The Bonneville Power Administration is planning a rate hike, with a rate case saying the hydroelectric power producer plans to raise rates by 6.3%.
That’s leaving some electricity providers saying they will likely need to hike rates their customers pay, due to an increase in what they pay.
BPA published a notice for an expedited rate proceeding last week, saying that a recent court-ordered injunction that requires it to spill water over dams on the Columbia and Snake Rivers rather than allowing it to go through turbines and general electricity.
Among the plaintiffs on the suit is the State of Oregon.
"For me, it’s been very frustrating to see the seemingly lack of concern about the affordability index coming out of Salem," said Scott Coe, the general manager of Lane Electric Cooperative and a former longtime BPA employee who worked on rate cases.
Coe said LEC’s board is meeting this week, and how to deal with a potential rate increase is among the topics it will discuss.
“This is the cost increase that’s going to put us on the teeter-totter of whether we have a rate increase this coming year or not,” said Coe.
LEC gets all of its electricity from BPA, and 38% of its annual budget goes toward paying for electricity.
Another rural electricity provider, Emerald People’s Utility District, is having a similar debate. It gets about 95% of its electricity from BPA.
“We’ll certainly try to find efficiencies elsewhere, but it’s a very big ask when Bonneville has rate increases, and especially those that are unplanned like this specific one related to the court-ordered spill," said EPUD general manager Kyle Roadman.
That could mean a significant increase for EPUD customers.
“Depending on how much customers are using, they’re going to see varying levels of impact,” said Roadman. “It could be hundreds of dollars a year. We’ll have to see exactly what the final outcome of the rate case is.”
Lane County’s largest electric utility, the Eugene Water & Electric Board, declined to comment, referring instead to a statement put out by the Public Power Council, a Portland-based group that represents EWEB and 29 other Oregon electric utilities, including EPUD and LEC.
That statement said that the group will be an active participant in the rate case, “with a focus on protecting customers, ensuring transparency and determining how the financial consequences of the court-ordered operations can be addressed as fairly and responsibly as possible.”
A proposed schedule included in BPA’s rate case calls for hearings and public comment through mid-October, with a final record of decision by Dec. 18.
A statement on B-P-A’s website said it will not comment on a rate case while it is ongoing.
