New rates will affect local utilities depending on power intake and service type they procure, while the utilities will ultimately decide the level of impact on residents and individual businesses.

BPA says the tariff hikes will help improve the transmission systems that power Northwest homes and businesses.

The rate increase is driven by higher costs to maintain the federal hydroelectric system, including repairs to major powerhouses.

BPA acting administrator Elliot Mainzer said, "We recognize that rate increases are very challenging for customers, especially for those still in the throes of a slow economy."

"But the increases are necessary so that we can preserve the long-term value of carbon-free federal generation and support the reliability of the high-voltage transmission lines that serve Northwest public utilities," Mainzer added.

An average of $20m per year in financial reserves will be used to compensate the rate increase.

Power and transmission rates are developed every two years through BPA’s public rate-setting process that began in November 2012.

The final rate proposal will be filed with the Federal Energy Regulatory Commission in late July for a 60 day review.