BPA faces suit over energy market decision that opponents say would raise rates
Five energy and conservation nonprofits are suing the Bonneville Power Administration over its decision to join a new energy trading market, claiming it will raise electricity and transmission costs in Oregon and across the region. The lawsuit, filed Thursday in the 9th U.S. Circuit Court of Appeals, alleges that BPA’s move violates the Northwest Power Act and the National Environmental Policy Act and will also weaken energy grid reliability and reduce access to clean energy. BPA, the Northwest’s largest transmission grid operator, in May announced it would join the Arkansas-based Southwest Power Pool day-ahead market known as “Markets Plus” instead of joining California’s day-ahead market. The Southwest market is smaller with fewer electrical generation resources, experts say. Prior to that decision, Pacific Northwest governors, lawmakers, utility regulators and renewable energy proponents had pressed the BPA for months to reconsider its plans, which the agency initially announced in March.The nonprofits involved in the legal challenge are the Oregon Citizens’ Utility Board, a watchdog organization that advocates for utility customers; national environmental group the Sierra Club; the Montana Environmental Information Center, which promotes clean energy; the Idaho Conservation League, a natural landscape conservation group; and the NW Energy Coalition, which promotes affordable energy policies. The groups, represented by San Francisco-based environmental law nonprofit Earthjustice, want the court to vacate BPA’s decision, require the agency to prepare an environmental impact statement and rescind the financial commitments already made to the Southwest energy market.The BPA’s spokesperson Nick Quinata declined to comment on the pending litigation. Previously, the agency said the Southwest day-ahead market is superior to the California one because it would allow BPA to remain more independent due to its market design and governance structure. BPA, part of the U.S. Department of Energy, markets hydropower from 31 federal dams in the Columbia River Basin and supplies a third of the Northwest’s electricity, most of it to publicly owned rural utilities and electric cooperatives. It also owns and operates 15,000 miles – 75% – of the Northwest’s high-voltage transmission lines. Nearly every electric utility in Oregon benefits from either the clean hydroelectricity or the transmission lines controlled by BPA. BPA’s decision sets the stage for having two energy markets across the West.The lawsuit says that will likely lead to rising prices and blackouts during periods of high electricity demand because of the complexity of transmitting power across boundaries between different utilities and the agreements required for such transfers. Oregon’s two largest utilities, investor-owned Portland General Electric and Pacific Power, have both signed agreements to join California’s day-ahead market instead. They, too, have argued that once BPA leaves the Western market, the available energy they can purchase would diminish and become more expensive, leading to higher prices for customers across the region.Regional electricity providers also may have to construct additional power generation facilities, increase operation of existing facilities or both, to make up for BPA’s participation in a smaller and less efficient energy market, the suit contends. It could also increase reliance on generation resources powered by fossil fuels such as coal or natural gas plants because clean energy isn’t as widely available in the smaller Southwest market, the suit says. The Northwest Power Act, passed by Congress in the 1980s, requires BPA to provide low-cost power to the region while encouraging renewable energy, conservation and protection of fish and wildlife.BPA violated those duties when it chose the Southwest market option, according to the lawsuit. The groups also allege BPA’s market choice could harm fish and wildlife in the Columbia basin because it could alter the operation of the federal hydroelectric dams from which Bonneville markets power. The lawsuit claims BPA failed to comply with federal environmental law by not conducting any environmental impact analysis on impacts to fish and wildlife before making its decision. The Citizens’ Utility Board, a party to the lawsuit, said it hoped the BPA reverses course – otherwise its decision will splinter the West’s electricity markets, costing utility customers billions of dollars at a time when many are already dealing with skyrocketing bills.The board, as well as other critics of BPA’s decision, have pointed to an initiative developing an independent governance structure for California’s day-ahead market.“Oregon is facing overlapping energy challenges: rising utility bills, rising electricity demand from data centers, and stalling progress on meeting clean energy requirements. The last thing we need is for one of our region’s largest clean energy suppliers to reduce ties with the Pacific Northwest,” said the group’s spokesperson Charlotte Shuff. — Gosia Wozniacka covers environmental justice, climate change, the clean energy transition and other environmental issues. Reach her at gwozniacka@oregonian.com or 971-421-3154.If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.
The lawsuit comes after governors, lawmakers, utility regulators and renewable energy proponents in the region unsuccessfully pressed the BPA to reconsider its plans.
Five energy and conservation nonprofits are suing the Bonneville Power Administration over its decision to join a new energy trading market, claiming it will raise electricity and transmission costs in Oregon and across the region.
The lawsuit, filed Thursday in the 9th U.S. Circuit Court of Appeals, alleges that BPA’s move violates the Northwest Power Act and the National Environmental Policy Act and will also weaken energy grid reliability and reduce access to clean energy.
BPA, the Northwest’s largest transmission grid operator, in May announced it would join the Arkansas-based Southwest Power Pool day-ahead market known as “Markets Plus” instead of joining California’s day-ahead market. The Southwest market is smaller with fewer electrical generation resources, experts say.
Prior to that decision, Pacific Northwest governors, lawmakers, utility regulators and renewable energy proponents had pressed the BPA for months to reconsider its plans, which the agency initially announced in March.
The nonprofits involved in the legal challenge are the Oregon Citizens’ Utility Board, a watchdog organization that advocates for utility customers; national environmental group the Sierra Club; the Montana Environmental Information Center, which promotes clean energy; the Idaho Conservation League, a natural landscape conservation group; and the NW Energy Coalition, which promotes affordable energy policies.
The groups, represented by San Francisco-based environmental law nonprofit Earthjustice, want the court to vacate BPA’s decision, require the agency to prepare an environmental impact statement and rescind the financial commitments already made to the Southwest energy market.
The BPA’s spokesperson Nick Quinata declined to comment on the pending litigation. Previously, the agency said the Southwest day-ahead market is superior to the California one because it would allow BPA to remain more independent due to its market design and governance structure.
BPA, part of the U.S. Department of Energy, markets hydropower from 31 federal dams in the Columbia River Basin and supplies a third of the Northwest’s electricity, most of it to publicly owned rural utilities and electric cooperatives. It also owns and operates 15,000 miles – 75% – of the Northwest’s high-voltage transmission lines. Nearly every electric utility in Oregon benefits from either the clean hydroelectricity or the transmission lines controlled by BPA.
BPA’s decision sets the stage for having two energy markets across the West.
The lawsuit says that will likely lead to rising prices and blackouts during periods of high electricity demand because of the complexity of transmitting power across boundaries between different utilities and the agreements required for such transfers.
Oregon’s two largest utilities, investor-owned Portland General Electric and Pacific Power, have both signed agreements to join California’s day-ahead market instead. They, too, have argued that once BPA leaves the Western market, the available energy they can purchase would diminish and become more expensive, leading to higher prices for customers across the region.
Regional electricity providers also may have to construct additional power generation facilities, increase operation of existing facilities or both, to make up for BPA’s participation in a smaller and less efficient energy market, the suit contends. It could also increase reliance on generation resources powered by fossil fuels such as coal or natural gas plants because clean energy isn’t as widely available in the smaller Southwest market, the suit says.
The Northwest Power Act, passed by Congress in the 1980s, requires BPA to provide low-cost power to the region while encouraging renewable energy, conservation and protection of fish and wildlife.
BPA violated those duties when it chose the Southwest market option, according to the lawsuit.
The groups also allege BPA’s market choice could harm fish and wildlife in the Columbia basin because it could alter the operation of the federal hydroelectric dams from which Bonneville markets power.
The lawsuit claims BPA failed to comply with federal environmental law by not conducting any environmental impact analysis on impacts to fish and wildlife before making its decision.
The Citizens’ Utility Board, a party to the lawsuit, said it hoped the BPA reverses course – otherwise its decision will splinter the West’s electricity markets, costing utility customers billions of dollars at a time when many are already dealing with skyrocketing bills.
The board, as well as other critics of BPA’s decision, have pointed to an initiative developing an independent governance structure for California’s day-ahead market.
“Oregon is facing overlapping energy challenges: rising utility bills, rising electricity demand from data centers, and stalling progress on meeting clean energy requirements. The last thing we need is for one of our region’s largest clean energy suppliers to reduce ties with the Pacific Northwest,” said the group’s spokesperson Charlotte Shuff.
— Gosia Wozniacka covers environmental justice, climate change, the clean energy transition and other environmental issues. Reach her at gwozniacka@oregonian.com or 971-421-3154.
If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.