Port Angeles council approves utility rate package, delays electric increase until June
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Summary
Council approved 2026–2027 electric and solid-waste rates and 2026–2028 Medic 1 rates; city will delay implementing electric increases until June 1, 2026 and pursue cost-reduction steps including a compactor/baler purchase tied to debt restructuring.
Port Angeles City Council on Tuesday approved a package of utility rate changes for 2026 and beyond covering electric, solid waste (collections and transfer-station), and Medic 1 emergency medical services, and directed staff to delay the electric-rate increase until June 1, 2026.
The rates passed after a lengthy presentation from city utility staff explaining higher costs driven by inflation, increased Bonneville Power Administration charges and higher transport and pharmaceutical costs. Council voted to adopt the resolution amending the city’s utility rate schedule and to postpone the effective date of electric rate changes by five months to ease winter impacts on residents.
City staff said the package is designed to balance revenue needs with the council’s affordability goals. “BPA did raise their rates, about 4.78% starting in 2026,” said Cara Sosa, Director of Utilities, citing Bonneville Power Administration increases as the single largest driver in the electric budget. Sosa described the city’s approach: phased adjustments that shift some costs from consumption charges to fixed base charges and averaging capital facility needs so projects do not produce large year-to-year spikes in rates.
The city presented estimated impacts: combined residential electric rates average a 13.5% increase when base and energy charges are averaged; solid-waste collection rates rise about 14% for typical weekly or biweekly service; yard-waste customers face a larger percent change (about 78%) because the city applied disposal costs directly to that customer class rather than subsidizing it; and Medic 1 residential charges increase about 18.5% for 2026. Staff noted the percent changes differ by customer class because the cost-of-service (COSA) model assigns costs to the specific services that consume them.
Solid-waste staff described operational changes meant to reduce future transport costs. Council heard a proposal to restructure an interfund loan and to finance the purchase of a compactor/baler for the transfer station. Staff estimated the equipment and associated changes could yield roughly $360,000 in annual savings and roughly 60% fewer transports by compacting materials for closer end-users rather than hauling loose loads to the Seattle area.
Medic 1 rates reflect sharp increases in pharmaceuticals and equipment costs. Staff proposed using $80,000 a year from Medic 1 reserves as a temporary rate-stabilization measure for each year of the COSA cycle and described an existing general-fund subsidy (budget transfer) that supports Medic 1 operations. Sosa said the annual general-fund transfer to Medic 1 is about $265,500.
Council and staff emphasized the city has limited levers: utilities are enterprise funds that must be self-supporting under state rules, and significant costs (BPA charges, fuel and market-wide equipment inflation) are largely outside city control. Staff said they had already reduced or frozen some positions in the solid-waste budget and had deferred some capital projects, and warned that further service cuts or personnel reductions would reduce service levels.
The city’s Utility Advisory Committee (UAC) had unanimously recommended the package as presented. After public comment urging additional caution for fixed‑income residents, council voted to approve the COSA-based rates and the Medic 1 schedule and to delay the electric-rate increase until 06/01/2026. The motion passed unanimously.
Council asked staff to continue searching for grants and other external funding, to pursue the compactor/baler financing, and to return with follow-up details if alternative funding became available that would permit partial rate relief.
If implemented, the changes will be reflected in customer bills as described by staff and through the city’s standard public-notice channels and billing inserts; staff also reiterated existing assistance programs (low-income discount, budget billing, payment plans) and said they would publish information about enrollment and eligibility.
Votes at a glance - Resolution adopting 2026–2027 electric and solid-waste (collection & transfer) COSAs and 2026–2028 Medic 1 COSA and rate schedules; outcome: approved unanimously; electric increases effective 06/01/2026 (delayed from 01/01/2026). (Motion: not specified in record; second: not specified.)
