Your PUD
News Release
PUD manager recommends rate increases as part of strategic plans
Chelan County PUD
News Release
5/29/2007
General Manager Rich Riazzi recommended a series of 9-percent rate increases for electric, water and sewer services to stabilize District finances through 2012. If approved, the recommended increases would begin Jan. 1, 2008, and last through 2011 for electric bills and through 2012 for water and sewer services.
Decisions on rates and other policies are expected at the fourth community strategic planning session at 5:30 p.m. on June 11 at the Confluence Technology Center in Wenatchee.
The recommendations come after almost 10 months of financial analysis, policy discussions and public meetings designed to set the utility’s course through 2012.
As proposed, the average residential electric bill would go from $52 to $57 per month the first year and ultimately to $74 a month if all rate increases continued. Commissioners could revise the plan each year, if water conditions were better than expected. Even after four years of increases, electric rates would still be well below regional and national levels.
Riazzi also recommended that commissioners choose an extended construction scenario for the wholesale fiber-optic network. This would bring fiber access to 76 percent of county homes and businesses by 2012. The current construction schedule would reach 95 percent by 2012.
As part of the strategy, more than $100 million in reserves would be used to pay off internal and external debt and future capital expenses.
PUD commissioners are encouraging customer-owners to comment on the proposals. Comments can be submitted directly to commissioners, or through the PUD’s Web site, http://www.chelanpud.org/. Detailed information is also available on the site under “strategic planning.”
In other business, PUD commissioners:
- Authorized a $3 million purchase of electric distribution transformers from General Pacific, Inc., Portland, Ore., and Ermco Transformers, Dyersburg, Tenn.
- Heard from fruit packing and shipping customers regarding electric rates. They asked commissioners to create an agricultural rate class and submitted a proposal asking that rate increases for that class be limited to 4 percent annually through 2011. Commissioners will consider the request as they move forward with strategic planning.
- Approved budget revisions totaling about $3.5 million for electric transformers and the costs associated with relocation of the Walla Walla Street Substation.
- Heard that wholesale surplus power revenues are $38.8 million through April. This is $3 million more than budgeted for all of 2007. Chief Financial Officer Joe Jarvis told commissioners that the extra funds would be used for projects, like tree trimming, that were postponed when the PUD expected less water and lower wholesale power prices. The funds will also cover items not anticipated in 2007, like the Cashmere electric system offer and the Walla Walla Substation relocation.
- Conducted a performance review of General Manager Rich Riazzi. Commissioners gave him a 4.5 percent salary increase, effective June 1, making Riazzi’s salary $261,250 on an annual basis.
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Commissioners recessed Tuesday’s meeting and continued it to 7 p.m. tonight, for a Monitor community meeting, at the Monitor United Methodist Church, 3799 Fairview Canyon Rd.
The next regular meeting of the PUD commission is at 1 p.m. on Monday, June 4.
Commissioners have set special meetings for May through July to attend customer partnership group meetings.
Most PUD commission meetings are recorded, and a link to the audio is available on the PUD’s home page at http://www.chelanpud.org/.
Christy Shearer
Communications Audio-visual Specialist
Chelan County PUD
509.661.4258 office
509.421.4258 cell
509.661.8133 fax
christy.shearer@chelanpud.org