BPA Bulk Hub Purchase Notification for Service at Tier 2 Rates
February 23, 2017
In February 2017, BPA’s Bulk Hub made a purchase to serve part of its Regional Dialogue Tier 2 load. This was a 12-month flat block power purchase for 37 aMW in FY 2019. BPA executed the purchase to serve loads at Tier 2 Short-Term and Load Growth rates, and to provide delivery losses for both Tier 2 Vintage Rates (VR1-2014 and VR1-2016). As part of this purchase, the supplier is obligated to supply an $8.1 million Letter of Credit to BPA to give our Tier 2 customers upward price protection should the supplier default prior to completing delivery.
The price paid for this FY 2019 power purchase is comparable to the forward price data for the InterContinental Exchange (ICE) for the week of Feb. 12, 2017. This price is in the mid-twenty dollar range per MWh. Due to Federal Energy Regulatory Commission requirements and Western Systems Power Pool confidentiality requirements with counterparties, the exact purchase price cannot be released until 30 days after the end of the quarter, in this case, after April 30. This information will be made available with the BP-18 Final Rate Proposal in July.