Your PUD News Release
Estimated wholesale power revenues for 2009 show slight improvement
Chelan County PUD
News Release
12/1/2008
PUD commissioners Monday reviewed a proposed final 2009 budget that reflects a slight improvement in revenue compared to a week earlier. The estimated net revenue from the sale of wholesale power next year increased by approximately $1 million to $51 million.
Net wholesale power revenue for 2008 is expected to total about $47 million, down from $64 million in 2007.
T.J. Farrell, budget manager, told commissioners that Utility Services net assets are now predicted to drop about $2 million in 2009, an improvement from an expected drop of $3.1 million last week and $3.8 million a few weeks earlier. Change in net assets for the PUD is a financial measure similar to net income or loss for a private company.
If the PUD has a normal year for snowpack and power prices, there should be no need for an electric power surcharge to customers. If conditions do become unusually low, a surcharge could be around 11 percent.
The final budget includes total expenditures of $328 million including maintenance and operations and about $94 million in capital projects.
Kelly Boyd, director of strategic financial planning, said staff continues to work on contingency plans that will prepare the utility for the potentially volatile future.
“We are in a really strong and financially healthy place, and we want to do all our contingency plans so we can maintain that,” Boyd said.
Commissioners will be asked to approve the 2009 budget on Dec. 15.
New procedures adopted for LUDs
Commissioners approved new procedures for the formation of Local Utility Districts.
John Stoll, director of Customer Services, told commissioners the new procedures were developed keeping local control and flexibility at the forefront while meeting requirements of state statutes covering LUD formation.
The resolution clarifies the process commissioners will follow for handling LUD requests initiated by petition or by resolution.
Leavenworth office to close for lunch
Commissioners heard that, starting in early January, the Leavenworth PUD office will close between 11 a.m. and noon so the utility clerk there can have lunch. The office currently is open from 8 a.m. to 5 p.m. Monday through Friday.
Commissioners and staff emphasized the importance of the Upper Valley office to PUD operations.
***
The next regular meeting of the PUD commission will begin at 11 a.m. on Monday, Dec. 8, 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 http://www.chelanpud.org.
Jeri Freimuth
Chelan County PUD
(509) 661-4504
(509) 668-0267 cell
Jeri.freimuth@chelanpud.org