PREMA Board Approves 2023 Budget
The PREMA Board of Directors, at its November 22 meeting, approved a 2023 Budget which included estimated total revenue of $15,600,000, net margins of just over $1,600,000 and a capital credit payment of $548,000 (3.5% of revenue) to the membership. Any margins at the end of the year will be allocated to the membership.
The Budget reflects purchased power costs from
Tri-State at over $8,100,000, 61 percent of PREMA’s total operating costs.
General inflation and the desire to decrease borrowing in the future prompted the Board to implement the rate
increase of five percent for 2023. This increase will be
reflected in the retail rates in accordance with a recent Cost of Service Study. Certain components of the rates may get a slightly higher or slightly lower increase based on the Study.
Included in this Budget is $93,000 for replacement of equipment including one new pickup truck. It also includes continued funding of preventative maintenance program such as pole testing, tree trimming and substation testing.
Each year, certain financial ratios must be maintained to follow PREMA’s mortgage agreements with lenders. The Budget produced ratios that comply with these agreements.
PREMA continues to invest in new plant (such as poles, wires and transformers). These investments make PREMA’s electric system more reliable especially during severe
PREMA employees are dedicated to the mission of providing high quality electric service at a reasonable rate. We at PREMA look forward to serving your electrical needs in the New Year. If you have any questions, please contact our office at 308-762-1311.