Safety Net (SN) CRAC Related Link: SN-03 Power Rate Case
(updated November 18, 2003)
The Safety Net Cost Recovery Adjustment Clause, or SN CRAC, enables changes to the Financial-Based CRAC that, to the extent market and other risk factors allow, achieve a high probability that the remainder of Treasury payments during the rate period will be made on time and in full. The SN CRAC can trigger even if the FB CRAC does not. It triggers if:
- BPA forecasts a 50 percent probability that it will miss a payment to Treasury or other creditor, or
- BPA has missed a payment to Treasury or other creditor.
Changes to terms and conditions of the FB CRAC would be set at the time in a Section 7(i) rate hearing process (PDF, 10 pages, 29 kb). The Administrator determines that the SN CRAC has triggered and then notifies customers subject to the FB CRAC. BPA publishes a Federal Register notice initiating an expedited 7(i) process and conducts a hearing within 40 days unless the rate case parties agree otherwise. The changes to the FB CRAC take effect 61 days from filing with FERC unless FERC orders otherwise.
November 18, 2003 - Official versions of the materials/handouts for the August 14th, August 28th, and September 18th FB/SN CRAC Workshops have been posted on individual workshop web pages (and removed from the "Queue"). All of these materials can now be accessed via the FB/SN CRAC Workshops page.
September 10, 2003 - Workshop Scheduled on September 18th to Discuss Possible IOU Public Litigation Settlement: BPA will hold a workshop for customers and interested parties to explain how BPA would implement the SN CRAC in the event of a settlement of the IOU Public Litigation. The workshop will be held on Thursday, September 18, 2003, beginning at 9:00 a.m. in the Rates Hearing Room at 911 NE 11th Avenue, Portland, Oregon. To participate by telephone, please call Cynthia Jones (503) 230-5459 or Cain Bloomer (503-230-7443) in advance of the workshop.
August 28, 2003 - Final FB and SN CRAC Rate Adjustments for FY 2004: At today's FB/SN CRAC workshop, BPA presented an average rate adjustment for FY 2004 of 2.2% above FY 2003 average rates. The Power Business Line's FY 2003 year-end accumulated net revenues (PDF, 3 pages, 33 kb) are projected to be (-)$594 million. Absent a settlement of litigation between the IOUs and public power customers, the FB CRAC will be 12.28% and the SN CRAC will be 11.46%. For more information, see BPA's August 28th News Release. Today's workshop materials, including BPA's response to public comments are temporarily available in the Power Rates Queue and will be posted at a later date on the August 28th workshop page. A workshop is scheduled for Thursday, September 18, beginning at 9 a.m. in the BPA Rates Hearing Room to address the impact of a settlement on rates, should a settlement occur, as well as other outstanding issues. Additional information will be forthcoming and details will be posted to this website.
August 14, 2003 - Initial Calculations for the FB and SN CRAC Rate Adjustments: At today's FB/SN CRAC workshop, BPA presented the FY 2003 Third Quarter Financial Review and the PBL Generation Accumulated Net Revenues (ANR) Forecast. The Power Business Line's year-end accumulated net revenues are projected to be (-)$613 million. [Note: This preliminary ANR forecast was updated to (-)$594 million on August 18, 2003. See the August 28, 2003 announcement for a link to the Final ANR Forecast.] The release of the ANR forecast and associated FB and SN CRAC materials at today's workshop marks the beginning of a public comment period. For more information, see the letter to rate case parties and customers dated August 1, 2003 (see August 1 announcement below). As noted in the letter, the deadline for public comments is Friday, August 22, 2003. Materials from today's workshop are temporarily available in the Power Rates Queue and will be posted at a later date on the August 14th workshop page. The next workshop will be held on Thursday, August 28, 2003, beginning at 9 a.m. in the BPA Rates Hearing Room, where BPA plans to announce the final FB and SN CRAC rate adjustments for FY 2004.
August 1, 2003 - FB and SN CRAC Workshops Scheduled on August 14th & 28th: In a letter issued today to rate case parties and customers, BPA announced two workshops for the FB and SN cost recovery adjustment clauses prior to implementing wholesale power rate adjustments for FY 2004. BPA will conduct a workshop on Thursday, August 14 to explain the forecast of Accumulated Net Revenues (ANR) for FY 2003 and to review the initial calculations for the FB and SN CRAC rate adjustments. The release of the ANR forecast and associated FB and SN CRAC materials marks the beginning of a public comment period. Written comments regarding the inputs to the calculation of the proposed FB and SN CRAC rate adjustments must be submitted no later than August 22, 2003. Today's letter (PDF, 28 kb) provides the details on how to submit comments. Following the public comment period, a second workshop will be conducted on Thursday, August 28, when BPA will announce the final FB and SN CRAC rate adjustments for FY 2004, including any adjustments based on feedback received during the comment period. Both workshops will begin at 9 AM in the BPA Rates Hearing Room, Room 223, located at 911 NE 11th Avenue in Portland. If you would like to participate in either of these workshops by telephone, please contact Cain Bloomer at 503-230-7443 or Cynthia Jones at 503-230-5459 in advance of the workshops to reserve a space on the conference bridge.
[Note: On February 7, 2003, the BPA Administrator triggered the SN CRAC rate setting process. For more information, see the 2003 SN CRAC (SN-03) Expedited Rate Case home page.]
January 29, 2003 - SN CRAC Workshops Cancelled for February 4th and 6th: BPA has cancelled the February 4th and 6th SN CRAC workshops that were tentatively announced below. BPA asks Rate Case parties and customers to continue to hold the remaining Tuesdays and Thursdays in February for possible workshops. Additional information on workshop dates and subject matter will be provided as soon as possible. See January 29, 2003 Letter to Rate Case Parties and Customers (PDF, 15 Kb).
January 27, 2003 - Schedule for Possible SN CRAC Workshops: BPA is requesting that rate case parties and customers reserve every Tuesday and Thursday in February in the event SN CRAC workshops are required. Additional information on workshop dates and subject matter will be provided as soon as possible. See January 24, 2003 Letter to Rate Case Parties and Customers (PDF, 16 Kb) for additional information. [Note: The February 4th and 6th workshops have been cancelled. See January 29th announcement.]
October 8, 2002 - SN CRAC Informal Workshops: October 8th Workshop Handouts Now Available; October 15th Workshop Cancelled - BPA held an informal SN CRAC Workshop today to discuss the 40-Day, 7(i) process and potential rate designs in the event that the SN CRAC is triggered. Electronic versions of the handouts are now available. The October 15, 2002 workshop has been cancelled. For additional information, see October 8, 2002 letter to Rate Case Parties and Customers (PDF, 18 kb).
September 24, 2002 - Two SN CRAC Workshops Scheduled: BPA will conduct two informal workshops on Tuesday, October 8th and 15th to discuss the SN CRAC for the 2003 fiscal year. BPA has not yet determined if the SN CRAC will actually trigger. However, due to BPA's difficult financial situation over the remaining rate period, BPA needs to consider the prospect that the SN CRAC may be triggered in fiscal year 2003. BPA is hosting these workshops to discuss how an expedited 7(i) process could be accomplished in 40-days as described in the General Rate Schedule Provisions. See September 24 letter to Rate Case Parties and Customers (PDF, 16 Kb) for additional information.
[Note: The October 15th SN CRAC workshop announced in the September 24 letter was CANCELLED See October 8th announcement above.]
August 28, 2002 - The SN CRAC workshop scheduled for September 17th has been CANCELLED and replaced with a Financial Choices workshop. See August 27th letter (PDF, 23 kb) for additional information.
August 9, 2002 - BPA will conduct two workshops to discuss the probability of triggering the Safety Net Cost Recovery Adjustment Clause (SN CRAC) outlined in the 2002 General Rate Schedule Provisions for fiscal year 2003. BPA has not yet determined if the SN CRAC will trigger. However, due to the difficult financial situation, BPA needs to consider the possibility that the SN CRAC will trigger in the next fiscal year. The workshops are scheduled for Thursday, August 22 and Tuesday, September 17. See August 9 letter to Rate Case Parties and Customers (PDF, 35 Kb) for additional information.
[Note: The September 17th SN CRAC workshop announced in the August 9 letter was CANCELLED and replaced with a Financial Choices workshop. See August 28th announcement above.]
Content provided by: Greg Gustafson, 503-230-5820, firstname.lastname@example.org.
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