Energy BPA's future role

 
BPA's future role: Fact sheet (Q&A)

How will proposals be evaluated?

What are the opportunities for public involvement?
 

Why consider these issues now when 2006 is still four years away?

We see four important reasons to start these discussions now:

1. The direct-service industries (DSIs) in the region only have a five-year commitment for power from BPA. They have asked for certainty regarding their sources of power after 2006 so that they can make investment decisions regarding their plants. These companies see their access to cost-based federal power as an important economic factor in operating these plants.
2. A proposal for marketing the power from the FCRPS and modifying BPA's role has been developed by a group of the region's public and private utilities to try to settle a lawsuit that challenges the Residential Exchange Settlement Agreement that provides benefits to the residential and small farm customers of the region's investor-owned utilities (IOUs). It is important that any settlement of this nature fits into the region's long-term vision of BPA's role. Note that BPA must decide the relative amounts of power or financial benefits that the IOUs will receive under their existing subscription settlement agreements.
3. Some utilities and independent power producers wish to make decisions soon regarding investments in existing and new power plants, which could require capital funding. This capital is needed to ensure that the region has the necessary power supply to support a healthy economy. However, capital often can be difficult to secure without clear evidence of future customers and the ability to reach them. These entities would like an understanding of what power supply role BPA will play in the wholesale marketplace after 2006.
4. If Bonneville must supply power for loads greater than the capability of the existing federal system after 2006, it will need to begin making arrangements for augmenting the federal system soon.

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How will proposals be evaluated?

While it is important to consider your proposal or comments on the value of the FCRPS, it is also important to understand how your proposal meets the five principles that BPA established when approached several months ago by customers on these subjects. BPA considers the following five principles to be crucial for the successful management of benefits from the FCRPS. Therefore, they will be among the most important factors used in evaluating proposals and comments.

The five principles are as follows:

1. Preserve or enhance all the long-term and diverse benefits of the FCRPS for the region
2. Policy outcomes must be enduring under a range of political and economic conditions
3. there should be no additional risks for U.S. taxpayers and the Federal Treasury
4. Approaches or policy options should not require legislative changes and should minimize legal risks
5. There should be clarity regarding BPA's load obligations after 2006. In addition, proposals should be consistent with BPA's organic statutes and legal obligations, including its responsibilities for conservation, renewable resources, and fish and wildlife, BPA's responsibility to make its payments to the Treasury on time and in full, and BPA's responsibility to maintain the reliability of the Pacific Northwest power grid.

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What are the opportunities for public involvement?

The comment period and public meetings for Phase I completed in October 2002. See the home page for links to comments/proposals and meeting notes.

After the conclusion of the initial comment period, BPA and the Council will resume their respective and independent responsibilities regarding these issues. BPA will use the proposals and comments to develop a draft policy proposal to be presented to the region for public comment in preparation for a Final Policy and Administrator's Record of Decision. The Council will conduct its own independent analysis and make recommendations to BPA and the region.

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