Bath mulls $9M bond for electricity upgrade
By ROB PRICE THE COURIER-ADVOCATE

BATH - Bath village officials are considering issuing $9 million in bonds to finance upgrading the electric services of Bath Electric Gas & Water Systems.

Matthew Benesh, director of utilities for BEGWS, estimated earlier this year the upgrade would cost $5 million; however, the cost of electricity transformers - a major feature of the project - has tripled since the initial estimates were made, Benesh last week told The Courier.

BEGWS plans to purchase 2,000 transformers as part of the project, he noted.

User revenues from BEGWS's 4,500 electric customers will pay for the upgrade, and Benesh said the municipally owned utility already has applied to the New York Public Service Commission to permission to raise user rates.

Benesh, who was out of town, could not specify the extent to which electric rates would rise; however, he said utility and village officials have been reviewing a bond issue with a 30- year term, which would

Require $700,000 in annual principal and interest payments.

Divided among 4,500 customers, $700,000 equals $155 in annual payments or about $13 in monthly payments.

Benesh said the electric infrastructure upgrade is necessary because of rising electricity consumption among BEGWS customers. "We're fast approaching our capacity during peak periods," he said.

Electricity use increases during winter months, he noted; in addition village residents are using more electricity-powered devices in their homes, such as computers and, during the summer, air conditioners.

The general plan for upgrading the electric infrastructure involves replacing BEGWS's five electric substations with single, more efficient substation located where the current Fairview Drive substation is located.

That substation was installed in the 1970s; an even older substation was installed in the 1950s.

"Our infrastructure is aging," Benesh said.