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Long-term impact of coronavirus on PUD finances uncertain

CHERYL SCHWEIZER | Hagadone News Network | UPDATED 5 years, 1 month AGO
by CHERYL SCHWEIZER
Senior Reporter Cheryl Schweizer is a journalist with more than 30 years of experience serving small communities in the Pacific Northwest. She began her post-high-school education at Treasure Valley Community College and enerned her journalism degree at Oregon State University. After working for multiple publications, she has settled down at the Columbia Basin Herald and has been a staple of the newsroom for more than a decade. Schweizer’s dedication to her communities and profession has earned her the nickname “The Baroness of Bylines.” She covers a variety of beats including health, business and various municipalities. | June 8, 2020 12:45 AM

EPHRATA — Grant County PUD projects it will finish 2020 with about $206.3 million in revenue, which is less than the projection in the 2020 budget. But the utility’s financial analysts aren’t sure yet how the COVID-19 outbreak will affect the PUD’s finances in the long term.

“We just don’t have enough information,” said financial analyst John Mertlich. Utility district officials know the outbreak will have an impact on PUD finances, “but the magnitude is very uncertain,” Mertlich said.

Restrictions on movement and business were imposed in late March. As a result, PUD revenue from small commercial customers went down in the first three months of 2020, while residential revenue went up. Revenue from large commercial customers remained steady. Revenue was below the budget estimates for large industrial customers, but that was due in part to companies changing some of their plans and delaying some scheduled work, Mertlich said.

Power sales were above the 2020 budget forecast, Mertlich said. Utility district officials were able to lock in higher than expected wholesale prices.

Grant PUD offices are closed to the public, and some employees are on paid leave. Through mid-April, Grant PUD had paid about $1.6 million in salaries for employees on leave and had about $500,000 in expenses directly related to the outbreak.

Utility district officials also expect state officials to continue a moratorium on late fees. The impact of that on PUD finances hasn’t been determined.

“We think we’re in relatively decent shape,” said chief financial officer Jeff Bishop.

Cheryl Schweizer can be reached at education@columbiabasinherald.com.

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