Grant County electric rates to increase by 6 percent

EPHRATA — Starting in February, Grant County PUD electric rates increase by 6 percent, followed by 8 percent rate hikes in 2012 and 2013.

Increases of 8 percent in 2014 and 2015 are expected to follow.

Grant PUD commissioners unanimously approved the increases for the years 2011 to 2013 after a day-long workshop this week, two public hearings this month and additional talks last fall.

How the rate increase is spread across rate classes hasn’t been determined. More discussion takes place at Monday’s commission meeting.

Some factors in the increases include updating aging equipment at the PUD’s dams, expensive federal license requirements, borrowings to fund the work and electric system upgrades.

“Whenever you have to increase rates, especially during other than ideal times, it will be painful for me and some of our customers,” said Bob Bernd, commission president, on Wednesday.

Commissioners also unanimously approved a $2.5 million reduction from the PUD’s proposed 2011 budget.

Eliminating the proposed $2 million in fiber work is not part of that reduction, Bernd said.

The cuts take place in both operations and maintenance, in the hydro and electric systems, but further specifics aren’t yet known, said Sarah Morford, a utility spokesperson.

Another factor in the budget and rate increases are below average stream flows for the past two years. Less water means less power is produced at the PUD’s dams.

The effects of the recent snowfalls on stream flow levels won’t be known until next year.

The reports don’t usually come until the first of the year, Morford said.

The commission hears the results of an employee compensation survey Monday.

Bernd said he doubts if the results would affect a future vote on rates because the amount wouldn’t be significant enough to change a rate increase.

Even if the survey shows some employees are overpaid, he’s sure it will report that some workers are underpaid, he said.

Budget cuts beyond the $2.5 million are unlikely.

“We looked some more at possible capital cuts, but as commissioners, we didn’t feel that we felt comfortable getting into the nuts and bolts of it and micro manage the district,” Bernd said.

A final budget must be approved by the end of December.