Manager’s Message – March 2024

Snake River Dams Were Crucial During Extreme Cold in January

At the end of last year, it was announced the federal government and six sovereigns— four federated tribes and the states of Oregon and Washington—had entered a secretly negotiated agreement with intent to breach the lower Snake River dams without input from public power utilities, such as United Electric. United Electric and other public power electric utilities rely on the Pacific Northwest hydro system for wholesale power in accordance with their statutory rights.

Since then, Northwest Utilities has learned more about the details of that agreement, and the outlook does not bode well for customers. The government’s agreement creates uncertainty about Northwest Hydro operations and exposes customers who rely on the clean, reliable, and affordable federal Columbia hydropower system to unnecessary cost risk.

Perhaps most troubling is that the agreement provides a path toward breaching the four lower Snake River dams. These dams represent approximately 12% of the total generation portfolio of the Bonneville Power Administration. They provide an unmatched role of reliable generation during extreme weather conditions.

During the week of January 13-16, the Northwest experienced freezing temperatures that resulted in record-breaking energy demand. The four lower Snake River dams— Lower Granite, Little Goose, Lower Monumental, and Ice Harbor—together produced more than 1,000 megawatts each day, making major contributions to the region’s power needs.

On the other hand, energy output from variable energy resources—such as wind and solar—plummeted that week and provided little to no contribution during critical periods of need. While all generation resources have their positive attributes, removing the four lower Snake River dams does not make sense.

In addition to the operational risk that breaching would bring, the financial risk is even more extreme. Some studies estimate the cost of replacement resources could exceed $6 billion. BPA has estimated this could translate to costs of $415 million to $860 million annually, which could increase power rates by more than 40%.

United Electric and the public power community are seeking ways to protect our investments in the regional hydro system to ensure electricity is affordable and reliable while exploring potential alternative power resources. We are grateful for the support of our local and state officials who see the value of the region’s hydro system, and for each member of United Electric who makes their voice heard when it comes to these important issues.

Thank you,
Michael Darrington
General Manager