Anderson And Miller
Re-Elected To Posts
BY SARAH GREGORY
The Greeneville Light & Power System Board of Directors unanimously approved the operating forecast for the utility's upcoming fiscal year during the board's regular monthly meeting on Monday morning.
The operating forecast serves as a type of budget; however, budgets for utility systems differ from other departments.
The forecast is projected based on "historical trends," Controller Paige Mengel told the board.
"I tried to be kind of conservative, because you never know what the weather is going to do. We never know exactly what TVA [Tennessee Valley Authority] is going to do with their fuel cost adjustors," she said.
The forecast projects total sales of $106 million for fiscal year 2013-2014.
Total operating revenue after the cost of power, which is purchased from the Tennessee Valley Authority for distribution to GL&PS customers, is expected to total $20.5 million, before expenses.
After operating and maintenance expenses, and other deductions, such as depreciation and taxes, the not-for-profit public power utility is projecting a net margin of just over $2 million.
"It is an educated guess. The trends are what tracks it," GL&PS General Manager Bill Carroll said.
"In my mind, it would be almost impossible to budget this business, because we don't know how many people are going to come in here and want service. We don't know how many poles we're going to have to buy, how many transformers we'll have to buy," Carroll said.
The forecasts, Carroll said, have served the utility well, financially. "We've been pretty close to those numbers" in previous years, he added.
The board voted unanimously to approve the forecast as presented.
BOARD OFFICERS RE-ELECTED
Directors also voted on officers for the coming year. The group voted unanimously to retain the same chairman, Willie Anderson, and secretary, Sam Miller.
Board members also heard regular reports on operations and engineering and the previous month's financial statement.
U.S. NITROGEN FACILITIES
Superintendent of Engineering and Operations Chuck Bowlin updated the board on the status of the Seven Springs Substation, which will serve US Nitrogen. That company is expected to begin operations in 2014.
Bowlin said that the transformer has been placed on the substation's pad, and a contractor expects to "wrap up" the control house this week.
Crews will also likely begin setting poles later this week, Bowlin added, telling the board that "everything is progressing well."
JUNE FINANCES REVIEWED
Board members heard a brief review of the June financial statement from Mengel.
For the month, operating revenue was reported as $8,722,572. Power purchased from the Tennessee Valley Authority -- which provides the electric power that GL&PS distributes to its customers -- totaled $6,799,301, leaving a gross margin of $1,923,271.
In addition to the operating forecast and regular reports, Board members heard a brief report from Carroll concerning policy manual updates, which have been underway for a number of months.
Carroll said the manual is nearly complete and will be up for review by the board at a future meeting.
At the present time, Carroll said, Attorney Ron Woods is preparing what is called a document retention policy to be included in the manual.
That policy would create specific standards that outline how documents and files, such as e-mails, are retained, primarily for legal purposes.
Carroll also announced to the board the upcoming retirement of Director of Engineering Alan Tweed.
Tweed's retirement from the system after 32 years of service will be effective at the end of this week.
"We'll miss him, no question about it," Carroll said of Tweed, commending his work.
Tweed was not present at the meeting; however, a retirement lunch will be held for him later this week.