BPA extends surcharge relief to Okanogan PUD

BPA uses its financial reserves – cash on hand, short-term investments, and deferred borrowing - as a tool to maintain financial health and mitigate financial risk, a BPA media release said. The reserves allow BPA to continue to meet all payment obligations when its sales revenues fall short of forecast numbers.

“Maintaining reserves is a staple of financial strength,” said BPA Chief Financial Officer Michelle Manary. “But given the significant challenges customers are facing, we agree this is not the time to be building up cash reserves.”

It is questionable whether Okanogan PUD users will see a pass-through of those savings reflected in individual power bills.

PUD Community Relations Coordinator Sheila Corson said that while the $350,000 will be helpful, “we are already down about $1 million in power sale revenue so far this year, plus we deferred the two percent (2%) rate increase that would have been raising additional revenue that we now have to cut.”

“Also keep in mind that $350,000 is spread over the next 17 months or so,” said Corson, “and most won’t be here until 2021, impacting next year’s budget more than this year’s.”

The PUD’s June power sales fell under budget by $43,557, due to negative market pricing when dams pumped more water to reduce gas levels for fish, said Ron Gadeberg, Director of Power Resources and Broadband Services. Though retail power sales for January 2020 were over budget by $84,392, the total revenue from power sales remains about $1 million under budget year to date, as Corson noted.

In other PUD business:

● The broadband customer base continues to increase with 3,386 end users on the system.

● The district is updating its website regarding ratepayer assistance plans.

● The board approved two resolutions to surplus old telecom and operations equipment.