Grant PUD discusses options for $50 million
EPHRATA — How to use all or part of $50 million, or whether to use it at all, was the subject of discussion at the regular meeting of the Grant County PUD commission Tuesday. Commissioners also decided to commit money to build out the district’s fiber program in 2019.
The money is over and above what’s needed to operate the PUD, or what it needs in its reserve – although that depends on a review of district finances. The PUD plans to issue bonds in 2019, and as part of that process is evaluating the district’s financial picture.
Chief financial officer Jeff Bishop said district officials consulted those evaluation agencies earlier this month, and two of the three said the $50 million wasn’t needed to keep the district’s credit at its current rating. The third asked for additional information.
The $50 million came up in the context of a discussion about the 2019 budget, and commissioner Larry Schaapman said he would support using some of that money to speed up the fiber program. In 2017 commissioners allocated $7 million to the project, with a provision for yearly review. The project was estimated to take 10 years.
Schaapman said he would rather add the project to the PUD’s budget, with an analysis of the impact on rates. The project has been ongoing for years, Schaapman said.
"Eighteen (years)," said commissioner Tom Flint.
Under the circumstances, Schaapman said, he would support finding a way to finish it more quickly.
Flint said he would support using some of the $50 million for fiber as a “backup plan.” He said he wanted commissioners to consider using at least some of the money for rate relief.
Utility district officials didn’t use the entire $7 million allocated to the buildout for 2018. Commissioner Terry Brewer said he understood why, but that he had hoped more would get done. He said he would support $7 million for the project in 2019, “and with that in mind, at least that much (money) every year going forward.”
Russ Brethower, senior manager of the wholesale fiber program, said the work is continuing. About $4.5 million will be spent by year’s end, he said. Flint asked how much physically could be done in a year; Brethower said the PUD could spend $13 to $15 million at the maximum. But it would be more effective to have “a consistent amount of money, whatever that amount is.”
General manager Kevin Nordt said it's up to the commissioners to decide what to do with the money, whether it's used for the fiber buildout, to pay down debt, as support for rates or some other purpose.
Cheryl Schweizer can be reached via email at education@columbiabasinherald.com.
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