Your PUD
News Release
PUD commissioners invite comment before strategic decisions are made
Chelan County PUD
News Release
5/30/2007
Chelan County PUD commissioners are closing in on 10 months of financial analysis, policy debates and public meetings designed to set the utility’s course for the next five years. Before the final decisions are made on June 11, board members want to make sure everyone interested has a chance to be heard.
Board members have heard one recommendation from General Manager Rich Riazzi, but they have a wider range of options still open for consideration.
Customer-owners who want to comment can e-mail board members, leave phone messages or speak in person at PUD Commission meetings between now and June 11. Public meetings are scheduled at 1 p.m. on June 4 in the PUD board room and at 5:30 p.m. June 11 at the Confluence Technology Center.
Potential rate increases up to 12 percent a year for electricity, 9 percent a year for water and 20 percent a year for wastewater are on the table for consideration as the PUD looks to close financial gaps in all areas of its operations. For the past decade or so, the PUD has relied heavily on wholesale power revenues to cover gaps in operating costs, but the wholesale market is highly volatile.
Because no one can predict precisely how much snowpack there will be, what the market price of electricity will be or what PUD load growth will be, managers and staff have recommended that the PUD move away from reliance on surplus wholesale power sales and onto more secure financial footing for the future.
“Revenues are not covering costs in any of our services,” said General Manager Rich Riazzi. “We have been relying too much on wholesale surplus power sales to make up the shortfall the past few years. We can’t keep doing that forever.”
In detailed public presentations that began last August and continued every few months since then, Riazzi and other PUD staff members have outlined the costs and revenues in each area of operation and calculated what rate hikes might be required to narrow the operational gaps and reduce potential surcharges. Earlier this week, Riazzi recommended 9-percent increases in electric bills for three years (possibly four) and five years for water and sewer.
Board members will now decide from a broader range of options on June 11 what rates to impose. Figures for the electric distribution system increases have ranged from zero percent to 12 percent per year for the next five years, depending on how much the utility relies on wholesale power sales. In the worst case, that could take the average electric bill from $52 a month to $58 in the first year and to $97 a month in 2012.
Water rate increases could range from 0 to 9 percent. That could take the average water bill from $53 a month to $58 in the first year and to $85 a month in 2012, in the worst case.
Wastewater increases could range from 0 to 20 percent. That could take the average sewer bill from $64 a month to $77 in the first year and to $178 a month in 2012, in the worst case.
Commissioners will also have to decide whether to continue building the District’s wholesale fiber-optic system – and, if so, how fast to proceed.
Financial information and analysis are available on the PUD Web site (www.chelanpud.org) under “Strategic Planning” on the home page.
To comment to commissioners, please e-mail or phone:
Dennis Bolz
(509) 661-4264
dennis.bolz@chelanpud.org
Ann Congdon
(509) 661-4239
ann.congdon@chelanpud.org
Norm Gutzwiler
(509) 661-4286
norm.gutzwiler@chelanpud.org
Werner Janssen
(509) 548-7826
werner.janssen@chelanpud.org
Randy Smith
(509) 661-4263
r.smith@chelanpud.org
#####
For further information, contact:
Steve Lachowicz
Communications director
Chelan County PUD
(509) 661-4639
steve.lachowicz@chelanpud.org