Don't flip the switch lightly: Power rates are going up

YAKIMA, Wash. -- Here's a shocker.

Electricity rates are going up again for Pacific Power customers in the Yakima Valley.

The state Utilities and Transportation Commission on Wednesday granted the Portland-based utility a 5.3 percent rate increase that goes into effect at the beginning of the year.

The increase, the third for Pacific Power in the last three years, will add $4.80 to the monthly bill of the average residential customer.

The typical household, using 1,300 kilowatt hours, will pay about $94 per month once the increase takes effect, the state agency said.

While the increase isn't welcome news for customers, there may be some solace in knowing that it could have been worse: Pacific Power asked for a 15.1 increase in electric power rates.

The utility will see its revenues increase by $13.5 million instead of $38.5 million.

As part of the latest 5.3 percent rate increase, customers will be chipping in an additional 2 cents per month for the low-income bill assistance program. A basic monthly charge of $6 per customer remains unchanged. The state Attorney General's Office, which represented the public in the rate request, announced a tentative settlement agreement in August.

Tom Gauntt , Pacific Power spokesman, said the utility sought the increase to offset investments in a natural gas plant in Chehalis, Wash., and construction of the Marengo II wind farm in Walla Walla County.

Also included in the request were expenses for expansion of the utility's 130,000-member customer base, primarily located in Yakima and Walla Walla counties, and an 11 percent rate of return.

Pacific Power won approval from the UTC for an 8.5 percent rate increase last year and a 6.5 percent increase in 2007.

The commission, based in Olympia, regulates private, investor-owned utilities in the state to assure reliable service and reasonable rates and a fair profit level.

Pacific Power is owned by MidAmerican Energy Holdings Co. of Des Moines, Iowa, a company controlled by billionaire Warren Buffett. MidAmerican operates in six states.

* David Lester can be reached at 509-577-7674 or dlester@yakimaherald.com.