One of the more controversial issues facing the Transition Board, and the region as a whole, is the potential for Bonneville to be unable to fully recover its costs by selling its products at market prices. This potential problem is in some ways similar to the problem faced by many utilities facing increased competition around the nation. The treatment of unrecoverable Bonneville costs ("transition costs"), should they occur, has been cited by representatives of the region's Congressional delegation as an essential component of a regional position for Bonneville's part of any national electricity industry restructuring legislation.
To help stimulate and focus discussion, the Transition Board released a background paper on the general issue of transition costs ("Transition Costs -- A Review of Practices and Their Possible Application to Bonneville"). The Transition Board received a number of comments on the background paper, which are summarized in a memo to the Board. The comments in their entirety are available from Transition Board staff ().
Subsequently, the Transition Board asked that parties work to develop proposals for transition cost recovery. The Board has received papers from the Eugene Water and Electric Board and the Northwest Conservation Act Coalition that propose methods to deal with transition costs. The Transition Board welcomes comments on these proposals and welcomes proposals from other parties. The Board will be happy to post other proposals at this website. Submit comments or proposals to Ken Corum, Council staff at .