Your PUD
News Release
PUD approves plan that shows power supply will meet load
Chelan County PUD
News Release
8/11/2008
Without changing any wording, Chelan County PUD commissioners Monday approved the PUD’s Integrated Resource Plan, or IRP – a report required by state law that cites the sources of power needed to supply customers through 2018. It shows the PUD has enough resources to meet expected load.
Several customer-owners again encouraged commissioners to add solar power to the IRP as an important piece of the PUD’s future portfolio, even if it is not needed for local load. Commissioners said they were satisfied that alternative energy sources such as solar or wind or geothermal would get serious consideration as the PUD implements its sustainability principles and that it was therefore not necessary to change any wording in the IRP.
The IRP, which shows an ample supply of power to meet local needs through the next decade, describes the mix of resources from generation, conservation and energy efficiency that will meet current and projected needs at the lowest reasonable cost and risk to the utility and its customer-owners. PUD commissioners have held public meetings since January to consider the IRP and listen to public comment.
General Manager Rich Riazzi told the crowd the IRP is a requirement of the state and does not limit the PUD in looking at other energy sources. He said the plan can be updated as often as the board likes. The PUD’s sustainability principles call for a look at renewables and environmental attributes associated with them in 2009, and Riazzi pledged that staff fully intend to explore other power supply opportunities, keeping in mind the impact of costs on the utility and its customers.
Wholesale power sales forecast drops
Randy Lowe, Executive Director of Energy Services, reported to the board that lower water supply and lower market prices are combining to bring an expected reduction of the year-end forecast for surplus power sales revenue for the PUD. While it is still expected to be the third best year in PUD history for surplus power sales, the midpoint of the forecast has been reduced from approximately $62 million to about $50 million by year end.
Lowe said forward market prices have dropped about $20 per megawatt hour recently, and that the extended time it has taken for snowpack to melt in the mountains has led to less water content than expected in the runoff. That has reduced the water supply for power generation. He said the PUD should still have plenty of energy to meet its load requirements, and that there shouldn’t be much further change in the forecast the rest of the year.
In other business, PUD commissioners:
- Approved a resolution revising the investment and banking policies of the District to enhance internal controls and change the percentages of funds allocated to various investment categories. The policy contains new limits on funds that can be invested in the state local government investment pool and government sponsored agencies such as Fannie Mae.
- Approved on a 3-2 vote a resolution to revise the electric line extension policy and the facility modification policy. Commissioners debated whether to go forward with an approach that requires customers to pay in advance for such extensions and modifications based on engineering estimates developed by the PUD. Commissioners in favor of the approach said it would reduce costs for all PUD customers overall and make the PUD more efficient. Voting in favor were Norm Gutzwiler, Dennis Bolz and Werner Janssen. Voting against the motion were Ann Congdon and Randy Smith.
- Heard from Riazzi that Chief Risk Officer John Janney has submitted his resignation, effective Aug. 22, in order to accept a job in his home town of Butte, Mont., with Highland Energy. Janney had been with the PUD since July 2007.
- Adjourned the meeting to reconvene at noon Tuesday for a large accounts luncheon in the auditorium at PUD Headquarters, 327 N. Wenatchee Ave.
***
The next regular meeting of the PUD commission is at 11 a.m. on Monday, Aug. 18, 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.
Steve Lachowicz
Director, Communications Division
Chelan County PUD
(509) 661.4639 office
(509) 679-0148 cell
(509) 661.8133 fax
steve.lachowicz@chelanpud.org