Your PUD PUD News Line

2/21/2007

Runoff forecasts improve; electric rate surcharge postponed

PUD commissioners decided Feb. 12 they will wait until April to determine if an electric rate surcharge will be needed this year. They accepted a recommendation by PUD staff to wait, based on improving water supply forecasts and higher wholesale power prices.

“The B.C. (British Columbia) snowpack is wonderful. It will be our saving grace this year,” said Gary Donabauer, power resource engineer.

The forecast for Columbia River runoff is 99 percent of average. The Feb. 1 runoff forecast for the Lake Chelan basin is 116 of normal, plus the lake is four feet higher than normal for this time of year.

Commissioners continued the hearing on the possible surcharge until April 9, which would push back a decision until April 16, to be effective May 1.

General Manager Rich Riazzi asked commissioners last November to let staff consider a possible electric rate surcharge as a contingency in the face of low water supply forecasts and a drop in wholesale power prices.

Welcome back, Ciscoe

The PUD and the East Wenatchee Water District will host Ciscoe Morris and Meeghan Black, co-hosts of the popular “Gardening with Ciscoe” program on KING-5 TV, at the KPQ Home and Garden Show at 1 p.m. Sunday, March 11. Ciscoe will talk about gardening – including Xeriscape gardening – during a free program at the Performing Arts Center.

Local gardeners have packed the auditorium the last three years to hear Ciscoe’s entertaining presentation and get autographs.
Come early to grab a good seat.

Click here for more on water conservation.

Meeting set for March 5 to discuss increased hook-up fees

PUD commissioners will hold one public information meeting to discuss increased fees for new electric and water/wastewater service hook-ups. They set a special meeting for 5:30 p.m. on March 5 at the PUD Wenatchee Headquarters Auditorium. A formal board hearing on the increased fees will be held March 26.

Customer Service staff will also meet with local home builders on Feb. 27 to answer questions and explain the proposal.

Costs for the equipment and installation of electric meters and transformers, water meters and vaults, and wastewater tanks have increased over the years, and fees charged by the PUD have not kept pace. The new fees, if adopted, would bring in about $600,000 in additional revenue this year. If approved by commissioners, the new fees would go into effect May 1.

Click here to learn more.

PUD finances in line with 2006 budget

Chief Financial Officer Joe Jarvis reported to commissioners this week that spending and revenues in 2006 were in line. Preliminary results for 2006 show net assets increasing $17.8 million, $7.1 million over budget.

Jarvis reported that PUD cash reserves, with an April influx of $89 million related to a power sales contract with Puget Sound Energy, were $212.4 million at year’s end.

According to Jarvis, those reserves will face pressure in the next few years as it is proposed that all Utility Services capital projects will be funded with cash.

Power Management Director Randy Lowe reported that while the year was challenging, net wholesale power sales were strong in 2006 -- $57.2 million, a little less than $1 million under budget projections.

Click here to view the presentation.