Your PUD
News Release
Water and sewer rates discussed
Chelan County PUD
News Release
7/21/2008
Continuing the discussion on how the cost of providing utility services matches revenue from rates, PUD commissioners Monday looked at draft water and sewer rates for 2009.
Following the direction from the commission to trim the gap between revenue from rates and the cost of providing service, staff drafted an initial design with average increases of 6.9 percent for water and 6.5 percent for sewer in 2009. The draft is a work in progress. If adopted, new rates would go into effect in January or April of next year.
The PUD operates five suburban and rural water systems and three small sewer systems.
A cost-of- service study conducted earlier this year showed that average water revenues for 2009 are 9 percent lower than what it costs the PUD to provide the service to residential, commercial and industrial water users. On average, wastewater revenues are almost 25 percent lower than costs. The gaps are projected to continue to grow in 2010 and beyond.
Study results included support from 3 percent of the risk-adjusted annual wholesale power revenues, or about $249,000 for water system costs and $269,000 for sewer. Electric system customers would receive the benefit of 97 percent of adjusted wholesale power sales. There are about 5,600 PUD water and sewer customers. The PUD serves about 45,000 electric customers. Also taken into account was the cash credited to water and sewer systems from Puget Sound Energy’s $89 million capacity reservation charge.
Discussion on rates will continue until mid-August. Commissioners plan to hold public meetings in early fall before making a final decision.
Public comment is welcome at board meetings, by e-mail at board2@chelanpud.org and by phone at (509) 661-4212.
The results of the cost-of-service study are posted on the PUD’s Web site.
In other business, PUD commissioners:
- Heard from Chief Financial Officer Joe Jarvis, who reported that the PUD earned an average return of 4.22 percent on $376 million in investments in the second quarter of 2008. Reflecting market trends, return was down from the prior quarter.
- Reviewed the timeline for the 2009 budget. After providing staff with rate design recommendations in August, commissioners will see budget targets and large projects plans Sept.15 and a preliminary budget Oct. 27. A final budget will be presented Nov. 24. Staff will ask for approval on Dec. 1.
- Discussed the fluctuating Columbia River level with Randy Lowe, Energy Resources executive manager. Lowe said river levels fluctuate this time of year as the region and the PUD balance power demand and lower flows as part of normal operations.
- Recessed the meeting to reconvene at 5:30 p.m., to meet with other Mid-Columbia PUD commissioners and managers at Highlander Golf Club, 2920 8th St., S.E., East Wenatchee.
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The next regular meeting of the PUD commission is at 11 a.m. on Monday, July 28, 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 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