The Commissioners of Lewis County Public Utility District on Tuesday approved a $66.2 million budget for 2013 that does not include new rate increases for customers. But the utility may be facing higher costs in the near future.
“It’s not a standstill budget,” said Bob Geddes, manager for Lewis County PUD. “It improves the system and keeps rates low for customers.”
With the the economic recession and the fact the utility raised rates 5 percent last year in mind, Geddes said, the commissioners wanted to avoid increasing rates for customers in 2013.
But the Bonneville Power Administration has at the same time proposed a 9.6 percent wholesale power rate increase and a 13 percent transmission rate increase, which if adopted would begin in October 2013.
Because Lewis County PUD buys power from BPA, it would have to pay any approved higher rates. But Lewis County ratepayers would not incur the increase until possibly 2014, according to PUD.
“Even though they announce those numbers, hopefully we can work with them,” Geddes said.
Initially, Geddes explained, BPA was proposing a 12 to 20 percent increase.
If BPA does stay at the proposed 9.6 percent increase, Geddes said, it does not mean PUD would pass the entire cost on to customers.
“But I don’t want people to think we could absorb a 10 percent increase from Bonneville without raising rates,” he said.
Geddes said he expects a decision from BPA by next summer. Before Lewis County PUD raises rates, the utility will hold public hearings.
“We’re always going to work towards keeping rates as low as we can,” Geddes said.
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