Your PUD
News Release
As conditions worsen, PUD continues to tighten belt
Chelan County PUD
News Release
2/9/2009
A declining snowpack forecast and continuing low wholesale power prices have triggered slowdowns in two large Chelan County PUD capital-spending projects as the utility continues trying to avoid a surcharge for 2009.
PUD commissioners Monday agreed with plans to slow down construction of the fiber-optic network to new service areas for the rest of this year, reducing costs by about $4 million. Another $9.2 million will be saved by delaying a project to replace all electric meters in the county with automated meters.
With $6 million remaining in the fiber-optic budget for 2009, the PUD will continue to connect customers in areas already served by fiber and to finish construction in areas where it has already started. Contract crews who had been hired in the past to do fiber work for the PUD will be most affected by the slowdown. In an e-mail to PUD supervisors Monday, General Manager Rich Riazzi said, “No PUD jobs will be lost as a result of deferring these capital expenses.”
In their report to the board, Chief Finance Officer and Chief Risk Officer John Janney was joined by Executive Manager of Operations Joe Jarvis. They said the latest snow survey in the mountains around the Lake Chelan Basin shows a snowpack just above 70 percent of average. Wholesale power prices keep falling, as do proceeds from PUD investments, cutting the PUD’s anticipated budget revenues this year by about $17 million at this point.
In addition to delaying these projects, they said PUD staff will continue to look for other capital projects that could be deferred and for potential reductions in operations and maintenance spending.
“A surcharge is still an option if we need it, as one of our last resorts,” said Janney.
Janney told commissioners they would be asked next week to authorize a change in the way the PUD makes its debt service payments that would relieve stress on the utility’s debt-coverage ratio for bonds. Money for debt service payments will be set aside in escrow for the next two years.
Commissioner Dennis Bolz told staff, “I appreciate the fact there is a consistent and constant review and repositioning to match what’s happening.”
In other business, PUD commissioners:
- Approved an agreement with HydroAcoustic Technologies Inc., Seattle, for 2009 services related to the PUD’s fish studies. Commissioners also approved the purchase of 76,000 passive integrated transponder (PIT) tags from Biomark Inc., Boise, for 2009 juvenile fish survival studies. Both agreements help the PUD measure how successfully it is meeting fish survival obligations in Habitat Conservation Plans for Rocky Reach and Rock Island dams.
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Due to the Presidents Day holiday, the next regular meeting of the PUD commission is at 11 a.m. on Tuesday, Feb. 17, 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
Deputy Public Information Officer
Chelan County PUD
(509) 661.4258 office
(509) 421.4258 cell
(509) 661.8117 fax
christy.shearer@chelanpud.org