Court decision could mean higher rates for PSE customers
SEATTLE -- Puget Sound Energy says it will ask the State Utilities and Transportation Commission to delete a credit which now appears on residential and small farm electric bills.
The result will be an average increase of 13.2 percent -- about eleven dollars a month -- for a person using 1000 Kwh per month.
The credit was negotiated by BPA several years ago. It is designed to compensate private power companies because power from federal dams goes first to public power companies.
When it was first adopted as part of the Northwest Power Act, the money was supposed to help equalize rates.
When Federal power rates climbed about even with private power rates, six Northwest private power companies negotiated a long-term credit system. That system was challenged successfully by a consortium of public power interests.
Bonneville and Puget Sound Energy say the court did not invalidate the concept of compensating private power, but only invalidated the present formula used by BPA.
"The impact of this for our average residential customer is a 13 percent increase in their current bill, by elimination of that credit," said Steve Reynolds of Puget Sound Energy. "That's a huge impact to our customers, and one that we are extraordinarily concerned about."
PSE serves 950,000 people in nine Washington counties. he average increase that will result from cancellation of the credit is actually 13.2 percent.
Renton is one the cities served by Puget. Here were some typical comments:
Virigina Fain: "Just what I need. They dig us one way or another."
Douglas James: "I don't think it's right. I really don't! 13.2 percent! It's too much, way too much."
Judy Ford: "It's unfair. My health insurance goes up, there's no one to regulate that. The cost of energy goes up. It's too much."
Puget's Reynolds told KOMO 4 News: "We will tell our customers and we are telling our customers, we will do our best to reestablish that credit."
PSE has an important ally. The king of public power, Bonneville, says everyone paid for the dams. A Bonneville news release said "The court is in error".
Bonneville says it will meet with private and public power agencies in an attempt to negotiate and out-of-court settlement. But the power agency admitted it won't be easy.
They say it could take months and there is no chance an agreement can be reached earlier enough to prevent a power rate increase by PSE and five other private power companies: Portland General Electric, PacifiCorp, Avista, Idaho Power, and NorthWestern Energy.
The result will be an average increase of 13.2 percent -- about eleven dollars a month -- for a person using 1000 Kwh per month.
The credit was negotiated by BPA several years ago. It is designed to compensate private power companies because power from federal dams goes first to public power companies.
When it was first adopted as part of the Northwest Power Act, the money was supposed to help equalize rates.
When Federal power rates climbed about even with private power rates, six Northwest private power companies negotiated a long-term credit system. That system was challenged successfully by a consortium of public power interests.
Bonneville and Puget Sound Energy say the court did not invalidate the concept of compensating private power, but only invalidated the present formula used by BPA.
"The impact of this for our average residential customer is a 13 percent increase in their current bill, by elimination of that credit," said Steve Reynolds of Puget Sound Energy. "That's a huge impact to our customers, and one that we are extraordinarily concerned about."
PSE serves 950,000 people in nine Washington counties. he average increase that will result from cancellation of the credit is actually 13.2 percent.
Renton is one the cities served by Puget. Here were some typical comments:
Virigina Fain: "Just what I need. They dig us one way or another."
Douglas James: "I don't think it's right. I really don't! 13.2 percent! It's too much, way too much."
Judy Ford: "It's unfair. My health insurance goes up, there's no one to regulate that. The cost of energy goes up. It's too much."
Puget's Reynolds told KOMO 4 News: "We will tell our customers and we are telling our customers, we will do our best to reestablish that credit."
PSE has an important ally. The king of public power, Bonneville, says everyone paid for the dams. A Bonneville news release said "The court is in error".
Bonneville says it will meet with private and public power agencies in an attempt to negotiate and out-of-court settlement. But the power agency admitted it won't be easy.
They say it could take months and there is no chance an agreement can be reached earlier enough to prevent a power rate increase by PSE and five other private power companies: Portland General Electric, PacifiCorp, Avista, Idaho Power, and NorthWestern Energy.