New PUD 'emerging industries' rate class proposed

EPHRATA — Grant County PUD customers will have the opportunity to give their opinion on a proposed new rate class for “emerging industries” at the July 10 PUD commission meeting. The public hearing is scheduled during the business meeting, which starts at 1 p.m.

Comments are being accepted now on the district’s website or by mail, and will be accepted at least through July 24. The vote on the proposed rate class tentatively was set for the July 24 commission meeting.

Jeremy Nolan of the PUD’s accounting department detailed the rate proposal at the regular commission meeting Tuesday. If approved by commissioners, the goal is to have the new Class 17 on the rate schedule by Oct. 1, Nolan said.

The proposal was prompted by a flood of inquiries and requests for service that began in summer and fall 2017. Many of the inquiries came from customers involved in cryptocurrency operations.

Cryptocurrency can be a large commercial operation, or it can be set up in a residential area, like a shed. For customers in residential areas that qualify for Class 17, the basic electricity charge would be $1.04 per day, plus 13.7 cents per kilowatt hour. In answer to a question from commissioner Dale Walker, Nolan said that charge would apply to all electricity used by the customer. So a customer who was running an operation at a residence that qualified for Class 17 would pay Class 17 prices for all electricity used, at least right now.

The PUD currently is installing meters that can measure energy use more accurately, and as that project is finished, the rate structure will be adjusted, said chief executive officer Kevin Nordt. Cryptocurrency mining uses a lot more electricity than normal household activity, and the new meters are able to tell the difference, said chief financial officer Dave Churchman.

For Class 17 customers that use more than 200KW, the basic charge would be $1,000 per month and 7.09 cents per kilowatt hour. Those customers also would pay a demand charge, $6 per kilowatt during the billing period.

Walker asked what would happen to current customers who would qualify for Class 17. Nolan said they would go into Class 17, once it’s established.

Utility district officials have deferred acting on requests for inquiries about service for potential Class 17 customers while the rate structure was reviewed. But customers are still out there. “We’ll see if there’s a change” as the new rate class structure is implemented, Nordt said. “We haven’t seen anything (change) yet.”

“I think the pace of new inquiries has definitely slowed down,” Churchman said. But cryptocurrency market conditions have changed, he said.

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