The LCRA Board of Directors has approved a fiscal year (FY) 2010 business plan that focuses on meeting growing needs for energy, water, and community services, which help improve the quality of life for rural and suburban residents in LCRA's service area. Most of this service area is in the Central Texas region.
The LCRA Board at its June 3 meeting approved the business plan for the fiscal year that begins July 1, 2009. The approved plan includes a budget of $1.2 billion to meet forecasted requirements for operating expenses, debt service, capital, and reserves. That amount will be down from the $1.3 billion in revenues LCRA expects to collect for the 2009 fiscal year ending this June 30. The decrease in the FY 2010 budget is due primarily to the decrease in the cost of fuel and purchased power.
The LCRA Transmission Services Corporation (TSC) Board separately approved a budget that includes $237.1 million in projected revenues. This amount is included in the LCRA total budget.
"The people of Texas expect LCRA to be an organization that delivers reliable and efficient services, operates in a cost-conscious manner, and demonstrates prudent and responsible leadership in all of its operations,” said LCRA Board Chair Rebecca A. Klein. “I am confident this business plan will enable LCRA to meet those expectations.”
Roughly 43 percent of the operating budget, about $510.9 million, will pay for coal, natural gas, renewable energy and purchased power to provide electricity for LCRA's 43 wholesale electric customers. The rest will fund LCRA's power plant, transmission, and dam operations, river and water-supply management, water and wastewater utilities, economic and community development services, and parks.
The LCRA Board also approved a $518.4 million capital budget, nearly half of which will fund transmission projects to improve reliability and capacity of the electric grid serving most of Texas. Those projects are included in the $256.8 million capital budget approved separately by the LCRA TSC Board. The LCRA capital budget also includes water and wastewater expansion and upgrade projects; power plant improvements and repairs; projects related to river management, irrigation, and hydroelectric generation, and continuing investment in LCRA parks and river access facilities.
"The business plan enables LCRA to continue a nearly 75-year tradition of public service," said Thomas G. Mason, general manager of LCRA. “That tradition includes the creation of the Highland Lakes and dams and a public-power system that has greatly enriched the quality of life of residents in the lower Colorado River basin and Central Texas. Our challenges are no less critical as we go forward to ensure that this region continues to receive essential energy, water, and community services.”
LCRA has posted copies of the business plans for LCRA and LCRA TSC on its Web site.
LCRA is a conservation and reclamation district that funds its operations with revenues from the sales of energy and water services. LCRA does not collect taxes or receive state appropriations.
