The budget includes additional funds to support the PUD’s Operations Department, Engineering, Meter Shop, Substation and tree trimming program with cost savings of close to $1 million in all other departments. The PUD will continue to also look for cost reductions in other areas.
The revenue forecast for the budget year continues to show the impact of declining power markets with a projected decrease of $2 million in revenue for the coming year from the sale of surplus power. This continues the trend of declining revenue due to stagnant power markets which has occurred over the past four years. Grays Harbor PUD has a good track record in selling surplus power in electricity markets, and using the revenue to reduce or prevent rate increases but with power prices down, the PUD is seeing less revenue from surplus power sales.
The Board of Commissioners must approve a final budget by the end of the calendar year. In addition to the operations and maintenance budget, the Board will be considering a capital budget for the coming year as well.