Owensboro Municipal Utilities officials said the company’s upcoming budget looks positive overall. While there are no additional proposed rate increases in the budget, OMU customers will see water and electric rates increase as a result of previously approved plans.
The approved budget shows that OMU no longer has decommissioning expenses and no large capital projects, and that the utility will see revenue increases in the 2024-25 fiscal year. According to Laura Chapman, OMU’s planning director, the new budget is aligned with projected long-term financing.
The consolidated electric system’s budget accounts for $31 million in net operating revenue. The utility is expecting to allocate $18.6 million toward electric debt service. They expect $6.8 million in net operating revenue for the water system and service their water debt by $4.6 million.
Chapman said the utility is budgeting a city transfer of $11.3 million — with an $8.3 million cash dividend.
No additional rates were included in the new budget, but a .9% increase in electric rates was approved in 2023 and a 9% water system rate was approved in February.
Chapman and Communications and Public Relations Manager Sonya Dixon said even with the increases, the rates remain lower than those in surrounding areas.
