Ken WebbCLEVELAND, Tenn. – Cooler temperatures and wetter weather have caused some expected income shortfalls in Cleveland Utilities’ electric and water divisions.
“The weather, and particularly the amount of rain we have experienced since the beginning of this calendar year, has taken its toll on the volumes in fiscal year 2013,” said Ken Webb, vice president of Cleveland Utilities’ financial division.
Compared to budgeted volumes, the electric division achieved 95.7 percent and the water division achieved 97.4 percent, Webb said. Wastewater volume came closest to its budget at 99.5 percent.
The net incomes for the electric and water divisions amounted to $1.1 million and $461,000, respectively, for 2012-13. The electric division fell short by $760,000, but the water division only missed its budgeted income by $24,000 due to unexpected expense reductions, Webb said.
The shortages were estimated during the preparation for the 2013-14 budget, so they are “disappointing but are not a surprise,” he said.