Meeting to focus on potential impacts of Bonneville Power Administration proposed rate increase and economic slowdown
Aberdeen- Grays Harbor PUD has scheduled a public meeting focusing on the economic challenges the utility currently faces that may impact customer rates.
Grays Harbor PUD is facing a proposed rate increase by the Bonneville Power Administration (BPA) of 9.4% for the power the PUD purchases from them. About 78% of Grays Harbor PUD’s total power resources come from BPA, and increases in BPA’s rate will have a direct impact on the PUD’s costs.
In addition, the national recession is affecting the PUD as it is everyone else. Grays Harbor PUD has a good track record of selling surplus power in Western electricity markets and using that revenue to reduce or prevent rate increases. But when market power prices are down, that means revenues from surplus power sales will be down. With the decline in the economy, the PUD is projecting decreased revenues from the sale of surplus power.
Due to the expected BPA rate increase and the impact of the recession on revenues from surplus power sales, Grays Harbor PUD staff is recommending a rate increase of 4% to the Board of Commissioners. Any change in rates requires approval by the Board of Commissioners during a public meeting. “Our Board has been engaged in examining options and looking for the best possible solution to address the difficult challenges we face. We are working to minimize the impact on customers while providing quality service and maintaining a highly reliable system,” said Rick Lovely, Grays Harbor PUD General Manager. “One of our goals as we address these challenges is to keep our customers informed of how Grays Harbor PUD is responding and working to keep rates as low as possible,” he said.
Grays Harbor PUD will be holding a community meeting focusing on rates in light of the current economic challenges on March 30, 2009 from 6:30pm-8:30pm at the Aberdeen High School Gym (Sam Benn Gym). Those unable to attend may review presentation materials on our website at www.ghpud.org after the meeting along with other information regarding the rate proposal. Copies of the presentation materials will also be available at our Customer Service office located at 2720 Sumner Street in Aberdeen. Grays Harbor PUD will provide information in the April edition of the “energy” newsletter.