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PUC reports robust reserves, BOSCA early repayment and drought monitoring; no rationing expected this year
Summary
CFO Todd Richterum reported higher water sales, BOSCA early repayment used to retire bonds and projected savings; Assistant GM for Water Steve Ritchie said reservoirs should fill this year and rationing is not expected unless there is a second dry year; Julie Labonte gave a brief WECIP update.
Todd Richterum, the commission's CFO and assistant general manager, presented the third-quarter budget report, highlighting higher retail and wholesale water sales after a dry January'March and noting that $109 million of a $356 million BOSCA early repayment was used to early-pay bonds and to reduce debt service reserves. Richterum said the reserve resizing is projected to save about $35 million in present value over the next three to five years when the remaining WECIP bond authorizations are issued.
Richterum also reported that power-enterprise revenues were slightly down for some customers but that power-purchase costs and certain interconnection and ISO charges were also lower, leaving the enterprise close to planned balances. He said the water enterprise now holds very large balances—"nearly $300,000,000"—and that most reserve ratio scorecard boxes are now satisfied.
Commissioners asked how a reported 17% snowpack would affect budgets and operations. Richterum deferred to the water operations team; Steve Ritchie, assistant general manager for water, said reservoirs are expected to fill this year and the PUC is not planning to impose rationing at this time. Ritchie warned that if a second dry year occurs, the commission would consider rationing next year, and he underscored the uncertainty of long-range predictions.
Julie Labonte provided a brief WECIP update, noting the packet includes a revised budget and schedule, a more detailed accounting of contingency, and a change-notice report to the state due in June that will document impacts to level-of-service goals from project delays. A memo addressing earlier BASCA recommendations on the Calaveras dam project will be provided before the end of the fiscal year.
Commissioners congratulated staff on improved reserve metrics and asked staff for a flowchart showing program status over the last year or two to support scheduling the joint LAFCO meeting on the CCA item.
