Bonneville Power Administration customers’ power rates will increase by about 8 to 9% over the next three years, while transmission rates will jump by an average of nearly 20%, the agency said July 24.  

The agency published the rates in its final record of decision (ROD) for the BP-26 rate period covering the 2026/28 interval, which BPA says will be a one-time deviation from its typical two-year interval for rate-setting. 

“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 agency said in a statement announcing the decision. 

“We appreciate the incredible collaboration with our ratepayers across an array of power-, transmission- and tariff-related matters,” BPA Administrator John Hairston said in the statement. “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’s power rate schedule consists of multiple categories of primary rates for federal energy sales, which include the: 

• • Priority Firm power rate, or “Tier 1,” which applies to firm power sales to BPA’s public body, cooperative and federal agency customers; 
  • Industrial Firm power rate, which is applicable to firm power sales to direct service industrial customers; and 
  • New Resource Firm power rate, which applies to firm sales to investor-owned utilities and public customers serving new large loads. 

Tier 1 “non-slice” contracts represent most of BPA’s power sales. “Non-slice” refers to a type of contract in which the customer is guaranteed a specified volume of energy regardless of conditions on the hydro system; in contrast, total volumes delivered to “slice” customers can vary based on availability.   

In its statement, BPA said the “average effective increase” for Priority Firm Tier 1 power rate will be 8.9%, compared with an initial proposed increase of 9.8%, while transmission rates will increase by an average of 19.9%. 

An appendix in the ROD provides greater detail, saying BPA staff will work to deliver a Tier 1 “non-slice” effective power rate no higher than $38.59/MWh, representing an increase of about 8.3% above current rates.  

For other categories, the appendix says, BPA “commits to produce rates no higher than $0.5/MWh above” the “indicative rates” of $37.96/MWh for Priority Firm Tier 1, $45.92/MWh for Industrial Firm and $111.99/MWh for New Resource Firm.    

“These rates will also enable the advancement of critical initiatives to meet our customers’ needs and support national priorities for more abundant, reliable and secure energy,” Hairston said in a preface to the final decision. “From implementing new long-term power sales contracts to pursuing day-ahead market participation and advancing major power and transmission investments, the work we accomplish over the next three years will be critical to the long-term success of BPA, our customers and the region we serve.”