Utilities Hope to Keep Rates Flat

The Register Guard (Eugene, OR), July 7, 2002 | Go to article overview

Utilities Hope to Keep Rates Flat


Byline: SCOTT MABEN The Register-Guard

Beset with financial losses that are expected to persist for years, the Bonne- ville Power Administration is considering raising wholesale power rates again this fall.

That could spur Northwest utilities to pass the increased costs on to customers, as they did last fall with rate hikes of 20 percent to 40 percent. The municipal utilities serving Eugene and Springfield, however, hope to spare residents another jump in rates this year, representatives said.

"We'll try to hold the line and not have any rate increase at all," Eugene Water & Electric Board spokesman Lance Robertson said. "Barring something unusual happening, we may be able to skate through and absorb any Bonneville increase."

The same goes for the Springfield Utility Board, spokeswoman Meredith Clark said.

"Our goal right now is to do anything we can to not pass along a rate increase," Clark said. "But we also have found in the past that predicting these things is really difficult."

The BPA, a federal power supplier that adjusts its prices every six months, raised wholesale rates 46 percent last October, then scaled back that increase to 41 percent starting April 1.

As market prices have dropped, so have the BPA's costs for supplying power to its customers. The agency predicts that it will drop its rate increase to about 33 percent for October through March 2003. A preliminary forecast for April-September 2003 shows the rate increase bouncing back up to 39 percent.

For utilities that rely on the BPA for some or all of their electricity, the downward trend in what's known as the "load-based cost recovery adjustment" is good news, but it's only half the picture.

The BPA also is considering raising its "financial-based cost recovery adjustment" - a power rate adjuster based on the agency's financial health - up to its 11 percent cap in October. That would cancel out the rate decrease and result in an overall increase of about 3 percent.

"Our financial picture continues to get worse and worse," BPA spokesman Mike Hansen said.

A little over a year ago, the BPA had cash reserves of around $800 million. That gave it good odds of making its annual payment to the U.S. Treasury for loans financing hydro and transmission system improvements.

"We think come the end of this fiscal year, we'll be down around $128 million, which gives us about a 50 percent probability of making our treasury payment, which is not good," Hansen said. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Utilities Hope to Keep Rates Flat
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.