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GRANT COUNTY PUD RATES

| December 3, 2009 8:00 PM

Ag Power Users of Grant County was formed last year to represent the Irrigators in Grant County in working with Grant County PUD, speak with one voice and present factual information about this industry.

For the five year period, 2004-2008, Irrigators in Grant County used 16% of the power sold in the county by GCPUD (Retail Sales). Irrigators paid an average of $.0311 per kWh. The average for all Retail Energy Sales for this same time period at GCPUD was $.0309. Irrigators pay slightly above the average price for their power.

Agriculture in Grant County, which is dominated by Irrigated Agriculture, is the backbone of the local economy and is its largest industry especially when you add all the associated businesses. Agriculture in Grant County is directly and indirectly responsible for over 50% of the jobs and almost 60% of the economic activity in Grant County.

Looking into the future, Irrigated Agriculture will use a lower percentage of GCPUD Retail Power Sales. As more power from our dams is sold in the county, Retail Sales of electricity will increase. Power use by Irrigators will remain flat, as any increase in irrigated acres will be offset with power savings from more efficient pumps and conversion form deep well irrigation to pumping water from the East Low Canal. We could see the current 15-16% of power used by Irrigators drop to 10-12% of GCPUD Retail Sales.

Meanwhile, the economic contribution from Irrigated Agriculture in Grant County will continue to increase. We will see a continued shift from commodity crops to higher value specialized crops, and we will see more supporting businesses locate here to supply inputs to growers and use the crops grown for value added products. Irrigated land values will continue to increase which will increase the tax base in Grant County. Every time the tax value of irrigated land increases $100/acre, it is like a new $50 million industry locating in Grant County. This “so called” new industry is located throughout the county benefiting all the junior tax districts, does not require any additional services and doesn’t use any additional GCPUD power. All taxpayers in Grant County benefit from a lower rate.

Past, present and hopefully future GCPUD Commissioners have recognized the importance of Irrigated Agriculture in Grant County. They have given Grant County Irrigators a competitive advantage compared to neighboring utilities. This philosophy has served our county well and is an important part of the economic diversity we enjoy in Grant County.

Dan Miller

President, Ag Power Users of Grant County