For transmission customers, the first rate increase in six years averages 11 percent higher than current rates. The transmission rate increase stems from a growing construction program driven by the need to repair and replace aging infrastructure and increase spending on mandatory compliance and security requirements. An average of $20 million per year in financial reserves will be used to offset part of the rate increase.
Wholesale power and transmission rates are developed every two years through a formal rate-setting process with BPA’s utility customers and other stakeholders. The process began in November when BPA announced its rate proposals for fiscal years 2014 and 2015.