Chelan PUD proposed budget focused on modernizing dams, technology

WENATCHEE — Chelan County Public Utility District commissioners reviewed a preliminary 2025 budget that emphasizes modernizing hydroelectric facilities and upgrading technology infrastructure, with a projected positive bottom line of $159 million.

The proposed budget represents a 27% increase from last year's adopted budget, driven primarily by increased revenue from long-term energy contracts. Operating expenses are set to rise, attributed to higher utility insurance premiums, Fifth Street redevelopment costs, and distribution maintenance projects.

The utility's capital spending plan allocates approximately $207 million for projects in 2025, marking a 5% decrease from 2024. Major initiatives include extensive modernization work at Rock Island Dam, affecting multiple generating units at both Powerhouse I and Powerhouse II. The project includes replacing the downstream parapet wall, which provides support for gantry crane railways.

At Rocky Reach Dam, the utility is undertaking an environmental upgrade, rebuilding two turbines with an innovative water-filled hub design. This forms part of the PUD's broader strategy to maintain reliable, carbon-free hydropower generation capacity for future decades.

The budget also encompasses significant recreational infrastructure improvements, including completion of upgrades at Riverfront Park. The renovations feature installation of a splash pad, playground equipment, pavilion, and enhanced safety measures along heavily trafficked sections of the Apple Capital Loop Trail.

Additional projects include construction of a new distribution substation in Leavenworth and investments in software systems aimed at enhancing operational efficiency, security, and customer service capabilities.

Financial forecasts indicate the utility will maintain strong fiscal health, with debt levels remaining below the organization's policy thresholds through the next five-year period.

The budget process continues with a second public hearing scheduled for November 18, followed by a final board vote planned for December 2.