Draft Council Recommendations for the Future Role of the Bonneville Power
Administration in Power Supply
April 9, 2004 | document 2004-2
Related links: press release
[This document has been replaced by final version
2004-5]
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Over the past several years the Bonneville Power Administration has
faced periods of instability that have threatened its financial well being
and that of its customers; hampered its ability to meet its obligations,
including those to the U.S. Treasury; impeded the development of needed
resources; and damaged the economy of the Northwest.
The conclusion reached in several processes in recent years is that
these problems have their roots in the ways in which Bonneville's role has
been traditionally carried out and the uncertainties that creates with
respect to resource development and load-serving obligations. This led to
proposals for changes in Bonneville's role in power supply.
The region's governors have asked the Council to work with Bonneville
and interests in the region to resolve this issue. The Council has
consulted with a number of interests in the region and has convened a
broadly representative steering committee to help address the key
questions.
Bonneville has announced its intent to carry out a policy process this
summer that would define Bonneville's future role as well as address a
number of issues for the period remaining on its current power sales
contracts. These recommendations are intended to provide input to
Bonneville as it prepares its initial proposal for that policy process and
to the deliberations of Bonneville's customers and other interests as they
consider Bonneville's long-term future role.
The focus of these recommendations is primarily on the long-term as
opposed to resolution of the questions Bonneville has raised for the last
five years under the current contracts. However, there is a high degree of
overlap between the long-term issues and many of those raised under the
existing contracts. There needs to be consistency between the resolution
of these issues for the remainder of the current contracts and how they
are dealt with in new long-term contracts.
The Council believes the issues must be dealt with as a package rather
than as separate sets of issues. The Council's recommendations are
summarized in the paper.
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