Manager’s Message – April 2025

Over the past month, headlines have been dominated by federal government spending and job cuts by the Department of Government Efficiency. Oregon Public Broadcasting and The Oregonian were the first to widely report that Bonneville Power Administration (BPA), a federal agency, was among those impacted.

With BPA marketing wholesale electricity from 31 federal hydropower projects and controlling approximately 75% of the Pacific Northwest’s power transmission system, this naturally raises questions about how electric utilities and rural Oregonians may be affected by these cuts. We have not heard from BPA directly regarding the estimated impact at the time of publication. However, there have been multiple reports of job reductions and rehires at the agency.

While BPA’s workforce is made up of government employees, the agency is self-funded through the rates charged to utility customers, including Lane Electric Cooperative. It is required to cover all its costs through the sale of electricity and transmission services. With no federal appropriations, these workforce reductions will not have an impact on the federal deficit.

Another area to watch is the outcome of the agency’s current rate proceeding. This summer, BPA will issue its Record of Decision establishing power and transmission rates for its utility customers, including Lane Electric, for the 2026 to 2028 rate period. These rates must receive final approval from the Federal Energy Regulatory Commission.

We continue to actively monitor the effects of BPA’s workforce reductions and rate proceedings and engage with industry partners and Oregon’s congressional delegation as required.

It’s reassuring to hear BPA has been granted the authority by the U.S. Department of Energy to bring back at least 89 employees and granted an exemption from the Office of Personnel Management’s reduction-in-force order, potentially saving the agency from even deeper cuts. This is some positive news for Lane Electric members who are concerned about the reliability of the electric grid.

General Manager Dave Markham