Your PUD
News Release
Update on external auditing
Chelan County PUD
News Release
2/7/2005
Laurie Tish, a director with Deloitte and Touche, the District’s external auditing firm, provided an overview of the auditing process and changes for public utilities that are due to the recent tightening of regulations for private firms.
Tish discussed the types of audits, the role of auditors, “trickle-down impact” from the federal Sarbanes-Oxley Act, risk management, board and audit committee roles and responsibilities, internal controls and financial best practices.
She also congratulated the PUD on creating an audit committee last year, even though one is not required for public utilities.
“I want to commend you. I think it’s a great practice,” Tish told PUD commissioners Monday.
PUD commissioners created an audit committee on Sept. 13, 2004, to provide a broader forum for internal auditor Stacey Jagla to raise any potential issues related to oversight of District operations. Jagla now reports to a six-member committee that meets quarterly, comprised of the president and vice-president of the Board of Commissioners, plus four senior managers.
Tish also noted that a team of Deloitte and Touche auditors will arrive at the District on Monday to begin a four-week audit of the PUD’s 2004 financial statements.
State settlement to benefit commercial and industrial customers
Chelan County PUD commercial and industrial customers will share in a settlement reached by the state Attorney General’s Office with three energy traders related to power prices during the 2000-2001 energy crisis.
The District’s share of the settlement is $10,627. About 5,400 commercial electric customers will receive a credit of $1.29 each on their next bill. The District’s 27 industrial customers will receive a credit of $138.74 each.
General Counsel Carol Wardell said the District tried to get approval from the state to use the lump sum for a commercial conservation program, but state officials required the PUD to pass along the settlement to specific customers, no matter how small the individual amounts.
The state sued three companies - Williams, El Paso and Duke Energy – on behalf of electric customers in the state.
In other business, commissioners:
- Received thanks from representatives of the Entiat Watershed Committee for the District’s participation in developing a plan that has won two national awards and is now used as the Northwest’s model plan. Keith Vradenberg and Bob Whitehall delivered copies of the plan, 14 years in the making, to PUD commissioners. Jeff Osborn, from the relicensing team, represented the PUD on the committee.
- Received an update on the PUD response to the Sunday night fire at the Keyes Fibre plant north of Wenatchee. PUD Water Department employees acted quickly to make sure reservoirs could keep up with the demand for nearly 7,000 gallons of water a minute that was poured on the blaze by firefighters. The fire also burned the fence at the nearby Olds Station Substation and caused other equipment damage. Power was expected to be restored to the plant and one other nearby building by Tuesday. Dave Johnson, Water/Wastewater director, noted that there wouldn’t have been enough water to fight the blaze without the 1-million-gallon Crestview reservoir completed in 2003.
- Heard from Carol Wardell, general counsel, that the Yakama Indian Nation has sued federal officials over approval of Habitat Conservation Plans for the Columbia River dams operated by Chelan and Douglas County PUDs. The PUD was notified of the lawsuit against the Federal Energy Regulatory Commission on Jan. 20. Wardell said the PUD is confident in the record that was established during the approval process, which shows the strong public benefit of the landmark plans. The District will closely watch the proceedings in U.S. District Court.
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The next regular meeting of the PUD commission is at 1 p. m. on Feb. 14,Jan. 31, 2005, in the boardroom of the Headquarters Building, 327 N. Wenatchee Ave.
Most PUD commission meetings are recorded and a link to the audio is available on the PUD’s home page at www.chelanpud.org.
Kimberlee Craig
Public Information Officer
661-4320, direct line
679-6858, cell
kimc@chelanpud.org