What is a System Impact Fee?
Based on the feedback we received during the Strategic Plan, that customers want to encourage economic development while keeping rate impacts low, Chelan PUD has implemented a system impact fee to new connections, which will help offset the cost of new infrastructure.
The system impact fee is designed to share the cost of new infrastructure, like substations, by assuming that 20% of the substation will be used for system reliability, and the remaining 80% will support new load added to the system. That means Chelan PUD will be responsible for 20% of the cost of a new substation, which is funded through wholesale surplus power sales. The other 80% will be recovered via existing retail rates (there are no rate increases included as part of this proposal) and the proposed system impact fee for new customers.
We believe the system impact fee will provide the best value, for the most customers, for the longest time by supporting growth in Chelan County while minimizing impacts to existing customers.
To learn more about how we made the decision to implement a system impact fee, visit our Online Open House
from fall 2021, read the Funding Growth FAQ
, or watch the overview video below.