Due to the uncertainty associated with the 2004 FCRPS BiOp^2/ litigation, BPA included the NFB Adjustment and Emergency NFB Surcharge to allow BPA to recover increased costs resulting from litigation-related expenses and river operations.

The NFB Adjustment increases the annual maximum recovery amount (Cap) on the CRAC to allow recovery of increased costs or reduced revenues resulting from court-ordered changes to hydro operations, court-approved settlements over the FCRPS 2004 BiOp and/or any increase in costs due to a new BiOp. The NFB Adjustment does not directly modify rates.

The Emergency NFB Surcharge is a separate mechanism from the NFB Adjustment, but it triggers based on the same court-related events with the added requirement that the Within-Year TPP be less than 80 percent. The NFB Surcharge addresses the fact that the CRAC does not produce revenues in the same fiscal year in which Financial Effects occur. The Emergency NFB Surcharge is designed to recover NFB costs (or lost revenues) in the same year when BPA’s financial reserves are precariously low.

The NFB Adjustment and Emergency NFB Surcharge are described in detail in the WP-07 Risk Analysis Study.

1/ [N]ational Marine Fishery Service [F]ederal Columbia River Power System [B]iological Opinion

2/ Federal Columbia River Power System Biological Opinion