On July 24, 2025, the Bonneville Power Administration (BPA) Administrator issued the Final Record of Decision (ROD) for BPA’s BP-26 rate proceeding, setting out new power and transmission rates for fiscal years (FY) 2026-2028. The new rates were developed collaboratively, with settlements reducing the initially proposed increases. Power rates will rise by about 7.8–8.9% to support major investments in hydropower and nuclear reliability, while transmission rates will increase by an average of 19.9% to fund grid expansion and resilience. The Administrator emphasized balancing affordability with fiscal discipline and the need to prepare for the end of Regional Dialogue contracts in 2028. In addition, a new Generator Interconnection Withdrawal Charge was established to improve the efficiency of the interconnection queue and provide greater certainty for developers.
BPA released its Initial Proposal for FY 2026-2028 power and transmission rates on November 22, 2024. Following many months of BPA and stakeholder collaboration, the proceeding reached three settlement agreements: the Power Rates Settlement, the Transmission Rates Settlement, and a Partial Settlement addressing the new interconnection withdrawal charge. No parties objected to these settlements, which collectively resolved all contested issues. The settlements capped the Tier 1 Non-Slice rate increase at 8.3%, reduced the transmission revenue requirement by $50 million, eliminated certain outdated charges, and updated service terms. In addition, if the agency’s transmission financial reserves reach a certain threshold during the rate period and other conditions are met, BPA agreed in the Transmission Rates Settlement to return 100% of any Transmission Reserves Distribution Clause amounts to customers as rate relief. In support of the settlements, BPA highlighted the benefits of consensus, avoiding litigation, and ensuring compliance with statutory cost-recovery standards. The Administrator formally adopted the settlements as the basis for BPA’s FY 2026-2028 rates.
BPA has filed its ROD with the Federal Energy Regulatory Commission, seeking approval by September 30, 2025, with the new agreed-upon rates taking effect on October 1.
Sanger Greene, PC (Dina Dubson Kelley) represented the Northwest & Intermountain Power Producers Coalition (NIPPC) and Renewable Northwest regarding the rate proceeding.
NIPPC represents electricity market participants in the Pacific Northwest, including independent power producers, electricity service suppliers, and transmission companies. NIPPC is committed to facilitating cost-effective electricity sales, offering consumers choices in their energy supply, and advancing fair, competitive power markets.
Renewable Northwest is a member-based nonprofit advocacy organization with a mission to decarbonize the region by accelerating the transition to renewable electricity.
Disclaimer
These materials are intended to as informational and are not to be considered legal advice or legal opinion, nor do they create a lawyer-client relationship. Information included about previous case results does not assure a similar future result.
