Clallam County PUD #1 (PUD) Commissioners voted to approve the 2016 Budget during the Dec. 14, 2015, Commission Meeting. As part of that budget approval, Commissioners approved a staff recommended 3.8 percent increase in retail electric utility rates and a 6 percent retail rate increase for water and sewer customers.
The retail electric rate increase is equal to about $4.20 per month for the average PUD residential customer, using 1200 kWh per month. The actual retail electric rate increase will be applied as an increase of $2.50 per month on the customer’s base charge and approximately 2 percent on kilowatt hours used, which all totaled is approximately 3.8 percent overall.
Example of an average electric bill: Current $110.10; with the rate increase it would be $114.29
For Clallam PUD, weather is responsible for almost all usage and revenue variations. Both 2014 and 2015 have been unseasonably warm, which has resulted in a significant revenue decline. Other rate pressures include anticipated Bonneville Power Administration wholesale rate increases of approximately 8 percent each biennium, the added costs of meeting the mandates of Washington’s Energy Independence Act (formerly known as I-937), and personnel costs that include escalating health care costs as a result of federal legislation.
In October 2015 the Bonneville Power Administration (BPA) increased rates by approximately 6 percent. This represents the largest cost center for the PUD at about 44 percent of the total budget. Staff and Commissioners decided to divide extension of this rate impact over the course of 2 years instead of just one, which keeps with the philosophy of providing stable rates. Additional BPA rate increases are expected in 2017 and 2019.
Water Rate Pressures
The PUD’s Water System faces challenges related to aging infrastructure, limitations on capital financing, and regulatory mandates.
The water system rate increase was approved at 6% for the next year.
Example of an average water bill: Current $42.00; with the rate increase it would be $44.50
Sewer System
The PUD’s Sewer systems are similar in challenges to that of the Water System. The sewer system rate increase was approved at 6% for the next year.
Example of an average sewer bill: Current $40.00; with the rate increase it would be $42.40
Total Customers in each utility: Electric, 30,000; Water, 5000; Sewer, 60
The approved electric retail rate increase will be effective on all bills rendered on or after April 1, 2016, which includes all usage since the customer’s prior bill. The water and sewer retail rate increases will be effective on all bills rendered on or after February 1, 2016, which includes all usage since the customer’s prior bill.
For additional information on the PUD, visit www.clallampud.net.
