The 2018 Financial Plan organizes the statutes and policies that guide BPA’s financial decisions and establishes a set of financial health objectives that are foundational to BPA’s 2018-2023 Strategic Plan. It is an important guiding framework for how BPA will maintain and strengthen its financial health.
The financial health objectives, also outlined in the strategic plan, are to: improve cost-management discipline, build financial resiliency and maintain a strong independent financial health assessment. These objectives will help the agency offer competitive rates and ensure it can withstand market volatility or other disruptive events. The plan also outlines how BPA plans to work with the region to strengthen its financial health.
On March 2, BPA will host a day of workshops, beginning with a high-level industry panel to set the landscape for the detailed workshop discussions to follow. The panel will include rating agency, capital markets and other industry perspectives. Following the panel, the first workshops on the Financial Reserves Policy and Leverage Policy will take place.
The Financial Reserves Policy workshop will discuss how to increase Power’s financial reserves until they reach the minimum of 60 days cash on hand, and how to best leverage financial reserves to manage long-term wholesale market price exposure and promote greater rate stability. The Leverage Policy workshop will introduce the development of a new policy on how BPA may achieve a debt-to-asset ratio of 75 to 85 percent for the agency and each business line within 10 years. Details on the workshop times will be available on the event calendar.