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newsMar 20, 20261:00

Central Alabama Water Cuts Costs, Avoids Rate Hikes

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Central Alabama Water, Alabamas largest water system, has approved new budgets without rate hikes, marking a significant shift from Decembers plans. The new budgets, proposed by CEO Jeffrey Thompson, reduce operating expenses by $16.2 million and capital spending by $40.8 million. These cuts come with a heavy price, including 241 layoffs and the elimination of 76 vacant positions, saving $21.1 million annually in labor costs. Despite these tough measures, Central Alabama Water is pushing forward with leaner plans, as a bill to reform the Birmingham Water Works Board has passed the legislature.

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Central Alabama Water Cuts Costs, Avoids Rate Hikes

Birmingham News Today | 2 Min News | The Daily News Now!

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Birmingham News Today | 2 Min News | The Daily News Now!Central Alabama Water Cuts Costs, Avoids Rate Hikes. Machine-transcribed; use the interactive transcript above to jump the player to any line.

You're listening to Birmingham News today, powered by the daily news now. Central Alabama Water, the state's biggest water system, just approved new budgets without raising customer rates. These plans replaced one said back in December, right after they hired new CEO Jeffrey Thompson. Thompson had promised to review costs and bring back changes early this year, and now operating expenses dropped to $123 million, $800,000 from nearly $140 million, while capital spending falls to $34 million, $900,000 from $75 million, $700,000. The cuts hit hard with 135 layoffs last week, and 76 empty jobs wiped out, saving $20,100,000. Dollars a year in labor costs, a move Thompson called Extremely Tough. Meanwhile, a bill to shake up the Birmingham Water Works Board has cleared the legislature, as Central Alabama Water pushes forward with these leaners. To keep services steady.

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