|May 17, 2012 -
The KUB Board of Commissioners today approved a budget of $841 million for fiscal year 2013. The budget, which reflects a full year of accelerated infrastructure investment for KUB's Century II electric and water programs, represents an increase of 1.6 percent or $13.2 million over current fiscal year expenditures.
The approved budget provides $481 million for wholesale energy purchases from TVA and natural gas suppliers to meet the demands of KUB's electric and natural gas customers, $158 million for capital improvements, $117 million for the operation and maintenance of KUB's four utility systems, $59 million for debt-service payments, and $26 million for taxes and tax equivalent payments.
The $158 million capital budget includes $44 million for capital improvements required under the federal Consent Decree for the wastewater system, $11 million for electric substation improvements, $8 million for the replacement of 2,600 poles for the electric system, $7 million for the replacement of aging water pipe, $6 million for replacement of gas pipe, and $5 million for the design and initial construction of a new low service pump station for the water treatment plant.
The Board also approved several funding recommendations related to the budget, including $120 million in bonds to fund capital improvements for the electric, gas, and wastewater systems, and, on first reading, a previously scheduled wastewater rate increase. The proposed wastewater rate increase, if approved on second reading by the Board at its June meeting, will raise the average residential wastewater customer's monthly bill $5.20. The proposed rate increase is part of KUB's long-term plan to fund $650 million in capital improvements for the wastewater system required under the Consent Decree.
KUB is a municipal utility serving Knox and parts of seven adjacent counties and provides electric, gas, water, and wastewater services to more than 439,000 customers.