Benton PUD's Rates Increase January 1, 2010
Benton PUD customers will see a rate increase on their monthly bill starting January 1, 2010. Residential customers’ rates will increase 4.6 percent which impacts an average bill of $90 by $4.14 a month. The cost per kWh will increase from $.0578 to $.0605 and the base charge will increase to $9.20 from $8.80.
The rate increase follows five consecutive rate decreases. The last increase Benton PUD customers received was in July of 2003.
A $15 million increase in net power costs is the key driver for the rate increase in 2010. Power costs represent nearly two-thirds of Benton PUD’s annual expenditures. The increase in power costs is driven primarily by three factors: 1) a six percent increase in wholesale power rates from the Bonneville Power Administration as of October 1, 2009, 2) the cost of renewable power resources and conservation programs implemented to meet mandates imposed by the Energy Independence Act (Initiative 937), and 3) a reduction in the amount of revenue Benton PUD receives from selling excess power back into the wholesale power markets, which in turn is driven by a dramatic drop in wholesale power prices due to the recession.
The primary driver for the increase in BPA wholesale rates are the rising costs in fish and wildlife programs. In upcoming years, nearly one billion dollars will be spent annually on programs for fish recovery.
Benton PUD conducts a cost of service study which determines the rate increase for each rate class. Small General Service will increase 7.1 percent, Medium General Service will increase 8 percent and Large General Service will increase 7 percent. Irrigation classes will increase 7.2 and 8 percent.
Rate Information Meeting Presentation