News about Rates
Benton PUD's rates increase January 1, 2010
Benton PUD customers will see a rate increase on their monthly bill starting January 1, 2010. Residential customers’ rates will increase 4.6 percent which impacts an average bill of $90 by $4.14 a month. The cost per kWh will increase from $.0578 to $.0605 and the base charge will increase to $9.20 from $8.80.
The rate increase follows five consecutive rate decreases. The last increase Benton PUD customers received was in July of 2003.
A $15 million increase in net power costs is the key driver for the rate increase in 2010. Power costs represent nearly two-thirds of Benton PUD’s annual expenditures. The increase in power costs is driven primarily by three factors: 1) a six percent increase in wholesale power rates from the Bonneville Power Administration as of October 1, 2009, 2) the cost of renewable power resources and conservation programs implemented to meet mandates imposed by the Energy Independence Act (Initiative 937), and 3) a reduction in the amount of revenue Benton PUD receives from selling excess power back into the wholesale power markets, which in turn is driven by a dramatic drop in wholesale power prices due to the recession.
The primary driver for the increase in BPA wholesale rates are the rising costs in fish and wildlife programs. In upcoming years, nearly one billion dollars will be spent annually on programs for fish recovery.
Benton PUD conducts a cost of service study which determines the rate increase for each rate class. Small General Service will increase 7.1 percent, Medium General Service will increase 8 percent and Large General Service will increase 7 percent. Irrigation classes will increase 7.2 and 8 percent.
Rate Information Meeting Presentation
Regional Issues Impacting Rates
Customers' received rate credit from June 2008 to May 31, 2009 - May 1, 2009
Starting June 2008, Benton PUD customers received a credit on their bill. Residential customers’ credit was $0.004 per kilowatt hour (kWh) used, which represented approximately a 7% reduction from their standard rate per kWh. Then in November, Residential customers’ credit on their monthly bill increased to $.0055 per kWh used, representing a 9.5% reduction from their standard rate. General Service customers’ credits range from $.0055 to $.0066 per kWh used. The credit concluded May 31, 2009. Large Irrigation customers received a line item credit of $.0020 per kWh for three months (June – August) due to their seasonal energy usage with a final payment distributed in November.
Benton PUD received approximately $ 8 million from the Bonneville Power Administration (BPA) in two payments due to the interim relief payment agreement associated with the Residential Exchange. Benton PUD received approximately $6.4 million in April with the balance due paid to Benton PUD in October at the conclusion of the BPA 2007 Supplemental Rate case. The customer rate credit was adjusted to reflect the final payment received from BPA this week.
The payment to Benton PUD was part of the proposed $257 million BPA agreed to pay to public utilities in the Northwest. The Residential Exchange Program was established in 1980 in the Northwest Power Act to share access to low-cost hydropower with investor owned utilities’ residential and farm customers. In May, the 9th U.S. Circuit Court of Appeals ruled that BPA had exceeded its authority and failed to follow the Act in determining residential exchange benefits for the region’s investor-owned utilities.