Grant PUD seeks public input on rate policy changes

EPHRATA — Grant County Public Utility District customers are being invited to give their opinions about proposed changes to the rate-setting policy during August and early September. Public comments can be submitted now through the PUD website and at the PUD commission meeting Aug. 13 to start.  

Utility district commissioners decided earlier this year to review the rate policy. Currently, the policy is governed by a resolution originally passed in 2015. Chuck Allen, senior manager of external affairs and communications, said one thing won’t change. 

“The one thing that the commission is solidified on is that core customers — residential, small business, agricultural — have the priority. They will be the ones that would be first in line to receive the benefits of the Priest Rapids Project generation and also to receive power at or below cost going forward. That’s the intention of the commission,” Allen said.  

The PUD owns and operates Wanapum and Priest Rapids dams, called the Priest Rapids Project. Hydropower provides relatively inexpensive generation, and the PUD has the rights to about 63% of electricity from the two hydropower facilities. But demand has reached a level where the PUD is about to run out of its share. 

“We’re in a situation now where in 2025 we’re going to be coming very close (to using the PUD’s share),” Allen said. 

By 2026 the PUD probably will have to start looking for other sources to supplement the power generated by the dams, Allen said. Likely those will be more expensive than the electricity generated at the two PUD-owned dams. 

Currently, some rate classes, the core customers, pay less than it costs to provide electricity, and some others pay above the cost. The current policy includes targets both for customers paying more than their cost of service and those paying less.  

The revised policy also would include targets, with the assumption of a two percent rate hike each year. No customer class would experience a rate increase of more than about 22% or less than about 5% over a five-year period.  Commissioners would keep the right to review and determine targets or long-term goals.  

Rates would be reviewed every two years. Rates of non-core customers could be adjusted even in a year when there’s no overall rate increase.  

The PUD staff would try to assign customers to the most advantageous rate schedule they would qualify for, according to information presented at the July 23 commission meeting. If a non-core customer is asking for additional electricity, that customer would pay for any construction or equipment required to provide them with service.   

The revisions also include a proposal for alternative ways to charge non-core customers, contracts with individual customers being one option. Commissioners would have the option to establish a cap for any non-core customer who’s using the existing rate structure. 

Rates are determined in part by an analysis of the cost required to provide service to different customer classes. The proposed revisions keep the cost of service as one part of the rate-making process and add other factors that can be taken into consideration. Those include new regulatory requirements, business sustainability, load growth and fuel costs. The potential business risk presented by a potential customer, cryptocurrency being one example, can be considered too. 

Comments will be accepted through at least Sept. 10, with a revised draft presented to the commissioners about Sept. 24. Commissioners should vote on a final resolution by December.