Bush aims to up electricity costs....

[MrRant 0]

By Lukas Velush

Herald Writer

 

 

Electricity rates would shoot up again in Snohomish County and the rest of the Pacific Northwest under a Bush administration plan that could once and for all do away with the region's low-cost electricity advantage.

 

President Bush's 2006 budget, released Monday, aims to find $12 billion to help pay down the national debt by forcing federally owned electricity wholesalers, including the Bonneville Power Administration, to charge market rates for the electricity they sell to utilities such as Snohomish County PUD.

 

The legislation that created the BPA in the 1930s requires that the government sell the electricity generated by the massive array of dams on the Columbia River at cost.

 

The resulting low-priced electricity lured businesses such as The Boeing Co. and Kimberly-Clark Corp. to locate here.

 

The savings have steadily eroded as the population in the Northwest increased, while the amount of hydroelectricity has not.

 

In Snohomish County, that competitive advantage all but disappeared during the record electricity price run-ups of the 2000-01 West Coast energy crisis. That's when Snohomish County PUD's rates shot up by 50 percent and when electricity users in Washington saw their collective electricity bill increase by $1 billion.

 

Bush's proposal could double BPA's rates, sending a dagger into the region's already struggling economy, said U.S. Sen. Maria Cantwell, D-Wash.

 

"This is the same as a billion-dollar tax hike on Washington state, and as far as I'm concerned, it's dead on arrival," Cantwell said.

 

20 percent rate hikes for five straight years

 

Bush's budget calls for gradually raising Bonneville's rates to market rates, which right now are somewhere from 5 cents to 6 cents per kilowatt-hour, according to a range of energy traders. Currently BPA sells its electricity at 3.1 cents per kilowatt-hour.

 

If spread out over five years, rates would have to go up 20 percent every year. After five years, the $2.4 billion BPA collects each year today could climb to nearly $5 billion.

 

Bush would have to get legislation approved to allow the changes because there are several laws on the book that require the electricity be sold at cost.

 

Snohomish County PUD could not estimate how much rates would increase for the utility's 295,000 customers. About 80 percent of PUD's electricity comes from BPA.

 

"Obviously it's going to affect our customers in an extreme way," said Kathy Vaughn, vice president of the PUD's governing commission.

 

Bruce Carnes, a top deputy to U.S. Energy Secretary Samuel Bodman, said the plan would merely take away unfair subsidies that have allowed BPA and other federal providers to supply cheap power at artificially low rates.

 

Government accountability studies show that BPA and three other federal power agencies receive unfair subsidies, Carnes said. These come mainly as lower interest rates which are unavailable to other electricity providers, who are being undercut by up to 30 percent.

 

"They can't compete with the BPA, because they are charging a discounted price based on cost and subsidy," Carnes said.

 

The idea that BPA customers benefit from a subsidy doesn't wash with Vaughn.

 

"I'm here to tell you it's not true," Vaughn said. "The ratepayers of the Northwest have paid the cost, every penny, of Bonneville, plus interest."

 

Ready for the fight

 

Voices from throughout the region chimed in against the plan on Monday, all of them saying this fight has been wagered and won before.

 

"I don't think the administration has added up the minus column correctly," said Jim Harding, director of external affairs at Seattle City Light. "People have flown this flag before, and it didn't get very far."

 

Harding estimated that his agency would have to come up with an extra $100 million to buy the electricity it gets from BPA at market rates. Seattle City Light currently operates on a budget of $575 million and has about 350,000 customers.

 

Locally, managers of the Kimberly-Clark pulp and tissue mill were hoping the PUD would start talking about a rate reduction, not another rate increase.

 

The mill has struggled to pay the PUD's rates for the past three-plus years. "This business was founded on low-cost electricity," said Scott Helker, mill manager. "This is extremely frightening for our operation."

 

The BPA proposal is part of Bush's plan to cut $143 billion from the federal budget. Of that, $12 billion will come from regional agencies that supply power to dozens of states.

 

The agencies are BPA, Colorado-based Western Area Power Administration, Georgia-based Southeastern Power Administration and Oklahoma-based Southwestern Power Administration.

 

The Associated Press contributed to this report.

 

Reporter Lukas Velush: 425-339-3449 or [email protected].

 

http://heraldnet.com/stories/05/02/08/100loc_bushbpa001.cfm

 

 

This would seriously harm the economy up here. I remember when power rates were fairly inexpensive where people were running a $50-75 a month power bill before and now for the same amount of power we are talking $150-200.

 

I don't think it would fly but it's a stupid decision as if power bills go up for companies that rely on lots of power it will end up with people losing jobs or entire companies moving.

[NoCalMike 0]

Considering the entire root of the" West Coast energy crisis" had to do with Enron purposely shutting down a powerplant during peak usage times, in order to rest the newly deregulated energy market, doesn't have me very suprised at this bullshit.

[Guest Smues]

Our state economy is far enough in the toilet as it is, we don't need to flush it.

[NoCalMike 0]

Our state economy is far enough in the toilet as it is, we don't need to flush it.

Well then don't vote for Arnold's budget, which surely wants to give kickbacks and more corporate loopholes to these criminal energy companies.

 

EDIT: Normally the people don't vote on the budget, but since the legislature in CA is basically laughing at Arnold's attempt to pass a piece of shit budget, he said he is going to campaign to the "people of california" by showing up in front of grocery stores and shopping centers trying to get signatures to force his budget proposal to be voted on by the people.

[MarvinisaLunatic 0]

Convert your house to solar power!

 

..

 

Thats sounding more and more like a good deal.

[Guest Vitamin X]

This must be Bush's way of getting back at places that use electricity for not voting for him.

[Guest Brian]

Actually, I don't think Seattle City Light and Tacoma's system would run into this problem, which means it would hit into the more rural areas that voted for him in Washington. I'm not sure on that, but both city light companies do a pretty good job with prices, pending this summer's drought.

[Guest Vitamin X]

My mistake. I only skimmed over the article and saw "Western" and assumed it meant the West/Left Coast..

[MrRant 0]

Actually, I don't think Seattle City Light and Tacoma's system would run into this problem, which means it would hit into the more rural areas that voted for him in Washington. I'm not sure on that, but both city light companies do a pretty good job with prices, pending this summer's drought.

They don't get AS much of their power from BPA but they get a good chunk. You would still see an increase in your power bill.

[kkktookmybabyaway 0]

Electricity rates would shoot up again in Snohomish County and the rest of the Pacific Northwest under a Bush administration plan that could once and for all do away with the region's low-cost electricity advantage.

 

Pay your fair share, hippie...

[2GOLD 0]

Electricity rates would shoot up again in Snohomish County and the rest of the Pacific Northwest under a Bush administration plan that could once and for all do away with the region's low-cost electricity advantage.

 

Pay your fair share, hippie...

 

You always know just the right thing to say.

[EricMM 0]

I guess this is one way to force people to be energy efficent.

 

Now if only he released a fedaral energy saving techniques brochure while raising the cost of electricity, then that'd be something.

 

Something progressive.

 

if you going to do it, at least help people deal with it...