EPHRATA — The Grant County Public Utility District commission voted to pay $57 million of debt Monday, redeeming a portion of the district's $217 million electric system revenue and refunding bonds from 2001.

By paying the $57 million — a three year sum of principal payments from 2020 through 2022, when the bonds mature completely — the district forgoes $37 million in interest payments through the year 2019, said Nick Gerde, the district's treasurer/controller.

The interest rate to maintain the debt is 5 percent.

The commission's 3-2 vote, with Tom Flint and Vera Claussen opposed, instructs Gerde to pay the debt with money from the district's reserve and contingency fund, which reached $89 million this year.

The PUD had a great financial year in 2006, Gerde said, as surplus power sales increased. The district also benefited from ideal river conditions. Flows in the Columbia River allowed the district to serve its own load, Gerde said.

During the public comment portion of the meeting, Bob Bernd, who was elected to the PUD commission last week and takes his post Jan. 1, expressed concern with the debt payment.

"According to staff's presentation, redeeming the bonds will require a rate increase in 2009 if we are to keep (the reserve and contingency) fund minimum of $70 million," Bernd told the commission.

Bernd, of Moses Lake, insists he's not necessarily opposed to the commission's decision to pay the debt off, he just wanted more information.

Bernd also wanted any decision on paying the debt suspended until both he and Terry Brewer, who was also elected last week to the PUD commission, can assume their new positions as district policy makers.

"Mr. Brewer and I have been elected by the customer/owners, and by pretty substantial margins," Bernd said. "I think they'd like us involved in these major decisions."

Bernd beat retired Moses Lake farmer Dale Walker in the general election. Bernd received 8,395 votes, Walker got 6,643, according to ballot counts completed through Monday by the Grant County Auditor's Office.

In an interview after the commission meeting, Gerde said no rate increase is required by paying the debt, as Bernd suggests. Further, Gerde said, the payment does not affect build out of the district's fiber optic network. Bernd campaigned in favor of build out.

PUD Commission President Randy Allred, who voted to pay the debt, said, "There's less likely a rate increase by paying this debt off, than not."

"This (resolution) comes with a very strong recommendation from the staff," Allred said. "I believe it's in the best interest of the people, the ratepayers of Grant County."