Klickitat Public Utility District’s board approved a 3% electric rate increase as part of adopting its 2026 budget. The new rates take effect on January 1 and apply across all retail rate classes. The increase will add an average of $4.46 per month to a residential customer’s bill. The PUD says its power costs continue to rise due primarily to higher Bonneville Power Administration rates and increased reliance on higher-cost Tier 2 power as customer demand exceeds the PUD’s BPA preference allocation. BPA increased rates by approximately 4.5% in October 2025. Additional cost pressures include higher transportation, materials, insurance, and construction expenses. General operating cost increases account for roughly half of the rate adjustment and will increase KPUD’s annual revenue requirement by approximately $1 million.