Snohomish PUD plans 6.5% rate hike to absorb City of Everett wholesale water cost spike
Snohomish County PUD, Washington · Meeting date: September 15, 2026 · Published: September 16, 2026
Snohomish County Public Utility District is preparing to pass through a 21% wholesale water cost increase from the City of Everett, driven by a newly imposed 12% utility tax and rising filtration expenses.
Key points
- The City of Everett supplies approximately two-thirds of Snohomish PUD's water, representing 30% of the utility's operations and maintenance costs.
- Everett's wholesale rates for 2027 are projected to be 21% higher than Snohomish's 2026 budget, adding approximately $1 million in costs for a total of $5.79 million.
- The proposed 6.5% pass-through adjustment will be applied equally across all rate classes effective January 1, 2027, pending board approval on October 6.
Full report
Snohomish County Public Utility District (PUD) is advancing a 6.5% pass-through rate adjustment for its water customers to offset a significant wholesale cost increase from its primary supplier, the City of Everett.
During a September 15 meeting, Chief Water Operating Officer Jeff Kallstrom outlined that Everett's wholesale rates for 2027 will be approximately 21% higher than the PUD's 2026 budget. The spike is largely attributed to Everett replacing a 6% payment in lieu of taxes with a 12% utility tax on August 1, 2026. Additionally, Everett implemented mid-year rate adjustments related to water filtration costs.
Snohomish PUD purchases roughly two-thirds of its water supply from Everett, with the remaining third generated internally. This purchased water accounts for 30% of the PUD's total operations and maintenance costs. For 2027, the PUD forecasts its purchased water costs will reach $5.79 million, an increase of about $1 million over the 2026 budget.
Kallstrom noted that Everett's cumulative rate increases since 2019 total approximately 35%. He attributed the cost pressures to industry-wide challenges, including new contaminant regulations, cybersecurity, climate resilience, and aging infrastructure requiring capital upgrades.
The PUD's Water Utility Pass-Through Policy allows the Board of Commissioners to adjust retail rates to reflect wholesale cost changes from Everett, preserving transparency by isolating the incremental cost impacts. The proposed 6.5% pass-through will be applied equally across all customer rate classes.
The Board of Commissioners is scheduled to vote on a resolution authorizing the pass-through adjustment on October 6, 2026. If approved, the new rates will take effect on January 1, 2027.
This summary was generated by AI based on the source document and may contain errors.
Source: Commission Meeting, Snohomish County PUD