Chelan PUD approves two years of rate increases, average bills to rise $2-4 monthly

WENATCHEE — The Chelan Public Utility District Board of Commissioners has approved a two-year extension of rate increases following three months of discussion.

The commission voted unanimously to implement annual rate increases of 3-4% for both 2025 and 2026, with the changes taking effect each June. Under the approved plan, average residential customers will see their monthly electricity bills increase by approximately $2. Water and wastewater customers will experience increases of $3 to $4 per month based on average usage.

Between 2018 and 2024, the cost to generate and deliver electricity increased from $100 to $153 per month per customer. During this same period, average monthly electricity bills rose from $55 to $66.

The approved rate plan extends the 2020-2024 strategic plan. According to a survey, customers indicated a preference for small rate adjustments over time, rather than large increases.

Chelan PUD maintains lower residential electricity rates through revenue from selling surplus energy produced at its dams. As the gap widens between the cost to produce electricity and what customers pay, it puts more pressure on power sales. This reliance on power sales creates a higher risk of larger rate increases in the future to cover costs.

The utility held three public meetings around the county and a public hearing on September 16. Commissioners studied details of the proposal and discussed the rate structure of each utility service -- electricity, water, wastewater and wholesale fiber.

The 2025 annual budget, which includes the rates adopted on Monday, November 18, will be considered for approval December 2.

The commission also approved funding for the Southwest Power Pool's Markets+ effort to develop a day-ahead and real-time energy market in the Northwest. The PUD's share is estimated to be $1-2 million depending on the total number and size of other participants.

Additionally, Dan Koch was introduced as Chelan PUD's new chief operating officer. Koch has over 30 years of experience in engineering, project and construction management, and utility management. He previously served as vice president of energy delivery at Puget Sound Energy.