According to a news release, the Bonneville Power Administration (BPA) is proposing to leverage recent success in order to keep rates flat in upcoming years. The administration provides power to entities across the Northwest.
The move comes after the Lewis County Public Utility District voted on similar resolutions for the next two years during a meeting in October. The budget was finalized earlier this month.
“This is one of those bountiful years where all the elements and timing came together in such a manner that we can consider staving off inflation for another two years by keeping rates flat for our power and transmission customers,” BPA Administrator John Hairston wrote in the release.
The organization would use a portion of BPA’s 2022 financial performance to keep 2024 and 2025 transmission rates flat.
“For power rates, that financial performance provided an opportunity to include $129 million per year in additional risk protection without a rate increase,” the release stated.
It continued that the additional risk protection increases the chances that BPA will see continued strong financial performance during the 2024 and 2025 rate period.
As a nonprofit entity, BPA is legally required to cover its costs and adjust rates accordingly. BPA establishes those rates for two-year periods through administrative proceedings called for by statute. Similarly, BPA makes adjustments to the non-rate terms and conditions of its open access tariff for transmission service through a separate administrative process.
