It’s the appropriate time for change

By Rich Riazzi, General Manager

3/27/2007

Change is inevitable for all of us. In many instances it brings new opportunity and new insight. I think it leads to improvement. 
 
We are seeing our share of change at Chelan County PUD, and our customer-owners are likely to feel an impact. Our strategic planning sessions have moved into the phase where tough choices are about to be made. The financial model that served the District so well from the late 1990s through today does not appear that it can sustain us for the long term as our quantity of surplus energy is consumed by increases in local load growth. As we continue to rely on revenues from a decreasing amount of excess power sold into volatile wholesale markets -- coupled with uncertainty in snowpack -- we significantly increase the risk profile of our PUD. This risk leads to increased rate volatility. 
 
We will be sharing much more information with the board in the next two months, and we invite your participation and comment as we explore options for action and see what benefits could result. Input from our customer-owners is an important part of our public power foundation.
 
Change has come to the PUD in other ways as well, with a realignment of our organizational structure. The purpose of the realignment of the organization is to create a structure centered around major functions, providing clearer lines of sight to financial and managerial accountabilities and responsibilities. The changes are part of the action plans that have emerged as I have learned more about the District during the 10 months or so that I have been in this manager’s role. When I first arrived last May, my stated intent was to go through a three-step process of learning, analyzing and then creating action plans. 
 
Here we are -- positioning ourselves for the best ways to carry out the important policy decisions that will ultimately come from the board in coming months. It’s an interesting, challenging time, and I look forward to hearing your ideas and comments.

 
Sincerely,

Rich Riazzi