| BPA
Wholesale Rates Still in Jeopardy
Although the “Energy Crisis of 2000” has
passed, the repercussions of it still linger for our
customers because of the current rates they pay. Before
2001, Bonneville Power Administration (BPA) rates were
$23 per megawatt hour. Rates skyrocketed and
BPA blamed its current record high rates of approximately
$31 per megawatt hour on the 2000/2001 California/West
Coast energy crisis. As a result, customers expected
BPA to lower rates substantially from BPA’s current
high levels by October 2006 once the effects of the
California market problems were no longer a dominate
factor.
BPA recently held Power Function Review meetings to
provide BPA customers and interested parties opportunities
to examine, understand and provide input on the budget
decisions that will form the basis for the 2007 wholesale
power rate case. BPA has indicated that it would not lower
rates significantly, but instead, BPA suggested a range
of power rates that could be as high as $39 per megawatt
hour. BPA customers, including Benton and Franklin
PUD, have urged BPA to set and meet a $27 per megawatt
hour maximum rate target for the next wholesale power
rate period. BPA has yet to agree to that target,
despite repeated messages and meetings with their customers.
This is unacceptable. Many BPA customers have tried
to absorb as much of BPA’s last record high rate
increase as they could-- trusting that BPA would lower
rates in the next rate period toward the target of
$27 per megawatt hour. The economic consequence of
BPA’s failure to lower its rates will be severe
on our region and on our community.
BPA needs to take a serious look at escalating costs
in all programs. The demands from special interest
groups for substantial increases in fish and wildlife
funding continue to grow. Funding for these kinds
of programs should be based on good science, prioritized
biological outcomes and cost effectiveness, not just
the whim of special interests. BPA customers
are currently paying a total of $700 million per year
in fish and wildlife costs. That means that over
20 percent of our customers’ bills pay for fish
and wildlife. Enough is enough. The region needs
to focus on programs that provide measurable results
and a real biological benefit to fish. In doing so,
benefits to both salmon and ratepayers will be realized.
There are even other groups wanting more from BPA,
therefore impacting BPA rates. The Direct Service
Industry (heavy industrial customers who purchase power
directly from BPA) have been lobbying for additional
benefits from the federal power system at the expense
of higher rates to non-profit utility consumers – who
can afford them the least. Rates would likely
increase as BPA goes to the market to purchase enough
electricity to meet all customer demands.
BPA must take a serious look at all aspects of business
with the bottom line goal of a $27 per megawatt rate.
We need BPA to make reducing rates and keeping all
costs its top priority. It is time to take a
firm stand. Please contact any or all of the
members of Congress representing the Northwest and
the White House and send them the message that enough
is enough. Tell BPA – no more higher rates.
Submitted to the Tri-City Herald by:
Jeff
Hall, Commission President, Benton PUD – 509-582-1228
Bill
Gordon, Commission President, Franklin PUD – 509-546-5973
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