Proposed electric and water rate increases are up for a hearing in front of Jefferson County Public Utility District (PUD) commissioners Monday, Jan. 29. The hearing is set for 5 p.m. at the Chimacum Fire Station, 9193 Rhody Drive.

Increases in electrical rates were first proposed at a special PUD rate hearing in November, but no decisions have been made.

Commissioners are not expected to take a final vote on electrical rates until the Feb. 7 regular board meeting.

Kevin Streett, PUD assistant manager, and Gail Tabone of EES Consulting, who specializes in utility rate design, proposed a 4.8 percent increase to residential electric service, raising the current base from $14.50 a month to $18.50 a month and increasing the consumption rate by $.0084 per kilowatt-hour (kWh) last year.

At 1200 kWh, the PUD’s monthly bill would still fall below both Puget Sound Energy and Seattle City Light monthly bills, according to Tabone’s estimates, said PUD communications manager Will O’Donnell.

The electric increase proposal was triggered by biannual rate adjustments from Bonneville Power Administration (BPA), which PUD officials said brought a 5.4 percent increase in the price of power to the Jefferson County PUD. The PUD receives all of its power from the BPA, and the cost of wholesale power from BPA is the PUD’s single biggest expense, accounting for 46 percent of its annual budget, O’Donnell said.

Although the PUD’s board of commissioners approved the 2018 budget based on the increased revenues returned per Streett and Tabone’s proposed rates, commissioners are not expected to make a final vote on electrical rates until the February meeting.

“The rate hearing provides an additional opportunity for the public to hear the proposal and offer comments and questions,” said Jeff Randall, PUD board president.

WATER, SEWER

Tabone and Streett also are to present a proposal for increases in the PUD’s water and sewer rates for its customers. (The PUD does not serve Port Townsend.)

If rates don’t go up, the PUD is set to lose more than $330,000 on the cost of operating its water systems in 2018, according to Streett. The $330,000 does not include any capital improvement costs, according to the PUD.

Tabone’s recommendation is that the district raise water and sewer rates by 10 percent and add a $10 capital surcharge fee to the monthly bill. The increase would cover all expenses and improvements, and still keep the PUD’s rates below those charged by the cities of Port Townsend and Port Angeles and those charged by Clallam County.

The average impact per bill is expected to be $13 a month for residential water, $22 for commercial water and $3 per month for sewer, according to the PUD. A date has not been set for a final vote on the water rates, O’Donnell wrote.

COSTS OF FIBER OPTICS

Although Streett does not expect to present a final proposal Jan. 29, he is also working to adjust the PUD’s wholesale fiber optic rates, O’Donnell wrote. Instead of an increase, Streett is looking to lower the cost of installing and leasing PUD high-speed fiber optics. Streett said a rate decrease was inspired by the PUD’s participation in the current Water Street Enhancement Project in Port Townsend. Because of the ongoing construction and partnerships with the City of Port Townsend, the PUD will be able to install more fiber optics downtown and more cheaply than in the past, PUD officials said.

Streett is working with Joel Paisner of Ascent Law Partners in Seattle, who specializes in utility and telecom rates, on a new round of pricing, according to O’Donnell. Streett expects to present the new decreased rates to the board of commissioners at a Feb. 20 regular board meeting.