Bonneville Power Administration Adopts Rates to Strengthen Finances & Adapt to a Rapidly Changing Electricity Industry (Bonneville Power Administration)

(Portland, OR) – Today the Bonneville Power Administration set rates for fiscal years 2018 and 2019 that will help support long-term rate stability and maximize the value of the regional federal power and transmission systems. BPA adopted a 5.4 percent average wholesale power rate increase and an average transmission rate decrease of 0.7 percent that will take effect Oct. 1. 

“We worked very hard on behalf of our customers to manage our costs and make changes that will strengthen our finances and improve our competitive position in the rapidly changing electricity market,” said BPA Administrator and Chief Executive Officer Elliot Mainzer.  “However, despite aggressive cost-management actions, costs beyond our direct control continue to place significant upward pressure on our power rates. BPA will further address these cost pressures through the completion of a long-term business strategy later this year in collaboration with customers and regional partners.” 

The 5.4 percent increase results in an average wholesale power rate of $35.57 per megawatt-hour, an increase of 2.7 percent annually. The overall rate increase is primarily due to a lower-than-expected demand for power, a declining forecast of surplus power sales revenues due to lower market prices, and escalating costs of programs driven by legal requirements.  BPA is working with regional partners to identify new revenue streams and continued cost-containment strategies that may help mitigate these rising cost pressures.

BPA has also adopted a new Financial Reserves Policy.  This policy establishes a framework for setting and managing financial reserves levels to support BPA’s credit ratings, liquidity, equity between business lines and rate stability. Approximately 1 percent of the power rate increase will be used to replenish Power’s financial reserves levels, while transmission’s financial reserves remain stable. 

Transmission rates will decrease in the next rate period by an average of 0.7 percent. This is due to cost-management efforts and savings from debt-management actions. Looking forward, BPA is working to address the significant impact of long-term capital costs and develop a sustainable investment strategy for pending transmission system capital needs.

BPA created a spill surcharge to recover the costs associated with increased spill that is anticipated as a result of a ruling issued this past spring by the U.S. District Court for the District of Oregon. The court indicated that it will order increased spill at eight Federal Columbia River Power System dams on the lower Columbia and Snake rivers for the 2018 spring fish passage season. The surcharge will be in addition to the new power rates and will be implemented once sufficient information becomes available regarding planned annual spill levels. As part of the surcharge calculation, Bonneville is committed to working with its regional partners to find program cost savings, including in our Environment, Fish and Wildlife spending, to help offset the costs of increased spill.

The new rates also include investments to modernize core utility operating systems that will enable BPA to maximize the efficiency of grid operations and provide the option to participate in emerging markets.

“This rate case is ultimately about investing in our future and continuing to deliver value to our customers and the broader region for many years to come,” said Mainzer. 

Energy News Digest for July 26, 2017

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SHELTON FORECAST & WEATHER ALERTS

Weather Forecast for July 26, 2017

HOT SHOTS – TODAY’S TOP FIVE STORIES

Local Lawmakers See Little Hope for Capital Budget This Year (Walla Walla Union Bulletin, WA)

http://www.union-bulletin.com/news/local-lawmakers-see-little-hope-for-capital-budget-this-year/article_2f338f16-716b-11e7-8d0d-67ae791078e3.html

U-S Senate Panel Opposes Sale of Power Marketing Administration Assets, Bolsters Cybersecurity Agreement (American Public Power Association)

http://www.publicpower.org/Media/daily/ArticleDetail.cfm?ItemNumber=48574

New Meters Mean Seattle City Light Won’t Visit Homes Anymore (Seattle Times, WA – Paywall Advisory)

http://www.seattletimes.com/seattle-news/new-meters-mean-seattle-city-light-wont-visit-homes-anymore/

Undammed River – Fraser River Sockeye Fishery Closed after Low Early Returns (Canadian Broadcasting Corporation)

http://www.cbc.ca/news/canada/british-columbia/fraser-river-sockeye-early-runs-1.4221581?cmp=rss

Rural Internet Can Help Shrink Economic Gap (Seattle Times, WA – Paywall Advisory)

http://www.seattletimes.com/business/rural-internet-is-a-way-to-close-economic-gap/

NEWS HIGHLIGHTS (Details Below)

• U-S Senate Panel Opposes Sale of Power Marketing Administration Assets, Bolsters Cybersecurity Agreement
• New Meters Mean Seattle City Light Won’t Visit Homes Anymore
• Okanogan PUD Commissioners Pass Resolution to Amend Electric Service Rate Schedules
• Tillamook PUD to Keep Power Rates Stable through Next Year
• Local Utilities Support Balanced, Focused Columbia River Management
• Chelan PUD Commissioners Extend GM Steve Wright’s Contract
• Bonneville Power Administration Employee Wins DOE Earth Day Photo Contest
• San Juan County Youth Scholars Shine at Regional Co-op Leadership Camp
• Per Capita Residential Electricity Sales in the U-S Have Fallen Since 2010
• U-S Judge Refuses to Halt New York Nuclear Power Plant Subsidies
• Researchers: US Natural Gas Reserves at 52-Year High
• U-S Energy Secretary Duped into Fake Interview with Russian Comedians
• Undammed River – Fraser River Sockeye Fishery Closed after Low Early Returns
• Olympic National Park Issues Draft Mountain Goat Plan – Options Include Relocation, Killing
• Idaho, Utah Team Up to Fight Invasive Mussels
• Algae Bloom in Hood Canal, Washington
• Columbia River Levels Discussed at Grant PUD Meetings
• Tariffs on Solar Panels Could Slow Industry Growth by 66%
• First Cooperative Community Solar Project in Idaho Launches
• Editorial: Oregon – Drop Solar Farm Idea
• Washington State’s Cannabis Financier Problem
• California’s Cap-and-Trade Tax Extension Signed Into Law
• Study: Utilities Knew about Climate Change Risks Decades Ago
• Rural Internet Can Help Shrink Economic Gap
• Lawmakers Are Calling for a Net Neutrality Faceoff Between Google & Comcast, Among Others
• Some Bitcoin Backers Are Defecting to Create a Rival Currency
• An Internet Revolt Just Saved Microsoft Paint
• Yakima Anti-Pot Billboard Draws Social Media Ire
• Inside 'Energy Dominance' & Other DOE Buzzwords
• Roomba’s Collection of Personal Home Data a Possible Threat to Livelihood of Owners
• Local Lawmakers See Little Hope for Capital Budget This Year
• Washington State Agency Says No Capital Budget Puts Forests in Jeopardy
• Petition Started Against Washington Distracted Driving Law
• Pay-Per-Mile Tax Program Is Going to be Tested in Washington State
• Group Secures Enough Valid Shelton Voter Signatures to Place ‘City Council’ Government Proposal on Ballot
• Council Initiative – Special Shelton City Commission Meeting Wednesday
• Suspect in Bizarre Shooting of Mason County Man Dragging Dead Animal Pleads Innocent
• Mason County Unemployment Drops Again
• Shavings Company Opens Shelton Plant
• Mandatory Ten-Digit Dialing for Western Washington Begins This Weekend

WORD OF THE DAY

Argus • \ARE-guss\ • Noun – 1: a hundred-eyed monster of Greek mythology 2: a watchful guardian

“Man, that guy has eyes in the back of his head… literally” whispered the study hall student to his companion. Principal Strickland was pleased with the hiring of Argus as his vice-principal. “I’m no slacker when it comes to keeping an eye on things,” he barked. “But this guy’s the best!”

ENERGY & UTILITY ISSUES

U-S Senate Panel Opposes Sale of Power Marketing Administration Assets, Bolsters Cybersecurity Agreement (American Public Power Association)

http://www.publicpower.org/Media/daily/ArticleDetail.cfm?ItemNumber=48574

New Meters Mean Seattle City Light Won’t Visit Homes Anymore (Seattle Times, WA – Paywall Advisory)

http://www.seattletimes.com/seattle-news/new-meters-mean-seattle-city-light-wont-visit-homes-anymore/

Okanogan PUD Commissioners Pass Resolution to Amend Electric Service Rate Schedules (Okanogan PUD, Okanogan, WA)

https://www.okanoganpud.org/news/commissioners-pass-resolution-amend-electric-service-rate-schedules-1

Tillamook PUD to Keep Power Rates Stable through Next Year (Tillamook Headlight Herald, OR)

https://www.tillamookheadlightherald.com/news/pud-to-keep-power-rates-stable-through-next-year/article_0aea32fc-7177-11e7-bb78-83d02785bbcf.html

Local Utilities Support Balanced, Focused Columbia River Management (Mason Web TV, Shelton, WA)

http://masonwebtv.com/archives/26644

Chelan PUD Commissioners Extend GM Steve Wright’s Contract (NCW Life Channel, East Wenatchee, WA)

http://www.ncwlife.com/commissioners-extend-pud-gm-wrights-contract/

Bonneville Power Administration Employee Wins DOE Earth Day Photo Contest (Bonneville Power Administration)

https://www.bpa.gov/news/newsroom/Pages/Kaup-wins-DOEs-Earth-Day-photo-contest.aspx

San Juan County Youth Scholars Shine at Regional Co-op Leadership Camp (San Juan Islander, Friday Harbor, WA)

http://sanjuanislander.com/news-articles/utilities/opalco/25368/san-juan-county-youth-scholars-shine-at-regional-co-op-leadership-camp

Per Capita Residential Electricity Sales in the U-S Have Fallen Since 2010 (U-S Energy Information Administration)

https://www.eia.gov/todayinenergy/detail.php?id=32212

U-S Judge Refuses to Halt New York Nuclear Power Plant Subsidies (Reuters)

https://www.reuters.com/article/us-new-york-nuclearpower-idUSKBN1AA2VF

Researchers: US natural gas reserves at 52-year high (Washington Examiner)

http://www.washingtonexaminer.com/researchers-us-natural-gas-reserves-at-52-year-high/article/2629089

U-S Energy Secretary Duped into Fake Interview with Russian Comedians (Reuters)

http://www.reuters.com/article/us-usa-energysecretary-idUSKBN1AB06G

FISH & WILDLIFE

Undammed River – Fraser River Sockeye Fishery Closed after Low Early Returns (Canadian Broadcasting Corporation)

http://www.cbc.ca/news/canada/british-columbia/fraser-river-sockeye-early-runs-1.4221581?cmp=rss

Olympic National Park Issues Draft Mountain Goat Plan – Options Include Relocation, Killing (Peninsula Daily News, Port Angeles, WA)

http://www.peninsuladailynews.com/news/olympic-national-park-issues-draft-mountain-goat-plan-options-include-relocation-killing/

Idaho, Utah Team Up to Fight Invasive Mussels (Associated Press)

http://www.spokesman.com/stories/2017/jul/23/idaho-utah-team-up-to-fight-invasive-mussels/

WATER, THE SOURCE OF ALL LIFE

Algae Bloom in Hood Canal, Washington (NASA Earth Observatory)

https://earthobservatory.nasa.gov/NaturalHazards/view.php?id=88454

Columbia River Levels Discussed at Grant PUD Meetings (Columbia Basin Herald, Moses Lake, Wa)

http://www.columbiabasinherald.com/article/20170726/ARTICLE/170729934

RENEWABLE ENERGY & SELF STORAGE

Tariffs on Solar Panels Could Slow Industry Growth by 66% (Bloomberg News)

https://www.bloomberg.com/news/articles/2017-06-26/tariffs-on-solar-panels-seen-slowing-industry-growth-by-66

First Cooperative Community Solar Project in Idaho Launches (KREM-TV, Spokane, WA)

http://www.krem.com/news/local/bonner-county/first-cooperative-community-solar-project-in-idaho-launches/459273231

Editorial: Oregon – Drop Solar Farm Idea (Ashland Daily Tidings, OR)

http://www.dailytidings.com/opinion/20170726/our-view-drop-solar-farm-idea

KILOWATTS FOR CANNABIS

Washington State’s Cannabis Financier Problem (Canna Law Blogg)

http://www.cannalawblog.com/washington-states-cannabis-financier-problem/

CLIMATE CHANGE SEQUESTRATION VAULT

California’s Cap-and-Trade Tax Extension Signed Into Law (Courthouse News Service)

http://www.courthousenews.com/californias-cap-trade-tax-extension-signed-law/

Study: Utilities Knew about Climate Change Risks Decades Ago (The Hill. Washington, DC)

http://thehill.com/policy/energy-environment/343636-study-utilities-knew-about-climate-change-risks-decades-ago

TECHNOLOGY & TELECOMMUNICATIONS

Rural Internet Can Help Shrink Economic Gap (Seattle Times, WA – Paywall Advisory)

http://www.seattletimes.com/business/rural-internet-is-a-way-to-close-economic-gap/

Lawmakers Are Calling for a Net Neutrality Faceoff Between Google & Comcast, Among Others (Washington Post)

https://www.washingtonpost.com/news/the-switch/wp/2017/07/25/the-house-wants-tech-companies-and-internet-providers-to-testify-on-net-neutrality/?utm_term=.b7c6430c3822

Some Bitcoin Backers Are Defecting to Create a Rival Currency (NY Times)

https://www.nytimes.com/2017/07/25/business/dealbook/bitcoin-cash-split.html

An Internet Revolt Just Saved Microsoft Paint (Washington Post)

https://www.washingtonpost.com/news/the-switch/wp/2017/07/25/an-internet-revolt-just-saved-microsoft-paint/?utm_term=.1d67f8d0ae5e

MARKETING & MEDIA

Yakima Anti-Pot Billboard Draws Social Media Ire (Seattle Post-Intelligencer, WA)

http://www.seattlepi.com/local/article/Yakima-anti-pot-billboard-draws-social-media-ire-11404396.php

Inside 'Energy Dominance' & Other DOE Buzzwords (E&E Publishing)

https://www.eenews.net/stories/1060057825

Roomba’s Collection of Personal Home Data a Possible Threat to Livelihood of Owners (Seattle Times, WA – Paywall Advisory)

http://www.seattletimes.com/nation-world/roombas-collection-of-personal-home-data-a-possible-threat-to-livelihood-of-owners/

GOVERNANCE & MANAGEMENT

Local Lawmakers See Little Hope for Capital Budget This Year (Walla Walla Union Bulletin, WA)

http://www.union-bulletin.com/news/local-lawmakers-see-little-hope-for-capital-budget-this-year/article_2f338f16-716b-11e7-8d0d-67ae791078e3.html

Washington State Agency Says No Capital Budget Puts Forests in Jeopardy (KPQ Radio, Wenatchee, WA)

http://kpq.com/dnr-no-capital-budget-puts-forests-jeopardy/

Petition Started Against Washington Distracted Driving Law (Spokesman Review, Spokane, WA)

http://www.spokesman.com/stories/2017/jul/26/petition-started-against-washington-distracted-dri/

Pay-Per-Mile Tax Program Is Going to be Tested in Washington State (KIRO Broadcasting, Seattle, WA)

http://mynorthwest.com/489303/washington-gas-tax-pilot/

GENERAL NEWS

Group Secures Enough Valid Shelton Voter Signatures to Place ‘City Council’ Government Proposal on Ballot (KMAS Radio, Shelton, WA)

http://www.ifiberonenewsradio.com/news/local_news/group-secures-enough-valid-voter-signatures-to-place-city-council/article_f20cc9f6-7172-11e7-85e0-2b3ca2fbb105.html

Council Initiative – Special Shelton City Commission Meeting Wednesday (Mason Web TV, Shelton, WA)

http://masonwebtv.com/archives/26651

Suspect in Bizarre Shooting of Mason County Man Dragging Dead Animal Pleads Innocent (KCPQ-TV, Seattle/Tacoma, WA)

http://q13fox.com/2017/07/24/suspect-in-bizarre-shooting-of-mason-county-man-dragging-dead-animal-pleads-not-guilty/

Mason County Unemployment Drops Again (Mason Web TV, Shelton, WA)

http://masonwebtv.com/archives/26647

Shavings Company Opens Shelton Plant (Kitsap Sun, Bremerton, WA – Paywall Advisory)

http://www.kitsapsun.com/story/news/local/communities/mason/2017/07/17/shavings-company-opens-shelton-plant/485743001/

Mandatory Ten-Digit Dialing for Western Washington Begins This Weekend (Aberdeen Daily World, WA)

http://www.thedailyworld.com/news/mandatory-10-digit-dialing-for-western-washington-begins-this-week/

WATERSHIP DOWN EDITION – DIVERSIONS

Randy Bachman's Guitarology – The Real Opening Chord to a Hard Days Night

https://www.youtube.com/watch?v=gwfH9oAiPH0

Police: Woman Arrested after Topless Road Rage Attack

http://www.yakimaherald.com/news/weird_news/police-woman-arrested-after-topless-road-rage-attack/article_32768f43-c98a-5c94-a12e-45edfdeb1261.html

Hop On! Wild Rabbits Surf on Sheep to Flee New Zealand Flood

http://www.yakimaherald.com/news/weird_news/hop-on-wild-rabbits-surf-on-sheep-to-flee-new/article_86e63b95-4276-5230-9a2b-2ef7dd43cd03.html

Wisconsin Company Offers Employees Microchip Implants

http://www.reuters.com/article/us-usa-tech-implants-idUSKBN1AA2UZ

SONG OF THE DAY

The Salsoul Orchestra – Getaway

https://www.youtube.com/watch?v=sSy3u_i-Hao

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LINKS & PAYWALL ADVISORY

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