BPA rates going up
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July 27, 2013 |
The Bonneville Power Administration this week
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, said BPA in a press release,
“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 October 1.
“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,” said the press release.
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,” said BPA.
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. |
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