Bonneville Power proposes 3.5 percent rate hike

The Bonneville Power Administration is proposing a 3.5 percent wholesale power rate increase and a 1.1 percent increase in transmission rates for fiscal years 2018 and 2019.

The additional revenue would support BPA investments in the Federal Columbia River Power System.

The average proposed wholesale power rate is $33.75 per megawatt hour. About half of the rate increase is due to higher program costs. Those include the cost of maintenance and operation BPA pays to the Corps of Engineers and the Bureau of Reclamation to run federal hydro facilities and the increased costs of the fish and wildlife program.

BPA believes it will be able to provide reliable transmission service and invest in substantial capital projects with an increase that is less than the rate of inflation.

The rate-setting process begins in November and will culminate with final rate decisions in July 2017; the new rates will take effect on Oct. 1, 2017.

Bonneville Power provides electricity to Idaho Falls Power, Fall River Rural Electric in Ashton, and Lower Valley Energy in western Western Wyoming.

Fall River Electric spokesman Ted Austin said the cooperative’s board will not be able to make a final determination about the possible impact on local electricity rates until the rate case is settled.

Idaho Falls Power Assistant Manager Bear PraIrie agreed. “Wholesale power supply expenses make up over half of the total operating expenses of the utility’s budget,” said PraIrie. “BPA is the majority of this expense, and any increase in their rates causes a direct increase in our budget. We continue to engage BPA on a regular basis to reinforce the need to control costs to maintain affordable power rates. Idaho Falls Power will continue to be engaged with BPA through the rate case process as it develops over the next eight months, leading to the final rate decision in early summer 2017.”