PUD rates for ‘emerging industry’ discussed

Commissioners will make decision in early 2020

EPHRATA — While most Grant County PUD customers won’t have a rate increase in 2020, the “emerging industries” class will, although the increase won’t be as much as originally anticipated.

The emerging industries class was established in August 2019, following a flood of requests for, and inquiries about, electrical service. Louis Szablya of the PUD’s “large power solutions” department said filling all the requests would’ve tripled the PUD’s customer base.

Many of those requests came from cryptocurrency businesses, but chief executive officer Kevin Nordt said at the time that similar requests may come from other industries in the future. The emerging industries class (Class 17) was the result.

Some cryptocurrency business owners contested the decision by filing suit against the PUD in federal court. The case is pending.

Utility district officials conduct an annual review of industries included in Class 17 to determine whether or not they still meet the criteria. The review looks at how much power that industry consumes (concentration risk), whether or not the industry is growing or viability, and whether or not it will be subject to new regulation.

Szabyla said requests from both cryptocurrency businesses and data centers were more than five percent of the PUD’s total, which made them concentration risks. But the number of cryptocurrency requests declined during the period reviewed.

Cryptocurrency did meet the PUD’s criteria to stay in the emerging class, he said. Because emerging industries carry more risk, the rates were set higher than other industry classes.

But because there are fewer requests for service from cryptocurrency businesses, the proposed rates for 2020 are lower than first projected. Depending on the business location, the proposed rate will be about 6 cents per kilowatt hour, or 10 cents per kilowatt hour. Originally the rates were projected to be about 8 cents per kilowatt hour or 13 cents per kilowatt hour.

Szabyla said PUD employees will be talking to Class 17 customers to explain the proposals and the reasons behind it. Utility district customers are being invited to comment on the proposal, and it will be reviewed again once the comment period has closed. It will be brought back to PUD commissioners for approval in early 2020.

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