Your PUD
News Release
Board approves new rate structure
Chelan County PUD
News Release
10/20/2008
Changes in rates intended to encourage power and water conservation and more closely align rates among different types of customers were approved Monday by Chelan County PUD commissioners. No changes will be made until April 1, 2009, after the heavy winter billing months.
Commissioners acted after holding a hearing on the new rates for electric, water and sewer service. No one from the community spoke.
The new electric rates are designed to encourage conservation by lowering the cost per kilowatt hour (kWh) slightly for residential customers using moderate amounts of power and charging the highest rates for power use that tops 3,000 kWh a month. For up to 70 percent of residential electric customers, monthly bills aren’t expected to change by more than a few dollars and may even go down, based on last year’s use.
If use stays the same, overall electric rate revenue will go up about 2.5 percent; with revenue from residential electric customers going up about 3.2 percent and commercial revenue by 1 percent. Water revenue would increase an estimated 6.9 percent and sewer revenue, 6.5 percent.
The changes are based on options developed during a cost-of-service study and a review of rates that began early this year following last year’s strategic planning sessions. The options are based on strategic principles set by PUD commissioners to ensure the District’s finances are solid through 2012 when existing wholesale power sales contracts expire.
PUD authorizes Cashmere electric system purchase
PUD commissioners brought a four-year effort to a close Monday by agreeing to purchase the 1,200- customer Cashmere electric system effective on Oct. 30. City Council members are expected to finalize the sale on Oct. 27.
Cashmere approached the PUD about buying the city’s electric system in 2004. The PUD has provided the city power through a wholesale contract for years and more recently has helped with emergency maintenance and repairs under a separate agreement.
“It’s a great story when we can pull something like this off and everyone becomes a winner,” said PUD Commissioner Norm Gutzwiler. “I’d like to say...welcome, Cashmere.”
Terry McCauley, Cashmere city attorney, thanked everyone involved in the long negotiations, especially the PUD’s project leader Jeff Smith, PUD attorney Karen Wiggum and city consultant Mike Babst.
“This is a win-win and it’s such fun to be in this situation,” McCauley said.
Under the final sale agreement, the PUD will acquire the system for about $3.1 million. About $500,000 of that will be held in reserve for six months, subject to “true-up” payment for items that may come up during the transition period, Wiggum said.
Included in the sale are three electric substations and 368 easements for power lines and equipment including about 14 miles of poles, wires, transformers and vaults.
Customer information will be transferred to the PUD as part of the sale. Cashmere customers will be welcomed to the Chelan County PUD system with advertisements and a packet to be mailed on Nov. 3.
PUD prepares to sell bonds
Commissioners Monday moved ahead with selling up to $122 million in long-term bonds to refinance debt and provide money to continue modernization of the first powerhouse at Rock Island Dam.
While financial markets remain uncertain, the PUD is preparing for the bond sale with the thought that conditions may stabilize by mid-November when a final decision would be made, Treasurer Debbie Litchfield said.
If selling long-term bonds isn’t viable, the PUD could use the authority granted by PUD commissioners on Oct. 14 to sell short-term notes (for six months to two years).
Financial staff is also analyzing other steps to make sure the PUD has the funds it needs to continue with large construction projects important for reliability and maintenance, General Manager Rich Riazzi noted.
In other business, commissioners:
- Approved a program to protect against identity theft in compliance with the federal Fair and Accurate Credit Transaction Act.
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PUD commissioners will meet with members of the Wenatchee Customer Partnership Group from noon to 1:30 p.m. on Wednesday at the Wenatchee Roaster, 201 N. Wenatchee Ave., Wenatchee.
The next regular commission meeting will begin at 11 a.m., Monday, Oct. 27, 2008, in the boardroom at PUD Headquarters, 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
509-661-4320, direct line
509-679-6858, cell
kimberlee.craig@chelanpud.org