by
Rachel Hansen | Nov 04, 2025
Chelan PUD’s draft 2026 budget reflects a commitment to the reliable delivery of electricity – and the generation of hydropower – well into the future. Chelan PUD commissioners heard details of the preliminary budget Monday, the first of two public hearings.
Overall, the PUD’s financial outlook remains strong with a positive bottom line of about $128 million. Chelan PUD is on track to meet all of its financial targets over the next five years.
Local utility services – electricity, water, wastewater and wholesale fiber – are expected to be about 20% of Chelan PUD’s overall revenue. Most of Chelan PUD’s operating income comes from surplus energy revenue, which is expected to be about 9% less due to predictions of lower market prices.
Operations costs are forecasted to increase about 9%. Major operations projects include: $11.9 million spillway modernization and repairs at Rock Island Dam, a $4.4 million contract to trim trees and shrubs a safe distance away from powerlines, and $9 million for continued operations and maintenance of hatchery programs and facilities.
Chelan PUD’s capital projects are focused on building capacity in the electrical grid to ensure continued reliability as the demand for electricity increases across Chelan County. The largest projects include:
- Two new substations: Bavarian Substation in Leavenworth and Bridge Street Substation in Wenatchee.
- A major rebuild of the transmission line that delivers power to the Lake Wenatchee and Plain areas. The project will be designed to increase capacity, build fire resiliency, and increase reliability.
- Modernization work at both powerhouses at Rock Island Dam will increase the lifespan of the generating units.
The utility plans to fine-tune the budget figures before second budget hearing Nov. 17. The board is scheduled to vote on the final 2026 budget Dec. 1.
A crane lifted the U5 runner through an opening in the roof of Rock Island Powerhouse
2 late last week. The runner was flipped and placed back into the powerhouse to allow
crews to work on the other side as part of a broad modernization effort.