PUD rates may increase by $7
EPHRATA - Electrical rate increases above the planned 4 percent are now part of public discussions during Grant County PUD budget hearings on Dec. 6-7.
It appears that the average residential customer could see an increase of $7 per month on their power bills next year, said Sarah Morford, a commission spokesperson.
The commission knows the district needs roughly $7.8 million in revenue for 2011. It's not known how much each rate category will pay to make up the difference.
Nothing is final, as commissioners won't adopt rate increases until the end of the year, she said.
Commission president Bob Bernd said he wasn't part of the consensus to move the idea forward.
"My feeling, is that it was too high," he commented.
He said he believed commissioner Randy Allred agreed to it.
The only ones to speak in favor of the idea were commissioners Tom Flint, Terry Brewer and Randy Allred, Bernd said.
Earlier in the day, Moses Lake retiree Jeff Powell asked commissioners to take the situations of retirees like himself into account during their decision making.
"It hurts and I'm not getting enough money to make up the difference," Powell said. "It sounds like 4 percent was a good deal and now we're looking at 12 and 14."
Bernd said the issue brought perplexity to the commission and they struggled with it.
Dennis Conley, of Ag Power Users of Grant County, said the commission's credibility is somewhat damaged if increases go beyond 4 percent.
He recommended commissioners adopt the 4 percent increase in January, instead of April as planned, and have further discussions in 2011.
Conley said he didn't think the PUD could "wait until the eleventh hour" with such a large increase.
David Bailey, of the Grant County Industrial Alliance, also spoke. The alliance includes food processors, industries and data centers.
"Most of our accounts are preparing budgets in September and October," Bailey said.
Those businesses still don't have a good idea of what the rates are in 2011, he said.
If the PUD wants to raise rates, Bailey recommended the district instead approve a surcharge.
Bailey recommended commissioners pass the budget, then see what the water year and surplus sales come to.
Moses Lake retiree Chris Nilsen said he had nothing against the 4 percent increase, but asked if there was a way the PUD could have compromised between a rate increase and decreasing costs.
About three years ago, most major corporations went through a huge downturn, laid off people and reduced overhead costs.
He said a 10 percent increase wouldn't be anything for him because he has a newer home, as opposed to people living in older homes or those with lower-paying jobs.
Tim Culbertson, the PUD's general manager, said most of the additional jobs at the district were devoted to rehabilitation work at hydro.
Requirements of the PUD's new license also account for additional spending.
Another factor is the increased project cost from $12 to $14 per megawatt hour, to about $30 per megawatt hour.
The demand for power is also growing, from 400 megawatts a year ago to today's total of nearly 500 megawatts.
The PUD is also building more substations and must construct a new $43 million transmission line to deliver hydropower.
The budget hearings are set for 2 p.m., Dec. 6, at PUD headquarters in Ephrata, located at 30 C St. SW. A second meeting is at 6 p.m., Dec. 7, at the PUD's Moses Lake location at 312 W. Third Ave.