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PUD cuts another $4.8 million from 2009 spending

Chelan County PUD
News Release
2/17/2009

Chelan County PUD pared back spending on 2009 capital projects by another $4.8 million Monday as revenue forecasts continue to drop. PUD commissioners also approved a financial step to cover bond payments the next two or three years.

Commissioners agreed to set aside in an escrow account about $10.6 million to cover obligated debt-service payments for 2009 and 2010. Whether to add a payment for 2011 will be decided later. Chief Finance/Risk Officer John Janney explained to board members that setting the money aside in escrow would comfort bondholders who may worry in these tough financial times whether the PUD would be able to make its debt-service payments on schedule.  With money in escrow, that is now assured.

Janney  and Executive Manager of Operations Joe Jarvis presented commissioners a list of further cuts in capital spending that will be taken as a result of continuing decline in projected financial revenues this year. Last week the PUD announced cuts of about $4 million in its fiber-optic build-out and $9.2 million by delaying installation of automated electric meters. Low snowpack and low prices for surplus power have now led the PUD to  trim about $18.8 million in total from capital spending for 2009. Included in the latest cuts are postponing replacement of selected power lines, various substation improvements, circuit breakers, vehicles and a trail extension connecting Riverwalk Park in Chelan with a new trail into the upper portions of the Chelan Gorge.

Janney and Jarvis said they would report back to the board in another week or two about contingency plans for reducing operations and maintenance spending as well. Janney said a temporary electric rate surcharge is still possible as a last resort if PUD finances continue to decline.

The next regular meeting of the PUD Commission is at 11 a.m. on Monday, Feb. 23 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.

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For further information, contact:

Steve Lachowicz
Director, Communications
509 661-4639
Steve.lachowicz@chelanpud.org