Chelan PUD considers two-year rate hike extension, citing rising costs

WENATCHEE — Chelan County Public Utility District commissioners are considering a two-year extension of annual rate increases, potentially affecting customers' electric, water, and wastewater bills starting in June 2025.

The proposal, discussed at a recent board meeting, would continue the 3-4% annual rate hikes initiated in the 2020-2024 strategic plan. If approved, residential customers could see monthly increases of $2 for electricity, $3 for water, and $3.75-$3.90 for wastewater, based on average usage.

Chelan PUD officials cite rising operational costs as the primary driver for the proposed extension. Between 2018 and 2024, the cost to generate and deliver electricity per customer increased from approximately $100 to $153 monthly, while average monthly bills rose from $55 to $66.

The utility relies heavily on revenue from surplus energy sales to maintain low electrical rates for residents. However, the growing gap between service costs and customer payments is putting pressure on this model, potentially risking larger rate jumps in the future.

For water and wastewater services, the proposed 4% annual increase aims to bring these utilities closer to financial self-sufficiency.

The PUD has scheduled public meetings in Wenatchee, Leavenworth, and Chelan from August 26 to September 4 to discuss the proposal with community members. A rate hearing is set for September 16, with commissioners expected to vote on the resolution on October 7.

The utility also plans to increase its bill discount for low-income seniors and disabled individuals to $11-$13.50 per month, effective June 2025.

In related developments, the PUD is exploring a partnership with Washington State Parks to operate Beebe Bridge Park and is proposing an increase in construction-related customer fees for 2025.