Local News

PUD Starting Budget Process for 2021

Sheila Corson

Okanogan County PUD

Aug 14, 2020

In beginning discussions for the 2021 budgeting, Okanogan County PUD commissioners discussed several financial items at an Aug. 10 meeting. Discussion continues to their next meeting, Aug. 24.

Due to the COVID-19 crisis, the district suspended its originally planned April 1 revenue increase with no set date for when or if it might take effect. Staff presented the possibility of implementing the rate increase this fall, but commissioners asked to see a longer suspension, to see how situations might change.

The board also looked at changing the formula for how the cost of power adjustment (COPA) is figured. Currently, it can be changed at any time of the year to reflect changes in power costs, but to simplify the process, staff recommended the COPA be a comparison of the previous year over the present year with any adjustments being implemented April 1. That way, the COPA can be set based on a full year’s power costs instead of fluctuating throughout the year.

Staff also presented updated financial policies, including setting a goal of having 90 days of cash on hand instead of the current 60-day policy. The district currently has 85 days cash on hand. The higher cash on hand policy will maintain the district’s good bond ratings.

General Manager Steve Taylor said these discussions will guide staff in forming the 2021 budget. Not only does the district need to plan for revenues, but also maintain its obligations for capital plans and power purchases.

COVID-19 impacts continue to affect the budget, with 359 bills representing about $53,000 in delinquency currently.

The board decided all financial items will be back up for discussion at the Aug. 24 workshop and board meeting. More detailed meeting information will be shared on the district’s website soon.

In other business, the board:

Discussed a new pole attachment rate for companies with equipment on the PUD poles. About 9 entities are currently charged for this, at a rate of $14.64 per attachment since Aug. 8, 2000. The proposed resolution would increase that rate to $23.50 per attachment, effective Jan. 1. The charge is intended to cover the additional costs of maintenance of the PUD infrastructure incurred by the extra pieces of equipment.
Heard from Chief Engineer Dan Simpson about the trending of transformer Dissolved Gas Analysis (DGA). Some gas level trends are causing concern, indicating some minor insulation break down. The district has scheduled some more in-depth transformer testing this fall.
Heard from Taylor that the district has contracted with Tilson Technologies for a $15,000 high-level study of how to get fiber to every home in the city of Brewster. If the study proves to be helpful, the district could do a similar study in other area cities.
Heard from Ron Gadeberg, director of power resources and broadband services, that although the district sold nearly twice as much wholesale power on the market as expected for July, the revenue was almost half of what was expected due to low prices. Retail sales in June were also under budget again, bringing the year-to-date total to $1.3 million under budget for power revenue.
Also heard a report from Gadeberg that broadband again had its highest revenue month at about $276,000. Staff are staying busy with many requests for fiber connections. End users on the system now total 2,946 wireless and 525 fiber.

Heard that the district will continue its four-day week with 10-hour shifts through the end of the year; offices will remain open Monday through Thursday 7:30 a.m. to 5:30 p.m