News
2/11/2010
BPA Overcharges Irrigators – OTEC Opposes Forgiveness
Baker City, OR – February 11, 2010 – The Bonneville Power Administration (BPA) recently acknowledged that it overcharged Oregon Trail Electric Cooperative (OTEC), and other utilities with irrigator members, a total of approximately $2 Million. The proposed solution to this significant overcharge is to have OTEC, and others, forgive the overcharge.
With just over 1100 irrigator accounts, OTEC is directly impacted by this oversight and was overcharged an amount of about $60,000. While OTEC and others were overcharged, there was a simultaneous (approximately $2 Million) undercharging of other BPA customers.
“The proposal to forgive the overcharge and simply move on is not only the wrong solution but it would be unethical to do so. BPA identified the overcharge, so the only right thing to do is to fix it,” suggests Werner Buehler, OTEC General Manager. “This is especially true at a time, given the current economic climate, when OTEC is doing all it can to hold its costs down. The approximate $60,000 may not seem like a lot to BPA or compared to OTEC’s actual revenue, but it is our responsibility to watch every dime for our members.”
The overcharge was the result of an oversight in the in the calculations of BPA’s Irrigation Rate Mitigation Program (IRMP). The IRMP was developed to mitigate significant rate increases for the utilities large irrigation loads due to BPA’s change in seasonal rates. “The proposal to forgive the overcharge is counter intuitive to the original purpose,” says Buehler.
“OTEC will use the public comment period as an opportunity to continue working in the best interest of our members by monitoring and participating in the process,” said Buehler. “As a not-for- profit member owned cooperative, OTEC’s role is to keep the rates as low as possible while providing a safe and reliable service. Being overcharged is not the best way to achieve this goal, and forgiving the overcharge is not in the best interest of our members.”
Members of OTEC are also encouraged to offer comments to BPA. You may provide written comments on BPA’s proposal to forgive the approximate $2 Million overcharge until February 26, 2010. These comments can be made on-line at BPA’s Web site: www.bpa.gov/comment, via e mail to comment@bpa.gov; via mail to: Bonneville Power Administration, Public Affairs Office-DKC-7, P.O. Box 14428, Portland, OR 97293-4428; or faxed to 503-230-3285. You can also call BPA with your comments, toll free at 1-800-622-4519. Please reference “Irrigation Rate Mitigation Program” with your comments. Please note all comments will be posted on BPA’s external web site.
Once the public comment period concludes, BPA will determine whether or not to forgive the significant overcharge, or to deal with it in a different manner.
Members can also click here for suggested email comment language.
“OTEC’s members have stepped up recently and made their voice heard at BPA,” explains Buehler. “We hope they will do so again.”
To review the comments submitted by OTEC to BPA on this issue, click here.
