Centralia Council to Consider City Light Rate Hike

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At Tuesday’s Centralia City Council meeting, members of the public will have the opportunity to voice their opinions on a proposed rate increase for Centralia City Light services. 

The increase of 4.8 percent annually for the next three years, according to the agenda report, will focus on the basic charge.

The current rate proposal will increase the in-city customer charge per month from $13.39 in 2015, to $17.39 in 2016, $21.39 in 2017 and $24.39 in 2018. The energy charge per kilowatt-hours would also increase slightly.

For residential properties outside of the city, the rate would increase to $19.11 in 2016, $23.50 in 2017 and $26.79 in 2018. 

The rate for businesses, public street lighting and security lighting would also increase.

If the ordinance is passed, the new rates would go into effect with the August billing. For subsequent years, the increases would take effect during the March billing cycle. 

After the public hearing, staff’s recommendation to the council will be to approve the increases, according to the agenda report. 

The proposed increases are a result of a rate study conducted by the city and The FCS Group in late 2015, according to the city. 

The rate study’s primary purpose was to incorporate the changes necessary to align City Light’s rates with ongoing increases from Bonneville Power Administration, the contractual power provider through 2028. 



The BPA rate for power increased by 7.1 percent for 2016 and the rate change for transmission costs increased 4.4 percent. BPA has already started planning for the fiscal 2018 rate increase, stated the agenda report. 

Other projects have also contributed to the proposed rate increase. 

The new Salzer Substation and related projects will supply power to the Centralia Station development through two refurbished distribution lines. The project, along with the Federal Energy Regulatory Commission requirements for the Yelm Hydro Project, general utility operating costs and the replacement of aging City Light infrastructure was factored in as well.

The combination of the projects and the BPA’s rate increases leave City Light “in a tenuous financial position without the proposed rate increase,” stated the agenda report. 

With two outstanding bonds, City Light’s only other option is to cancel the substation and associated projects that support Centralia Station, stated the agenda report. 

The new higher rates proposed follow an increase passed by the Lewis County PUD last year in June. Rates were increased 6 to 7 percent, in part due to the cost to purchase power from BPA. 

The City Council meeting will be held at 7 p.m. at Centralia City Hall, 118 W. Maple Street.