McMinnVille Water & Light reports BPA price shock, transformer purchases and facility plans

McMinnVille Water & Light General Manager John Dietz briefed the council on capital and operational work, saying the utility faces higher power and transmission costs from the Bonneville Power Administration (BPA), is buying three replacement substation transformers, and is advancing a new operations facility while continuing water‑main replacements and transmission pole upgrades.

Dietz told the council that BPA’s upcoming rate change will raise power costs by about 8 percent and transmission costs by about 18 percent starting Oct. 1; Water & Light staff estimate this will increase the utility’s wholesale power bill by roughly $3 million to $4 million annually. Dietz said BPA purchases represent about 70 percent of the electric system’s supply cost and that total BPA‑related expenditures are approximately $32–$34 million of a roughly $46 million total supply cost figure discussed in the presentation.

To respond to equipment aging and resilience…