Managers Message

Integration of Renewable Resources

 

Dear Members;

 

As we know, future rate increases for Benton REA members are the direct result of rising wholesale power costs, not the internal costs of running our cooperative.  That’s why keeping track of wholesale power costs becomes very important!  Let’s take a look at integration of renewable resources, another reason future wholesale power costs are on the rise.

                Over 3000 megawatts of renewable generating resources have been added to the Bonneville Power Administration (BPA) electrical system in the last few years.  The output from renewable resources (wind) is intermittent due the unpredictability of wind. Historical operation of these wind resources indicates that they are available to meet the needs of electrical consumers about 28% of the time.  However, electric consumers want reliable electric service 100% of the time, not just when the wind blows.  To compensate for the intermittent nature of wind resources, BPA has dedicated over 840 megawatts of generation from the Columbia River as a standby resource to "fill in” the 72% of the time that the wind resource is not operating.  Unfortunately, much of the wind energy including the "fill in” is being sold to California utilities to meet their environmental obligations.  To make matters worse, the 840 megawatts of hydroelectric generation (approximately ½ of the generating capability of McNary Dam) is no longer available for purchase by local utilities to sell to northwest electric consumers.

                Future generation used to replace the 840 megawatts committed to make renewable resources work will cost at least two to three times the current cost of BPA generation from the Columbia River.  Obviously this drives up the cost of wholesale power. We are doing everything we can to protect the existing generating capability of the Columbia River system.

                We know that retail rate increases are on the horizon, let’s work together to inform others of the reasons!!!  After all that is "The Cooperative Way.”

 

Sincerely,

Charles Dawsey

General Manager