Suspending the Financial Reserves Policy Surcharge Customer - - PowerPoint PPT Presentation

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Suspending the Financial Reserves Policy Surcharge Customer - - PowerPoint PPT Presentation

Sep 03, 2023 366 likes •462 views

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N BP-20E Expedited Rate Proposal: Suspending the Financial Reserves Policy Surcharge Customer Workshop June 5, 2020 B B O O N N N N E E V V I I L

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B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

BP-20E Expedited Rate Proposal: Suspending the Financial Reserves Policy Surcharge

Customer Workshop June 5, 2020

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B O N N E V I L L E P O W E R A D M I N I S T R A T I O N B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

  • Describe context
  • Describe the proposal (see Attachment)
  • Discuss rate case schedules
  • Questions?

Purpose of Meeting

June 5, 2020 Pre Decisional. For Discussion Purposes Only. 2

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B O N N E V I L L E P O W E R A D M I N I S T R A T I O N B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

  • Financial Reserves Policy Surcharge (FRP

Surcharge)

– Adopted in BP-20 rate proceeding. – Purpose is to strengthen Bonneville’s financial health by building financial reserves when business unit (power / transmission) is below a 60-days cash threshold. – FRP Surcharge increases power rates by up to $30 million/year and transmission rates by up to $15 million/year if the business unit is below its financial reserves threshold in FY 2020-2021. – FRP Surcharges are included in BP-20 Power and Transmission General Rate Schedule Provisions (GRSPs).

Context

June 5, 2020 Pre Decisional. For Discussion Purposes Only. 3

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B O N N E V I L L E P O W E R A D M I N I S T R A T I O N B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

  • FRP Surcharge Mechanics

– Calculated twice per rate period

  • November 2019 for FY 2020 implementation
  • November 2020 for FY 2021 implementation

– If triggered, surcharge is added to December through September bills of applicable years.

  • FRP Surcharge Implementation

– FY 2020 – FRP Surcharge triggered for Power for $30 million. – FY 2021 – FRP Surcharge expected to trigger for Power for $30 million; it is not expected to trigger for Transmission.

Context Cont’d – FRP Surcharge

June 5, 2020 Pre Decisional. For Discussion Purposes Only. 4

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B O N N E V I L L E P O W E R A D M I N I S T R A T I O N B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

  • Customers requested that Bonneville suspend

the FRP Surcharge while region addresses COVID-19 pandemic, stay-at-home orders, and related issues.

Context Cont’d – Customer request

June 5, 2020 Pre Decisional. For Discussion Purposes Only. 5

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B O N N E V I L L E P O W E R A D M I N I S T R A T I O N B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

  • BP-20E Proposal

– Suspend FRP Surcharge for remainder of BP-20 rate period. – Remove FRP Surcharge language and add provision in GRSPs that states FRP Surcharge will be suspended upon confirmation and approval by FERC. – Minor changes to rates affected by FRP Surcharge suspension. – See attached document for proposed rate language.

  • Scope

– Only issue within scope of proceeding is changes to FRP Surcharge language.

Proposal

June 5, 2020 Pre Decisional. For Discussion Purposes Only. 6

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B O N N E V I L L E P O W E R A D M I N I S T R A T I O N B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

Date (2020) Uncontested Schedule Contested Schedule Monday, June 15 Preview of FRN/Direct Case Preview of FRN/Direct Case Monday, June 22 (approx.) FRN/Direct Case published FRN/Direct Case published Wednesday, June 24 Interventions and Notice of Objection Due Interventions and Notice of Objection Due Thursday, June 25 9:00 am N/A Scheduling Conference (if objection) Thursday, June 25 1:00 pm Prehearing Conference Prehearing Conference Friday, June 26 Participant Comments Due Additional process as needed Monday, June 29 Record of Decision Tuesday, June 30 File record with FERC TBD Record of Decision TBD File record with FERC

Proposed BP-20E Schedules

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B O N N E V I L L E P O W E R A D M I N I S T R A T I O N B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

  • BPA intends to file the BP-20E ROD with FERC on

June 30, 2020, with a request for an effective date

  • f approval of July 1, 2020.
  • FERC has granted Bonneville requests for

expedited review with similar short turnaround in past (e.g., WP-07S Rate Filing).

  • If FERC grants approval with effective date of July 1,

Power customers would see rate reduction in July bills issued in August. Transmission’s FRP did not trigger, therefore there would be no change in Transmission bills.

Post BP-20E Process

June 5, 2020 Pre Decisional. For Discussion Purposes Only. 8

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B O N N E V I L L E P O W E R A D M I N I S T R A T I O N B O N N E V I L L E P O W E R A D M I N I S T R A T I O N

  • Bonneville is seeking customer feedback on this

proposal by Wednesday, June 10, 2020.

  • We are specifically looking for whether

customers intend to object to either the FRP Surcharge suspension proposal or the proposal to use the uncontested schedule.

  • Please submit comments to

TechForum@bpa.gov, with the subject line “BP- 20E Comment.”

Next Steps – Customer Comments

June 5, 2020 Pre Decisional. For Discussion Purposes Only. 9