Lawsuit Could Mean Higher Power Costs

Last year, under direction from the Governor, the State of Oregon resumed its role as a lead plaintiff in a lawsuit that seeks to force the Bonneville Power Administration (BPA) to generate less electricity by “spilling” more water over its hydroelectric dams, or potentially breaching them altogether. In early 2026, a federal court in Portland issued a preliminary injunction (an order put in place while the case is still being decided) ordering increased spill at several dams in the Columbia and Snake River system. Spill refers to water flowing over a dam rather than through turbines that generate electricity. When that water bypasses the turbines, less hydropower is produced.

Because Central Lincoln PUD purchases all of its electricity from BPA, changes affecting the federal hydropower system directly influence the cost of the electricity they provide to customers. Traditionally, this has provided strong value, with the federal hydropower system supporting affordable rates, high reliability, and low carbon impacts. However, due to the State of Oregon’s action in the lawsuit, public power consumers — including Central Lincoln customers — will not be shielded from the negative financial impacts.

Early estimates show the ruling will add approximately $300 million in costs to consumer-owned utilities across the Northwest over the next two and a half years. Central Lincoln’s share is estimated at about $6.5 million. When less hydropower is available, BPA must purchase replacement power from the market to meet its obligations. Market power is more expensive, often twice the cost of hydropower, and typically comes from sources with a higher carbon footprint.

BPA’s operating revenue comes from the utilities that purchase power from it. As a result, these increased costs will be reflected in the wholesale power rates utilities pay — and because Central Lincoln is a nonprofit, community-owned utility, ultimately in customer electric rates. These changes are the result of federal court rulings and regional policy decisions that determine how the Columbia River system is operated. Unfortunately, Central Lincoln does not have a role in those decisions.

In fact, along with the other 34 community-owned utilities in Oregon, Central Lincoln has consistently supported efforts to encourage productive dialogue with the Governor’s office rather than continued reliance on the current lawsuit process. Despite consistent efforts by public power providers, the state has been unwilling to engage in that discussion or to consider solutions outside of the courtroom.

While Central Lincoln does not believe a lawsuit is the answer, your electric utility remains committed to being good stewards of the environment. For decades, electric utility customers across the Northwest have helped fund efforts to protect and restore salmon and steelhead in the Columbia River Basin. Today, approximately 25% of BPA’s power costs (about $700 million annually) go toward fish and wildlife programs, including fish passage, habitat restoration, and related efforts. These costs are paid by customers through their electric bills.

Central Lincoln customers alone contribute about $12.5 million each year to support these programs, which represents roughly 10% of your power bill. These investments have contributed to measurable improvements in salmon and steelhead returns over time. In 2024, more than 1.7 million adult salmon and steelhead returned to the Columbia River system — about 370% more than when the first federal dams began operating in 1938.

In the coming months, BPA will be working with utilities to determine how to bill the costs associated with the court’s order and how those costs will be passed on to customers. Central Lincoln will continue operating as efficiently as possible, but these cost increases are driven by the State of Oregon’s lawsuit and are outside of their control.

If you would like to learn more or share your perspective on this issue, visit the Northwest Public Power Association’s website.