Grant PUD May Raise Customer Rates to Cover Clean Energy Shift

Grant County PUD reviewed its proposed 2026 budget at its recent meeting on Tuesday, and commissioners say rate increases may be necessary to cover the costs to meet future needs.

Budget Summary & Funding Gap

According to its meeting recap, the rising demand for electricity forces the utility to look at additional sources of clean energy to supplement Priest Rapids and Wanapum dams. This includes wind, solar, battery, and potentially nuclear power, which all cost much more.

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The PUD said core customers will continue to benefit from the lowest rates possible, but consecutive years of rate increases are anticipated.

Labor & Workforce Expansion

However, the PUD said its proposed budget of $706 million prioritizes long-term affordable rates, dependable performance, and strong customer support. $292.6 million in customer contributions and revenues leaves Grant PUD with $413.4 million to cover on its own. In addition, the PUD feels its financial situation remains strong through 2030.

Operations and maintenance, capital and labor costs account for 86 percent of total expenses.

Capital Projects Driving Cost Surge

Labor accounts for $198.6 million, which is a 16 percent increase from 2025. The PUD said inflationary adjustments and workforce growth drive this increase, as they plan to add 88 new positions to support expansion and prepare for a changing energy market.

Capital costs of $322.3 million are up 43 percent from 2025, due to projects like the Quincy Transmission Expansion, a new Ephrata Service Center, upgrading 10 turbine and generator units at Priest Rapids Dam, and anchoring the spillway at Priest Rapids Dam more firmly to bedrock for greater earthquake resistance.

Commissioners will vote on the proposed budget in December.