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Higher purchase-power costs cut Bedford electric reserves by about $2 million
Summary
Staff told the council the electric fund’s cash fell from roughly $8.5 million to $6.9 million year‑over‑year and purchase power costs rose from about $12 million to nearly $15 million as of the third quarter.
Officials warned the electric enterprise fund is under strain after higher purchase power costs. Staff reported that electric cash reserves decreased from approximately $8.5 million to $6.9 million year-over-year and that purchase power expense rose from roughly $12 million to nearly $15 million as of the third quarter.
The presenter said the October rate change reclassified some revenue lines so sale-of-electricity decreased while the power cost adjustment (PCA) increased; staff described the PCA as intended to pass through purchase power costs. Councilors asked whether the town will seek a PCA adjustment; staff said they would raise that as a revision on the agenda later the same night and return with detailed options during the budget cycle.
