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Ashland hopes new power rates won�t shock too much By SARA MURPHY ASHLAND � City officials are keeping a watchful eye on volatile electricity prices to see how rate increases expected this fall will affect Ashland customers. The Ashland municipal electric utility purchases 99 percent of its electricity from the Bonneville Power Administration, which is expected to adjust its wholesale electricity rates Oct. 1. "We won�t know what our (wholesale) rates are going to be until July," said Dick Wanderscheid, the city�s administrative services director. "We know they�re going to go up." BPA representative John Lebens is scheduled to meet Tuesday with the City Council to present the city with an update, Wanderscheid said. The meeting will be held at 7 p.m. in the Council Chambers, 1175 E. Main St. Wanderscheid said the city�s current contract and wholesale electricity rates are valid until Oct. 1. Earlier this year, the city and BPA had negotiated a new five-year contract that included a 16 percent increase in wholesale electricity prices, but actual wholesale rates are likely to be much higher. "It really doesn�t do a lot of good at this point to conjecture about what the rates are going to be because no one knows," he said. BPA has warned customers that failed deregulation in California and a relatively dry winter have caused wholesale electricity prices on the West Coast to fluctuate � and to soar. Last week the BPA announced it wants the ability to adjust rates every six months. Rates that take effect Oct. 1 were expected to remain fixed for five years. "(BPA rate increases) could result in a significant spike of the retail rate," said City Administrator Greg Scoles. The BPA�s wholesale electricity rate makes up 40 to 45 percent of the city�s retail rate, which also includes transmission and personnel costs. The city�s retail rate increase likely would be about half as much as the BPA raises its prices. For example, a 10 percent increase by BPA typically translates into 5 percent retail boost. A new retail rate would be set by the City Council after BPA determines its wholesale rate. Reach Ashland bureau reporter Sara Murphy at 482-4655, or e-mail [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.