Chelan PUD Forecast for 2020 Finances, No Significant Impact from COVID

Chelan PUD finances are weathering the COVID-19 storm, based on the first three months of 2020, and have only suffered modest impacts to revenues and costs. Board members reviewed the first three months' finances at Monday's meeting and the numbers indicate that the pandemic won't cause a weighty impact to year end results.

"We're forecasting the year to be below budget at $4.4 million at this point in time," said Mark Mullins, enterprise risk management director.

The $4.4 million would result in the year end bottom line slightly less than $54 million. According to Mullins, due to COVID-19 shut downs, the utility is anticipating continued lower retail revenues as well as continued lower revenue on long term base contracts. However, this is offset by slightly lower operating expenditures.

"Right now, retail electric usage is currently forecasted to be at 95% of the budget," said Mullins.

Mullins reiterated the forecast will be more clear with 2020 second quarter results.

"This is a good place to highlight the resilience we've achieved through our prudent financial policies, our strong cash position, but also associated with our risk management and hedging policies," said Mullins. "I'd like to highlight the efforts that have gone on the last several years with our business continuity plans where those have certainly come into play as we react and create actions associated with COVID-19."