Grant PUD to examine neighboring irrigation rates

Irrigators' power bills difficult to understand, Grant PUD treasurer says

EPHRATA - Recent rate talks prompted Grant County PUD staff to study Big Bend Electric Cooperative's irrigation rates for new ideas on addressing the utility's complicated rate structure.

For Grant County irrigation customers, two main issues are the complex rate structure based on the amount of horsepower used and a seasonal minimum charge used to include power.

In July, Grant PUD commissioners decided to hold off on rate increases for all customers, but study possible rate structure changes for irrigation and industrial customers.

Grant PUD General Manager Tim Culbertson said last week to about 30 farmers there are no rate increases planned for 2009 and added the utility is fortunate to have two dams.

Grant PUD Commissioner Randy Allred commented about Big Bend Electric's board, which includes irrigators and asked why Grant PUD didn't look at their irrigation rates.

"I've heard compliments and talked to farmers served by Big Bend and hear 'why can't you just be like Big Bend'?" Allred said in part. "It's not just in this county, it's in other counties where those farmers have accounts."

At the end of the workshop, Culbertson suggested staff pull examples of Big Bend's rates for Grant PUD customers to see how they compare.

Another irrigator rate workshop was tentatively set for Sept. 10.

Quincy irrigator Larry Williamson said that seasonal-minimum contracts between farmers and the utility "disappeared" in 1991.

"That should have been a contract honored for life," he said.

Grant PUD commission President Tom Flint said the utility had to offset the cost of spilling water when the salmon issue came to the forefront.

Grant PUD treasurer/controller Jim Bunch presented an example of replacing the seasonal minimum charge with a monthly charge of $2.35 per kilowatt hour, and three energy blocks with one energy charge.

For 14 ranges of customers using different horsepower amounts, there was a wide a range of rate variances. The variances started at negative 30 percent and climbed to a 20 percent increase, which was shown for customers using the highest amount of horsepower.

"If we change this rate structure in any way, there will be variances to some degree," Bunch said.

Royal City irrigator Rich Callahan pointed out how some commissioners promised to eliminate the seasonal minimum in their campaign literature.

"This looks like a redistribution," Callahan said.

Allred, who is running for his seat in the general election, said the rate workshop was not a campaign meeting.

"What would the price be with the same rate?" asked Soap Lake farmer Tim Ray. "It seems like it's way too complicated."

Coulee City farmer Phil Isaak commented about how there was no credit given to those who paid for irrigation extensions like himself.

"No matter what you say, it's a rate increase to us," Isaak said.

Williamson said he paid for his extensions for over 35 years and his neighbor hooked on for free.

Don Schmauder of Wilson Creek, a former candidate for the PUD commissioner at large position opposing incumbent Flint, said irrigators worked on rate issues in 2004, but were told to wait until 2007 or 2008 for any changes because of more available project power.

Culbertson said there's no way to withdraw more project power because of increased loads.

Former PUD employee Doug Burk said the irrigation rates need to reflect the cost of providing the service. There's no justification of decreasing irrigation rates, he added.

Burk claimed a previous 5 percent irrigation rate decrease was self-serving to farm commissioners and select customers.

Allred corrected Burk and said the decrease was applied to a demand charge at that time that was three times higher. The decrease was only three-tenths of 1 percent and four-tenths of 1 percent, Allred said.

Burk apologized for saying the wrong percent and said he was told the decrease was 5 percent.

At the end of the meeting, Williamson reminded the audience they were missing the point.

The PUD still needs to collect $16 million in irrigators' rates, he added.

"Without agriculture, you won't have processors," Williamson said. "Without processors, you won't have jobs. We've had some bad years. We were making bets about who would die off."