Commission recap, 5/28/2024 — Grant PUD works to resolve audit findings. More...

Grant PUD Commissioners learned Tuesday that the Washington State Auditor’s Office found three issues during a recent audit of utility’s compliance with the Clean Energy Transformation Act (CETA) from Jan. 1, 2019 through Dec. 31, 2021. This was Grant PUD’s first compliance audit for CETA which was enacted into Washington state law on May 7, 2019.     

According to Thomas Bernard, of the auditor’s office, who spoke with the commissioners, there were three findings that will be documented in their report. Read the audit findings report here.

In the first finding, the auditor’s office determined Grant PUD did not perform and report to the state’s Department of Commerce required cumulative assessment of its previous energy assistance funding levels compared to those needed to meet its 2030 and 2050 energy assistance funding goals. Also, the utility did not include its plan to increase the effectiveness of its energy assistance programs and strategies in producing short-term and sustained energy burden reductions as required by CETA. 

In its response submitted to the auditor’s office, Grant PUD stated that it used a reporting template provided by the Department of Commerce believing it covered all the requirements. This method resulted in Grant PUD not submitting the required information as it was omitted by the Department of Commerce in the reporting template.  

Since the audit, Grant PUD has communicated with Commerce to define the reporting requirements and parameters. Additionally, Grant PUD has dedicated a CETA Program Manager to assist with compliance and program development. 

“Our Program Manager will review Commerce’s reporting templates and cross reference them against all applicable RCWs and WACs to verify all requirements are captured and all questions are answered in full,” stated Grant PUD in its response to the auditor’s office.

In the second finding, the auditor’s office determined that Grant PUD did not meet CETA’s requirements to have multiple assistance programs for low-income customers as defined by Commerce.

“While the District made three low-income energy assistance programs and funding available to customers, some households considered “low-income” by CETA’s definition were not eligible to benefit from at least one of those programs,” a preliminary audit report stated.

 In its response, Grant PUD declared that it believed to be compliant “with our existing Share the Warmth (STW), Senior Discount, and Disabled Discount programs that are offered to our low-income customers.”  

Grant PUD also stated that since it became aware of the finding a program manager has been dedicated to the CETA program, to revamp our current programs and develop and implement additional programs for the availability of all low-income customers.  

“Grant PUD plans to work with stakeholder groups to develop more programs to help low-income customers reduce their energy burden,” it declared in the response to the finding.  “Not only will these programs benefit our customers, but they will satisfy CETA requirements.”

In the final finding, the auditor’s office found that Grant PUD’s controls “were ineffective for ensuring management and staff understood and complied with CETA’s greenhouse gas reporting requirement in a timely manner.” 

Grant PUD stated in response, “We agree with the assessment of the first year’s report.  All subsequent year’s reporting requirements have been met.”

Hear the discussion at _____ on the commission audio.

PUD projects wholesale revenues higher than budgeted, as of Q1 financial report  

Grant PUD’s first-quarter financial report forecasts a significant increase from the budgeted $122 million of net operating income to $262 million, primarily due to higher net wholesale power sales revenues.

Net wholesale excess is being strategically managed in the district’s reserve funds as a portion of these revenues are required to be restricted to specific purposes as well as used for risk mitigation. 

Retail revenue is forecasted just short of the budget by $1.8 million (less than 1% of the $313 million budget), primarily driven by a shortfall in Rate Schedule 14 forecast by $2.9 million due to lower than anticipated load within this customer class.  

Primarily, O&M and capital forecasted spend were held constant for year end with minimal changes quarter over quarter impacting the total forecasted spend.

See the full presentation on pages 41-138 of the presentation materials. Hear the discussion at _____ on the commission audio. 

Commissioners also:

— Heard that the Grant PUD Enterprise Project Management Office is shepherding 35 projects around the county, including new substations, switchyards and transmission lines, equipment upgrades at the dams, and technology/computer systems enhancements. Department Senior Manager Aaron Kuntz said major accomplishments to date this year include a signed agreement to purchase land for a new Ephrata Service Center, collaboration with the Power Production, Power Delivery and Procurement departments for a consistent “materials management system,” and an ahead-of-schedule rehab work on the sixth of 10 turbine/generator units at Priest Rapids Dam. See the full presentation on pages 21-40 of the presentation materials. Hear the discussion at _____ on the commission audio.

— Unanimously approved Resolution 9050 with lowest bidder ADAMS Schweiz AG of Switzerland for $2.04 million for gravity supply valves for the Wanapum Dam right bank fish ladder. For more information, see pages 8-18 in the commission packet.

— Unanimously approved Motion 3478, authorizing payment of $24,767 to Northwest Barricade & Signs for aiding Grant PUD’s Line Department perform a rolling slowdown for upgrading powerlines over I90 near George. Payment was delayed because Grant PUD staff failed to request a purchase order before the work began. Vote on this motion was originally scheduled for the June 11, 2024 commission meeting. Commissioners moved it up to speed to the vendor. For more information, see pages 30-36 in the commission packet.

— Unanimously approved $16,064 payment to Bio-Oregon for fish food for the fish-acclimation facility in Carlton, Washington. Procedural delays, which have since been fixed, on Grant PUD’s end resulted in payment delays. Vote on this motion was originally scheduled for the June 11, 2024 commission meeting. Commissioners moved it up to speed to the vendor. For more information, see pages 37-38 in the commission packet.