Your PUD
News Release
Commissioners authorize new PUD bonds for work in the next three years
Chelan County PUD
News Release
7/13/2009
Chelan County PUD commissioners heard Monday that the time is right to issue $71 million in new debt for work at Rocky Reach, Rock Island and Lake Chelan hydro projects over the next three years. They were also reassured by the latest report from Fitch Ratings that reaffirms the PUD’s creditworthy status at the same high AA+ level assigned by Fitch last year.
Commissioners approved resolutions authorizing the PUD financial staff to issue bonds for an estimated $18 million worth of work at Rocky Reach, about $16 million at Rock Island and about $37 million at Lake Chelan. The bonds are expected to be priced on July 29. Much of the work to be done at Rocky Reach and Rock Island will be for environmental enhancements.
In a separate resolution, commissioners approved changes in the modernization schedule at the Lake Chelan Project that will remove the second turbine/generator from service beginning in December this year and have it back in service by the end of April next year. The change will cost more right now, but it is expected to benefit the PUD in the long run by having the more efficient power unit available earlier to generate more power from the same amount of water. Work on modernizing the first turbine/generator and related systems is being completed this year.
In its ratings report issued July 2, Fitch Ratings said of the PUD: “Chelan’s AA+ rating is supported by very low cost hydroelectric power resources, among the lowest retail electric rates regionally and nationally, ample distribution system cash reserves, and continued modest retail load growth despite economic downturn.”
However, the report also said the potential for depleting cash reserves over the next several years is a credit concern. “The district’s Stable Rating Outlook reflects Fitch’s belief that the Board will take appropriate rate actions to maintain the financial strength of the distribution system during this likely 2-3 year period of financial challenges for the district,” said the report.
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The next regular commission meeting is at 1 p.m. on Monday, July 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.
Steve Lachowicz
Communications director
509-661-4639, direct line
509-679-0148, cell
steve.lachowicz@chelanpud.org