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Economic and dam related articles

Power Rate Decrease

by Staff
BPA Journal, November 2006

On Oct. 1, BPA cut its wholesale power rate for the fiscal year 2007 by about 3 percent. This is the fourth year in a row that BPA has reduced its rates. The average base rate for priority fi rm power in 2007-2009 is $27.33 per megawatt -hour. Rates are adjustable to ensure funding for Treasury payment and for fish recovery actions related to ongoing court proceedings. Extraordinary collaboration among BPA's utility customers, Energy Northwest and others was a key factor in the rate decrease.

Customers recommended and 33 signed up for a flexible power rate program that will enable BPA to increase cash fl ows on short notice if needed. This decreased the revenue required for reserves, which effectively lowered base rates. Customers also worked to put in place an agreement for BPA to directly pay Energy Northwest nuclear project costs rather than paying these costs through customers. This helps level out BPA's annual cash flow, and contributes to the need for lower reserves.

Power Rate Decrease
BPA Journal, November 2006

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