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PUD Responds to Proposed Bonneville Rate Increase by Staff KXRO News Radio, November 12, 2012

The Grays Harbor PUD says that the proposed rate increase by the Bonneville Power Administration could increase Grays Harbor PUD power costs purchased by about $1 million in 2013 and just under $3 million in 2014. BPA power makes up most of Grays Harbor PUD's power resources and consists mainly of relatively low-cost hydropower along with some nuclear power.

Grays Harbor PUD's preliminary 2013 budget currently being considered by the Board of Commissioners anticipates a BPA rate increase beginning in 2013. "This proposed increase overall is slightly less than the figure we used when we developed our preliminary spending plan for next year," said Rick Lovely, General Manager of Grays Harbor PUD. "While the financial impact is slightly less than anticipated, it still represents a significant increase in our power supply costs in 2013 and 2014," he said.

"With power supply costs making up 60-70% of the operations and maintenance budget, rising costs including BPA rate increases continue to be a significant challenge. This initial proposal by BPA is not a done deal and we will be an active participant in the rate case to ensure any impact on our ratepayers is minimized," said Rick Lovely.