Your PUD News Release
PUD commissioners hear financial report on fiber system; get survey results
Chelan County PUD
News Release
8/23/2010
According to a telephone survey done Aug. 7-12, about 64 percent of registered voters in Chelan County favor accepting a federal grant of $25 million to finish extending the PUD’s wholesale fiber-optics network even if it would cost about $1.50 a month in electric rate increases for all PUD customers.
PUD commissioners heard the results of the survey Monday afternoon from Don McDonough of DMA Associates, Seattle, the firm hired to do a telephone survey of 450 registered voters about their preferences concerning a $25 million grant from the Rural Utilities Service that would help the PUD extend its fiber network to about 98 percent of the county. The system presently gives about 85 percent of county customers access to service if they choose to sign up with one of many private service providers for Internet, television or telephone services. Accepting the grant would require Chelan County PUD to match an estimated $8.3 million of its own to finish the build-out over the next three years.
The PUD has faced two financially stressed years with low water supply, low revenues from surplus power sales and low interest income on its investment portfolio. Spending cuts of more than $27 million have already been made, still leaving a decline of about $15 million in net assets in 2009 and another projected decline of $20-$25 million this year.
Commissioners will hear further public comment on the grant proposal at a special meeting at 5:30 p.m. Tuesday at the Confluence Technology Center. The decision won’t be made until Wednesday morning at another special meeting set for 8:30 a.m. in the PUD boardroom. The PUD must answer the federal RUS about accepting or rejecting the grant by 2 p.m. Wednesday.
Customers contacted in the phone survey said, however, that they would not favor the PUD spending the estimated $33 million to complete the fiber system without using the federal grant if that meant an increase of up to $5 a month in everyone’s electrical bills.
Commissioners also heard consultants from Uptown Services summarize an extensive study of fiber-optic finances and evaluate what options might be available for the PUD to move forward with the system.
Considering that the PUD has already invested $105 million in the fiber system through the end of 2009, consultants said the PUD should keep the system, accept the federal grant and move forward with continuing the build-out over the next three years.
They said they thought fiber optics would continue to be a viable technology for many years and that having a network available throughout the county would enable the PUD to take advantage of other emerging uses such as what’s known as smart grid. The term generally refers to placing electric meters on customer’s homes and businesses that can send data back to the utility, inform customers of periods when electricity may be priced higher and help customers decide when to use electricity at the lowest prices. A fiber-optic system is usually the preferred way to transmit data back and forth.
As far as selling the fiber system, consultants said exiting such a system is difficult and also has a lot of costs that accompany such a move.
***
The next regular commission meeting is at 1 p.m. on Tuesday, Sept. 7, in the PUD boardroom at 327 N. Wenatchee Ave. Commissioners will hold a special meeting at 5:30 p.m., Tuesday, Aug. 24, at the Confluence Technology Center to listen to customer comments about possibly receiving a $25 million federal grant to extend the fiber system to unserved areas of the county. Commissioners will also hold a special meeting at 8:30 a.m. Wednesday, Aug. 25, in the PUD boardroom for the purpose of deciding whether to accept the federal fiber grant.
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