State of the PUD Connell Community Center June 16, 2008 Working in Partnership with Our Community...
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Transcript of State of the PUD Connell Community Center June 16, 2008 Working in Partnership with Our Community...
State of the PUD
Connell Community CenterJune 16, 2008
Working in Partnership with Our CommunityPresented by:Ed Brost, Interim Manager
The District
Board of Commissioners
Elected Board of 3 CommissionersServe 6-year staggered terms from three
districts
Stuart NelsonVice President
since 2003
Bill GordonPresident since 2003
Chuck HallSecretarysince 2005
District’s Mission Statement
Franklin PUD provides quality services and achieves efficiencies that benefit our
community
District’s Key Focus Areas
RatesReliabilityRelationships
Blanton Road Substation under construction
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
Service Area
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
2007/2008 Highlights
2007 Highlights
Jan 1, 2007 5% rate decreaseStrategic decisions
Purchased power from two wind projectsNine Canyon, Phase IIIWhite Creek
Reserves at an all time high
2007 HighlightsReliability exceeds industry standardMoody’s bond rating upgrade from A to 2aSystem improvement projects completed in
2007:Overhead to underground conversion at:
East Lewis Street, Burden BoulevardTerra VitaSunrise Estates
2007 Highlights
Broke ground for Blanton Road SubstationCompleted design for 115kV line in ConnellCommercial 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)
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
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)
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)
2008 District Projects
15 subdivisions being developed in Pasco and Connell
Connell/Kahlotus transmission lineHeadquarters remodelAMR systemAccounting/Work Management
System
Customers and Rates
2007 Load by Customer Class
34%
17%
14%
34%
1%
Residential
Commercial
Industrial
Irrigation
Lighting
2007 Energy Sales Revenue
31%
27%
11%
10%
1%
20% ResidentialCommercialIndustrialIrrigationLightingWholesale
2007 Operating Expenses
Electric Rates
Date Change
January 1, 2003 +11.5%
January 1, 2005 +10.5%
January 1, 2007 -5.0%
May 1, 2008May 1, 2008*
-4.0 %-3.0 %
Changes in Franklin PUDs Electric Rates
* 3% credit for approximately 1 year.
Rate Strategy
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
Board commitment to financial integrity and to District financial policies
Power Supply
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)
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
0
2040
6080
100
120140
160180
200Ja
n
Feb
Mar
Apr
May Ju
n
Jul
Aug Se
p
Oct
Nov
Dec
aMW
Average Slice
WhiteCreek
Nine Canyon
Frederickson
Critical Slice
Block
Load (Pessimistic)
Load (Budget)
Load (Expected)
27
Estimated Monthly EnergyLoads & Resources 2022
0
2040
6080
100
120140
160180
200
Jan
Mar
May Ju
l
Sep
Nov
aMW
FredericksonAverage Slice9 Canyon (+3.4aMW)Critical SlicePackwoodBlockLoad (Expected)
Regional Issues
Key Regional Issues
Post 2011 BPA contracts Residential ExchangeFish costs – Biological Opinion Increasing legislative mandates impacting
costsClimate Change, Initiative 937Transmission reporting requirements
Post 2011 contracts with BPA
Regional Dialogue process – secure benefits of Federal System for the Northwest
20-year contractsRates uncertaintyCost control and dispute resolution are
important issues yet to be decidedContracts to be offered by August and signed
by December 2008
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
The Court Ruling in 2007
May 3rd, 2007 Ninth Circuit Court ruled BPA violated law
BPA suspended payments to private utilitiesPublic 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
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
Fish Costs & River Operations - the $800 million question
PUD member of NW RiverPartners
Regional organization advocating rational, scientific approach to fish
recovery that preserves & enhances values of our river system
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.
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
Climate Change
Continues to evolve regionally and in DC, and will impact our power costs
Our costs will go up – question is, how much
Summary
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
Questions?
Blanton Road Substation