PUD considering 5% rate increase

Customers of Wahkiakum PUD may soon see an increase in their utility bills.

Dave Tramblie, general manager for the PUD, recommended the implementation of a 5 percent increase for all ratepayers some time after the December meter readings.

Tramblie made the recommendation to the board of commissioners at the bi-monthly Wahkiakum County PUD commissioners’ meeting at the Rosburg Hall.

The commissioners were inclined to agree and asked attorney Tim Hanigan to draft a resolution to implement the increase.

Along with the one time rate increase, Tramblie would like to see a four-year, 5 percent incremental increase to cover operational expenses and infrastructure replacement for the water systems on Puget Island and the Westend. After four years, the total increase would amount to a 20 percent rate hike.

The board will continue to discuss Tramblie’s prescription for creating funds for improvements at a later date.

“Within the current budget for 2014 each system is projected to dip into the reserves,” Tramblie said, “so the cash flow is negative, even with the rate increase. On the Westend, we haven’t had the resources to replace any of the infrastructure this year. It’s not there. It’s not there for next year. I’m trying to get us there. If you want to see some infrastructure replacement next year, raise rates 20 percent today.”

“I don’t think we want to do that,” Commissioner Dennis Reid replied, though ultimately, he would like the see the PUD get to the point where they can replace five percent of the system each year.

Commissioner Gene Healy suggested taking key items currently troubling the Westend water plan in order to prioritize and fund the projects.

“Within in the electric system I’ve backed off my project plans for 2104,” Tramblie said, “due to the fact that I think it’s more important that we use our resources to pay off our existing loan for the substation.”

“As for Puget Island,” Tramblie said, “unless something drastic happens with the contract with the town, I think we’ll be okay continuing the crossing replacement that we have been working on.”

Reid shared that he had received praise for the PUD’s work while out for dinner recently. “A fellow told me,” Reid said, “’those guys must be doing a pretty good job down there, we have a wind storm and no outages anymore.’ I wanted to pass that on. People out there notice.”

Commissioners discussed how the changes due to the Affordable Care Act would affect the budget and health care for employees. They also continued to talk about how to respond to net metering, and set up a time line for an upcoming evaluation for the general manager.

Commissioner Robert Jungers shared his perception of public opinion on the matter of the water contract with the town.

“I’ve actually received some calls from ratepayers regarding the issue between the town and the PUD and the interlocal water agreement,” Jungers said.

“The overwhelming consensus I’ve gotten from these communications is a strong sense of support from the ratepayers for our position if you will. They have to some extent interviewed me and interrogated me for clarification purposes and they have all, I believe, walked away satisfied with the clarification I have afforded them and seemed quite supportive of us.”

The next PUD Board of Commissioner’s meeting is December 3 at 8:30 a.m. in the PUD meeting room.