PUD considers substation funding

PUD commissioners Bob Jungers, Dennis Reid and Gene Healy learned Tuesday that they must soon make funding decisions for the new substation on Jacobsen Road.

The district has about $2 million in reserve, General Manager Tramblie said, and the board will need to borrow to complete the $2.9 million project.

“It’s bad timing,” said Tramblie.

Bonneville Power Administration will raise rates this October and the PUD’s engineering firm expects to award bids in early October for the remaining $2.8 million the project will cost.

“The substation is needed for the long term health of the utility,” Tramblie said, when the board met Tuesday for its regular meeting, with community member Lee Tischer in attendance.

Tramblie and the commissioners indicated they would use much of the reserve to keep the cost to ratepayers low. Tramblie said he would bring projections of the cost of financing the balance and possible rate increases to the next board meeting.

In addition to the rate increase and the substation project, Auditor Erin Wilson reported the district will need to pay $71,000 to the Health and Welfare pool for ongoing insurance coverage.

In other business, Tramblie reviewed the electric system’s five-year plan. Some projects are relatively expensive for the few customers served, so Tramblie said he’s in no hurry to take them on, but the plan is proceeding on schedule.

The board agreed to lower the reconnection fees to $250 and doubled the length of time before that fee went into effect.

“(Realtor) David Nelson brought that issue to me,” Reid said.

At times an agent or homeowner needs the utilities on for an inspection. The current reconnect fee is $500, which takes effect after the service is disconnected for 30 days.

“It was punitive to discourage people from trying to avoid paying the service fees. The object was to keep people from taking unfair advantage of the cost of building and maintaining the system,” Jungers said.

PUD attorney Tim Hanigan will prepare the resolution needed to incorporate the changes into the rate schedule.

Wilson reported that the office will be closed Friday, June 17 for software training. The PUD is implementing a new billing program.

Tischer commended Jungers for pursuing hydro-electric power at the board’s workshop session in May.

The board met in executive session related to personnel evaluation and adjourned without taking action.