Cascade Locks City Hall
Noah Noteboom / fileCASCADE LOCKS — City Council met last week to discuss garbage service rates and the loss of a large industrial electrical client.
At the Oct. 12 meeting, Hood River Garbage Director Jim Winterbottom approached the council to request an annual rate increase of 2.57%. The council approved this increase, bringing the current weekly pick-up rate for a 32 gallon can from $22.01to $22.58.
As reported by Columbia Gorge News on Aug. 24, large industrial customers in Cascade Locks face a 37.5% increase in electrical rates starting Nov. 1. Since the updated electrical rates were passed, the city’s largest customer, Abundant Mines, a bitcoin mining operation, has decided to move its operations to Texas.
CEO Joe Lively addressed the council, explaining that the company was moving out of the community due to the sudden, dramatic increase in the rates. This customer has asked for a delay in the rate increase in order to finish out their last month at the previous rate, though they hoped to return at some point in the future. This business pays around $300,000 for power per month, and part of that goes to support the overhead that the entire community relies on.
The city’s goal is that roughly 50% of the cost goes to fund the power and transmission, and 50% goes to support operations and maintenance, according to Interim City Administrator Gordon Zimmerman. This will mean a loss of revenue for the city.
If the city does not grant the rate increase delay, Abundant Mines will simply close earlier to avoid the added costs.
City staff has adjusted its BPA contractual amount, and the city’s budget must be updated due to the unexpected loss of revenue. Zimmerman informed the council that he and General Line Foreman Alan Fox had also made minor updates to the city’s electrical rate resolution, which must be revised to allow this rate increase delay.
Councilor Bernard Seeger, who originally voted against the large rate increase, argued a second time for an incremental increase.
The general council did not support this. At roll call, Seeger and Cramblett voted no to the rate increase delay and updated resolution, and Councilors Tiffany Pruit and Courtnee Keilman and Mayor Brenda Wood voted yes.
The updated resolution, which includes a rate increase delay for Abundant Mines, passed 4-2.
The next Cascade Locks City Council meeting is set for Monday, Nov. 9.
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