The Board adopted a balanced 2027 budget of about $599.8M in expenditures against $602.6M in projected revenues, with no planned rate increase and expenses down 5%. Staff reviewed the large-load study process (including data centers), emphasizing customer-funded upgrades and potential collateral/commitments. Don Pedro is about 93% full; October pulse flows are planned.
Staff reported a balanced 2027 budget requiring no rate increase and highlighted a bond refunding projected to save ratepayers over $7.7 million (NPV). Transmission & Distribution capital of $33.7 million was presented (down $1.9 million), with ~1,200 new meter sets forecast. Power supply costs were lower: purchase power down ~1% and fuel down ~21% vs. 2026.
Groundwater use management and well mitigation programs are moving toward January 2027 implementation, with each management area developing action plans to meet allocation criteria. Don Pedro Reservoir sits at 93% capacity, though end-of-season projections are roughly 10 feet lower than last year. A new development fee schedule is being introduced to shift engineering and administrative costs from irrigation ratepayers to urban development projects, with a public hearing in late August.
The 2026 irrigation season is underway; Don Pedro Reservoir is near 95% capacity with about 1.9 million acre-feet in storage. Staff noted possible 100°F temperatures could increase demand. Staff reported the Cooperstown off-stream reservoir feasibility study is essentially complete, and Vice President Bohr said an updated report will be routed to the full board soon.
Despite critically low snowpack at 18% of average, Don Pedro storage is ~92% with an improved year-end forecast. Baker Tilly issued an unmodified clean opinion; two recurring material weaknesses remained unchanged. The Board honored former Director Dr. Tom Van Groningen (d. Apr 28; 20 years of service); celebration of life May 30. Three directors were present (Byrd, Keating, and the Board President); Directors Boer and Ott were absent.
