(PORTLAND, OR) – The Bonneville Power Administration and its
long-term transmission customers successfully negotiated a settlement agreement
to implement a new open access transmission tariff that will go into effect October
1. The tariff defines the terms and conditions of services, products and
network integration offered by BPA.
“This settlement resulted from a collaborative effort and
provides BPA the ability to align its business processes with current and
emerging industry standards,” said BPA Administrator Elliot Mainzer, who signed
the record of decision that adopted both the settlement and new tariff. “Our
customers’ willingness to partner with us and negotiate solutions to complex
issues has resulted in a sustainable path forward for BPA to the benefit of our
customers and the region.”
One of the key changes in the new tariff is the removal of
the requirement to submit all changes to the Federal Energy Regulatory
Commission for review and approval. Due to differences between a typical
FERC-jurisdictional utility and the unique nature and mission of the federal
power marketing agency, BPA was unable to get needed changes and updates to its
tariff approved through FERC. In the fall of 2016, BPA notified the region that
the process to change its existing tariff was no longer a tenable approach.
Additionally, achieving the goals of the BPA 2018-2023 Strategic Plan requires
tariff modernization.
BPA announced its decision to conduct a hearing under
Section 212 of the Federal Power Act to develop a new tariff and launched a
series of workshops in April 2018 to solicit customer feedback on its proposed
tariff changes. From September to November, BPA and its long-term transmission
customers met 22 times to negotiate the terms of a settlement agreement on the
tariff.
Under the terms of the settlement, all of BPA’s long-term
transmission customers have agreed to transition their existing contracts to
the new tariff as of October 1. While not generally under the jurisdiction of
FERC, BPA remains committed to aligning its tariff with FERC’s pro forma tariff
and the best practices of the utility industry. BPA and its customers plan to
conduct regular proceedings, concurrent with BPA rate cases, to continue to
amend and modernize the agency’s tariff.
