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FY 2007 2009
Power Rate Adjustments

BPA's 2007-2009 Wholesale Power Rate Schedules and General Rate Schedule Provisions (GRSPs) took effect on October 1, 2006 and will continue through September 30, 2009 (FY 2007-2009).

During this three-year rate period BPA will examine forecasts and actual loads, market prices, and expenses to assure that BPA is maintaining full cost recovery. If necessary, BPA will adjusts its rates in accordance with the GRSPs through the annual Cost Recovery Adjustment Clause (CRAC), one of the major risk management tools developed during the FY 2002-2006 power rate case. However, BPA is using a single adjustment rather than the three specific adjustments (Load-Based, Safety-Net, and Financial-Based ) as were used for FY 2002-2006. For details about those specific CRACs, see Adjustments (2002-2006) for that rate period.

BPA may also incorporate the NFB1/ Adjustment and/or Emergency NFB1/ Surcharge if necessary. These mechanisms are designed to recover from financial impacts due to specific fish and wildlife costs.

If BPA determines that it has collected excess revenues, determined by year-end accumulated modified net revenues reaching a pre-set threshold, those amounts will be refunded via the Dividend Distribution Clause (DDC).

The CRAC, NFB Adjustment, Emergency NFB surcharge, and DDC are all described in detail in the WP-07 Risk Analysis Study and the GRSPs.

For FY 2007, there are no adjustments or surcharges at this time.

1/ [N]ational Marine Fishery Service [F]ederal Columbia River Power System [B]iological Opinion



Content provided by:  Greg Gustafson, 503-230-5820, gcgustafson@bpa.gov.
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