Loss of Rubbermaid hurting GEUS budget

Sep 13 - McClatchy-Tribune Regional News - Brad Kellar The Herald Banner, Greenville, Texas

The upcoming budget for GEUS is expected to continue to reflect the loss of one of the local electric utility's biggest customers.

But GEUS General Manager David McCalla said a decrease in revenue will be offset by an anticipated drop in the costs the utility pays for the fuel it uses to produce electricity.

A public hearing concerning the fiscal year 2012/2013 GEUS budget is scheduled for 6 p.m. tonight in the board room of the GEUS Operations Center, 6000 Joe Ramsey Boulevard.

McCalla explained the utility's total operating revenue is expected to decline by 23 percent in the coming year to $53.67 million, primarily due to the reduced billing of fuel costs.

"Electric sales are expected to decrease from 2012, primarily due to the loss of one large customer," McCalla said in a memo to the board, in reference to Newell-Rubbermaid, which shut its doors in the spring.

On the other hand, GEUS's total operating expense is expected to decrease by 21 percent, to $48 million, in the coming year.

"Almost $13 million of the decrease in operating expenses can be attributed to the decreased cost of fuel and purchased power due the low price of natural gas with an offsetting decrease in power sales of almost $13 million," McCalla said.

The utility is expected to note an increase in departmental expenses, McCalla said, attributable to planned turbine/generator overhaul projects at the steam plant, as well as increased cable television programming costs.