More Than 1 Million Oregonians Could Face 6.3% Electricity Rate Hike After Court-Ordered Salmon Protections

More than 1 million Oregonians served by consumer owned utilities could face higher power bills if the Bonneville Power Administration moves ahead with a proposed rate increase of up to 6.3%, following a federal court order requiring additional water to pass through Columbia and Snake River dams to protect threatened fish.

Bonneville Power Administration Seeks Another Rate Increase

The Bonneville Power Administration (BPA) said Thursday it has begun an expedited process to address an estimated $250 million revenue shortfall caused by the court-ordered increases in water spill.

BPA sells wholesale electricity generated at its federal hydroelectric dams to more than 300 customers across Oregon, Washington, Idaho, Montana and parts of California. It also operates about 75% of the region’s high-voltage transmission system.

The rate case follows a ruling by U.S. District Judge Michael Simon in federal court requiring BPA to send more water over eight Columbia and Snake River dams rather than through turbines.

The additional spill is intended to help fish populations but reduces the amount of electricity the dams can generate.

The agency had already established an average effective power rate increase of 8.9% for the 2026 through 2028 rate period. BPA is seeking an expedited review beginning Oct. 5, with a final decision expected Dec. 18.

More Than 1 million Oregon Customers Could Face Higher Power Costs

Public utilities serving more than 1 million Oregon customers could be affected by the additional increase.

The Central Lincoln People’s Utility District, which serves parts of Lincoln and Coos counties and receives all of its power from BPA, is among the utilities exposed to BPA’s wholesale rates.

A coalition of public utilities and power industry groups has criticized the proposed increase. Tony Schacher, general manager of Salem Electric, said the cost burden will fall on the most vulnerable Oregonians.

Gov. Tina Kotek disputed that characterization, saying in a letter to the coalition that affordability concerns could be addressed if the federal government returns to negotiations over the region’s long-running conflict between hydropower production and salmon recovery.

The dispute leaves Oregon utilities facing the familiar regional question of how to balance the cost of electricity with efforts to protect endangered fish.