BPA Says Hydro In U.S. Northwest Adequate

"We don't think there will be any problems meeting our energy needs," said Mike Hansen, a spokesman for Bonneville Power Administration (BPA), the Portland, Oregon-based federal agency that markets energy from the region's giant dams.

Hydro power accounts for about 75 percent of the electricity used in Northwest states like Washington, Oregon and Idaho.

"The region's runoff is lower compared with last year. But the flip side is that demand is down because of the economic downturn and that is making it easier to meet our energy demand," he said.

Hansen said water conditions in the region averaged about 105 million acre feet per year over the past 30 years, generating some 7,000 megawatts a year.

This year the region is likely to end the so-called hydro season this month at around 90 million acre feet of water, below last year's 103 million acre feet but well above the 58 million acre feet seen in 2001, when the region was hit by its worst drought in 50 years.

In mid-June, BPA said improved Northwest hydro conditions played a role behind a drop in a proposed rate increase it initially announced in February due in part to the agency's poor fiscal outlook.

BPA said wholesale power rates it charges its utility-based customers could rise by about 5 percent from current rates over the next three years instead of the 15 percent announced in February.

The rate increase, if approved by the Federal Energy Regulation Commission, would take hold Oct. 1. Rates are reviewed every six months to take into account changes in market conditions, such as hydro electric output.

New power supplies have also added to the Northwest's relatively stable power supplies.

In January, the Northwest Power Planning Council said the region had added about 3,200 megawatts of new generation since January 2000 when power prices rose sharply amid California's energy problems and the region's drought shortly after.