News Shorts
August 10, 2005
ENERGY ACT ENHANCES ELECTRIC SYSTEM RELIABILITY
The Energy Policy Act of 2005, signed into law Aug. 8, 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.
Significant features of the energy bill pertaining to BPA are:
- FERC can certify an Electric Reliability Organization that can propose mandatory reliability rules for operating the bulk-power system. The rules will be subject to FERC approval and will apply to all users of the power system, including BPA.
- FERC is authorized to ensure that unregulated utilities, including BPA, provide transmission at rates, terms and conditions comparable to those they offer themselves. BPA already follows such rules.
- 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.
- FERC gains authority to require refunds for certain short-term power sales made by unregulated utilities. Restrictions on FERC's authority limit how it applies 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.
IT'S TIME TO PICK A PATH
Can the region choose a path to improve the way its electrical transmission grid is planned and managed? BPA laid out that challenge to Northwest utilities and others in a letter from Steve Wright. Three alternatives are up for consideration:
- Further develop a new entity called Grid West to manage and plan the Northwest transmission grid.
- Develop contracts among utilities to provide many, but not all, of the same functions. This is the Transmission Improvements Group proposal.
- Continue to operate each utility's transmission system separately.
BPA is requesting comments through Sept. 9 on which path it should pursue. And other utilities must make their own decisions on the same choices. BPA believes either Grid West or TIG could provide a new, unified approach to regional transmission. To be fully effective, both the Grid West and TIG proposals require a critical mass of support. If the region doesn't come together toward a unified goal, it indirectly chooses the alternative to continue separate operations. By the end of September, BPA has committed to announce its own decision on which path it will pursue.
CHIEF JOE HATCHERY PROPOSED
BPA is proposing to develop a program designed to increase the abundance, distribution and diversity of summer and fall chinook above Wells Dam. The program includes a new fish hatchery at the base of Chief Joseph Dam on the Columbia River, several acclimation ponds in the Okanogan River basin, broodstock collection, rearing and release. The Confederated Tribes of the Colville Reservation proposed the project and would operate all of the facilities.
BPA is preparing an environmental impact statement. A public comment period for the scoping portion of the project is open until Sept. 19. Two public scoping meetings have been scheduled in Okanogan and Wenatchee, Wash., where BPA and representatives of the Colville Tribe will discuss the proposals. The EIS is scheduled to be available for public review next spring. The project is, in part, mitigation for the impacts to the chinook after Chief Joseph Dam was built in 1955.
News Shorts is edited by Bill Murlin 503-230-5141.
For more information, please contact;
Ed Mosey at 503-230-5359 or
Mike Hansen at 503-230-4328
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