March 2011
Generating Capacity of the Columbia
River System
Dear
Members;
As discussed in the Ruralite last month, future rate
increases for Benton REA members are being driven by the cost of wholesale
power, not the internal costs of running our cooperative. Therefore keeping
track of why wholesale power costs are increasing is very important! Let’s take
a look at the generating capacity of the Columbia River system,
one of the reasons that future wholesale power costs will increase.
The available electric generation provided through the
Bonneville Power Administration (BPA) from the Columbia
River has been reduced significantly over the past few decades.
However, the cost of operating the Columbia River
system has continued to increase. As a result, wholesale power costs have, and
will continue to increase because there are fewer BPA kilowatt-hours being
generated on the Columbia River system to
cover the increasing operating costs of the system. In fact, over four thousand
megawatts (enough electricity to serve four cities the size of Seattle)
have been lost as a result of changing Columbia River
flows to enhance fish and wildlife habitat. In addition to lost generation, BPA
makes annual direct payments to finance fish and wildlife programs, which
exceed $130 million per year.
Future resources used to replace the lost generation will
cost at least two to three times the current cost of BPA generation from the Columbia River system. We are doing everything we can to
protect the existing generating capability of that system.
Knowing that retail
rate increases are on the horizon, let’s work together to keep ourselves and
others informed of the reasons!!! You can stay informed about this and other
issues by joining our I Want to Know campaign by
completing and returning the form on page 25. After all that is "The Cooperative Way.”
Sincerely,
Charles
Dawsey
General
Manager
