Commission recap, 11/25/2025 -- Grant PUD’s proposed rates will remain below state, federal averages. Also, Q3 budget results, and more...

(Note: We'll add the audio timestamps as soon as possible.)

Commissioners learned Tuesday that even with proposed annual rate increases recommended through 2035, Grant PUD’s electric rates are projected to remain below state and federal averages, which are also increasing.

The discussion was part of an ongoing 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). Increases would take effect April 1, 2026, pending prior approval by the commission. Actual annual increases will vary slightly by customer class.

Core customers will get priority access to the low-cost power generated by Grant PUD’s Columbia River dams, Priest Rapids and Wanapum, or the lowest-cost power available from Grant PUD.

All 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 considerably 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.

The rate increase is necessary to keep Grant PUD sustainable amid rising materials costs, inflation, system growth and the right number of capable employees to steer and manage the growth efficiently.

This week’s discussion better defines objectives as Grant PUD sets rates based on a new model that considers the cost to generate and/or acquire and deliver power but also forecasts financial needs and rate levels over the coming decade to keep the utility financially strong and able to provide reliable service at the lowest cost possible for all customers.

Commissioners will host a public rate hearing at 2 p.m., Dec. 9, during their regular meeting at Grant PUD’s Ephrata Headquarters, 30 C Street SW. The meeting will also kick off a 14-day comment period, ending Dec. 23, to further collect customer feedback on rates

Hear the full discussion, including a forecasted breakdown of how the rate increases would affect each customer class, at ______ on the commission audio. See the full report on pages _______ in the presentation materials.

Contractor proposed for anchoring Priest Rapids Dam spillway

Grant PUD staff has recommended veteran construction firm Nicholson-Kuney JV to install 38 post-tensioned anchors along the spillway of Priest Rapids Dam to repair a dis-bonded lift joint in the concrete and bring the dam up to modern seismic standards.

Similar work took place at Wanapum Dam in 2014 when a crack was discovered along part of the spillway.

The project would begin approximately April 1, 2026 with anticipated completion by July 2028.

Contract requirements were developed with input from the Wanapum tribe, Priest Rapids Dam operations and the Environmental Affairs team. It would allow for continued dam operations while maintaining good relations with the Wanapum, whose village is on the Yakima County side of the Columbia River dam.

The project proposal went out to 27 prequalified contractors. Nicholson-Kuney was the sole bidder with a quote of $58.7 million, below Grant PUD’s engineer estimate of $64 million.

Staff recommended that Nicholson receive the contract for its low bid and extensive experience in the dam industry. Commissioners are scheduled to vote on the contract at their Dec. 9, 2025.

Hear the full discussion at ______ on the commission audio. See the full report on pages 113-125 in the presentation materials.

Public Comment: ________(timestamp only) when available

Commissioners:

-- Unanimously approved Resolution 9106 amending Grant PUD’s Non-Bargaining Compensation Policy and superseding Resolution 8971 relating to Grant PUD’s Non-Bargaining Compensation Policy. The change clarifies aspects of the District’s compensation philosophy for non-unionized workers, including wages that are competitive in the electricity utility industry, equity based on similar positions with similar levels of responsibility and qualifications/credential requirements. For more information see pages 12-29 of the commission packet.

-- Received business updates from the Operational Excellence, the Enterprise Project Management Office, and the Legal, Regulatory and Government Affairs team. Hear their respective discussions at ____, ____ and ____ on the commission audio. See their full reports on Pages 75-86, 87-98 and 99-112 in the presentation materials.

-- Heard a staff recommendation to approve a $7.9 million change order to a contract with engineering firm Gannett Fleming, Inc. for a new contract total of $10 million for engineering oversight of the two-year anchoring project at Priest Rapids Dam, as well as a seismic study and a federally-mandated spillway inspection at Wanapum Dam. The motion also extends the contract termination date from Dec. 31, 2027 to Dec. 31, 2028. Hear the full discussion at ______ on the commission audio. See the full report on pages 125-133 in the presentation materials.

-- Heard a staff recommendation to set Grant PUD’s Clean Energy Implementation Plan (CEIP) for 2026-2029. Staff recommended reducing the interim target for renewables and non-emitting resources (Clean Energy) from 28% to 15% of the total amount of certified carbon-free electricity sold to its retail customers in 2025. Drivers of the reduction were the decisions of some Grant PUD customers to opt out of their specified source “alternative energy” (generally, carbon-free) rate schedules. Forecasts show the district will exceed its conservation savings targets from 2029 and beyond. The targets are part of the utility’s state-mandated Clean Energy Implementation Plan, a requirement of the state’s Clean Energy Transformation Act (CETA). A public hearing and vote on the plan is scheduled for the Dec. 9 commission meeting. Hear the full discussion at ______ on the commission audio. See the full report on pages 134-148 in the presentation materials.

-- Heard that the forecast for the third quarter of 2025 continues to reflect a strong financial position, though moderated from the second quarter due to key accounting adjustments. The Change in Net Position for 2025 is now projected at $312.9 million, a decrease of $53.3 million (–15%) from Q2. Despite the reduction, results remain ahead of budget, supported by solid wholesale performance, favorable investment earnings, and prudent cost management.

The most significant driver of the current-year reduction is the adjustment to Climate Commitment Act (CCA) auction proceeds. CCA auction results through the third quarter had been included in the second-quarter forecast but were removed in Q3 to align with the expected regulatory accounting treatment at year-end. This reclassification results in a $119 million reduction to wholesale revenue for 2025, impacting Net Power Revenue, which decreased $60.5 million (–18%) from the prior quarter after incorporating the CCA adjustment and additional true-up sales occurring in Q3.

Retail energy sales were revised down by $7million (–2%), reflecting a slower pace of load buildout and evolving customer usage patterns that continue to trend below earlier forecasts. Operating expenses (O&M) were reduced $4.2 million (–2%), primarily due to timing adjustments in planned project activity and departmental spending.

Interest and Other Income remain favorable relative to budget, up roughly $13.5 million, driven by higher investment balances and interest rates holding higher for longer. The District’s debt-management strategy remains on course, with plans to pay off two short-term Electric System debt series totaling $96.5 million by year-end.

The outlook from 2026 to 2030 looks softer, with reduced bottom lines. The largest contributor to this reduction is Net Power Revenue, which is forecast to decline by an average annual amount of $9.4 million across the five-year period. This change reflects a combination of factors, including lower forward power prices, reduced generation availability and the resulting decline in wholesale power sales to long-term power purchasers.

Grant PUD nevertheless remains financially strong, with long-term sustainability driven through continued fiscal discipline, rate strategy, and careful management of power market and regulatory dynamics.

Hear the full third-quarter results discussion, including the Treasury forecast, at ______ on the commission audio. See the full report on pages 206 to 247 in the presentation materials. Hear the discussion of individual departments’ third-quarter results at _____ on the commission audio. See the individual department third-quarter results on pages 149-205 in the presentation materials.

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