Douglas County PUD Commissioners Jim Davis, Lynn Heminger and Ron Skagen executed the following actions during the August 31, 2009 Commission meeting held at the East Wenatchee Headquarters office:
Awarded Hurst Construction , LLC of East Wenatchee, contract 09-20-W, pollution abatement system upgrade for the Methow Spring Chinook Hatchery. Hurst, with a bid price of $133,000, was the only responsive bidder. (09-186)
Approved change order No. 1 to contract 09-17-W, Thrust Bearing Load Cell System for Wells Hydroelectric Project with Kingsbury, Inc. This change allows for separate performance bonds and warranty periods for each generating unit. There is not a cost associated with the change order. (09-187)
Approved amendment No. 4 to agreement for professional services with Okanagan Nation Alliance regarding Okanagan sockeye. This amendment extends the contract through August 31, 2010 with an increased cost of $195,500. (09-188)
Authorized signal transport agreements with a television network – Turner Network Sales, Inc. These agreements are required by most networks to receive and transport the signal over the Douglas County Community Network. (09-189)
Received the preliminary budgets for the Distribution System for calendar year 2010 and for the Wells Hydroelectric Project for the fiscal year ending August 31, 2010.
The Distribution System budget estimates revenues for 2010 at $40.7 million, an increase of 4%. The estimate includes a 6% rate adjustment. Operating expenses are estimated at $39.1 million, an increase of 12% primarily related to increased power supply cost. The budget anticipates a bond issue to fund long-lived capital additions such as substations and transmission lines. The bond issue will result in a $1.5 million increase in interest expense. Net additions to retained income are estimated at $3.5 million, a decrease of approximately $4.8 million from the 2009 budget. The capital budget is $17.9 million, of which $11.3 million is for electrical facilities. The electrical facilities budget includes $6 million for substation improvements to benefit a single customer that would reimburse the District for the cost of the improvements. The balance of the capital budget is for improvements and new connections to the Douglas County Community Network and for equipment and right-of-way easement costs.
At $49,565,927 the total Wells Hydroelectric Project Operating Expense Budget amounts to a $5,442,918 increase from last year’s estimate. The Wells Project Revenue Budget estimate is equal to the Operating Expense Budget as required by contract. The Wells Project Capital Budget totals $873,835. Major items include replacing the payroll system, battery room HVAC and a server disaster recovery project.
Reviewed the Environmental Reviews for the 2010 Distribution System Capital Budget and the 2009-2010 fiscal year Wells Hydroelectric Project Operating, Capital and Extraordinary Expense Budget.
A budget hearing has been set for October 5 at 2:00 p.m. at the District’s East Wenatchee office.
The 2010 Distribution System budget includes a 6% rate adjustment. The District has adjusted rates once (2002) in the past 13 years. Normal inflationary pressure is one of the reasons a rate adjustment is currently needed. Analysis of the past 20 years shows inflation-adjusted cost per kilowatt hour for residential customers is 15% lower than in 1989.
The current rate adjustment proposal applies a 6% increase to electric rates on January 1 in both 2010 and 2011. The average monthly impact of a 6% increase for a residential customer would be $2.79, plus or minus the effect of rounding, which is part of the District’s final bill calculation process. The proposal adjusts Douglas County Community Network rates by a similar amount on the same dates. Three new service charges related to collection of delinquent payments would also be added effective October 1.
Rate hearings have been set for September 14 at 5:00 p.m. at the District’s Bridgeport office and September 21 at 2:00 p.m. at the District’s East Wenatchee office.
The next meeting of the Commission is scheduled for 2:00 p.m. September 8, 2009 at the District’s East Wenatchee Headquarters office.