What You Need to Know About Rates

Columbia REA will implement a rate adjustment in January 2027

Columbia REA is a not-for-profit, member-owned cooperative committed to providing safe, reliable and affordable electricity to our members. As a cooperative, we do not set rates to generate a profit. Every rate decision is made with our members in mind, balancing transparency and cost control with the investments needed to keep your electric system strong and dependable for years to come.

Unfortunately, we are in a period of accelerated cost increases on multiple fronts. Beginning in January 2027, the Bonneville Power Administration (BPA)—which supplies the vast majority of Columbia REA’s power—will implement a cost increase to what we pay them for the power you receive to your homes, farms and businesses. This adjustment is due to increased costs incurred by BPA that are being passed along to their customers. In turn, Columbia REA will need to adjust what our members pay as well.

Why Are Rates Increasing?

It’s important to note that this rate adjustment is not an increase in the cost of BPA Tier 1 power. That rate was set in 2025 and will remain steady through 2028. This increase is due to rising operational and resource costs that are putting pressure on BPA, as well as Columbia REA. There are three primary factors that have created the need to implement a rate adjustment:

1. Increased water spill
The primary factor stems from a federal court order requiring BPA to increase the water spill over the dams on the Columbia and Snake rivers. The additional spill sends more water over dam spillways, instead of through turbines, to help salmon migrate downstream. Columbia REA fully supports efforts to maintain healthy fish populations. However, water that bypasses turbines does not generate electricity. With less hydropower available, BPA is drawing on financial reserves to buy additional electricity on the open market.

2. BPA financial reserves
BPA’s Financial Reserves Policy requires it to maintain enough reserves to cover unexpected expenses or revenue shortfalls. The necessary use of financial reserves to offset reduced electricity generation, and therefore reduced revenue, due to the federally mandated additional spill of water has created a negative revenue situation. BPA is asking its customers to make up part of that deficit.

3. Inflation
The third factor is painfully familiar to all of us. Columbia REA continues to face inflationary pressure across nearly every sector of our operating costs. From fuel to power our vehicles, to the infrastructure required to maintain our substations and transformers, to the wire that runs over our heads and under our feet that delivers electricity to you, the price of everything continues to go up.

A Quick Refresher on Power Rates and Sources

Tier 1 power is the most affordable source of electricity and makes up the majority of Columbia REA’s power supply. It comes primarily from BPA’s existing federal resources, like hydropower from the Columbia-Snake River System and nuclear energy from the Columbia Generating Station.

Tier 2 power is used when a utility needs more electricity than its allocated Tier 1 amount. Tier 2 power can be purchased from BPA or it can be purchased from the energy market. Columbia REA remains committed to clean, renewable energy sources as much as possible when shopping for Tier 2 market energy, focusing on wind, solar, and nuclear. The cost of those Tier 2 resources continues to rise, and access to less expensive resources such as natural gas are dwindling, not to mention environmentally undesirable and even legally problematic due to state regulations.

This is one reason why we talk so much about energy-efficiency programs and rebates and other ways to use less energy in your homes and businesses.The less electricity Columbia REA members use, the less Tier 2 power Columbia REA needs to purchase. Our energy efficiency team will continue to help members save on energy costs through incentives for efficiency upgrades to homes and businesses—and we will guide members through the process from start to finish for the most energy savings.

Rate Impact on Columbia REA

Broader economic conditions— particularly inflation—have significantly increased the cost of providing electricity. Rising prices for fuel, labor and other essential services continue to drive up Columbia REA’s operational expenses, despite our ongoing efforts to manage costs. In addition, the prices of critical infrastructure components have surged in recent years due to supply chain disruptions, material shortages and increased nationwide demand. Overall, the cost of all materials and equipment that Columbia REA purchases to keep your system safe and reliable has gone up about 100% since 2019. Columbia REA will continue to focus on system upgrades, safety and wildfire mitigation. We must keep the health of our system in the best shape possible as we remain committed to maintaining the highest safety standards, minimizing outages, and avoiding potentially even more costly repairs.

What Does This Mean for Our Members?

While we haven’t received word yet on the exact amount of the increase that will come from BPA, we anticipate the increase to your Columbia REA bill to be in the 8.5% range, across all rate classes; some rate classes may be a bit higher, some will be lower. This increase also includes a slight rate adjustment due to increased costs that we are facing here at Columbia REA as detailed above. This adjustment will take effect in January but won’t appear on your bill until your February 2027 billing statement. Despite all of this, BPA’s electricity, and your rates, sourced primarily from clean, renewable hydropower, remains one of the most affordable and reliable energy sources in the nation. According to the U.S. Energy Information Administration, the national average residential electricity rate in 2026 is between 18.05 and 18.34 cents per kilowatt-hour. In comparison, Washington state’s average is 14.71 cents, and Columbia REA members pay, on average, just 10.1 cents per kWh, 45% less than the national average. This places Columbia REA among the most affordable electric utilities in the country. We know every dollar matters, and we’ll keep looking for ways to hold down costs while making the right investments for our system and for the communities we serve. We work hard to earn and maintain your trust. We will always put members first, and that means you can count on us to continue delivering the safe, reliable service you’ve come to expect.

What You Can Do

Stay informed: Watch for announcements about rate changes.

Ask questions: We’re here to help you understand your bill and how changes affect your cost of electricity.

Take advantage of energy-saving tools: From rebates to energy audits, we offer resources to help you save money.

Go to columbiarea.coop and click on “Energy Efficiency.”