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Ellensburg council adopts ordinance changing electric rate schedules; staff cited 3.75% increase
Summary
Council adopted Ordinance 4983 to amend electric utility rate schedules following an FCS Group cost-of-service analysis; staff recommended a roughly 3.75% increase and discussed how Tier 1 and Tier 2 power are allocated and priced.
Ellensburg City Council voted to adopt Ordinance 4983, which amends Chapter 9.91.100 of the Ellensburg City Code to revise municipal electric utility rate schedules. City staff and a consultant recommended the change based on a comprehensive cost-of-service analysis.
Nicole Baker, the city—nergy Resources Manager, summarized the analysis and recommendation, saying, "The recommendation is a three and three/4er percent rate increase." The ordinance advances a new rate schedule that staff says reflects projected costs, including increased purchases of higher-priced "Tier 2" power above the city's federal preference allocation.
During public comment Pat Keller urged the council to delay the vote and to consider a rule that would prioritize lower-cost Tier 1 federal hydropower for residential customers. Keller argued the city has "over 15 million in unrestricted reserves" and urged fixing existing facilities before new projects; he warned that rate-setting is a "once in a generation" decision that deserves deliberate study.
Energy Services Director Buddy Stanovich explained how the city—urrently purchases power: Ellensburg is a preference customer of the Bonneville Power Administration and receives a fixed allocation of lower-cost federal hydropower (Tier 1); additional demand is met with Tier 2 purchases or market products. Stanovich said the city—urrently blends power cost into a single rate and gave a cost example: the city—stimates Tier 1 average cost at about $41 and the Tier 2 product currently at about $71; roughly 2 of about 24 average megawatts are being supplied today by the higher-priced Tier 2 product (about 8—13% of average demand).
Council and staff discussed arrangements for very large new customers: the city has a contracted E600 large-load rate structure that allows individually negotiated, cost-of-service-based contracts for large customers rather than rolling them into the standard melded rate.
After discussion the council conducted a roll call and adopted Ordinance 4983. Some council members voiced concern about rate impacts on the commercial class while others supported the recommendation to reflect cost of service and upcoming load forecasts.
What happens next: The ordinance as adopted will be implemented per the city's utility billing schedules; staff said they will return with rate design details for large-load contracts and continue outreach.
