Crescent Bar lease hikes recommended

EPHRATA — Grant County PUD staff recommended Monday that Crescent Bar leaseholders pay significantly higher rents to align with fair market values, and additional fees.

PUD commissioners are scheduled to vote on the recommendation April 19.

A plan and schedule for the island is then submitted to the Federal Energy Regulatory Commission (FERC).

FERC has the final say because decisions about the island are tied into FERC license requirements for the PUD’s Columbia River dams.

FERC granted a license to the PUD to own and operate its dams in 2008. The utility is required to follow license requirements.

In some cases, rent would more than double for residents if the recommendation is approved to renew leases for 11-year lease agreements.

Some of the fees are associated with water and sewage treatment upgrades.

The additional monthly fees are mitigation/impact fees of $100 and a cost recovery fee of $1,400, according to Kelly Larimer, a Grant PUD land and recreation manager.

She said the staff recommendation “is a reasonable alternative” to become compliant with FERC’s stance on the island’s residential use.

She also called the plan “very preliminary.”

She said FERC is aware of the PUD’s schedule and process and is committed to acting on the matter in a “timely fashion.”

Heather Trautmann, with a group representing condo leaseholders, said her mortgage is currently $1,000 per month, not including other expenses.

Her rent could more than double to $2,500 per month, according to the presentation.

Trautmann said it seems as if the proposed numbers are “very high.”

Condo owners do want to participate in the costs, but she had no idea they would be this high, she added.

Trautmann also said their attorney spoke with a FERC representative.

From that conversation, Trautmann claimed FERC had no intention of precluding residential uses of project lands.

On March 10, FERC issued a letter stating that having people live on the island is against its policies.

Dick Peterson, president of the condo group, said they are already paying a surcharge for sewer upgrades.

Wendell Black, of Entiat, said he attended the meeting on his son’s behalf because he’s a leaseholder and “so we have a good understanding of the issues.”

The property has been in their family since 1983.

Black said the utility has legitimate costs it has to pay without passing it on to other ratepayers.

Grant PUD commissioner Greg Hansen asked staff about the cost recovery fee.

“Looking at their point of view, $1,000 per month is quite a bit of money to put into that infrastructure,” he said. “Is the intention for them to pay for the system before they leave?”

Larimer said the figure will likely change. Non-project uses will be paid for by leaseholders. The amount stated is just their portion for that time frame.

She added that the PUD didn’t want to be involved with gifting of public funds.

“If you charge the numbers we’re seeing, you’re not going to have anyone here,” said Grant PUD commissioner Randy Allred. “How many millions are we going to be required to spend, to recoup nothing?”

Grant PUD commissioner Terry Brewer said there are certain things the PUD must do to enhance public recreation on Crescent Bar Island.

“We’re going to be spending money there, whether there’s one person there, or 2,000,” Brewer said.

Grant PUD commission President Bob Bernd said the FERC is requiring the utility to submit a plan on how it will carry out requirements at Crescent Bar Island.

“None of us created this problem as individuals,” he said. “We inherited it. It falls on our plate to make some difficult decisions.”

Grant PUD Commissioner Tom Flint called the situation a “no-win for everyone.”

Monday was the start of a two-week comment period, in which the public can submit comments responding to the staff recommendation.

To submit comments electronically, visit www.gcpud.org to access a comment form.

Comments can also be submitted by e-mail to commissioners@gcpud.org, or via mail by writing to PO Box 878, Ephrata, 98823.

The public is also welcome to comment during the next two upcoming commission meetings, on April 5, and April 12. Both meetings begin at 1 p.m.