Your PUD
News Release
Commissioners reschedule employee evaluations
Chelan County PUD
News Release
8/1/2005
After conferring with a local attorney Monday on what can be said publicly regarding an employee evaluation, commissioners rescheduled an evaluation of PUD General Manager Charlie Hosken for Wednesday, to follow a one-hour public session at 8 a.m. to discuss the evaluation process.
Evaluation of General Counsel Carol Wardell will be conducted later.
Last week, the planned evaluations, which were to take place in executive session, were canceled when Commissioner Werner Janssen did not attend the meeting. The PUD commission’s governance policy requires all five commissioners to take part in evaluations.
PUD financial forecast strong, for now
Commissioners received a quarterly financial update from Chief Financial Officer Joe Jarvis. Jarvis reported that while retail and surplus energy sales are forecasted to steadily rise, the PUD must be ready for low-water years or other revenue challenges.
Budgets have been held down in recent years, but Jarvis warned that deferring projects will postpone expenses, not alleviate them.
He also advised commissioners that if revenues do not increase, cash reserves could fall below the commission’s minimum of $50 million by 2011, and the PUD’s bond rating could be impacted.
Jarvis repeated his message from earlier this year that small, yearly inflationary rate increases would be less of a burden on customer-owners than large increases later. “The longer the wait, the higher the costs,” said Jarvis.
If Chelan County PUD added a 2.5-percent increase each year, in 2011 the county’s rates would still be less than today’s electric rates at other PUDs, about 3.5 cents per kwh.
In other business, commissioners:
- Authorized the chief financial officer to enter an interest-rate swap, a type of derivative transaction authorized by state statute that 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. Commissioners had approved a policy allowing swaps on May 31. To conduct the swap, commissioners also approved the refinancing of some 1996 and 1997 bonds, not to exceed $110 million. Savings from the transaction, which would take place in July 2007, could be about $13 million.
- Authorized an agreement with the city of Cashmere to conduct a study evaluating a transfer of the city’s electrical system. Results of the study are expected in October and a community meeting is scheduled for Aug. 17 in Cashmere.
- Authorized an agreement with the Chelan County Port District and Chelan County to conduct a study on a Monitor water system. Monitor Community Council members attended the July 11 commission meeting to encourage the PUD to look at future water improvements in the Monitor area, which has problems with water quality and quantity. A community meeting is set for Aug. 23.
- Met with John McQuaig from McQuaig & Welk to discuss possible future work on the board’s governance policy. A decision on the proposal is expected in the next few weeks.
***
Commissioners adjourned to reconvene at 8 a.m. on Wednesday, Aug. 3, to discuss their employee evaluation procedure. An executive session will follow to evaluate an employee.
The next regular meeting of the PUD commission will start at 1 p.m. on Monday, Aug. 8, in the boardroom of the 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 Specialist
509.661.4258
509.421.4258, cell
christin@chelanpud.org