Why propose a rate increase?

• In March 2026, United States District Court Judge Michael Simon issued a Preliminary Injunction requiring significant increases to experimental spill at eight federal lower Columbia and Snake River dams.
  • Increased spill which is purported to improve survival of migrating salmon, reduces the amount of water available to generate electricity, including during high summer demand in August.
  • Consequently, Benton PUD’s wholesale electricity provider, the Bonneville Power Administration (BPA), must purchase replacement electricity at times when power market prices can be volatile and much higher than normal.
  • BPA estimates it will cost $250 million to replace lost generating capability between this year and September 2028. 
  • BPA is proceeding with implementing as much as a 6.3% power rate increase, starting in early 2027.
• BPA and other power costs represent 57% of Benton PUD’s entire expense budget. 
  • Power supply costs account for $90.6 million of Benton PUD’s 2027 annual retail revenue requirement of $157.9 million.
• Since 2020, the electric utility industry has experienced inflationary cost pressures ranging from 20% to 100%, driven by supply chain challenges, raw materials shortages, increased labor costs and tariffs.
• As a consumer-owned not-for-profit utility, increases in our cost of doing business have a direct and significant impact on retail rates.

What you need to know!

• Like the majority of BPA’s more than 130 preference customers, Benton PUD is frustrated by Judge Simon’s Preliminary Injunction.
• Benton PUD is deeply disappointed with the Washington State Attorney General’s Office who provided legal support for the injunction.
• Low-cost hydropower represents as much as 80% of Benton PUD’s annual wholesale electricity supply, so reductions in hydro-electric generating capability translate directly into higher costs for our customers.
• It is projected that similar rate increases may be necessary over the next several years to keep up with rising power supply and operating costs.

Residential Rate Increase