02.09.06

Cantwell Grills Energy Secretary on President’s Plan to Raise Northwest Electricity Rates

Senator: proposal sets dangerous precedent of ignoring local needs

WASHINGTON, D.C. – Thursday, U.S. Senator Maria Cantwell (D-WA), the Senate Democrats’ point person on energy, pressed Energy Secretary Samuel Bodman for answers on an administration proposal to raise Northwest electricity rates. Last year, Energy Secretary Sam Bodman promised not to unravel the Bonneville Power Administration’s (BPA) system of cost-based rates without Congressional approval. Thursday, under questioning from Cantwell and other Northwest members of the Energy Committee, Secretary Bodman confirmed the Administration’s intention to implement the plan, but agreed to meet with Senators before officially triggering the rate hike process, which had been scheduled to begin today.

“I was hoping the energy secretary would keep his commitment to Northwest families and businesses, but today he confirmed that this administration wants to push ahead with a rate hike despite the objections of the entire Northwest Senate delegation,” said Cantwell, a member of the Senate Energy Committee. “We’re not going to slow down our opposition. I will do everything I can to make sure this ill-considered plan doesn’t move forward. This is nothing more than a billion dollar tax hike for the Northwest and an end-run on Congress.”

Wednesday, Cantwell led the eight Northwest senators in a letter opposing the administration’s rate hike plan. Under current federal law, BPA has the authority to sell surplus power and used the revenue to lower electricity rates throughout the Northwest. The proposal included in the administration’s Fiscal Year 2007 budget would prevent certain surplus sale revenues from being used to lower power prices for BPA customers, and could raise Northwest power rates by an estimated $924 million over the next 10 years.

A preliminary analysis of the president’s plan released Wednesday by the Northwest Power and Conservation Council also raised serious questions about its long-term consequences: “The proposal sets an alarming precedent…it appears that the Administration has the ability to further increase the dollar amounts in future budget proposals without the need for authorizing legislation.” The Power Council analysis also estimated that the plan would reduce personal income in the regional by $109 million and lead to a loss of 1,120 jobs.

###