(Pasco, WA) January 22, 2013 On January 22, 2013, the Franklin PUD Board of Commissioners heard several rate options from staff and the Rate Advisory Committee to raise retail power rates. Options included a 4.9% or 8% rate increase effective May 2013. Several other rate changes are also being considered. This increase will be the first for the PUD since two rate decreases in 2007 and 2008, and holding retail rates level since that time.
The rate increase is primarily due to the rising costs of power. Increased wholesale power costs from the Bonneville Power Administration (BPA) and reduced revenues from surplus power sales are the main driving factors for the increase. The PUD buys about 85% of its power from BPA, the Pacific Northwest’s largest energy marketer.
In October 2011, BPA’s wholesale power rates increased an average of 7.8%. Then in November 2012, BPA proposed another 9.6% average wholesale power rate increase and a 13% increase in its transmission rates.
Power costs and taxes represent nearly two-thirds of the annual budget for Franklin PUD. Increases in wholesale power costs are projected to impact PUD costs cumulatively by approximately 8.8% over the next two years, but rates will be adjusted each year based on current cost estimates at that time. A series of public meetings will be scheduled in February and March to take public testimony. The Franklin PUD Commission is expected to make a final rate decision by March 26, 2013.
