Bonneville Power releases 2019 rate plan
UPDATE:
Idaho Falls Power staff is analyzing details of the Bonneville Power rate proposal to determine the final impact on its total power costs over the wholesale power component.
General Manager Bear Prairie said, ” “We are encouraged by Administrator Mainzer’s continued commitment to cost management. We’ve experienced a 28% increase in our BPA power costs over the prior three rate cases, so while the initial proposed rate increase at 2.9 percent for wholesale power appears moderate it does not take into account increases in our costs from BPA that include reserves and various surcharges.”
The Fall River Electric Cooperative said its board of directors will review the proposal and file comments, if necessary. The board will review the impact of the ultimate BPA rate increase and, at that time, determine if rates will need adjustment.
ORIGINAL STORY:
Utilities that get their electricity from the Bonneville Power Administration (BPA) will likely be paying more for power in fiscal years 2020 and 2021.
BPA is proposing a wholesale power rate increase of 2.9 percent and an average transmission rate hike of 3.6 percent. BPA says the rate proposals include significant program cost reductions and a multi-year grid modernization. That initiative would maximize capacity of the federal power and transmission systems and improve grid efficiency.
Today’s announcement begins a rate-setting process that will end with final decisions in July 2019. The rates would take effect October 1, 2019.
In eastern Idaho and western Wyoming, BPA is a primary supplier of wholesale power to Idaho Falls, Fall River Rural Electric, and Lower Valley Energy. The effect of the Bonneville Power rates on local customers depends on how each local utility accounts for it.
“This rates proposal demonstrates BPA’s commitment to disciplined cost-management while investing in the most valuable work, including grid modernization and strengthening our financial health,” said Administrator Elliot Mainzer. “The proposal is a result of the focus and determination of the BPA workforce, the hard work of our federal and nonfederal generation partners, and an effective collaboration with our customers, states, tribes and other constituents throughout the region.”
BPA is attempting to offset rate pressure from a continued decline in surplus power sales revenue, lower customer and direct-service industry loads, and a financial decision in 2015 to fund energy efficiency through expense instead of capital.
Bonneville Power is also proposing a new tariff, which includes a 3.6 percent average transmission rate increase.
“Our customers have clearly articulated their concerns about our cost structure and long-term competitiveness,” said Mainzer. “By fully absorbing inflation and further reducing costs, we have made real progress in bending the cost curve. But we are not stopping here. We must continue to lean in to find additional savings and new sources of revenues as we execute on our 2018-2023 Strategic Plan.”
