PUD looks at tiered rates for industrial customers
Industrial power rates sunsets Nov. 1
EPHRATA — The Grant County Public Utility District continued a series of discussions on industrial rates during a Tuesday morning workshop. The board of commissioners also reviewed a narrowed list of alternatives and provided guidance to staff on which options should be explored in further detail.
The district's new power sales contracts for the Priest Rapids Dam go into effect on Nov. 1, which is the same date that the utility's current rate schedule for large industrial customers sunsets. The PUD board of commissioners must make a decision on industrial rates before Oct. 31, but have committed themselves to Oct. 1 to give industrial customers a 30-day window to prepare for the new rate.
During Tuesday's workshop, the PUD specifically explored concepts of a tiered rate structure for industrial customers in rate schedules 9 and 10.
The district has spent the bulk of its time in recent weeks focused on finding a successor to rate schedule 9 for industrial users and developing a rate schedule for power consumption for customers in excess of 10 megawatts. The PUD staff and board of commissioners have also been working to address agricultural food processing customers that switched their boilers from electricity to natural gas in the past, but are now considering a switch back to electricity.
The proposed tiered rate structure that is currently being examined would meet the commissioners' requirement of being revenue neutral, and should not substantially change power costs to current customers. The tiered rate structure would not favor either new or existing customers, which would be illegal.
"There's well developed law that says you can't discriminate against new customers to the extent that they're in the same rate class," PUD Attorney Ray Foianini said during a previous workshop. "The old customer has no more right to the resources than the new customer does."
A tiered rate structure within a rate class is perfectly acceptable so long as everyone within the class is treated the same, according to Foianini.
"Commissioners are diligently working through these concepts," said PUD treasurer/controller Nick Gerde in a press release. "They continue to stress the importance in finding a solution that does not discriminate against members of the same industrial rate class by treating new customers to the county differently than existing customers."
Additional public comment will be taken today from 9 a.m. until noon during a workshop that was scheduled during the weekly meeting of the board of commissioners that was held on Tuesday after the Monday holiday.
In other district business:
? At the regular commission meeting a resolution was approved to construct a top spill fish bypass prototype at Priest Rapids Dam. The lowest responsible bid was received from General Construction of Poulsbo, Wash., in the amount of $4,458,000. A prototype topspill bulkhead will be installed on a spillway gate at Priest Rapids Dam to test for the potential benefits of topspill for downstream fish passage with the goal of reducing spillway water releases at Priest Rapids Dam. Testing will begin in the spring of 2006.
The PUD is currently required to divert 61 percent of spring river flows for fish passage and 39 percent of river flows in the summer. The PUD's estimate for construction of the bypass prototype was $6.8 million.
? Commissioners also approved awarding a contract for construction of Priest Rapids adult fish trap site work. Jansen, Inc., of Ferndale, Wash., was the lowest responsible bidder at $248,400. The firm will now construct an off ladder adult fish trap on the left bank fish ladder at Priest Rapids Dam. The design of this equipment will reduce adverse effects on adult fish migration through the left bank fishway while allowing research and management activities to continue. The work will be completed by Oct. 31.
? A resolution was approved to accept contract performance by Timberline Air Service, Inc., of Monroe, Ore., for helicopter transport of juvenile salmon in 2005. Helicopter delivery of juvenile Chinook salmon to release sites on the Columbia River below Rock Island Dam and below Priest Rapids Dam was accomplished in April and May 2005. The final contract price was $212,420.
? A contract with Wilson Construction Co., of Canby, Ore., that covered work for 2003 and 2004 for major distribution power line system improvements and build out of the Zipp fiber optic system was approved. The contract covered work for the two years at an estimated total of $16,500,580. The actual amount spent was $4,905,046. The reduced amount of money used was due to the lack of fiber construction and major feeder rebuilds done by dock crews. The acceptance of performance resolution includes release of the retainage bond.