Temporary Grant PUD rate cut to be discussed

EPHRATA — Grant County PUD commissioners will discuss a temporary 4 percent rate cut for residential, irrigation, and small and medium commercial customers at its June 9 meeting.

If approved, the rate cut would be in effect from July 1 through the end of 2020.

The temporary cut was proposed by Commissioner Dale Walker. He asked PUD financial managers for an analysis of the impact of a 2 percent, 4 percent and 6 percent temporary reduction.

Residential (rate class 1) customers would be eligible and so would businesses in class 2 and class 7. For businesses, the rate class is determined by electricity use, which in the case of class 2 and class 7 is less than industrial customers or large businesses. Irrigation customers (class 3) also would qualify.

Walker said the analysis determined a six-month reduction for those customer classes would cost the PUD about $2 million.

At the May 26 PUD commission meeting, Walker said there would be a cost. “It’s a six-month downturn in revenue for us,” he said.

But in his opinion the PUD can afford it.

“We’ve always come in over our (revenue) projections by $2 million to $3 million dollars and this is going to be about a $2 million (reduction) for the PUD,” Walker said. “We don’t get ourselves in any bad financial situations by any stretch of the imagination, And it does allow us to do something for the people of the county.”

Walker said he would make a proposal at the June 9 commission meeting.

“I’m going to bring forward the motion that we go with a 4 percent reduction. That was what our rate increases were over the last couple years,” he said.

Commissioner Larry Schaapman said he was concerned about the long-term impact, at a time when the PUD’s income is declining.

“The (income) trend is downward, which doesn’t make me comfortable,” he said.

Schaapman said the impact of the proposed reduction would be minimal for individual customers. He estimated a $4 maximum savings if the electric bill were $100 for the month.

Commissioner Judy Wilson said she would need more time to study the proposal.

“I’m certainly not against it,” she said.

Commissioner Tom Flint said a time limit “makes it a little more appealing to me.”

Schaapman said the PUD has other programs to help customers. He cited the Share the Warmth program, where customer donations are used to help other customers pay their electrical bills.

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