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Electric Rate Increase Reminder
The PUD reminds customers that the new electric rates are effective on all bills rendered on or after April 1, 2017. As announced earlier, Commissioners approved the rate increase at their December 12, 2016, public meeting.
The new retail electric rates include 3.8% average increase. This equates to about $4.48 per month for the average PUD residential customer, using 1200 kWh per month. The actual retail electric rate increase will be applied as an increase of 10% per month on the customer’s base charge and approximately 2% on kilowatt hours used, which all totaled is approximately 3.8% overall for the average residential electric bill.
Example of an average electric bill: Current $114.29; with the rate increase it would be $118.77
Electric Rate Pressures
In October 2015, the Bonneville Power Administration (BPA) increased rates by approximately 6%. This represents the largest cost center for the PUD at about 43% of the total budget. For this increase, Staff and Commissioners decided to divide this rate impact over the course of 2 years instead of just one, which keeps with the philosophy of providing stable rates. In part, the 2017 PUD rate increase is attributable to both the 2015 and 2017 BPA wholesale increases.
For the PUD, weather is responsible for almost all usage and revenue variations. Since 2014, the area has seen warmer than usual weather, resulting in decreased revenues for the PUD. Other rate pressures include Bonneville Power Administration’s wholesale rate increases, the added costs of meeting the mandates of Washington’s Energy Independence Act (formerly known as I-937), and personnel costs that include escalating health care costs as a result of federal legislation.
For information on current electric rates click here.