Risk Mechanisms
During the FY 2024-25 rate period, power and/or transmission rates may be adjusted each fiscal year in accordance with the respective Cost Recovery Adjustment Clause (CRAC), the Reserves Distribution Clause (RDC), and the Financial Reserves Policy (FRP) Surcharge provisions (see Power General Rate Schedule Provisions, sections II.O, II.P, and II.Q and Transmission General Rate Schedule Provisions, sections II.G, II. H, and II.I).
Power Reserves Distribution Clause (RDC)
FY 2023 Reserves Distribution Clause (RDC)
The Power RDC is triggering based on fiscal year 2023 end-of-year results. The preliminary Power RDC Amount is $285.4 million. See Finance QBR/T page for more information.
Final determination of the Power RDC Amount and use of the RDC Amount will occur by Dec. 15, 2023.
Power RDC
BPA is proposing that $165.4 million of the $285.4 million Power RDC Amount would reduce rates in FY 2024 through a Power Dividend Distribution. A Dividend Distribution would result in a credit that is applied to December 2023 through September 2024 customer bills.
Power Dividend Distribution: The preliminary FY 2024 non-Slice rate credit is $4.34 per megawatt-hour for the last 10 months of the fiscal year (equivalent to an annual reduction of $3.64 per megawatt-hour). This would reduce the average non-Slice rate by 11.20% compared to the BP-24 Final Proposal. The Power DD credit rate is calculated in accordance with the BP-24 Power Rate Schedules and General Rate Schedule Provisions (GRSP section II.P.2) and would be used to bill PF and IP customers. The rate would also adjust the December 2023 – September 2024 PF Tier 1 Equivalent energy rates.
