Summer heats up utility's bottom line

Oct 19 - McClatchy-Tribune Regional News - John Chambliss The Ledger, Lakeland, Fla.

Extreme weather this year provided a hefty profit for Lakeland Electric.

The utility in its year-end fiscal report Monday brought in $19.5 million through the fiscal year that ended Sept. 30.

That's compared to $18.8 million the company brought in 2009.

"Weather has been the driver (of the profit)," said Don Eckert, an assistant finance director for the city. "Five of 12 months we've set weather records."

The utility received an upgrade from Fitch's, a financial rating agency, from a rating of A+ to AA-.

That means that the utility could save $500,000 to $1 million in interest expenses, Eckert said.

Eckert said the strong economic showing puts Lakeland Electric in its best financial liquidity position since before the money-losing contract to sell electricity to the Florida Municipal Power Association.

That deal cost the utility $90 million over seven years.

Lakeland Electric Committee member George Lindsey said the utility has come a long way since its tough times.

"It's remarkable to go from where we were to where we are now," Lindsey said.

From July through September, the utility made $6.8 million in profit, Eckert said.

The overall profit was made after the utility paid a $25.2 million dividend to the city.