NPU budget for Fiscal Year 2025 approved

The Norwich Public Utilities (NPU) budget for Fiscal Year 2025, which is part of the City’s overall budget, was approved by the Norwich City Council on June 10.

Per the approved budget, NPU’s payment to the City next year will be $10.3 million, the largest in NPU history. Per the City Charter, this payment is based on 10% of gross revenue from natural gas, electric and water sales and is $1.2 million more than the payment to the City for Fiscal Year 2024. Over the past ten years, NPU has returned more than $88 million to the City.

NPU’s revenues for next year are estimated to be down nearly $3.9 million, which is a direct saving for our customers. And NPU expenses are anticipated to be down $1.9 million, which reflects the decrease in wholesale energy (the natural gas and electricity we buy for our customers) costs.

In the new budget, NPU will invest $108.5 million to fund a variety of critical projects and improvements across all four of our utilities, including:

• $82.33 million for the continued upgrades at our Wastewater Treatment Plant
• $14.35 million to upgrade and replace natural gas and water mains
• $2.2 million in water storage tank improvements

NPU will also utilize very significant grant funding from federal and state sources which also reduces costs for our customers. These funds include $31.6 million through the Clean Water Fund, $5.3 million through the Pipeline and Hazardous Materials Safety Administration (first installment of $21 million over the next several years), and $1.5 million through the Clean Water Fund.