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Hastings utilities report higher electric generation, rising water usage in FY25 update
Summary
Finance staff reported FY25 operating results through July: about 344,000 MWh generated year-to-date (up from ~256,000 MWh FY24), a 5% rise in gas usage, a nearly 9% rise in water usage, and timing shifts of solar reimbursements into FY26 that affect cash forecasts.
At the Nov. 13 Hastings Utility Board meeting, finance staff provided a fiscal-year-25 financial update through July and answered board questions on cash reserves and operating metrics.
"This total year to date generation was just about 344,000 megawatt hours for fiscal year 25," finance presenter JC said, comparing that with roughly 256,000 MWh in the same timeframe of FY24 — an increase of almost 100,000 MWh driven largely by SPP market sales and more generation from Units 4 and 5, Don Henry and WEC1.
JC said gas usage is up about 5% compared with FY24 and explained why operating expenses for gas were lower than budgeted: market gas prices were below budget and when gas-fired units generate electricity the gas cost is effectively credited to the electric department through SPP revenue. He said that dynamic contributed to an almost $2,000,000 decrease relative to budgeted gas expenses.
Water volumes, JC said, rose nearly 9% year over year through July, a change tied to unusually dry conditions in April and May that increased outdoor watering. JC flagged that higher water revenue does not necessarily raise operating expenses proportionately because water production costs differ from the electric department’s market-driven generation costs.
On cash, staff compared July cash balances to forecasted year-end expectations (based on March data) and said some solar farm reimbursements expected in FY25 will now occur in FY26, reducing anticipated FY25 cash. Staff also noted August cash-to-operating ratios circulated in packet (gas 135%, electric 21%, water 96%, sewer 28%).
Board members asked whether cash reserves were adequate; staff said gas shows a particularly strong reserve position and that electric and sewer are being managed to rebuild per the five-year budget plan. The board did not take formal budget actions at the meeting; staff recommended continuing monitoring and returning more detailed capital and year-end cash analysis after fiscal year close.
