Published August 2003

BPA plans to raise
its power rates

By Lukas Velush
Herald Writer

In a sign that electricity bills in Snohomish County could be shooting up again, the Bonneville Power Administration has announced it will raise rates 5 percent overall on Oct. 1.

Although BPA Administrator Steve Wright could adjust the rate up or down this month, the July announcement is considered a final decision.

The rate hike is a massive setback to Snohomish County PUD, which has struggled to keep down rates that are among the highest in the state.

“Obviously, we’re extremely disappointed in the announcement,” said Ed Hansen, PUD general manager. “We know our customers will be devastated if we have to raise their rates.”

Bonneville is actually raising its rates 15 percent — it got to 5 percent by folding a long-planned 10 percent rate reduction into its rate case.

The PUD’s three-person elected commission has yet to decide whether to pass the rate hike on to the utility’s 270,000 customers, but it’s clear that the PUD doesn’t have the money to cover the increase, Hansen said.

“I don’t know where we’re going to get the money from,” Hansen said.

The rate hike will be particularly difficult for the PUD to swallow because it gets 80 percent of its power from Bonneville and is its largest customer. Bonneville has already raised its rates 46 percent since 2001.

Hansen hasn’t given up hope that Bonneville will be able to lower the rate increase to zero this month, during a yearly rate review window when BPA can adjust its rates.

Bonneville is raising its rates to cover a $150 million budget shortfall.

Last winter the federal energy wholesaler had a $920 million budget shortfall linked closely to the 2000-2001 energy crunch, when a West Coast power shortage caused electricity prices to climb to record levels.

BPA spokesman Ed Mosey said the agency is continuing to look for ways to cut costs, but said it has largely done what it can to keep the rate hike small.

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