PUD weighs rate hike on water

By Jennifer Langston

Herald Writer

Faced with aging pipes and growing customer loads, the Snohomish County PUD is planning to raise water rates each of the next five years.

Under three different plans being floated, water bills for an average household would rise between 20 percent and 25 percent by 2005.

Charges for new homes to hook up to the water system would also increase under two scenarios commissioners will consider on Dec. 18.

The PUD’s water utility serves about 13,500 customers around Lake Stevens, Granite Falls and in pockets throughout the county.

It’s looking at small rate increases, adding $1.20 to $1.50 to the monthly bill each year. Customers have repeatedly said they prefer incremental increases rather than getting hit with a big rate hike all at once, officials said.

Snohomish County PUD water rates will fall squarely in the middle of what other area utilities are charging, a PUD survey shows. About half of them have already approved water rate increases for next year or are considering them.

PUD officials said its rate hikes are necessary because the system has 50-year-old pipes, pumps and reservoirs that have reached the end of their life and need replacing.

The utility has also had increases in operating costs — from higher electricity bills to labor costs, officials said.

"Like many other Northwest water systems, the PUD faces rising expenses and growing customer demand," said Clair Olivers, assistant general manager of water resources.

Some utilities had to raise rates because customers conserved so much water during this year’s drought that they didn’t make enough money to cover costs. That’s not the case in Snohomish County, said Zeda Williams, senior manager for administration in water resources.

"We didn’t have that kind of conservation push this past summer because we had adequate water for fish and people," she said. "So our situation has nothing to do with the drought."

Reservoir levels at Spada Lake are about optimal for this time of year — close to full but in no danger of spilling over.

"We’re right where we want to be … for this time of year," said Bruce Meaker, the PUD’s Jackson Hydroelectric Project manager.

The county’s growth has also increased the PUD’s costs, with about 900 new customers being added annually over the last few years.

The commissioners will weigh whether the new increases should be borne by all ratepayers, or whether newcomers asking for additional hookups should pay a bigger share.

Under one scenario, about $150,000 would be raised from increased rates that all customers pay.

Under the other two scenarios, rate increases would be slightly smaller, and hookup fees for new customers would increase either 4 or 6 percent a year.

You can call Herald Writer Jennifer Langston at 425-339-3452 or send e-mail to langston@heraldnet.com.

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