As 2025 draws to a close, Richland Energy Services (RES) remains focused on what matters most to our community: delivering safe, reliable and affordable electricity for every resident, business and industry we serve. The Tri-Cities region continues to grow, diversify and evolve, and as a locally-owned and -operated municipal utility, RES plays a central role in supporting that progress while preparing for the future of energy.

Meeting growth head-on

Richland’s electric system continues to perform well, benefiting from both long-range electrical system planning, operating personnel and our region’s relatively low exposure to natural disasters. Our crews work year-round to maintain and enhance the system, carrying out targeted improvements and routine substation maintenance to strengthen overall resilience.

Over the past year, we have completed several upgrades to reinforce system performance. These include replacing a 1948 substation transformer and its switchgear, modernizing protection and control equipment, and expanding capacity in high-growth areas such as north Richland, the Queensgate corridor and Badger Mountain South. 

A second transformer from the same era is scheduled for replacement in 2026. These projects ensure our system can keep pace with new residential construction, expanding commercial areas, and growing industrial demand.

In addition to these infrastructure improvements, the city of Richland recently upgraded our customer service utility billing portal, providing residents with more accurate data, detailed usage tracking, and improved tools for managing their energy consumption.

We also continue to focus on system hardening through redundancy improvements, vegetation management and expanded grid automation. Although the past year brought a brief uptick in unplanned outages, the long-term trend reflects steady improvement in reliability, thanks to systematic investment and modernization.

A balancing act

As a not-for-profit municipal utility, every dollar RES collects is reinvested directly into operating, maintaining and improving the electric system. This community-owned model allows us to prioritize long-term value and stability.

Maintaining affordability remains a core part of our mission. Despite ongoing inflation in equipment, materials and labor, and increasing regulatory obligations, we have kept electric rates stable since the last adjustment in 2019. This has required careful financial planning and disciplined spending.

That said, cost pressures are rising. Wholesale power and transmission costs across Bonneville Power Administration (BPA) customers have increased by an average of 8.9% and 19.9%, respectively. Our most recent cost of service analysis recommends an average 8.5% rate increase for 2026 to keep the system financially healthy, reliable and safe for our employees and customers. These decisions are difficult and will be considered carefully by RES and the Richland City Council.

Washington state’s Clean Energy Transformation Act adds further operational and financial complexity. 

While we implement the state’s long-term clean energy vision, meeting regulatory requirements, particularly for smaller public utilities, demands careful investment in electrical infrastructure, long-range transmission and substation capacity planning, active participation in regional economic development and ongoing communication with our customers. Working closely with the city council ensures that each step aligns with both fiscal responsibility and the values of public power.

Advancing clean energy

The clean energy transition presents both opportunities and challenges for Richland. With BPA providing wholesale power to RES, we benefit from a power resource portfolio dominated by hydroelectric and nuclear generation, two highly reliable and carbon-free resources. As of 2024, approximately 88% of Richland’s electricity supply was carbon-free, placing us well ahead of state requirements and among the cleanest energy mixes in the nation.

Looking forward, RES is taking a measured and strategic approach to grid modernization. We are enhancing our outage-management capabilities, enabling faster identification and restoration of service issues. We continue to expand technologies that improve real-time operational system visibility and reduce response times.

We also offer energy-efficiency programs that help customers lower consumption and reduce costs. Heat pump water heaters, for example, provide a strong return on investment in the right applications. Details on available programs can be found at: richlandwa.gov/energyefficiency. 

Tri-Cities advantage

The Tri-Cities region is well positioned for continued economic expansion. Our region’s tradition of affordable energy, modern infrastructure, and strong local partnerships makes it an attractive destination for new investment.

Richland, in particular, is experiencing growing interest from energy-intensive sectors, including advanced manufacturing, data processing, scientific research and agricultural support services. Our proximity to the Pacific Northwest National Laboratory and other research institutions creates a unique intersection between innovation and energy.

Customers occasionally express concern that large new loads, such as data centers, could drive rates upward. However, the 1980 Northwest Power Act prohibits loads greater than 10 average megawatts from being served with federal hydropower from BPA’s system. This requirement ensures that large new loads must secure their own energy resources, protecting existing ratepayers from subsidizing their power supply.

Serving these large customers still requires careful engineering and planning. Large loads bring investments in transmission system capacity that benefit the regional community and create opportunities for other businesses. Industrial loads have specialized reliability and capacity needs, and our staff works closely with BPA, our regional transmission provider, to ensure planned growth can be supported without compromising service for existing customers. As the region expands, this coordination will remain essential.

Looking ahead

As we enter 2026, RES remains committed to operational excellence, financial stewardship and community-driven decision-making. The energy landscape is changing rapidly, influenced by technology, policy, and evolving customer expectations.

Our approach is straightforward: plan long term, invest wisely, and maintain the trust of the community we serve. Public power allows us to make local decisions that reflect local priorities, ensuring that as Richland grows and changes, our energy system grows and adapts alongside it.

We are proud to power Richland today and for generations to come.

Clint Whitney is the city of Richland’s energy services director.