OTEC - Baker City, OR - July 27, 2009


Oregon Trail Electric Cooperative (OTEC) received specific wholesale power rate increase data from the Bonneville Power Administration (BPA) and the news is not good.

On Tuesday, July 21st, BPA announced that its overall wholesale power rate increase would be 7 percent. BPA’s rate increase specific to OTEC will actually be 7.6 percent. This amounts to an increase of $1,269,883 per year.

Werner Buehler, OTEC General Manager, expressed his frustrations with the ups and downs of the rate increase process. “BPA started out with a proposed 9.4 percent increase, then it was suggested that the increase would be in the high teens to low 20 percent, then they suggested 6.8 percent, then they announced 7 percent in last weeks press release, but the reality is 7.6 percent,” explains Buehler.

“We have continued to work to maintain transparency with our members throughout the process, and even encouraged them to become involved through the public comment process. BPA has simply been playing politics,” suggests Buehler.

One area where OTEC notes concern is with the cost of wind power. Originally BPA was working on how to integrate wind costs into the new rate proposal where the actual cost of wind energy would be placed on wind power producers. Instead, the cost of wind is now spread to all rate payers. Specifically, BPA had proposed moving the cost from the current $0.68/kw/month to the realistic price of $2.72/kw/month. The Record of Decision (ROD), however, sets the rate at $1.29/kw/month.

Another area of continued concern is with the subsidies provided to the aluminum industry, specifically Alcoa and CFAC. BPA has decided to move forward with its plans to subsidize this industry, despite comments issued by OTEC and other similarly situated utilities.

“This simply does not reflect the reality of what energy costs our members,” says Buehler. “The entire BPA process and communication effort with this rate increase has been frustrating and confusing to our members.”

BPA’s wholesale power rate increase goes into effect on October 1, 2009.

For additional information about OTEC visit OTEC’s web site at www.otecc.com .