Brewer running for third term as PUD commissioner

EPHRATA — Terry Brewer said PUD commissioners have to plan for the long term. Brewer is running for a third term as Grant County PUD commissioner.

He is being challenged by Judy Wilson, Moses Lake. Wilson declined an in-person interview.

“What we do today matters 30 years from now,” Brewer said. “I feel strongly about maintaining the financial stability, the good customer service and reliability for generations into the future.”

Rates, rate policy, reserves and the PUD’s financial picture are a perpetual topic of discussion, and Brewer said PUD commissioners debate those questions too. “We have a significant amount of cash at the PUD. That’s been discussed and debated whether that’s the right thing to do or the right level of cash among the commission as long as I’ve been there.” Brewer estimated the current cash reserve is about $500 million.

At the same time electric rates have been rising at an overall rate of two percent per year since 2014. (While the overall increase is two percent, different rate classes may see different rate increases.)

Brewer said a large cash reserve, rate increases and capital spending are interrelated. “We have an enormous amount of (capital) expenditure going on every year that I’ve been on the commission.” Some of the district’s capital projects were mandated – Brewer estimated the PUD spent about $300 to $400 million on the relicensing process.

Other expenses are a result of expansion, projects like new transmission lines and new and expanded substations, to accommodate more customers. Utility district commissioners also opted to take on some major capital projects, including replacing or refurbishing turbine and generator units at Wanapum and Priest Rapids dams.

Current PUD indebtedness is about $1.3 billion. “I don’t apologize for that. We needed to spend this money.”

The substantial cash reserve helps the PUD qualify for lower interest rates when borrowing money for its capital projects. The PUD does not, Brewer said, have enough money to pay for the continuing projects year over year. Once the reserves were spent the PUD would have to turn to customers to pay for infrastructure and expansion, he said, which would mean substantial rate increases. He wouldn’t support that, he said.

Traditionally PUD rate increases were across the board; that may look fair, he said, but in his opinion it’s not. Utility district managers conducted a study to determine the cost of providing service, and determined that some classes were paying less than it cost to provide service, and some were paying more than it cost to give them service. Across-the-board increases make those discrepancies worse, he said.

“The residential customers are the largest class of customers in our county (and) they should share in the greatest benefit, the greatest benefit being subsidized rates,” Brewer said. In addition, businesses might not be willing to build or expand in Grant County if the rates are too far out of balance.

Brewer said he supports the PUD’s fiber program. The current five commissioners all are in favor of continuing the buildout, he said. “I feel once we started it, we need to finish it. It should be available for all customers who want it.”

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