A new year will bring a bump in electricity and water/sewer rates for Clallam County Public Utility District customers.
PUD commissioners voted on Dec. 12 to approve a budget of nearly $7 million for 2017 that sees a 3.8-percent average increase in retail electric utility rates and a 7-percent average retail rate increase for water and sewer customers
“Rate increases are never popular, but our strategy of having low and predictable increases creates stability for customers as they budget,” PUD General Manager Doug Nass said. “We take great pride in our utility’s reliability, great customer service, all while maintaining some of the lowest electric utility rates in the state and country.”
The retail electric rate increase is equal to about $4.48 per month for the average PUD residential customer using 1,200 kWh per month, Michael Howe, PUD communications and government relations manager, said.
The actual retail electric rate increase will be applied as an increase of 10 percent per month on the customer’s base charge and about 2 percent on kilowatt hours used, for a total 3.8 percent increase.
A PUD customer paying $114.29 now would pay $118.77 after April 1.
Rate increases are effective on all bills rendered on or after April 1, 2017.
For Clallam PUD, weather is responsible for almost all usage and revenue variations, Howe said. Since 2014, the area has seen warmer than usual weather, resulting in decreased revenues for the PUD. Other rate pressures include Bonneville Power Administration’s planned wholesale rate increases of 3.5 percent set for October 2017, plus added costs of meeting the mandates of Washington’s Energy Independence Act (formerly known as I-937), and escalating personnel costs such as health care coverage.
In October 2015, the Bonneville Power Administration increased rates by about 6 percent; this represents the largest cost for the PUD at about 43 percent of the total budget. For this increase, staff and board commissioners decided to divide extension of this rate impact over the course of two years instead of one, keeping with the philosophy of providing stable rates, Howe said.
In part, the 2017 PUD rate increase is attributable to both the 2015 and 2017 BPA wholesale increases, he said.
Water rate hikes, pressures
The PUD’s water system faces challenges related to aging infrastructure, limitations on capital financing and regulatory mandates, Howe said.
“The water utility is separate from the electric utility and it is must be managed as such; with a smaller customer base and aging infrastructure, these rate increases are necessary to not only maintain the system but also to make certain we are able to deliver the quality water expected,” Nass said.
The water system rate increase was approved at 7 percent for each of the next three years (this average includes an 8-percent base charge increase and a 6-percent increase on usage). Rate increases are effective Feb. 1, 2017.
Current PUD customers paying $61.83 for their water bill would pay $66.17 after Feb. 1.
The PUD’s sewer systems are similar in challenges to that of the water system, Howe said. The sewer system rate increase was approved at 7 percent for each of the next three years. Rate increases also are effective Feb. 1. A PUD customer paying $45.60 for sewer services would pay $48.79 after Feb. 1.
About 30,000 residents used PUD’s electric services, while 5,000 used PUD water and 60 used PUD sewer.
Other board action
PUD commissioners also voted to approve their 2017 Strategic Plan and board reorganization. Effective Jan. 1, Ted Simpson is president, Hugh Haffner is secretary and Will Purser is vice president.
For more information about the PUD, visit www.clallampud.net
