Commissioners Corner – new Bonneville administrator faces tall order

Published 1:30 am Tuesday, August 11, 2026

Last month, Travis Kavula was sworn in as the 17th administrator of the Bonneville Power Administration (BPA), the federal agency responsible for marketing the power that Northwest utilities like Grays Harbor PUD provide to our customers.

It’s a big job that involves balancing federal regulations, spending weeks on the road, and serving as an advocate for the federal power system. He takes on these responsibilities during a transformative time for the electric industry, one marked by grid expansion, load growth, new energy markets, and new federal regulations.

The PUD’s relationship with Bonneville dates back to the 1940s, and it has been a beneficial partnership for our utility and our customers. BPA rates are among the lowest in the country and are one of the reasons our 2026 budget did not include an increase in customer electric rates. Last year, the PUD signed a new 20-year contract with BPA that will carry the utility through its 105th year of service.

Among other changes, the new contract moves the PUD from a Slice/Block customer to a Load Following customer. Under the previous arrangement, the PUD purchased a fixed percentage of power created by federal generators. If our customers used less electricity than expected, the utility could sell the surplus into the wholesale market. While that offered opportunities when market prices were favorable, it also carried the risk of selling power for less than we paid for it when prices dropped.

Under the Load Following contract, the PUD purchases only the power our customers need. I believe this is a positive change because it provides greater certainty when developing budgets and helps keep customer rates as low as practical.

The Load Following agreement also positions the PUD well for future economic development. If a new business with significant energy needs chooses to locate in Grays Harbor, the agreement provides a more straightforward path for serving that customer. While increased demand could move the PUD into a different BPA rate tier, I believe this approach better supports economic growth while maintaining flexibility for the future.

Today, Bonneville has sufficient resources to meet our needs, but that may not always be the case. Homes are using more electricity than ever before, electric vehicle adoption continues to grow, and new industries — particularly data centers — are creating unprecedented demand for power.

In the not-too-distant future, regional demand could exceed the amount of available generation. That is one reason I am pleased the PUD not only collaborates closely with Bonneville, but also engages with organizations that advocate for responsible energy policies and advance the development of the next generation of energy resources.

One of those organizations is Energy Northwest, headquartered in the Tri-Cities. Already the operator of the Northwest’s only commercial nuclear power plant, the Columbia Generating Station, Energy Northwest is exploring technologies that could help meet future energy demand. These include small modular nuclear reactors, geothermal generation, and an innovative technology known as Advanced Rail Energy Storage. This concept uses gravity much like a grandfather clock. Rail cars are pulled uphill when excess electricity is available and then allowed to roll downhill when energy is needed. Their regenerative braking systems generate electricity that can be stored or delivered back to the grid during periods of high demand.

Along with solar power, wind generation, and pumped-storage hydropower, these emerging technologies may help ensure agencies like Bonneville have enough reliable power to meet the region’s growing energy needs.

As we move through the first year of our new BPA contract, I continue to be impressed by how much our partnership has grown over nearly 80 years. The hydroelectric system that helped shape the Pacific Northwest has been joined by nuclear generation, and in the years ahead, additional sources of reliable energy will become part of that mix.

The transformative era Administrator Kavula is stepping into will undoubtedly present challenges, but as we approach a century of partnership with the BPA, I am confident he will continue the work of his 16 predecessors by helping provide affordable, reliable power to the people of the Pacific Northwest.