STRAIGHT TALK FROM KPUD, part 6 in a series

News from our Sponsors:

Part 6 of a series by Jim Smith and Rodger Nichols

Last week, we reminded you that right now 54% of KPUD meters are self-read. It can be a chore, and if people forget, then we have to use estimates, which can be off, high or low. That means you’ll either be billed for more than you actually used, or have to come up with a larger sum later to catch up.

This is a particular problem for snowbirds and others who have second homes in the area.

AMI, which again means Advanced Metering Infrastructure, eliminates this problem with accurate readings.

Customers can sign up for automated alerts for outages or when usage goes above a certain amount.

Knowing when your electricity use is highest will let you assess what's going on within your home to drive the usage up. KPUD knowledge about your usage stops at the meter, so it is up to customers to identify what is driving usage, so they can schedule those activities to take advantage of lower power costs.

Should you relocate, whether inside or outside of our service area, the advanced meters can also give the office an up-to-the-minute reading to close out the account while you are checking out in the office. That way, you don't have a final KPUD power bill chasing you to your new address.

AMI is a great benefit to KPUD operations, which is, in turn, a benefit to you. That’s because we are not beholden to a bunch of shareholders. We have a vested interest in Klickitat County and are governed by locally-elected officials.

One of the best ways these new meters can help is by immediately detecting and reporting outages.

Not only will we know there’s an outage without having to wait for someone to call it in, knowing which meters are affected will tell us exactly where the outage is located. That saves time getting crews to the right location to make any needed repairs quickly to get you back online, whether inside our outside to get you back on line. 

These meters can also detect and report momentary outages which can help us troubleshoot problems that can improve our service reliability.

With the information about usage allowing customers to shift usage to off-peak hours, it will reduce the amount of electricity the PUD has to purchase at more expensive peak prices. And that keeps rates down, which benefits everyone.

STRAIGHT TALK FROM KPUD, part 5 in a series

News from our Sponsors:

Part 5 of a series by Jim Smith and Rodger Nichols

What is AMI and what does it mean to me?

Last week we presented our five-point plan to deal with rising electrical demand sending costs higher.

This week, a closer look at a key part of that plan, AMI. That stands for Advanced Metering Infrastructure.

Simply put, it means Klickitat PUD will be installing new meters throughout our service area.

Here’s the background: KPUD is one of the last utilities to require customers to read their own meters. In fact, more than half of the meters in our system are read by rural customers.

This comes with its own set of problems. Life is busy, and sometimes it’s easy to forget. When that happens, KPUD has to estimate your usage, based on similar months in previous years.

But estimates are just that. They will either be too high or too low. And if you forget for a couple months in a row, you might either have paid too much, or have a large payment to catch up.

And if you don’t have to read your own meter, that means a stranger has to come on your property to do so.

Advanced meters will put an end to both problems. After they are installed in your home or business, you won’t have to read them or have someone come on your property to do so.

The new meters actually are empowering to our customers. The current meters only keep a running record of how much power you have been using since the last reading.

The new meters will give you data about your electric use, and you can use that to make choices about when you run heavy power-consuming appliances like dishwashers or washing machines. Doing so at night when the demand is low will save you money, because it means KPUD won’t have to buy as much electricity during expensive daytime hours.

To be clear, the only thing these advanced meters record is electrical usage. They can’t identify what the power is being used for, and they can’t connect with any devices that may be inside the home.

And you will have access to the same information as the PUD. If you are away from home, you can set the system to notify you if there is an outage, or if your usage is higher than a limit you can set. This is very helpful to snowbirds, landlords and working families.

Next week: more on AMI and how it benefits you.

The QR code will take you to more information online or book a PUD expert to talk to your group at 509-493-2255.

STRAIGHT TALK WITH KPUD, part 4 in a series

Part 3 of a series by Jim Smith and Rodger Nichols

KPUD’s Plan

1.

Instead of buying the additional power on the open market, KPUD will buy additional power needs from BPA under its second rate called Tier 2. While this product is still market-based, the price is set for a two-year period, allowing us to plan.

This will drive up retail rates. At current prices, the PUD forecasts a 9% retail rate increase. We have already implemented a plan to spread these impacts over three years if markets do not change and other actions do not reduce the cost. The first 3% was applied to our electric rates in January 2023.

2.

The PUD recognizes that under the current rate system, customers who are actively working to reduce their carbon footprints—through the net metering program, for instance—are shifting the costs to those who choose not to or do not have the means to do so. Net metering is a program where utility customers can install wind, hydro or solar generation on their homes to offset their electric use, and the utility acts as a battery for excess generation to be returned to them later.

In reducing their electric bills, they leave fewer people to pay for the expenses of operating the system, even though they still need the system for the net metering process.

To correct this inequity, a new rate structure will be implemented so the choices customers make won’t cause others to bear more of the burden. Net metering continues to grow with legislative policies and incentives, which only increases KPUD’s need for appropriate cost recovery and price signals.

3.

To serve load growth in the long term and comply with carbon-free mandates, such as the CETA and the Climate Commitment Act, the PUD is exploring carbon-free nuclear power, among other options, by taking part in the increasing of output from the Columbia Generating Station and potential participation in construction of the next-generation small modular nuclear reactors. No other resource can meet the zero-carbon emission targets as well as our base-load needs without significant improvements in technologies or the impacts on land use discussed above.

The wholesale electricity market, like all markets, runs on supply and demand. During periods of heavy use, the costs paid by KPUD go up. This typically reflects the activity of the population as a whole, which currently tends to use more electricity during the mornings and early evenings rather than at night. Even this pattern is changing, so we have a need for a flexible rate structure that can change as needed.

Our current residential and small commercial retail electric rates have a fixed charge and a usage charge. The total you use at any one point in time is not considered. This peak use is called demand, as opposed to the amount of energy used over time. This peak demand is commonly charged to large users so they pay for the amount of the system they use. It also provides the opportunity to reduce their demand and their bills. This, in turn, also helps reduce the amount of infrastructure KPUD needs, as well as potentially decreasing the peak demand for which we purchase power.

4.

To offer demand and timeof-use rates and provide customers information to manage their use, KPUD needs to have accurate data. KPUD will install advanced metering infrastructure, or AMI, in place of the current meters.

Advanced meters have several advantages for our customers. It means you will not have to worry about remembering to read your meters every month or have someone come on your property to do so. It also means you get access to use data daily. This can help with determining how to adjust your power use to your advantage. KPUD AMI Project details are available at www.klickitatpud.com or scan the QR code here to be directed to the page.

There are extra benefits to these advanced meters.
If an outage occurs, we can instantly pinpoint the location of the problem and get repair crews on the job quicker. When a customer moves from their service address, they can contact us and we can total their bill on the phone.

5.

When the new meters are installed, we will design and implement a rate structure that accurately bills for use and demand. Over the next year, Klickitat PUD will install these meters throughout our service territory. We can then price our power to you in a way that matches how we pay for it and how we deliver it.

Klickitat PUD, as a public utility district, was formed to have local control. The use of the AMI system and a demand rate structure allows for individual choice and will give Klickitat PUD customers the opportunity to have even more control over their use of electricity.

The QR code will take you to more information online or book a PUD expert to talk to your group at 509-493-2255.

STRAIGHT TALK FROM KPUD; Part 2 of a series

News from our Sponsors

Part 2 of a series by Jim Smith and Rodger Nichols

Last week we featured some unanticipated impacts of recent state carbon legislation. Today, we want to give you a bigger view of the changes happening in our electric industry and what we are doing about it.

Klickitat PUD still buys most of its power from the Bonneville Power Administration (BPA). By statute, BPA is required to sell power at cost—not for profit—to public utilities.

BPA guarantees it will supply a set amount of power, which the system can reliably provide. This Tier 1 Preference Power  is the least expensive.

When demand for power exceeds BPA’s Tier 1 capacity, as it does in Klickitat County, the PUD is left with two choices: buy additional power through BPA’s Tier 2 power or from the open market.   

The PUD has a small amount of its own generation through a hydro facility on the McNary Dam, that is co-owned with Northern Wasco PUD. This power generated is used to serve customer loads. We also have a small share in a Packwood hydro project, as well as a 13% share of the output from the White Creek Wind Project, though that output is sold on the market.

Local demand is getting more critical. Historically, Klickitat PUD has seen a steady 1% increase in load growth each year. In recent years, that number has doubled. It’s due in part to population growth, but also to cryptocurrency mining and a major increase in irrigation load.

Carbon reduction policies adopted by the Legislature will drive further electrification. These policies affect residential and commercial building codes and will shift the use of natural gas to electricity.

Growing electric vehicle use

These policies also promote electric vehicles,  which require charging at homes or at charging stations, further increasing electric demand. In one case we are familiar with, the vehicle charging tripled a home owner’s electricity use.

Currently, 206 electric vehicles are registered in Klickitat County. The state predicts 1,300 EVs will be registered in the county by 2030. Remember, current state legislation bans the sale of new internal combustion engine vehicles starting in 2035.

Klickitat PUD has a responsibility for managing our power supply, setting our rates appropriately. and upgrading our electrical infrastructure in order to supply these increasing loads.

Next week: why replacing power sources is difficult. To read part 1 in this series, series click here.

The QR code will take you to more information online or book a PUD expert to talk to your group at 509-493-2255.