Chelan PUD Forecasts Strong 2026 Finances Amid Rising Costs

Chelan PUD unveiled its preliminary budget at its meeting Monday.

READ MORE: Chelan PUD Joins Markets+ to Boost Revenue

Operating Costs Expected to Rise 9%

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The PUD said its financial outlook remains strong with a positive bottom line of around $128 million. However, operations costs are expected to increase by about 9%, and operating income from surplus energy revenue is expected to decline by 9% due to lower market price predictions.

Major Projects Driving Expenses

Operations costs are increasing due to major projects, including: A spillway modernization and repair at the Rock Island Dam costing $11.9 million, a contract to trim trees and shrubs a safe distance away from powerlines costing $4.4 million, and $9 million for continued maintenance of hatchery programs and facilities.

Upgrades Aim to Boost Reliability and Fire Resilience

Chelan PUD is also focusing on capital projects, which include two new substations, the Bavarian Substation in Leavenworth and the Bridge Street Substation in Wenatchee.

he PUD is planning on performing a major rebuild of the transmission line delivering power to Lake Wenatchee and Plain to increase capacity, build fire resiliency, and increase reliability. The PUD is also modernizing both powerhouses at Rock Island Dam to increase the lifespan of generating units.

Budget Hearings Continue Into December

The PUD will fine-tune the budget figures before the second budget hearing Nov. 17. The board is scheduled to vote on the final 2026 budget Dec. 1.