BPA proposes raising wholesale electricity rates

The Bonneville Power Administration is proposing raising rates for the electricity it provides to utilities in fiscal 2018-19.

Under the initial proposal released this week, the wholesale power rate would increase 3.5 percent and transmission rates would increase 1.1 percent starting Oct. 1, 2017. The final rate decision would be made in July 2017.

About half of the proposed power rate increase reflects increased costs for fish and wildlife programs, plus higher program costs, including operating and maintenance expenses BPA pays to the Corps of Engineers and the Bureau of Reclamation to run the federal hydro facilities.

The other half of the rate increase is due to lower forecast sales, according to BPA.

Many power customers will see a lower proposed rate increase of 2.3 percent due to a credit generated from savings created from regional cooperation debt transactions, BPA said.

This story was originally published November 11, 2016 at 8:22 PM with the headline "BPA proposes raising wholesale electricity rates."