Lewis County PUD Manager Chris Roden, left, and PUD CFO and Treasurer Brad Ford shared the task of presenting information related to a proposed rate increase during the PUD's second rate hearing Tuesday morning.
Lewis County PUD Manager Chris Roden speaks about a proposed rate increase during the PUD's second rate hearing Tuesday morning.
Ed Rothlin, the newest member of the Lewis County PUD commission, listens during a public hearing on a proposed electricity rate increase Tuesday morning.
Lewis County PUD Commissioner Ben Kostick, far right, speaks while commissioners Ed Rothlin, left and Tim Cournyer, center, listen during a public hearing Tuesday on a proposed electricity rate increase for 2020.
While social media posts on proposed Lewis County PUD rate increases buzz with strong opinions, few ratepayers — two in fact — chose to submit formal comments to the utility.
Two members of the public spoke briefly on the rates at the second of two public hearings scheduled on the topic Tuesday morning at the Public Utility District’s Chehalis headquarters. Both asked the utility to find a way to balance the budget without asking ratepayers for more money.
PUD commissioner Ben Kostick said no members of the public showed up at the first hearing two weeks ago in Morton, and no written comments had been received by the PUD as of Tuesday morning.
Despite the lack of feedback, Kostick praised the utility’s transparency in the 2020 budget process.
“This process started back in April or May with the budget process,” Kostick said. “The budget did start much higher. Some things were cut, some things were deferred, but there are some things that just can’t be deferred.”
He also said he hoped the board would consider getting input from a citizen board during next year’s budget process.
In order to balance its $82 million 2020 budget, passed in September, PUD staff have proposed no increases to the daily or demand-based charges, but increases to the kilowatt hour (kWh) rate of 4.75 percent for residential, industrial and irrigation customers, $2.73 percent for tier 1 commercial customers (using less than 15,000 kWh per month) and 10.55 percent for tier 2 commercial customers (using more than 15,000 kWh).
Customers will see a rate increase proportional to the amount of power they use, with the maximum increase being the percentages listed above, explained PUD Treasurer Brad Ford. A customer who uses less power will see a lower increase in their power cost.
The average residential customer, using 1,400 kWh per month, will likely see a monthly increase to their bill of $4.43, Ford said.
A number of factors led staff to ask for rate increases, Ford said, including increased costs from the utility’s main power supplier, the Bonneville Power Administration, requirements to purchase renewable power, a drop in revenue from selling its surplus power, a drop in revenue from power conservation efforts and a need to upgrade its fleet of vehicles.
“Reliable service requires people, goods and materials,” Ford said. “They all cost money.”
PUD staff plan to do a comprehensive rate study in 2021 to revamp the way it bills customers.
“There’s a lot of work that needs to be done on rate design,” Ford said.
PUD Manager Chris Roden added that the way the PUD rates are set up — not necessarily the amounts, but the strategy the PUD uses to charge for its services — is “out of step with how the market is functioning.”
The PUD commission is scheduled to vote on a first reading of the new rate schedule on Nov. 19 and a second reading on Dec. 3, both at its regular 10 a.m. meeting time in Chehalis.
