Council warned BPA wholesale rate increase could push city utility costs higher

Brandon Allen, the city’s finance director, told the council the city is likely to face a BPA wholesale power increase in early 2027 tied to spill‑related litigation and changes in market options. “We are likely very likely to get a rate increase from BPA at the end of this year…probably around a 6% increase in wholesale,” Allen said, adding that wholesale power comprises roughly 60% of energy services costs.

Allen emphasized the uncertainty: staff have not received final BPA notices, so the potential wholesale increase is projected but not yet budgeted. He said the city would likely pass on wholesale increases to ratepayers as appropriate and would continue monitoring Climate Commitment Act impacts and SCADA/substation work as factors in energy services costs.