The Tillamook PUD Residential Basic Charge has been adjusted from $23.10 to $29.00 per month.
Earlier this year, the Tillamook PUD Board of Directors made the decision to delay a customer rate increase scheduled for the Spring of 2020 due to the economic impacts related to the COVID-19 pandemic.
After a thorough review of the District’s current fiscal year and 2021 budget, the Board of Directors approved an adjust to the residential basic charge effective October 1, 2020.
When considering a rate change adjustment, both the usage charge and the basic charge are evaluated. Typically, the lower the basic charge, the higher the use charge has to be so revenues can cover the utility operating costs. Conversely, the higher the basic charge, the lower the energy charge. Why is this? When the basic or “fixed” charge is set at the appropriate level, resulting revenues will pay for the day-to-day costs of operating the PUD without having to rely on energy sales, which tend to be higher when it’s cold and lower when it’s warmer. The PUD has set costs to pay whether or not it sells a single kilowatt-hour.
The basic charge across all rate classes is shared by all Tillamook PUD customers. The kWh rate helps Tillamook PUD collect only the revenue it needs to meet operational goals. The cost to deliver that energy to you across the miles is more appropriately collected in the basic charge that stays the same each month regardless of how much energy you use.
Below is some additional information regarding the basic charge and how rates are determined at Tillamook PUD.