1 / 42

State of the PUD

State of the PUD. Working in Partnership with Our Community. Presented by: Ed Brost, Interim Manager. Connell Community Center June 16, 2008. The District. Board of Commissioners. Elected Board of 3 Commissioners Serve 6-year staggered terms from three districts. Bill Gordon President

erwin
Download Presentation

State of the PUD

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. State of the PUD Working in Partnership with Our Community Presented by:Ed Brost, Interim Manager Connell Community Center June 16, 2008

  2. The District

  3. Board of Commissioners • Elected Board of 3 Commissioners • Serve 6-year staggered terms from three districts Bill Gordon President since 2003 Stuart Nelson Vice President since 2003 Chuck Hall Secretary since 2005

  4. District’s Mission Statement Franklin PUD provides quality services and achieves efficiencies that benefit our community

  5. District’s Key Focus Areas • Rates • Reliability • Relationships Blanton Road Substation under construction

  6. Franklin PUD • Serves 2/3 of Franklin County population • 1,067 miles of transmission and distribution lines • 20 substations • 93 full-time employees and 1 part-time employee • Bonneville preference customer (Slice/Block) • 2007 revenues: $81.8 million • Continued growing local economy in 2007 • 25,328 meters • 21,299 customers

  7. Service Area

  8. Local Economy • Continued unprecedented growth in 2007 • $106 million in new private investment for 518 single family homes • $81 million in new commercial and industrial projects permitted in Pasco • 25 new distribution miles added in 2007 • County’s population growth fastest in State • Franklin County population over 67,000, an increase of 37% since 2000 • City of Pasco has 50,210 residents as of end of 2007

  9. 2007/2008 Highlights

  10. 2007 Highlights • Jan 1, 2007 5% rate decrease • Strategic decisions • Purchased power from two wind projects • Nine Canyon, Phase III • White Creek • Reserves at an all time high

  11. 2007 Highlights • Reliability exceeds industry standard • Moody’s bond rating upgrade from A to 2a • System improvement projects completed in 2007: • Overhead to underground conversion at: • East Lewis Street, • Burden Boulevard • Terra Vita • Sunrise Estates

  12. 2007 Highlights • Broke ground for Blanton Road Substation • Completed design for 115kV line in Connell • Commercial projects completed in 2007 (Lowe’s Home Improvement Warehouse, Miscellaneous commercial growth in Road 68 area (retail & office), Multiplex theatre, Twin City Foods and ConAgra expansions, Bybee Foods Freezer building expansion,and Freeze Pak)

  13. 2007 Highlights • Strong 2007 retail sales $61.6 million • Exceeded revenue forecast by $3.6 million • Continued strong load growth (4.9% in 2007) • Revenue levels sustained even with a 5% rate decrease for all classes in 2007 • 3.8% average growth over last three years • 620 new accounts in 2007 • New connection charges billed to customers • $2.4 million in 2007

  14. 2008 Highlights – to date • Completed Blanton Road Substation • Standard and Poor's bond rating upgraded to an “A” • Rate decrease May 1, 2008 – 4% overall • Residential Exchange rate credit • 3% effective for one year (May 1, 2008)

  15. District’s Growth • Projects planned or announced for 2008 (Syngenta Seeds, Inc.(food processing plant), Coyote Ridge Corrections Center, new high school in Pasco, additional retail and commercial buildings, medical and professional office buildings)

  16. 2008 District Projects • 15 subdivisions being developed in Pasco and Connell • Connell/Kahlotus transmission line • Headquarters remodel • AMR system • Accounting/Work Management System

  17. Customers and Rates

  18. 2007 Load by Customer Class

  19. 2007 Energy Sales Revenue

  20. 2007 Operating Expenses

  21. Electric Rates Changes in Franklin PUDs Electric Rates * 3% credit for approximately 1 year.

  22. Rate Strategy Board commitment to financial integrity and to District financial policies • Rate Advisory Committee recommends long term rate stability • Goal is to sustain these decreases while meeting challenges due to state/federal mandates • Continue to seek reductions

  23. Power Supply

  24. Power Supply Overview • Diversified power supply • Block and Slice customer of Bonneville • Under critical water Bonneville contracts meet 93% of District load (100 of 107 aMW) • Thermal resources meet incremental load requirements and serve as a hedge against low stream flows • Wind power purchases • Packwood hydro • Developing an Integrated Resource Plan (IRP)

  25. Other District Resources Owned Resource: Pasco CT 22 MW Contracted Resources: Frederickson (Aug 2022) 30 MW Packwood Hydro (firm) 3 aMW Nine Canyon Wind Project (2030) 3 aMW White Creek Wind Project (2027) 3 aMW

  26. Estimated Monthly EnergyLoads & Resources 2012

  27. Estimated Monthly EnergyLoads & Resources 2022

  28. Regional Issues

  29. Key Regional Issues • Post 2011 BPA contracts • Residential Exchange • Fish costs – Biological Opinion • Increasing legislative mandates impacting costs • Climate Change, Initiative 937 • Transmission reporting requirements

  30. Post 2011 contracts with BPA • Regional Dialogue process – secure benefits of Federal System for the Northwest • 20-year contracts • Rates uncertainty • Cost control and dispute resolution are important issues yet to be decided • Contracts to be offered by August and signed by December 2008

  31. Residential Exchange Program • 1980 NW Power Act established the Residential Exchange Program (REP) • Increase parity between the private and preference customers’ wholesale power costs • Share benefits of federal power system with private residential and small farm customers • Private benefits passed on to their customers in form of a credit on their bills • The Act specifically stated public power customers would not have to pay for this benefit received by private customers

  32. The Court Ruling in 2007 • May 3rd, 2007 Ninth Circuit Court ruled BPA violated law • BPA suspended payments to private utilities • Public Power has had significant rate increases due to unlawful agreements over last 6 years • Important to reach regional agreement regarding level of benefits – while honoring NW Power Act provisions

  33. BPA Proposed Settlement February 8, 2008 BPA issued settlement provisions and initiated formal rate proceeding • Cash payments to public’s and private’s for 2007 and 2008 • Provides $620 million in future rate relief to publics over 20 years (2009 – 2028) for unlawful payments • Re-establishes REP payments and program at approximately $210 million a year. • Expected decision by September 2008

  34. Fish Costs & River Operations - the $800 million question

  35. PUD member of NW RiverPartners Regional organization advocating rational, scientific approach to fish recovery that preserves & enhances values of our river system

  36. RiverPartners builds awareness • Provides a unified voice for values of the Columbia and Snake rivers. • Effective means to promote good stewardship and cost efficient salmon restoration programs. • Active in number of forums: litigation, technical, political, press/media and member communications. • Green Dams/Blue Skies pro-active campaign in support of the Snake River dams.

  37. Renewable/Conservation Standards • Meeting I-937 renewable requirements • Triggers at 25,000 customers (expected 2012) • First threshold met • 6% of resources acquired from renewable resources • I-937 conservation requirement: • “all cost-effective” will be a challenge • 2007 accomplishments 5.9aMW at $54.97

  38. Climate Change • Continues to evolve regionally and in DC, and will impact our power costs • Our costs will go up – question is, how much

  39. Summary

  40. Summary • 2008 continues the strong trends of 2007 • Thriving service territory • Positive trends in key financial indicators • Key issues facing the PUD affecting our future • Well postured to meet significant challenges (BPA contracts, climate change, growth, I-937) • Engaged and responsive Board • Customer service is our number one focus

  41. Questions? Blanton Road Substation

More Related