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Comprehensive review archive
No. 28: December 10, 1996
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Regional Review Bulletin Archive Steering Committee Papers
BULLETIN is a publication providing access to information on the 1996 Comprehensive Review of the Northwest Energy System.
(1) BULLETIN ADVISORY :: The final Regional Review Meeting is Thursday, December 12 in Spokane (Ridpath Hotel).
(2) THE FINAL TEXT :: of the Steering Committee Report to the governors is available at Document Access for reading and download.
(3) SUMMARY :: of the December 5 Steering Committee meeting at Airport Sheraton in Portland, Oregon. The Comprehensive Energy Review Steering Committee approved, on a 13-1 vote, a set of recommendations to the governors aimed at restructuring the Northwest energy system. Rick Applegate voted no. The ex-officio members (four governors' reps and BPA) and the committee chair did not vote. All members were present at some time during the meeting; there were approximately 40 audience members.
PUBLIC PURPOSES: ONE MORE TIME -- The committee recommended that each state enact legislation that establishes a minimum standard for investments in conservation, renewable resources, and low-income energy services and that the minimum annual investment per state be based on a target of 3 percent of 1995 electric service revenues (estimated to be $210 million). The committee also included a statement that a revenue-based approach may be inequitable in some instances, such as low-density systems, and that in such cases alternative approaches may be employed, provided the overall target is met. The report urges public power systems to follow through on their commitments to public purposes and states that the committee's recommendations provide for maximum local control while establishing a minimum standard.
RETAIL ACCESS BONES CONNECTED TO THE PUBLIC PURPOSES BONES -- The committee embraced the principle of linkage between retail access and public purposes. It adopted language recommending that beginning no later than July 1, 1999, all distribution utilities will offer retail market access for those customers that desire direct market access, but noted in the report that some states may authorize transition plans or phase-in of access. Full implementation of public purposes program recommendations would be linked to open access recommendations in those specific cases.
TRANSMISSION: A CONGRESSIONAL SLUG-OUT? -- Rick Applegate said he could not support Bob Gannon's proposal to ensure that transmission funds not be used to support generation costs, once BPA's generation and transmission are separated. I can't support the argument that fish is a non-transmission cost that rests only with the generation system, Applegate said. Gannon's amendment was adopted. Committee members predicted the issue would likely be "slugged out" in Congress.
F&W ACCOUNTABILITY AT THE COUNCIL -- Bill Drummond proposed language to provide greater accountability for fish and wildlife (F&W) expenditures and to hold the Northwest Power Planning Council accountable to the governors for expenditures approved and made. The committee included the amendment in the river governance section of the report, but deleted references to lack of accountability in the past.
THE LAST FEDERAL POWER MARKETING HURRAH -- The committee agreed to language on federal power subscriptions that reserves the first phase of the process for public utilities to subscribe up to the average of the contractual entitlements of the highest two consecutive years of the 1997-2001 contract period, plus provision for minor load growth of small, full-requirements utilities representing no more than 1,000 average megawatts of BPA load. The issue of IOUs reselling power from the federal system was resolved with language that says subscribers may resell the power in cases of loss of load "and/or to the extent allowed by existing law."
The committee said implementation of its recommendations should dramatically reduce any risk that BPA would need to seek stranded cost recovery, but in the event unmitigable stranded costs do occur, a mechanism to recover those costs is needed. The committee approved setting up a Customer Advisory Committee as an ongoing entity to review BPA budgets, costs, and rate setting, and an oversight board, the Northwest Energy Review Transition Board, as a transition entity. The Transition Board would oversee the subscription process, review BPA's role in the competitive market, and assist the region in responding to federal legislation.
PREAMBLE TO THE VOTE -- The last time we did a major regional power negotiation, those who worked within the regional consensus process were winners, and those who worked outside of it were losers, Roy Hemmingway said. The only gain you will get by working outside the process will be to make sure the entire effort fails, he said. Hemmingway's preamble language stated that the recommendations represent a consensus "achieved only by compromise and sacrifice by each of the interests represented on the committee." After the committee agreed on wording for the preamble, Chuck Collins called for the vote. It was 13 for and one against. Applegate said he was dissenting because he differed with the report on important and contentious issues.
A detailed account of the Steering Committee meeting may be accessed in the Review Document Access section.
(4) DOCUMENT ACCESS :: All general documents associated with the Comprehensive Review are available in full text at this website on the Review Document Access page, which is organized by month. If you are reading Bulletin in hard copy and want World Wide Web access, the URL is http://newsdata.com/enernet/review/bulletin.html.
(5) FEEDBACK :: You may comment generally on the Review, or specifically on review documents, by sending an e-mail to feedback@newsdata.com. The comment will be e-mailed to the Review website and will become part of the official record. For fax and mail comments, fax Comprehensive Review, 503/795-3370 or write to Comprehensive Review, Northwest Power Planning Council, 851 SW Sixth Avenue, Suite 1100, Portland, OR 97204-1348.
BULLETIN is published online and off by Energy NewsData with staff cooperation and funding support from the Northwest Power Planning Council and the Review itself. Reports on meetings are prepared by Resource Writers Inc.