Commission Recap, 9/24/24 - Commissioners give a nod to proposed rate strategy

Thursday, 26 September 2024

This week's commission meeting took place at the Hydro Office Building near Wanapum Dam.

Reminder! Hearings for 2025 budget are Oct. 8

Grant PUD Commissioners will hold two public hearings for the 2025 budget on Tuesday, 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 have an option for the public to attend in person or remote.

The 2025 preliminary budget calls for $367.8 million in expenditures with a forecasted change in net position of $192.3 million. This represents a $20.7 million increase in expenditures and a $73.6 million increase in the change of net position compared to the 2024 adopted budget. The additional budgeted expenditures in 2025 are necessary to address the rising costs associated with expanding services and infrastructure improvements. The increased budgeted expenditures include $236.5 million in operations and maintenance and $253 million in capital.

To learn more about the preliminary budget and for information on how to attend virtually, see https://www.grantpud.org/commission-meetings#publichearings.

Commissioners give nod to proposed rate strategy

After several months of discussion, public outreach, and deliberations between staff and each other, Grant PUD commissioners told Chief Customer Officer Ty Ehrman and the PUD’s Rates and Pricing group that they were generally supportive of a revision to the utility’s guiding rate policy that was presented during the staff report section of their meeting.

The draft changes reflect commission policy that “core” customers – residential, ag, and small business – are first in line for the benefits of power generated by Priest Rapids and Wanapum dams (The Priest Rapids Project) and that their power rates would be at or below Grant PUD’s cost to serve them. 

Some of the changes state that:

Core customers will have preferential access to the low-cost power supply resources from the Priest Rapids Project

Rates would be assessed at least every two years

Grant PUD would put customers in the rate that is most advantageous for the customer that they qualify for

Rate changes would occur in small, predictable increases as directed by the commission. Allocations per rate class would be no less than 0.5 times and no more than 2 times the proposed overall rate increase.

Non-core customers would have the surplus Priest Rapids Project power allocated to them.

Cost of service analysis would be one factor in determining rates, but societal goals and commission policy would also be other factors.

The commissioners are expected to have the proposed changes on an agenda for their review later this year and then take formal action on the changes by the end of the year.

To learn more about the proposed changes, see pages 102 to 114 of the presentation materials. Hear the full discussion at 3:26:00 on the commission audio.

Commissioners also:
Approved two contracts with Siemens Industry, Inc., not to exceed $1.5 million for professional services agreement for engineering services. See page 9 of the commission packet.

Approved a contract with S&C Electrical company for professional engineering services not to exceed $750,000. See page 47 of the commission packet.

Received a report from Dam Safety about a proposed change order on a contract with Cornforth Consultants. See pages 115 to 125 of the presentation materials. Hear the full discussion at 48:26 on the commission audio.

Received a quarterly report from Integrated Operational Services. See pages 46 to 78 of the presentation materials. Hear the full discussion at 1:20:51 on the commission audio.

Received a quarterly report from Operational Excellence. See pages 79 to 101 of the presentation materials. Hear the full discussion at 2:16:00 on the commission audio.

Received a Public Power Industry Outreach report from External Affairs. See pages 31 to 45 of the presentation materials. Hear the full discussion at 2:53:37 on the commission audio.