Your PUD News Release

PUD moves forward on plan to stabilize revenue, reduce risk

Chelan County PUD
News Release
3/22/2010

PUD commissioners this week announced their intent to consider a plan to sell “slices” of hydropower from the PUD’s Columbia River dams at market rates with contracts that could stretch out as long as five years. Longer-term sales at market rates are expected to bring in more reliable wholesale power revenues and reduce year-to-year fluctuations, helping to hold down rates for PUD customer-owners.

Formal consideration of a resolution to authorize the general manager to use the expanded wholesale sales approach won’t come until the next board meeting April 5 since at least 10 days’ public notice is required for actions related to power sales contracts.

As explained by Chief Finance Officer/Chief Risk Officer John Janney last week, the five-year contracts would sell surplus power on a staggered basis so only a portion of the PUD’s surplus sales would expire in any one year, thereby smoothing out the impact of price changes over time. As one sale expires, it could be replaced by a new one, extending the predictable revenue up to five more years.

The “slice” contracts mean purchasers get a percentage of the output from PUD dams, rather than buying a fixed number of megawatt hours. In return, the PUD receives a predictable, fixed payment regardless of stream flows or future power prices.

In other action, PUD commissioners:

• Continued to discuss PUD policy related to allowing future private docks on the small amount of PUD-owned property at Lake Chelan and around the Rocky Reach Dam reservoir. The PUD has temporarily suspended consideration of further dock permits, and the issue will be reviewed on April 12 after Commissioner Ann Congdon gathers more background on whether a change in PUD policy should be considered. Docks on private land would not be affected. The PUD owns less than 7 percent of the land around Rocky Reach (other than parks) and even less at Lake Chelan.
• Heard from Operations Executive Manager Joe Jarvis that the PUD is applying for approximately $35 million in federal stimulus funding that would enable the PUD to extend its wholesale fiber-optics network to 98 percent of the county in the next three years, specifically underserved rural areas. The application is due March 29.
•  Agreed that a new series of evening meetings in various regions of Chelan County would be a good way to hear from the public and replace the customer partnership group (CPG) luncheon meetings that have been held for the past several years. Commissioners agreed to set time aside before each meeting for individual customer-owners to talk with commissioners and staff one-on-one. A schedule will be announced.

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A special meeting of the Chelan County PUD Commission is scheduled at 1:30 p.m. Tuesday, March 23, at the Confluence Technology Center for the purpose of continuing ongoing collaborative meetings with commissioners from Chelan County and commissioners from the Port of Chelan County. Participants discuss issues of common interest.

The next regular PUD commission meeting is at 1 p.m. on Monday, April 5, 2010, in the PUD boardroom at 327 N. Wenatchee Ave. The meeting March 29 has been canceled.

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

Steve Lachowicz
Communications director
509-661-4639, direct line
509-679-0148, cell
steve.lachowicz@chelanpud.org