Bonneville Power Administration has ended the 2025 fiscal year in the black but will still increase power rates due to drained financial reserves.
BPA, the region’s largest energy producer, ended its fiscal year with net revenues of $74 million, $4 million above its target and a far cry from the -$44 million projected back in February. The federal agency also made its annual $1.2 billion payment to the U.S. Treasury on schedule and in full.
However, its Power Services division ended the year with only 50 days of cash on hand, which is lower than its mandated 60-day threshold, according to a release. As a result, it will seek to collect up to $40 million via a surcharge on power provided to the various community power providers across the Pacific Northwest.
“This year’s below-average water supply presented a significant challenge,” said Chief Financial Officer Tom McDonald in a statement. “Through several strategic actions taken this year and in prior years, however, we minimized the use of financial reserves, ending the year on much stronger footing than we otherwise would have. I’m proud of the work our staff did to mitigate difficult circumstances.”
All the power providers in the Tri-Cities buy and distribute power to customers that originate from BPA’s numerous hydroelectric dams.
2025 was the third straight year of poor hydrological conditions and were what led to the dour financial projections last February. At the time, BPA expected part of its operations to end the year with less than two months’ cash on hand, which would automatically trigger a surcharge on power users to rebuild its financial reserves.
While the agency did end the year in positive territory, it wasn’t enough to shore up all of its reserves. The surcharge, estimated to be 2.2% on wholesale Tier 1 Non-Slice power, is under review and expected to be approved by an administrator on Dec. 15.