West Kentucky Star spoke with Doug Handley, Paducah Power System's Director of Finance, Power Supply, and Rates, about the budget.
According to Handley, the ongoing pandemic has had an affect on the budget.
They said they have had lower energy sales over the last few months, and they're projecting that energy sales will continue to be lower than normal for a good portion of the upcoming fiscal year. They are also projecting an eventual recovery.
Handley says the biggest takeaway of the budget is that they're having to drain their cash reserves by $2 million. They are also cutting their capital expenditures by 24 percent. The measures they've taken has allowed them to avoid a rate increase for this upcoming fiscal year, however Handley believes they will most likely need a rate increase in the next fiscal year.
The pandemic also slowed down their LED street light conversion project. Initially they had planned on the project being completed during the current fiscal year, now Handley says the project will be completed in the upcoming fiscal year.
He said, "The LED light conversion project was slowed down as a result of the pandemic. We went to half staff with two teams rotating a week on and a week off, and so we weren't able to finish it in the fiscal year ending this June 30. We are about half way done and will finish it in the next fiscal year."
The budget was approved at their Monday meting, and will take effect beginning July 1.
You can learn more about Paducah Power System at the link below.
On the Net:
Paducah Power System Homepage
