Your PUD
News Release
Change in financial direction launched
Chelan County PUD
News Release
6/11/2007
After more than six hours of listening to comments from the public and debating strategy, PUD commissioners Monday agreed on a new financial direction that includes rate increases and continuing construction of the fiber-optic network at the current pace.
With the goal of putting the District on firmer financial ground for the next five years, commissioners directed staff to start the process for raising electric rates by 5 percent; water and sewer rates by 9 percent; and the wholesale fiber-optic rates charged to service providers by 2 percent.
Monday’s action came after 10 months of study, analysis and recommendations from staff.
The next step in the process will be a public hearing on the rate proposals, but the date hasn’t been set.
If approved, the proposed rates would go into effect in January 2008 and be reconsidered each year. The need for electric rate increases is forecast through 2010 (possibly 2011) and for water and sewer through 2012.
PUD management had recommended 9-percent electric rate increases, but commissioners opted for a balanced approach with 5-percent electric increases.
Commissioner Werner Janssen opposed the action, saying he wanted to keep rate increases for water and sewer at 5 percent. Janssen also wanted to delay taking action until customers had more time to comment.
Included in the policies and principles adopted by the board as part of the strategic package was recognition that a surcharge may be needed occasionally (in years when water supplies are low or the price of power sold on wholesale market drops), but that 90 percent of the time the surcharge would be less than 14 percent.
Commissioners also decided to use $94 million of cash reserves to pay for future capital projects and to pay down internal and external debt.
In deciding to stay with the current pace of fiber network construction, commissioners directed staff to focus on reaching rural and remote areas, specifically Lake Wenatchee, the Entiat Valley and Blewett Pass.
About 75 community members attended Monday’s meeting, the fourth in a series of community strategic planning sessions that began in August 2006. About 20 people spoke.
Opinions varied widely on the fiber-optic project. Several questioned if the PUD had done enough to cut costs before proposing rate increases. Others said they understood that increases were needed to meet rising expenses.
Rose Nowack of Dryden urged commissioners to consider the impact any raise in electric rates has on the elderly living on fixed incomes.
After deciding on the proposed rate increases commissioners also directed staff to look carefully at designing rates in coming years to find ways to ease the impact on low income disabled and elderly customers.
The PUD last increased electric rates in 2000.
General Manager Rich Riazzi launched the strategic planning sessions in August 2006, a few months after arriving at the PUD.
In a series of community meetings, Riazzi and PUD staff reviewed the PUD’s financial past and looked at forecasts for the future. Riazzi discussed gaps in revenue that have developed and how those gaps will likely grow if the PUD continues to rely so heavily on revenue from surplus wholesale power sales.
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PUD commissioners have set a special meeting for noon-1:30 p.m. on June 13 to attend the Hispanic Customer Partnership Group meeting at El Abuelo Restaurant, 601 S. Mission St., Wenatchee.
The next regular meeting of the PUD commission is at 1 p.m. 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