Rising power, material costs force 3% PUD rate increase

In preparation for an increase in power costs, and increasing costs for the materials and supplies used to build and maintain the utility system, the Grays Harbor PUD Board of Commissioners have set the date to implement a 3% increase in customer rates.

The increase, approved last November as part of the 2025 budget, will be implemented on May 1, marking the first time the PUD has raised rates since 2021.

“Passing a rate increase is never an easy decision and not one that was rushed through or taken lightly. PUD staff worked with the board for several months to reach an amount that will allow the utility to meet our responsibility to our customers and fulfill our mission of high value services at the lowest practical cost,” said PUD Board President Jon Martin. “I’m very proud of the fact that we were able to absorb costs and avoid an increase over the last three years, but increasing power prices and the cost of building and maintaining the system leave the PUD with no choice but to increase customer rates.”

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In an amendment to the 2025 budget, the board chose to delay the increase by one month, from April 1 to May 1. The delay allows the PUD to avoid raising the rates at a time when customers are using more energy to heat and light their homes. The increase will take the PUD’s price per kilowatt hour (kWh) energy charge from $0.0911 to $0.0938. Assuming the average home energy use of 1,200 kWh per month, customers would see an increase of $3.71 on their monthly bill.

“We know that all our customers are dealing with increasing prices right now and raising rates is the last thing we want to do, but the cost of providing power is on the rise,” said PUD Board Vice President Arie Callaghan.

Utilities across the Pacific Northwest are bracing for an October increase from the Bonneville Power Administration in both power and transmission costs. With over half of the PUD’s 2025 budget tied to power purchases, the rise in those costs and increases in the price of supplies and materials are the main driver for the rate adjustment.

“While I am disappointed that we have to increase rates, I am confident that we have worked hard to keep our rates as low as we can, while still covering costs,” said Board Secretary Dave Timmons. “We consistently remind Bonneville that cost increases on their end are felt in Grays Harbor. At the same time, we are working with our partners in Olympia and Washington, D.C. to support or oppose energy policies that can impact utility costs, operations and customers.”