CITIZEN POWER ALLIANCE

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.

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