(PORTLAND, OR) – The
Bonneville Power Administration paid its 35th consecutive U.S. Treasury payment
today. This year’s $862 million payment brings BPA’s cumulative payments to the
Treasury during those 35 years to over $29.8 billion.
“This is a significant
milestone that demonstrates BPA’s ability to meet all of its financial
obligations on an ongoing basis, regardless of changing conditions and
markets,” said Michelle Manary, BPA executive vice president and chief
financial officer. “It’s also important because it provides a full and timely
payment for the benefit of U.S. taxpayers.”
The Treasury payment is
significant because it’s BPA’s lowest priority payment and is made only after
all other financial obligations are paid in the fiscal year. BPA sets its rates
to maintain an annual 97.5 percent probability of making this payment.
This year’s payment includes
$569 million in principal, $226 million in interest and $27 million for
irrigation assistance, which BPA provides to help irrigators repay their share
of certain Reclamation projects.
BPA applied $93 million of
credits toward this year’s Treasury payment. BPA received most of this credit
under a section of the Northwest Power Act as reimbursement for the non-power
share of fish and wildlife costs it pays annually.
In addition to the U.S.
Treasury payment, BPA paid operations and maintenance expenses for the U.S.
Army Corps of Engineers, Bureau of Reclamation and U.S. Fish and Wildlife
Service projects directly funded by BPA. This direct funding amounted to $421
million in fiscal year 2018.
BPA is a self-financed power
marketing administration that receives no annual appropriation funding from
Congress. Instead, BPA primarily recovers its costs through revenues from the
sale of electric power and transmission services.
