2008: A year for reliability, resources and responsibility

By Rich Riazzi, General Manager

1/3/2008

Climate change is likely to be an area that requires a great deal of attention this year from all utilities. State and federal regulations are changing how we approach our “carbon footprint,” and hydropower-based utilities such as Chelan County PUD are working hard to demonstrate how our clean, renewable resource should be appreciated in the battle to reduce greenhouse gases.

As the governor’s Climate Advisory Team (of which I am a member) presents its recommendations early in the year, most of us in the energy world will be looking for efficient, affordable and technologically sound ways to move in the right direction. As Congress wrestles with the same issues in a presidential election year, the focus will intensify.

Here at the PUD we have major projects under way to refurbish our hydropower dams so they can provide power reliably for another 40-50 years. Work is well along on the first of the old turbine-generator units at Rock Island Dam, and we expect to proceed with the rest of the units in the first powerhouse over the next six years. Our Lake Chelan powerhouse will also be getting new generators in the next few years. Part of the good news – besides improving the reliability of these units for the long term – is that getting more power from the same amount of water is being valued by carbon-offset markets and should earn the PUD additional revenues to help fund additional environmentally responsible programs.

In light of major power outages faced by the nation and the region the past several years, this PUD will be working to make sure all our procedures and our programs meet strict new reliability standards. We are already well on our way to meeting requirements raised in audits by the regulating agencies during 2007.

We are putting the finishing touches on a new transmission line, transformer and related switchyard equipment for a second connection from Rocky Reach Dam to the Andrew York Switchyard at Monitor. A new transmission line is also in the works for the Entiat Valley.

We are keeping our own financial house in tight order by trimming the overall number of PUD employees and adding necessary positions in areas where new work is being required. Our overall operation and maintenance spending is slowing its historic rate of climb.

As with every year, there are certain to be unexpected challenges. I believe we are getting closer to having the perfect team in place to handle whatever comes our way. We are watching risks carefully, and we are protecting our valuable assets. Feel free to contact me at any time if you have questions about our energy future.