Issues To Be Addressed in Legislative Separation

Issues To Be Addressed in Legislative Separation
(Transmission Issues)

one cap/fund with administrative fund separation, or
separation of Treasury borrowing authority into two funds/caps (power and transmission) with interfund loans and common debt management practices (flexibility to defer TBL Treasury payments to support Supply System bond payments; preserve priority of payments under Transmission System Act regardless of separation)

Sufficient access to capital (access to Treasury or private market borrowing or equity infusions)
Obligations to Bondholders

preserve security of Supply System and other bonds(including net billing arrangement)
preserve tax exempt status of Supply System and other bonds

Transmission budget and construction (of major facilities, out-of-region facilities) approval by Executive Branch and Congress
Statutory priority of Federal power to Federal transmission system (16 U.S.C. §838d, 839f(i)(3))
Statutory priority of Northwest load to Federal transmission system (16 U.S.C. §824k(i)(5))
Ability of TBL to protect PBL rights under existing power sales contracts (Energy Policy Act, sec. 211(c))
Allocation of Treaty responsibilities between TBL and PBL (including Canadian Entitlement return, backup, and hydro coordination)
Rates

Limitation on power-related costs (including fish and wildlife costs) that may be included in transmission revenue requirement? TBL as vehicle for assessing BPA's stranded costs?
Implementation of Public Responsibilities: e.g., retention of FCRPS benefits in Northwest; electric reliability; repayment of taxpayers and bondholders; transmission access; implementation of environmental responsibilities including mitigating power system impacts on fish; public decisionmaking.
Assignment of assets and existing contractual obligations and rights between TBL and PBL
Approval to capitalize, join or become ISO
Formation issues: creation of a separate legal entity (e.g., gov't. corp; federal agency)

governance
financial practices (budget laws and appropriated fund status)
procurement
personnel property management, including acquisition/disposition of property (e.g., transmission facilities)
condemnation powers
torts, contracts, judicial jurisdiction, payment of judgments, other issues of sovereign immunity, etc.
legal representation
binding arbitration
other powers and applicability of laws normally applicable to Federal agencies (APA, FOIA, etc.)

Linkage to TBL separation: PBL governance issues
Timing of legislative issues while subscription process continues through 1997 and ability of subscription process to resolve/redirect issues such as stranded costs, residential exchange, access to retail markets, fish)