Related Oregonian links:

• Bush wants market rates for BPA (Feb 8)
• Bush plan may lift power bills (Feb 11)
• Bush plan rewrites BPA mission (Feb 14)
• Bush plan could limit growth of power grid (Feb 14)
• and this editorial: Another grab for Northwest power (Feb 9)

February 16, 2005

PORTLAND — The Council will analyze the potential impacts in the region of Bush Administration proposals that would raise electricity rates charged by the Bonneville Power Administration and also limit the agency’s capital borrowing authority. The Council is an interstate compact of the four Northwest states that has responsibility in federal law for long-term electric energy planning in the region.

“We’d like to have a better idea of the likely impacts on residential ratepayers, businesses, industries, and the regional economy, as well as potential impacts on the reliability of the Northwest energy system,” said Chair Melinda Eden, an Oregon member of the Council. “As an independent agency with the responsibility and expertise to analyze complex technical problems, we have the talent and skills to do this kind of review, and do it well.”

Currently, by law Bonneville sells power for its cost of generation. That cost is about 70 percent of the current wholesale market price. Bonneville sells the output from 29 federal dams and one-nonfederal nuclear power plant.

The Bush administration plans to propose legislation this year to raise the rates charged by Bonneville and the three other federal power marketing administrations so that they are closer to average market rates. The federal Office of Management and Budget suggests changing the calculation of Bonneville’s statutory limit on borrowing from the federal Treasury for capital projects to include so-called “third-party” debt — debt that Bonneville backs but does not issue. That change could reduce the amount of money Bonneville can borrow for capital construction projects, including upgrades to its transmission system, energy conservation programs, and fish and wildlife projects. Members of the Northwest congressional delegation recently have voiced opposition to both proposals.

Today the Council directed its staff to analyze the economic and power system operating impacts of the budget proposals to the Northwest region and prepare a report for public review and comment.