City raises power rates after Bonneville hikes

Published on Thu, May 8, 2003
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City raises power rates after Bonneville hikes

The city of Blaine raised its power rates 5.5 percent in light of recent increases by Bonneville Power Administration (BPA), the source of Blaine power.

Although BPA raised its rates in October of 2002, the city did not raise its rates. �October�s a difficult time to raise rates,� Banham said, noting they could have, and should have passed the rates in October anyway. �Now we need to do this to end up with a reasonable balance at the end of the year.�

In September of 2001, BPA began a cost recovery adjustment clause (CRAC), which occurs every six months. Between October 2001 and April 2002, BPA raised electric energy charges by 22 percent, and then lowered it by four percent in 2002. BPA then raised its rates 8.42 percent in October of 2002, however the city�s rates remained the same.

As the city did not pass an increase on the BPA wholesale rate increase in October of 2002, the current increased rate would take place in October 2003, when BPA forecasts a rate increase to the city of an additional seven percent.

Currently, Blaine residents pay an average of $71.96 a month, based on 122 kilowatts used. That bill would rise to $75.89 per month.