Light Reading - June 2025

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LIGH READING

Fire Safety Mode

What you need to know this fire season.

Fire Safety Mode represents an alternative operational strategy for our electrical distribution system, prioritizing system security and public safety over regular operations, which may lead to increased service interruptions. Under normal circumstances, when an external object, like a tree branch, contacts our power lines, our devices detect the short circuit, briefly interrupt power, and then try to automatically restore it. If the obstruction is cleared, power is reestablished quickly, resulting in only a minor service interruption.

However, in Fire Safety Mode, this automatic restoration functionality is turned off (nonreclose) in areas identified as having a higher wildfire risk. Consequently, service disruptions that would typically be momentary will instead be prolonged, necessitating a crew to manually inspect and restore power. Fire Safety Mode is currently scheduled to

commence around June 1, 2025; however, this date may change depending on weather conditions. Once initiated, fire safety mode will remain active throughout the dry season and will only be deactivated when burn bans are lifted and cooler weather returns.

Below is a our fire safety mode level indicator. To find out what level your

location is at, please visit our website at inlandpower.com throughout this fire season. A map and level indicator will be updated as conditions change.

We value your membership and appreciate your patience as we diligently work through the 2025 fire season.

Inland Power is my cooperative!

Washington State legislative recap

The Washington legislature officially adjourned Sine Die on Sunday, April 27, 2025. This session was a turbulent and eventful 105-day period marked by significant policy debates, budget struggles, leadership changes and intense revenue goals.

The session saw tensions between the new Democratic governor, Bob Ferguson, and legislators from his own party. Ferguson highlighted the work the Legislature did this year and was happy with the protections provided for Washingtonians. Governor Ferguson expressed cautious approval of the budget but stopped short of a full endorsement, indicating he would review the budgets in detail before sharing his thoughts. He did leave it open that he may veto certain items in the budget. He has 20 days from Sine Die to act on the budget, or it will be implemented as is. His veto power is much broader when it comes to the budget than it is for policy. With policy vetoes, he can veto the entire bill or a full section. He cannot veto line items. In budget bills, the governor has the power to veto specific appropriation items. This allows the governor to reject particular funding allocations without vetoing the entire budget bill.

Subsection Veto: The governor can veto subsections within appropriation items. This provides more granular control over the budget, enabling the governor to remove specific parts of funding allocations.

BUDGET AND TAX POLICIES

The session was dominated by efforts to address a multibillion-dollar budget deficit. Lawmakers passed a two-year $77.8 billion budget balanced with spending cuts and new taxes. One of the governor’s main objectives was resources for law enforcement for cities and counties. The final budget includes $100 million for additional resources for cities and counties to hire and train more officers.

The tax package, totaling around $9.4 billion over four years, included increases in the state’s main business tax and a higher rate for capital gains above $1 million. These measures were met with sharp criticism from Republicans, who argued that a balanced budget could have been achieved without tax hikes, which they argue could harm economic growth and burden taxpayers. Supporters argue that these measures are necessary to address the budget deficit and fund essential services.

HERE IS AN OVERVIEW OF THE KEY TAX MEASURES:

Business and Occupation (B&O) Tax 20% across-the-board-increase on businesses.

- Surcharge on Large Businesses: An additional 0.5% surcharge was imposed on businesses with annual revenues exceeding $250 million. This measure targets large corporations to generate substantial revenue for the state.

Capital Gains Tax

- Increased Rate: The capital gains tax rate was increased for gains

above $1 million. This tax targets highincome individuals and aims to generate significant revenue from investment profits.

Estate Tax

- Higher Rates for Large Estates: The estate tax rates were increased for larger estates. This measure is intended to ensure that wealthier individuals contribute more to state revenues upon their passing.

Sales Tax on Services

- New Services Taxed: The sales tax was expanded to include certain services that were previously exempt. This broadening of the tax base aims to capture revenue from the growing service sector.

Liquor License Fees

- Increased Fees: Liquor license fees were raised, impacting businesses that sell alcoholic beverages. This measure is expected to generate additional revenue from the hospitality industry.

Transportation Revenue

- Gas Tax Increase: The gas tax was increased by 6 cents per gallon, starting in July. This measure is intended to fund transportation infrastructure projects and address maintenance needs.

Challenges and Controversies

The session was marked by several challenges:

Budget Deficit: The largest hurdle was writing the next two-year budget amidst lower-than-expected tax collections and inflation-driven cost increases.

Policy Battles: Heated debates on parental rights and tax policies were prominent.

Leadership Shakeups: The unexpected deaths of a sitting senator and a former House speaker added to the session’s turbulence.

Pictured (left to right): Jennifer Lutz, COO Inland Power, Marcus Riccelli, WA State Senate 3rd District, Kristina Bahr, Inland Power Board of Trustee

ENERGY

On the energy front, we say less tensions that we have the last several years. There were a few bills that dealt with power supply and transmission as well as several wildfire bills. Dig laws were examined, With the immense focus on the budget deficit this year, many of the bills introduced this year were under more scrutiny as lawmakers grappled with the controversial budget issues.

Below is a list of bills that passed the legislature and were delivered to the Governor’s desk.

EHB 1329 – Concerning wholesale power purchases by electric utilities under the Washington clean energy transformation act.

SHB 1539 – Addressing wildfire protection and mitigation

SHB 1563 – Establishing a prescribed fire claims fund pilot program.

SB 5445 – Encouraging utility investment in local energy resilience.

CONCLUSION

The 2025 legislative session in Washington state was a complex and challenging period, with lawmakers navigating significant fiscal, policy and energy issues. The outcomes of this session will have lasting impacts on the state’s governance and its residents.

Affordability in Washington state will become more difficult as these new taxes are implemented.

A snapshot of the rising cost of Goods and Services

We understand that many individuals have experienced financial pressure on their budgets over the past five years due to inflation in the cost of goods and services. Since 2019, the expenses associated with operating a business and managing a household have significantly increased.

Here’s a snapshot of where Inland Power’s electricity lands in the mix and overall rising cost of goods and services in the U.S.

Steps to save energy in your home this summer

When outdoor temperatures rise, our electricity consumption tends to increase as well. This is primarily due to our air conditioners working harder and running more frequently to combat the intense heat outside.

We have a few energy-saving tips for you to consider this summer season.

• Set your thermostat: Choose the highest comfortable setting and increase it by several degrees when possible. Your cooling system will need to run longer to compensate for the temperature difference between the thermostat and the outdoor conditions.

• Seal air leaks: Use caulk and weatherstripping around windows and exterior doors to eliminate air leaks and drafts. This will prevent your cooling system from working harder than necessary.

Utilize ceiling fans: Ceiling fans can make you feel a few degrees cooler. Keep in mind that they cool people, not rooms, so turn them off when a room is unoccupied.

• Adjust ceiling fan direction: In the summer months, set ceiling fan blades to rotate counterclockwise to push cool air down, creating a windchill effect.

• Block out sunlight: Close blinds, curtains, and shades during the hottest part of the day to minimize unwanted heat gain from sunlight.

Consider blackout curtains: Opt for blackout curtains with thermal backing or reflective lining to effectively block both heat and light.

• Use smaller appliances: When cooking, utilize smaller appliances like slow cookers, air fryers, and toaster ovens to reduce heat in your kitchen.

Along with these tips, Inland Power is excited to provide a no-charge ENERGY AUDIT SERVICE exclusively to our members. This comprehensive assessment offers insight into your home’s overall energy consumption.

An energy audit can help you identify:

 Your home’s total energy usage.

 Areas where energy is being lost.

 Key problem spots and necessary fixes to enhance your home’s efficiency and comfort.

We recommend that a home energy audit be your first step before undertaking any energysaving improvements or installing a renewable

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Light Reading - June 2025 by Inland Power & Light - Issuu