Commission recap 10/28/2025 -- Study shows electric rates must increase amid rising costs, demand. Plus, customer survey results and More...

An analysis by Grant PUD staff shows that electric rates for all customers must increase annually over the next decade to cover rising costs and invest in additional sources of electricity to keep up with rapidly increasing demand.

Commissioners requested the analysis to devise a new rate-setting method that ensures the utility’s “core customers” – residential, agricultural and small business – are charged based on the utility’s lowest-cost electricity, while keeping rates competitive and predictable for industrial customers. They got an update on that request Tuesday.

Currently that lowest-cost power is generated by the utility’s Columbia River dams, Priest Rapids and Wanapum, which are no longer enough to cover the county’s growing demand.

Large industrial customers, who are driving the utility’s demand for electricity, would be supplied with any local low-cost hydropower not needed for the core customers. The industrials will pay for the electrical infrastructure and the investment needed in new sources of electricity, like wind, solar or nuclear. 

The analysis shows that average annual 3.5% electric rate increase will be needed for core customers through 2035 and average 9.5% annual increases for all non-core customers to keep the utility’s bottom line in the black over the next decade.

The analysis recommends guardrails be in place to create stable and predictable rates.

Actual increases per year would vary within guardrails above or below the average projections and rates would vary by individual customer class. Staff would revise the projections annually and make adjustments to their forecast as necessary.

Rapidly increasing demand for electricity in Grant County is driven by the need for more computing power for artificial intelligence and other industrial applications. The state’s clean-energy legislation phases out carbon-burning fuels from the energy supply.

 Grant PUD is adding more personnel to design, build and maintain the infrastructure needed to handle the growth. Non-core customers, paying above-cost rates, help keep rates lower for core customers.

A rate comparison by Grant PUD staff shows our current rate structure is one of the lowest in the country.

Commissioners will continue studying the staff proposal and will host a hearing, likely in December, to present their rate strategy and receive public comment. Rate increases would take effect April 1, 2026.

For a more detailed explanation of the analysis and different pricing models, see pages 97-138 of the presentation materials. Hear the discussion at 3:14:29 on the commission audio.

Survey: Grant PUD customers say keeping rates low and outages to a minimum are top priorities 

Keeping power prices as low as possible and power outages to a minimum were the top priorities of the 903 customers who participated in the recent Grant PUD Clean Energy Implementation Plan (CEIP) survey.  

James Dykes, Term Marketer in the Trading and Commercial Operations Department, gave the results of the survey to Grant PUD Commissioners during their meeting on Tuesday, Oct. 28.  

The survey was open to customers in July through September and is part of Grant PUD’s requirement to provide public participation in the development of the implementation plan. It was promoted in Grant PUD’s customer newsletters, on grantpud.org, through the utility’s social media channels, and at the Grant County Fair.  

The survey asked customers to rate several priorities on a scale of 1 to 5. Keeping prices as low as possible rated a 4 or 5 among most respondents for a total score of 85.27%. Keeping power outages at a minimum was 84.63%. Protecting and enhancing natural resources was 73.49%. Providing energy-savings programs was 70.93%. Developing programs and policies to promote jobs and economic development was 66.60%. Reducing carbon emissions was 55.62%. 

When asked about other priorities or concerns, many of the comments coming from customers were concerns about the impact of data center operations, expressing support for hydropower and nuclear power, opposition to wind and solar power, concerns about adequate infrastructure and reliability, and affordability of power.  

Dykes said he and the Public Affairs team plan to discuss needs with agencies and stakeholders who serve disadvantaged communities as an extension of the CEIP outreach. Then his team will hold a public hearing on the plan on Nov. 25, with a request that it is adopted by the commission during the Dec. 9 commission meeting.  

See full report on pages 48-60 of the presentation materials. Hear the discussion at 1:22:20 on the commission audio. 

Commissioners also:

-- Unanimously approved two, 20-year power-purchase agreements with Royal Slope LLC. One is for energy from soon-to-be constructed 260-megawatt solar-energy project near Wanapum Dam (Motion 3537). The other is for the project’s 1,040-megawatt-hour battery storage (Motion 3738). Both contracts begin no earlier than March 31, 2028. Commissioners received a full report about these contracts at their Oct. 14 meeting. Both contracts help Grant PUD reach its state clean-energy goals. See more on that report here. View the contracts on pages 12-180 of the commission packet. View a news release here issued by Clearway Energy, parent company of Royal Slope LLC.

-- Heard from Ross Hendrick Director of Environmental Affairs, who also introduced the consulting team from Pacific Engineering and associated subcontractors who have been working with his department on the analysis and alternatives for Crescent Bar. Several members of the consulting team have worked with Grant PUD on prior recreation projects. See full report on pages 1-22 of the presentation materials. Hear the discussion at 10:00 on the commission audio. 

-- Heard that Grant PUD’s Wholesale Fiber network has installed 1,170 new connections through mid-October, according to Terry McKenzie Director of Telecom & Fiber during her quarterly report. While the main county-wide build out is complete, the fiber team continues to expand to new developments throughout the county. About 75% of people who have fiber available to them are subscribing to the service through a participating Internet Service Provider. See full report on pages 23-34 of the presentation materials. Hear the discussion at 33:57 on the commission audio. 

-- Heard that the Cultural Resources team will continue working with the Wanapum to reduce the ongoing effects of erosion, wear caused by recreation activities, looting and occasional vandalism to culturally significant sites around the reservoirs of Priest Rapids and Wanapum dams. The team will also continue to evaluate the route of the planned Wanapum to Mt. View transmission line for culturally significant sites but have yet to find any that require remediation. View the full report on pages 61-72 of the presentation materials. Hear the discussion at 2:24:30 on the commission audio.

-- Heard that key metrics for customer outage frequencies and durations were both well under the maximum target from July through September and continue to show a trend of improvement. Chris McDarment, senior manager of System Operations, told commissioners the metrics show that extra hours spent on electric-system maintenance are paying off. Included in that effort is extra protection at the base of wood transmission poles to protect them from wildfire damage. View the full report on pages 74-86 of the presentation materials. Hear the discussion at 2:44:31 on the commission audio.

-- Heard that the Power Production teams also outperformed their targets for turbine/generator unit operation at Priest Rapids and Wanapum dams. The teams are working with the utility’s Commercial Operations and Asset Management departments to better coordinate planned unit outages. Better coordination would ensure the units are available to generate during Winter and Spring time for more generation and revenue. View the full report on pages 87-96 of the presentation materials. Hear the discussion at 2:56:51 on the commission audio.