Commission recap 8/13/2024 — New rate structure to address power-supply costs. More...

Grant PUD is planning to bring in more power resources to serve Grant County customers in 2026. Before that happens, staff is working with the commissioners to reaffirm the long-standing policy that core customers – residential, agricultural, and small business customers – will be the first supplied with low-cost power generation benefits provided by the Priest Rapids Project (PRP).  

Commission policy dictates the following non-core sectors -- industrial, food processing, evolving industry, and commercial electric vehicle charging – would receive any remaining PRP generation resources after core customers’ power needs are met. These non-core customers would also pay extra costs associated with new power resources required to serve their load. 

Ty Ehrman, Chief Customer Officer, said the Rates and Pricing group will work with the rest of the Grant PUD team to firm up this policy draft. Once it is reviewed and affirmed by commission, work would begin to determine the appropriate costs incurred for PRP power and then allocate that cost on a kilowatt hour basis annually as part of each customers’ rate.  

He added that staff is considering having the incremental non-PRP power charge elements showing up as separate line on every customer’s bill. Non-core customers would be subject to having incremental power charges displayed as an additional kilowatt hour expense on their bills. Core customers would have zeros associated with the incremental power-supply costs, because they would not be subject to the additional charge. 

Commissioners said they would like to continue exploring the recommendations from staff on rate-making policy during their upcoming workshop on Tuesday, Aug. 20 at 1 p.m. at 30 C Street SW and invited customers to attend and give feedback. They also plan to discuss the concepts during their Aug. 27 and Sept 10 commission meetings.  

For presentation materials, See page 1 of the commission presentation packet.   

Commissioners set October public hearings for Grant PUD’s 2025 budget

Grant PUD Commissioners reviewed the preliminary budget for 2025 and set two budget hearings for October.

The preliminary 2025 budget, presented to the commission by staff from the Finance Department, calls for an overall increase in the total budgeted expenditures line item of $10 million compared to the adopted 2024 budget. The additional spending in 2025 will cover increasing costs, expanding services, and infrastructure investments. 

The preliminary budget does result in a $194 million change in net position, up from $119 million budgeted for 2024.  Change in net position is an accounting term reflecting revenues less certain accrued expenditures and non-cash depreciation. Not included in the change in net position are required debt principal payments and funding for capital expenditures. Total projected capital spending for 2025 is estimated at $253 million and total debt service principal at $31 million.   

Commissioners also set two public hearings on the preliminary budget for Oct. 8, one at 2 p.m. and the other at 6 p.m. in the Commission Room of the Ephrata PUD Headquarters building at 30 C Street SW. Both would have an option for the public to attend in person or remote via a teleconference with a website at grantpud.org/commission-meetings. 

After the public review process and more engagement with staff, the commissioners are expected to adopt the final 2025 approved budget before the end of this year. 

To learn more about the preliminary budget, see page 61 in the commission packet. Hear the discussion at 1:09:42 on the commission audio.

Commissioners also:

• Approved Resolution No. 9060 to take advantage of existing market conditions to refund a series of “Build America Bonds” early for an approximately $500,000 to $600,000 average annual cashflow savings, plus the release of nearly $9.9 million in reserves set aside until the bonds were paid off. They also seek to tender and refinance two earlier bond issuances at a better rate for estimated savings of just over $2 million. See page 8 to 18 of the presentation materials. of the commission packet for more details.

• Received a quarterly report from the Dam Safety group. View the full presentation on pages 8 to 18 of the presentation materials. 

• Received a quarterly report from the Enterprise Technology Organization. View the full presentation on pages 21 to 32 of the presentation materials.