How does the PUD determine the Demand rate?

Generally, every two years, the PUD performs a Cost of Service Analysis (COSA) which calculates the total revenues required by the PUD to meet its planned expenses. The COSA also calculates the cost to serve each rate class to determine how much revenue each class should contribute to the total. The COSA recommends to the PUD Board of Directors what the demand rate should be. Through the rate review process, the Board then sets the rates for our customers.