Franklin PUD Enacts Rate Hike
The Franklin PUD decides today to raise its rates by 4.9% as of May 1st and by another 4.9% as of May 1, 2014. The PUD claims that the move was necessary because of a hile in the cost of power from the Bonneville BPA.
Below is the official release from the PUD:
(Pasco, WA) The Franklin PUD Commission voted today to implement a rate action increasing revenue by 4.9%, including changing the residential basic charge to $21.45 per month effective May 1, 2013 and May 1, 2014.
At the Franklin PUD Board of Commissioners meeting, the Commissioners heard several rate options from staff to raise retail power rates. Options included a 4.9% revenue increase beginning May 1, 2013 and likely another 4.9% revenue increase in 2014, or an 8% revenue increase effective May 2013 and likely not another additional increase in 2014. In either case, this increase will be the first for the PUD since 2005, over eight years ago. Two rate decreases were also implemented in 2007 and 2008.
The rate increase is primarily due to the rising costs of power. Increased wholesale power costs from the Bonneville Power Administration are the main driving factor for the increase. The PUD buys about 85% of its power from BPA, the Pacific Northwest’s largest energy marketer. In October 2011, BPA’s wholesale power rates increased an average of 7.8%. Then in November 2012, BPA proposed another 9.6% average wholesale power rate increase and a 13% increase in its transmission rates. The BPA increases were after similar increases in 2009.
Power costs represent nearly 60% of the annual budget for Franklin PUD. Increases in wholesale power costs are projected to impact PUD costs cumulatively by approximately 8% over the next two years. 2014 rates will be adjusted based on cost estimates at that time.