Concerns were raised about the accuracy of revenue numbers and the budget forecasting model. The board engaged in a discussion about the declining cash reserves, noting that the Bulk Power Cost Adjustment (BCPA) account, which should be maintained at around $3 million, had fluctuated and might necessitate borrowing from other funds. Members underscored the importance of having a stable cash reserve of $10 to $15 million to cover contingencies.

Amidst these fiscal concerns, the potential for an increase in utility rates emerged as a pressing topic. The board considered various changes to the rates, including increasing base rates, altering the solar credit, and introducing a demand residential rate structure. The necessity of a rate increase was debated, with views differing on the likely effects on consumption and revenue. Some members highlighted the need to balance the rate adjustments with the community’s ability to shoulder the increases, especially in light of inflation. A tentative timeline for the approval and implementation of a possible rate increase was mentioned, although no definitive decisions were made.

The impact of The Villages, a large-scale development, was another point of discussion. An investment from The Villages, nearing a billion dollars, exceeded initial projections and expectations for further growth. The board deliberated over how this development would affect the electric and general fund, with varying perspectives on the duration of its influence.

Additionally, the board tackled the topic of the utility’s operating budget, sales projections, and the need for system improvements. The debate revolved around the necessity of additional capital spending versus evaluating current system improvements. The recommendation to lower the electric transfer from 6% to 3% was brought up, highlighting the need to tighten up on numbers and align operations with those of investor-owned utilities.

The fluctuating power costs were addressed, noting that the power cost adjustment fee had been adjusted multiple times. The board projected power costs for the upcoming fiscal year and emphasized historical sales trends, including a 2.1% growth in sales, and the impact of weather on these figures. The changing dynamics of the electric industry and the drive toward energy efficiency were recognized as factors influencing electricity consumption.

Lastly, the board briefly updated on a waiver for teachers that was approved by the commission, though this item was not a focal point of the meeting.