Your PUD
News Release
PUD manager recommends 18-percent electric rate surcharge
Chelan County PUD
News Release
4/13/2009
General Manager Rich Riazzi Monday recommended a one-year electric rate surcharge of 18 percent as the next step in contingency planning to keep Chelan County PUD financially healthy.
Riazzi said the surcharge is needed as part of a balanced approach to meeting the financial challenges caused by below-average snowpack, low prices in the wholesale energy market and declining interest income. He proposed the surcharge be effective May 1 and that PUD commissioners delay putting new electric rates approved last year into effect until the surcharge expires.
If approved, the surcharge is expected to raise about $9 million of the $19 million shortfall the PUD is facing for 2009. It would apply across the board to residential, commercial and industrial customers. The impact on homeowners would vary, but Riazzi offered examples of increases that ranged from $6 to $16 a month based on past energy use.
Before making the recommendation, Riazzi and John Janney, PUD chief financial officer, outlined $27 million in cost-saving steps the PUD has taken so far. Janney said the PUD is also considering additional delays in major projects such as powerhouse modernization at Rock Island and Lake Chelan dams and further slowing of fiber-optic network construction.
About 15 customers spoke at the meeting, all concerned about the impact of an increase in power bills during tough economic times. Many also commented on PUD salaries.
PUD commissioners listened to the comments but took no action. Riazzi asked them to discuss the surcharge recommendation at next week’s board meeting and to make a decision on April 27.
“This isn’t easy for any of us,” said commission President Ann Congdon. “It’s something we all hoped we could avoid.”
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The next regular commission meeting is at 11 a.m. on Monday, April 20, 2009, in the PUD boardroom at 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.
Kimberlee Craig
Public Information Officer
509-661-4320, direct line
509-679-6858, cell
kimberlee.craig@chelanpud.org