PUD to Propose Electric Rate Increase at First June Meeting [VIDEO]
Jefferson County PUD’s Board of Commissioners will review and possibly vote on a staff proposal to increase electric rates by 9% at their next regular meeting on June 3rd at 4pm.
The rate proposal comes after a yearlong cost-of-service study by the PUD and financial consulting firm, the FSC group. The study found that a suite of multi-year rate increases and low-interest borrowing from the USDA’s Rural Utility Service will be needed to cover the cost of projected substation and infrastructure repairs and replacement.
In 2023, PUD General Manager Kevin Streett alerted the PUD commission to the potential for over $100 million in upgrades and repairs needed to expand and maintain the electrical grid over the coming decade. Streett has identified over $65M in electrical capital improvements needed over four years beginning in 2026.
Streett explained that the high dollar amount is due to a number of factors. The first is the age of the grid. Though the PUD bought the electric utility from Puget Sound Energy (PSE) in 2013, the majority of its substations, meters, and much of its buried electric plant were 30-50 years old and at the end of useful life. While the PUD has replaced all of its meters and many miles of electric cable, substation repairs and expansions are the biggest cost driver of future capital work, said Streett.
According to Streett, though substation transformers and equipment were known to be old, recent years have seen slow but steady electric demand increases begin to stress equipment that had spare capacity. Demand for electricity on the coldest days of the year has led to power outages and extended recovery times for some of the PUD’s most vulnerable electric feeders.
The 9% increase that Streett and FCS Group are proposing for the second half of 2025 would increase the average residential electric bill by $12 per month based on 1000 kWh usage. The proposed rate change includes a $5.00 increase in the monthly base charge, from $28.50 to $33.50, and the restructuring of usage charges from three to two tiers.
Under 600 kWh, the usage charge increases from 0.0966¢/kWh to 0.1029¢/kWh. Over 601 kWh, the charge increases from 0.1172¢/kWh to 0.1283¢/kWh, and Streett has proposed eliminating the third tier (usage above 1601 kWh) as he felt it did not encourage customers to conserve energy as much as it punished customers during the cold winter months when more energy was needed to keep their homes warm.
“We never take rate discussions lightly,” said Streett. “The study, and the rates being proposed, are what we consider an absolute necessity to address our aging grid, meet growth, and maintain and improve reliability.”
Jefferson County PUD Commission Meetings are held online via zoom and in person at the PUD’s 310 Four Corners Road Customer Service and Operations Facility. Public comment is taken shortly after the start of the meeting and during discussion of agenda items. Individual commissioner contact information is available on jeffpud.org. Commissioners can take written comment via email at commissioners@jeffpud.org.
Meeting recordings for all rate study discussions can be viewed online at jeffpud.org/files