The Cost Verification Process for the Slice True-Up Adjustment Charge is an annual public process developed under the Tiered Rates Methodology (TRM) that will permit Slice customers, other BPA customers, and other interested parties to review the Slice True-Up Adjustment Charge and to assess whether BPA has correctly calculated the amount of each expense or revenue credit subject to the Slice True-Up Adjustment, and whether the final Slice True-Up Adjustment contains only those expenses and revenue credits permitted to be included in, and does not contain any expenses or revenue credits excluded from, the Slice Rate pursuant to the TRM; see section 18.104.22.168 and Attachment A of the TRM.
The Slice True-Up Adjustment Charge, which may be positive or negative, is calculated annually after audited actual financial data is available. The Slice True-Up Adjustment Charge is the sum of the Slice True-Up Adjustment Charge for the Composite Cost Pool and the Slice True-Up Adjustment Charge for the Slice Cost Pool.
The Cost Verification Process begins after BPA posts the applicable cost pool tables. To date, there have been no costs associated with the Slice Cost Pool, therefore only the Composite Cost Pool is reflected in the Slice True-Up Adjustment.
Customers will have 15 business days to submit Slice True-Up Adjustment issues for consideration by BPA to be included in the Agreed Upon Procedures (AUPs). The AUPs are miscellaneous financial services provided to BPA by an external auditor. BPA will post the final list of issues to be included in the AUPs.
The AUPs are not subject to, and do not give rise to, audit standards, responsibilities, or liabilities, and the auditor will not express an audit opinion on the specific tasks performed under the AUPs. For the Slice True-Up Adjustment, the scope of work will be constrained to verify that BPA’s Slice True-Up Adjustment contains only those expenses or revenue credits permitted to be included in, and does not contain any expenses or revenue credits that should be excluded from, the Slice Rate pursuant to the TRM and the applicable Cost Allocation Table established in the applicable 7(i) Process.
Public workshops will be conducted to discuss the results of the AUPs. Customers will have 15 business days to submit written comments on the AUP results. BPA will issue and post a Draft Response within 15 business days after the last workshop held. There is a neutral third-party non-binding review process available for any customer or interested party who is aggrieved by BPA’s Draft Response. If there are no grievances, BPA will issue and post its Final Response.