Hansen decries business power rates

GUEST EDITORIAL

EPHRATA — The public is not being told all the facts surrounding our dwindling power supply and financial concerns published in recent articles.

Much is being said about all the new large industrial companies moving in and expanding, creating jobs. Companies like REC, SGL, Microsoft and other server farms in the Quincy area with more companies coming. Our ridiculously low industrial power rates and customer service policies for large industry is the main driver that is depleting our power supply.

Grant PUD is now out of its portion of physical power from our hydro project. This rate of growth is unsustainable and is causing undue financial strain on our utility. Increasing power cost is being caused by capital improvements at hydro and a smaller volume of river flow.

The main problem in the utility now is our dwindling revenue and cash position in the future. Aggravating this problem is the low industrial rates which lowers our revenue and cash but also puts a burden on the PUD to develop new power resources so the large industrials can continue to enjoy the low rates they’ve become accustomed to. New power resources will cost three to four times more than our project power and the cost will most likely be spread over all rate classes.

Building new infrastructure to accommodate the new industrial growth also puts a strain on capital requirements.

Out of control industrial growth also increases our requirements under I-937, which requires the PUD to acquire more renewable resources based on its increasing load.

The recent state sales tax exemption given to the server farms was hailed as a big boost to our local economy but it is another punch in the gut to the PUD to come up with the additional low cost power to serve their expansion. Our cheap industrial power is being oversold with no end in sight. The financial portion that we receive over and above the physical portion from our project will also run out in a few years.

If industrial rates are not raised to slow down the consumption of our power supply the core users, residential, irrigators and general service, will be paying much higher rates over and above the rate increases due to increasing project cost.

A resolution was passed stating the core users will be protected by guaranteeing them project priced power when all is used up, but unless it is reflected in the rate schedule it means nothing.

Several of the PUD’s main problems can be fixed by raising industrial rates.