BPA and customers settle on strategic rate increases to meet customer load growth and connect new generation

The Bonneville Power Administration continues to demonstrate its commitment to keeping power and transmission rates among the lowest in the Pacific Northwest. In collaboration with customers, BPA is strategically raising power and transmission rates to meet customer needs and support national priorities for more abundant, reliable and secure energy.

Lower than initially anticipated, the final rates for fiscal years 2026, 2027 and 2028 follow more than a decade of holding increases at or below the rate of inflation – an accomplishment that stands out among the rising rates of regional utilities during the same period.

The average effective increase for the Priority Firm Tier 1 power rate, which represents the majority of BPA's power sales, is 8.9%. The average transmission service rate increase across all products is 19.9%.

The rates were developed through a series of settlements among rate case parties and BPA staff, resulting in lower rate increases than BPA initially proposed while continuing to support investments in the federal power and transmission systems. The settlements balance the need to keep rates as low as possible while recovering projected cost increases to maintain reliable, safe operations as BPA delivers power across more than 15,000 circuit miles of high-voltage transmission in a nine-state region of more than 300,000 square miles.

“We appreciate the incredible collaboration with our ratepayers across an array of power, transmission and tariff related matters," said Administrator and CEO John Hairston. “We've developed a bedrock of support for the programs, projects and initiatives we're implementing as Bonneville continues to meet the power and transmission needs of our utility customers, and to provide reliable, affordable and safe electricity to Northwest communities."

BPA initiated the BP-26 Rate Case as well as the TC-26 Tariff Proceeding with the issuance of Federal Register notices in November 2024. TC-26 concluded on March 7 with a final record of decision that adopted a settlement among all parties. BPA worked with rate case parties to develop settlements for both power and transmission rates by mid-April. Those settlements are reflected in the final record on the BP-26 Rate Case signed and issued today by the administrator.

The BP-26 Rate Case represents a one-time shift to a three-year rate period to coincide with the close of historic long-term Regional Dialogue power sales contracts. These contracts introduced tiered power rates and established two decades of certainty in power delivery for investor-owned and public utility customers and the federal power marketer.

The next rate case, BP-29, will set rates for the first two-year rate period under new long-term Provider of Choice contracts that go into effect Oct. 1, 2028.

Under the Northwest Power Act, BPA is required to establish rates using sound business principles for the sale of power and transmission services. BPA's rates are designed to recover costs associated with the generation or conservation of electrical power as well as costs associated with the transmission of non-federal power across BPA's bulk electric grid.

The average effective rate increases for both power and transmission services are measured across all BPA ratepayers. The actual rate impact for each of BPA's 142 power and 410 transmission customers varies based on the services they purchase. BPA provides a model that shows the estimated impact of the rate change for each customer.

The changes captured in the final BP-26 ROD will be effective Oct. 1 and remain in effect until Sept. 30, 2028. Specific to rates, BPA will file the case with the Federal Energy Regulatory Commission, requesting interim approval for the rates while awaiting final FERC approval.

The final record of decision for the TC-26 Tariff Proceeding can be found here: https://www.bpa.gov/energy-and-services/rate-and-tariff-proceedings/tc-26-tariff-proceeding

The final record of decision for the BP-26 Rate Case can be found here: https://www.bpa.gov/energy-and-services/rate-and-tariff-proceedings/bp-26-rate-case