The $7.5 million dollar capital budget funds needed investments in the electrical system and facilities. “This is a bare-bones capital plan that addresses needs for equipment and infrastructure repair and replacements as well as investments in preventative measures and upgrades to update aging and outdated equipment,” said Rick Lovely. “Our plan is to fund these investments from revenue rather than assume additional debt at this time.”
The budget is based on a revenue forecast that projects continued declines in revenues from the sale of surplus power into power markets and little change in retail revenues. The revenue forecast for the budget year continues to show the impact of declining power markets with a projected decrease of $2 million in revenue for the coming year from the sale of surplus power. This continues the trend of declining revenue due to stagnant power markets which has occurred over the past four years. Grays Harbor PUD has a good track record for selling surplus power in electricity markets and using the revenue to reduce or prevent rate increases, but with power prices down, the PUD is seeing less revenue from surplus power sales.
The budget anticipates an 8% increase in rates. For a typical residential customer using 1,100 kilowatt-hours a month,that would mean an increase in their monthly bill of $7.51, not including taxes. To enact a rate increase, the Board of Commissioners will need to take formal action in the coming weeks.