LIGHT READING INLAND POWER AND LIGHT inlandpower.com
APRIL 2018
Pending BPA Charges Could Impact Inland Power and Our Members After decades of delivering reliable and inexpensive hydropower, Bonneville Power Administration (BPA) faces a future in which customers could abandon it for cheaper power. BPA got into this difficult situation because of two events. One, an influx of excess wind and solar power from California and around the Pacific Northwest has caused secondary market prices to drop significantly. Secondary sales are a critical revenue component for BPA’s financial stability and without these sales their financial forecast is dreary. Based on BPA’s projections, many utilities will be paying approximately $42.68/MWh in 2028, while market rates are forecast between the low $20’s to $30’s. Inland Power is currently under contract with BPA until 2028, but anticipates that it will not purchase all of its power from BPA if secondary markets are more competitive.
that they would need to implement a CRAC. Therefore, Inland Power is anticipating an approximate charge on all kWh sales, which would then be passed on to our membership. If enacted, this charge would begin in October and would continue for six months while BPA re-evaluates its financial position. As its financial position improves, the cost recovery adjustment will be reduced or eliminated. BPA Court Ordered Spill Surcharge
In addition to the secondary market and CRAC pressures BPA is facing, Judge Simon of the Oregon District Court has ordered the Corps of Engineers and BPA to spill additional water over the Lower Columbia and Snake river dams. This order is a result of a year-long hydro modeling effort ordered by the judge to impose maximum spring season spill. While several opposed the order, it is now up to the Ninth Circuit Court of Appeals to decide.
At the same time as the lowered secondary market prices, the agency faces court-ordered increased spill requirements over dams and more Potential Surcharges spending on fish and wildlife mitigation and recovery.
Could Temporarily
BPA has appealed this order, but anticipates that additional costs associated with the court ordered spill could reach $40 million, which the agency would collect through a surcharge unless it is able to find internal offsets. If this surcharge is implemented, it would also be passed along to Inland’s members.
Inland Power and other utilities in the region that depend on BPA face a fastImpact Your Inland approaching financial impact with two possible charges being passed directly Power Electric Bill. to the utilities it serves. Inland Power has As mentioned, the spill surcharge has been not been given official notification that appealed, but if an appeal is not successful, BPA anticipates these two charges will be approved, but trends indicate that one, they will implement a surcharge by May 31 and it would occur or both, are likely. for several months during the high runoff season. BPA Cost Recovery Adjustment Charge
BPA’s cost recovery adjustment charge (CRAC) is a clause in Inland Power’s wholesale rate schedule that allows BPA to adjust the rate, if necessary, to meet its financial obligations. The cost recovery adjustment is triggered when BPA’s projected financial reserves drop below a predetermined level - a level that would endanger BPA’s ability to make its U.S. Treasury payments and meet other financial obligations. At BPA’s last quarterly review, they announced that there was a 72 percent chance
While we hope that neither of these surcharges are implemented, they are being discussed heavily with BPA and within the industry. We wanted to provide our members with an early communication so that members could anticipate and understand these temporary charges to their accounts should they occur. Inland will send out a separate communication notifying members if either of these charges become official and the impact they will have on our rates.
i n land powe r is my coope rat ive
WE ARE A MEMBER-OWNED ENERGY COOPERATIVE COMMITTED TO SAFE, RELIABLE SERVICE AT COMPETITIVE RATES.
Scholarships Due April 19, 2018
- i n l a n d p o w e r m i s s i o n stat e m e n t
Inland Power Excellence Award Scholarships Inland Power is proud to offer the Excellence Award scholarship program. The cooperative awards 15 – $1,000 scholarships to either graduating high school seniors or continuing college students. In addition, and in an effort to inspire and promote future linemen, this scholarship program is open to students enrolling in line school. The program is exclusively for active Inland Power members and their children. Senior high school and college students are required to submit a completed application form along with the requested information described below. • Official Transcript/Grades • Personal Profile
ENERGY EFFICIENCY T O D D A N D L I N D S E Y, YO U R E N E R G Y E F F I C I E N C Y T E A M
USA Today Article Says Wasted Energy is Top Waster in the Country By Todd Williams and Lindsey Hobbs An article in USA Today written by Katherine Muniz of The Motley Fool recently highlighted the top 20 ways Americans waste money. Some topics weren’t all that surprising, but the #1 answer for how American’s are blowing their money was on wasted energy. Inland Power is here to help you stop wasting your energy dollars! The article states, “based on annual home energy costs, Business Insider estimates that American’s throw away $443 billion on wasted energy, and governmentsupported Energy Star says consumers can cut energy costs by a third if they use the recommendations and suggestions on their to-do list.” Cutting energy costs by a third may be a stretch goal, but at Inland Power we believe your money is valuable to you and we know you work hard for it.
• Essay • Two Letters of Recommendation
Here are Inland’s Top 5 recommendations to combat energy waste, ranked from lowest investment to highest: 5. Choose Energy Star certified LED bulbs 4. Plug electronics into a smart power strip 3. Recycle that spare refrigerator or freezer 2. Choose a heat pump water heater 1. Install a heat pump and smart thermostat The closing quote from the article offers an excellent perspective. “Making subtle changes in our lifestyle can greatly diminish the amount of money we waste and can result in having more financial security down the road.” Please give us a call at (509) 789-1801 or drop us a note to conservation@ inlandpower.com to discuss ways Inland Power can help you conserve energy.
An all-volunteer committee comprised of approximately five to 10 Inland members will make the selection of scholarship recipients. The selection committee will meet in May and recipients will be notified shortly thereafter. For the full program description, application and eligibility requirements, please visit www. inlandpower.com, or call (509) 789-4277. The deadline to apply is Thursday, April 19, 2018. VISIT INLANDPOWER.COM FOR MORE ENERGY EFFICIENCY TIPS
April is National Safe Digging Month Call 811 Before You Dig
ALWAYS
CALL BEFORE YOU
One free, easy call gets your utility lines marked and helps protect you from injury and wasted expense. Know what’s below. Always call 811 before you dig.
DIG
Q. What is 811? 811 is a new federally-mandated N-11 number designated by the FCC to consolidate all local “Call Before You Dig” numbers and help save lives by minimizing damages to underground utilities. One easy phone call to 811 quickly and easily begins the process of getting underground utility lines marked. Local personnel will notify affected utility
One free, easy call gets your utility lines marked AND helps protect you from injury and expense. Safe Digging Is No Accident: Always Call 811 Before You Dig Know what’s below. Always call 811 before you dig. Visit call811.com for more information.
companies, who will mark the underground lines at no charge. Q. I’m just a homeowner, not a contractor - is 811 for me? Whether you are a professional excavator or an avid do-it-yourselfer, you must call 811 before every dig. Q. Who is promoting awareness of 811? The national 811 campaign is a project of Common Ground Alliance (CGA), working with its 1,400 individual members, member organizations, sponsors and national launch partners to help keep you safe.
INSERT CALL CENTER LOGO HERE
10110 W HALLETT ROAD
|
SPOKANE, WA 99224
inlandpower.com