AG’s office opposes Bonneville Power Administration plan to raise electric rates for private utility customers
The Attorney General’s Office filed an amicus brief Friday opposing the Bonneville Power Administration’s (BPA) planned changes to the formula used to calculate the funds allocated through the Residential Exchange Program, which could reduce the benefits customers receive through this program. These funds reduce utility rates for Washington customers of privately owned utilities Avista, PacifiCorp, and Puget Sound Energy. Reducing this program’s benefits would mean increasing customer rates. The AG’s office argues that private utility customers should not be forced to pay additional costs for electricity during an affordability crisis.
“Many private utility customers are already facing significant increases to their electric bills, which we are fighting to prevent,” said Attorney General Nick Brown. “The last thing customers need right now is the threat of yet another increase in prices.”
The 1980 Northwest Power Act created the Residential Exchange Program to reduce utility rates for private utility customers because they were paying significantly more for electricity than the customers of publicly owned utilities. One reason for this disparity is that under federal law, BPA must prioritize selling its clean, cheap hydropower to publicly owned utilities. Private utilities need to find other, more expensive sources of power.
Washington customers do not have a choice about what company to use for their electric service. They have little influence about whether that company is publicly or privately owned. More than 1.5 million Washingtonians currently receive electric service through Avista, PacifiCorp, and Puget Sound Energy, and would see their electric bills go up under BPA’s proposal. While BPA won’t reveal the exact rate increase until 2028, it could increase customers’ bills by as much as 4%.
These price increases would be difficult to bear because private utility customers already pay more on average than the customers of public utilities. On top of that, PSE has proposed increasing customers’ electricity rates by 29% over the next three years. Avista has proposed to increase electricity rates by 25% over the next four years. The AG’s office is fighting both rate increases, as they are not reasonable and do not serve the public interest. PacifiCorp is currently in the process of trying to sell its Washington service area to Portland General Electric. The AG’s office is also opposing this sale, as it would not benefit Washington consumers and could raise energy costs.
The amicus brief in this case, Avista et al. v. Bonneville Power Administration et al., is another example of the AG’s office fulfilling its responsibility to advocate for Washington consumers.
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