Current Preliminary Proposal
Bifurcated Rate Case
As of January 30, 1998
BPA is currently focusing on how to develop an initial proposal for a power rate case in 1998, and a transmission rate case in 2001. The 1998 rate case will support the revenue requirement and cost recovery determination for power rates. The 2001 rate case will do the same for transmission. We will be working to quickly determine whether this approach is feasible.
1998 Rate Case Issues
Issues unique to this proposal:
- Given BPA's total costs, develop method to determine which costs will be recovered by power rates and which will be recovered by transmission rates (to be determined in 2001 rate case).
- PBL forecast of transmission costs for non-requirements sales to be included in power revenue requirement.
Functionalization issues not unique to this proposal:
FERC/Procedural Filing Issues
- GTA costs
- Generation Integration costs/Generator Step-Ups
- Overhead Costs
- Other (Conservation; Fish)
- Pricing generator-supplied inputs (e.g., Ancillary Services and other reliability support services)
We expect to submit to FERC at the end of the 1998 rate case a Power Revenue Requirement Study, power repayment study/cost recovery demonstration for power revenues at proposed rates, and Statements A-F showing power data only.
2001 Rate Case
- FERC may wait to rule on power rates for some time because the rates will not go into effect until fiscal 2002.
- FERC may wait to rule on power rates until after BPA files transmission rates.
- Uncertainty regarding FERC's reaction.
- Whether power and transmission rates can be developed independently.
- FERC's new authorities for transmission rates.
- Transmission Revenue Requirement (Forecasted costs; Methodology [repayment study vs. IOU depreciation type]; Revenue financing)
- Segmentation (Southern Intertie; Delivery)
- Allocation (12 CP vs. 1 CP vs. 1 NCD; Allocation to FPT rate; Treatment of Entitlement Return)
- Rate Design (Current rate structure vs. access fee/congestion charge; NT rate structure; No POI for BPA PTP)
- Transmission Revenue Forecast
- Terms and Conditions (Native load priority; 2-year notice to reduce contract demand; First year flexibility, Contiguous PODs)
- Ancillary Services--Alignment with FERC-defined ancillary services (i.e., develop charges for generation-supplied reactive and scheduling)
Web page posted on February 25, 1998.
Information provided by: Diane Cherry, BPA Power Business Line, 503-230-5648, firstname.lastname@example.org.