BEGWS to proceed with upgrade project
By ROB PRICE THE COURIER-ADVOCATE

BATH - Village Mayor David Wallace and representatives of Bath Electric Gas and Water Systems agreed last week to proceed with plans to upgrade the public utility's electric infrastructure at a potential cost of $7.1 million.

Wallace said the village would issue bonds to finance the project, and the utility would pay back the bonds with higher electric rates.

The mayor's agreement with BEGWS includes using utility employees in the actual construction process. That provision could reduce overall labor costs by $1 million, Wallace estimated.

"We've got a good electric crew," said Wallace. "It's what they do, and I think they can save some money."

Because the utility does not have the authority to issue its own bonds, the village municipality is the only entity empowered to issue debt to cover the cost of the project. That means, Wallace noted, the village itself would be responsible for paying back the bonds in the event future rate increases for BEGWS are not approved by the New York Public Service Commission.

However, he continued, PSC history indicates a receptiveness toward rate increases tied to capital construction costs, as opposed to operational expenses.

"History with the PSC tells me if you have hard costs, they will recognize those dollars and factor that into a rate increase," the mayor said. "It's different from telling them our operating costs are higher than our income. ... I'm confident the PSC will recognize that."

Wallace said he would brief village trustees on his meeting with BEGWS and ask their support of the revised upgrade plan.

The project calls for eliminating three substations and establish a new, single substation along Fairview Drive. That substation would contain two transformers designed to back each other up in the event of an emergency.

The overall plan would boost the flow of electricity through the village, where residents are steadily increasing their annual energy consumption. BEGWS officials have warned the utility in the future may not be able to provide sufficient electricity during peak hours with its current infrastructure. BEGWS engineers also have warned the current infrastructure is vulnerable to spot failures in the event of a transformer crash at one of the smaller substations.