Commission recap, 12/9/2025 -- Hearing reveals customer concern about proposed rate increases. This and more...

One thing became clear during commissioners’ Dec. 9 public hearing to present and explain the utility's estimated need for a decade of electric rate increases – Grant PUD isn't the only one feeling the prolonged strain of high prices. The members of the public in attendance said they were feeling it, too.

The hearing launched a comment period, ending Dec. 23, for commissioners to collect additional public feedback before they vote on the proposed increases at their Jan. 27, 2026 meeting at Grant PUD’s Ephrata headquarters, 30 C Street SW. Comments may be submitted at www.grantpud.org/commission-meetings#Rate-Hearing-2026.

Tuesday’s rate discussion was part of a year-long staff analysis that shows Grant PUD’s electric rates need to increase an average of 3.5% annually through 2035 for residential, agricultural and small-business customers (called “core customers”) and 9.5% for the utility’s largest, energy-intense customers (“non-core customers). If approved, increases would take effect April 1, 2026. Actual annual increases will vary slightly by customer class and by year. Here’s the staff proposal for 2026*:

*The table reflects rate adjustments applied to Rates 7, 14, 15, 17 and 19 to ease them into a potential future rate increase exceeding 12%. Find this table in the Commission packet, page 205.

The rate-increase proposal is based on a longstanding policy that the customers who “cause the cost, bear the cost.” What’s new is a rate-setting strategy, which commissioners unanimously approved Tuesday as Resolution 9111, that gives priority access to the utility's lowest-cost power – currently, Grant PUD hydropower – to residential, agricultural and small business customers (“core customers”).

Any new energy resources the utility would add, including wind, solar and, potentially, natural gas and nuclear, to support the high demand of the non-core group, will have production costs at least three times higher than Grant PUD hydro.

The non-core group will pay for this more costly power along with the infrastructure needed to deliver it, but these costs will be buffered by any low-cost hydropower not needed to supply the core group. Rates are forecast to remain competitive and predictable for all rate classes.

The rate increase is necessary to keep Grant PUD sustainable amid rising materials costs, inflation, system growth and keeping high-qualify, specialized employees on staff to steer and manage the growth efficiently.

About a dozen members of the public attended Tuesday’s hearing. Five of them spoke during the hearing and one submitted a question in writing.

Customers expressed concerns that the proposed rate increases, even at the preferred “core customer” level, would be hard to absorb, especially for those on limited incomes. One business owner who exports forage products for local farmers mentioned that it would be hard to pass on the increases to his farm customers. A representative from big industry cautioned that the increases could result in reduced investment and expansion, jeopardizing jobs for county residents and tax revenue for cities and towns.

Commissioners and staff responded to all questions. They reminded the audience of Grant PUD's programs to help income-qualified customers lower their bills and save money. They explained that staff are exploring all options to reduce costs and maximize the revenue from Grant PUD’s dams and newer energy resources to keep rates as low as possible. Their efforts come amid sustained increases in production and operation costs and ongoing pressure to invest more and faster in expanding electric-system capacity to deliver the power the large industrials need.  

“You’ve all seen in the national newspapers about the lack of energy and blackouts that are coming?” Commissioner Judy Wilson asked audience members of shortages in Texas and elsewhere in the U.S. “People die from that. And we’re determined not to get Grant PUD in that position. As times have changed. As technology has changed, the skill level of people that we need to work for us and to run this place has increased tremendously. And those people don’t come cheap.”

Commissioners also explained that the rate-setting policy they’d unanimously approved minutes earlier, also known as “unbundling,” will bring big advantages for Grant PUD customers.

“To me, we’re getting to a place that’s really great for Grant PUD customers,” Commissioner Tom Flint said. “It’s a huge leap forward for us. It will make us more affordable and transparent for our customers.”

The public comment period extends to Dec. 23. Comments may be submitted at www.grantpud.org/commission-meetings#Rate-Hearing-2026.

For more information about the proposed increases and the new rate-setting policy, see pages 1-85 in the presentation materials. 2026 rate proposal slides begin on page 54. Hear the full discussion at 13:52 on the commission audio. Rate hearing discussion and customer comments begins at 2:47:34 on the commission audio.

Large Power Solutions Team working with customers on new application process 

Last quarter, key accomplishments from the Large Power Solutions Team included notifying all queue applicants of updated fees and coming deadlines for large-power using companies to secure their spot in an application queue. The updated fees will serve as a kind of downpayment intended to cover Grant PUD’s costs to energize the customer.  

The team is also creating a communication plan for 2026 rate changes, completing three System Impact Studies for five major applications, closing six applications totaling 48 megawatts, and advancing pricing concepts and transmission capacity forecasts.  

Next quarter priorities include confirming applicant intentions, developing a load limit re-evaluation roadmap, optimizing underutilized capacity, completing pricing analysis for capacity reservation, hosting customer Q&A sessions, supporting growth management workshops, and improving construction scheduling. Longer-term strategies focus on capacity reservation options, industrial load ramp management, enhanced queue management practices, and partnering with other departments to refine load forecasting for accurate rate projections and resource planning. Hear the full discussion at 3:52:58 on the commission audio. See the full report on pages 117-124 on the presentation materials. 

Commissioners also:

-- Received an update about the surveys, face-to-face meetings with customer groups, data-collection efforts and employee-training sessions that the Customer Strategy team carried out this year as it continues its work to make Grant PUD customers’ experience more useful and efficient. Their work so far has included efforts to reduce wait-times for phone callers, sessions to reduce waiting periods for service hook-ups and outreach to improve collaboration between Grant PUD and internet service providers who sell internet and web-based services over the utility’s fiber-optic network. See the full report on pages 86-96 in the presentation materials. Hear the discussion at 1:05:14 on the commission audio.

--Heard that Grant PUD plans to save approximately $513,000 annually by switching to different companies for processing customer payments and printing and sending customer bills. Senior Manager of Customer Solutions Cary West told commissioners that his team continues to work on reducing customer wait times on the phone and gaining valuable customer feedback from a new, three-question phone survey at the end of each call to Grant PUD customer service. The team is also gearing up for the first phase in mid-2026 of a switchover to a new customer portal for better digital interaction. Later phases will include a utility-wide upgrade with features that include on-demand outage information, better meter data management and more. “This will enhance the customer experience through right-sized, cost-effective technology,” West said. See the full report on pages 97-106 in the presentation materials. Hear the discussion at 1:41:44 on the commission audio.

-- Learned of the External Affairs Departments’ recent efforts centered on public outreach for the utility’s Clean Energy Implementation Plan, 2026 budget and rates, and community education, while achieving outage communication’s response goals. The department also received an award of merit for Social Media engagement from the American Public Power Association.  

In the coming year, the team will focus on customer education on rate and billing changes, promoting long-term reliability, stakeholder engagement, and expanding educational programs and public outreach. Hear the full discussion at 2:32:27 on the commission audio. See the full report on pages 107-116 on the presentation materials. 

Commissioners voted on the following action items:

• Approved Resolution 9107 awarding a contract of $58.683 million to Nicholson-Kuney JV to install 38 post-tension anchors into the Priest Rapids Dam Spillway. The work will strengthen the spillway and make it more resistant to seismic activity. For more information, see pages 9 to 163 of the commission packet. 

•  Passed Resolution 9108 to pre-qualify a list of contractors for high voltage electrical work in the construction year of 2026. For more information, see pages 164 to 175 of the commission packet. 

• Approved Resolution No. 9109, which establishes Grant PUD’s 10-year conservation plan and two-year conservation target. Both are required by the state’s Energy Independence Act. The 10-year conservation potential is 37.18 megawatts, and the two-year conservation target is 8.83 megawatts. For more information, see pages 176 to 178 of the commission packet. 

• Passed Resolution No. 9110 which adopted the 2026 Grant PUD Budget and Corresponding Financial Forecast. After deductions for offsets, the 2026 budget calls for $419.934 million in expenditures. For more information, see pages 179 to 186 of the commission packet. 

• Passed Resolution No. 9111, which supersedes Resolution No. 9074 and rate setting policy. The policy primarily defines core customers as those in Rate Schedules 1 (residential), 2 (small business/general service), and 3a and 3b (agriculture), and 6 (street lighting). These customers will have priority access to Grant PUD’s lowest-cost power. Remaining rate classes are defined as non-core, will pay for any higher-cost power sources. For more information, see pages 187 to 202 of the commission packet. 

• Approved Resolution No. 9112 to adjust the commission meeting schedule. Beginning in Jan. 1, the commission will hold meeting workshops on the second, third and fourth Tuesdays of each month beginning at 8:30 a.m. The commission will hold a monthly business meeting to take formal action on resolutions and motions each month on the fourth Tuesday at 1 p.m. For more information, see page 203 of the commission packet. 

• Passed Resolution No. 9114 to accept a bid to award a contract to General Pacific for $7.781 million to supply distribution transformers as a key component to provide electrical service for new customers and to replace existing transformers that are no longer useful. For more information, see pages 251 to 297  of the commission packet. 

• Passed a motion to authorize a change order with Gannett Fleming Inc to increase the contract to Dec. 31, 2028 and increase the not-to-exceed amount from $7.9 million to $10.0 million. Gannett Fleming provides dam safety engineering to Grant PUD. For more information, see pages 298 to 302  of the commission packet. 

• Approved a motion authorizing the execution of an agreement with the Washington State Department of Enterprise Services. For more information, see page 303  of the commission packet. 

• Passed a motion naming the Commission officers for 2026 with Larry Schaapman as President of the Commission, Judy Wilson as Vice President, Nelson Cox as Secretary and Tom Flint and Terry Pyle as commissioners. For more information, see page 304 of the commission packet. 

• Approved a motion to adopt Grant PUD’s Clean Energy Implementation Plan for 2026 to 2029, according to the state’s Clean Energy Transformation Act. For more information, see pages 305 to 308 of the commission packet. 

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