PUD introduces Large Loads policy

What this means to potential PUD large consumption customers is that they will have new guidelines to help determine their size of business and service from the Public Utility.

What this means to the current 17,000-plus Pacific County PUD customers is a slight increase in rates. In passing Resolution No. 1354, the PUD is adjusting rates for all customers to help with the maintenance of the new infrastructure that will be required by the new larger load customers.

The basis of determining a large load customer will be set to the type of equipment to be installed to service them. In the new policy that means a customer requiring a 300 kVA (kilovolt-amps) transformer. At this point the PUD is looking at bringing on at least two new Large Load customers and a possible third in the near future.

With the new annual rate to be assessed at a suggested $4.70, the PUD will gain an additional $79,900 per each large load customer added to the PUD #2 service area. With a possible three customers at that level, the PUD will see an additional $239,700 annual revenue stream within the next 4-5 years.

With the new Large Load policy in effect as of Oct.7, the specific rate increase has yet to be determined. The PUD still has to work through the design of rates and service for the newly assigned customer level.

Based on the suggested $4.70 annual increase, PUD rate payers will be seeing an additional $0.39-$0.40 added to their bill and increasing (at the same rate) with each new additional large load customer, meaning all customers will potentially see a $0.39-1.17 increase over the next few years, just for the new level of customers.

After its second public hearing on Resolution 1354, and little public comment from the Long Beach hearing, those in Raymond had a few questions.

Port of Willapa Harbor Manager Rebecca Chaffee was curious if the policy would deter new customers from the port facilities. PUD General Manager Doug Miller assured Chaffee that the new rates and service would not be out of line to chase customers away. With that Chaffee seemed satisfied to a point but later relayed that the whole policy is still a bit confusing.

"Talking with Doug, I understand the situation that we are in. And I am confident that they are doing the best that they can with the situation they face," said Chaffee.

The reason, that the new policy has been introduced was explained during the public hearing that was aided by a PowerPoint presentation explained by General Manager Miller.

"In 2008, we entered into a 20-year contract with the Bonneville Power Administration,