(PASCO, WA) -- The Franklin PUD Commission voted unanimously today not to raise rates in 2016.
In July 2015, consistent with the recommendation of staff and our Rate Advisory Committee (RAC), the Board of Commissioners approved a 3% rate increase effective September 1, 2015 and a second rate increase of up to 5% effective May 1, 2016 with the understanding that the RAC would meet again to discuss and evaluate the PUD’s 2015 financial results.
The RAC met this past February and reviewed the revenue requirement assumptions and 2015 financial results. Their recommendation to the Commission, along with staff, was not to implement any rate action in 2016, foregoing the approved 2016 rate increase of up to 5%.
Franklin PUD buys about 85% of its power from Bonneville Power Administration (BPA), the Pacific Northwest’s largest energy marketer. Power costs represent nearly 70% of the annual budget for the utility. Franklin PUD is pleased that no rate action has to be taken in 2016 and we will continue to look for ways to cut internal costs wherever possible to keep rates as low as possible. In addition, we will continue to monitor external programs and provide feedback to BPA on programs that continue to put upward pressure on customer rates.
