One step forward. Two steps back. That is, literally, the story of the energy rate fiasco Snohomish County is trapped under.
To its credit, the Snohomish County PUD is holding rate review public meetings this month and next month to find out how customers want the agency to handle possible rate reductions. It’s a matter of trying to balance short-term relief and long-term stability, the PUD says in its notices to customers. One of the most drastic plans would only reduce rates by 2 percent. But at least that is a small step in the right direction.
Now for the two steps back. Way back.
Remember when everyone was telling us to conserve? It wasn’t that long ago. Well, we did conserve. Not that it made much difference in our energy bills. Some among us are still juggling PUD bills with groceries, rent and prescription medications. Now we learn that the Bonneville Power Administration is facing a potential $500 million shortfall. It turns out that they can’t sell off their excess power now that energy prices have dropped. It’s quite possible they’ll raise rates another 5 to 10 percent. Since the PUD gets 80 percent of its power from the BPA, this is bad news for Snohomish County customers. There goes the two percent rate reduction and then some.
It gets worse. The Federal Energy Regulatory Commission, which has done a pitiful job addressing the energy crisis and deregulation issues, recently announced plans to create regional transmission organizations. Just what we need — another layer of bureaucracy that moves at a slug-like pace to address citizens’ needs. An RTO in the West could easily tack on a 4 percent rate hike, said PUD Commissioner Don Berkey.
All the agencies involved bear some responsibility, to varying degrees, for the mess customers are left to finance. And it will take all the agencies and a variety of solutions to turn things around. The PUD is wise to look at ways to reduce costs internally. Rather than focusing primarily on potential employee cutbacks, the district needs to seriously rethink construction projects that were intended to keep up with a demand that is not so pressing now. It also must work aggressively with FERC to ease or annul ridiculous contracts with power sellers based on market manipulation that lock us into paying high prices for years. If FERC wants this area to seriously consider an RTO, then it had better start taking our predicament seriously.
As frustrating as it may be, it is important for ratepayers to attend either the July 23 or Aug. 13 rate review meeting. And, as we’ve recommended before, sending a note to FERC wouldn’t hurt either.
FERC can be contacted by writing: Pat Wood, Chairman, Federal Energy Regulatory Commission, 888, First Street NW, Washington, D.C. 20002.
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