Your PUD News Release

PUD’s second strategic planning meeting looks at trends, past and future

Chelan County PUD
News Release
11/20/2006

General Manager Rich Riazzi provided a detailed look at PUD financial trends for about 120 people who attended Monday’s community strategic planning meeting, saying commissioners will have to consider new ways of paying for services in the future.

The meeting was the second in a series hosted by PUD commissioners to develop guiding principles for the future direction of Chelan County PUD.

Riazzi covered information on financial trends, from 10 years back to forecasts five years head, provided a look at factors driving those trends and offered preliminary thoughts on financial targets PUD commissioners may want to set for the future.

Setting those targets and deciding on the actions needed to achieve them will be the topic of the next community strategic planning meeting in February.

Part of Monday's meeting was a decade-by-decade review of the PUD’s history and service philosophy.

Following up on the first meeting in August, Riazzi discussed what’s caused a gap between costs to provide electric, water, sewer and fiber-optic services and what the PUD charges for those services.

Wholesale power sales revenue has been used to cover the gap. Information presented Monday showed how load growth, a volatile water supply, upgrades needed for aging equipment, new regulations and dam license requirements will make it difficult to continue to cover costs in the future.

“There is a gap, which will necessitate some change in how we do business,” Riazzi said. “The model wasn’t bad, but we’re growing at a rapid rate and starting to use up that bucket of dollars that has been used to keep our rates low.”

He said the PUD has always faced financial risks but added that it is time to take a closer look and set financial targets to monitor that risk.

Public comment ranged from concern about line extension policies to terms for future power sales contracts.

Riazzi encouraged PUD customers who want to comment about a possible electric surcharge in 2007 to attend the Nov. 27 commission meeting, when the contingency plan for facing the financial impact of a low water supply forecast will be discussed again.

A recording of Monday’s meeting is available on the PUD Web site, www.chelanpud.org, along with the slide presentation. A recording and slides from the Aug. 23 meeting are also posted on the PUD’s Web site.

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The next regular meeting of the PUD commission is at 1 p.m. on Monday, Nov. 27, 2006, 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