Effect of pandemic on Grant PUD finances uncertain

EPHRATA — It’s still too early to tell what financial impact the COVID-19 outbreak will have on Grant County PUD.

John Mertlich, PUD financial analyst, estimated that PUD revenue through the end of the first quarter was about $4.1 million less than projected in the 2020 budget. Because the circumstances are so uncertain, the impact on the PUD’s budget for the rest of the year is also uncertain, Mertlich said.

Mertlich provided a budget update during the May 12 PUD commission meeting.

The demand for electricity is expected to decline, and retail revenues are expected to decline as a result, Mertlich said. Electrical demand is anticipated to remain below 2020 budget projections through most of the year.

Some electricity will be sold on the wholesale market, which will recoup a portion of the lost revenue, Mertlich said.

Interest rates have been cut, so the PUD’s investments are generating less money, but interest payments on its debt are lower too.

Some PUD workers are on paid leave during the outbreak, and late fees have been waived for PUD customers for a few months. The paid leave was projected to cost the PUD about $7 million and the lost late fees about $335,000, Mertlich said.

Some scheduled work is being deferred. The deferred projects will reduce costs now, Mertlich said, but will have to be rescheduled, and paid for, later.