News
6/30/2009
BPA Lowers Anticipated Rate Increase Proposal – Comments From OTEC Members Make A Difference
BPA Lowers Rate Increase Proposal – Comments From OTEC Members Make A Difference
Baker City, OR – June 30, 2009 – The Bonneville Power Administration (BPA) released its Draft Record of Decision (ROD) on its 2010 Wholesale Power Rate case, with the proposed rate increase being less than originally anticipated.
BPA had originally proposed an increase of 9.4% on wholesale power, but after updating its water and power sale projections, as well as reviewing public comments, has reduced its rate increase proposal to an estimated 6.8%. The final increase amount will likely be determined in July.
“Though we are pleased BPA has taken the comments of OTEC’s members into consideration and reduced the original rate increase proposal by an estimated 2.6%, we remain concerned about the impacts any wholesale rate increase will have on Eastern Oregon,” said Werner Buehler, OTEC General Manager.
OTEC has been proactive about informing its members of the proposed BPA rate increase and has seen a positive response in the form of member comments to BPA.
“It has been nice to see so many comments from OTEC members on the BPA web site. It is even better to have BPA take these into consideration,” said, Werner Buehler, OTEC General Manager.
In fact, the Draft ROD specifically said, “At least two consumer-owned utilities notified their customers about BPA’s proposed power rate increase and encouraged them to send comments to BPA. Thus, BPA received a large number of comments from ratepayers of those two utilities.” Yes, OTEC was one of the two referenced here.
OTEC’s comments in opposition to the proposed BPA wholesale rate increase identified several reasons why the proposal is bad timing. Those reasons included current unemployment rates in Baker, Harney, Grant, and Union counties, as well as the continued support of the aluminum industry by BPA.
OTEC also offered several cost saving measures BPA should consider prior to implementing any rate increase.
“Though BPA discussed many of our concerns in their Draft Record of Decision, we would hope they would continue to consider our recommendations and reduce the new proposed rate increase further,” suggests Buehler.
The next step in the process is for BPA to finalize its ROD and the rate case. This is expected to happen in July 2009. The new rates would then take effect on October 1, 2009 and last through 2011.
“It’s still too early to determine what the BPA wholesale power rate increase specifically means to OTEC members, but we do know it will cost all of us more,” says Buehler. “The Board and Staff of OTEC will continue to work to improve internal efficiencies in the hopes of mitigating any necessary rate increase.”
“It’s still too early to determine what the BPA wholesale power rate increase specifically means to OTEC members, but we do know it will cost all of us more,” says Buehler. “The Board and Staff of OTEC will continue to work to improve internal efficiencies in the hopes of mitigating any necessary rate increase.”
Click Here for more information on the BPA Wholesale Rate Increase proposal and to review the entire BPA Draft Record of Decision.
