Snohomish County PUD Customers Face 5.8% Rate Increase Starting April 1
The utility's board approved the hike to offset rising costs and an expensive January cold snap, with the typical household paying about $6 more per month.
By Jennifer Paige · · Originally reported by The Everett Herald
Customers of the Snohomish County Public Utility District will see a higher energy bill beginning in April. The utility's Board of Commissioners approved a 5.8% rate increase this month, citing rising costs and financial pressures across the energy industry. The change takes effect April 1.
According to the PUD, the average residential customer can expect to pay roughly $6 more each month. The daily base rate charge for residential customers will climb from 35 cents to 59 cents. The average small business could see an additional $10 on its monthly bill.
The increase is considerably larger than what was first planned. In 2021, the utility had projected a 1.5% rise for 2024. That figure grew to 3.8% in December after several years of inflation, supply chain problems and extreme winter weather, along with higher prices for equipment, energy and labor.
A January cold snap then added to the strain. Temperatures in the county fell to the low teens, pushing up energy prices. Electricity costs briefly jumped 800%, leaving the utility with more than $40 million in unexpected energy expenses, according to a presentation to commissioners in February. In response, commissioners added another 2% to the adjustment, bringing the total to 5.8%.
Labor costs have also risen, as customer demand and understaffing at the agency have driven up overtime. The PUD's overtime pay grew from $9 million in 2017 to nearly $24.5 million in 2022.
Only one person testified during last month's public comment session on the proposal: Hans Dunshee, a former state representative and Snohomish County Council member. He said he did not oppose the increase but urged caution about raising the base rate. People paying a flat rate for energy, he said, tend to think less about conserving it.
The utility said the additional revenue will go toward "crucial investments in infrastructure and technology."
The PUD's decision follows a proposal last month from Puget Sound Energy to raise rates for its electric and natural gas customers. If approved, customers would see increases of 17% for electric service and 20% for natural gas over the next two years. As of 2022, Puget Sound Energy served just over 150,000 natural gas customers in Snohomish County.
Separately, the PUD is set to begin construction next week on a community solar project in south Everett. The utility said it will donate an estimated $22,000 per year in revenue from the solar array to a program that provides grants to households needing help paying their energy bills.
