Discussions continue on PUD industrial rates

Rates to be determined by Oct. 1

EPHRATA — Discussions will continue next week on new power rates for industrial customers of the Grant County Public Utility District, while PUD officials take in information presented to them Tuesday on rate alternatives.

PUD analysts presented three different alternatives for industrial rates during Tuesday's three-hour rates workshop, but PUD Commissioners said they wanted to digest the different options before making a decision.

"This doesn't have to be a timeshare sales pitch," PUD analyst Keith Knitter said after presenting the proposals, "you don't have to decide today."

Knitter and other analysts presented three alternatives for industrial customers during the meeting, attended by PUD staff and representatives from the industrial community. Two of the three alternatives would either put all industrial customers on the same rate, or utilize separate rates for agricultural food processors and other industrial customers. A third alternative would be similar to the way industrial rates are calculated now, with separate rates for each of the different classes of industrial customers.

Knitter said the third option would be to adopt a rate schedule similar to what it is today, just redefining those rates. He added that variations of the three options could also be calculated by PUD analysts.

New power sales contracts go into effect Nov. 1 for the Priest Rapids Dam, the same day that current industrial rate schedules sunset. Commissioners must make a decision on industrial rates before Oct. 31, but have set a deadline for Oct. 1 to give industrial customers 30 days before implementation of the new rates.

Once the PUD commission gives direction on the new rates, Knitter said analysts will come back with a rate proposal.

Knitter pointed out during his presentation that most of the customers that would be impacted by new rate schedules are not yet customers of the PUD. PUD Manager Tim Culbertson said with that in mind that one caveat to rate changes is that there needs to be the same treatment for new and existing industrial customers.

"What we have to do is make sure that it's a non-discriminatory rate," Culbertson said.

Culbertson said another goal for the PUD is to remain revenue neutral, no matter which plan they pick. Culbertson said he would like to take some time with PUD staff and run each of the options by PUD attorney Ray Foianini before the next meeting.

Commissioner Bill Bjork commented to staff during the meeting that people he's spoken to recently have asked that the commissioners decide on a consistent rate.

"The new schedule we adopt will provide the same level of revenue we currently produce and should not radically change power costs to our customers," Bjork said in a news release following the workshop.

Commissioner Tom Flint echoed those comments, saying that from the people he's talked to, rate stability is one of the most important factors for a new rate. But Flint admitted that each solution would have pros and cons to it.

"Any time you switch anything from the way you've been doing it," he said, "there are going to be winners and losers."

PUD staff will again meet with commissioners to discuss the proposed rates at 10 a.m. Tuesday in the PUD headquarters in Ephrata.