PR 68 05 BONNEVILLE POWER ADMINISTRATION FOR IMMEDIATE RELEASE: MONDAY, AUGUST 8, 2005 Contact: Ed Mosey | , BPA (503)-230-5131     President signs energy act expanding FERC authority and enhancing reliability of nation's electric system PORTLAND, Ore. - The Energy Policy Act of 2005 gives the Federal Energy Regulatory Commission limited authority to regulate sales of power and transmission by federal power marketing administrations such as the Bonneville Power Administration. The law also expands FERC authority to ensure the reliability of the bulk power system. "We're pleased with the potential for improved electric reliability that this bill will bring and with the light regulatory touch it places on BPA's transmission operations," said Steve Wright, BPA administrator. "The Northwest's congressional delegation did an outstanding job of protecting regional interests in this legislation." Significant features of the energy bill pertaining to BPA are: FERC can certify an Electric Reliability Organization that will have the authority to propose mandatory reliability rules for operation of the bulk-power system. The rules will be subject to FERC approval and will apply to all users of the power system, including BPA. The ERO may delegate its authority to a regional entity such as the already existing Western Electricity Coordinating Council. FERC is authorized to ensure that unregulated utilities (which include BPA) provide transmission at rates, terms and conditions comparable to those they offer themselves. Terms and conditions may not be unduly discriminatory or preferential. BPA currently offers open access transmission and therefore already adheres to these principles. A federal power marketing administration such as BPA may transfer control of its transmission system to a regional transmission organization or independent system operator. BPA believes this provision clarifies authority it already has and is currently exploring the merits of several approaches to single-system operation of the Northwest grid. FERC gains authority to require refunds for certain short-term power sales made by unregulated utilities. Restrictions on FERC's authority limit its application to BPA. FERC may not convert firm transmission rights held by Northwest utilities to financial rights - a provision important to Northwest utilities that rely on the existing physical rights system. Submitted for distribution on 08-08-2005 at 2:02 PM

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