The Grays Harbor PUD Board of Commissioners have officially launched the public process to consider and approve the utility’s 2025 budget.

During Monday’s board meeting, a public hearing was opened, and will remain open until the board takes action on the budget, tentatively set for the end of November. The budget presented by District staff includes a 3% increase in customer rates to be implemented on April 1, 2025, marking the first time since 2021 that the PUD has considered increased rates.

“Raising customer rates is not something that the PUD staff and the board take lightly, but increases in costs for energy, labor, and materials have left us with no alternative,” said PUD Board President Arie Callaghan. “I’m very proud of the fact that we were able to avoid a rate increase for four of the last five years, but with costs increasing, it’s our responsibility to pass a budget that will allow the PUD to operate as our mission states: at the lowest practical cost. The budget we are considering does that.”

The proposed increase equals roughly $3.24 for an average use of 1,200 kWh per month. The residential system charge, which covers system maintenance and upkeep is budgeted to remain at $39 per month. If approved, the increase will not be implemented until April 1 of next year, allowing the utility to review power use and finances through the winter and avoiding an increase to customers during colder winter temperatures that drive up energy usage.

With the majority of PUD operating expenses tied to power purchases, expected increases in energy and transmission rates from the Bonneville Power Administration are the main driver behind the scheduled increase.

“We’ll continue to work with our partners in the industry, at the Bonneville Power Administration, and in Washington, D.C. and Olympia to make sure they know that decisions made on energy policies have an impact on Grays Harbor PUD and our customers,” said Board Secretary Dave Timmons. “Considering raising rates is not an easy decision, but we have to make the hard choices that allow us to continue the services our customers expect.”

In addition to power purchases, the utility has seen increased costs for labor, materials and supplies for system construction and maintenance, and outside contracts for services like vegetation management and underground boring.

“We’ve been very cautious with our rates and for several years we have been able to absorb increases like those into our budgets, but unfortunately, the cost of doing business simply won’t allow that to continue,” said Board Vice President Jon Martin. “Our staff has worked hard to maintain the lowest rates that allow us to continue the high value services the Grays Harbor PUD is known for.”