Your PUD
News Release
Improved snowpack and market prices result in no surcharge for 2007
Chelan County PUD
News Release
4/9/2007
PUD commissioners Monday agreed that no electrical rate surcharge will be needed this year.
The decision came after staff reviewed wholesale power prices and the April 1 runoff forecasts for the Columbia River and Lake Chelan basins, which are both above average.
“It’s the best of both worlds,” said Gary Donabauer, PUD power analyst. “We’re going to have a lot of supply, and the prices are going to stay good.”
He noted that El Nino conditions forecast last fall didn’t materialize in the Northwest.
Detailed financial analysis by PUD staff found that 2007 revenues, without a surcharge, are highly likely to provide a bond coverage ratio of 2.36, exceeding the 1.25 minimum.
PUD staff also asked commissioners to consider policy changes to streamline the surcharge process. Chief Financial Officer Joe Jarvis said it’s likely the PUD will face the need for a surcharge again in the next few years. An updated process would allow the PUD to wait for actual snowpack figures before having to start the process. As part of that, a line for an electric rate surcharge will be added to customer bills now, but the amount will be zero for this year.
Commissioner Ann Congdon objected to adding the line to the bills. She wanted to wait until after the board finishes its strategic planning effort. Other commissioners agreed with Chief Financial Officer Joe Jarvis that adding the line will help customers remember the reasons why a surcharge was considered this year and may be needed in the future.
Cashmere electric system sale to be discussed April 16
PUD commissioners invited the Cashmere mayor and city council members to next week’s PUD board meeting to discuss the status of the proposed sale of the city’s electric system to the PUD.
On Feb. 5, PUD commissioners made a $3.5 million offer, with 11 contingencies, to the city of Cashmere for purchase of its electric system. The offer depends on two major contingencies: property rights verification and an environmental assessment. Those and nine other contingencies must be fulfilled before the end of 2008 for the PUD’s offer to take effect.
The two entities want to fine-tune the offer, however, no changes in the main terms are being considered.
At the city’s request more than a year ago, the PUD took part in an evaluation of Cashmere’s electric system, which serves about 1,400 customers.
In other business, commissioners:
- Heard from Generation Group Executive Manager Ed Odom that the PUD had received two letters of appreciation, one from the state Department of Ecology and the other from the federal Environmental Protection Agency. The EPA commended the PUD for its significant contributions to a voluntary program that speeds up removal and disposal of PCBs (polychlorinated biphenyls) from electrical equipment. The DOE thanked the PUD for staff help on Feb. 6 when an oil spill from an undetermined source was spotted by PUD fish and wildlife crews on the Rocky Reach reservoir, and additional PUD staff helped deploy containment booms and cleanup equipment. “This response serves as an excellent example of how close coordination between state and local resources can mutually benefit our agencies, citizens and environment,” said the letter. The source of the oil was never found.
- Listened to an update on programs offered by the PUD’s Energy Services Department. The group provides conservation programs, manages the award-winning SNAP (Sustainable Natural Alternative Power) program and oversees loans for residential and commercial conservation programs to improve energy efficiency. Since 2001, the PUD’s commercial conservation program, Resource $mart, has saved enough energy to power more than 1,500 local homes.
- Met Stefan Vogt, the new Alcoa Wenatchee Works plant manager. Vogt arrived in Wenatchee from an Alcoa plant in Spain.
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PUD commissioners continued Monday’s meeting to 6:30 p.m., Tuesday, April 10, at the Entiat Warehouse Community Church, to attend a community meeting to discuss options for fiber-optic and DSL service for the Entiat Valley.
The next regular meeting of the PUD commission is at 1 p.m. on Monday, April 16, in the boardroom at 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
509-661-4320, direct line
509-679-6858, cell
kimc@chelanpud.org