The Cowlitz PUD Board of Commissioners has approved its 2026 budget, showing a shortfall of nearly $7 million.

Officials say the gap is due to rising power costs, particularly from the Bonneville Power Administration (BPA), which supplies about 90% of Cowlitz PUD’s electricity. Beginning October 1, BPA will raise its rates, resulting in a 4.2% increase in power costs and a 12.4% increase in transmission costs for the utility.

As previously reported, the PUD is proposing a rate hike. The board will vote September 23 on a 4% increase for residential customers and 1.2% for commercial and industrial customers, effective October 1. Officials say the change would offset about $3.5 million in BPA increases, with the remaining shortfall covered by reserves.

For the average residential customer, the increase would equal about $5 per month.