West Memphis Utility reports mixed 2025 financials; grant reimbursements and Google account may mask results

Commissioners reviewed the utility’s December financial report, which showed roughly $36.02 million in total revenue, about $9.1 million in other income and $43.6 million in expenses for the year, leaving approximately $1.5 million in net profit. A staff presenter said some of the 'other income' was a one-time grant reimbursement tied to the utility’s AMI project and wastewater reimbursements, which improved the annual picture.

“We would have posted a loss last year” without the reimbursements, the presenter said, arguing reimbursements and a change in the financial reporting system (Tyler) affected comparability and year-end adjustments.

Staff also briefed commissioners that the utility has issued three bonds recently to finance capital projects, which has increased long-term debt and is expected to put near-term pressure on fixed-charge coverage and debt-service coverage ratios. The presenter said those coverage ratios are declining but remain within target ranges and that the timing of large projects—wastewater plant expansion and power-plant construction—explains much of the change.

Commissioners were told of a new water-cooling arrangement tied to a Google project and an associated 20 MW load increase; staff said reaching the full 20 MW would represent roughly 20% of the utility’s overall load and materially improve revenues. Staff cautioned that final revenue benefits are contingent on the project reaching full load and on other year-end accounting adjustments.

No formal rate action was taken; staff said a cost-of-service study is underway and that the commission may need to discuss rate changes once the study is complete.