The Board of Public Utilities approved a reduced budget for 2020 on Wednesday night, Dec. 18.
The reduction from last year’s $381 million budget to the 2020 budget of $373 million, about $8 million less, will not have an effect on customers’ bills, according to a BPU spokesman.
The reduction is mostly the result of lower capital spending, David Mehlhaff, BPU spokesman, said.
Mehlhaff said the reduction in capital spending is mostly from closing down the Quindaro Power Plant, and there are no large new capital improvement projects this year. He added the BPU is continuing to address aging infrastructure and water improvements, and is continuing Rosedale project improvements.
BPU General Manager Bill Johnson has listed his priorities as customer service, operating efficiency and safe and reliable service, while reducing capital and operating costs, Mehlhaff said.
There is no electric rate increase planned in 2020 and the BPU is looking at not doing an electric increase in 2021, he said. It is too early to tell if a water rate increase will be proposed, he said. Electric service makes up about 85 percent of the BPU’s revenues, he added.
“We’re just trying to do more with less,” Mehlhaff said.
The BPU is not currently seeing any large expansion of the customer base in Kansas City, Kansas, he added.
“This budget will get the job done,” he said. “It’s slightly less than last year’s. I think the public will be pleased.”
Mehlhaff said he didn’t anticipate any job cuts or reductions in this budget.
He listed the BPU’s goals and priorities:
• Providing cost effective, safe and reliable utility services, including efficient operation of electric and water production facilities.
• Continue efforts to improve customer service. Update business practices and programs as needed to meet the requirements of our broad and diverse customer base.
• Ensure continued fiscal sustainability by effectively managing debt service coverage, cash-on-hand, and credit ratings through open and transparent fiscal and budget policies.
• Continue to evaluate various communication initiatives to make information and services readily accessible across multiple media platforms to engage the community and increase public awareness.
• Review strategic alliances and expansion opportunities that benefit the utility and the community. Supporting economic development and retention and growth in the service area with other community partners.
• Ensure that electric transmission and distribution systems continue to operate in a safe and reliable manner. Continue efforts to improve system reliability indices (SAIDI, SAIFI, CAIDI).
• Continue to focus on electric generation plant availability and ensure that reliability standards follow industry best practices as it relates to maintenance and operation.
• Continue to support and champion a diverse generation portfolio, while still evaluating future renewable energy opportunities to ensure a sustainable outlook for our community. This includes continuing to monitor, evaluate, and address changes in all environmental regulations.
• Continue to focus on our water main replacement program and maintaining adequate water storage capacity for community service.
• Evaluate ways to effectively promote energy and water efficiency programs and initiatives through customer education, community outreach services, and targeted programs.
• Continue to evaluate ways to cost effectively improve employee usage of information technology systems as a way of improving operational efficiencies and reducing costs.
He stated that BPU will continue efforts to improve efficiencies and reduce costs; assist and support community partners and meet and prepare for future customer growth while maintaining world-class customer service.