BPA interim agreement flawed for our customers

Customers face too much risk and not enough rate relief so Pacific Power cannot accept Residential Exchange Agreement.

Unacceptable risk and virtually no reward to its customers is the reason Pacific Power will not sign a proposed Residential Exchange Interim Relief Agreement offered Friday, February 22, 2008 by the Bonneville Power Administration. This agreement is an attempt by the BPA to temporarily restore benefits of the Northwest federal hydropower system to Northwest residential and small farms customers while BPA undergoes a rate proceeding that will set the level of future benefits.

Utilities had 32 days from February 22 to decide if they will sign the agreement, and at best, benefits for customers could resume beginning in April. BPA hopes to complete its long-term rate proceeding in the fall .

"While the interim agreement would temporarily restore some level of benefits to customers, it is far from their fair share," said Pat Reiten, president of Pacific Power.

BPA’s proposed interim benefit for PacifiCorp customers would be a fraction of the previous benefit customers had received from the Residential Exchange Program until the payments were suspended last spring. The actual net benefit to eligible customers this year would only amount to a nickel per month of rate relief.

"Customers should receive a benefit from this decision regardless of where they live," said Reiten. "The way these interim benefits are calculated points to a fundamental flaw in the 1980 Northwest Power Act. Customers who are served by a low-cost utility, such as Pacific Power, are penalized with reduced benefits from the federal hydropower system. That’s not right, it’s not fair, and it’s not how the Northwest Power system should work."

Pacific Power will continue to work on behalf of its customers to restore benefits from the federal hydropower system to all Northwest families and small farms through the rate case filed by BPA in early February.

"If the law penalizes our customers for being served by a low-cost utility, then something clearly needs to change," said Reiten.


Since June 2007, Oregon and Washignton customers have been paying more due to the loss of the BPA credit. This is how much more:

This isn’t fair and we are working for a more equitable solution to how we share the benefits of the northwest hydropower system. As we do this, we know your budget is your primary concern. Here some ways to manage higher bills created by the loss of the BPA credit:


You can take advantage of energy efficiency and assistance programs for residential customers in your state: