Express concerns over PUD increases

To The Eagle:

As a ratepayer to the Wahkiakum PUD, are you aware that a rate increase from the Bonneville Power Administration of 9.5 percent would not require a 9.5 percent increase in a ratepayers electric bill? In actuality, BPA cost of power to the PUD constitutes approximately 50 percent of the cost of delivering power to the ratepayers. If the PUD's budget for the next calendar year maintains the same operating costs as the prior calendar year, the rate increase would 50 percent of 9.5 or 4.75 percent. If one was to go one step further and actually reduce the PUD's prior budget by the 4.75 percent the BPA cost increase could totally be eliminated. It is certainly within the realm of possibilities that a 5 percent decrease over a prior year budget is even a viable option.

One only has to look at the State of Washington or Wahkiakum County government to recognize that reductions in budgets are a reality of business in these difficult economic times. It would appear from the newspaper report last week, that the PUD also wishes to increase their operating budget by an additional 4.5 to 5 percent. I would like to point out that the PUD has reserves of over $2,300,000. This is the ratepayers monies not the PUD's and I strongly urge the commissioners to consider supporting some portion of this operational rate increase out of reserves. This is also a common practice within both state and county government. The management team is within their rights to ask for whatever budget that they would like to receive but it is the responsibilities of the board of commissioners to establish the actual budget within which the management team must operate the utility.

I strongly encourage the ratepayers of Wahkiakum PUD to contact their commissioners directly and to express their opinion concerning the proposed rate increase. It is also important to note that two of the three commissioners are up for re-election in the fall of 2012. It is the ratepayer's responsibility to hold the elected commissioners accountable for their actions and the effect their actions have on the cost of power distributed to the ratepayers in this county.

The three elected commissioners are Robert Jungers, Dennis Reid, and Gene Healy and I encourage all ratepayers to take the time to express their support or non-support for the upcoming rate increase.

Larry Reese

Ex-commissioner

Wahkiakum PUD