The effects from historically low streamflows in 2001 and historically high wholesale energy prices are likely to be felt for at least several years. If sufficient power cannot be purchased on the wholesale market, Northwest reservoirs may not be refilled to levels required to provide assurance of sufficient power during the winter of 2001-2002. Even if sufficient power can be purchased, it is likely to be extremely expensive, adding to the financial burden faced by Bonneville and its customers. Many other Northwest utilities face supply problems due to lack of hydro generation at their own projects. Combined with the electricity supply crisis in California, this lack of power supply means that wholesale power prices will remain at extremely high levels at least through the end of the summer.
Gas prices are unlikely to abate very much as long as electricity prices remain high.
The extent and duration of the effects on retail customers are still uncertain. Bonneville expects its rates to come down beginning in late 2003, but this is contingent upon return to normal hydropower operation or power market conditions moderating to some extent. Some publicly owned utilities are intending to insulate their customers from the most extreme rate increases by issuing bonds to finance current power market expenses. This means that customers experience lower impacts in the current year, but the effects will linger for a number of years as the bonds are repaid.