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The Pulaski Electric System Board of Directors reviewed information pertaining to future fiber expansion at its Sept. 28 regularly scheduled meeting.

The Power Board first reviewed and approved fiber builds that will take place in the Wal-Mart and Flat Rock areas. The estimated project cost will be $627,425 with 221 potential customers. Assuming a 50 percent take rate, the project payback will be 11.8 years with further positive news that no incremental staff or equipment is projected for the build.

A total of $440,000 in funding for the project will come from the recent reduction in the required pension plan contribution after the board had been alerted the PES pension plan is in an especially strong position. An additional $89,000 will come from gain on the sale of one bucket truck, while the final projected $98,425 is set to come from cash reserves.

In addition, the board also heard a high level overview of broadband’s long-term financials and potential future fiber expansion. The results once again suggested that large scale fiber expansion depends on grant money and would not be financially feasible without such grant funding.

Financial Reports

In the electric division, PES reported results favorable to the budget in five of eight categories for the month of August. Revenue was $89,475 favorable, while margin was favorable by $36,384.

The most notable unfavorable category came in the capital expenditures, which was $263,321 unfavorable to budget. This was due to the payment for a new bucket truck PES received, which had been previously budgeted for a different month, but was included in the annual budget.

In the broadband division, all seven categories were favorable to budget, including revenue with a $17,724 favorable mark, margin which was $21,459 favorable, as well as cash flow surplus, which was $50,368 favorable.

In other business, PES CEO Scott Newton officially resigned from his position as a Power Board member, which he had taken a leave of absence from in order to take the interim and now full-time CEO position. A replacement on the board for Newton will be selected in the coming months.

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