Your PUD News Release

Fitch upgrades Chelan County PUD rating:

Chelan County PUD
News Release
10/27/2008

Fitch Ratings has increased its bond rating for Chelan County PUD to AA+ from AA. Treasurer Debbie Litchfield reported the upgrade to commissioners at the Monday meeting saying the rating increase could translate to lower borrowing costs for the District.

A report from Fitch said the upgrade “reflects steady strengthening of financial metrics over the past five years, very low cost hydroelectric power resources, among the lowest retail electric rates both regionally and nationally, and ample cash reserves.” They also noted strategic planning and establishing solid liquidity targets as positive developments. The report is available on the Finance page of the utility’s Web site at chelanpud.org. 

Litchfield also reported that Moody’s Investors Service has reaffirmed the District’s Aa2 rating, and Standard and Poor’s reaffirmed the AA Stable rating. 

District plans to issue bonds and notes

Litchfield said plans are proceeding to issue bonds and/or notes to fund capital projects. Parallel plans for District financing have been developed and the best plans will be implemented depending on the rapidly changing financial landscape.

Up to $55 million in tax exempt notes could be issued as early as Tuesday, Oct. 28. Those notes would likely have a five-year maturity. Approximately $35 million in taxable bonds for the Rock Island modernization project could be sold in November if market conditions are favorable.

General Manager Rich Riazzi noted the utility’s strong financial position and said contingency planning is an ongoing part of managing current conditions and maintaining that healthy position.
 
In other business, commissioners:

• Approved a final resolution establishing new rates for the District’s electric, water and wastewater services. The resolution ratified a motion adopted by the Board Oct. 20 and completed a months-long process of rate design and public hearings.
• Approved two field work orders for Rock Island Powerhouse 1 generator modernization that will total $1.5 million. The work orders will improve four units that will be modernized between now and 2014.

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The next regular meeting of the PUD commission will begin at 9 a.m. on Monday, Nov. 3, 2008, in the boardroom at PUD headquarters, 327. N. Wenatchee Ave. Presentation of a preliminary budget is scheduled for 10 a.m.

Most PUD commission meetings are recorded, and a link to the audio is available on the PUD’s home page at http://www.chelanpud.org.

Jeri Freimuth
Chelan County PUD
(509) 661-4504
(509) 668-0267 cell
Jeri.freimuth@chelanpud.org