Grant PUD rate hikes on hold

Talks planned

to restructure

rate classes

EPHRATA - A proposed 6 percent increase for Grant County PUD electrical customers won't happen in 2009.

The utility cited higher wholesale power prices and lower future expenses as the reasons to stave off rate increases.

PUD commissioners plan to review large industrial and irrigation rate classes to possibly make slight changes this year, such as incorporating some conservation incentives and combining rate classes, said PUD Commission President Tom Flint on Thursday.

"Our intent is to not have any major shifts within those rates," he said. "The irrigation rate is complicated and we've been requested to make changes with that for a long time."

A long-standing issue involves irrigators wanting the seasonal minimal charge dropped from their bills, he said.

The seasonal minimum charge is also known as a system charge for having all poles, transformers and substations available for use.

In past years, there was a small amount of power on the irrigator's side included in the seasonal minimum charge, but it is no longer the case.

"A lot of folks are not happy with the current way we do things," he said.

Another problem is churches fall within a small industrial rate and pay huge demand charges in the winter when they turn on their power for only a few days a week, he said.

There's a perception that large industrial customers such as the Quincy data centers and REC Silicon will use up everyone's power and power rates will increase, he said.

He said that won't happen because homeowners, farmers, businesses and small industrial customers will be able to use power from a large-industrial power pool.

The large industrial users will have to meet power shortfalls by paying more for PUD power or for energy obtained outside the county, he said.

Commissioners plan to meet with industrial and irrigation customers this year to discuss any changes.