Columbia River People's Utility District recently signed a new long-term Power Sales Agreement with Bonneville Power Administration (BPA), its wholesale power provider. This agreement guarantees access to affordable Tier 1 power rates through September of 2044.
"At a time when there is so much uncertainty in the energy market, signing this contract is great news for all Columbia River PUD customers," said CRPUD General Manager Michael Sykes.
BPA has been CRPUD's sole power provider since the PUD started providing electric service in 1984. This is CRPUD's third long-term Power Sales Agreement with BPA.
PUD staff have worked closely with BPA and other public power partners over the last four years to develop this contract. The agreement preserves and protects a reliable, affordable power supply for CRPUD and the rest of BPA's preferred customers.
BPA's two-tiered rate design for power sales preserves low-cost benefits for established customers. The contract, which goes into effect on October 1, 2028, locks in how much power CRPUD can purchase at the cost-based Tier 1 rate.
Tier 1 rates are based on what the existing federal system can produce at cost. Any power CRPUD purchases over its contracted amount of Tier 1 power may be purchased at the Tier 2 rate, which can be significantly higher.
Tier 1 rates offer cost-effective power for CRPUD's more than 20,000 customers. This contract ensures CRPUD has long-term stability and reliable access to federal power at predictable rates for the next 16 years.
The contract also ensures the power delivered to CRPUD customers will continue to meet renewable energy and emissions reporting requirements. BPA's fuel mix is 93% carbon-free, with the other 7% of power coming from non-specified purchases.
BPA markets power from 31 federal dams and one nuclear plant. The region's average power costs are significantly lower than other parts of the United States thanks to the low-cost, renewable, reliable power generated by the dams.
Currently, CRPUD residential rates are roughly 44% lower than the national average.
"We are very fortunate to be a BPA customer," Sykes said. "This agreement will ensure that we will continue to receive low-cost, dependable power from BPA for several years to come."
