New rate-setting policy -- frequently asked questions
Want to know more about Grant PUD's new rate-setting policy? The following FAQ will help.
Why the change to the rate-setting policy?
Commissioners unanimously voted in December 2025 to “unbundle” or itemize Grant PUD’s electric rates based on each customer group’s contribution to costs and energy demand.
They did this to help ensure that “core customers” in the residential, small business and agricultural rate classes were served by the utility’s lowest-cost electricity – its hydropower – and spared most of the expense of investments in higher-cost additional energy and infrastructure needed to serve the largest, most energy-intense customers driving energy demand. This new rate-setting strategy was the product of some two years of discussion and staff analysis.
The decision honors the efforts of early Grant County residents in these “core” groups, who created Grant PUD, defended public power from the formidable legal challenges by private utilities, and defied the financial and logistical odds to do what was necessary to build Priest Rapids and Wanapum dams. These successful, visionary efforts continue to benefit us all today with some of the county’s lowest power rates, local ownership and control of our energy resources and valuable investments in riverside recreation.
What happens with any low-cost hydropower not needed to supply core customers?
Grant PUD’s larger power users will receive and benefit from any of the utility’s lowest-cost power not needed to supply core customer classes.
What happens if there is not enough hydropower to serve all customers?
Through the new unbundling strategy, large power-consuming customers, including industrial, large commercial, food processing, evolving industry, and commercial electric vehicle charging stations, will pay for the cost of acquiring and developing additional power generation for our customers.
How are rate increases calculated using the “unbundled” strategy?
Rate increases are now based not only on historical cost of service, capital costs and inflation but also on a forward look at those costs projected over the coming decade. Projections will be adjusted annually.
Are more rate increases in store?
Yes. Grant PUD analysts forecast annual rate increases will be needed for the next decade as energy demand grows, driven mainly by large, energy-intense industrial customers. These customers, themselves, will pay for much of the investment needed in new generation and expanded transmission, but these investments also benefit all customers by creating a safer, more resilient electric system with fewer and shorter outages and a more diversified power portfolio.
Will a rate-setting strategy that favors core customers make Grant County less attractive for investment by big energy users and the jobs they create?
Our forecasters predict that even with the rate increases planned for the larger energy users, Grant PUD’s rates will remain highly competitive with rates throughout Washington State and the country. We will see continued power load growth here at home. Inflation and cost pressures are obliging utilities all around the region to increase their rates, too
Does the new rate structure better define which rate classes cover costs?
Yes. The new rate structure brings greater clarity and predictability to how growth is funded. The speed of growth for Grant PUD and the community over the past several decades has been rapid, and we’re now entering a more stable, forward-looking planning phase. Under established policies, large new customers pay upfront for the infrastructure needed to serve them, preventing those costs from being added to the general rate base. This helps eliminate the misconception that new development automatically raises everyone’s rates. By aligning costs with those who drive them and applying consistent, transparent service-planning frameworks, Grant PUD supports fair, financially sustainable growth that benefits the entire community.
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