Rates & Fees

PUD 3 has various kinds of customers. The cost to serve each type of customer is different.

Of course, it doesn’t cost as much to connect a street or area light as it does a humming industrial plant. So we study each kind of customer to make sure they are fairly charged for the service they need.

Residential (Discounts) – Schedule 12D & 12S

Applicable only to current qualified low income disabled or current qualified low-income senior customers in single family residences and separately metered apartment units for domestic power service. Several eligibility requirements must be met to be considered qualified. This schedule is not applicable to sale for resale which is prohibited by PUD 3. This schedule is no longer available except to customers qualified and receiving service under this schedule on the effective date and so long thereafter as such status does not terminate. This schedule is no longer otherwise available.

Small General Service (Commercial) – Schedule 20

Applicable to single metered commercial and individual consumers including schools, churches, granges, community halls, public agencies, three-phase well services, unmetered services and other consumers with usage under 15,000 kWhs in any month and a demand of 50 kW or less in all months. Also applicable to all unmetered PUD 3 contractor job shack electrical hookups to PUD 3 facilities (if located on private or public property, consent of the controlling authority is to be obtained by the contractor). This schedule is not applicable to sale for resale which is prohibited by PUD 3.

Cannabis General Service – Schedule 24

Applicable to all services consuming electricity for purposes of producing or processing cannabis as authorized under Washington State law. To include all applications for service with load associated with such producing or processing activities. Customers qualifying for this rate schedule are not eligible for federally funded conservation or other financial assistance provided through the BPA. This schedule is not applicable to sale for resale which is prohibited by PUD 3.

Public Electric Vehicle Chargers – Schedule 27

Applicable to all publicly available electric vehicle charging equipment that is metered separately from other loads not primarily associated with the charging of electric vehicles and whose total connected load does not exceed 0.5 MW. Participation in this rate schedule is optional and eligible customers may choose to participate at any time. Customers who transfer from this rate schedule will not be eligible to participate for a 12-month period following the date of their exit. This schedule is not available for service to seasonally disconnected loads.

New or Expanding Large Load – Schedule 50

Applicable to load associated with a new facility, existing facility not served by PUD 3, or an expansion of an existing facility which will result in an increase in power capacity to PUD 3 of 0.5 aMW or more over any consecutive 12-month period, or 1 MW of demand or more over any consecutive 12-month period. PUD 3, at its sole discretion, will make a determination as to what constitutes a facility for purposes of identifying a New or Expanding Large Load (NELL). All consumers being served under this rate schedule will be required to enter into a contract with PUD 3 before delivery of electric service begins.

If a load associated with a new facility, an existing facility not served by PUD 3, or expansion of an existing load was initially determined by PUD 3 to not be a NELL and was billed under the applicable rate schedule, but such load is later determined by PUD 3 to be a NELL, then PUD 3 will begin billing such load consistent with this rate schedule and will require the NELL to enter into a contract with PUD 3.

Once a load associated with a new facility, an existing facility not served by PUD 3, or expansion of an existing load was determined by PUD 3 to be a NELL, such load will continue to be treated as a NELL even if such load decreases over time. This schedule is not applicable to sale for resale which is prohibited by PUD 3.

Large Industrial – Schedule 61

Applicable to current industrial consumers at primary voltage of 12,470, having measured demands of not less than 1,000 kW, with the consumer's connection being at a distribution substation. This schedule is not applicable to sale for resale which is prohibited by PUD 3. This schedule is no longer available except to current customers under this schedule.

Renewable Resource Option “Green Power”

This is a voluntary program that provides customers the opportunity to support additional renewable resource options (Green Power). Participants will see a line-item charge on monthly billings to aid in the use and development of Green Power resources which are generation facilities fueled by energy sources including wind, solar, geothermal, landfill gas, wave or tidal action, gas produced during the treatment of wastewater, qualified hydropower, or biomass based on solid organic fuels from wood, forest, or field residues.

PUD 3 cannot guarantee that the power delivered to consumers under this renewable resource option is actual energy from Green Power resources.

Enrollment & Termination: Consumers are required to complete PUD 3’s enrollment process to participate in this program.

Supplemental Schedules

The following schedules are included in the supplemental schedules document below:

  • Schedule 91 - Green Power
  • Schedule 92 - Tax Clause
  • Schedule 93 - Purchase Power Adjustment Clause
  • Schedule 94 - Low-Income Energy Assistance Surcharge

Supplemental Schedule (PDF)

Surcharge – Low-Income Energy Assistance Surcharge Explanation

The Low-Income Energy Assistance Surcharge is a result of the PUD’s need to comply with the Washington State Clean Energy Transformation Act (CETA) legislation RCW 19.405, section 120 which requires utilities to provide energy assistance to “low-income households with a priority given to those with a higher energy burden.”

The PUD’s existing low-income programs did not provide this priority, however participants currently enrolled in those programs will be grandfathered in. To ensure compliance, a new low-income energy assistance program was created, and the cost will be recovered through a surcharge to customers which will fluctuate monthly but is estimated to be below $5 per month.

Since the law also requires assurance of equitable distribution of benefits and a reduction of burdens to vulnerable populations and highly impacted communities, qualifying accounts will be exempt from sharing in the cost of the programs (i.e. the surcharge).

Taxes – State and City

Utility Taxes on Your Bill

Washington State imposes two taxes on public utility district customers. For customers who live within the Shelton city limits, there’s an additional tax charged by the city.

Why Do We Have These Taxes? What Are the Rates?

Washington State Public Utility Tax

Operators of certain public service businesses (such as electrical utilities) are subject to the Washington State Public Utility Tax. Other public service businesses subject to this tax include businesses that engage in transportation, communications, natural gas, and water. The tax is in lieu of the business and occupation (B&O) tax. The majority of the funds are distributed into the state general fund. A portion, however, provides financial assistance to local governments for maintenance of public works facilities. This tax is applied to PUD 3’s retail electric sales and services. See RCW 82.16 requirements. You can view Department of Revenue's explanation of the tax.

Washington State Public Utility District (PUD) Privilege Tax

In addition to the Public Utility Tax, the PUD 3 pays the Washington State Public Utility District (PUD) Privilege Tax. The tax is based on the amount received from the sale of electricity and is intended to be in lieu of property tax, since public utility districts are governmental entities and do not pay property taxes. The tax is collected from every utility district for the act or "privilege" of engaging within the state in the business of operating works, plants or facilities for the generation, distribution and sale of electric energy. The state keeps a percentage for the state general fund and for public schools, and the rest is distributed proportionately to counties the Public Utility District serves. This allows schools and other taxing districts to receive revenues from the PUD. See  RCW 54.28 requirements.

City of Shelton Electric Public Utility District Tax

The city of Shelton charges an Electric Public Utility District Tax for PUD 3 to operate works, plants, or facilities for the generation, distribution, and sale of electric energy within the city limits. Essentially, it pays for the right to do business in city right of way.

How Are Taxes Calculated for Mason County? The City of Shelton?

Since these taxes are based on the amount received from the sale of electricity, they are reported to the Department of Revenue and the city of Shelton as part of the PUD's taxable gross revenue. Many utilities include these types of taxes in their electric rates. Mason PUD 3 used to have these taxes buried in the rate as well, but for transparency purposes, the PUD has broken out the tax rates to show customers precisely what portion of their bills go to taxes the utility must pay.

The argument we often hear from customers is “you can’t tax a tax!” We totally agree, however the Department of Revenue doesn't classify these as a tax to the consumer, instead it classifies it as a portion of the kWh rate and/or taxable gross revenue (income) of the District – and then the PUD pays these taxes on that taxable gross or revenue.

RCW 54.28.011 defines "Gross Revenue" as the amount received from the sale of electric energy, which also includes any regularly recurring charge, billed to consumers as a condition of receiving electric energy. The taxes explained above are classified as regularly occurring charges and therefore are included in the meaning of gross revenue.

State tax calculation for PUD 3 customers outside the city limits of Shelton:

  1. Total PUD Charges x .038734 = State Public Utility Tax
  2. (Total PUD Charges + State Public Utility Tax) x .0214 = State PUD Privilege Tax

State and local tax calculation for PUD 3 customers within the city limits of Shelton:

  1. Total PUD Charges x .038734 = State Public Utility Tax
  2. (Total PUD Charges + State Public Utility Tax) x .0214 = State PUD Privilege Tax
  3. (Total PUD Charges + State Public Utility Tax + State PUD Privilege Tax) x .06 = Shelton Electric Public Utility District Tax
System Charge Explanation

What is a System Charge?

Ready to serve. Power when you need it. Sharing costs between part-time residents and the local folk. Those are the aims of a system charge.

Two things make up rates. The energy price that covers the cost of electricity PUD 3 purchases and sells to its customers, and the system charge - the cost to operate and maintain the system.

Many rural utilities design their rates to balance the cost of service for full-time residents and vacation home customers. The result is usually lower per kilowatt-hour rates and somewhat higher system charges when compared with more urban areas.

PUD 3 has a lot of vacation homes (over 25%). Our studies show that a daily charge mixed with a per kilowatt-hour rate better addresses spreading the cost more equally among seasonal and full time residents.

The system charge has been a part of PUD 3's electric rates since 1978. To explain the system charge, consider the case of a vacation cabin. Even though it is often unoccupied for long periods of time, there are still fixed costs for being ready to serve the cabin. Though power is not being used, the meter read is collected, the billing processed, and if there's a storm, the damage to the PUD's electrical system is repaired.

If those fixed costs were added to the price of each kilowatt-hour of electricity, the large users (such as local electric heat customers) would end up paying for the services used by that cabin. So instead, with the system charge, those costs are divided evenly among all customers connected to the system. That way, each customer is being charged the full costs of having their home connected and ready to be served by the electric system whether or not they consume electricity.

Think of the system charge as a “ready to serve charge.” Regardless of the amount of electricity a customer uses, or when, they assume that the service will always be available when they are ready to use it. This helps share costs across all customers; full-time and seasonal.

If you or someone you know could use energy assistance, learn more about PUD 3's Assistance Programs for qualifying customers.