NW Power Rates Jump

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NEWS

Power Rates Jump for Tacoma Area Residents 12/14/2000

The Associated Press

Higher electric bills will soon shock residents in Snohomish County.

The Public Utility District raised rates by 35 percent Wednesday. The new rates will take effect on Jan. 1. Residential customers will see their average monthly bill go up $22 to $85.

For Laurie Steinberg, owner of the Everett Vacuum Sales and Service, it means more of his income will be sucked up by escalating electricity costs. His bill for the last two months was $226. "We're talking about a $75 rate increase for me, if it's 35 percent," he said.

Between his home and his business, Steinberg can now look forward to paying up to $800 extra per year.

The PUD says the rate hike is necessary, because soaring demand and shortages have gobbled up reserves, and the utility must buy more expensive electricity on the open market.

Officials hope the rate hike will encourage people to conserve energy and decrease the district's power needs.

Tacoma Power is following suit, proposing an 86 percent surcharge for its customers. A resident with a $100 monthly bill could see it nearly double.

The utility says it needs the money to make up for its rapidly depleting reserves. Spokeswoman Sue Veseth blamed a number of factors, including a drought last summer, low reservoirs, a lack of supply from California, skyrocketing power prices, and an unusual cold spell in December.

http://www.nwcn.com/washingtonnews/238512_WApowerratehike.html

-- Martin Thompson (mthom1927@aol.com), December 14, 2000


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