The Grays Harbor Public Utility District board has approved a budget for 2018 that anticipates a 3 percent rate increase starting in April.

“… By waiting to implement it we allow ourselves time to monitor factors like temperatures and load growth, which may reduce the size of the increase,” said the utility’s General Manager, Dave Ward.

The $123.3 million spending plan was passed by the board unanimously last week.

“This budget is about stability,” says PUD Commission President Arie Callaghan. “Our staff has put together a plan that puts the emphasis on maintaining the strength, safety and reliability of the PUD system and service and finding a practical cost which makes that mission possible. I believe the budget we passed does that.”

“For several years, utility reliability has been steadily improving,” said Ward. “That reliability is born from prioritizing certain projects and making sure that they are funded for capital improvements.”

The budget includes $8.2 million in capital expenses, or renewal and replacement of the utility system infrastructure. The largest expense is $69.8-million in power costs, or 57 percent of the utility budget. While the utility will see some savings due to a reworking of their contract to purchase surplus power from Sierra Pacific Industries, a projected 5.4 percent increase in Bonneville Power Administration costs means the utility will increase rates, officials said.

At the end of the year, the PUD anticipates an ending fund reserve of $7.9-million. “Sound practice says we would maintain a minimum three month reserve,” said Ward. “When you consider that it costs roughly $10-million a month to operate the utility, you can see we are well short of that goal, but I feel that continued conservative financial planning will allow the utility to maintain a solid financial base.”