Storm over rates

  • KATHY DAY / Herald Writers
  • Thursday, December 14, 2000 9:00pm
  • Local News

Businesses, PUD discuss 40% hike in power costs

By KATHY DAY

Herald Writers

EVERETT — Snohomish County PUD officials found themselves citing a popular movie Thursday to explain a dramatic increase in power rates to some angry business customers.

Just as a rare series of circumstances came together to create the catastrophe depicted in the movie "The Perfect Storm," so did the events prompting a 40 percent rate increase for the utility’s business customers, executive accounts manager Garth Williams said.

The meeting, attended by about 50 industry representatives, gave officials a chance to answer a lot of questions about the rate hike and how to deal with it. One of a series of bimonthly meetings, the session had been planned before the price of energy shot up earlier this month.

Commercial businesses will see their rates jump 38.4 percent on Jan. 1, and rates for industrial customers will rise 41.5 percent. The increase applies only to the actual amount of electricity they use.

Steve Corey, director of engineering at Canyon Creek Cabinet Co. of Monroe, said the meeting evolved into a "spirited discussion." While it wasn’t abusive in tone, he said, it was "probably close."

While he said his company will feel the impact of the increase, he said the firm is exploring ways to save energy for basic operations. Options "could include shifting around operations to avoid running equipment during peak hours," he said.

Corey and Warren McKay, who represented Northwest Composites and Aerocell at the meeting, both said they believed the district was in a tough position and shouldn’t be blamed for the problems.

McKay said the consensus at the meeting seemed to be to put the blame on California, adding, "you can’t blame them for the weather."

California normally sends power to the Northwest this time of year, but a combination of cold weather, power plant shutdowns, low rainfall for hydroelectric dams and general chaos from deregulation have meant the state needs to import power to prevent blackouts, officials said.

"In this rapidly volatile market, it’s hard to find a long-range model that can be used to predict this type of change," McKay said. His company, which employs about 700, is in the process of limiting its peak power loads and "buttoning up holes."

Like a lot of businesses, he added, "We’ve already closed the margin so closely on profits that there’s little room for change."

Some companies, like King Extrusions Ltd. in Woodinville, can only try to pass the increased costs on to customers.

President Doug Torrie said his plant, which makes vinyl parts for windows and doors 24 hours a day seven days a week, has little wiggle room because nothing can be shut down. He and his staff will look at operations and may consider passing on higher costs to customers.

That may not be possible though, he said. "It’s a competitive business."

Williams said the PUD is offering extra support to customers trying to deal with the sudden rate hike. Officials and company representatives will take a close look at past and current electricity consumption. In some cases, there may be financial incentives available to help companies reduce loads, while others that have not focused on conservation "might change direction," Williams said.

Everett School District officials estimate the electricity rate increase will cost roughly $200,000. That comes on top of a proposed 25 percent natural gas rate increase they project will cost another $200,000.

The district has been bracing for the increases for several months and sending memos to schools urging conservation, officials said.

While searching for answers Tuesday, Dennis Steeves of Everett-based Ameron Inc., which makes concrete utility and light poles, said the situation brings up Washington’s reliance on other states for power.

"At some point, we’ll have to bite the bullet and consider becoming self-reliant," he said.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Customers enter and exit the Costco on Dec. 2, 2022, in Lake Stevens. (Olivia Vanni / The Herald)
Costco stores could be impacted by looming truck driver strike threat

Truck drivers who deliver groceries and produce to Costco warehouses… Continue reading

Two Washington State ferries pass along the route between Mukilteo and Clinton as scuba divers swim near the shore Sunday, Oct. 22, 2023, in Mukilteo, Washington. (Ryan Berry / The Herald)
Ferry system increases ridership by a half million in 2024

Edmonds-Kingston route remains second-busiest route in the system.

Want coffee? Drink some with the Marysville mayor.

A casual question-and-answer session between mayor and constituents is planned for March 24.

Judge sentences man for role in human smuggling ring

Jesus Ortiz-Plata was arrested in Everett in May 2024. A U.S. District Court judge sentenced him to 15 months in prison.

Bill Wood, right, Donnie Griffin, center right, and Steve Hatzenbeler, left, listen and talk with South County Fire Chief Bob Eastman, center left, during an Edmonds Civic Roundtable event to discuss the RFA annexation on Monday, Feb. 10, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Edmonds community discusses annexation into the regional fire authority

About 100 residents attended the Edmonds Civic Roundtable discussion in preparation for the April special election.

Robin Cain with 50 of her marathon medals hanging on a display board she made with her father on Thursday, Jan. 2, 2025 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
Running a marathon is hard. She ran one in every state.

Robin Cain, of Lake Stevens, is one of only a few thousand people to ever achieve the feat.

People line up to grab food at the Everett Recovery Cafe on Wednesday, Dec. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Coffee, meals and compassion are free at the Everett Recovery Cafe

The free, membership-based day center offers free coffee and meals and more importantly, camaraderie and recovery support.

Devani Padron, left, Daisy Ramos perform during dance class at Mari's Place Monday afternoon in Everett on July 13, 2016. (Kevin Clark / The Herald)
Mari’s Place helps children build confidence and design a better future

The Everett-based nonprofit offers free and low-cost classes in art, music, theater and dance for children ages 5 to 14.

The Everett Wastewater Treatment Plant along the Snohomish River on Thursday, June 16, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Everett water, sewer rates could jump 43% by 2028

The rate hikes would pay for improvements to the city’s sewer infrastructure.

The bond funded new track and field at Northshore Middle School on Thursday, Oct. 24, 2024 in Bothell, Washington. (Courtesy of Northshore School District)
Northshore School District bond improvements underway

The $425 million bond is funding new track and field complexes, playgrounds and phase one of two school replacements.

Timothy Evans, a volunteer at the east Everett cold weather shelter, with his dog Hammer on Monday, Feb. 10 in Everett, Washington. (Will Geschke / The Herald)
Temporary shelter opens in Everett during unusually cold weather

The shelter will open nightly until Feb. 14. Help is needed at the new location, as well as six others across the county.

Outside of the updated section of Lake Stevens High School on Thursday, Feb. 27, 2020 in Lake Stevens, Wa. (Olivia Vanni / The Herald)
Lake Stevens schools bond leading early; Arlington voters reject latest levy attempt

A $314 million bond looks to pass while Arlington’s attempts to build a new Post Middle School again appear to take a step back.

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.