The electric utility industry is changing. In the past, your non-profit, or "consumer-owned” utility could keep rates stable and power available for Northwest consumers. Now, the effects of California’s failed deregulation effort are causing rates to skyrocket and power supply shortages for the Northwest. That’s why we need your help.

People Power is a grassroots movement of consumers from non-profit utilities who support the goal of making sure power is affordable and available here at home. Outside interests want our affordable power, which drives up prices for all of us in the process.

By joining People Power, you will learn more about benefits you receive from the Columbia River Power System and the issues we face.

From time to time we will ask you to contact legislators who make decisions affecting these benefits, and ultimately your wallet.

Please join People Power today by signing up on line at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it with your name, address and email address. You must be a Ravalli Electric Co-op member.

Or if you are served by another public power provider in the Pacific Northwest, sign up at www.pplpwr.org.

Benefits

Consumer-owned utilities like Ravalli Electric Co-op are owned by the people they serve. Joining People Power protects your interests, as well as:

• Helps Ravalli Electric Co-op keep rates affordable.
• Protects our power supply in the Northwest.
• Provides you with updates on "preference" and issues affecting your utility.

Your Role

It was people who started the movement for consumer-owned utilities. It must be People Power again that fights for our rights to affordable and available power in the future. As a member, we will ask you to:

• Learn about the benefits of the Columbia River Power System.
• Access updates through the People Power web site.
• Contact your legislators when needed.

Preference & the Columbia River Power System

The federal government built hydroelectric dams along the Columbia River to generate power for consumer-owned utilities like yours in the Northwest. Our government made sure that these utilities would have the first right, or "preference," to purchase this power through the Bonneville Power Administration (BPA). In return for preference status, Ravalli Electric Co-op shares the benefits of the Columbia River Power System by reselling this power to you at non-profit rates.

The future of the Columbia River Power System and our right to preference is uncertain. For a variety of reasons, BPA power is in high demand as energy markets change and states deregulate. Our once abundant power supply is now limited and attacked by other industries, for-profit utilities, as well as politicians from other states. We need your help to keep the benefits of the Columbia River Power System for consumers of non-profit utilities in the Northwest.

What is Public Power?

Ravalli Electric Co-op is part of a larger, Public Power family. Public Power is an American tradition that works. More than 2,000 communities across the United States have chosen to create their own consumer-owned, non-profit utilities. Public Power provides electricity for approximately 35 million Americans, or about 25% of all electricity users. There are 240 private, for-profit companies that serve the rest.

Consumer-owned utilities in the Public Power family are owned and governed by the communities they serve. They are united behind one goal - to provide affordable, reliable non-profit electricity to consumers. This is particularly important as utilities attempt to deal with the changing markets and the current energy crisis.

The Public Power Family

There are four types of consumer-owned utilities: rural electric cooperatives, Public or People's Utility Districts, municipal systems, and mutual power companies. All are non-profit utilities committed to providing the highest level of service to consumers.

• Rural Electric Cooperatives (co-ops) began bringing power to rural communities with the signing of the Rural Electrification Act by President Franklin Roosevelt. A locally-elected board of directors regulate co-ops by setting rates and policies for their utility. Board members are elected at a co-op's annual meeting.
• Public or People's Utility Districts (PUDs) are municipal corporations that serve a defined area. PUDs are regulated by commissioners or board members who live within the PUD service territory, and are elected on the state's general election ballot. PUDs are unique to the states of Washington and Oregon. Washington uses the word Public, while Oregon calls them People's Utility Districts.
• Municipal Systems (munis) are governmental entities formed to provide non-profit electric service. Their service territory is usually a city and its adjacent suburbs. Munis are regulated by city councils, or special utility boards that hold regularly scheduled business meetings. Council or board members are elected on the general election ballot.
• Mutual Power Companies (mutuals) began approximately 75 years ago. Like co-ops, mutuals are regulated by a local board of directors elected at an annual meeting. Mutuals are self-financed and not connected to any federal government programs.

Benefits of Public Power

Consumer-owned utilities deliver substantial benefits to the people and communities they serve. Take a look!

• Non-Profit Rates. All consumer-owned utilities sell power at non-profit rates. This is important to keep in mind as energy markets change and consumers face rate increases. Generally, Public Power customers pay electricity rates that are lower than those paid by consumers of for-profit utilities.
• Local Control. Consumer-owned utilities are managed by the people they serve. You have the opportunity to vote for commissioners, board or council members, who set rates and policies for your electric company. Who knows what is better for the community than the people living in it?
• Commitment to Community. Consumer-owned utilities work in partnership with the people and communities they serve. Through the public decision-making process, they develop policies and services that are responsive to community needs. They provide jobs, tax revenue, economic development, and other programs that support and strengthen the community.

Our power supply

Many consumers don't know where the electricity comes from that powers their homes and offices. It's important to understand the history and unique relationship between the nation's rivers, the Bonneville Power Administration, and your consumer-owned utility.

This relationship gives your utility the first right or "preference" to purchase cost-based power generated from rivers in the Columbia Basin. Consumers of Public Power utilities benefit from this relationship through the non-profit rates they pay for this electricity.

Many people take for granted that affordable power will be there when they need it. The current energy crisis on the west coast is a reminder of how important affordable and available power is to everyday life. As energy markets change, preference power is at risk. Customers of consumer-owned utilities may face higher electric rates and power supply shortages.

The Preference Clause

Teddy Roosevelt was the first president to recognize our nation's rivers as a public resource. President Roosevelt and the U.S. Congress said that consumer-owned utilities should have the first right, or "preference," to purchase electricity from federal dams built on these waterways. This preference clause was first spelled out in the Reclamation Act of 1906.

Thirty years later, President Franklin D. Roosevelt made Teddy Roosevelt's vision of affordable federal hydropower a reality. The federal government built a system of multi-purpose dams on American rivers to generate electricity for the public benefit. The intent behind the federal power program was that public resources should benefit the public - not private individuals.

Columbia River Power System

The Columbia River Power System refers to 31 dams built on different rivers located throughout the Columbia Basin. Hydro projects also help with flood control, irrigation, recreation, and river navigation.

These hydroelectric dams generate power for consumer-owned utilities in the Pacific Northwest. Customers of consumer-owned utilities receive a significant benefit from the Columbia River Power System in the form of non-profit rates.

Over 50 years, customers of consumer-owned utilities have been paying for the dams through their electric rates. Unlike many federal projects, payment for these dams has been made on time and in full, including interest charges.

The Bonneville Power Administration

The Bonneville Power Administration (BPA) is the federal power marketing administration (PMA) for the Pacific Northwest. There are four PMAs in the United States that sell the power generated by federal dams. BPA sells power generated from the Columbia River Power System to consumer-owned utilities at "cost-based" rates.

A cost-based rate means that BPA charges its customers only what it costs them to generate the power. Cost-based rates are usually less than market rates, which are affected by the amount of supply available at any given time.

As preference customers, most consumer-owned utilities receive all or part of their power from BPA. In exchange, these same utilities resell the power to their consumers for what it costs to deliver. Non-profit rates are one of the most significant benefits consumers receive from the Columbia River Power System through BPA and consumer-owned utilities.

Cost-based power is more affordable than current market rates. As a result, special interest groups are trying to eliminate preference, and get access to more federal hydropower. This means less power and higher rates for customers of consumer-owned utilities.