The Transition Board took comment on its report to Congress on recommendations “to effect Federal Energy Regulatory Commission (FERC) oversight of BPA transmission” and got conflicting advice on whether the board should fold up and go home or settle in and roll up its sleeves.  Syd Berwager explained what’s new with BPA’s subscription proposal, and Brett Wilcox expressed the aluminum industry’s frustration with that process.  All members were present.  The audience was about 35.

• REPORT ON THE STATUS REPORT ON FERC OVERSIGHT OF BPA TRANSMISSION
Chairman John Etchart noted the Transition Board had received a letter from some members of the Northwest Congressional delegation indicating “an uneasiness” with the board’s efforts to work with the region to develop a Northwest chapter to a national electric utility restructuring bill.  He said board members would go to Washington, D.C. May 10 to update the delegation on recent activities, especially the work on transmission.  We will try to get agreement on how the board can be the most helpful to the delegation as we go forward, Etchart stated.

Staffer Wally Gibson described the origin and contents of the “Transition Board Staff Status Report on Development of Recommendations to Effect FERC Oversight of Bonneville Transmission.”  He outlined issues associated with the Federal Power Act (FPA) and with BPA’s organic statutes, parts of which would need revision if BPA’s transmission is to be subjected to FERC regulation.  Gibson explained how the board’s proposal compares with the Administration’s recently released “Comprehensive Electricity Competition Act” (CECA).  He said CECA “generally follows the principles and recommendations of the T-Board,” with some significant differences; for example, CECA has no clear statement that FERC’s new authority under the FPA supersedes conflicting provisions of BPA’s organic statutes, and it does not provide that FERC hearings on BPA rates be held in the Northwest.

The board thinks its work on transmission is pretty much done, noted Etchart, but he added that written comments on the report are welcome and due by May 4.

 • PUBLIC COMMENT HIGHLIGHTS LACK OF CONSENSUS
Alfred Canada of Grants Pass, OR said the Northwest’s integrated system of hydropower and transmission is unique in the nation, and he urged the board not to split the system into generation and transmission pieces.  Steve Weiss of the Northwest Energy Coalition said there is a mismatch between the T-Board’s recommendations and what BPA is doing with respect to a contingent cost recovery mechanism.  He suggested some attention be paid to bringing the two together.  IOU consultant Jim Litchfield said the Transition Board needs to get “re-engaged” and draw up a work plan to address the issues at hand.  We have some very serious problems with what staff has done thus far, and this report has a lot of controversy in it yet, he stated.  Ken Canon of the Industrial Customers of Northwest Utilities agreed, pointing out instances where the board’s report varies from the recommendations of the Comprehensive Review.  He urged the board to highlight areas of controversy, such as the transmission surcharge, in its report to Congress.  Shelly Richardson of the Public Power Council said she agrees the T-Board’s work on this topic is pretty well done.  Don’t step up your activity, she stated, urging the board to “work with us and the delegation and move on.”  Richardson said the report does need to clarify that there is not a consensus in the region on the “meat-and-potatoes issues.”

• THE LATEST ON SUBSCRIPTION
Syd Berwager said the current timeline calls for BPA to publish its initial rate case proposal in late May, with the rate case to be finished by December 17, 1999.  Under this schedule, subscription would close on April 17, 2000, he noted.  Berwager described issues surrounding subscription eligibility and determining net requirements and said a Section 5(b)/9(c) public process is slated to begin in May.  He said BPA awaits recommendations from public utility commissions on how to allocate the 800 megawatts in benefits to the investor-owned utilities and that BPA has been meeting with the DSIs about their concerns with the subscription strategy.

• WILCOX:  “THE COMPREHENSIVE REVIEW IS DEAD”
Brett Wilcox of Northwest Aluminum said BPA seems to be taking the position that it wants to sell energy outside the region at California market prices, rather than sell in region at cost.  The measures being considered today in the name of the Comprehensive Review bear little or no resemblance to the integrated and comprehensive vision of the Review, he stated.  Let’s be honest -- we no longer have a cohesive, balanced vision of the system, and the Comprehensive Review is dead, Wilcox said.  The Regional Act needs to be changed too, he stated, urging the governors and the board to work toward a consensus, not “the divisive way we are approaching things now.”

• WHERE DOES THE T-BOARD GO FROM HERE?
We’ve heard the Transition Board “should live forever and also that it should drop dead,” said Etchart.  The question for the governors is what role we want to play in this “regional energy racket,” he noted.  When the governors next get together, they should deliberate on this, Etchart stated.  We’ll get back to you on a schedule for a follow-on meeting, he told the audience.
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Please Note:  This summary is based on detailed reports of the meetings of the Northwest Energy Review Transition Board.  The reports are prepared by Resource Writers Northwest and distributed by the Northwest Power Planning Council.  To request a copy, please call the Council at 1-800-452-5161.