Pend Oreille PUD has received questions about large industrial customers, how they are served, and whether they affect the cost of electricity for homes and small businesses. The key takeaways are this:
- Large industrial customers, such as data centers, do not increase electric rates for residential or small‑business customers.
- They pay for their own electricity, the infrastructure needed to serve them, and are served under separate contracts.
- Pend Oreille PUD’s low‑cost, long‑term power resources are reserved for homes and local businesses.
Are residential customers paying for large industrial customers?
No.
Residential and small‑business customers do not pay for the infrastructure required to serve large industrial loads. Any equipment or facilities needed to serve these customers are paid for by the customer requesting the service.
How are large industrial customers served?
Large industrial customers are served under separate contracts that differ from those used for homes and local businesses.
They:
• Are served by electricity purchased from the wholesale market.
• Provide guarantees or assurances their power purchases (deposit, prepayment, letter of credit, or a combination).
• Prepay for their power purchases.
• Pay the full cost of the electricity they use.
Their electricity costs are not paid by residential or small‑business customers.
Do large industrial customers use the PUD’s low‑cost power?
No.
Pend Oreille PUD policy explicitly reserves low‑cost, long‑term power resources for homes and small businesses. Power for large industrial customers is purchased separately from the wholesale market.
Do large industrial customers provide benefits?
Yes.
In addition to paying for their own power and infrastructure, they:
• Pay annual delivery charges that increase with inflation.
• Have voluntarily reduced electricity use during periods of high demand, helping the PUD avoid costly market purchases and benefiting all customers.
Do large industrial customers cause rate increases?
No.
Rate adjustments for residential and small‑business customers are driven by factors affecting the entire utility, including:
• Inflation
• Rising operating costs
• Future power supply costs
• Long‑term infrastructure investments
• Regulatory requirements
No single customer, including any industrial user, is responsible for residential rate increases.
Bottom Line
Large industrial customers are served differently than homes and small businesses.
They purchase and prepay for their own electricity, pay for the infrastructure needed to serve them, and are supplied through separate contracts.
The PUD’s low‑cost, long‑term power resources remain dedicated to serving homes and local businesses.
As a result, large industrial customers do not increase residential electric rates.
Pend Oreille PUD remains committed to providing safe, reliable, and affordable electric service while making decisions that protect the interests of all customers.