Bonneville Power Administration Revises Oversupply Rate Proposal
Conditions can quickly change. BPA will continue to monitor forecasts throughout the spring and will manage oversupply conditions with the most operationally feasible and cost-effective means available. Even with lower streamflows, rapid snowmelt can cause oversupply conditions.
In March 2012, BPA filed the original Oversupply Management Protocol with FERC as Attachment P to its Open Access Transmission Tariff. In that filing, BPA proposed to allocate oversupply costs equally between power customers and generators that elect compensation under the OMP. In December 2012, FERC issued a ruling conditionally accepting the OMP contingent upon BPA’s submitting a different cost allocation methodology within 90 days of the ruling.
Early this year, BPA requested a stay of that order so that it could finish its oversupply rate case, now scheduled to conclude in August, before submitting a cost allocation proposal. FERC accepted this request. On April 12, BPA released a new rate proposal and is seeking comment.
The general public (participants, as opposed to formal parties to the rate case) may submit comments until May 22, 2013.
The rate-setting process will end with the administrator making a decision based on the record developed in the case. BPA expects to issue a final record of decision on August 28, 2013.
In 2011, BPA displaced approximately 97,500 megawatt-hours of generation with energy from the hydroelectric system. BPA’s policy at that time, called Environmental Redispatch, did not include a mechanism to reimburse generators for the cost of displacement. In 2012, the OMP replaced Environmental Redispatch, and BPA displaced approximately 47,000 MWh of generation with energy from the hydroelectric system at a cost of $2.7 million.