(PASCO, WA) -- The Franklin PUD Commission voted today to
implement a rate action increasing revenue by 4.9%, including changing the
residential basic charge to $21.45 per month effective May 1, 2013 and May 1,
2014.
At the Franklin PUD Board of Commissioners meeting, the
Commissioners heard several rate options from staff to raise retail power
rates. Options included a 4.9% revenue
increase beginning May 1, 2013 and likely another 4.9% revenue increase in
2014, or an 8% revenue increase effective May 2013 and likely not another
additional increase in 2014. In either
case, this increase will be the first for the PUD since 2005, over eight years
ago. Two rate decreases were also
implemented in 2007 and 2008.
The rate increase is primarily due to the rising costs of
power. Increased wholesale power costs
from the Bonneville Power Administration are the main driving factor 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. The BPA increases were after similar increases in 2009.
Power costs represent nearly 60% of the annual budget for
Franklin PUD. Increases in wholesale
power costs are projected to impact PUD costs cumulatively by approximately 8%
over the next two years. 2014 rates will be adjusted based on cost estimates at
that time.
