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Bonneville Power to Cut Wholesale Rates by Staff, news services Salem Statesman Journal - August 19, 2004

PORTLAND -- The Bonneville Power Administration said Wednesday that it plans to cut wholesale electricity rates by 5 percent to 7.5 percent during its next fiscal year, beginning Oct. 1.

BPA chief Steve Wright warned, however, that rates could be either higher or lower next year, depending on water and market conditions in 2006.

“We continue to live in a very volatile world. In keeping our rates as low as possible now, our future rates will need to be flexible to respond to changing circumstances,” Wright said.

Bonneville had predicted that it would reduce rates after it reached an agreement in June with two major Northwest utilities, PacifiCorp and Puget Sound Energy, to settle energy-contract disputes and allow the BPA to trim costs by $200 million for the 2005-06 federal fiscal years.

“This rate decrease is a step in the right direction,” said U.S. Rep. Rick Larsen, D-Wash., a member of the congressional Northwest Energy Caucus who has pushed for Bonneville cost reductions.

The proposed rates are open to public comment until Aug. 27, with a final decision expected in September.