Published December
2003
PUD
rejects BPA’s offer, will continue with lawsuit
SCBJ
Staff
In November, the
Snohomish County PUD became the first public utility in the Pacific Northwest
to reject a proposal that would lower the electricity rates that 72 public
utilities pay the Bonneville Power Administration.
Because all 72 utilities
must sign on by Jan. 21 if the rate reduction is to take effect, the vote
would kill an arrangement supported by power brokers across the Northwest.
Supporters include
Gov. Gary Locke, three other Northwest governors and most of the Northwest’s
congressional delegation.
PUD commissioners
Cynthia First, Dave Aldrich and Kathy Vaughn said they rejected the one-year,
9.7 percent rate reduction because it would give the utility too little
money for forcing it to drop its right to challenge the way BPA compensates
private utilities including Puget Sound Energy.
PUD General Manager
Ed Hansen estimates that the PUD would save between $100 million and $300
million if the ongoing lawsuit against BPA successfully forces the federal
energy wholesaler to rewrite the way it distributes its electricity in
a way that’s more favorable to public utilities.
BPA has said the
settlement would save the PUD $35 million over three years, a figure PUD
officials say is misleading because part of the rate reduction would come
from deferring costs that would have to be paid later.
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