Dwindling West Coast power surpluses and the opening of a deregulated retail market in California have pushed prices skyward. That's up 30 percent from the same week last year and more than double the rate two years ago. BPA revenues were up 76 percent at the end of March, six months into the fiscal year, largely due to California power sales. The reason for maintaining high reserves is simple, BPA contends. A few dry years could wipe out its reserves, threatening its ability to make debt payments.
Less water means less power to sell to California.
It also would require the agency to buy more expensive power to supply its customers. The agency steadily has rebuilt its reserves since 1995. But some customers say the agency doesn't need reserve levels so high. It creates a target for mischief. As expected, Mid-Columbians can expect only marginal rate increases once new contracts take effect, even as wholesale electricity rates on the open market climb.