PUD delays adopting new rates
Vote postponed as district separates rates for ag food processing clients
EPHRATA — The Grant County Public Utility District's commissioners reviewed a resolution that may finalize industrial and agricultural food processor customer's electrical rates as soon as Oct. 10 during their regular Monday meeting, and they also opened the public comment period for the utility's 2006 budget.
The industrial rate proposal was set for a commission vote for Oct. 3, but will be delayed until next week because the district is separating the rate for agricultural food processing customers from the other industrial rate customers. The two were previously going to be combined.
"Staff worked closely with the commission to reach a rate alternative that is non-discriminatory while satisfying the goals of rate stability, future rate management, minimizing 'rate shock' to a customer or class, and achieving a revenue neutral financial position for 2006," said PUD General Manager Tim Culbertson in a press release.
"We believe we have achieved the district's goals with this proposal, are pleased with the results of this rate deliberation process, and look forward to working with our industrial and agricultural food processor customers in implementing the new rate schedules once the commission adopts the resolution," he said.
Larry Peterson, member of the Grant County Economic Development Council, said that the proposed industrial rates produced by staff and set for a commission vote were a significant step away from the district's long held cost of service principal for rate design.
He said that the new industrial rate will still be largely based as if it included a large amount of power from the Bonneville Power Administration, which it does not.
The new schedule produced by staff would meld existing rate schedules 9 and 10, which combine current and future customers into two industrial classes based on their capacity.
Rate schedule 10 would be replaced by schedule 14. Customers would be in this rate schedule if their maximum demand is greater than 5 megawatts and less than 15 megawatts.
A new large industrial service schedule applying to customers whose maximum demand is greater than 15 megawatts will likely be enacted as rate schedule 15.
"Agricultural food processors previously in rate schedule 80 will be assigned to a new rate schedule 17, at a rate equal to industrial customers in new rate schedule 14. New agricultural food processor boiler load charges are also included in this proposed rate schedule and will be classified in rate schedule 85," the PUD stated in its release Monday.
The boiler issue applies to agricultural food processing customers that have said they would like to switch back to electricity from natural gas. Moving to electricity has become more attractive to these customers as natural gas prices have continued to move higher. The boilers are used by agricultural food processor's in the process of canning their products.
In other district business Monday:
The commission and staff have been reviewing the $398 million proposed spending budget for 2006. The proposed budget includes all operations, maintenance and capital projects. During the month of October, the PUD staff will be reviewing the proposed budget for the public and board of commissioners.
The commissioners will be taking public comments regarding the budget at their weekly meetings and will schedule additional meetings in various Grant County communities in November. The schedule and locations of the meeting have not been finalized, but the locations being discussed for the meetings have included Moses Lake, Royal City and Coulee City.
Grant County residents are encouraged to attend the public meetings on the 2006 budget.
"A final budget for 2006, including the costs of approved PUD programs, will be adopted in December after commissioners consider comments from the public hearing," the PUD stated.