It’s going to cost a lot more to add electric to develop land or improve electric services next year. 

Beginning February 2025, new residential and commercial construction projects in Jefferson County will trigger the payment of a new, electric service capacity fee, following a December vote by the Jefferson County PUD Board of Commissioners.

The fee will also apply to upgraded electric service.

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.

Agency staff and commissioners say the one-time fee will help new development fund essential infrastructure projects to meet new demand. The charge goes into effect Feb. 3, 2025.

“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.”

Funds generated from capacity fees aid projects across the district, including the proposed Port Townsend Mill Road substation, distribution feeder projects in Port Ludlow and Marrowstone Island and transformer purchases.

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 residential 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 three years of the program. PUD staff will provide updates throughout the year, with the Board approving the slated increase annually.