Financial Ability to Implement Capital Improvements

By Henry Burtschi

Overview of O.I.D.'s ability to finance improvements.

It is too bad that our re-licensing process will swallow up $3-5,000,000 (yes, that's 3 to 5 MILLION dollars) in the next 2 years going through the hoops of F.E.R.C. (Federal Energy Resources Commission). The exact costs are hard to estimate--it depends on what the environmental demands from the various groups are going to be. Keep in mind that any other power company can bid for the same license, which would increase our costs as we defend our position. However, we have no choice--we need this License. In a good year, the revenue from power production of our Tri-Dam system represents 40-50% of all O.I.D. income and helps to hold our taxes in check.

Fortunately, there are some reserves remaining after this great expenditure which can be used for improvements. As your Director, I will push for better routine maintenance of the drains (eliminating flooding problems where possible) and advocate several larger scale projects that are described in "Capital Improvements".