Future Power Supply
The cost of Big Bend Electric Cooperative’s (BBEC) wholesale power is the largest expense BBEC incurs in its business operations. BBEC’s current power supply contract with BPA ends in 2028.
Power is becoming increasingly scarce across the nation as demand continues to outpace supply, this creates a volatile and complex power purchasing market where prices change by the minute and balancing the grid is exceedingly difficult.
As the world has gained in technological advancements, so too has the demand for electricity. Some of the advancements driving this increased demand include data centers, electric vehicle charging, crypto-mining, population growth, and many others. As a result, we are at a crossroads where demand for electricity is exceeding supply. In an effort to curb climate change, hasty and poorly informed government policies have decommissioned fossil fuel generating resources like coal and natural gas before sufficient viable replacement alternatives have been established. Unfortunately, this is creating a perfect storm that is threatening grid reliability and future power supply options.
State & Federal Legislation
Lower Snake River Dams
BBEC’s wholesale power cost has been impacted in past years by as much as 25% from programs related to protecting fish and wildlife. BBEC supports measures to protect fish and wildlife that are cost-effective and based on science. BBEC believes that breaching Snake River Dams is not a viable solution to protecting fish listed as endangered species. Numerous other factors play a large role in the lifecycle of salmon including ocean conditions, predation and harvesting practices. BBEC belongs to a partnership of farmers, electric utilities and businesses that work together to ensure that the Columbia and Snake rivers remain living, working rivers. Read more about this partnership at the Northwest RiverPartners website.
Clean Energy Transformation Act (CETA)
In 2019, Governor Jay Inslee signed into law the Clean Energy Transformation Act (CETA) (SB 5116, 2019), which commits Washington to an electricity supply free of greenhouse gas emissions by 2045.
Electric utilities in Washington must eliminate coal-fired electricity by the end of 2025, transition to a carbon-neutral supply of electricity by 2030, and source 100% of their electricity from renewable or non-carbon-emitting sources by 2045.
In addition to CETA setting aggressive carbon goals, the Act also requires utilities to reach certain benchmarks to reduce energy assistance needs by making programs and funding available to low-income qualified households.
Climate Commitment Act (CCA)
Washington lawmakers passed the Climate Commitment Act (CCA) in 2021 as part of a suite of policies responding to climate change. The CCA created the Cap-and-Invest Program, intended to reduce greenhouse gas emissions by several specific entities including utilities.
CCA adds additional regulatory burden on utilities to purchase carbon free power when there is very little, if any, to be found. Even if you can find it, the cost is astronomical. If you can’t find any to purchase, then the state requires utilities to purchase carbon allowances at auction where proceeds go to the state or to industries who sell excess allowances on the market. In the first year alone, the sale of CO2 allowances generated $1.64 billion in new revenues for the state.
Wildfire Mitigation
In 2023 the Washington Legislature passed House Bill 1032 that addressed Wildfire Mitigation. Specifically “Mitigating the risk of wildfires through electric utility planning and identification of best management practices appropriate to each electric utility’s circumstances.”
Every 3 years, each electrical utility must review, if appropriate revise, and adopt its wildfire mitigation plan.
Big Bend Electric continues to be proactive in protecting our communities from the threat of wildfires. For more than 40 years, Big Bend Electric has conducted a tree trimming program on a rotational basis throughout our service territory stretching from Pasco to Ritzville. This preventative process removes tree limbs and vegetation that has grown into areas near our lines, which helps reduce the risk of fire and improves reliability.
For the past 15 years, we have contracted with a pole testing company who evaluates the condition of our poles. This approach strengthens our system and aids in wildfire prevention at the least cost to the membership.
Big Bend Electric’s Wildfire Mitigation Plan guides further efforts to mitigate the potential of wildfires related to our electrical system. The plan generally calls for enhanced system inspections, equipment calibrations that more quickly deenergize lines when dangerous conditions are present and the addition of more downline equipment to better sectionalize our electrical system.
Impact on Rates
Energy legislation will continue to have a significant impact on BBEC electric rates. In addition to mandates or caps requiring generation/purchase of low-emission power, large investments in new technology will be needed to meet proposed targets as well as additional staff needed for regulation compliance. These factors will push rates upwards. Energy legislation must consider the impact on consumers.
Contact legislators
Your elected officials are hearing from many different interest groups on how to address climate change and renewable energy. High priority is being placed on developing programs quickly with aggressive targets in energy legislation.
At a time when fossil fuels and construction materials are at record high prices, building new generation to achieve legislation targets may be the most expensive in history.
This is the time to ask our leaders hard questions about the economic impact of energy legislation. Your opinion is needed to assure that responsible, sound, and sustainable energy policy is developed to maintain access to safe, reliable, and affordable energy.
Contact your elected leaders and ask the following basic questions:
- Experts say that our nation’s growing electricity needs will soon go well beyond what renewable energy, conservation, and energy efficiency can provide. What is your plan to make sure we have the electricity we’ll need in the future?
- What are you doing to fully fund the research required to make emissions-free electric plants an affordable reality?
- Balancing electricity needs and environmental goals will be difficult. How much is all this going to increase my electric bill and what will you do to make it affordable?
You may also visit the National Rural Electric Cooperative Association website to learn more and contact your legislators.