Considering the coming 2024 rate adjustment, our commitment to delivering reliable service while being fiscally responsible has led us to adjust between the construction work plan and budget considerations.
During budget deliberations, we evaluated the remaining work plan projects for 2024, the final year of a 4-year plan. Essential initiatives such as the aging underground cable replacement in the Breezy Point Resort area and underground cable relocation at the intersection of County Rd 3 and County Rd 5, north of Merrifield due to the Crow Wing County roundabout project, were deemed imperative to move forward, ensuring long-term reliability. Simultaneously, we made the prudent decision to temporarily suspend projects like the replacement of three and a half miles of underground cable along County Rd 15 west of Gull Lake, saving an estimated $600,000. Additionally, postponing the rebuilding of maturing wood structures in our Crosslake substation is expected to save one million dollars. Other small projects were delayed, resulting in an additional two million in cost-saving for the Cooperative. These projects will carry over into the new work plan.
In total, we made a calculated decision to reduce the budget by $4.6 million while safeguarding the most crucial plans for the safety of our line crews and the uninterrupted service for our members. It's a delicate balance that requires thoughtful consideration of both short-term and long-term needs.
When establishing a multi-year work plan, being flexible is essential due to factors such as storms, equipment malfunction, or significant economic fluctuations. Looking ahead to our future work plan spanning from 2024 to 2028, we prioritize major projects within our service territory, collaborating with local government entities.
As your Chief Operating Officer, I want to assure you that every decision made is with the safety and reliability of the Cooperative in mind. We remain committed to delivering quality service while being mindful of the financial impact on our members.
Respectfully,
Eric Quale, COO