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Bonneville Power Administration Talks to Benton and Franklin PUD About Rate Increases by Staff KNDO, November 9, 2010

KENNEWICK, Wash., -- The head administrator of Bonneville Power Administration, Steve Wright spoke to the Board of Public Utility District Commissioners Tuesday morning at the Benton PUD in Kennewick. Franklin County PUD held the meeting, coinciding with the Benton PUD Commission meeting regarding the forecasted rate increases for 2011.

Wright gave a presentation on the main reason B-P-A is expected to raise prices on November 18. One reason is that they're not bringing in enough revenue to offset costs because the power that they sell is cheap on the market right now. He also forecasts necessary upgrades to their 31 hydro electric dams, 85% of which generate power on the Columbia and Snake Rivers.

"We would expect that we would need a modest rate increase that would show up in our initial proposal later this month. and the impact that...for the retail customer will probably be less than five percent. But we believe that if we don't make these investments right now, ultimately rates will be higher in the long run," says Wright.

Benton PUD representative Karen Miller estimates this will raise rates in January about 8%for regular consumers. Franklin PUD representative Bone Harris says they are not raising rates in January. However they are looking at a likely 4% increase come June. The Rate Advisory Committee is meeting Thursday November 11 between 1:00pm-3:00pm to discuss rate changes.