EPHRATA — Grant County Public Utility District commissioners will hold two public hearings on the 2027 budget Oct. 27 at the PUD headquarters building, 30 C St. Southwest in Ephrata. 

Commissioners approved both the meeting schedule and filing the preliminary budget at their Aug. 25 meeting.  

Chuck Allen, PUD senior manager of external affairs and communications, said the preliminary budget is always a work in progress. 

“Our budgeting team works with Grant PUD staff regularly on what they expect their budget needs will be for the upcoming year,” Allen wrote in response to a question from the Columbia Basin Herald. “The preliminary budget takes into account those projections and also takes account what is needed to continue providing reliable and affordable power and wholesale fiber service to customers in our growing county, while also considering expected revenues.”  

Because it’s preliminary, there probably will be some changes, he said. 

“As we move through the budgeting process with the public and commission, it's likely that here will be some adjustments based on an even greater understanding of financial needs, projected material costs, and anticipated revenues for the coming year,” Allen said. “Input from the commission and customers will also be given consideration as the final budget is prepared for adoption.” 

The preliminary budget was presented to commissioners at the Aug. 25 meeting. Katie Smith, budget and reporting specialist, told commissioners anticipated expenses would be higher in 2027 than 2026.  

Preliminary projections anticipate about $811 million in expenses compared to a budget projection of $703.3 million in 2026.  

The biggest increase in expenses is projected to be payback of bonds issued to raise money for PUD projects. The debt service fund was projected at $154.6 million, up from $67.1 million in 2026. The bond payback will be about $90 million. Financial department employees wrote in the presentation that some money has been set aside for the payment.  

Operations and maintenance expenses are forecast to increase by about $38.1 million to about $302.1 million. The money spent on capital projects, on the other hand, is projected to decrease by about $16.3 million. The preliminary projection for capital expenses is $329.3 million. 

The capital projects list includes planning for the transmission line from Wanapum Dam to Quincy; it’s the largest PUD project for 2027 with a projected budget of about $117.8 million. Construction of the new Ephrata maintenance center is projected at $104 million for 2027.  

The decade-long project to upgrade all turbines and generators at Priest Rapids and Wanapum dams is nearing completion, with all the work completed at Wanapum and more than half the Priest Rapids units done. For 2027, the PUD is projected to spend about $48.9 million.  

The spillways at Priest Rapids are undergoing some repairs, which are projected to cost $35.4 million in 2027. The crews are using methods already used to repair damage at Wanapum Dam. Wanapum Dam developed a crack in 2014, which prompted the PUD to reinforce the entire spillway. A leak discovered at Priest Rapids was traced to the same problem. 

Jason Michelbook, mechanical engineering manager for power production, said the problem in both structures could be traced to the same source, according to a 2026 Columbia Basin Herald story. 

“There’s a design flaw. That led to the crack at Wanapum, and we have the same design flaw at Priest Rapids,” he said.  

The solution involves adding steel cables to each section of the structure. Holes are drilled through the spillway piers down to the bedrock; cables are dropped into the holes, anchored to the bedrock and reinforced with concrete. Then the cables are put under tension.  

Operations and maintenance costs are projected to be about $302 million in 2027, an increase of about $38.1 million from the 2026 budget. About $18.2 million of that increase comes from projects to find new sources of energy.  

Utility district officials are researching the possibilities of geothermal power; in addition, planning is ongoing on a project to build a small nuclear reactor. Costs for those projects are projected to increase by about $18.2 million.  

The PUD is planning to hire additional staff, although the final number of new staff is subject to change as the budget process continues. The biggest staff boost is projected for the technology department, with some expansion planned for power delivery, which involves facility operation. 

About $13.4 million is being allocated for the Goose Prairie solar project, all from proceeds from the Climate Commitment Act.