Must be an election year. Every two years we pick a new set of folks here and the PUD is no exception to that rule.
The facts are clear this year, all of these budgets are tight and yes it is a good thing to see all interest rates going to zero, except for the rates on my savings.
The PUD loss profile has a lot to do with not raising rates as much as it could have. They did sell equipment and all of these public agencies could benefit if they could find buyers for surplus property.
The PUD has to balance things and if we have dry and not as cold as before here, then we have to expect less snowpack and lower snowmelt, less hydro. So my concerns are many, but General Manager Rick Lovely and his crew have kept it afloat, but please make sure to have some gas-fired power generation in the years ahead.
Weather systems are what they are, but combined cycle gas-fired co-generation has to be part of that mix and perhaps in the next 20 years the investment we made in the past 20, the take or pay and through put and deficiency contracts will pay off. The last 80 dry days here could be just the tip of the iceberg. Thank you Tom Casey for all of your hard work and thank you PUD for keeping the rates for the future lower than they would otherwise be. The next 20 years, not just the last 20.
Edward David Perrotti