Your PUD
News Release
Conservation is focus of second electric rate proposal
Chelan County PUD
News Release
8/18/2008
PUD commissioners Monday reviewed another draft electric rate increase designed to encourage conservation by lowering the cost per kilowatt hour (kwh) slightly for residential customers using moderate amounts of power and charging higher rates for power use that tops 3,000 kwh a month. About 70 percent of the PUD’s residential customers use an average of less than 3,000 kwh a month.
The new draft also calls for delaying any increase in electric, water and sewer rates until April 1, 2009, after peak winter use subsides. Overall electric rates would rise an average of 2.5 percent compared with the first draft of 3.4 percent discussed in June. Residential rates would increase 3.2 percent and commercial rates 1 percent. There were no changes in draft rate increases of 6.9 percent for water and 6.5 percent for sewer.
Kelly Boyd, PUD strategic financial planning director, said the new draft reflects updated financial information and suggestions from senior PUD managers and commissioners. Other factors in the updated draft include easing the impact on low-income customers, closing the gaps between costs and revenue gradually and aligning rates between customer classes and rate components with costs of service.
A review of how to close the gap between the cost of providing utility services and the revenue from rates has been under way for 10 months. Boyd emphasized the PUD has a solid financial base through 2012 under most forecasts, “But we need to keep our eyes on path to maintain that.”
Commissioners asked for a week to study the new draft before selecting rate options to present at meetings to gather public feedback in September. A decision on rates isn’t expected until October.
In other business, commissioners:
- Heard that the PUD received a clean state audit for 2007.
- Canceled the morning session of next week’s board meeting so PUD commissioners can attend the celebration of the first service by larger Horizon aircraft at Pangborn Memorial Airport. The regular business meeting will start at 1 p.m.
- Received answers from General Counsel Carol Wardell to questions from the community about the PUD’s ability to provide no- or low-interest loans to customers for solar and wind power projects; offer incentives to generate renewable power; offer help to install conservation measures to low-income customers; and what incentives are offered for SNAP (Sustainable Natural Alternative Power) producers. The information will be posted on the PUD Web site.
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The next meeting of the PUD commission will begin at 1 p.m. on Monday, Aug. 25, in the boardroom at PUD Headquarters, 327 N. Wenatchee Ave.
Most PUD commission meetings are recorded, and a link to the audio is available on the PUD’s home page at www.chelanpud.org.
Kimberlee Craig
Public Information Officer
509-661-4320, direct line
509-679-6858, cell
kimberlee.craig@chelanpud.org