BPA Says Power Rate Increases Could Come in 2025

The BPA, or Bonneville Power Administration, is a non-profit federal entity that sells power to much of the Pacific Northwest. If BPA rates go up, the ripple effect is felt by public power and other utilities

  BPA says lack of cash could trigger automatic rate bump later this year.

According to their financial releases, the BPA saw a significant drop in their revenue in 2024, posting a negative $44 million in profit.

They also said due to low cash reserves, later this year it could trigger rate increases. According to the BPA, by way of the Tri-Cities Area Journal of Business:

 "Its Power Services division is anticipated to have only 50 days’ cash on hand by Dec. 31, which is below the agency’s 60-day lower threshold."

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That would automatically apply an additional surcharge to its rates, which would be reflected in the next fiscal year, which starts in October 2025. The surcharge would be to rebuild the cash reserves and restore them to required levels.

BPA Officials said they are looking at numerous ways to cut expenses and raise the reserves without having to apply the surcharge.

BPA supplies the bulk of the power to utilities around the Pacific Northwest, from Benton and Franklin PUD to Avista in Spokane, and others.

The reason for the negative revenue is due to dry weather and lower stream flows than usual, according to the BPA.