MLGW Capital Spend I MLGW Cash I MLGW 2023 Year End I MLGW Budget I Ratios I Rates I MLGW Vegetation
MLGW NEW ENGINEERING OPERATIONS CENTER
The MLGW McGowen Administration conducted a preliminary FY25 budget presentation to the MLGW Board on 10/2/24. At -47.11 remaining in the presentation, MLGW CEO Doug McGowen begins the presentation of the Gas capx budget. McGowen introduces an addition to the MLGW Way Forward capital improvement plan, funded by the Gas division, in a new Engineering Operations facility to serve the community for the next 50 yrs. Based on an examination of budget documents, the FY2025 introduction of the Engineering Operations facility adds a net $65.2M to the MLGW Way Forward Capital Budget.
Going back to the 2020 beginning of the Way Forward plan, such a facility has never been included in the plan. In fact, such a facility was not included in the budget presentation last year. It has been known for some time that MLGW has massive amounts of excess cash on their Gas balance sheet. In fact, as of 6/30/24, MLGW had $180M in excess cash on their Gas balance sheet.
The below FY2024 budget presentation image was taken and adjusted from pdf page 30 of the 2024 MLGW presentation and the FY2025 images were taken from CFO Dana Jeanes budget presentation starting at -29:00 remaining in the FY2025 presentation. The adjusted red font row amounts are not included in the “Sub-total” or “Total Gas” row but are adjusted to compare to the FY2025 budget amounts for “General Plant” from FY2024. The FY2025 budget omits rows for allowances and adjustments.
In this way, ratepayers can see a jump in the FY25 budget from the FY24 Budget for “General Plant”. The jumps for “General Plant” consists of $11.6M to $31.8M in FY25 and $10M to $55M in FY26. The total jump for Gas funded “General Plant” is $65.2M and has never been included in the MLGW Way Forward plan until this FY25 Budget. The Way Forward plan was originally scheduled to run 2020 to 2025. Upon McGowen’s arrival the plan term changed from 2023 to 2028.
2024 MLGW Budget Presentation Gas Way Forward
2025 MLGW Budget Presentation Gas Way Forward
