Snohomish PUD rates up again
Published 9:00 pm Thursday, September 6, 2001
By Sharon Salyer
Herald Writer
Electricity rates for residential customers in Snohomish County and on Camano Island will go up 18 percent Oct. 1 to cover a sharp spike in wholesale power costs.
The increase unanimously approved by the three Snohomish County PUD commissioners Thursday will raise bills from about $96 to $504 a year, depending on usage.
Charges will increase to 8.4 cents per kilowatt hour during winter billing months of Oct. 1 to March 31 and 8.1 cents a kilowatt hour during summer months. Consumers now pay 7.1 cents per kilowatt hour during the winter and 6.8 cents per kilowatt hour during the summer months.
The commissioners promised to review power rates every six months for the next several years to see if they can be lowered.
PUD officials said they were forced to increase rates because of a 46 percent price hike from the region’s power distributor, the federal Bonneville Power Administration, which also takes effect Oct. 1. Electricity from BPA provides the majority — up to 80 percent — of the PUD’s power.
For this reason, the PUD faces a power bill increase of its own: $5.2 million more a month, which tallies up to $62.7 million a year.
This is the second power hike approved this year. Residential rates went up 33 percent in January, the first wave of power rate shakeout caused by regional power shortages, triggering spikes in rates.
Comments from the public over the rate increase made during several recent meetings were split between those who said they understand the need to raise rates, even if they don’t like it, and those who said that many area residents, such as low-income and elderly residents and those in all-electric homes, simply cannot pay more.
"We already are in rate shock territory," Linda Everett of Sultan told the commissioners Wednesday. "That can’t go on forever." An 18 percent increase means overall power rate increases this year add up to 51 percent, she noted.
Eugene McDonald of Silver Lake told the commissioners that he has refused to pay the 33 percent increase approved in January and vowed not to pay the newest increase, either. He urged the state’s 27 public utility districts to "start fighting for us" to lower rates.
PUD commissioners struggled with how much to raise rates for about four hours during meetings on Wednesday and Thursday. They debated the multiple issues which determine rates, such as:
"There’s uncertainty in the planning process," acknowledged commissioner Don Berkey.
"We’re looking into a crystal ball," commissioner Kathy Vaughn said of all the factors that go into determining how big a rate increase to approve.
The commissioners turned down a proposed switch to a two-tiered billing system, with the first block of power at one rate and additional power at a higher rate. It had been suggested to encourage conservation.
"This is a public utility owned by every person in the community that uses it," Vaughn said of her reason for opposing it.
Berkey questioned whether it would truly encourage people to cut back.
Commissioner Cynthia First called it "unfair and discriminatory" against the electric heat customer.
In addition to upping residential rates, the commissioners hiked rates for two other groups.
The county’s 25,000 business customers will have to pay as much as 18 percent more. For a handful of the county’s 10 biggest industrial power users, such as the Boeing Co., Naval Station Everett and Kimberly-Clark Corp., the rate increase will be 13 percent. Both price hikes are effective Oct. 1.
About 17,000 residential, municipal and business customers that have street light associations, local utility districts or area lighting associations will see their bills increase 54 percent, beginning Jan. 1.
"I know 54 percent sounds pretty untenable," First said, but he added the increase would be relatively small for most consumers.
For many, Vaughn said, the increase would amount to about $2 a month.
The commissioners told the PUD staff to contact every city in the county to ensure that officials know about the rate increase.
You can call Herald Writer Sharon Salyer at 425-339-3486
or send e-mail to salyer@heraldnet.com.
