Your PUD
News Release
Chelan County PUD financial update shows same year-end losses
Chelan County PUD
News Release
8/10/2009
In spite of cutbacks in large projects, days off without pay and a temporary electric rate surcharge, Chelan County PUD commissioners were told Monday that the PUD still expects a loss of $18 million to $20 million by year end. The loss in Utility Services net assets had been forecast previously in that range.
John Janney, chief financial officer and chief risk officer, presented his quarterly update to commissioners and explained where things stand. He said all contingency planning steps taken so far are designed to help get the PUD on sound financial footing for 2012 and beyond.
Despite global financial conditions that are affecting most utilities and businesses, the PUD remains among the most reliable and most affordable electricity providers in the nation, said Janney. As part of contingency plans developed once the worldwide financial downslide became apparent, Janney reminded the board that the PUD has trimmed about $19 million from capital projects this year and reduced basic operations and maintenance by about $8 million, including five-day furloughs without pay for all employees, wage freezes for salaried workers and staff reductions through voluntary employee departures.
Unfortunately, net wholesale revenue has continued to decline due to low market power prices and low water supply for generating power. Janney said under expected conditions, the PUD could see losses of $18-$20 million this year, $14 million in 2010 and $7 million in 2011. Adequate cash reserves are available under expected conditions, but could be stressed if low-water and low-prices continue or if other unexpected events occur.
Commissioner Norm Gutzwiler called it “a sobering report,” but all commissioners thanked staff for the comprehensive look at ongoing finances.
In other action:
- Commissioners reviewed the status of spending on all District capital projects.
- Commissioner Ann Congdon announced that she and her husband, contractor Tom Allen, are paying $1,177.10 back to the District for compensation Allen’s construction firm received in September 2008 that inadvertently exceeded the $1,500 monthly limit prescribed by state law because Congdon is a PUD commissioner. She also said her husband’s firm would not do work for the PUD in the future.
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The next regular commission meeting is at 1 p.m. on Monday, Aug. 17, 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