by
Rachel Hansen | Nov 19, 2024
After three months of discussion, Chelan PUD commissioners approved two more years of small, annual rate increases. (Starts at 01:03 of the board audio recording)
The rate plan represents a 3-4% increase per year, effective in June 2025 and June 2026. That means the average residential customer will pay an extra $2 on their monthly electricity bill. Water and wastewater customers will pay about $3-4 more on their monthly bill, based on average use.
The goal is to gradually increase rates to keep pace with the cost of providing service. Between 2018 and 2024, the cost to generate and deliver electricity has increased from about $100 a month per customer to $153 per month. The average monthly electricity bill rose from $55 to $66 per month.
The small, annual rate increases are an extension from the 2020-2024 strategic plan. In a survey, customers said they prefer small rate adjustments over time, rather than large increases.
Chelan PUD keeps residential electricity rates low with revenue from selling surplus energy produced at its dams. As the gap widens between the cost to produce electricity and what customers pay, it puts more pressure on power sales. That reliance on power sales creates a higher risk of larger rate increases in the future to cover costs.
Starting in August, Chelan PUD hosted three public meetings around the county, and a public hearing Sept. 16. Since then, commissioners have studied details of the proposal and discussed the rate structure of each utility service – electricity, water, wastewater and wholesale fiber.
Commissioners unanimously approved the two-year rate plan extension as originally proposed. The board will continue to discuss long-term rate planning as part of the utility’s strategic visioning process and board policy work.
The 2025 annual budget, which includes the rates adopted Monday, will be considered for approval Dec. 2.
In other news, commissioners:
- Heard an update on Imagine 2075, Chelan PUD’s 50-year visioning effort. A draft plan will be ready for public review later this month at chelanpud.org/imagine2075. (00:17)
- Approved funding to support the next phase of the Southwest Power Pool’s Markets+ effort to develop a day-ahead and real-time energy market in the Northwest. In funding Markets+, Chelan PUD helps advance a day-ahead and real-time market design that sends clear investments signals, establishes good governance, and supports reliability through incorporation of the Western Resource Adequacy Program. The PUD’s share is estimated to be $1-2 million depending on the total number and size of other participants. (00:53)
- Met Dan Koch, Chelan PUD’s new chief operating officer. He has over 30 years of experience in engineering, project and construction management, and utility management. His most recent position was at Puget Sound Energy, where he served as vice president of energy delivery. (01:40)