GCPUD Press Release

FOR IMMEDIATE RELEASE                               Contact:    Gary Garnant
Date:   March 27, 2006                                      E-mail:       ggarnan@gcpud.org
                                                                          Phone:      (509) 754-5027

Grant PUD Commissioners Review 2005 Un-audited Year End Financial Report

EPHRATA – Grant PUD Commissioners today received a final 2005 financial report on the utility and its individual operating systems. At the end of 2005, the utility’s financial status exceeded expectations established during the 2005 annual budgeting process.

“The year 2005 exceeded our financial expectations,” said Grant PUD Treasurer / Controller Nick Gerde. “We made great progress towards reaching the Commission’s goals of having $35 million in working capital, which allows for short term operational flexibility, and $70 million in the utility’s reserve and contingency fund, which represents longer term stability in situations of negative water and/or unexpected power pricing environments. Our budget plan reflects reaching these goals in 2006.”

At year’s end, $263 million of the $305 million budget had been spent. This variance is due, in part, to several factors including the delay of anticipated capital projects, favorable progress in obtaining a new long-term license for the Priest Rapids Project and increased generation from Priest Rapids and Wanapum Dams that resulted in a lesser need for purchased power.

Electric System capital projects for substations, building improvements and distribution was under spent by approximately $3.5 million and moved out to 2006 in anticipation of customer requirements and feeder rebuilds. This work is dependent on customer needs and could be completed in 2006 or moved to future years depending on requirements.
Natural Resource projects and Federal Energy Regulatory Commission (FERC) expenses related to the relicensing process and settlement agreements were also pushed into 2006. Approximately $6 million was not spent in 2005 in these two areas.

“A large portion of the 2005 variance is due to power supply purchases being approximately $12 million less than expected due to higher generation and favorable seasonal energy prices,” said Gerde. “Power purchases vary annually based on the amount of power generation produced at the Priest Rapids Project in comparison to District load requirements.”

Staff reviews the utility expenditures with Commissioners on a monthly basis and provides a more extensive financial report on a quarterly basis. The audited financial report for 2005 is expected during the week of April 10.

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Grant County Public Utility District owns and operates the two-dam Priest Rapids Project on the Columbia River in central Washington. Together, Priest Rapids and Wanapum developments have the capacity to produce nearly 2,000 megawatts of electricity -- enough to supply a city the size of Seattle. Environmental stewardship and providing affordable energy to millions of customers throughout the Northwest are top priorities for Grant PUD. The utility has successfully launched the Zipp Network, a world leader in bringing high-speed fiber optic access to every home, school, business and farm in this rural part of Washington.

Grant County Public Utility District News Release © 2005