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Committee OKs power bill
Senate
will consider rate hike for Klamath dams
The state Senate will consider a bill that would raise power rates to pay for removal of four Klamath River dams.
The five-member Senate Environment and Natural Resources Committee voted 4-1 to approve the legislation and send it on to the Senate. State Sen. Brian Boquist, R-Dallas, voted against it.
Opponents criticized the bill for not addressing the cost of potential removal of sediment behind the dams, saying it could open a door to unchecked rate increases.
Proponents argued the bill protects power users from more increases, and also helps implementation of the Klamath Basin Restoration Agreement, which seeks to resolve conflicts over water in the Basin.
“I don’t have much doubt that this will save ratepayers money in the long run,” said Greg Addington, executive director of Klamath Water Users Association.
A group of stakeholders, state and federal officials and PacifiCorp representatives reached a tentative dam removal agreement in November.
As part of that agreement, Gov. Ted Kulongoski promised to introduce legislation that would direct the state’s Public Utility Commission to raise PacifiCorp’s rates to help pay for dam removal.
The increase would generate $180 million over 10 years. PacifiCorp has said the increase would raise the average Oregon customer’s bill by about $1.50 a month. Agricultural power users would see about a 2 percent increase in their bill.
The $180 million, along with $20 million from PacifiCorp’s ratepayers in other states, would be combined by $250 million in yet-to-be approved bonds from the state of California to help pay for dam removal.
If dam removal does not take place, money collected to pay for it would be returned to ratepayers.
State Sen. Doug Whitsett, R-Klamath Falls, an opponent of the bill, did not return calls for comment.
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