NPU budgets,

Norwich — The combined proposed 2017-18 expense budgets for the four Norwich Public Utilities divisions would total $94 million, a $1.3 million, or 1.4 percent, increase over this year’s total. But revenues also are expected to increase by a combined $1.2 million, NPU officials told the utilities commission Tuesday.

The commission heard presentations on electric, natural gas, water and sewer budgets, revenues, expenses and capital projects, but are not scheduled to vote on the proposed budgets until either the April or May meeting.

One major change outlined Tuesday is a shift in rate structure for all four utility divisions from the current municipal fiscal year to a calendar year. So any rate changes associated with the budgets presented Tuesday would not be proposed until late fall to take effect next January, Division Manager Steve Sinko said.

The budgets do contain proposals for small fee changes, which would take effect July 1, in the purchased gas adjustment for natural gas customers and purchased power adjustment for electric customers. The budget calls for an increase of 6 cents per 100 cubic feet of gas consumed “to recover forecasted wholesale gas costs,” the budget presentation stated. Sinko said natural gas customers have been receiving a credit of nearly 4 cents per cubic feet for the past 20 months, so the change would amount a nearly 10-cent change.

Sinko said NPU likely will use rate stabilization funds to cover the proposed electric purchased power adjustment of 0.5 cents in the budget.

The proposed electric division budget, by far the largest of the four, totals $58.28 million, an increase of $1.5 million. The natural gas division, which has been expanding rapidly over the past several years, would total $18.2 million, an increase of $733,245. The proposed water division budget would total $9.65 million, up by $697,704, and the sewer division budget would total $7.9 million, up by $29,379.

Revenues for all four divisions also are expected to increase in the coming year, with electric revenue up by a projected $87,226, natural gas by $793,508, water revenue by $101,240 and sewer revenues by $257,980.

The city charter calls for NPU to turn over 10 percent of gross revenues from the electric, water and natural gas divisions to the city each year. But while revenues show increases in the coming year, the total to be returned to the city is expected to drop from $8.67 million this year to $8.48 million next year. NPU officials said the revenue turned over to the city is calculated based on audited finances from the previous year, rather than projections for the coming year.

Still, the $8.4 million would amount to about 4.75 mills of tax revenue at current tax rates, NPU officials said.

Overall, staffing in the combined utility operations would drop by one full-time position due to a retirement, leaving the utility with 148.5 full-time equivalent positions.

Discussions pertaining to the water division in recent months have centered on the regional drought that left water levels in the city’s two reservoirs to just over 50 percent at their low point. NPU General Manager John Bilda said the winter rain and snow now have refilled both reservoirs to 100 percent capacity.

The drought did cut hydropower production at NPU’s Greeneville and Occum hydropower facilities by 60 percent last summer, officials said. The proposed budget includes estimated hydropower electric generation of 7,295 megawatts, saving city electric customers $681,000 in reduced need to purchase electricity.