WPPI Energy cuts budget to hold down costs

From a news release issued by WPPI Energy:

WPPI Energy has reduced its 2009 budgets and instituted a number of measures to control costs. The modifications are projected to reduce the total 2009 revenue requirement to be collected from WPPI Energy member utilities by about $25 million.

“We recognize that people are facing difficult challenges because of the current recession, and we all must do what we can to mitigate the effects of the economic downturn,” said WPPI Energy President and CEO Roy Thilly. “It is important to note, however,” Thilly stated, “that the budget reductions WPPI Energy is making will help keep power costs reasonable, but these changes may be offset or more than offset by a variety of other factors.”

The WPPI Energy executive committee recently approved an 8.5 percent reduction to the Sun Prairie based municipal power supplier’s combined administrative and general and operation and maintenance budgets. WPPI Energy also estimates that it will see a 6.7 percent reduction in the cost of purchased power and fuel, primarily driven by lower than anticipated loads due to the economic downturn.

WPPI Energy member utility and retail customer actual power costs will depend on weather, changes in fuel and market energy prices, and difference in actual load experienced. These factors may drive up the cost of energy despite budget cuts.

As a public power, nonprofit power provider, WPPI Energy’s rates are based on actual costs incurred and do not include a return on equity.