August 25, 2004—The Bonneville Power Administration has announced that, barring any unexpected developments in the next few weeks, it will reduce its fiscal year 2005 power rates beginning on Oct. 1. The level of the decrease is expected to be between 5 and 7.5 percent.
BPA is a federal agency, under the U.S. DOE, that markets wholesale electrical power and transmission services in the Pacific Northwest.
BPA proposed the wholesale power rate decrease to customers and other regional stakeholders at a rate case workshop held in Portland, Ore. The new rate will go into effect Oct. 1, 2004.
Wright cautioned, though, that rates could be either higher or lower in fiscal year 2006 depending primarily on water and market conditions in the next year. “We continue to live in a very volatile world. In keeping our rates as low as possible now, our future rates will need to be flexible to respond to changing circumstances,” Wright said.
Reducing expenses was the primary driver of the rate reduction. Expenses for fiscal years 2005 and 2006 were cut by nearly $350 million. Last spring’s agreement with the region’s investor-owned utilities (IOUs) contributed $200 million toward this expense reduction. A substantial part of the remaining $150 million in expense reductions was due to a successful effort by a joint sounding board that included BPA, customers and other regional stakeholders.
For more information, contact BPA.
