It appears President Bush's new genius budget plan takes a direct strike at the Northwest.
Since it's inception by the Roosevelt Administration in 1937, the Bonneville Power Administration has offered power to NW businesses and private consumers at production cost rather than market price. This fiercely protected business structure offers the NW some of the lowest power rates in the United States. Since Bonneville typically produces more power than it can sell to regional consumers, the BPA sells electricity to other regions at market price. The revenues from these sales are invested back into BPA to provide lower rates for customers. In the ever present "race to the bottom," the BPA provides the NW with a vital asset for attracting residents and businesses.
To be clear, the BPA is a part of the Department of Energy but it is not funded with federal tax dollars.
Despite this fact, President Bush has decided that the NW should supply an estimated $1 billion to the U.S. national debt over the next decade. In his budget proposal, set to take effect October 1st, profits in excess of $500 million will be "skimmed" by the Federal government and put towards the national debt. The BPA expects to make profits in excess of $650 million annually until 2009. Experts estimate this "skimming" will result in rate hikes of 7-10% for NW businesses and citizens.
Last year NW business stomped out another Bush Administration plan to take a bite out of the BPA. The previous plan required the BPA to sell power to customers at average wholesale market rates, rather then the traditional at cost price. However, this year's budget iniative does not require approval from Congress.