BPA Investing Approximately $3 Billion in PacNW Electricity Grid Using Cantwell-Led Authorization

10.15.24

BPA Investing Approximately $3 Billion in PacNW Electricity Grid Using Cantwell-Led Authorization

Cantwell: "Bringing more affordable clean power online is the key to holding down electricity costs."

EDMONDS, WA - The Bonneville Power Administration (BPA) announced today it is moving forward with approximately $3 billion in electricity grid improvement projects that will significantly increase the capacity and reliability of the Pacific Northwest grid and its ability to integrate new energy sources. This announcement adds to the $2 billion in grid upgrades BPA announced in July 2023, both investments enabled by the increased borrowing authority Senator Maria Cantwell (D-WA) included in the 2021 Bipartisan Infrastructure Law.

In Central Washington these upgrades include expanding the capacity of the existing Coulee-Olympia 287 kV circuit to 500 kV, looping in the Columbia line with a new 500 kV substation, and reconductoring some adjacent transmission lines. In Western Washington, BPA will be rebuilding the Schultz-Olympia portion of the Coulee-Olympia by also increasing its capacity from 287 kV to 500 kV, along with installing some necessary new transformers and shunt capacitors. A 500 kV line can typically carry 3-5 times more power than a 287 kV line. The remaining grid investments will occur in Oregon.

"I commend Bonneville for expanding our region's transmission capacity using the tools we gave them in the bipartisan infrastructure bill," said Sen. Cantwell. "Bringing more affordable clean power online is the key to holding down electricity costs. These investments will not only create thousands of construction jobs, they will help revitalize our Pacific Northwest grid so we can take advantage of countless manufacturing, electrification, and emission reduction opportunities."

In July 2021, Sen. Cantwell authored and fought for passage of a bipartisan amendment that eventually resulted in a $10 billion increase in BPA's borrowing authority being included in the Bipartisan Infrastructure Law. The measure allowed BPA to continue to borrow at low-interest rates at no ultimate cost to the taxpayer, so that Bonneville could move forward with the vital projects announced today. Sen. Cantwell's amendment also linked expanded borrowing authority to new financial oversight requirements and opportunities for increased stakeholder engagement.

Without Sen. Cantwell's efforts, the borrowing authority would likely not have been established, industry insiders said at the time.

In July of 2023, BPA announced $2 billion in electricity grid investments. Combined with the proposed BPA announced then, BPA is now working on more than 20 proposed projects with an estimated cost of approximately $5 billion.

This July, Sen. Cantwell joined U.S. Senator Ron Wyden (D-OR) and regional energy stakeholders to discuss technological and policy solutions that will ensure NW ratepayers and our regional economy continue to benefit from abundant, affordable, and reliable clean energy. More than 200 business, government, and non-profit energy professionals attended the event, including BPA Administrator John Hairston. On the day of the event, Sen. Cantwell released a snapshot report highlighting the key energy technology areas that the Pacific Northwest is poised to lead.

Bonneville's generating and transmission portfolio consists primarily of emissions-free sources and is the backbone of an electricity system that is relied on by tens of millions of people throughout the Western United States. The U.S. Department of Energy estimates that the Pacific Northwest will need to add 56% more transmission capacity by 2040. The Northwest Power and Conservation Council's latest report indicates that electricity demand in the Northwest is projected to increase by more than 30% in the next decade, triple the prediction from three years ago.

Sen. Cantwell has been a longtime champion of BPA and the cost-based power it helps provide the Pacific Northwest, and has successfully fended off multipleefforts to privatize BPA or increase regional electricity rates.

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