Workshops and other outreach is underway to inform Grant PUD customers about a new rate strategy intended to ensure “core customers” –- residential, agriculture and small and medium-sized businesses –- receive the lowest rates possible for their electricity, while industrial rates remain competitive with the region, Grant PUD commissioners heard at their July 22 meeting.
The new strategy comes as Washington State’s Grant PUD and many utilities around the country are analyzing how to increase their energy resources as artificial intelligence, electrified transportation and a shift to cleaner energy is pushing demand for electricity to historic highs, the PUD noted.
The strategy involves charging core customers based on the low production costs of Grant PUD’s Columbia River dams, Priest Rapids and Wanapum, and charging the industrials -- the customer groups driving most of the increased demand -– based on any available low-cost energy from the dams, plus the new higher-cost energy Grant PUD must acquire or develop to meet that demand.
For core customers, this rate strategy will be known as the “Priest Rapids Project Benefit,” after the term used to describe both Priest Rapids and Wanapum dams in Grant PUD’s federal dam license.
Rates for all customer groups will continue to increase to cover increasing costs to generate or acquire and deliver their electricity. The goal is for increases to be small and predictable. Core customers will be favored with the lowest power-related cost possible. Industrials will receive a longer rate trajectory forecast for better planning and budgeting.
Plans call for changes to customers’ electric bills to better show how core and non-core customers are being charged. More precise information about rate increases should be available starting in October.
Outreach efforts include communication with service clubs and industry groups, information at the upcoming Grant County Fair, a large media campaign, customer newsletters and bill inserts.
Commissioners urged staff to “communicate a lot and communicate clearly.”
“The only thing I struggle with is the future,” Commissioner Larry Schaapman said. “If an (industrial) customer really wants to locate in Grant County, they’re going to have to know where we’re going. Rates are going up.”
“It’ll be competitive,” Commission Tom Flint said. “But it will be increasing over time.”
