PUD considers a rate reduction

EVERETT – Many of Snohomish County PUD’s 300,000 customers have struggled for five years to pay some of the highest electricity bills in the state.

Now some at the utility are proposing to lower rates by 3 percent, one of a number of options under study, according to documents obtained by The Herald.

The rate cut would save the average PUD customer $28 per year – barely enough money to fill their gas tank.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

PUD leaders are calling the proposed rate reduction a gesture of goodwill with hope that more reductions are on the way.

Some customers are saying every penny counts, and to keep the reductions coming.

Noting how few dollars they would save, others would rather see the utility pay down debt, help its low-income customers or invest in conservation.

“Three percent is nothing,” said Cori Smith of Snohomish. “Three percent is not enough to waste anyone’s time.”

The potential rate reduction could, for the average customer, lower power bills by $4.68 each two-month billing cycle.

“It may not be a big amount, but it’s a start on the way down,” said PUD Commissioner Kathy Vaughn. “Even if it’s a minor rate reduction, I wanted to send a signal that we are working very hard to reduce costs.”

Commissioner Dave Aldrich supports lowering rates, but he said PUD customers would save more over the long haul by investing in conservation, which saves $2 for every $1 invested.

“Who wouldn’t support lowering rates?” asked Aldrich, who wants to do both. He has proposed that the PUD increase the amount it spends on conservation from $13 million per year to $19 million per year.

Investing back in the utility is exactly what Matt Wright of Monroe would like the PUD to do – just not how Aldrich proposes.

“I think the PUD should use the money to pay down its debt,” he said. “Sure I would like to see my rates lower, but I would like to see the PUD in a good financial position for the long run. I plan on living in the county for a very long time and a stable PUD is good for everyone in the county.”

Debbie Richey of Camano Island wants to keep more of her money in her pocket.

“I would love to see a reduction, no matter how small,” she said. “My electric bills are out of sight.”

The utility had to raise its rates 53 percent in 2001 to cover the record setting electricity price run-up of the 2000-01 West Coast energy crisis.

That’s when it joined other utilities in signing expensive power contracts that the PUD maintains were the product of illegal market manipulation by energy marketers such as Enron Corp.

The PUD was able to lower rates 5 percent in 2002, but the utility’s rates remain among the highest in the state. Since 2001, the PUD has been shutting off power at record levels to customers who have been unable to pay their bills.

The PUD is just now getting out from under some of the contracts signed during the energy crisis.

The utility will save $18 million per year when its contract with American Electric and Power concludes at the end of this year. That change is largely responsible for the PUD now considering a rate reduction, said Glenn McPherson, the PUD’s assistant general manager of finance.

Reporter Lukas Velush: 425-339-3449 or lvelush@heraldnet.com.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Vehicles travel along Mukilteo Speedway on Sunday, April 21, 2024, in Mukilteo, Washington. (Ryan Berry / The Herald)
Mukilteo cameras go live to curb speeding on Speedway

Starting Friday, an automated traffic camera system will cover four blocks of Mukilteo Speedway. A 30-day warning period is in place.

Carli Brockman lets her daughter Carli, 2, help push her ballot into the ballot drop box on the Snohomish County Campus on Tuesday, Nov. 5, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Here’s who filed for the primary election in Snohomish County

Positions with three or more candidates will go to voters Aug. 5 to determine final contenders for the Nov. 4 general election.

Students from Explorer Middle School gather Wednesday around a makeshift memorial for Emiliano “Emi” Munoz, who died Monday, May 5, after an electric bicycle accident in south Everett. (Aspen Anderson / The Herald)
Community and classmates mourn death of 13-year-old in bicycle accident

Emiliano “Emi” Munoz died from his injuries three days after colliding with a braided cable.

Danny Burgess, left, and Sandy Weakland, right, carefully pull out benthic organisms from sediment samples on Thursday, May 1, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
‘Got Mud?’ Researchers monitor the health of the Puget Sound

For the next few weeks, the state’s marine monitoring team will collect sediment and organism samples across Puget Sound

Everett postal workers gather for a portrait to advertise the Stamp Out Hunger Food Drive on Wednesday, May 7, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Snohomish County letter carriers prepare for food drive this Saturday

The largest single-day food drive in the country comes at an uncertain time for federal food bank funding.

Everett
Everett considers ordinance to require more apprentice labor

It would require apprentices to work 15% of the total labor hours for construction or renovation on most city projects over $1 million.

A person walks past Laura Haddad’s “Cloud” sculpture before boarding a Link car on Monday, Oct. 14, 2024 in SeaTac, Washington. (Olivia Vanni / The Herald)
Sound Transit seeks input on Everett bike, pedestrian improvements

The transit agency is looking for feedback about infrastructure improvements around new light rail stations.

A standard jet fuel, left, burns with extensive smoke output while a 50 percent SAF drop-in jet fuel, right, puts off less smoke during a demonstration of the difference in fuel emissions on Tuesday, March 28, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Sustainable aviation fuel center gets funding boost

A planned research and development center focused on sustainable aviation… Continue reading

Dani Mundell, the athletic director at Everett Public Schools, at Everett Memorial Stadium on Wednesday, May 14, 2025 in Everett, Washington. (Will Geschke / The Herald)
Everett Public Schools to launch girls flag football as varsity sport

The first season will take place in the 2025-26 school year during the winter.

Clothing Optional performs at the Fisherman's Village Music Festival on Thursday, May 15 in Everett, Washington. (Will Geschke / The Herald)
Everett gets its fill of music at Fisherman’s Village

The annual downtown music festival began Thursday and will continue until the early hours of Sunday.

Seen here are the blue pens Gov. Bob Ferguson uses to sign bills. Companies and other interest groups are hoping he’ll opt for red veto ink on a range of tax bills. (Photo by Jacquelyn Jimenez Romero/Washington State Standard)
Tesla, Netflix, Philip Morris among those pushing WA governor for tax vetoes

Gov. Bob Ferguson is getting lots of requests to reject new taxes ahead of a Tuesday deadline for him to act on bills.

Jerry Cornfield / Washington State Standard
A new law in Washington will assure students are offered special education services until they are 22. State Sen. Adrian Cortes, D-Battle Ground, a special education teacher, was the sponsor. He spoke of the need for increased funding and support for public schools at a February rally of educators, parents and students at the Washington state Capitol.
Washington will offer special education to students longer under new law

A new law triggered by a lawsuit will ensure public school students… Continue reading

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.