Residential Customers Get Price Break in Budget Proposal
GRU will present proposal to city commission on July 20
July 9, 2009
Most Gainesville Regional Utilities residential customers will be getting a break on their bills come October based on the utility’s fiscal year 2010 budget proposal. Residential customers who purchase the most common mix of services – electricity, water and wastewater – will see their average bill go down by $0.52. Those who also have natural gas will see a total bill savings of $1.77.
"We understand and empathize with our customers who are facing financial pressures and increased costs in many areas in their lives," GRU General Manager Bob Hunzinger said. "As we began the budget process, we were determined to do whatever we could to help ease that burden, and we are happy to have accomplished our goal."
| Average Usage | Current Average Residential Bill | Projected Average Residential Bill | Price Difference | |
|---|---|---|---|---|
| Electric | 1,000 kWh | $132.60 | $130.45 | $(2.15) |
| Gas | 25 therms | $37.02 | $35.77 | $(1.25) |
| Water | 7,000 gallons | $18.13 | $18.85 | $0.72 |
| Wastewater | 7,000 gallons | $40.58 | $41.49 | $0.91 |
| Total | $228.33 | $226.56 | $(1.77) |
The price estimates are based on average customer usage for each of the four services. The estimates reflect small increases in the base rates that are offset in total by reductions in the fuel adjustments for gas and electricity.
GRU has experienced sharp declines in electric and water sales this year due to economic factors such as higher vacancy rates in apartments, commercial buildings and homes and slower-than-anticipated growth in new construction. The utility was able to keep those declines from driving up prices by targeting a 10 percent budget cut across all departments.
Initial cost-cutting efforts included placing a freeze on hiring, restricting out-of-state travel and cutting mileage reimbursement for business use of personal vehicles. GRU achieved further savings by finding efficiencies and identifying investments that could be postponed without affecting quality and reliability. This line-by-line budget review resulted in $31.7 million in savings for fiscal years 2009 and 2010 combined.
"We do not expect the economy to turn around dramatically in the near term, so we will remain vigilant in monitoring expenses and efficiency within the utility to help our customers cope with current economic conditions," Hunzinger said.
GRU will present the fiscal year 2010 budget proposal to the Gainesville City Commission on July 20.
View GRU Proposed Budget for Fiscal Year 2010
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