Wahkiakum PUD is moving to build a new substation beside its Cathlamet substation for greater capacity and to minimize power outages.

The board of commissioners discussed the project at its regular board meeting Tuesday.

The project’s cost of $2.9 million would include construction and a new transformer for $600,000, said PUD manager Dave Tramblie.

The board is strategizing lowest cost financing, and working with engineers to design the station. The costs of financing to ratepayers could be as low as $5 per month, based on the terms the district is able to obtain, Tramblie said. The construction could begin in early 2012.

The PUD will be paying at least $132,000 more for power as of October, 2011, and commissioners are considering whether to start collecting the higher rates earlier in the year.

“Maybe we should make a two-step approach,” Larry Reese said. “We could get people used to paying more during the summer when bills are generally lower, rather than hitting them in the winter when charges are higher.”

If the $132,000 were averaged across the system’s 2200 connections, the increase would be a few dollars per month, according to commissioner Bob Jungers. But the increase will more likely be based on usage, and Bonneville Power Administration’s projections have been unreliable, he said.

In other business, Jungers proposed the PUD commissioners hold a monthly workshop to spend time on long-term planning and contingencies.

The board agreed to meet at 5:00 p.m. after its second meeting each month, which occurs on the third Tuesday of the month. The workshop will be a continuation of the board meeting in the morning and will be open to the public.

The commissioners said they would invite staff if necessary, but did not expect to need them at all of the meetings.

Richard Erickson told the board the newly merged Economic Development Council and Chamber hoped for PUD participation on its board. Erickson answered questions about the chamber’s move to the Julia Butler Hansen house and the organizational structure of the combined entity.

The board met in executive session and directed PUD attorney Tim Hanigan to file suit against the Washington Department of Revenue to collect a refund of a privilege tax for 2008-2009 which would amount to $15,000.

Hanigan said other utilities had filed suit for this refund.