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Commissioners hear more comments on surcharge proposal

Chelan County PUD
News Release
4/20/2009

PUD commissioners Monday listened to comments from 21 customer-owners, all who objected to the 18-percent electric rate surcharge recommended last week by General Manager Rich Riazzi.

Riazzi recommended the across-the-board surcharge for residential, commercial and industrial customers as part of a balanced approach to meeting the expected $19 million shortfall the PUD is facing for 2009. Revenue forecasts have declined steadily since last fall when the budget was written due to below-average snowpack, low prices in the wholesale energy market and declining interest income.

Commissioners took no action Monday and are expected to continue the surcharge discussion at next week’s meeting. Riazzi has asked for a decision on April 27 in order to put a possible surcharge into effect May 1, if approved.

Before opening the meeting to public comments, each commissioner spoke briefly noting the many comments about the surcharge they have already received.

Commissioner Dennis Bolz said he couldn’t support the surcharge recommendation because of the lack of community support, suggesting the board consider using cash reserves.

Commissioner Randy Smith said he’d like to consider an alternative to the surcharge, perhaps a smaller, but permanent electric rate increase.

Riazzi briefly recapped the financial issues which led to his recommendation and also cautioned that PUD finances will likely to be tight at least through 2011.

The PUD has cut about $27 million in capital and operations and maintenance spending for 2009. Riazzi also addressed customer concerns about pay raises given to salaried employees.

He said the PUD has cut the equivalent of 23 full-time positions since 2007. Cost-saving steps this year include requiring all employees to take five days off without pay and offering two voluntary programs to reduce staff; either by employees proposing to eliminate their jobs in exchange for a year’s salary or moving to part-time work. Hours for seasonal employees have also been cut.

Randy Stedman, Human Resources executive manager, said those steps and others are expected to save at least as much as a wage freeze.

Added Riazzi, “We have not taken wage freezes off the table as we start (financial) contingency planning for 2010 and 2011.”

In other business, commissioners:

• Approved a change in PUD park policies to accommodate requests for nonprofit fund-raising that occasionally involve serving alcohol and to accommodate occasional requests for overnight camping in connection with park events such as the annual dog show at Walla Walla Point Park.

***

Commissioners recessed the meeting and reconvened at 5:30 p.m. in East Wenatchee for a meeting of Mid-C PUD managers and commissioners. 

The next regular commission meeting is at 11 a.m. on Monday, April 27, 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