Department of Energy

Bonneville Power Administration
P.O. Box 3621
Portland, Oregon 97208-3621




January 7, 1999

In reply refer to: PL-6


Public Comment Requested
Key Provisions for Subscription Contracts

The Bonneville Power Administration (BPA) recently released the Power Subscription Strategy which includes our decision to bilaterally negotiate Subscription contracts. Many comments we received on the draft proposal (PDF, 27 pages, 94 kb) recommend that BPA provide an opportunity for discussion on contract provisions before these bilateral negotiations begin. In response to these comments, BPA has decided to issue draft language for written public review and comment on the attached three key contract provisions: Cost Recovery, Uncontrollable Forces, and Dispute Resolution.

BPA believes that allowing terms to vary in these key provisions could shift risk between customers, to the advantage of one party based on negotiating ability. We will not seek comment on every contract provision because a standard-form contract is inconsistent with bilaterally-negotiated contracts. BPA also wants to avoid a protracted regional debate and negotiation process on Subscription contract language so bilateral negotiations are not delayed. BPA has already benefited from an extensive regional public process on Subscription starting with the Comprehensive Review in January 1996 and culminating with the Power Subscription Strategy in December 1998.

After considering comment on the three key provisions, we will adopt final language to be consistent in all BPA Subscription contracts, although there may be exceptions such as additions to dispute resolution language for the Slice product. Your comments will help us ensure the language balances regional concerns. BPA will accept comment through February 8, 1999, and will select final language before the start of Subscription, currently scheduled for later in February 1999.

We look forward to receiving your comments, ideas and concerns on the enclosed provisions. Please send comments to Carolyn Whitney - PL-6, BPA Power Business Line, at the above address.


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