EVERETT—With a vote of two and one abstention, the Snohomish PUD Board of Commissioners approved a 4.6 percent system-average rate increase for all customer classes during its meeting on January 21, effective April 1, 2025. Both Commissioners Sid Logan and Tanya Olson voted to approve the motion; Commissioner Julieta Altamirano-Crosby abstained.
“The most important thing this board does, and we do struggle, these are tough calls. An adjustment has been made this time from what we perceive, I believe in the short-term, are our needs,” Commissioner Olson said supporting the motion. She stressed the importance of long-term strategic planning to mitigate risks.
“As much as I would like to support this, I am going to abstain,” said Commissioner Altamirano-Crosby. “This is my second meeting, and I was not part of all the planning and public hearings.”
Commissioner Logan noted that the 4.6 percent increase is one of PUD’s largest but when comparing to neighboring utilities the proposed rate increase by the Snohomish PUD is modest.
Over the projected rate period from April 1, 2025, to March 31, 2026, the expected revenue is $32.9 million. Originally a rate of 4.9 percent increase was first discussed in November 2024 prior to January’s approval of 4.6 percent.
According to the PUD, the drivers for the rate increase were severe weather events the region experienced in 2024:
- The PUD spent an additional $45 million purchasing electricity in January of 2024 due to the unusual sub-freezing temperatures during Martin Luther King Jr. weekend, when higher-than-normal electricity demand coupled with below-average Bonneville Power Administration (BPA) hydropower generation sent energy market prices soaring.
- The PUD also spent $16 million on restoration efforts after the powerful bomb cyclone windstorm in November 2024
The rate increase for PUD residential electric customers will only be applied to the daily base charge. The energy charge for residential customers will remain 10.26 cents per kilowatt-hour. Residential customers will see an increase to their bill of about 13 cents per day for small (multi-family customers or those with an amp size at or below 100), and 21 cents per day for medium customers (majority of single-family homes with 200-amp service).
For PUD small business customers, the rate increase will see their base charge grow by 80 cents per day and their energy charge decrease slightly from 9 cents/kWh to 8.365 cents/kWh.
“We faced significant challenges in 2024 and I’m proud of how the organization worked together to minimize this rate increase,” said John Haarlow, PUD CEO/General Manager. “We recognize the impact cost increases can have on our customers and remain committed to providing reliable and environmentally sustainable power, and an exceptional customer experience.”
The mitigate the rate increase, Snohomish staff through multiple projects reduce expenditures in the 2025 budget by $24 million and altered its contract with BPA—scheduled to take effect on Oct. 1, 2025—which will significantly reduce the cost impact of future extreme weather events as in 2024 on MLK weekend.
The PUD has tools to help customers with their bill, including robust income-qualified assistance programs that offer 25% or 50% bill deductions for qualifying customers.
Author: Mario Lotmore
