Previous Story
CUC sees $33M shortfall
|
Posted on Feb 21 2006
The Commonwealth Utilities Corp. is seeing a deficit of $32.88 million by the end of fiscal year 2006.
A summary of CUC’s revenues and expenses shows that the utility is expecting to collect a total of $83.4 million in operating revenues between October 2005 and September 2006.
However, the purchase of power generation fuel alone is expected to eat up almost 90 percent of the utility’s projected revenues.
CUC is projecting fuel costs to reach $74.4 million in FY 2006. This represents a 26-percent increase compared with the $58.89 million that CUC paid for fuel in FY 2005.
In addition to fuel expenses, CUC operating expenses are expected to cost $41.88 million. This includes general and personnel costs, depreciation and amortization, maintenance and other production costs, and supplies.
In summary, utility revenues are seen to remain at about the same level—from $82.2 million last fiscal year to $83.4 million this fiscal year. Meanwhile, CUC’s operating expenses are projected to increase from $91.53 million in FY2005 to $116.28 million in FY2006.
Operating expenses exclude miscellaneous expenses, the public auditor’s fee, and interest payments. These non-operating costs reached almost $12 million in FY 2005 and brought CUC’s overall loss to $18.87 million.
According to CUC’s unaudited financial statement for FY 2005, the utility earned total revenues amounting to $84.47 million. However, CUC’s expenses totaled $103.33 million between October 2004 and September 2005.
