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BPA Decides to Use Some Power RDC Funds to Reduce Rates by Elizabeth Ingram HydroWorld, January 12, 2023

The amount above the thresholds can be used for debt reduction, incremental capital investment,
rate reduction through a dividend distribution or any other high-value business-line-specific purpose.

The Bonneville Power Administration has decided to use $350 million of its $500 million of power reserves distribution clause (RDC) funds to reduce power rates.

After considering the feedback received during the comment period, BPA Administrator John Hairston adopted staff's proposal to allocate the Power RDC amount of $500 million toward:

• $350 million to reduce FY 2023 power rates;
• $100 million to reduce debt or for revenue financing; and
• $50 million to prepay certain maintenance needs of existing fish and wildlife mitigation assets.

The amount above the thresholds can be used for debt reduction, incremental capital investment, rate reduction through a dividend distribution or any other high-value business-line-specific purpose determined by the administrator.

"Last year's financial performance created this unique opportunity to provide rate relief to our customers and accelerate funding of meaningful mitigation measures that will help fish and wildlife in the region," said Suzanne Cooper, senior vice president of power services.

Originally scheduled for Dec. 15, 2022, the final decision on the power RDC was delayed to allow time for staff to fully consider and respond to extensive comments received during the public comment period.

BPA, headquartered in Portland, Ore., is a nonprofit federal power marketer that sells wholesale electricity from 31 federal hydroelectric projects and one nuclear plant to 142 Northwest electric utilities, serving millions of consumers and businesses in Washington, Oregon, Idaho, western Montana and parts of California, Nevada, Utah and Wyoming. BPA delivers power via more than 15,000 circuit miles of lines and 259 substations to 490 transmission customers. BPA markets about a third of the electricity consumed in the Northwest and operates three-quarters of the region's high-voltage transmission grid.

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Related Pages:
BPA's $500M Windfall Will Mostly Go To Rate Reductions, Irking Fish, Energy Efficiency Advocates by Pete Danko, Portland Business Journal, 1/11/23
Bonneville Power Administration Proposing Holding Power Fees Flat by Staff, Lake County Examiner, 11/21/22