The Grays Harbor PUD Board of Commissioners passed a $119.4 million 2017 budget at their Monday meeting, which includes a projected four percent customer rate increase and $8 million in capital improvements to the utility system.
The utility anticipates the increase in customer rates in the early spring of 2017. The increase is necessary, according to PUD, due to a number of issues including increased power supply costs, a continuing trend of warm winters which have impacted energy use and weakening surplus energy sales on the secondary market. By delaying the increase until the spring, the utility will be able to monitor those conditions through the first months of 2017 to determine whether or not additional action is needed.
“While we are hoping for improving weather and market conditions, the cost of providing utility services is increasing,” said PUD Board President Russ Skolrood. “The utility has reduced capital costs, lowered staffing levels through attrition and implemented several cost saving measures. In the end, we have arrived at a budget that evens expenses and revenues while still fulfilling the Grays Harbor PUD’s mission.”
The capital improvement budget is spread over the utility transmission, distribution, substation and general plant systems. Claiming the existing power infrastructure in the area is “already reliable,” the capital improvements covered in the budget focus on preservation, including continued replacement of aging distribution and transmission lines and poles ($3.58 million), work on the East Hoquiam Road system and Chehalis River Crossing towers ($1.87 million), and work on the Ocean Shores and Highlands substations ($1.42 million), which includes renewing and replacing substation equipment, the enhancement and addition of SCADA controls and monitors, and the replacement of circuit breakers at the substations. The general plant budget totals $1.18 million and includes replacing a utility line truck, technology support for ongoing operations, and building upkeep and maintenance.
“The Grays Harbor PUD is not driven by the need to turn a profit. It is empowered by its customers to provide utility services at the lowest practical cost. This budget accomplishes that mission,” said PUD General Manager Dave Ward. “While this budget is short on flair and extravagance, it is a responsible budget that allows the utility to operate without dipping into reserves or incurring additional debt while still providing safe and reliable services.”
The 2017 budget represents a three percent increase over a 2016 capital budget that saw the PUD replace more than 500 utility poles and carry out large scale transmission, distribution and substation projects in Neilton, the East Hoquiam Road and East Grays Harbor County.
“Safety and reliability are at the heart of the PUD mission and as the trustees of that mission, it is our responsibility to ensure that our electrical and telecommunications system is properly maintained,” said Skolrood. “To put off important replacement and maintenance work is asking for trouble and our staff have done an excellent job of identifying and prioritizing the most pressing needs of our system for work in 2017.”
