dollars a year with the planned pullout of the Canadian Forces, starting May 1.

And the company is crossing its fingers that there are no further cuts this year at the US Navy base, which is the company's biggest customer.

Belco is also hoping there are no "surprises'' in the Finance Minister's upcoming budget.

The company's president Mr. Alf Oughton said yesterday that the Canadian Forces withdrawal from the Island would have a "significant negative impact'' on sales -- to the tune of $600,000 a year.

He did not want to disclose how much revenue the company received from the US Naval Air Station and its Southampton Annex, but considering it is several times larger than the Canadian base at Daniel's Head, the amount could be more than a million dollars at least.

Although Belco has budgeted for the revenue loss, Mr. Oughton said it foresaw continued constraint in the use of electricity due to recessionary times.

However, because of the community's economic woes, Belco's Board of Directors has decided not to proceed with a rate hike this month.

The company's financial situation will be reviewed later on in the year though, and rates could be hiked if it worsens.

But Mr. Oughton was hopeful that if visitor arrivals improved, Belco would be able to maintain its present sales levels and not have to increase electricity rates.

He pointed out that despite the continued recession and downturn in tourism, the company's financial performance for the year was better than budgeted, though it would still be lower than 1991.

And projected earnings for 1993 -- without a rate increase -- are expected to decline further.

The last time electricity rates were hiked was in January 1991, by two and half percent.

"It is unknown what could happen this year,'' Mr. Oughton said.