Plentiful Water Supply Sends Power Price Plunging Published in the Herald-Republic on Saturday, July 20, 2002 Grand Coulee Dam's reservoir
is just about full, and the snowpack is still 110 percent of
average for parts of the Columbia River Basin. Here in the
hydropower-dependent Northwest that means the electricity
supply is plentiful. Maybe even a little too plentiful if
you've got power to sell. "The good news is,
we've got real good water," said Ed Mosey, spokesman for
the Bonneville Power Administration, the federal power
marketing agency in Portland. "The bad news is, the price
is in the basement. You can't sell it for enough money to pay
your debts." Wholesale electricity rates
for this weekend were running about $7 per megawatt-hour. More
typical would be $21 to $28 a megawatt-hour, and during last
year's drought the price was more than $200 a megawatt-hour. Wildfires in Oregon also
have interfered with the transmission of Northwest-generated
electricity to California, where prices have been a relatively
low $30 per megawatt-hour. "When the price is high
like last year, you pay more for the power you need. When the
price is low because you have a big supply and a recession,
which has reduced demand, that drops the price down and you
can't get the revenue you need," Mosey said. "You're frustrated at
the high end and equally frustrated at the low end." And that raises the specter
of rate increases. BPA sells electricity from 31 federal hydro
projects in the Columbia River system along with the power
from the Columbia Generating Station nuclear power plant near
Richland. Its customers are publicly
owned and investor-owned utilities. A small rate increase is
possible in October, perhaps 1 percent to 2 percent, and then
another higher one, perhaps around 5 percent or 6 percent
after the first of the year -- unless BPA's customers agree to
significant program cuts to save money, Mosey said. "Everything we spend
money on is on the table," he said, from renewable energy
to fish and wildlife programs to conservation programs. "Everyone who benefits
from the federal cash flow from hydropower sales is going to
be thinking about how to tighten their belts." With all the water that's
available, BPA's electricity producers would typically be
generating electricity to sell right now. "We can't sell
it," Mosey said. Instead, for example, Energy
Northwest on Friday reduced power at the 1,200-megawatt
nuclear plant to 85 percent of capacity at BPA request. "This plant has been
going up and down, almost on a weekly basis, since May -- like
a yo-yo," said Don McManman, a spokesman for Energy
Northwest, the public power consortium that owns the nuclear
plant. It's an unusual level of
flexibility for a nuclear operation, but as a nuclear power
provider among BPA's hydropower operations, Energy Northwest
is in a unique position. "We have to complement
the river," McManman said. A more typical operation is
Grand Coulee, the 6,800-megawatt behemoth dam on the Columbia
River. On Friday, the reservoir was at elevation 1,288.7 feet.
Full is 1,290 feet. "We're up in the top
there pretty close," said Craig Sprankle, a public
affairs officer for the dam, which is operated by the U.S.
Bureau of Reclamation. The dam has been operating
within the top two feet of capacity for the last several weeks
because of the volume of snowmelt from the mountains. "We expect to continue
doing that in the near future," he said. The goal is usually to get
to the summer range of 1,280 feet or above by July 1 -- and
that's not been a problem this year. The water coming down the
Columbia River system since January is about double the volume
when compared with last year. But no excess water has been
spilled over the dam since Monday. "There's always a
possibility we may have to," Sprankle said. "It's
almost an hour-by-hour thing." n On the Net: www.bpa.gov www.energy-northwest.com www.usbr.gov In accordance with Title 17 U.S.C. Section 107, any copyrighted work in this message is distributed under fair use without profit or payment for non-profit research and educational purposes only. [Ref. http://www.law.cornell.edu/uscode/17/107.shtml]
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