VIDALIA — One of four of the City of Vidalia’s main sources of revenue, the hydroelectric fund, provided $1.8 million less in revenue in 2012 than in the previous fiscal year, according to a recent annual audit report.

The audit conducted by Silas Simmons LLP, a certified public accounting and consulting firm in Natchez, listed that during the fiscal year that just ended, the hydro royalty fund provided $5,325,176 towards funding the operations of the general and utility funds. The fund provided $7,139,846 in fiscal year 2011.

The deficit is attributed to low levels on the Mississippi River, which affect the amount of power the Sidney A. Murray Hydroelectric Station can produce.

The station, located 40 miles south of Vidalia, generates power dependent upon the height difference of the Mississippi and Atchafalaya rivers and the amount of diversion flow from the Mississippi and Red rivers.

Vidalia receives royalties from the hydro station that change each year depending on the total power produced by the plant that year.

Last year, the plant was unable to produce a sufficient amount of power to cover the royalties owed to the city, Plant Manager David Harris said.

“There were two quarterly payments that were deferred,” Harris said. “We’re currently analyzing through the first quarter of this year, and the payment made (to the city) that will be made for the first quarter of 2013 may include all of the previous payments.

“(If so) we would catch up on all past payments.”

Under the contract between the Louisiana Hydroelectric Partnership and the city, the partnership can defer paying royalties until the river gets high enough for the plant to once again make a profit.

In that situation, the partnership would incur the debt of the royalties not paid to the city and begin acquiring interest until being paid off.

Harris declined to release the specific amount of the payments that were deferred, and how much the city would receive in the upcoming quarterly payment with the additional amounts.

“Our goal is to bring everything up to date through all the deferred payments,” Harris said. “We have all the numbers at this time, but I’m not at liberty to release them.”

Vidalia Mayor Hyram Copeland had previously said lower production at the plant would result in a $4- to $6-million loss for the city.

Copeland did not return several messages Thursday.

Harris said current river levels have allowed for production at the plant to return to normal levels.

“So far this year, the water has restored to normal levels, and the plant has been operating well,” Harris said. “It looks like we’ll be able to return to a normal schedule of royalty payments.”