• Customer Services
• Your PUD
  • Mission and Vision
  • Public Records Requests
  • Fast Facts
  • Governance
  • News
  • Finance
  • Licensing and Compliance
  • Facilities
  • Utility Services
  • Mid-C Services
  • Contact Us
• Environmental Stewardship
• Learning Center
• Parks and Recreation
• Working At The PUD
• Vendors and Contractors
• En español

SEARCH

PUD finances in line with 2006 budget

Chelan County PUD
News Release
5/8/2006

Diane Cooper, accounting director, reported to commissioners Monday that spending and revenues were in line with the 2006 budget after the first three months of the year.

Power Management Director Randy Lowe reported that wholesale power sales were $14.7 million as of March 31, $3 million ahead of budget projections. Lowe warned, however, that power prices have been lower recently and remain volatile, as do other energy sources including crude oil and natural gas. The 2006 budget forecasts $58 million in wholesale revenues for the year.

Cooper reported that PUD cash reserves were $116 million as of March 31. In April, Puget Sound Energy provided an $89 million capacity reservation payment related to their post-2011 power sales contract with the PUD.

In other business, commissioners:

• Modified a number of rates charged to service providers for access to the PUD’s wholesale fiber-optic network, based on discussions with the service providers. Staff also reported increased interest in television services over the fiber network, with service providers reporting approximately 125 new television customers each month.
• Heard that PUD staff has applied for up to $18 million in tax-credit, clean renewable energy bonds (CREBs) from the U.S. Treasury. The CREBs, if awarded, would be used to pay for some capital efficiency enhancements at Rocky Reach, Rock Island and Lake Chelan hydro projects, as well as the PUD’s generating unit at Stehekin. Compared to similar bonds issued at 5 percent over 15 years, the PUD could save up to $7.8 million in interest costs.
• Heard from Chief Financial Officer Joe Jarvis that the entire $69.5 million in debt that has been issued for the PUD’s fiber-optics buildout so far has come through taxable financing methods to avoid questions about whether tax-free or taxable status is appropriate for the financing. Approximately $41 million in debt has come through taxable bond issues at fixed and at variable rates. Another $28.5 million has come via internal loans with repayment rates matching those of taxable borrowing. The maximum debt anticipated for the fiber-optics project is $90 million. 

***

Commissioners will hold their next regular business meeting at 1 p.m. on May 15, in the PUD’s Rocky Reach Visitor Center theater, seven miles north of Wenatchee.

Most PUD commission meetings are recorded, and a link to the audio is available on the PUD’s Web site, www.chelanpud.org.

Christy Shearer
Communications Audio-visual Specialist
(509) 661-4258
(509) 421-4258 cell
christy.shearer@chelanpud.org