PORT TOWNSEND — Jefferson County Public Utility District commissioners have approved a timber harvest in Port Ludlow, heard an update on a broadband pilot project in East Quilcene and discussed rate increases scheduled to start July 5.
The Public Utility District (PUD) commissioners on June 6 unanimously approved harvesting timber from 6.5 acres around the Port Ludlow substation.
There had been concern that some of the trees on the 9.91-acre parcel could potentially fall on and damage the substation, as well as create a risk for wildfire.
The harvest was anticipated to yield 140 board feet of lumber valued at $146,760.
Commissioner Jeff Randall asked Scott Bancroft, special projects coordinator, if that number was the net amount the PUD could expect to receive.
“That doesn’t include what the timber harvester will take for his or her work — that’s generally between 40 and 50 percent,” Bancroft said. “The PUD will see about 50 or 55 percent.”
Bancroft said the PUD would manage the site as it did with similarly cleared properties it owned.
If the PUD did not approve harvesting the acreage, it would still need to clear the area directly around the substation, Bancroft said; that would incur expenses with very little return.
The Olympic Corridor Fiber Project that will expand broadband access across Jefferson County will start with a pilot project on the Bolton Peninsula between Quilcene and Dabob bays, Will O’Donnell, broadband and communications director, told commissioners. Installation will then expand to the entire project area.
“We’re using this project to work through some bugs and get our legs under us, and then take what we learn and expand it to the rest of the area,” O’Donnell said.
The pilot project will greatly improve service for the 200 residents in the East Quilcene area, O’Donnell said.
“It’s got some of the slowest internet in the county,” O’Donnell said. “With luck and good planning and some hard work, we hope to have that entire area up and running and all of those customers connected to our new network at the end of November.”
The entire project is slated to be completed in July 2024.
Commissioners also unanimously approved the purchase of $572,595 in broadband equipment, including network interface devices, pedestals, splice cases and splitter cabinets from Wesco.
Rate increase
General Manager Kevin Streett reminded the board the next rate increase will occur July 5 as specified in the rate schedule.
The schedule can be found at https://jeffpud.diligent.community/document/ddbdc114-adbb-4fbf-9b8d-adeb5757ebf8.
However, those rates will need to be reconsidered because, over the next couple of years, the PUD will spend more than $6 million updating the Quilcene substation, a project that will increase the capacity for that area as well as backfeed the Port Ludlow and Chimacum substations.
“This is just an update to let the public know we have brought it to the board and some of that discussion will be at the meeting on June 20, and then we’ll have a bigger discussion on July 5,” Streett said.
Commissioner Dan Toepper said he wanted to know more details about reevaluating the rates.
“Obviously, we’re going to stick with the [current rate schedule],” Toepper said. “Our reserves, where we wind up at the end of the year, we’re all watching that closely. What’s the idea for a complete new rate study moving forward?”
Streett said there are a number of reasons the PUD needed to start the process of taking another look at its rate schedule fairly soon.
“Based on our new costs today, we need to redo our cost of service study,” Streett said. “It’s important we reevaluate where we are because labor rates are 25 percent higher than when we set our rates. Our rates were based on 2019 costs, and they just aren’t applicable anymore.”
Commissioner Ken Collins said he agreed the PUD needed to consider reevaluating its rates to keep up with inflation and other expenses.
“We need to revisit the numbers and do what we need to do because we continue to expand our staff,” Collins said.
“And when you look at the cost of a transformer being $750,000 and the need that we have to replace and strengthen the resiliency of our system, what that says pretty emphatically is that, if we’re going to meet the need, then we have to plan on spending more money and we have to educate the public on why we are needing to have increases in our rates.”
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Reporter Paula Hunt can be reached at paula.hunt@soundpublishing.com.
