What to Do with An Extra $1.8 Million?

What to do with almost $2 million was not decided at this week’s Laurens Commission of Public Works meeting. General Manager John Young advised the commissioners that the Piedmont Municipal Power Association (PMPA) board recently voted to return some additional revenue in their reserves to its ten member cities. Young said the amount in question amounts to about $50 million. That is to be divided among the ten PMPA cities, based on their size. John Young said the Laurens share of that is expected to amount to somewhere in the $1.8 to $1.9 million range.

John Young told Commissioners they have options of what to do with this credit, but a main idea that had been suggested by PMPA is to hold that money in the CPW’s Rate Stabilization Fund. Young said, “Many future changes in the structure of PMPA could necessitate us having a major rate increase in about 10 years. We were told that in 2029 two cities in PMPA, will be leaving their supplemental agreement with Santee Cooper which could cost us around $1 Million a year for about four years.” Young said the CPW now has $1.6 million in its Rate Stabilization Fund, which was initially set up to help level the costs to CPW customers should a large rate increase become necessary. He said adding this money coming from PMPA would provide enough to cover the cost to the CPW if this situation occurs in ten years.

Laurens and Clinton are among the ten Upstate cities who are member-owners of the PMPA, which owns a part of a Duke Energy nuclear power station that is the main source of electrical power for the cities.