PUD considers 2 versions of their capital budget

The Grays Harbor PUD Commissioners are considering two preliminary capital budget options for 2013. The first is a $10 million spending plan and the second a $7.5 million version. The capital budget pays for long term assets such as substations, trucks, poles, wires, and facilities.

“The goal this year is to find the sweet-spot that will ensure the continued reliability of the system while minimizing the impact on rates,” said Rick Lovely, General Manager of Grays Harbor PUD.

The two preliminary budgets prioritize projects, addressing immediate needs to low priority projects for long range needs. The $10 million plan includes projects identified as high and medium priority with a few low priority projects while the $7.5 million plan funds mainly high priority projects with a few other select projects.

The $7.5 million spending plan differs from the $10 million dollar plan in the projects funded and the scope of projects for 2013. This includes deferring the installation of a fiber optic cable through Elma to the East Grays Harbor County Industrial Park, the replacement of a couple of miles of power lines along the Wishkah Rd, funding for a replacement bucket truck, and a dozen other projects.

In addition to the capital budget plan, the Board will be considering funding options for the projects. This may include funding through low-interest bonds, reserve funds, or a combination of the options.

The Board of Commissioners must approve a capital budget as well as an operations and maintenance budget by the end of the year. The preliminary operations and maintenance budget assumes a 5% rate increase and reflects increased costs for voter-approved mandates for renewable resources as well as an anticipated increase in rates by the Bonneville Power Administration for the power purchased by the PUD to serve customers.