Your PUD PUD News Line

5/5/2009

PUD further tightens belt as board approves 9-percent surcharge

At the April 27 Chelan County PUD board meeting, management offered a wage reduction and salary freeze for the executive management team, and the PUD Board of Commissioners voted 4-1 to approve a temporary 9-percent electric rate surcharge effective May 1 for up to 12 months.

The cost-savings measures and rate surcharge are aimed at reducing a projected 2009 deficit of $19 million, and the balance will be covered by PUD reserves.

These actions follow several previous rounds of PUD cost-cutting, amounting to $27 million in savings, which were not enough to offset a steep decline in revenues from the wholesale sales of the PUD’s hydropower.

All together, the PUD is cutting $2.5 million in wages.

The majority of the projected $19 million loss is due to lower prices for energy sold in the wholesale market and low snowpack. Projected runff at Grand Coulee is 88 percent of average, and runoff at Lake Chelan is forecast at 75 percent of average. Lower interest rates on the PUD’s cash reserves also contributed to the deficit.

Learn more.

The PUD Parks program will see spending cuts that will require reductions in parks maintenance through this year and possibly beyond, depending on future budgets.

Restrooms will open at 8 a.m. instead of 6:30 a.m. and close at dusk. Lawns won’t be mowed as often nor fertilized as often. Recreation sports leagues and special event hosts will be responsible for more of their own site preparation and equipment. For example, PUD staff won’t replace bases or do field maintenance between softball games as they have in the past. Lights will be turned off at 10:30 p.m. Fewer flowers will be planted.

Steve Currit, director of Shared Services, explained that about $425,000 has been trimmed from the Parks operating budget this year, representing about four seasonal employees. Another $1.7 million for 2009 capital improvements was scaled back to about $150,000.

As part of doing business in a cost-efficient and sustainable manner, we are printing copies of the 2008 Annual Report by request only. View the report online or request a print copy.

Chelan County PUD will hold a public auction of surplus vehicles, equipment and office furniture starting at 10:30 a.m. on May 14 at Rocky Reach Dam. Learn more.

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