Your PUD
News Release
PUD commissioners share philosophies on cost of service
Chelan County PUD
News Release
6/9/2008
Commissioners Monday shared with staff their ideas on how best to close the gaps between revenues and the cost to provide electric, water and sewer services.
A study shows that almost all Chelan County PUD customers are paying less than it costs to provide the services they receive. Commissioners are deciding if they want to close the gap between the costs and the revenues and if they want to use rate increases, rate design or a combination of both.
At a June 2 public meeting, commissioners took their first public comment on the study, which takes a close look at what it costs to deliver electric, water and sewer service to customers and what may be needed to keep Chelan County PUD financially healthy through 2012. Commissioners on Monday said they also want to discuss what will happen when existing long-term power contracts come to an end in 2012 and consider what the financial situation of the utility will be at that time.
Monday, commissioners asked staff to prepare options that would show the impact on customers of doing the following:
- Small rate increases over time to fill the gaps, starting Jan. 1, to avoid sharp spikes in customer bills
- Tiered rates for electrical service to promote conservation, with higher rates for customers who use large quantities of energy
- Adopting uniform water and sewer rates, regardless of which system provides the service
- Expanded discounts for low-income seniors and disabled customers
- Eliminating the minimum charge for residential customers
- Dropping the demand “ratchet” for commercial and industrial customers
- Changing the irrigation season for rates on pumps
- Streamlining interdepartmental rates the PUD charges itself
Staff will develop detailed options to be discussed further at board meetings through June and July. August is the target month for rate decisions in preparation for preparing the 2009 budget.
Public comment is welcome at board meetings, by e-mail at board2@chelanpud.org and by phone at 661-4212. The results of the cost-of-service analysis are posted on the PUD’s Web site.
In other business, PUD commissioners:
- Saw the latest version of the PUD’s Integrated Resource Plan, or IRP, which shows an ample supply of power to meet local needs through the next decade. The PUD will meet the requirements of Initiative 937 thanks in part to its participation in Nine Canyon Wind Farm near the Tri-Cities and incremental hydropower from more efficient use of water at PUD dams. I-937, passed in 2006, requires the PUD to serve at least 9 percent of its local load with eligible renewable energy by 2016, and 15 percent of load by 2020. Commissioners will vote on the final IRP Aug. 11. Comments can be submitted at board meetings and on the PUD’s Web site at http://www.chelanpud.org/IRP.html.
- Heard that the PUD’s automated meter system project is considering an accelerated construction schedule of about two years to capture savings associated with bulk purchase of the meters and the labor to install them. The PUD will publish a request for proposals on the project soon.
- Set a public hearing for 1 p.m. on June 30 to discuss the exchange of 371 acres of PUD land in the Glacier Peak Wilderness Area for a permanent easement to the U.S. Forest Service’s Lyman Lake Snotel Site, where the PUD has measured snowpack since 1928. The PUD’s land, called Miners Ridge, is in Snohomish County, so the hearing will take place via telephone in the PUD’s boardroom and Conference Room TC2E at the Snohomish County PUD, 2320 California St., in Everett.
- Agreed that last week’s presentations by Patrick Moore, hosted by the Mid-Columbia PUDs, were successful in continuing a discussion on energy sustainability in the region. Commissioner Werner Janssen encouraged the PUD to maintain the discussion by inviting more speakers in the future.
- Heard a request to move ahead of the original schedule and purchase two turbine runners and wicket gates for the next phase of the modernization project at Rock Island Dam, which is replacing old turbines and generators for better efficiency and longer life. Staff will ask for approval on June 16.
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Commissioners adjourned to continue Monday’s meeting to 4 p.m. on Wednesday, June 11, at Newbery Elementary, 850 North Western Ave., Wenatchee, to attend a city of Wenatchee foothills study meeting.
The next regular meeting of the PUD commission is at 11 a.m. on Monday, June 16, in the boardroom at PUD headquarters, 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.
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