City Water Light and Power’s electric division is in a deep financial hole… and the problem could easily get worse before it gets better.
Chief Engineer Eric Hobbie says the electric side is currently more than three-million-dollars in the red. Best practices call for the utility to have 60 days of working cash on hand, or around $33 million dollars. The huge gap puts the utility at risk of a credit downgrade.
Hobbie blames the shortfall on CWLP’s current borrowing costs, and low prices for power sold on the open market… as well as the cost of new federal regulations.
The good news, according to Hobbie, is that the water division is running in the black, and has a 90-day supply of working cash on hand.