separate rate increase, which for the average residential BPU customer will be an additional $1.48 a month. Looking ahead, Leathers said the need to undertake the upcoming rate increase was based on previous data submitted to state Public Service Commission for recommendation.
He said the 2.33 percent hike handed down by the commission was built around the end of the year statement from 2008.
"We did provide to the PSC some of the more recent consumption reduction," Leathers said, "but that wasn't really incorporated into the rate that was approved. We will continue to look at where we're at from the financial results and determine if we need to do anything differently."
Data contained in the semi-annual report for all five BPU divisions was relayed by Mike Anderson, BPU business manager.
"The budget process was very difficult last fall," said Leathers. "We made the conscious decision to recommend only solid waste as one out of our five divisions to have a small rate increase. We've had four of five divisions during the first six months of the year without a rate increase. I think we've come out where we expected to, which is in pretty good shape," he added
Figures from the first half of the year for solid waste have shown a positive turnaround. The division reported more cash on hand than budgeted. In July net income stands at $117,000, which is slightly less than the first six months last year, but more than double what was budgeted for the present term.
