Bonneville Power Administration

The Bonneville Power Administration (BPA) is a cornerstone of the economy of the Northwest, providing low-cost hydroelectric power to the region. 

Instead of receiving funding from Congress, BPA is funded through the sale of electricity to customers in the Northwest and other Western states.  In addition to meeting the day-to-day costs of operating BPA, customers are repaying the federal government for the construction of federally-owned hydroelectric projects. Last year, BPA consumers repaid the federal government roughly $1.1 billion.  To date, that number exceeds $22 billion.

Bonneville is a hydro-based system.  When there is snowpack and plenty of water in the Columbia River system, energy can be exported and BPA can generate extra revenue.  In years like 2001, when there was low water and BPA was forced to buy power during the height of the western energy crisis, it needed to draw against its financial reserves.  As a result, BPA retires additional debt when it can and has repaid almost $1.8 billion of debt, in advance of when it was due, as part of BPA’s debt optimization program.  Over the last two years, Northwest ratepayers repaid over $655 million in debt ahead of schedule.

Currently, the Administration is taking steps to raise rates for BPA consumers by accelerating this repayment of construction costs. Senator Wyden is helping lead the fight to defeat the President's proposal.

The Bush Administration is proposing that BPA be required to cut into its financial reserves and make mandatory payments to the Treasury to pay off debt before it would otherwise be due. The Northwest Power and Conservation Council, which is established by statute to oversee the region’s energy needs, concluded that if this plan was adopted, BPA would have to raise rates on Northwest ratepayers between 5 percent and 11 percent simply to restore the financial reserves confiscated by the Bush Administration. 

Senator Wyden felt that this proposal made no sense last year when the Administration proposed the plan initially and continues to oppose it as discussions continue today.  Senator Wyden has worked with other members of the Northwest delegation to block the President’s proposal and is fully committed to fighting attempts to force BPA consumers to pay more than their fair share.

Share Your Views with Senator Wyden

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