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CUC report: $4 million in FY 14 losses
The Commonwealth Utilities Corp.’s losses for fiscal year 2014 are half what they were in 2013, but this is due to delaying maintenance expenses because of cash restraints, according to an annual financial report.
According to the report, CUC says total losses for FY 2014 were $4 million, which is less than FY 2013’s $8 million in losses.
Members of the Commonwealth Utilities Corp. board, led by board chair Adelina Robert, third from right, attend a Senate meeting on Monday to clarify concerns by the CUC. (Joel D. Pinaroc)
This decrease in losses is due primarily to the “deferral of necessary maintenance expenses due to cash flow restraints.”
Total operating expenses decreased approximately $4 million due to the deferral of necessary maintenance, CUC explains.
Total accounts receivable increased from $41.5 million to over $46, million, which is gross of the allowance for bad debts.
Bad debts increased from $30 million to over $37 million, the report says.
On their accomplishments, CUC said repairs were done on Power Plant 1 that included engine foundations and scheduled maintenance.
From 9 megawatts of energy in 2009, the power plant is now able to produce 62 megawatts of electricity as of September 2014, CUC said.
FY 2014 also saw continued use of $40.9 million in grant funding from the U.S, Environmental Protection Agency from FY 2011 to FY 2014.
CUC noted good progress in several waterline, fire hydrant, and valve replacement projects; an extensive sewer line replacement project; lift station rehabilitation; leak detection and repair; and an island-wide water meter replacement project.
