The Northwest Energy Review Transition Board approved a plan for BPA to market a limited amount of power before the federal power subscription process is put into place. The board took comments on issues to include in a response to the Congressional delegation?s recent letter and heard from BPA on what it plans to say at a briefing next week in Washington, D.C. All board members were present; the audience was about 55.

Next Meeting: May 15 in Spokane, Washington.

? TO MARKET, TO MARKET TO SELL A FEW MEGS -- Deputy administrator Jack Robertson said BPA?s interim marketing plan is an effort to balance the Regional Review?s recommendations with the agency?s need to meet its financial obligations. BPA consulted with customers and others about the plan, and found that marketers and IOUs are "actively wooing" our customers, according to Paul Norman of BPA. The agency?s proposal is to sell no more than 800 megawatts (MW) in region and 800 MW out of region, he explained.

Consultant Jim Litchfield said the IOUs are concerned that if BPA makes marketing decisions now, it could result in stranded costs. Nancy Hirsh of the Northwest Conservation Act Coalition said BPA?s proposal "deserves strong consideration" and that the sales must ensure fish and wildlife costs are covered. Tim Stearns of Save Our Wild Salmon and Angus Duncan of the Columbia/Pacific Policy Institute urged resolving river governance, fish and wildlife costs, and stranded debt issues sooner rather than later.

John Saven of Northwest Requirements Utilities recommended the board act positively on the proposal "for the sake of BPA?s loyal customers." Terry Mundorf of the Western Public Agencies Group said "having this tool in BPA?s kit is a good idea." "Presubscription" is not incompatible with the subscription process, said Steve Waddington of the Direct Service Industries.

There was Transition Board consensus on 500 MW of in-region sales. The board did not alter BPA?s out-of-region sales proposal.

? SEND A LETTER TO CONGRESS -- Staffer Dick Watson said that at the May 15 meeting, the Transition Board will take public comment on a draft letter of response to Northwest members of Congress about which of the Regional Review recommendations require legislation. The final version of the letter will be submitted to the governors for approval on June 3. The board took comment on issues associated with the letter.

Jerry Leone of the Public Power Council said the publics believe legally separating BPA into two entities is "not desirable," and that the focus should be on BPA controlling costs, not on new sources of revenue. Litchfield said the letter should discuss the transmission and federal power subscription efforts under way in the region and say that Congress could help by working on a fish budget and river governance.

Duncan suggested telling the delegation to resist privatization of the federal system and giving away regional authority to FERC. Hirsh said resolve governance before BPA separation and that the region needs to get started on the stranded cost issue. Waddington responded that introducing the stranded cost issue now would be "the worst thing" for the subscription process. Mundorf suggested telling the delegation, we may or may not need legislation on separation, but that "good work is being done, and we?ll be back to you." Stearns said the region should achieve a fish settlement and an agreement on funding and then resolve the stranded debt question. Saven urged the board not to put the ball on stranded costs "in play" simultaneously with developing the subscription process.

Al Canada of Grants Pass, Oregon said legislation should prohibit BPA from activities inconsistent with the Regional Power Plan. Glen Swift urged the region to "get clear about what we want" and operate on a proactive basis.

? BPA MAKES A CASE FOR NO LEGISLATION -- Steve Hickok of BPA presented a draft of the agency?s April 28 briefing on BPA?s power business line for Congressional staffers. BPA wants to impart the idea that we have ways to accomplish what the Regional Review recommended without legislation, he said. Robertson commented that the key to the subscription process is beginning to deal with fish costs and river governance, and that if we can prove we can deal with those in the region, it diminishes the possibility of dealing with them in Washington, D.C. Attorney Mary Beth VanBuren explained how BPA could work within its administrative authorities to deal with various subscription issues.

? PROGRESS IN THE WORK GROUP TRENCHES -- Consultant Al Wright said the Transmission Work Group is trying by July 1 to get a clear idea of items to be legislated. The group is focusing on "taking apart BPA?s organic statutes" to find transmission references, identifying BPA?s contractual obligations, and discussing the question of "one BPA fund or two," he reported. We have agreement with the Subscription Work Group that we will deal with the power business line structure, as well as transmission, Wright said. I?m very optimistic about the way the group is going, he said.

Syd Berwager of BPA reported the Subscription Work Group has met three times and is progressing nicely. Shauna McReynolds of PNUCC said the group is ahead of schedule, having completed identifying business interests. The list is a prelude to developing descriptions of packages of products and services, she said. So far, all things are "do-able," and we?re starting to dig into the details, McReynolds reported.

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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 Inc. and distributed by the Northwest Power Planning Council. The Pacific Northwest Utilities Conference Committee (PNUCC) contributes financial support for these reports. To request a copy, please call the Council at 1-800-452-5161 and ask for Public Affairs.