PUD board axes rate hike

Commissioners of Wahkiakum PUD voted Tuesday to hold off raising electrical and water rates this year.

There were a few surprised faces when PUD Commissioner Esther Gregg announced that she thought the commission should hold off raising rates for next year.

“After talking with Erin (Auditor Wilson) and David (General Manager Tramblie) last week, I feel that, given the state of the economy in the county, we should hold off the authorization of any rate increase for the present,” said Gregg.

Gregg said that because people were out of work all over the county and the cost of everything from milk to gas had gone up, this isn’t the time to raise rates.

Gregg said the PUD might have to raise rates next year, but for now, the PUD’s budget is sound, and she wanted everyone to think hard about raising the cost of both electric and water.

“So, based on that, Dave, what have you come up with?” Gregg asked Tramblie.

“Erin and I plugged in some new numbers for the electric system that, I think, reflect the fact we are not having a rate increase,” Tramblie replied.

He said PUD management had reduced the number of capital improvement requests and was able to adjust a few other line items in the current proposal to balance it for 2010.

Neither will there be a rate increase in water rates for both Puget Island and Western Wahkiakum water systems.

“The bottom line for the water systems is that they are going to lose a substantial amount of money,” said Tramblie, “and that means we are going to have to reduce our reserves for the water systems.”

Tramblie said he stands by his prior recommendation and that the rate increase he proposed was based on the fact that he is worried about the physical stability of the utility in general. He said he wanted to make sure the PUD had the reserves necessary to invest in infrastructure and equipment need should an emergency arise.

“I’ll stand by original recommendation of a 5 percent increase in electricity for the county, as well as a 3 percent water increase for both water services,” said Tramblie.

Gregg said that because the general financial health of the PUD was good, she wanted everyone to really hold the line on cost.

“I just think if we can just get into the new year and then see how the economy goes. To me its just good business practice to go back in six months and see where we are,” she said.

Gregg said that if they move forward and pass the amended budget, they can, if need be, amend it again later in 2010.

“That would be my suggestion to my colleagues,” said Gregg.

“No increase in rates?” asked Commissioner Larry Reese.

Reese indicated that PUD management should be commended for laying the ground work that has allowed the utility to give customers some breathing room during the hard economic times.

“The community has to recognize that what we’re doing now is because of the management’s planning,” he said.

Gregg asked PUD Attorney Tim Hanigan what needed to be done to amend the budget to reflect a zero rate increase.

“I’ll take it back and reword it to reflect a zero increase,” said Hanigan.

The commissioners agreed to the amendment.

“We already have an announcement going in the paper today for a budget/rate hearing,” said Tramblie.