Grant PUD rate increases start Monday
Sarah Kehoe/Columbia Basin Herald<br> Grant County Public Utility District commissioners approved a 4 percent rate increase for customers, implemented April 1.
GRANT COUNTY — Grant County PUD Commissioners approved the implementation of a 4 percent rate increase to take effect April 1, at the latest board meeting.
To the average residential customer, the increase means an extra $2 per monthly bill. The increase was adopted during the 2010 budget process to help secure the utility’s financial health.
“This was a well thought-out decision that came from a very deliberate process not taken lightly,” said Dorothy Harris, PUD public information officer. “It came from about two years of discussions between the commissioners.”
Other monthly rate increases for Grant PUD customers include $8 for commercial, $20 for irrigation, $275 for large commercial, $4,300 for small industrial, $19,000 for large industrial, $2,800 for agriculture food and $4,400 for agriculture food boiler.
The increase is expected to generate roughly $4 million in revenue for the district in 2010. The increase protects the district’s bond rating, as they anticipate the need to borrow around $800 million over the next five years to make improvements and fund capitol projects.
The district can receive higher ratings from bond agencies by demonstrating a willingness to increase rates to maintain a healthy financial position. Higher bond ratings mean lower interest rates for borrowed money to fund priority projects, Harris explained.
“It’s the commissioner’s responsibility to make sure that the utility continues to be reliable and strong financially as we go into these upcoming years,” Harris said. “It’s not an easy decision to make a rate increase, but it will help everyone in the long run.”
The largest drivers for the rate increase include the replacement of aging infrastructure at Priest Rapids and Wanapum dams and capital projects tied to electric system growth and reliability. The replacements are a requirement associated with the district’s 44 year Federal license, adopted in 2008.
About $300 million has been spent on these projects already.
“We’ve experienced considerable growth in the area,” Harris pointed out. “We need to upgrade transmission lines and all other things it takes to support energy growth in Grant County.”
The energy load growth increased by 31 percent since the district’s last rate increase approval in 2003. Around this time, inflation significantly outpaced rates.
“It’s never an easy decision to raise rates, but the risk of not taking this action is unacceptable,” stated Bob Bernd, commission president. “The commission is committed to providing reliable service at the lowest possible cost. By adopting this relatively small increase, we are working to avoid double-digit rate increases in the future.”
For more information visit www.gcpud.org or call 509-754-0500.