WM Utility has strong year in 2017
WM Utility has strong year in 2017
Officials focus on keeping up with service, maintenance while keeping rates low for customers
news@theeveningtimes.com
Under the leadership of rookie General Manager Todd Pedersen, the West Memphis Utilities had a big year in 2017 by reducing operating costs and tackling long awaited maintenance projects.
The city utilities company reigned in energy costs and reduced bad debt writeoffs. A new lower-cost four year power supply contract began. Mayor Bill Johnson touted the savings at the time the contract was announced.
“The last one was 5.5 cents for what we bought outside,” said Johnson.
“This one is for 4.6 cents.”
What does that mean for West Memphis utility customers? The bottom line is that there should be no rate increase during the new four-year agreement with NRG Energy Inc.
“We shouldn’t have to raise rates for four more years,” said Johnson.
Procedure changes aimed at reducing abandoned bills saved the utilities money and made it easier for customers to reconnect. As a result, bad debt write-offs were cut in half from $810,00 just two years ago to $374,000 last year according to business office manager Rob Hollon.
“In 2016 we starting looking at our collection of final bill abandonment, and then those coming in again seeking new service,” said Hollon. “No one owes us $500 anymore; they owe us $200.”
The utility to-do list tack- led some long awaited projects last year. City hall said good-bye to a massive 1970’s telephone in the mayor’s conference room and came into the 21st century as the utilities coordinated the installation of a new phone and fiber optic system networking all the city buildings together.
Maintenance projects moved on.
Contractors trimmed 30 miles of power lines in alley ways in the southeastern part of the city. This will improve reliability of electrical service during storms. When an outage does occur, visibility to find the problem spot and access to the area was improved as a result.
The first major rehab work since 1992 on the Mid-America Industrial Park water tank was ordered.
Nearly $500,000 was spent cleaning up the inner workings for health regulations and painting the outside.
Pump Station No. 8 at 7th Street and Jefferson got an overhaul inside and out.
Temporary pumps had been brought in early last year to assist with the load. The pump works were replaced and an new support beam installed to assist with heavy lift maintenance or future replacement work.
The whole thing was capped off with a new roof and paint. The work was a key project as a heavy percentage of city sewage ran through the station.
By John Rech
