Chelan PUD proposes five-year schedule for rate increases, seeks public input

WENATCHEE — Chelan County PUD customers could see annual electric rate increases of 5% beginning in June under a proposed five-year plan commissioners will take to community meetings in Leavenworth, Chelan and Wenatchee.

The proposal also calls for annual increases of 2.5% for water and 4% for wastewater from 2027 through 2031. A proposed 2.5% annual increase for wholesale fiber service would be deferred for 2027 while the PUD monitors customer growth.

Commissioners approved the public meeting schedule Oct. 19 but have not adopted the rate increases. A public hearing is scheduled for Nov. 2, with a possible adoption vote Nov. 16.

Based on average residential usage, the PUD estimates the first increases would add about $3.50 to monthly electric bills, $2 to water bills and $4 to wastewater bills. Actual impacts would depend on usage and the services a customer receives.

If adopted, the increases would take effect June 1 each year, subject to annual board review and possible adjustments.

“At Chelan PUD, we're not just planning for next year. We're planning for the next 50 years,” General Manager Kirk Hudson said in a statement. “By investing in our systems now, we can reduce the risk of higher costs and service challenges for future generations of customers.”

PUD staff pointed to rising equipment and material costs and the risks of relying too heavily on surplus hydropower sales to keep local rates low.

According to industry data presented to commissioners, wire and cable costs have increased 152% since 2019, while transformer costs have risen 89%. General consumer inflation increased about 29% over the same period.

Mark Mullins, the PUD’s director of enterprise planning, risk and analytics, said surplus power sales have put the district in a strong financial position, but future revenue depends on water conditions, wholesale prices and changes in regional electricity markets.

The proposed increases are intended to narrow the gap between customer revenue and operating expenses gradually, reducing the risk of sharper increases later.

The rate proposal accompanies a broader change in how the PUD would plan and fund its four utility services. Staff proposed reviewing rates, operating budgets, capital projects and funding together annually, while maintaining separate rates and financial tracking for each service.

Under that approach, customer rates would be measured against day-to-day operating costs. Capital investments would be considered separately, supported by surplus power revenue and other PUD resources.

The PUD’s 2027 forecast shows retail electric revenue covering about 62% of direct operating costs and wastewater revenue covering about 69%. Water and fiber revenue would exceed their direct operating costs. Those comparisons exclude debt service, depreciation and capital investment.

Mullins also said the PUD’s existing framework for large electricity users is designed to protect other customers from costs associated with serving data centers. Separate rate schedules for high-density loads and smaller data centers are intended to recover their full costs, with further evaluation planned.

For customers in the former Peshastin Water District, the proposal would also eliminate a separate water-rate equalization charge adopted when the PUD acquired that system in 2024.

The PUD offers a 25% monthly discount on electric, water and wastewater bills for income-qualified households. Chief Operating Officer Dan Koch told commissioners participation has nearly doubled since the board expanded the assistance program earlier this year.

Applications are available at chelanpud.org/discounts. The PUD also plans to expand energy-efficiency rebates for income-qualified households, with information at chelanpud.org/rebates.

Customers can learn more, ask questions and comment at the following meetings:

Oct. 26, 5:30 p.m.: Leavenworth PUD office, 222 Chumstick Highway.

Oct. 27, 5:30 p.m.: Chelan PUD office, 1034 E. Woodin Ave.

Oct. 28, 5:30 p.m.: Chelan PUD Service Center, 203 Olds Station Road, Wenatchee.

Nov. 2, 10 a.m.: Formal public hearing at the Chelan PUD Service Center.

Comments can also be emailed to contactus@chelanpud.org. Additional information is available at chelanpud.org.

Andrew Simpson: 509-433-7626 or andrew@ward.media