Thursday, October 1, 2026
CHELAN COUNTY — With Washington facing a multibillion-dollar budget shortfall and a shortened legislative calendar ahead, Chelan County Public Utility District leaders say the 2026 legislative session is shaping up to be one of restraint, difficult trade-offs, and renewed pressure on utilities statewide.
During a presentation to commissioners mid-month, Kelli Scott, Chelan County PUD’s strategic affairs manager, outlined the issues the district expects to track closely when lawmakers convene Jan. 12 for a 60-day session, kicking off the second year of the state’s two-year budget cycle.
State budget writers are projecting a $4.3 billion deficit for the 2027–29 biennium, with roughly $1.5 billion already looming in the current cycle, Scott said. That outlook has prompted legislative leaders to warn colleagues not to expect funding for new projects during the upcoming session.
Gov. Bob Ferguson is expected to release his supplemental budget proposal within days. Scott said the governor has signaled an intent to rely on spending cuts rather than tax increases, though lawmakers may pursue other options as negotiations unfold.
Against that backdrop, district officials are preparing for policy debates that could directly affect local utilities, especially around wildfire risk, energy affordability, and the state’s rapidly growing demand for electricity.
Scott said wildfire risk remains one of the most urgent issues for utilities serving broad forested and rural areas like Chelan County. Even though the district has invested quite heavily in mitigation — including undergrounding electrical infrastructure and developing a public safety power shutoff program — broader conditions continue to worsen.
Declining forest health, combined with increasing fire severity across the West, has driven insurance costs sharply higher. Since 2019, liability insurance premiums for public utility districts have risen 357 percent, Scott said.
State lawmakers are discussing the possible creation of a statewide wildfire fund, but district officials cautioned that any such policy would need to address liability exposure as well as prevention. Without that balance, Scott said, the long-term solvency of a state fund could be at risk.
Chelan County PUD leaders emphasized their continued focus on affordability, noting that the district currently has the lowest energy burden in Washington — a position rooted in decades of investment in hydropower and locally governed decision-making.
The district also operates a range of customer assistance programs in partnership with community organizations, Scott said, and plans to continue strengthening those efforts locally.
At the same time, lawmakers may revisit proposals for a statewide energy assistance program, including legislation that did not pass in 2025 but remains technically alive. Scott said the district remains concerned about proposals funded through customer utility taxes, which could unintentionally increase bills for local ratepayers.
Rapid growth in electricity demand, which is being driven in part by data centers and other large power users, is expected to remain a central topic in Olympia.
Scott noted that Chelan County PUD General Manager Kirk Hudson has participated in a governor-convened task force examining data centers’ economic and energy impacts. In those discussions, Hudson highlighted the district’s locally developed framework for evaluating large load requests.
District leaders stressed that utilities face very different conditions across the state and that solutions to resource adequacy challenges should come from local utility leadership rather than one-size-fits-all mandates.
Legislation related to data centers and energy demand could re-emerge this session, Scott said.
The district also expects renewed debate over how quickly the state can build new transmission and generation infrastructure. While proposals to expand the state’s role in transmission development may return, district officials said streamlining permitting processes would be a more effective way to accelerate projects.
Other issues the district plans to monitor include procurement flexibility for energy projects, potential changes to Climate Commitment Act allowance structures, workforce-related legislation, and renewed interest in nuclear energy policy.
Throughout the session, Scott said, the district’s approach will remain rooted in protecting local governance and minimizing costs for customers.
Commissioners echoed that concern, noting that many proposals under discussion in Olympia carry funding implications that could ultimately be borne by utilities with the financial capacity to absorb them.
Andrew Simpson: 509-433-7626 or andrew@ward.media
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