KUA Board Adopts $158.6 Million Budget

KISSIMMEE, Fla., June 27, 7:00 pm — At tonight’s meeting of the Kissimmee Utility Authority (KUA) Board of Directors, the Board adopted a $158.6 million budget for Fiscal Year 2002. The 4-0 vote came after a public hearing on the budget.

Highlights of the new budget include capital expenditures of $13.5 million and the rollover of a $14 million fund from the current budget to cover the planning and construction of infrastructure to support the planned World Expo Center. The majority of the capital budget is attributable to planned outage costs for Cane Island Units 2 & 3 and improvements to KUA’s transmission and distribution system.

Customer growth in FY 2002 is expected to rise 2.8% while energy sales are forecasted to increase by 4.5%. The utility is anticipating a new summer system peak of 280.1 megawatts (MW). The current system peak is 251 MW, set back on the 15th of this month.

The budget is a 19% decrease from FY 2001 and includes an increase of 4 new positions (including 2 part-time) and a market level adjustment of 3% for all employees. The decrease is the result of the completion of a third generating unit at KUA’s Cane Island Power Park and a new electric substation near Buenaventura Lakes. Under the new budget, KUA’s total employee base will increase to 281.5 (277.5 in FY 2001) with an annual payroll of $16 million.

The budget also reflects the third and final year of a series of levelized rate changes that are being phased in to meet projected revenue requirements. A rate increase of 1.65% is scheduled to take effect on October 1, 2001.

Contact: Chris Gent, Manager of Communications
(407) 933-7777 ext. 1116
cgent@kua.com