Published August 2003

BPA rate increases: another blow to economic recovery

By Don Brunell
Guest Editorial

The Northwest’s hopes for economic recovery have suffered another setback. Just a month ago, on July 1, the Bonneville Power Administration announced an electrical rate hike that will hit consumers with an aggregate 15 percent increase.

“We are very disappointed that BPA didn’t try to cut costs before passing on a rate increase to the consumers,” said Kristen Sawin, an expert on energy issues with the Association of Washington Business. “This increase is to the detriment of the entire region and its economy. Electrical rate hikes will make it more expensive to do business in the Northwest.”

These are desperate times. Many industries are teetering on the verge of closing, and if BPA imposes its rate increases, it can wave “bye-bye” to more jobs and employers. This increase will cripple employers and working families in the Northwest states of Washington, Oregon, Idaho and Montana. If we don’t take action soon to reduce operating costs, especially energy costs, the Pacific Northwest will turn into the nation’s newest rust belt.

BPA insists its rate increase is necessary to settle a 2001 lawsuit by approximately 60 public utilities. The utilities allege that BPA misused the 1980 Northwest Power Act, which allows it to sell energy to private, investor-owned utilities.

Settling the lawsuit could save $200 million and mean an overall rate decrease of 4 percent, according to BPA, which says it currently needs approximately $140 million to make up a budgeting difference.

“AWB’s members have to live within their means in order to stay in business,” Sawin observed. “Economic recovery has just become more difficult because BPA insists on rate increases instead of living within its means.”

Don Brunell is president of the Association of Washington Business, representing 3,700 members, including chambers of commerce and professional associations.

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