Franklin PUD to Raise Rates May 1, 2017 - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Franklin PUD to Raise Rates May 1, 2017

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FRANKLIN COUNTY, WA - At the March 28th, 2017 monthly commission meeting, the Franklin PUD Commissioners voted to raise overall rates by 4.1% and implement a rate design change to the irrigation customer class.

On February 14th, 2017, Franklin PUD staff and the Rate Advisory Committee (RAC) met and discussed the revenue requirement, cost of service, rate design and various rate increase scenarios. The RAC recommended to the Commission a 4.1% overall rate revenue increase for all classes effective May 1st, 2017. It was also recommended to combine the small irrigation and large irrigation customers into one rate class effective January 1st, 2018.

Franklin PUD held three public hearings in March to present information and take comments on the 2017 proposed rate action.

Rising power and transmission costs from Bonneville Power Administration (BPA) are the main drivers for the proposed rate increase.  Franklin PUD buys about 85% of its power from BPA, the Pacific Northwest’s largest energy marketer. In October 2015, BPA’s wholesale power rate increased which impacted Franklin PUD with an increase of about 6%. Franklin PUD is expecting an additional increase from BPA in October 2017. While power costs represent nearly 70% of the annual budget for Franklin PUD, we continue to look for internal efficiencies and cost reductions to keep rates as low as possible.

Franklin PUD did not implement a rate increase in 2016.

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