Northwest Energy Review Transition Board	John Etchart, Montana
851 S.W. Sixth Avenue, Suite 1100 Portland, Oregon 97204-1348	Roy Hemmingway, Oregon
Phone 503-222-5161 or 1-800-452-5161 FAX 503-795-3370	Mike Kreidler, Washington
www.nwcouncil.org/trans.htm	Todd Maddock, Idaho

Transition Board Transmission Work Group
Meeting 10
August 19, 1997

Al Wright chaired the work group’s tenth meeting at the Northwest Power Planning Council’s offices in Portland. About 30 people attended.

Al presented a "reconnaissance quality" analysis of Bonneville revenues under several sets of assumptions on market conditions and hydro system configuration. The analysis shows that Bonneville’s financial situation is quite sensitive to market conditions. A 3-4 mills/kwh difference in market prices makes a substantial difference in Bonneville’s financial viability. A substantial change in the power-producing capability of the hydro system can also have a big impact on Bonneville’s finances, though a scenario that stages this change over time moderates the impact.

Bonneville was asked about their study of potential responses to a charge placed on Bonneville’s transmission system. The contract to critique Bonneville’s in-house study of the issue has been let, and Bonneville should have results in September.

The DSIs and IOUs came to the meeting with discussion papers on FERC regulation of Bonneville, (see fercreg7.htm and fercreg8.htm) but other parties were not yet prepared to present their proposals. As a result, the group spent most of its time understanding the DSI and IOU papers and discussing possible additions to the issues list. The staff’s revision of the issues list based on this discussion is posted.

The group concluded the meeting with a discussion of our progress compared to our work plan. Al Wright will draft a revised schedule for presentation to the group at the September 3 meeting, in order to report to the Transition Board on September 9.

The next meeting of the work group is scheduled for September 3, 1997 at 1:00 p.m. at the Northwest Power Planning Council office at 851 S.W. 6th Avenue, Portland.