Fiber subject of lengthy Grant PUD discussion

WANAPUM DAM — What to do with the Grant County PUD fiber program, almost but not quite finished, was the subject of a 90-minute discussion at the regular meeting of the commissioners Tuesday. The discussion was the latest step in a year-long study – “a good hard look,” said chief executive officer Kevin Nordt – of the fiber system, its cost and the chances of finishing it.

About 20 people attended the meeting to listen to the discussion.

The fiber network is available to about 70 percent of the PUD’s customers. The remaining 30 percent are mostly in rural parts of the county, more difficult – and more expensive – to reach.

“The bottom line is, we don’t have extra funds to dedicate to this (the fiber buildout)” without a rate surcharge of at least 2.5 percent, in addition to the 2 percent rate increases already planned, said Dave Churchman of the PUD accounting department.

Currently the PUD is in the middle of a two-decade project to upgrade turbines and generators at Wanapum and Priest Rapids dams. Work has been completed at Wanapum, and the upgrade of the first of 10 turbine-generator units is underway at Priest Rapids.

“The district would love to be in a better position, where we could fund this internally,” Churchman said, But given the budget targets, PUD employees came to the conclusion the only way to fund the fiber buildout would be through a rate surcharge.

Customer surveys showed most are not in favor of continuing the fiber expansion if there’s a rate surcharge.

“I’m more struggling with the fairness issue,” said commissioner Tom Flint. All PUD customers already are paying for fiber, he said. “And then to go ahead and tack on more money, it just doesn’t feel right to me.”

In addition, “I’m not sure that we’ve looked at all the options,” Flint said. “I’m of the opinion there’s probably some revenues that we have that we can maybe think about using.” Nordt said existing revenues already have been allocated. If the PUD reallocated money, commissioners and staff would have to find other ways to fund the original project, said commissioner Bob Bernd.

In the past the PUD has paid for some operations with surplus electrical sales, but the wholesale market has changed, Nordt said. “In the long run we are seeing low wholesale prices in what looks to be a heavily oversupplied market for decades,” he said.

Utility district employees recommended seeking other sources of revenue, federal or state grants being an example, or looking for outside partners. If the district’s financial picture changes money could be allocated to the fiber project.

The network could be expanded to those areas where customers are willing to pay the costs, according to the summary prepared by PUD employees. Utility district employees are working to increase the number of customers already in the area served by fiber, and have increased it to about 48 percent, Churchman said.

The PUD will increase the fee charged to wholesale fiber customers by $3, and add a retransmit fee.

Cheryl Schweizer can be reached via email at education@columibabasinherald.com.