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​Reserves Distribution Clause

​A reserves distribution clause, or RDC, is triggered when both a business line's financial reserves and the agency's financial reserves are above their upper thresholds. When the RDC triggers, the administrator has discretion over when and how the additional funds should be used, such as for rate relief or early debt repayment.

When a RDC is triggered, BPA will host a workshop no later than Sept. 28 to discuss the amount of the RDC, how the funds will be used and to review the calculation and methodology that triggered the decision.

BPA is not triggering a RDC for fiscal year 2019.