The
Bonneville Power Administration has paid the U.S. Treasury $886.1 million for
fiscal year 2012, which ended September 30, celebrating 75 years of serving the
Northwest. This marks the 29th consecutive year that BPA has made its scheduled
annual payment on time and in full.
The
annual Treasury payments include principal and interest primarily on the
federal investment in the Federal Columbia River Power System’s power and
transmission facilities.
“While
water volume and power prices are the prime variables in our financial results,
our continued commitment to cost management is the primary reason we have been
able to make our Treasury payment on time and in full every year for nearly
three decades,” said BPA Administrator Steve Wright. “This show of financial
strength demonstrates BPA’s value to the region and beyond.”
The
$886.1 million Treasury payment includes $493.2 million in principal, $358.4
million in interest and $34.5 million for post-retirement benefit programs for
FCRPS employees. The $493.2 million principal payment includes $53 million in
early retirement of Treasury debt (principal repaid earlier than planned) as
part of BPA’s debt optimization program.
BPA
is a self-financed agency that covers its costs with revenues from Northwest
ratepayers and other purchasers of its power and transmission products and
services. BPA receives no annual appropriations from the U.S. Congress. To
safeguard the Treasury and U.S. taxpayers, BPA requires in its rate making
process more than 95 percent certainty of making annual scheduled Treasury payments
over two consecutive years (or 97.5 percent certainty of making the annual
scheduled payments).
