EVERETT — Expect to pay a bit more on your energy bill starting in April.
This month, the Snohomish County Public Utility District’s Board of Commissioners approved a 5.8% rate increase to make up for higher costs and financial challenges in the energy industry.
For the average residential customer, that might look like an extra $6 per month on their bill, according to the PUD. The base rate charge will increase from 35 cents per day to 59 cents for residential customers.
For the average small business, the adjustment could add an extra $10 to the monthly bill.
What started out in 2021 as a planned 1.5% increase for 2024 grew to 3.8% in December after a few years of inflation, supply chain issues and extreme winter events, in tandem with a higher cost of equipment, energy and workers.
Then, in January, temperatures in the county dropped to the low teens, bumping up the price of energy. Electricity costs briefly shot up 800% and led to more than $40 million in unexpected energy costs for the utility, according to a presentation given to commissioners in February.
Given that, PUD commissioners approved an extra 2% boost for the rate adjustment, bringing it to a total of 5.8%. The rate bump will take effect April 1.
Customer demand and understaffing in the agency has also led to a spike in labor costs. In five years, the PUD saw overtime pay rise from $9 million in 2017 to nearly $24.5 million in 2022.
In a public comment session on the rate increase last month, Hans Dunshee, a former state representative and Snohomish County Council member, was the only person to testify. He said he wasn’t against the rate increase, but he cautioned against raising the base rate for energy. If people have a flat rate for energy, they tend to think less about conserving it, he said.
More revenue from the rate increase will go to “crucial investments in infrastructure and technology,” according to the utility.
The PUD’s increase comes after Puget Sound Energy proposed a rate hike to their electric and natural gas customers last month. If approved, customers will see increases of 17% for electric and 20% for natural gas over the next two years.
As of 2022, Puget Sound Energy served just over 150,000 natural gas customers in Snohomish County.
Next week, the PUD will begin construction on a new community solar project in south Everett. It will donate an estimated $22,000 per year in solar array revenue to a program providing grants for households in need of help with energy bills.
Jenelle Baumbach: 360-352-8623; jenelle.baumbach@heraldnet.com; Twitter:@jenelleclar.
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