Dividend Distribution Clause (DDC)
(updated October 5, 2001)
The dividend distribution clause, or DDC, allows BPA to distribute rebates to customers if accumulated net revenues at the end of the prior year exceed a pre-set threshold. The DDC is not available in the first year of the rate period. It triggers if the annual accumulated net revenue is:
- $993 million for the end of FY 2002 (for distribution beginning in FY 2003);
- $735 million for the end of FY 2003;
- $401 million for end of FYs 2004-2005.
The first $15 million of any accumulated net revenues in excess of the threshold is available for customers participating in the Conservation and Renewables (C&R) Discount. The remaining amount is distributed to eligible customers based on the amount of money they have paid in power bills (including CRAC revenues but excluding Slice revenues) since the beginning of the rate period, or the last DDC, whichever is later. IOU financial benefit is included. The rebate will take the form of a credit against power bills over a 12-month period.
No later than August 31 of each year, BPA posts a forecast of the adjusted annual net revenues on its web site for the fiscal year ending September 30. In January, the administrator determines whether BPA's actual adjusted annual net revenues exceeded the DDC threshold. If the threshold is exceeded, in January the administrator will notify all power customers and rate case parties that the AANR threshold has been exceeded. BPA will then provide DDC calculations to power customers and rate case parties in February, and hold a public review and comment forum prior to March 15. The administrator will issue a final decision on the power customers DDC percentage to be applied to each applicable firm power rate schedule around April 15.
Content provided by: Greg Gustafson, 503-230-5820, firstname.lastname@example.org.
Page maintained by: BPA Web Team.