PORT ANGELES — The Clallam County Public Utility District will consider an 8 percent electric rate increase in response to its principal supplier raising wholesale rates for the second time in a year.
PUD staff recommended the increase after Bonneville Power Administration raised its wholesale power rate by 5 percent Oct. 1. BPA also raised its wholesale rate by 5 percent in October 2009.
The PUD absorbed the first BPA rate hike but probably can’t absorb another one.
“Nobody likes rate increases, and it is not a decision we take lightly,” PUD General Manager Doug Nass said.
“But absorbing this second BPA wholesale power rate increase, and a cumulative 10 percent power rate increase, is not a fiscally or operationally responsible decision.”
The three PUD commissioners will conduct a public hearing on the proposal Monday at 1:30 p.m. at the PUD’s main office, 2431 E. U.S. Highway 101.
A final decision is expected Monday, Oct. 25.
PUD officials said an average customer using 1,400 kilowatt hours per month would see an increase of about $7.20 per month.
In addition to the BPA rate hikes, PUD officials said they face rising costs of operations, maintenance and technology.
“With regulatory requirements mandating efforts to ensure system and grid reliability, coupled with the pressure to implement new technology designed to increase electric efficiency, costs are simply rising,” Nass said.
The 2006 state Initiative 937 requires utility districts the size of Clallam County’s to get 15 percent of their power from more expensive renewable sources by 2020. Step-up requirements are set for 2012 (3 percent) and 2016 (9 percent).
“We are seeing utilities throughout the Northwest raising rates, and unfortunately we are facing the same challenges they are,” Nass said.
For more information on Clallam County PUD, visit www.clallampud.net.
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.
