Your PUD

Cost of Service and Rate Design

As part of the PUD's strategic planning, commissioners looked at the cost of service and rates for electric, water and wastewater services.

In February 2008, the board reaffirmed principles established during strategic planning in 2006-2007 which call for establishing rates equitably and reducing the current gaps between costs and revenues for the services.

Setting policies and objectives was step one of a five-step process. Other steps included:

Estimate revenue requirements
Perform cost-of-service study
Design rates
Implement and communicate rate changes

The cost-of-service study was completed in 2008. PUD commissioners reviewed and commented on two sets of options for how rates are set and how much it costs to serve different types of customers such as residential, commercial and industrial. Commissioners also held three public meetings to gather comments from customers. A new rate design was adopted in October 2008 to go into effect in April 2009 but implementation was delayed following Financial Contingency Planning in 2009 that led to a rate surcharge.

Meetings

Oct. 20 - rate hearing - Wenatchee