Established by the 1937 Bonneville Project Act, the Bonneville Power Administration (BPA) provides electricity to Columbia River basin electricity consumers not at a market-priced rate but at a rate that is based on the cost of production.
Let's take a look at some of the economic numbers:
Federal Columbia River Power System Annual Costs
| (Millions of dollars) | Paid by | |
|---|---|---|
| ACOE Operations & Maintenance LSR dams (approimately 16% of ACOE budget) ($4 million is for salmon barge/trucking) |
$ 29.1 | BPA Consumer |
| U.S. Fish & Wildlife LSR compensation hatcheries |
$ 17.1 | BPA Consumer |
| LSR Debt Service (annual interest payment) 4 LSR dams LSR compensation hatcheries |
$ 35.5 $ 16.5 | BPA Consumer BPA Consumer |
| Columbia River Fish Mitigation Construction General (35% of $75M on LSR) |
$ 26 | Taxpayer to ACOE repaid over time by BPA |
| Idaho Sockey 'Safety Net' Program | $ 1.8 | BPA Consumer |
| Habitat Expenditures (for year 2000) | $ 22.2 | BPA Consumer |
| LSR Channel Dredging | $ 3.6 | Taxpayer to ACOE |
| 10% of BPA Internal Costs | $ 15.5 | BPA Consumer |
| Flow augmentation (see fishflowpowr.htm) 427,000 acre-feet to Brownlee Reservoir |
$ 2.5 | Taxpayer to BuRec |
| Other Costs of Idaho Salmon Recovery Efforts | $ ? | not included |
| Cost of Maintenance Dredging | $ 3 | Taxpayers to ACOE |
| Cost to Protect Lewiston from Flooding | $ ? | Taxpayers to ACOE |
| Cost to Defend 2004 UPA from Legal Challenges | $ 3 | Taxpayers to ACOE, BPA, NOAA, DOJ |
| ========== | ||
| Costs | $ 176 | per year |
| Shipping | 1994 Data ONRC Report | |
| Revenue from Lock Passage $1.48 per ton per trip |
$ 4.3 | 4176 Commercial Barge Trips |
| Forgone Power value (assuming $25/MWh) 50,560 MWh x $25/MWh |
$ 1.3 million lost revenue | |
| Forgone Power value (assuming $32.4/MWh) 50,560 MWh x $32.4/MWh |
$ 1.6 million lost revenue | |
| Irrigation | 1994 Data ONRC Report | |
| Revenue from Irrigation Water 80 foot elevation benefit |
$ 0 | 13 farms comprise 35,000 acres |
| Lowered Pricing for Irrigation Pumping Paid by regions ratepayers |
<$ 0.5> | Paid by other BPA customers |
| Forgone Power value (assuming $25/MWh) 22,340 MWh x $25/MWh |
$ 0.5 million lost revenue | |
| Forgone Power value (assuming $32.4/MWh) 22,340 MWh x $32.4/MWh |
$ 0.7 million lost revenue | |
| Elevation Benefit of 80 foot deep reservoir (assuming $25/MWh) 101,594 acre-feet x 80 feet x .00087 MWh/acre-feetxfeet x $25/MWh |
$ 0.18 million lost revenue | |
| Elevation Benefit of 80 foot deep reservoir (assuming $32.4/MWh) 101,594 acre-feet x 80 feet x .00087 MWh/acre-feetxfeet x $32.4/MWh |
$ 0.23 million lost revenue | |
| Electricity | 1994 Data ONRC Report | |
| Power from Flow augmentation (assuming $25/MWh) 252,000 MWh x $25/MWh (see flowpowr.htm) |
$ 6.3 million BPA consumer benefit | |
| Power from Flow augmentation (assuming $32.4/MWh) 252,000 MWh x $32.4/MWh (see flowpowr.htm) |
$ 8.2 million BPA consumer benefit | |
| Forgone Power LSR Evaporation (assuming $25/MWh) 100,000 acre-feet x 0.259 MWh/acre-feet x $25/MWh |
$ 0.6 million lost revenue | |
| Forgone Power LSR Evaporation (assuming $32.4/MWh) 100,000 acre-feet x 0.259 MWh/acre-feet x $32.4/MWh |
$ 0.8 million lost revenue | |
| LSR Hydropower Sales (assuming $25/MWh) 1000 aMW x $25/MWh x 365 days/year x 24 h/day |
$ 219 | 1000 aMW if no spill from Ice Harbor |
| LSR Hydropower Sales (assuming $32.4/MWh) 732 aMW x $32.4/MWh x 365 days/year x 24 h/day |
$ 208 | BPA assumes 732 aMW for average water year |
| ========== | ||
| (assuming $32.4/MWh) Receipts to BPA | $ 223 | per year |
| (assuming $25/MWh) Receipts to BPA | $ 212 | per year |
LSR: Lower Snake River
ACOE: Army Corps of Engineers
BPA: Bonneville Power Administration
ONRC: Oregon Natural Resource Council, Restoring the Lower Snake River
NOAA: National Oceanic and Atmospheric Administration, Fisheries
DOJ: Department of Justice, Special Litigation
Price of cost-based federal hydrosystem power
In an average water year, the Lower Snake River dams produce about $223 to $212 million worth of electricity with a cost of $176 million.The federal salmon recovery effort is projected to cost $600 million per year for the next decade. Compare this to the $40 million "net revenue" (calculated above) that the Lower Snake River dams provide. If removal of Lower Snake River dams brings about real salmon recovery a real reduction of salmon recovery costs will likely result.
Further discussion and research material is available at
Lower Granite, Little Goose, Lower Monumental & Ice Harbor
