Covid-19 impacts illuminating

CHENEY – Impacts of Covid-19 played a part in the budget presentation made by the Light Department at the City Council’s Oct. 27 meeting.

Light Department

While noting the department’s fee structure was stable, Light Department Director Steve Marx acknowledged they are likely to see a 10 % reduction in revenues from reduced activity at Eastern Washington University. Usage charges from the university represent just short of 20 % — $1.98 million — of the department’s projected $9.99 million 2021 budget.

Marxx said so far in 2020 the university has used $1.85 million in electricity through September, and generally averages $150,000 a month from October – December. Councilman Ryan Gaard asked if fewer students on campus, and perhaps in the city, due to Covid-19 restrictions and reduced enrollment at the university could impact what the city sees in power revenues.

“I don’t think this is going to be a show stopper with Eastern at 10 %,” Marx said.

Finance Director Cindy Niemeier said while seeing some electrical usage decline, property managers city officials have spoken to in Cheney indicate they were not seeing large vacancy rates from decreased student enrollment. A decline in power consumption would also impact utility taxes more than power revenues, which would impact the city’s general fund.

She also noted the city had begun tracking utility revenues back in March when coronavirus impacts first began hitting the country, addressing a question from Gaard on when the 10 % reduction actually started.

Just over 37 % of Cheney’s power revenue — $3.7 million — comes from residential usage, followed by EWU and then commercial at $1.28 million, 12.81 %.

Marx said Light Department revenues remain “solid,” despite some losses due to decreases in construction fees and the loss of a bitcoin business last year. Market rates from the Bonneville Power Administration — where the city buys about 16 megawatt hours (MWh) of power — and the Northwest Requirements Utilities — where Cheney can purchase up to 1 MWh — are steady, he added.

Marx ticked off a list of accomplishments for the department in 2020, including continuation of the city’s tree-trimming program around power lines, installation of an overhead power system at the Commerce and Industrial Park and some rehabilitation projects, including at City Hall, which is owned by the department. Projects contemplated for 2021 include Cheney substation upgrades, continuation of the tree trimming and pole replacement work, improvements to the Finance Department and Utility Building offices and an ambition, five-year plan to install advanced metering infrastructure (AMI) in the city.

Marx said currently, a meter technician drives a minivan around reading meters – including water – with handheld device. If the technician needs to perform a service turn on or turn off, he has to get out of van, break seal, lift and pull out.

“It’s a lot of manual work,” Marx said. “This (advanced metering) will alleviate that. Sometimes there could be up to 125 of those a day that he has to do, cut ins, cut outs.”

AMI is smart meter system. Up to eight meters can be connected to a control station that the enables reading, turning service on or off, to be performed from a desk in an office. The system also updates itself every five minutes.

“You can see surges, you can see what’s off you can see if an electrician detaches power from the mast, and it allows you to operate from an office,” Marx said.

The system is spendy, however. At $175 per meter, and with over 6,000 meters in the city, Marx tabbed the total price tag at about $1.4 million, a figure that includes implementation.

Inland Power implemented such a system five years ago, Marx said, and he wants to begin 2021 by bringing in a consultant to take a harder look at how the system will align with finance and water department needs as well.

“So you’re looking at close to $200,000 a year if you want to do something like this,” Marx said. ‘But I think we need the conversation to start looking at seriously.”

John McCallum can be reached at [email protected].