PUD rates for ‘emerging industry’ discussed
CHERYL SCHWEIZER | Hagadone News Network | UPDATED 5 years, 1 month AGO
Senior Reporter Cheryl Schweizer is a journalist with more than 30 years of experience serving small communities in the Pacific Northwest. She began her post-high-school education at Treasure Valley Community College and enerned her journalism degree at Oregon State University. After working for multiple publications, she has settled down at the Columbia Basin Herald and has been a staple of the newsroom for more than a decade. Schweizer’s dedication to her communities and profession has earned her the nickname “The Baroness of Bylines.” She covers a variety of beats including health, business and various municipalities. | December 16, 2019 9:54 PM
Commissioners will make decision in early 2020
EPHRATA — While most Grant County PUD customers won’t have a rate increase in 2020, the “emerging industries” class will, although the increase won’t be as much as originally anticipated.
The emerging industries class was established in August 2019, following a flood of requests for, and inquiries about, electrical service. Louis Szablya of the PUD’s “large power solutions” department said filling all the requests would’ve tripled the PUD’s customer base.
Many of those requests came from cryptocurrency businesses, but chief executive officer Kevin Nordt said at the time that similar requests may come from other industries in the future. The emerging industries class (Class 17) was the result.
Some cryptocurrency business owners contested the decision by filing suit against the PUD in federal court. The case is pending.
Utility district officials conduct an annual review of industries included in Class 17 to determine whether or not they still meet the criteria. The review looks at how much power that industry consumes (concentration risk), whether or not the industry is growing or viability, and whether or not it will be subject to new regulation.
Szabyla said requests from both cryptocurrency businesses and data centers were more than five percent of the PUD’s total, which made them concentration risks. But the number of cryptocurrency requests declined during the period reviewed.
Cryptocurrency did meet the PUD’s criteria to stay in the emerging class, he said. Because emerging industries carry more risk, the rates were set higher than other industry classes.
But because there are fewer requests for service from cryptocurrency businesses, the proposed rates for 2020 are lower than first projected. Depending on the business location, the proposed rate will be about 6 cents per kilowatt hour, or 10 cents per kilowatt hour. Originally the rates were projected to be about 8 cents per kilowatt hour or 13 cents per kilowatt hour.
Szabyla said PUD employees will be talking to Class 17 customers to explain the proposals and the reasons behind it. Utility district customers are being invited to comment on the proposal, and it will be reviewed again once the comment period has closed. It will be brought back to PUD commissioners for approval in early 2020.
Cheryl Schweizer can be reached via email at education@columbiabasinherald.com.
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