Following two public hearings on Tuesday, Grant PUD's commission will move forward with plans to vote on the utility's proposed $738.1 million 2027 budget during its business meeting on Nov. 24.

To address rising costs primarily associated with serving a growing customer base, the 2027 proposed budget is about 5% higher than the $703.3 million budgeted this year.

Revenue "offsets" totaling $224.6 reduce gross expenses to a net budget of $513.5 million. Offsets include contributions from Grant PUD customers to pay for the infrastructure to serve them, energy sales to Grant PUD's long-term power purchasers at cost, and net energy sales.

Operations & Maintenance (O&M) costs total $109.8M million, an increase of $20.9 million, or 24%, driven primarily by:

  • $12.2 million for Grant PUD's share of regional hydropower benefits under the Columbia River Treaty.
  • $4.9 million for the utility's membership in "The Energy Authority (TEA)," a public-power-focused energy-portfolio manager that will help Grant PUD achieve the best value for its trades on the energy market.
  • $4.9 million for geothermal and Small Modular Reactor exploration and research to access new energy resources to meet future customer demand.

Capital Investments Grant PUD's $326.6 million capital budget is a 1% increase over 2026, driven by estimated spending of:

  • $118.6 million for transmission and related projects under the Quincy Transmission Expansion Plan (QTEP).
  • $103.3 million for continued construction of a new Ephrata Service Center.
  • $49.7 million for turbine/generator upgrades at Priest Rapids Dam.
  • $33.7 million for spillway-stabilization improvements at Priest Rapids Dam.
  • $17.8 million for embankment improvements on the Grant County side of Wanapum Dam.
  • $17.7 million to rebuild the existing Ancient Lake to Frenchman Hills Transmission line.

Labor costs for both the O&M and capital spending categories total $220.4 million, an increase of $21.8 million, or 11%. This reflects workforce growth, contracted wage adjustments, and general wage increases. The plan includes 40 new positions and 10 apprenticeship opportunities, supporting Grant PUD's grow-your-own approach to developing the skilled workforce needed to meet future operational needs.

Debt Service: The utility's debt service is forecast to decline by 3.8% to $64.6 million in 2027, as Grant PUD fully repays one of its series of bonds in January and other debt obligations approach maturity. Tax expenses remain relatively consistent with prior years, while timing of financial allocations will drive a 36.5% decrease to $16.7 million.

Financial Forecast: Grant PUD is forecasting Net Operating Income of $166.8 million in 2027, decreasing $57.1 million from the 2026 adopted budget due to a decrease in net wholesale and other power revenues.

Combined with other income, including interest earnings and capital construction fee offsets, the utility is forecasting a "Change in Net Position" bottom line of $176.4 million in 2027, a decrease of $71.5 million from the 2026 budget.

Commissioners will review public comment collected at the budget hearings and via email to This email address is being protected from spambots. You need JavaScript enabled to view it.. A final vote on the 2027 budget is scheduled for Nov. 24.

See this week's complete 2027 budget-hearing presentation on pages 98-117 of the presentation packet.

Commissioners also:
-- Approved Resolution 9134 to adopt the Small Works Contract provisions of Chapter 39.04 of the Revised Code of Washington, as amended from time to time. Small works contract procedures may be used for awarding contracts with an estimated value up to the limit set by the state lawmakers. The delegation levels for the general manager/CEO shall also be limited to the provisions of this RCW. This resolution rescinds Resolution 9049 and other prior resolutions to the extent they conflict with this resolution.

-- Received the October Forecast of the utility's 2026 Financial Report performance. The Change in Net Position (bottom line) is forecast at approximately $286.3 million, or $38.5 million favorable to the 2026 budget. The favorable position is driven primarily by Net Power, approximately $79.5 million above budget, including approximately $57.0 million of unbudgeted Climate Commitment Act revenues included in the 2026 forecast. This is partially offset by Retail Energy Sales approximately $19.0 million below budget, along with higher Operating Expenses and lower Interest and Other Income.

The forecasted Five-Year Outlook remains strongly favorable to the adopted 2026 budget in the current year, is modestly below the prior out-year forecast in 2027 and then improves materially from 2028 through 2031 as favorable Net Power and lower operations & maintenance expenses more than offset weaker Retail Energy Sales and other financing-related pressures.

See the full financial report on pages 34-68 of the commission meeting presentation materials.