Electricity rates to take a jump

Electric rates in San Juan County will be increasing by eight percent on March 1.

The rate hike, which was approved last December by the OPALCO Board of Directors, represents the third consecutive year in which the rates will be going up in anticipation that OPALCO’s wholesale power costs will be increasing by 30 percent next year. The Bonneville Power Administration (BPA), the federal agency which sells OPALCO virtually all of its power, has been telling OPALCO for the past few years that a big rate hike is coming in 2006. Since 2003, OPALCO customers’ rates will have increased by 22 percent.

Even bigger rate hikes will follow if President George W. Bush gets his way. The President, in his Fiscal 2006 budget proposal released on Feb. 7, has put forward a plan that would double Northwest power rates over the next five years by requiring the BPA to switch from a cost-based to a market-based rate. Such a move would see rates increase 20 percent per year.

“Even the Administration’s most conservative estimates suggest this would raise energy rates by $100 a year for Northwest consumers,” says U.S. Senator Maria Cantwell (D - WA). OPALCO General Manager Randy Cornelius says it would be “devastating” if the Bush plan is approved by the Congress.

Cantwell also believes that it’s illegal for the Administration to spend Northwest taxpayers’ money to fund the BPA, then turn around and raise their energy rates.

The Senator has launched an online petition drive against the Bush Administration’s budget. The “Stop the Rate Hike Now” online petition can be accessed at http://www.cantwell.senate.gov/ .

Within days of the Bush announcement, OPALCO staff and board members began putting together their own strategies to defeat the Bush budget plan. They will discuss the matter further tomorrow, Feb. 17, when board members meet at 8:30 a.m. at the Galley Restaurant on Lopez Island.

Meanwhile, OPALCO’s Liz Loomis, director of external affairs, is urging OPALCO’s “Ambassadors” (citizens who voluntarily lobby government on issues of concern to OPALCO) to lobby their Congressmen to oppose the Bush budget item.

OPALCO will do its own lobbying, working collaboratively with the nearly 50 utilities that buy their power from the BPA.

But Cornelius fears that, at best, all OPALCO will accomplish is to put off the day when it will have to pay a market rate for electric power. “The train’s leaving the station,” he said. “The whole trend is toward market-based power.”

HERE’S WHAT THE AVERAGE CUSTOMER WILL PAY STARTING MARCH 1

An average customer will see his or her rates increase from $85.38 to $91.41, an increase of $6.03 per month. The figures were derived as followed:

The 8 percent residential electric rate increase will move rates from 6.02 cents/kwh to 6.50 cents/kwh. Commercial members’ energy rates will move from 5.42 cents/kwh to 5.85 cents/kwh.

An average member using 1,000 kwhs per month would pay the following under the new rate: Basic Charge, $23, 1,000/kwh @ .065; and Sales Utility Tax @ 3.873 percent, $3.41. Total charges for the service are $91.41.

NORTHWEST CONGRESSMEN OPPOSE THE BUSH BUDGET ITEM

Cantwell has support in Congress from both Republicans and Democrats in the Pacific Northwest, the area served by the BPA. Here’s what several have to say:

Senator Patty Murray (D - WA): “The President’s proposal to balance the budget on the backs of Northwest ratepayers is anti-family and anti-business. A 20 percent increase in the cost of heating our homes and powering our businesses would cripple our region’s economy. I will continue to stand up for our ratepayers and make sure that the financial mistakes of this Administration are not paid for at the expense of Northwest residents.”

Senator Ron Wyden (D-OR): “There’s only one way to look at a forced BPA rate increase, and that’s as nothing more, and nothing less, than a $2.5 billion energy tax on the Northwest. The Administration needs to get the message that it can’t impose these devastating electricity rate increases on our region without changing the law, and we’re going to do everything we can to stop it from ever passing the U.S. Senate.”

Senator Gordon Smith (R-OR): “I promise to oppose this proposal with all my remedies and rights as a U.S. senator."

Congressman Doc Hastings (R-Pasco): "I'm incredulous and outraged by the proposal to unfairly increase Northwest power rates. This is a tax increase of the worst kind - one that would beat down our region's economy and destroy jobs. Should the Administration insist on pursuing this ill-advised proposal, our congressional delegation will be unified and emphatic in opposing it at every turn."

Congresswoman Cathy McMorris (R-Colville): "This proposal is going nowhere fast. It is simply the wrong approach and one that will cost jobs, cost consumers and stifle economic growth throughout our region. Our region's economy was built on inexpensive hydro power from our dams and rivers. I will work with our Northwest delegation to oppose any effort to unfairly increase our region's power rates and I will work to preserve the natural resources that sustain the economies of the Pacific Northwest."

Comment on this story.

COMMENTING RULES: We encourage an open exchange of ideas in our online community, but we ask you to follow our guidelines for respecting community standards. In a nutshell, don't say anything you wouldn't want your mother to read.