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
	Todd Maddock, Idaho

Transition Board Transmission Work Group

Meeting 12
September 16, 1997

Al Wright chaired meeting number 12 of the Transmission Work Group at the Northwest Power Planning Council’s offices in Portland. The meeting went from 9 a.m. to 12 p.m. About 30 people attended.

The meeting began with a discussion of the conference call of the Transition Board with Washington D.C. staffers and lobbyists from Pacific Northwest groups. It appears that the Northwest is in a position to have some influence on the "Northwest chapter" of national legislation restructuring the electricity industry, but less than it might have had in the past. The recommendations of the Comprehensive Review Steering Committee seem to carry significant weight with Congress and the Administration. If we can assemble a regional consensus on implementation of those recommendations, we have a good chance of acceptance in Washington.

Several members of the group expressed the opinion that a resolution of issues surrounding Bonneville’s potential stranded costs would allow progress in reaching agreement on FERC regulation of Bonneville, and in other areas as well.

The group took up the matrix comparing proposals for FERC regulation of Bonneville. There was preliminary consensus that:

1. "BPA should be required to account for its costs (both investments and expenses) pursuant to the FERC Uniform System of Accounts." and
2. "FERC should apply the Uniform System of Accounts to BPA as they apply to public utilities." (Staff note: As used by FERC, the term "public utilities" applies to FERC-regulated entities including investor-owned utilities and certain others but not including most consumer-owned utilities.)

There was considerable further discussion about what should happen if an interfunction loan (e.g. from Bonneville’s transmission line of business to its power marketing line of business) were necessary, and how Bonneville’s capital costs should be calculated for ratemaking purposes.

At noon the group decided that the interest groups needed time to caucus and adjourned.

The next meeting of the work group is scheduled for 9:00 AM, September 30, 1997 at the Northwest Power Planning Council office at 851 S.W. 6th Ave. Portland.