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BPA Announces Rate Increase

October 03, 2011

As of October 1, 2011, the Bonneville Power Administration (BPA) will be raising its wholesale electric rates (rates that Peninsula Light Co. is charged to purchase electricity) by 7.8 percent. This is the second rate increase by BPA in the last two years. PenLight is a full requirement utility of BPA.

In response, PenLight will be raising the rates for all classes of service an average of 5.9 percent; residential rates will increase by 4.9 percent. PenLight’s Board has decided to delay the increases until spring of 2012 to offset the impact on the membership.  For the average PenLight residential member, this increase will mean about a $4.00 per month addition to their electric bill.

Mr. Spence Nordfors, PenLight Board President, stated, “By delaying the rate increase and offsetting its impact, PenLight is doing what it can to lessen the burden on members, especially during the upcoming winter months.” Mr. Nordfors added, “The utility provides a number of ways to assist its members through payment assistance for residential users as well as conservation programs designed to help conserve electricity for both residents and commercial enterprises.”

In 2009, PenLight signed a new long-term, 18-year contract with BPA that sets in motion a new rate structure and a requirement to meet all future load growth with market rate power. In addition, PenLight is also required to meet the conservation and renewable mandates of Initiative 937 that was passed by voters in 2006.

Jafar Taghavi, PenLight CEO, states, “BPA is changing how it does business, and we will have to adapt to its new business model. The board and PenLight management are exploring ways we can help members conserve energy and also keep PenLight fiscally sound. Our new relationship with BPA means that tomorrow’s way of doing business will not be business as usual.” “And,” he continued, “I want members to know that PenLight is stringently managing its costs.”

Peninsula Light Company is a member owned, not-for-profit cooperative located in Gig Harbor, WA and is a full requirement utility of the Bonneville Power Administration. The utility began in 1925. Since then, the cooperative has grown to be the second largest cooperative in the Northwest with 25,000 members and serves over 31,000 meters on the Gig Harbor and Key Peninsulas. The utility provides electric power as well as water services.

For more information, visit www.penlight.org or call Member Services at 253.857.5950.