Wahkiakum PUD considers rate hike

Wahkiakum PUD’s newly-constructed Cathlamet Substation has been in operation since January, and PUD staff and commissioners are ready to celebrate.

A ribbon cutting is scheduled for April 24 at 10 a.m. at the substation site near the intersection of Jacobson Road and Columbia Street. The public is invited, as are all PUD employees.

At their meeting on Tuesday morning, Wahkiakum PUD commissioners approved Manager Dave Tramblie’s request to close the PUD office for a short period of time that morning to enable the staff to attend the ribbon cutting.

In addition to the celebration, the commissioners dealt with everyday utility business.

Tramblie and Auditor Erin Wilson told the commissioners that they are still working with the town to iron out details of the water purchase contract between the two entities. The PUD purchases the water it uses to supply its Puget Island Water System from the town.

Commissioner Gene Healy urged Wilson to discuss the contract’s sticking points with Teresa Johnson, a consultant the PUD has engaged for accounting services.

Wilson said she would, and added that she had discussed the contract with the instructor of an advanced governmental accounting class that she had attended earlier in April.

(Editor's note: After meeting in executive session Monday night, the Cathlamet Town Council voted to accept an offer from the state Department of Health to lead a negotiated settlement process with the PUD over the water contract. Mayor George Wehrfritz was to notify the PUD of the action.)

Tramblie reported to the commissioners that PUD crews had dealt with very few power and water outages since the beginning of 2013.

He referenced four power incidents in January, two in February, and none since.

Water crews responded to three breaks in January, all on the Western Wahkiakum System, and none since.

“That’s indicative of a well-maintained system,” commented Commissioner Bob Jungers.

The commissioners and Tramblie held an informational discussion about future rate increases.

Wahkiakum PUD purchases all of the power it supplies to its customers from Bonneville Power Administration (BPA). BPA has proposed a six to nine percent rate increase beginning in October, as wellas a 13 percent increase in transmission rates.

That would add up to an additional $110,000 to $150,000 annual expense to the PUD, Tramblie estimated. It would necessitate a three to four percent increase in rates just to meet that expense, without adjusting for inflation or other factors.

The PUD raised power rates in 2001, 2006, and most recently in January 2012. All occurred in conjunction with BPA rate increases.

Additionally, the PUD’s two water systems have large expenses in their futures, Tramblie cautioned.

The Puget Island Water System’s comprehensive plan is due to the state Department of Health in 2014, and will likely cost $6000 to $10,000 to produce.

Compared to cost of preparing the comprehensive plan for the WesternWahkiakum Water System (WWWS), $6000 is a bargain.

The 2017 update to the WWWS could cost up to $30,000, Tramblie warned the commissioners.

“Do you think that we should work through our legislators to see if the update schedule can’t be changed to every 10 years?” Healy asked the other commissioners.

“A $30,000 expense every six years for 200 customers is ridiculous. Our objective is to get water to people, not to support an agency in Olympia.”

“The cost is a burden to a lot of water systems,” Tramblie said. “Our engineering firm believes that the state’s water efficiency goals are farfetched for the type of systems that we have- small rural systems that stretch many miles.”

Commissioner Dennis Reid said that the Washington PUD Association recently discussed the issue. He offered to find out about the current status of the discussion.

“We don’t like to hear (about possible rate increases and future expenses) but it’s good you brought it up because we do need to start thinking about it,” he concluded.