PUD Commission Approves Capacity Fee
The Jefferson County PUD Board of Commissioners approved a capacity charge for new and upgraded electric service during their December regular meeting. The one-time fee will help fund essential infrastructure projects to meet new demand. The charge goes into effect February 3, 2025.
The approved charge applies to new residential and commercial construction countywide and is based upon the size of electrical service. The fee for a 200-amp service is $2,150. This charge is in addition to existing new construction service fees.
Commissioners also approved a discounted rate for 501(c)(3) organizations supporting low-income residential construction. The capacity fee for a qualified non-profit for a 200-amp service is $430. In-kind contributions from government entities may also be used to offset capacity fees.
Funds generated from capacity fees aid projects workloads utility wide, including the proposed Port Townsend Mill Road substation, distribution feeder projects in Port Ludlow and Marrowstone Island, and transformer purchases.
“We are committed to maintaining reliable service for all our customers and are facing some big-ticket items on the infrastructure side,” said Jeff Randall, PUD Board president. “We think this is fairer to all rate payers to make new development pay for part of the impacts of that growth.”
The PUD Board has explored a capacity charge since mid-2022, when Redmond-based FCS Group, an energy rates and finance consultant firm, was contracted to assess and present findings and impacts on the utility.
Electrical service connections have trended down in recent years. In 2022, the PUD received 343 paid commercial and residental connections. As of June 2024, the PUD has provided just 52 new paid services. Based upon the new fee structure, 52 connections would generate an estimated $134,837.
“I think we’ve shown the capacity charge is necessary and designed to help with the upward pressure on rates,” said Dan Toepper, PUD Commissioner for District 3. “These fees are a step to helping us reduce rate impacts for every customer.”
A 10% increase to the capacity charge will be applied for each of the first 3 years of the program. PUD staff will provide updates throughout the year, with the Board approving the slated increase annually.