Rate study focus of Grant County PUD discussion
EPHRATA — An onion storage facility and how old and new customers – especially new energy-hungry customers – will fit into the future was a topic of discussion at the regular meeting of the Grant County PUD commission Tuesday.
The onion storage shed is in the planning stages. The customer “was told that he won’t be able to get (electrical) service until this study is done,” said commissioner Tom Flint. The study in question is a review of rate classes.
The study was prompted by a flood of requests for service from new customers, more than 50 requests, mostly in summer and fall 2017. General manager Kevin Nordt said in earlier presentations that the requests would double the current demand for electricity. The PUD couldn’t meet that demand without a major expansion of its system, Nordt said.
As a result PUD officials have embarked on a study of customers and rates and how to approach future demand and supply.
Normally an onion storage facility would fall in class 2, the commercial class. However, “there’s a power usage (limit) that kicks you out of (class) 2 into (class) 7,” said commissioner Larry Schaapman.
Class 7 has seen a lot of action, or a least a lot of inquiries. Nordt said in earlier presentations that about half the new service inquiries are from traditional industries, and about half from companies involved in blockchain technology.
A blockchain is a kind of digital accounting sheet. It can be shared by all people or companies involved in a transaction, and it can be updated by anybody involved, at any time.
But it uses a lot of electricity. Grant County, class 7 and low PUD rates are very attractive as a result. And as a result of that, PUD officials want to work on rate classes, and maybe revising them, before trying to process all those requests.
“I thought we kind of at least talked a little bit about our existing customers and core folks would be able to continue on as normal,” Flint said. “And if we haven’t done that, we probably need to have that discussion.”
Nordt said PUD commissioners did talk about it, and decided that classes 1 (residential), 2 (commercial) and 3 (irrigation) could continue as normal. But if the onion shed is in class 7, there’s a problem with the appearance of fair treatment, he said. If an ag project is allowed to proceed when others have to wait, that could leave the PUD open to charges of preferential treatment.
Schaapman said in his opinion some ag operations are misclassified. “Let’s drill in on an ag class. It’s more than just irrigators,” he commented.
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