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Response to Rocky Reach relicensing proposal reviewed

Chelan County PUD
News Release
9/12/2005

Relicensing staff reviewed the response from the Federal Energy Regulatory Commission to proposed measures for a new long-term license for Rocky Reach Dam.

The District has proposed spending about $395 million on mitigation measures to relicense the dam – about half for ongoing costs and the balance for new measures over 50 years. The draft package, developed with community members and agency representatives, was submitted to federal officials in June 2004. The PUD received the draft response from FERC on Aug. 31.

Gregg Carrington, hydro services director, said all but about 3 percent of the spending was endorsed, including measures related to the PUD’s landmark Habitat Conservation Plan for fish protection. However, two recreation measures and six wildlife proposals weren’t included in the FERC draft response.

Carrington reviewed those with PUD commissioners Monday and said he’d be back on Sept. 26 to ask for continued board approval of those measures and for volunteers from the PUD commission to meet with FERC staff in Washington, D.C., on Oct. 18.

Three community members who helped develop the recreation measures emphasized their support for a new Recreation Enhancement Fund for community parks, wildlife, recreation and environmental access and education programs and for building community ball fields for Entiat. Bob Parlette, Jon Eberle and Randy Hein urged PUD commissioners to do what was necessary to win FERC approval for the proposals.

Bill Stokes, a ratepayer, countered that making electricity, not parks, is the PUD’s primary focus and the District shouldn’t take on projects that add to its debt.

2006 budgets for fiber and power management previewed
Continuing a series of presentations on elements of the PUD’s 2006 budget,   Power Management and Fiber Optics staff outlined plans and forecasts for the coming year.

Randy Lowe, Power Management director, recapped this year’s unusual weather, which initially led to lower-than-expected wholesale power sales revenue forecasts. But with late rains and high oil and natural gas prices, it now appears the District will end the year with $4 million to $8 million more than the $40 million budgeted.

Weather, snowpack, Alcoa’s aluminum production plans and future energy costs are all part of the forecast, which is difficult to make before the Oct. 1 budget deadline, Lowe said. Early estimates are for nearly normal water supply, with average energy costs of about $58 a megawatt resulting in projected wholesale power sales revenue of about $53 million for 2006.

John Smith, Networks director, said 2005 construction goals have already been met and plans are to ask PUD commissioners for additional funds in 2005 to reach a total of 11,600 homes and businesses. About 2,600 people receive Internet and telephone services from private firms over the PUD network, and about 3,000 are forecast by year’s end. Television from two firms is expected to be available soon.

Plans for 2006 call for reaching another 6,400 locations, connections for service through private firms by another 2,000 users and revenue of $3.3 million. That would require $11.4 million in capital spending and $2.8 million for operation and maintenance.

The 2006 budget request supports the goal of reaching 75 percent of the county with the fiber network by 2008 and all but the most remote sites by 2012, Smith said.

Chris Ericksen, Leavenworth, told commissioners he was concerned about the risks involved with PUD’s fiber network. Demetri Mandelis of LocalTel said he wants to see more redundant routes for reliability; the PUD add after-hours support and is concerned that the PUD commission may change the program.   

In other business, commissioners:

• Approved proposed bylaw changes for NOANet (Northwest Open Access Network) that are designed to attract new members and funding. Chelan County PUD was a founding member and holds a 10.2 percent share in the group, which uses Bonneville Power Administration fiber-optic lines to provide wholesale broadband access to rural areas. PUD Commissioner Ann Congdon voted for the changes, but expressed concern about the governance structure of the organization, which only has one PUD commissioner on its seven-member board. Commissioner Werner Janssen voted no on the changes, saying concerns about governance required sending a stronger message to the organization. A letter with those concerns was sent to NOANet board President Bill Dobbins, also Douglas PUD manager, last week. Jack Winter, Distribution assistant general manager and PUD NOANet representative, said he would continue to discuss those concerns with other members. 
• Heard that the PUD’s electrical safety demonstration trailer received a first-place ribbon at last week’s Chelan County Fair. PUD linemen showed audiences what not to do with electricity at several shows a day during the four-day fair. The trailer was built by PUD linemen, wiremen and fleet technicians and is available for shows at community events. 

*** 

The Sept. 19 meeting has been canceled due to the lack of a quorum. The next regular meeting of the PUD Board of Commissioners is at 10 a.m. on Monday, Sept. 26 in the 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.

Kimberlee Craig
Public Information Officer
661-4320, direct line
679-6858, cell
kimc@chelanpud.org