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Residential Exchange Program (REP)

The Pacific Northwest Electric Power Planning and Conservation Act (Northwest Power Act) enacted the Residential Exchange Program (REP) to provide residential and farm customers of Pacific Northwest (regional) utilities a form of access to low-cost Federal power. Under the REP, BPA "purchases" power from each participating utility at that utility's Average System Cost (ASC). The Administrator then offers, in exchange, to "sell" an equivalent amount of electric power to the utility at BPA's PF Exchange rate. The amount of power purchased and sold is the qualifying residential and farm load of each utility participating in the REP. This qualifying residential and farm load is then multiplied by the difference between BPA's PF Exchange rate and the utility's ASC to derive the utility's REP benefits. These benefits are passed on to the residential and farm customers of the utility.

To calculate an ASC, BPA reviews the participating utility’s resource costs and loads as directed in the 2008 ASC Methodology (18 CFR Part 301, Sales of Electric Power to the Bonneville Power Administration; Revisions to Average System Cost Methodology).  Under the 2008 ASCM, a utility's ASC is generally determined by dividing the utility's allowed cost of resources (Contract System Cost) by the utility's total system load (Contract System Load). The resulting quotient of this calculation is the utility's ASC. BPA determines ASCs in ASC Review Processes which take place concurrently with BPA's rate proceeding. Utilities participating in the REP must submit ASC filings and all associated documentation in the ASC Review Processes in accordance with the filing procedures set forth in the 2008 ASCM and the Rules of Procedure for BPA’s ASC Review Process (Rules of Procedure).  At the conclusion of the ASC Review Processes, BPA issues Final ASC Reports for each of the REP‑participating utilities which establish the utilities’ ASCs for the upcoming Exchange Period.  ASCs are also a component used by BPA in the rate proceeding to determine the respective utilities’ REP benefits.

 

2008 ASC Methodology

The 2012 REP Settlement (REP-12 Proceeding)

BPA conducted the REP-12 proceeding to review the terms and conditions of a long-term settlement of issues regarding the implementation of the Residential Exchange Program (2012 REP Settlement). This proceeding concluded with the Administrator's issuance of a Final Record of Decision (ROD) on July 26, 2011 which reflected his decision to adopt the 2012 REP Settlement.

One party challenged BPA in the United States Court of Appeals for the Ninth Circuit (Court) on the 2012 REP Settlement.  On May 22, 2015, the Court issued a memorandum opinion in Public Power Council v. U.S. Dept. of Energy, 2015 WL 2448336, which dismissed as moot the Western Public Agency Group’s (WPAG) challenge to BPA’s WP-07S ROD. This dismissal effectively ended all current challenges related to the REP. 
Documents pertaining to the 2012 REP Settlement include: 

BP-16 Rate Case

ASCs for the FY 2016-2017 Exchange Period were determined in the FY 2016-2017 Review Processes. The PF Exchange Rates for REP-participating utilities are listed below. The PF Exchange Rates are comprised of a base PF Exchange Rate plus a utility-specific 7(b)(3) supplemental rate charge. For additional information see the BP-16 Power Rate Schedules and General Rate Schedule Provisions and BPA's 2016 Rate Proceeding (BP-16 rate case). The ASCs and the PF Exchange Rates, below, were uploaded to this website on July 23, 2015. These ASCs will become effective for the FY 2016-2017 Exchange Period on October 1, 2015, and remain in effect through September 30, 2017.


Investor-Owned Utilities
Rates in $ / MWh 1
ASC
Base PF Exchange
Rates
7(b)(3) Surcharge
PF Exchange Rates
Avista
50.87
47.95
2.60
50.5482
Idaho Power
59.02
47.95
9.56
57.5117
North Western
79.24
47.95
21.05
68.9982
PacifiCorp
76.42
47.95
21.26
69.2055
Portland General
71.14
47.95
16.00
63.9530
Puget Sound Energy
67.09
47.95
13.21
61.1582
Consumer-Owned Utilities
Base Tier 1 PF Exchange
Rates
7(b)(3) Surcharge
PF Exchange Rates
Clark Public Utilities
50.95
47.98
1.87
49.85
Snohomish County PUD
49.59
47.98
1.01
48.99
1 $/MWh = mills/kWh
​​Rate Directive Step. Calculation of Settlement Utility Specific PF Exchange Rates​​ 
(updated July 23, 2015) Test Period October 2015 - September 2017​


BP-14 Rate Case

ASCs for the FY 2014-2015 Exchange Period were determined in the FY 2014-2015 Review Processes. The PF Exchange Rates for REP-participating utilities are listed below. The PF Exchange Rates are comprised of a base PF Exchange Rate plus a utility-specific 7(b)(3) supplemental rate charge. For additional information see the BP-14 Power Rate Schedules and General Rate Schedule Provisions and BPA's 2014 Rate Proceeding (BP-14 rate case). The ASCs and the PF Exchange Rates, below, were updated on October 28, 2014. These ASCs are currently in effect until September 30, 2015, at which time the FY 2014-2015 Exchange Period will conclude, and the ASCs for the FY 2016-2017 Exchange Period will commence.
 
Investor-Owned Utilities
Rates in $ / MWh 1
ASC
Base PF Exchange
Rates
7(b)(3) Surcharge
PF Exchange Rates
Avista
57.05
46.32
8.64
54.9652
Idaho Power
50.22
46.32
3.43
49.7521
North Western
70.65
46.32
16.74
63.0667
PacifiCorp
65.61
46.32
15.52
61.8439
Portland General
68.90
46.32
16.83
63.1552
Puget Sound Energy
76.83
46.32
22.46
68.7784
Consumer-Owned Utilities
Base Tier 1 PF Exchange
Rates
7(b)(3) Surcharge
PF Exchange Rates
Clark Public Utilities
49.91
46.34
2.39
48.72
1 $/MWh = mills/kWh 
Rate Directive Step. Calculation of Settlement Utility Specific PF Exchange Rates​ 
(updated July 24, 2013) Test Period October 2013 - September 2015​
This chart was updated in June 2014 to reflect a change in NLSL status for PGE.
REP Compliance Review Program

Section 5 of the NW Power Act requires the BPA to ensure payments made to eligible utilities, to reduce the wholesale costs of producing and transmitting power, are passed on to the utility’s residential and farm loads.  By law, the payments BPA makes to eligible utilities under the REP must be “passed through directly” to the utility’s retail residential and farm customers (residential loads).  These REP payments appear as a credit on the utility customers’ monthly bills.  To ensure these payments are distributed to eligible retail customers correctly and in a timely manner, BPA developed the REP Compliance Review Program.  Through the REP Compliance Review Program, BPA reviews the REP benefits received by the utilities from BPA, and passed through to their qualifying REP customers.
 
 
REP Customer Load Eligibility Guidelines (CLEG)
BPA developed the Customer Load Eligibility Guidelines (CLEG) to provide guidance to REP participating utilities in determining whether residential, farm, and irrigation/pumping loads are eligible for REP benefits under the NW Power Act.  Specifically, the CLEG addresses a variety of issues related to eligible and ineligible retail customers under the REP.  The CLEG is intended to be used as a guideline only, and may be revised or cancelled by BPA at any time.  Throughout the term of the REP, BPA has made periodic updates to the CLEG.  Most recently, BPA, utilities participating in the REP, and other interested parties worked together to update and provide greater clarity to the CLEG.
Contact Information
Julia Shaughnessy, Residential Exchange Program Manager
503-230-7443 jmshaughnessy@bpa.gov
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