On 2025-12-08 the BLW Board in Marietta heard December financial results showing lower water demand, tighter operating margins and a corrected reserves figure, staff said.

Unidentified Speaker 4, a staff member presenting the monthly and supplemental financials, said supplementals were under budget by $400,000 for the month and that year-to-date offsetting revenue was down by $2,000,000. "I will be reviewing the December financials as well as the supplementals for this month," Unidentified Speaker 4 said as she walked through the packet.

The presenter told the board that, compared with MEAG projections, the utility's total year-to-date power costs were under by $1,240,000 while total bulk resources were up $2,370,000. She reported volatility in natural gas prices, noting November actuals exceeded budget ($3.84 vs. $3.50 per MMBtu) and December saw intraday spikes (a reported high near $5.50 and an average spot price discussed around $3.50 per MMBtu).

Unidentified Speaker 4 said plant operations shifted in December when the Shearer plant ran and Wansley Unit 9 experienced an outage, requiring Shearer to meet commitments and to support additional off-system sales. She reported that off-system sales were up about $180,000 year-to-date and that December produced an "all time low for water for the month," which is reducing revenue.

The presentation included operating-margin and reserve details: operating margins tightened from 42% to 40% for the month, year-to-date operating income was about $4,000,000 less than the prior year, and $4,000,000 in reserves remain available. The presenter said the meeting packet contained an error and that "the handout is the corrected version of the reserves," adding the handout should reflect $30,000,000.

Board members asked whether the margin compression would continue. Unidentified Speaker 5 asked what was contributing to the decline; Unidentified Speaker 4 cited lower water demand, higher wholesale electric costs and a planned capital ramp-up, and said year-end settlements should improve margins later in the fiscal year.

MEAG refund noted but amount uncertain

Unidentified Speaker 1 read an email the board received from "Jim Fuller, the CEO," telling members it included a U.S. Treasury payment linked to a MEAG Power 2024 tax filing. As read aloud the email referenced a figure transcribed as "84909005¢." Later in the meeting one speaker referenced an amount of "$84,000,000" while discussing the refund broadly. The board did not resolve the discrepancy during the session; Speaker 1 described the matter as complex and said members would "see what happens" and that staff would keep the board posted.

Why it matters

The packet shows the utility is coping with a combination of lower water volumes and higher wholesale power costs that have tightened margins despite retail rate increases. Reserves and year-end settlements were identified as buffers, but board members pressed staff for continued monitoring.

What comes next

Management asked board members to review policies and the strategic plan in the meeting book for adoption at the next meeting. The presenter said staff will continue to track energy markets, water demand and the MEAG refund and report back when numbers are verified.

Sources: Meeting presentation and board discussion (financial presentation by Unidentified Speaker 4; MEAG email read by Unidentified Speaker 1).