KBRA proponents say irrigators will have consistency in cost of power 

By JOEL ASCHBRENNER

H&N Staff Reporter

September 30, 2010

   But why are power rates for irrigators , a relatively small portion of the Basin’s population , important for the rest of us?

   Electricity to run irrigation pumps makes up a large portion of many farmers’ and ranchers’ budgets. With increasing power rates, electricity is the single largest expense for some irrigators, said Greg Addington, executive director of the Klamath Water Users Association. Agriculture in the Basin sustains about 4,500 jobs and is a $600 million business, local officials say, so when irrigators are hurting economically, it impacts the entire Basin.

   The Klamath Basin Restoration Agreement aims to make power rates for irrigators more affordable, Addington said. Stabilizing power rates for irrigators was one of the main goals for the developers of the agreement.

   “That was the driver for us,” Addington said. “We saw a potential train wreck coming for ratepayers.”     

   Addington said he thinks the KBRA will result in irrigators paying 4 to 5 cents per kilowatt-hour, which is more than some pay now, but less than if increases continue.

   Prior to 2006, PacifiCorp, which owns four hydroelectric dams on the Klamath River, provided electricity to Klamath Project irrigators at about 0.6 of a cent per kilowatt-hour, and to off-Project irrigators at about 0.7 of a cent per kilowatt-hour, Addington said.

   These contracted rates ended when the dams’ Federal Energy Regulatory Commission licenses expired in 2006.  

   Rate increases

   Since then, power rates for Oregon irrigators increase 50 percent per year until they reach the tariff rate, which is the standard power rate for ratepayers in a particular classification, such as agriculture, industrial or residential.

   Oregon irrigators will pay about 3.2 cents per kilowatt-hour this year, about 5 cents next year and about 8 cents the following year, Addington said.

   California irrigators are already paying the tariff rate of about 9.2 cents per kilowatt-hour.

   The KBRA includes two main provisions that aim to ensure affordable power rates for irrigators, said Hollie Cannon, executive director of the Klamath Water and Power Agency.

   If enacted, the agreement will provide $40 million to build renewable energy projects in the Basin. The power generated would be sold to help offset power rates for irrigators. Cannon said he did not yet know what types of renewable energy sources would be developed.

   The agreement also attempts to provide irrigators with lower power rates by connecting them with federally-generated electricity rather than using PacifiCorp electricity.

   Under the agreement, Basin irrigators in Oregon will use power from the Bonneville Power Administration and California irrigators will receive electricity from the Western Area Power Administration.

   Addington said the federal electricity will be cheaper than PacifiCorp’s, while Cannon said it will be available for irrigators on and off the Klamath Reclamation Project.

Side Bar

Opponents: No power guarantee in KBRA   

   Opponents of the KBRA, however, say the agreement will do nothing to bring down power rates.

   Tom Mallams, president of the Klamath Off-Project Water Users Association, said the he thinks the KBRA will fail to lower power rates because irrigators will have to pay   PacifiCorp to deliver the electricity after buying it from federal power administrations.

   “Affordable power is not there,” he said. “It simply is not there. The Department of the Interior said there’s ‘a snowball’s chance’ that we’ll have affordable rates.”