Bonneville Power Administration expects it to close annually with less than two months of cash on hand, reporting it could cause an increase in automatic power rates.
Blaming relatively dry winter weather and as a result low river flow, BPA officials at a first quarter business review public meeting of net revenues of minus $44 million, well below the agency’s $70 million target It announced that it expects that there will be. Its power services division is expected to have only 50 days of cash on hand by December 31st.
When financial reserves decline below Established Threshold, agent Additional charges will be automatically applied to that rate At the beginning of the next fiscal year that begins in October Increase your BPA‘s Financial booking is due to risk of target scope.
“There is a lot of uncertainty in forecasting for the remainder of BPA, but with regard to potential power surcharges, we can take careful and careful actions to reduce the likelihood of additional charges financially. We are investigating careful actions,” Chief Financial Officer, acting.
The policy document BPA provides to the Tri-Cities Area Journal of Business is attracting attention in the Provisions for Increasing Financial Reserves section. The agency will reserve fees or “amount required to fully recover” finances to collect $40 million a year, up to the low thresholds on the applicable business line. ”
BPA spokesman Doug Johnson said the $40 million figure is the cap and could be low depending on the status of the agency’s reserves.
“The most important thing is that it was early this year and many factors could affect whether additional charges will be triggered,” he said in a statement.
BPA provides more than a quarter of the energy used in the Pacific Northwest. Utilities serving Tri-Cities and surrounding communities receive more than 80% of their power from federal agencies.
