PORTLAND — Utilities will get a financial break from the Bonneville Power Administration this year after the nonprofit federal power marketer announced it will suspend its financial reserves surcharge through September 2021.

Purchasing wholesale power from BPA is the largest expense for area utilities, such as Umatilla Electric Cooperative and Hermiston Energy Services. According to UEC’s 2019 annual report, 80% of the consumer-owned utility’s expenses for the year were purchasing power. 

The news release from BPA stated that suspending the surcharge will provide relief for BPA’s customers that totals about $3 million per month.

BPA Administrator and CEO Elliot Mainzer said the decision was “a result of a strong collaborative partnership with our customers.”

“The steps we have taken in recent years to sustain BPA’s financial health make it possible for us to provide some measure of relief to our power customers as they work to address the economic consequences of the pandemic,” he said in a statement.

The financial reserves surcharge is triggered when cash reserves fall below a certain threshold, generating revenue for BPA to replenish the reserves that it can use when revenues fall short of projections.

“Maintaining reserves is a staple of financial strength,” Michelle Manary, BPA Chief Financial Officer, said in a statement. “But given the significant challenges customers are facing, we agree this is not the time to be building up cash reserves.”

BPA is also offering other forms of relief for customers, according to the news release, including payment extensions for utilities facing financial difficulties due to COVID-19.