Your PUD
News Release
PUD finishes year in good financial shape
Chelan County PUD
News Release
2/4/2008
More water than forecast and higher wholesale prices at key times helped Chelan County PUD finish 2007 in a stronger financial position with a change in net assets of about $31 million.
Wholesale power sales revenue was a record $63.9 million for 2007, Randy Lowe, Energy Resources executive manager, told PUD commissioners Monday. Early forecasts for 2008 Columbia River runoff are near normal.
In addition, spending on some major construction projects was deferred, and retail sales of electricity were slightly higher than forecast. All that contributed to the District finishing the year with higher net assets, compared with an initial budget forecast of dropping by about $10 million. Net assets for the customer-owned PUD are a measure of financial performance.
Chief Financial Officer Joe Jarvis said the 2007 results will help the PUD stay on the financial track set by PUD commissioners following a series of community strategic planning meetings. The goal is to decrease the gap between utility expenses and revenues that is now filled by volatile wholesale revenue. Jarvis said the likelihood of a rate surcharge for 2008 is low.
He added, however, that the PUD will still need to consider rate increases for 2009-2011 as laid out in its financial strategy and will need to operate more efficiently, limit growth in operating and maintenance costs and keep a close eye on debt.
In other business, commissioners:
- Began consideration of the PUD’s involvement in community projects. Jeff Smith, community and intergovernmental affairs manager, and General Counsel Carol Wardell provided background and listed some of the local economic impact of District operations including its payroll, spending on parks, environmental stewardship and the fiber-optic network. Staff will return with more information and options for board discussion in early March, Smith said.
- Heard an update on the state Legislature, which is about one-third through its 60-day session in Olympia, from Suzanne Grassell of the PUD’s External Affairs Division.
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The next meeting of the PUD commission will begin at 10 a.m. on Feb. 11 in boardroom at PUD Headquarters, 327 N. Wenatchee Ave., with an executive session to continue review of a public employee. Commissioners will meet in regular session at 11 a.m. and resume after lunch at 1 p.m.
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
509-661-4320, direct line
509-679-6858, cell
kimberlee.craig@chelanpud.org