Grant PUD cuts $28 million

EPHRATA — Grant County PUD General Manager Tim Culbertson finishes employee talks this week to answer questions about the utility’s financial situation.

The district expects to receive $80 million less this year because of the financial impacts of two below-average water years.

Less water means less power is produced at the district’s Columbia River dams.

The 2010 adopted budget is $517.8 million and recent reductions/deferrals cut the budget by a total of $28 million.

No employees were laid off.

The 2011 preliminary budget filing will be $490 million.

During the meetings, Culbertson is telling employees they need to be conservative with spending.

He is also speaking about finding creative solutions, working hard, efficiency and being sensitive of expenses.

In turn, employees asked Culbertson questions about alleged “sweetheart deals” for industrial customers, which he called a “misconceived notion” during Monday’s commission meeting.

Employees also asked questions about industrial load growth, which isn’t related to the bargaining contract, he commented.

Employees want financial updates from Culbertson twice a year. They asked “tough questions,” he said.

“I think, generally, the employee meetings have been pretty positive,” he said.

The district isn’t planning any employee wage cuts or furloughs, said utility spokesperson Rita Bjork.

Other budget factors include the replacement of aging infrastructure at the dams, expenses related to the long term license for the Priest Rapids Project and capital projects related to electric system growth, she said.

Four percent rate increases started April 1 for Grant PUD customers.

The same rate increase is also included in the 2011 preliminary budget.