BPA proposes increasing rates

The price of electricity could be going up again. The Bonneville Power Administration, which provides nearly all the power used by the Flathead Electric Cooperative, has proposed an increase in wholesale power rates and transmission rates.

The BPA increased power rates to the Co-op by 7.5 percent in 2011 and by 9.6 percent in 2013.

In response, the Co-op’s board of trustees chose to gradually increase rates to its members, starting with a 3.75 percent increase effective June 1, 2013, which added about $4.75 to the average monthly bill, and again with a 2.4 percent increase effective June 1 this year, which added about $2.67 to the average monthly bill.

The BPA now proposes increasing the average wholesale power rate by 6.7 percent and the transmission rate by 5.6 percent. Both would become effective in fiscal year 2016-2017.

In a news release, the BPA said the cost of its power-related programs were kept below inflation but other costs are driving up rates. The BPA cited capital spending for five percentage points of the overall 6.7 percent power rate increase.

The BPA also cited increases in operation and maintenance, a 2012 residential exchange settlement case, the need to acquire transmission service to non-BPA customers, and rising fish and wildlife costs. Bringing wind power into the BPA system was a factor in driving up transmission costs.

On the other hand, the BPA benefited from cost savings associated with the disposal of spent fuel from its Hanford nuclear plant, an energy efficiency program and its debt refinancing.

Flathead Electric Cooperative general manager Mark Johnson said it’s too early to comment on what the Co-op will do about the BPA’s proposed rate hikes.