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August 24, 2009

Commissioners consider rate changes for electric service
Discussion kicks off 2010 budgeting process

EPHRATA, WA – Grant PUD commissioners reviewed the utility’s preliminary 2010 budget Monday, which includes a potential electrical rate increase.  The utility’s last rate increase was in 2003.

By state statute, Grant PUD is required to file a proposed budget of the predicted financial transactions for the coming year on or before the first Monday in September.  The preliminary budget of $552 million will continue to be reviewed and revised with staff and public input before being adopted by the commission in December. 

The preliminary budget includes an unspecified percentage rate increase intended to offset the utility’s use of reserve funds that supplement revenues received.  Commissioners will discuss the level of the potential increase as part of the finalizing the utility’s 2010 budget.  Any adopted rate increase would not take effect until sometime in 2010.

“Power produced at Wanapum and Priest Rapids dams is getting substantially more expensive as the result of costs associated with implementing the utility’s new license and rebuilding 50 year-old turbines and generators at the dams,” said Grant PUD General Manager, Tim Culbertson.  “Today’s budget and rates discussion with the commission began a dialog that will identify steps to meet the increasing revenue requirements to implement these large capital intensive projects.”

Grant PUD received a new long-term license to operate Priest Rapids and Wanapum dams in 2008.  The terms of the license direct the utility to make investments in excess of $1 billion in rebuilding aging infrastructure at the utility’s two dams and providing protection to natural and cultural resources, including constructing and operating fish hatcheries and adopting and implementing shoreline and recreation management plans.  The expenses associated with these projects increase the cost of power produced at Grant PUD’s hydroelectric facilities for Grant County residents and are needed to keep the projects maintained over the 44-year term of the license..

“Although included in the utility’s preliminary budget filing, the details of a rate increase have not been decided,” said Commission President, Terry Brewer.  “Over the next few months, the commission will deliberate the need for a rate increase, the size of the increase and how it should be implemented across the utility’s customer rate classes.  Hearings will be established to ensure that the public has an opportunity to weigh in before the board takes a final vote.”

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Grant County Public Utility District is a Washington state municipal corporation that began electric service in 1942.  Owned by the people it serves, Grant PUD generates and sells electricity to Grant County residents and millions of customers throughout Central Washington and the Pacific Northwest.  The Priest Rapids Project, comprised of Priest Rapids and Wanapum Dams, produces nearly 2,000 megawatts of clean, renewable and reliable electricity – enough to supply a city the size of Seattle.  A leader in science based technology; Grant PUD is committed to finding effective measures for the protection, mitigation and enhancement of salmon, steelhead and other natural and cultural resources.

MEDIA CONTACT:
Sarah Morford
(509) 754-6633 / smorfor@gcpud.org