Proposed budget focused on modernizing dams, technology

information released

Chelan PUD commissioners considered a preliminary budget for 2025 that’s focused on modernizing energy generation, maintaining reliability and improving customer experience. (on the board audio at 01:57)

The draft budget forecasts a positive bottom line of over $159 million, about 27% higher than the adopted budget last year. That figure reflects an increase in revenue from long-term energy contracts.  Operation expenses are also expected to increase, in part due to higher insurance premiums for utilities, Fifth Street redevelopment and several maintenance projects related to distribution and reliability.

Improving hydropower capability is driving a long-term modernization effort at Rock Island Dam, as well as several maintenance projects at Rocky Reach. The PUD is also rebuilding two turbines at Rocky Reach using an innovative, water-filled hub design that’s better for the environment. The goal is to ensure that the generating units continue steady, reliable production of carbon-free hydropower for decades to come.

The preliminary 2025 budget includes about $207 million on capital projects, about a 5% decrease compared to the adopted 2024 budget. Key projects include:

  • Rock Island Dam modernization, including multiple generating units at Powerhouse I and Powerhouse II. The downstream parapet wall, which supports the railway for the gantry cranes, will also be replaced.
  • The completion of substantial improvements at Riverfront Park, including a splash pad, new playground, pavilion, and new safety features along some of the most congested areas of the Apple Capital Loop Trail.
  • Begin construction on a new distribution substation in Leavenworth.
  • Invest in software systems that will improve operational efficiency, strengthen security protections, and introduce new features for customers.

Overall, the PUD’s financial outlook remains strong, with debt well below the utility’s financial policy metrics for the next five years.

A second budget hearing is scheduled for Nov. 18. The board is scheduled to vote on the proposed 2025 budget Dec. 2.