Deer Island, OR – December 3, 2024 – The Columbia River PUD Board of Directors adopted a $48,000,000 Operating and Capital Budget (PDF) during their November meeting, a 2% increase over the 2024 budget.
The 2025 budget was designed with a 7.5% overall rate increase going into effect on April 1, 2025. The increase is being implemented because costs from Bonneville Power Administration – the PUD's wholesale power provider – are anticipated to increase substantially on October 1, 2025.
Current projections show a 10% increase in wholesale power costs from BPA, as well as a 15% increase in transmission costs, which equates to a roughly 15% overall increase for the PUD.
"These costs have been passed on to us; we don't have control of these costs," said Board Member Russ Hubbard. "So it's the hand we're dealt, and unfortunately, just like any business, we have to pass that cost along."
To avoid having a double-digit rate increase at once, the PUD intends to spread that out over two years. There will be a 7.5% increase on April 1, 2025. BPA's final rate recommendation will be announced in July of 2025. Once those are announced, the PUD will conduct a full cost of service analysis to determine how much of an increase will be required in 2026, if any.
"It is difficult for all of us to have to face a rate increase like this, but we can't control what the federal government is doing to us," said Board Member Garratt Tayler.
In addition to budgeting for increased costs from BPA, the PUD has allotted $8,300,000 million to new equipment, technology, and facility improvements, customer work, and system improvement projects.
This includes continuing to upgrade the utility's electric infrastructure to improve safety, security, reliability, and capacity. The PUD's budget includes improvements to existing substations, as well as constructing a line tying the Deer Island Substation to the Goble Substation.
The PUD also plans to continue its multi-year meter replacement project.
Overhead to underground power line conversion projects are planned on Dutch Canyon Road in Scappoose, NW Gilkison Road in Scappoose, and South Canaan Road to Anliker Road in Deer Island. These projects, totaling approximately $1.5 million, will help reduce the risk of winter storms or wildfires negatively impacting PUD infrastructure.
The PUD developed its budget using the mission, values, and strategic objectives contained within its 5-year strategic plan. The budget was set aiming to balance the necessary costs of maintaining, upgrading, and expanding the district's electric distribution system with its mission to provide quality services at the lowest practical cost.
The budget was created with input from a Budget Advisory Committee representing a cross-section of all customer classes, the Board of Directors, and staff.
"I think we looked at the budget carefully and pulled back some projects that we could wait it out on," said Board President Debbie Reed.
Barring any unforeseen events that might significantly impact cash reserves, the PUD anticipates ending 2025 with a year-end operating cash balance of $9,800,000 million. This is a planned decrease of $3,200,000 million, yet still above the minimum cash balance established by PUD Board Policy.
A major contributing factor to the drawdown is setting aside $1,000,000 million to upgrade the PUD's transmission capacity, in addition to $1,000,000 million set aside in 2024 for the same reason. One of the biggest limitations the PUD is facing is the inability to accommodate new industry that requires large electric load due to the lack of power transmission regionally.
"We are exploring every opportunity to add transmission to support economic growth within Columbia County," said PUD General Manager Michael Sykes.
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