Your PUD

Financial Contingency Planning

As economic conditions took a turn for the worse in 2008, Chelan County PUD approached the rapidly changing situation by developing a series of contingency plans as the 2009 budget was written and then put in place.

Revenue forecasts continued to decline through the first quarter of 2009 and the District cut $27 million from its capital and operating budgets in response to below-average snowpack, low prices in the wholesale energy market and declining interest income. A temporary electric rate surcharge was included in the plans as a potential step if other actions failed to close the financial gap.

On April 13, General Manager Rich Riazzi recommended to PUD commissioners a one-year electric rate surcharge of 18 percent as the next step in contingency planning to keep Chelan County PUD financially healthy. Riazzi proposed:

The surcharge be applied across the board for residential, commercial and industrial customers.
The surcharge be effective May 1, 2009
PUD commissioners delay putting new restructured electric rates approved last year into effect until the surcharge expires.
The discount for low-income senior and disabled customers be increased by the same percentage as the surcharge if it is approved.

ACTION: Commissioners approved a 9-percent surharge effective May 1, 2009, for up to one year. The discount for low-income senior and disabled customers was also increased by 9 percent. Implementation of a new electric rate design was delayed until the surcharge is removed.

For questions about how the surcharge will affect your electric bill, call PUD Customer Service at (509) 661-8002 or e-mail customerhelp@chelanpud.org.

General manager's message

FAQs on a surcharge

Meetings

May 11 commission meeting