PWC Approves FY2004 Budget
Rates to Remain Stable with No Increases

<< Return to previous page

May 14, 2003

The Public Works Commission approved a $203 million budget for fiscal year 2004 on Wednesday that included no utility rate increases.

Stable rates are a result of PWC's continued emphasis on efficient operations and a new power supply agreement.

"This is a fair, reasonable budget that allows us to continue providing reliable services to our customers and keep our rates stable," said Steve Blanchard, PWC CEO/General Manager who presented the budget to the PWC Board. "Our employees continue to successfully focus on service and controllable cost-reductions and this makes a positive impact in our annual budget."

A significant annual expense for the PWC budget is power supply. FY2004 marks the first year of PWC's new power supply contract with Progress Energy. PWC will budget $82 million for purchased power in FY2004. Without the new contract, PWC projects its costs would have reached $110 million. Overall, the electric fund budget is $148.3 million while the water fund budget is $54.9 million.

The budget includes capital improvements of over $22 million. Highlights of the capital projects include: Economic development related projects such as the Cedar Creek Industrial Park utility extensions and DTF/DAK/Wellman Utility extension project; Utility extension and relocation projects associated with the area's major road widening & improvements; $6.5 million budgeted for expansion of the Rockfish Creek Water Reclamation Facility; and over $12 million budgeted for cost associated with the City of Fayetteville's Phase IV-B annexation.

The PWC budget includes its transfer to the City of Fayetteville from its estimated electric revenues as well as additional street lighting, utility upgrades for downtown areas, costs associated with Phase IV-B annexation and contributions to Economic Development on the City's behalf.

The PWC budget will be forwarded to the Fayetteville City Council for adoption next month.

<< Return to previous page