Grant PUD sees declining revenues
Lynne Lynch/Columbia Basin Herald<br> Grant PUD commissioners and staff discuss the utility's financial forecast. From left: Commissioners Terry Brewer, Bob Bernd (hidden), Greg Hansen, Tom Flint, Randy Allred, General Manager Tim Culbertson and Treasurer/Controller Jim Bunch.
EPHRATA — Projected figures released by Grant County PUD staff showed a $61.2 million reduction in the utility’s reserve and contingency fund, when comparing 2009 to 2013.
If the utility’s retail load returns and gas and power prices go back up, the forecast could change again, said Tim Culbertson, the district’s general manager, at a commission workshop Thursday.
He pointed out 2009 was still looking relatively good and the financial forecast was based on assumptions.
After staff tabulated more figures, it was learned that a 5 percent rate increase from 2010 to 2013 would expand the fund to $93.5 million.
No decisions were made.
Without a rate increase, the fund would be an estimated $62.1 million.
“I don’t think we’re in crisis,” said Commission President Terry Brewer. “I’m where (Commissioner Bob Bernd) is and I don’t think we see a crisis coming.”
During the meeting, PUD managers were asked to present lists of capital projects that could be canceled or deferred in 2009.
No decisions were made.
Commissioner Greg Hansen estimated the managers’ ?capital project deferrals or cancellations came to about a $15 million reduction.
Culbertson said managers were asked to come to the meeting with a 10 percent capital project reduction in their departments.
Cost-saving measures in place this year include fewer employees traveling to the same event and a strict evaluation of new hires, he explained.
During the presentation, Hydro Director Dawn Woodward said she recommended the utility continue moving forth with capital projects in her division.
She also explained how an investment could be wasted if a project is stopped in the middle of planning.
Commissioner Randy Allred said he doesn’t think decisions about specific reductions are a commission decision, rather, just the total amount.
Flint said he didn’t think it’s any secret the PUD is going to have to raise rates because of the turbine and generator upgrades.
He spoke of a rate increase of 4 percent to 5 percent stretched over a period of years.
Hansen asked about three and a half years left on the $50 million fiber-optic expansion.
Culbertson said if the commission asks staff to reduce the budget, fiber would be on the table.
Commissioners also heard presentations from employees in customer service, natural resources, support services and power management.