VIDALIA — Vidalia residents will not be getting a hydro rebate this year.

The Town of Vidalia hosted Thursday evening the second of two required public hearings to discuss any surplus revenues for the town’s hydroelectric plant.

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Primarily because of lower revenues from royalties in the 2017-2018 fiscal year, Mayor Buz Craft told the five residents at the hearing that no surplus funds exist after taking out funds required by the city’s hydroelectric ordinance.

Last year royalties totaled $10,549,235, approximately $1.2 million dollars less than last year’s royalty number.

As required by the ordinance, the Town must pay participation costs, which equal to 6 percent of the power generated by the hydroelectric plant, Craft said.

“Entergy of Louisiana buys back the other 94 percent,” Craft said.

The participation costs for the town totaled $8,353,110 for 2017-2018.

In addition to participation costs the town is required to make transfers into the Vidalia Utility Fund every month the municipality’s normal cost of electric power exceeds 3.8 cents per kilowatt-hour. This year that calculation totaled $2,254,259.

In previous years, the town has deducted previous debt incurred, including debt service on the town’s municipal complex. Last year the town council decided to omit any deductions for debt service, allowing more money to go directly back to residents.

After making all of the deductions required by the ordinance, no funds were left for rebates.  The hydrofund ended with a net deficit of $58,134.

“Last year royalties were $1.2 million higher. That is where we got our rebate from, because (approximately $600,000) was leftover after we did those calculations,” Craft said.

Craft said he remains committed to giving residents rebates when the town is able.

“It kills me that we don’t have the money to rebate our customers,” Craft said. “All I can tell people is I promised if there was supposed to be a rebate given, I am giving it.”

In future years, Craft said the town may be looking at more royalty funds as dictated in agreements signed in the late 1980s and 1990s.

Town consultant Elizabeth Tanner said in recent years royalty rates have been barely increasing.

Tanner said the royalty rates, as scheduled, are set to greatly increase over the next few years, which could mean more money for the town.

All things remaining constant and based on past production, the town could see more net royalties.

“In 2019, the town could net from $4 million to $4.5 million dollars as compared to the two-or-so (million dollars) it has been in the past 10-15 years,” Tanner said. “In 2020 it would be around $6 million, in 2021 around $8 million.”

“Starting in 2022, it is anywhere from $18 million to $20 million,” Tanner said. “That is all projections based on river levels.”

As a result of the anticipated net increase in funds, Tanner said the town will need to discuss in the future what to do with that money.