Report reflects less capital project spending

EPHRATA — Even though some projects were over budget, overall expenses were about $17.9 million under budget for the Grant County PUD for 2019.

Spending is projected to end the year at $17,907,728 under the budget projection. Financial analyst Jeremy Nolan said the PUD spent less money than budgeted on capital projects, which accounted for most of the difference. Total expenses for the year were $250,323,421, he said.

Labor costs were higher, in part because the PUD was paying more for overtime. Utility district officials also had to hire some consultants for work on some projects, Nolan said, and both are a reflection of some understaffing.

At the end of December, the PUD had 624 employees, both full time and part time. Overtime costs were about $2.3 million over the budget projection.

The year-end results show some areas where spending was lower than budgeted and others that were higher than projected. The PUD was the defendant in a lawsuit filed by a group contesting the establishment of Class 17, the “evolving industries” rate class, and the employee time needed to answer the suit wasn’t anticipated in the 2019 budget, Nolan said.

Currently, cryptocurrency is the only industry in Class 17.

Consultants were hired to work on a transition plan for the end of the PUD’s contract with Shell Energy Northwest. The company has a five-year contract to buy electricity but may not renew it. Consultants also were working on plans to replace a now-defunct arrangement that coordinated the operation of dam facilities in North Central Washington.

In other areas the PUD saved money. The utility is charged an annual fee by the Federal Energy Regulatory Commission (FERC), which was lower in 2019 than anticipated, Nolan said. In answer to a question from commissioner Tom Flint, General Manager Kevin Nordt said FERC adjusts the fee each year. “That’s a formula FERC calculates,” Nordt said. “We make a best guess, but we just never know.”

The PUD is required by state law to meet conservation targets every two years, and it met those targets early, Nolan said, saving the money set aside for that program in 2019.

Cheryl Schweizer can be reached via email at [email protected].