Officials with the Bonneville Power Administration say they no longer expect to raise rates due to too low financial reserves. 

Higher than expected revenues, lower expenses and debt management now have the agency forecasting net revenues of $210 million for the current fiscal year in its second quarter report. That’s $70 million above targets and a sharp U-turn from the minus $44 million forecasted in January. 

As a result, BPA now expects to end the fiscal year with more than 100 days of cash on hand, more than a month above a required 60-day threshold. 

“While BPA is cautiously optimistic, it is still early in the year and questions remain about the shape of the (winter) runoff,” the agency said in a release. “BPA will continue to manage this uncertainty by following our financial plan and using the liquidity tools it provides.” 

BPA provides more than a quarter of the energy used in the Pacific Northwest. Utilities serving the Tri-Cities and its surrounding communities receive anywhere from half to more than 80% of their power from the federal agency, and the rates they charge their customers are directly affected by the rates they pay to BPA for its power. 

The agency earlier in 2025 blamed dry weather and resulting low stream flows for a dire financial forecast. Its Power Services division was projected to end the year with 50 days cash on hand at the time. 

That would have triggered the financial reserves policy surcharge, authorizing it to increase rates to collect up to $40 million per year to recover its reserves, or “the amount needed to fully recover financial reserves up to the applicable business line lower threshold.” 

Power Services’ net revenue is now forecast to come in at $195 million, $118 million above target, driven by higher power prices and debt management efforts.  

Transmission Services’ revenue is forecast to be $18 million above target due to increased revenues and decreased expenses.