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BPA Makes Plans to Offset Energy Costs by Chris Mulick, Herald staff writer Tri-City Herald, January 19, 2001

The Bonneville Power Administration announced Thursday that it would begin running more water though Grand Coulee Dam to avoid buying power at outrageous prices on the spot market.

But the decision could threaten spring and summer water flows reserved for strategies designed to bolster salmon and steelhead runs.

The agency, which supplies 40 percent of the Northwest's and 90 percent of the Tri-Cities' power, has spent $50 million this week in the spot market. Low water flows and limited imports from power-strapped California have left the agency 1,000 megawatts short, almost enough to serve Seattle.

"We tried to buy our way out," BPA spokeswoman Dulcy Mahar said. "Every time we entered the market, the prices quadrupled."

Competition for megawatts has been fierce. Bonneville looked to Canada only to find California already had bought what Vancouver-based B.C. Hydro had to sell.

California has been rocked with criticism that its attempt to deregulate its retail electricity industry created incentives for power plant operators to withhold generation to drive up prices. Mahar said the agency suspects there is more power available to buy but at too high a price.

"If you're willing to sell your firstborn, there's some power there," she said. "It's a desperate situation."

The crisis is being driven not only by other electricity shortages but also by abnormally low water conditions. Levels at Grand Coulee already are second-lowest in 25 years.

If precipitation levels returned to normal, it still would put the water supply only at 76 percent of average for the year.

Environmental groups were both understanding of Bonneville's situation and upset at actions the agency has taken to put itself in a bind.

"I don't know what we can do beyond pray for rain," said Mark Glyde, a spokesman for the Northwest Energy Coalition, which represents dozens of environmental groups, utilities and other stakeholders. "Bonneville is in an incredibly tough spot. It's a terrible situation all around -- for people in California, for people here and now for fish."

Chris Zimmer, a spokesman for Seattle-based Save Our Wild Salmon, chastised the BPA for allowing funding for conservation projects and environmentally friendly power plants, such as wind and solar, to slide in recent years.

"This is not a problem that just hit us today," he said. "BPA needs to own up to this responsibility. The fish always lose, and that's not acceptable."

Bonneville renewed its call for conservation Thursday, which have become commonplace in the Northwest throughout the crisis. Declining demand for electricity would ease the demand for water, which could be saved for later.

Glyde said the Northwest should be prepared to examine how it can make itself more energy efficient to help avoid the same circumstances next winter.