EPHRATA — Grant County PUD employees will present a surcharge proposal during Monday’s commission meeting in Ephrata.

If approved, the surcharge temporarily raises rates for a certain period of time.

Staff previously discussed possible rate increases of between 7 percent for two to three years, or 20 percent for one year.

Staff was working to finalize the proposal materials Thursday, making further information, according to Sarah Morford, a utility spokesperson.

A presentation time is tentatively set for 11 a.m. Monday.

The public comment portion starts at 1 p.m. Monday during the commission’s business meeting, where the public can request time to comment on issues.

The surcharge is being proposed because the district’s reserves are dropping.

Two below-average water years caused the PUD to use $80 million from its reserve fund. Less power was also produced for sale at the PUD’s Columbia River dams.

The district’s net wholesale revenue was affected and the PUD did not balance its budget.

The year-end projection for the PUD’s reserve fund is $95.4 million.

The surcharge would be in addition to a current 4 percent increase that started in April.

Commissioners will also adopt a preliminary budget Monday.

The district budgeted $61.9 million for labor in 2011, which is $1 million less than in 2010.

Budget discussions to date do not include staffing reductions, Morford said.

Staff is discussing what capital projects to defer next year.

The PUD is located at 30 C St. SW in Ephrata.