New PUD rate class decision delayed

EPHRATA — Grant County PUD commissioners will delay a decision on a new “emerging industries” rate class to give PUD employees more time to come up with options for existing customers. That decision followed almost two hours of public comment at the commission meeting Tuesday.

The vote on the Class 17 rates was tentatively scheduled for the July 24 meeting.

Establishment of the emerging industries class followed a flood of inquiries and requests for service in Grant County, about 2,000 megawatts, which is about three times the PUD’s existing average county-wide load. About 75 percent of the requests were from businesses and individuals involved in the cryptocurrency industry.

Tuesday’s public hearing drew many people involved in cryptocurrency and its underlying technology, blockchains. Of the 19 people who testified at the public hearing, 17 expressed concerns about existing businesses being reallocated to Class 17.

Many of the inquiries for new connections fall into Class 7 in the existing rate structure. The new Class 17 would be almost triple the rates of Class 7. Some speakers proposed allowing existing businesses to stay in the rate class they’re in now (a process called grandfathering), or pay a bond up front in recognition of the risk to the PUD. Others argued businesses which have operated by the existing rules – and operated responsibly – shouldn’t be penalized or forced out of business.

Two people spoke in favor of the rates as proposed, saying blockchain operations have the potential to use up a scarce resource without providing much in the way of jobs or other economic benefits.

Commissioners said they didn’t want to ruin operations of existing businesses. “We have said we’d work to avoid rate shock,” said commissioner Tom Flint. “I’m not for grandfathering folks in, but for allowing an industry to adjust.” Commissioner Bob Bernd suggested revising Class 17 to include a category for existing businesses. But commissioner Dale Walker said the district could open itself to a lawsuit by establishing two different rates.

Commissioner Larry Schaapman said blockchain businesses already in operation don’t present the same risk as new operations. He said he wanted additional time to think about the rate proposal. Commissioner Terry Brewer said from the testimony, the blockchain operations provide good jobs, which he didn’t want the county to lose. The PUD needs to find a way to work with existing businesses, he said.

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