PORT ANGELES — Clallam County Public Utility District will raise its power rates to offset a nearly 5 percent wholesale increase from its chief supplier, PUD officials said this week.
Exactly how much PUD customers will have to make up for Bonneville Power Administration’s 4.95 percent rate spike Oct. 1 remains to be seen.
“We don’t know yet,” said Michael Howe, PUD spokesman.
“Our account rate folks are going through the process of developing the exact retail rate increase. They will make a recommendation to the commissioners,” he added.
“Whether it’s 4.95 percent or not, we don’t know yet.”
Howe said a decision likely will be made at the Sept. 27 commissioners’ meeting.
He said it is “highly likely” that PUD customers will see their rates go up as a result of the wholesale power increase.
The item may be discussed at the next commissioners meeting Monday, Sept. 13, depending on whether PUD staff can prepare a recommendation in time.
The Sept. 13 meeting will begin at 1:30 p.m. at the PUD’s Carlsborg facility, 110 Idea Place.
“I believe it will likely come up, but the agenda is not set yet,” Howe said.
Last year, the PUD absorbed a 4.95 percent increase from BPA without raising rates for customers.
“We made the decision last year not to pass on the rate increase because of the PUD’s solid financial status, and we were concerned about the impact a rate increase would have on our customers given the difficult economic times the area was facing,” PUD Commissioner Hugh Haffner said in a statement.
PUD officials said absorbing a second wholesale increase would not be fiscally prudent.
When BPA raised its rates in 2008, the PUD spread the increase over two years.
“Given the economic climate, we felt spreading it over a two-year period would be best for our customers,” Haffner said.
“Fortunately, we were able to absorb the first half [of 2009] to help mitigate the impact on our customers.”
PUD officials said rate hearings are likely this month before a rate increase takes effect.
“We will make every effort to keep the public informed about this issue, but you can rest assured the commissioners and PUD staff are working diligently to continue providing reliable, efficient, safe and low-cost utility services in a financially and environmentally responsible manner,” Haffner said.
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.