CWLP deficit may ruin city’s budget plan

City Water, Light and Power’s wholesale electric revenue could be several million dollars short of budget estimates, possibly blowing a new hole in the city budget, Springfield aldermen were told Tuesday.In case the trend continues, CWLP general manager Todd Renfrow said, he is working on a plan to minimize the impact of the shortfall on the city’s coffers. He didn’t provide any specifics.

The city’s current budget, which had a $12 million deficit when budget talks began last year, was largely balanced by relying on profits from selling surplus power.“Everything went wrong,” Renfrow said after Tuesday’s committee meeting. “When we made our projections was really last October. November is when everything went in the tank, so to speak.”Renfrow blamed a warm winter, a very cool summer and the overall economy. He also said the utility was paid not to produce energy because there was so much on the grid.

“We know it will come back,” Renfrow said of the industry. “It’s just a matter of how soon.”

Aldermen have been asking for weeks for updates on CWLP’s financial status. Some have continued to express concern about the utility’s financial state, especially given the city’s reliance on profits from Dallman 4 to balance its own budget.

The plant, which will cost $542 million, was expected to rake in millions of dollars annually from selling surplus power. Last year, Mayor Tim Davlin’s blue-ribbon committee on city finances recommended the city take advantage of the profit and increase the utility’s contribution to the city in lieu of taxes.

Aldermen agreed to increase payments to the city from 3.5 percent of gross revenue on electric sales made outside of the city to 30 percent of net income, generating an estimated $9 million a year.

Renfrow said it may be two months before a proposal is brought back to the mayor to minimize a shortfall and avoid another round of talks about police and firefighter layoffs.

“We’re all one community, and I’m trying to do what I can help,” Renfrow said after the meeting. It may not be possible. I may come back and say there’s just nothing more that we can do.’

By DEANA POOLE
THE STATE JOURNAL-REGISTER