(PORTLAND, OR) The Bonneville Power Administration today
adopted a 9 percent average wholesale power rate increase and an 11 percent
average transmission rate increase. The transmission rate increase is the first
in six years. The new rates support needed improvements to ensure the region’s
federal hydropower and transmission systems can continue to reliably deliver
carbon-free, affordable power to Northwest homes and businesses. The new rates
take effect Oct. 1, 2013.
“We recognize that rate increases are very challenging for
customers, especially for those still in the throes of a slow economy,” said
BPA Acting Administrator Elliot Mainzer. “But the increases are necessary so
that we can preserve the long-term value of carbon-free federal generation and
support the reliability of the high-voltage transmission lines that serve
Northwest public utilities.”
For Bonneville’s utility power customers, the wholesale rate
increase will be an average of 9 percent higher than current rates. The power
rate increase stems from higher costs to operate and maintain the federal
hydroelectric system, higher costs to fund existing long-term agreements for
the fish and wildlife mitigation program and reduced revenues from surplus
power sales due to low market prices.
For transmission customers, the first rate increase in six
years averages 11 percent higher than current rates. The transmission rate
increase stems from a growing construction program driven by the need to repair
and replace aging infrastructure and increase spending on mandatory compliance
and security requirements. An average of $20 million per year in financial
reserves will be used to offset part of the rate increase.
Wholesale power and transmission rates are developed every
two years through a formal rate-setting process with BPA’s utility customers
and other stakeholders. The process began in November when BPA announced its
rate proposals for fiscal years 2014 and 2015.
The new rates will affect utilities differently depending on
the amount of power and type of services they purchase from BPA. Local
utilities ultimately determine the rate impact of BPA rates on individual
businesses and residents.
The final rate proposal will be filed with the Federal
Energy Regulatory Commission at the end of July to provide the required 60 days
for review and approval.
Find more information on the rate case process here: www.bpa.gov/goto/ratecase.
