PUD passes 4.25% electric rate increase

NEWPORT – After not passing an electric rate increase for the last three years, the Pend Oreille Public Utility District commissioners approved the staff recommended 4.25% rate increase at their Tuesday meeting March 4.

The new rates, effective April 1, will raise per-kilowatt- hour charges for all customer classes. This adjustment is for 2025 only, not a multi-year increase.

Staff has said that annual rate increases will likely be needed to keep up with inflation and infrastructure costs, as well as operational costs. The rates will be reviewed annually for any adjustments.

The rate increase will raise charges for most residential, commercial, and irrigation customers from $0.0623 to $0.0660 per kilowatt-hour (kWh). For three-phase residential and commercial customers, rates will increase from $0.0547 to $0.0575 per kWh, and Standard Industrial rates will rise from $0.0401 to $0.0422 per kWh.

For the average residential customer using 1,500 kWh per month, the increase will add $5.43 to their monthly bill. Smaller homes using 1,000 kWh will see a $3.64 increase, while larger homes using 2,000 kWh will experience a $7.35 increase. There will be no changes to the Service Availability Charge or Demand Charges.

Smaller, more predictable rate increases are preferable to larger more irregular increases, according to April Owen, Director of Finance for the PUD.

She said the PUD has absorbed more than 12% inflation by using cash reserves since the last increase in January 2022.

“By implementing this smaller increase, we’re better able to manage future cost increases and avoid larger, more drastic hikes,” she said.

The rate increase follows a nearly yearlong review of the PUD’s finances and public outreach efforts to gather feedback from customers. Rising costs, inflation and the need for continued infrastructure investments have made this adjustment necessary, the PUD said in a news release about the increase.

“These funds are crucial for ensuring the long-term reliability of our system,” said Owen. “We’re committed to investing in infrastructure that will serve our community for years to come.”

The PUD commissioners also approved a resolution setting interim General Manager Chris Jones’ salary at $220,000 annually. The resolution said Jones will not have a contract but will be an at will employee.

Jone said the job has been a whirlwind so far. He plans to make the rounds to meet with elected officials.

“I’m going to hit county commission meetings, city council meetings, try to keep the relationships that John (Janney) has built up,” he said.

He said the PUD expects a raise in expenses from the President Trump’s 25% tariffs on goods from Canada and Mexico.

“Those tariffs could affect the material that we get,” Jones said. One of the things he expects to be affected is the wood poles the PUD uses for power poles. “A lot of them are maybe cut down here and shipped to Canada to be treated and then turned around and shipped back into the U.S.”

There has been some talk of starting up another treatment plant on the West Side of the state and that might mitigate the costs.

“But I think the price of wood poles will probably go up,” he said. He said alternate material, such as steel and fiberglass may be considered. “However that works out, I think there will always be a place for wood poles, for sure.”

The cost of things the PUD imports from Mexico are also expected to rise.

“We have a lot of material that comes out of Mexico also, so we’ll have to sit back and see what happens,” he said.