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Power sales contract approved by FERC

Chelan County PUD
News Release
4/3/2006

Chelan County PUD commissioners Monday received word that the Federal Energy Regulatory Commission (FERC) approved the new Puget Sound Energy (PSE) power sales contract with the PUD on March 28, saying the contract is in the best interest of the public.

With that approval, PSE must pay $89 million to Chelan County PUD by April 27.

Commissioners plan to set aside portions of upcoming regular business meetings to ask for public input on how best to use the $89 million.

The 20-year agreement, which allocates to PSE 25 percent of the power output from Rocky Reach and Rock Island dams through 2031 in exchange for paying 25 percent of the costs, maintains local control for the PUD and provides long-term financial stability.

Click here to read the FERC order.

In other business, commissioners:

• Authorized the chief financial officer to enter an interest-rate swap on some of the PUD’s bonds, which total $956 million. A swap allows the PUD to refinance or issue debt at a variable rate that is then swapped to fixed interest payments for the life of the debt, obtaining lower interest costs on the debt. Commissioners approved the refinancing of bonds not to exceed $140 million. Savings from the transaction, which would take place after March 2008, could range from $12.6 to $28 million. Commissioners approved a policy allowing swaps in May 2005. Finance staff also updated commissioners on their last swap transaction, which was approved in August 2005. The $94 million swap, which refinanced some 1996 and 1997 bonds, is expected to save the PUD over $16 million. 

***

PUD commissioners will meet in executive session at 7:30 a.m., Monday, April 10, at 1225 N. Wenatchee Ave. to evaluate the qualifications of an applicant for public employment. The regular business meeting will start at 10:30 a.m. in the boardroom of the PUD Headquarters Building, 327 N. Wenatchee Ave.

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