Thursday, March 13, 1997

NORTHWEST ENERGY
REVIEW TRANSITION BOARD MEETING SUMMARY

Ridpath Hotel,
Spokane, Washington

 


The Northwest Energy Review Transition Board discussed the separation of BPA's transmission and generation, IndeGO, BPA's near-term marketing plans, coordination with tribes, river governance, and the federal power marketing subscription process. Roy Hemmingway participated in the meeting by telephone from Washington, D.C. The audience was about 45.

Next Meeting: April 24 in Portland.

• SEPARATING BPA'S TRANSMISSION: HOW AND WHEN? -- Staffer Dick Watson summarized a draft work plan to enable the Transition Board to address issues related to the Comprehensive Energy Review's transmission recommendations. Phase I of the work plan is to establish an IGO that includes BPA; Phase II is to identify issues related to legally separating BPA's power marketing and transmission organizations; Phases III and IV would encompass drafting and passing legislation, if it is judged to be in the interest of the region, he explained. A panel of BPA customers and interest group representatives responded to the plan.

Dick Adams of PNUCC said identify alternatives and do a risk assessment; Steve Waddington of the DSIs urged seeking consensus on a preferred approach by looking at costs and benefits; Bill Pascoe of Montana Power said focus on figuring out the complexities of legal separation; Rob Walton of PPC said public power is not convinced that legal separation is the answer; John Saven of Northwest Requirements Utilities said recent policy developments affecting alternatives need study; Angus Duncan of the Columbia/Pacific Policy Institute called for a concerted effort to bring the tribes and public interest community into the process; and Nancy Hirsh of NCAC raised concerns about the independence of the IGO governing board.

• THE LATEST ON EVER-GROWING INDEGO -- IndeGo now has 21 signers and covers eight states, Pascoe reported. Our intention is to file with FERC by mid-July, he said, adding it's important to find a way for BPA to participate in the filing because BPA is such a big part of the system. Harvey Spigal of BPA presented several issues that need to be resolved for BPA to participate in IndeGO, and Administrator Randy Hardy said he was unconvinced BPA could be part of the IndeGO filing. The issues are too large, and BPA is "hopelessly conflicted" between cost recovery responsibilities and the way FERC is driving the industry, he observed. The sooner we fix this problem, the better off we'll be, Hardy said.

• BUILDING A BOX FOR BPA'S INTERIM MARKETING PLAN -- Paul Norman of BPA said a handful of customers are seeking post-2001 contract commitments now, and BPA is leaning toward doing some limited business in that regard. He proposed that BPA work with customers and stakeholders to define a set of boundaries for such transactions and report back to the Transition Board in April. Hardy said we need to "build a box" with three parameters: How much? How long? and What pricing structure?

• THE TRIBES WEIGH IN ON RESTRUCTURING -- Howard Funke, representing the Spokane and Coeur d'Alene Tribes, said the tribes have sought a coordinated approach in both the Comprehensive Review and the Transition Board. We made overtures, but got no reply, he stated. The tribes are developing their own policy on restructuring and will go to Congress with it, Funke indicated. Todd Maddock said tribal involvement is important -- we want to work with you. Mike Kreidler noted the four governors are arranging a meeting with the tribes. Our efforts at engaging the tribal community in the Comprehensive Review were well-intended, if not successful, stated John Etchart. It would be better if there is one approach to Congress, he said, but time will tell.

• THE PROCESS FOR A RIVER GOVERNANCE PROCESS -- Staffer John Volkman recommended tribes, and federal, state, and public interest representatives be convened to decide on a process for resolving river governance issues. The tribes don't want a process handed to them, Funke said. Etchart asked staff to consult with Mr. Funke to accommodate the tribes' concerns.

• FEDERAL POWER MARKETING SUBSCRIPTION GROUP OFF AND RUNNING -- Adams described a draft work plan for implementing the Review's recommendations on federal power subscriptions. The proposed timeline calls for new contracts to be signed by the third quarter of 2000. Syd Berwager of BPA said 75 people attended a kickoff meeting for the subscription process. There are "a goodly number of issues to deal with," he stated.

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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.