Your PUD News Release
PUD commissioners approve 2009 budget
Chelan County PUD
News Release
12/15/2008
PUD commissioners Monday approved a $329 million operations and capital budget for 2009 after receiving assurance that managers will keep a close eye on spending throughout the year.
General Manager Rich Riazzi noted many changes due to the rapidly changing financial situation since budget work started in August.
“We were chasing a receding revenue stream and adjusting the budget accordingly,” Riazzi said.
Kelly Boyd, strategic financial planning director, said the finance team has a series of contingency plans so the District can react quickly if necessary as the year goes on.
One is for handling the possible impact of lower wholesale power revenue, budgeted at $51.4 million. Price and quantity may be down.
Early forecasts are for runoff in the Lake Chelan Basin of 80-85 percent of normal, even if there is average precipitation for the rest of the winter, she said.
While in the budget, some projects are on hold until later in the year when more will be known about water supply and power prices.
“Early indications are we want to proceed with caution,” Boyd said.
The 2009 budget puts controllable operations and maintenance spending at $150.5 million, and it includes a portion of an overall increase of 2.5 percent in electric revenues, 6.9 percent for water revenue and 6.5 percent for sewer, based on a new rate structure effective in April. No electric rate surcharge is planned at this point.
Other steps, including slowing construction of the fiber-optic network, could be taken before a surcharge is considered, she said.
“A surcharge is one of our tools, but it’s not anyone’s first choice,” Boyd said in response to commissioner questions.
Utility Services net assets are expected to decline by about $2 million. Change in net assets for the PUD is a financial measure similar to net income or loss for a private company.
Capital spending was increased by $1.6 million after the PUD confirmed that projects by the city of Wenatchee and state Department of Transportation will require the PUD to move power and fiber lines in 2009. The PUD will be reimbursed about $1 million for work for the city’s new Riverside Drive along the Columbia riverfront.
In other business, commissioners:
- Honored PUD Commissioner Werner Janssen for his four years of service, noting his commitment to recycling and alternative energy. Carnan Bergren of Peshastin will take Janssen’s commission seat in January.
- Set a special meeting for 5:30 p.m. on Jan. 26, 2009, in the PUD Auditorium in Wenatchee to update customer-owners on the PUD’s financial situation, including wholesale power prices, snowpack and early runoff forecasts. It is the first of what may be monthly reports from Riazzi to the community on PUD finances.
- Heard from General Counsel Carol Wardell that procedures for public record request are now posted on the District’s Web site along with the electronic form for making requests.
- Approved the 2009 contract for security guards with Merchant Patrol Security of Wenatchee for $575,000, a $200,000 reduction from 2008. Deputy Security Director Bill Larson said technology made the savings possible as more locations can be monitored from PUD Headquarters and System Operations.
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Commissioners canceled the Dec. 22 and the Dec. 29 board meetings.
The next regular commission meeting is at 11 a.m. on Monday, Jan. 5, 2009, in the boardroom at 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