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Commission adopts electric rate increase
12/15/2010
EPHRATA, Wash. – Grant PUD commissioners unanimously approved a motion to implement a six percent electric rate increase in February of 2011 and eight percent increases in 2012-2013. In 2014 and 2015, the utility anticipates eight percent increases that will be implemented as needed based on financial performance.
The decision to increase rates was made during an all-day budget workshop Tuesday and follows months of discussion, including two public hearings.
“This was a very difficult decision for the board,” said Grant PUD General Manager, Tim Culbertson. “Raising rates is never easy. Commissioners took every opportunity to listen to staff, the public and each other. In the end, they modified the amount of the increase for 2011, based on that feedback.”
As part of the budgeting process, commissioners had originally considered eight percent increases for 2011 through 2015.
The largest driver for the rate increase is the rising cost to produce power from the utility’s Priest Rapids and Wanapum dams. Cost increases are related to the replacement of aging infrastructure at the two facilities and the requirements associated with the utility’s new, long-term license. Additional borrowings to support this work as well as upgrades to the electric system are anticipated in the 2012-2015 timeframe.
Commissioners have yet to determine how to allocate the six percent rate increase across the utility’s customer classes. They will begin discussions on this topic during their regular commission meeting on Monday, Dec. 20.
In related action on Tuesday, commissioners also directed staff to cut an additional $2.5 million from the utility’s proposed 2011 budget. The board must adopt a final budget by the end of December.
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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
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