Your PUD
News Release
PUD to refinance debt
Chelan County PUD
News Release
6/22/2009
PUD commissioners Monday approved a series of steps to mitigate risk and potentially save on interest payments for about $30.5 million in debt that carries an interest rate of about 6 percent.
PUD Treasurer Debbie Litchfield said continued turmoil in the financial markets makes it hard to predict what the net interest rate will be on the transaction when it is priced on July 8. The goal is reduce interest-rate risk by issuing debt for up to five years.
The board approved issuing both five-year bonds and five-year notes to repay bonds from 1999. The notes will be offered to the public and sold to purchase the bonds, which will then be placed in a PUD trust to maintain bond insurance coverage.
Board members also gave General Manager Rich Riazzi and John Janney, chief financial officer, authority to enter into an interest rate swap reversal or end an interest rate swap for the transaction, depending on market conditions. The PUD may sell taxable or tax-exempt bonds and notes, with fixed or variable interest rates, again depending on changing conditions, Litchfield said.
“We’re monitoring the market every day to see which is the best way to go, and it is changing every day,” she said.
Electronic billing is on the horizon
PUD customers who opt for it could receive their electric, water and/or sewer bills by e-mail within six to nine months, John Stoll, Customer Service director, told commissioners on Monday.
Stoll said customers are asking for the option of electronic, or e-billing, service. It would offer significant savings for the District, up to $50,000 annually after four years (depending on how many customers use it). Using less ink and paper to print bills also fits District efforts to operate in a sustainable manner.
“It’s no longer viewed as a new technology,” said Stoll. “Now it’s more of a customer expectation. People are used to seeing it.”
The next step is to develop a request for proposal to evaluate which firms could provide bill printing, online bill viewing and payment and phone payments.
“I’m excited,” said Commissioner Randy Smith. “I think it’s a powerful step forward for us.”
In other business, commissioners:
- Recognized three long-time employees who are leaving the PUD under the “Double Yes” staff reductions. Janet Anderson, customer accounting supervisor, Deeda Christensen, senior computer support specialist, and Tom Huber, networks contract crew manager, have worked a combined 92 years for the PUD. “There’s nothing that we do that’s any more important than recognizing our longtime employees,” said PUD Commissioner Dennis Bolz. “Where your heart is and what your commitment has been is always appreciated by all of the customer-owners of Chelan County PUD.”
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The next regular PUD commission meeting is at 1 p.m. on Monday, June 29, in the PUD boardroom at 327 N. Wenatchee Ave.
Commissioners have canceled their July 6 meeting.
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