A Message from OUC's Commission President
and CEO & General Manager
Katie Porta
Commission President
Ken Ksionek
CEO & General Manager
Never before in the 85 years of OUC has our tradition of sound fiscal planning and prudent business practices been so important. The past year has tested our mettle with the combination of an economic downturn, a reduction in growth, and unseasonably mild weather.
As the financial markets fluctuated during 2008, we maneuvered through the mayhem and reaped the benefits of our long history of fiscal responsibility, strong financial foundation, and AA bond rating.
Midway through the year, OUC anticipated the issues and initiated cost-cutting measures, including a hiring freeze for non-critical positions, restrictions on travel and overtime, and scaling back of capital projects. These efforts limited the negative impact of the economy and weather, allowing OUC to finish 2008 with $61 million in net income. However, this was lower than originally anticipated.
In light of these lower than expected results in 2008 and with many sources suggesting a prolonged economic downturn, we are projecting no growth in sales for 2009 in comparison to 2008. In addition to lowering our sales expectations, we undertook an extensive review of all operating expenses and capital projects moving forward.
The long-term sustainability of our organization is paramount to OUC. We will achieve this by focusing on three key tenets - reliability, affordability, and environmental stewardship. However, as we move forward, balancing these three goals will be a challenge.
Due to the economy, our customers are more price sensitive. At the same time, potential climate legislation will require investment in more expensive, carbon-free technology and volatile financial markets will demand increased levels of reserves.
Our solution is to look to the future. OUC is already pursuing participation in proposed nuclear projects in Florida. Nuclear generation - along with increased investment in renewables - is part of OUC's plan to meet future climate regulations. In addition, we plan to launch demand-side management programs and new pilot technology like in-home meter monitoring displays, to help customers become more energy efficient.
One big step toward that future was the completion this year of Reliable Plaza, our new customer service and administration center. When the land under our parking garage was needed for the Department of Transportation's expansion of SR 408, we needed to rebuild and we saw an opportunity to set the standard for sustainable building in Central Florida.
Designed to meet or exceed Gold LEED (Leadership in Energy and Environmental Design) Certification, "The Greenest Building in Downtown Orlando" will use up to 28 percent less energy and 40 percent less water compared to a similar building.
Despite the challenges faced this year, our employees proved once again that we have what it takes to weather the storm. We continue to be recognized as the most reliable utility in Florida, and our power plants are among the most efficient. Our water team continues to plan for our community's future and has been integrally involved in regional efforts to develop alternate water sources.
As always, we remain committed to upholding the financial and operational principles that have guided us so well throughout our history and we are well-positioned for the future. We have earned our reputation for being reliable through the toughest of times and we continue to live up to our name moving forward.