Tax-Free Status of PUD Remains Intact After Commissioner Provides Input

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A commissioner for Lewis County Public Utility District worked to promote federal legislation that helps the district provide lower costs to customers.

Commissioner Ben Kostick, a member of the American Power Association Policy Makers Council, advocated to keep an exemption that allows tax-exempt municipal bonds, which are “an important tool for financing projects for public power utilities like Lewis County PUD,” according to a press release.

Kostick provided information to elected officials and staff in Washington, D.C., and was a vocal supporter of preserving the tax-exempt muni bonds, according to the release. 

“A recent statement from the current administration has deemed that the tax exemption for municipal bonds will be preserved under the broad outline of a tax reform plan drafted by key congressional republicans and administration officials,” stated the release.



The tax reform plan allows the PUD’s bonds to remain in a tax-free status, which then allows the district to pass lower costs to its customers.

“In reviewing the current statute of PUD’s bond portfolio, had the regulations been revoked, the district could have seen an increased interest expense upwards of $200,000 per year,” stated the release.

Kostick has been working as an advocate to keep tax-exempt municipal bonds for close to a decade.