May 12, 2010
Chelan County PUD Commissioners received more bad budget news this week. At a Monday study session Commissioners heard a quarterly financial update that indicates the PUD still faces another tough financial year. Record low river flows in January and March have reduced the amount of water available to generate electric power to sell on the open market. Add to that revenue this year from wholesale power sales is now about one-fourth of what was forecast in the budget. The PUD budget is now projected to lose about $28 million dollars if conditions don’t improve... Chief finance officer, John Janney said the PUD continues to provide highly reliable services. There is also a light at the end of the tunnel. Janney noted that beyond 2012 the revenue side of the ledger should improve. 2012 is the year that new longterm power contracts with Alcoa and Puget Sound Power kickin. A new strategic plan is also being developed this year that is expected to put the PUD on a sustainable financial path starting in 2012.