BPA Fish and Wildlife April 2018 B O N N E V I L L E P O - - PowerPoint PPT Presentation

BPA Fish and Wildlife

April 2018

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

• Integrated program –The Fish and Wildlife program funds several

hundred mitigation projects annually to meet both BPA’s Northwest Power Act and Endangered Species Act obligations.

• Debt service – The amortization, depreciation and interest

payments for investments directly funded through BPA borrowing, as well as capital investments by the Corps and Reclamation funded by the U.S. Treasury and reimbursed by BPA.

• Fish-related O&M (“reimbursable expenses”) – The hydroelectric

share of O&M and other non-capital expenditures for fish and wildlife activities by the Corps and Reclamation (i.e., O&M of fish facilities at the federal mainstem dams and Corps/Reclamation mitigation hatcheries), and U.S. Fish & Wildlife Service (for hatcheries under the Lower Snake River Compensation Plan – 11 hatcheries and 18 satellite facilities).

• River operations – The power production effects of river
• perations required by NOAA Fisheries and USFWS biological
• pinions.

Financial components of BPA’s F&W program

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 3

Percentage of spending categories allocated to F&W

FY 2016-2017 BP-16 Final ROD

($ in millions)

Depreciation and interest on USACE / Reclamation / USF&WS capital F&W investments (based on plant in service) Depreciation and interest on BPA direct program capital F&W investments UNSLICED annual average hydro operations effects (Power purchases and foregone revenues) Integrated program NWPCC – annual average US Fish & Wildlife Service – annual average

Lower Snake Compensation Plan

Corps of Engineers O&M – annual average Reclamation O&M – annual average

100% 50% 100% ~19% ~4%

271 6 33 49 6 200 171 736

Total $

245 5 31 47 5 291 146 770

FY 2014-2015 actuals

($ in millions)

277 6 34 50 7 223 152 749

FY 2018-2019 BP-18 Final ROD

($ in millions) This information has been made publicly available by BPA on July 13, 2017 and contains information not reported in agency financial statements.

Total annual average cost of BPA fish and wildlife actions

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

LSRCP annual expenditures

4

• $5,000,000

$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Budget Actuals

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

Mid-C Market vs Priority Firm Power Rates

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 declining

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

• August 2017: Significant fish and wildlife environmental costs is a

credit challenge

• “BPA faces conflicting uses of the Columbia River and

environmental regulations, such as the Endangered Species Act (ESA), that contributes significantly to BPA’s costs and weighs heavily on BPA’s cash flows. Biological opinions prepared by National Oceanic and Atmospheric Administration Fisheries Service and the US Fish and Wildlife Service mandate actions to protect fish species resulting in direct costs such as hatcheries and indirect loss

• f revenue from hydro dam operational changes.”

Moody’s credit rating

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

• Current interagency agreement expires in September 2018

– 3 year extension – Clearly define roles and responsibilities across programs – Benchmark and measure program performance – Increase transparency and accountability – Identify opportunities for efficiency

• Potential long-term (10 year) extension in 2021

– Greater certainty of funding for O&M

• Asset management

– Non-recurring maintenance

LSRCP Funding Agreement

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

Roles and responsibilities

Thanks Rod Engle!

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

Benchmarking

• Identify efficiencies from LSRCP Hatchery Programs that can be

exported to BPA’s Direct Funded Hatchery Programs.

• Identify efficiencies from BPA’s Direct Funded Hatchery programs

that can be imported to LSRCP Hatchery Programs.

• Identify opportunities to apply existing LSRCP funding to reduce

long term O&M costs.

– Fish Food – Electricity – Asset Management

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

Springfield Hatchery Estimated Feed Costs

Brood Y d Year ear A A Projec ected F ed Feed N eed Needed and A eeded and Associat ated C ed Cost F From S Swim-up T up Thr hrough E ugh End o nd of C Cont ntrac act P Per eriod Costing Based on FY17 EWOS Pricing

Feed Order by Bag

Size of food Fish size (fish/lb) Starting Biomass (lbs) Ending Biomass (lbs) Weight gained (lbs) Expected Conversio n Amount of feed needed (LBS) # of Bags Size of feed # of bags Cost

O Starter start-800 181.8 1,250.0 1,068.2 0.7 747.7 17.0 O Starter 20 $1,599.47 0/1 Starter 800-600 1,250.0 1,666.7 416.7 0.7 291.7 6.6 1 Starter 46 $3,617.29 1 Starter 600-300 1,666.7 3,333.3 1,666.7 0.75 1,250.0 28.4 2 Starter 90 $7,085.42 1/2 Starter 300-200 3,333.3 5,000.0 1,666.7 0.75 1,250.0 28.4 1.2 mm 144 $10,513.33 2 Starter 200-120 5,000.0 8,333.3 3,333.3 0.8 2,666.7 60.6 1.5 mm 170 $10,125.00 2 Starter/1.2 mm 120-100 8,333.3 10,000.0 1,666.7 0.8 1,333.3 30.3 1.2 mm 100-60 10,000.0 16,666.7 6,666.7 0.85 5,666.7 128.8 1.5 mm 60-40 16,666.7 25,000.0 8,333.3 0.9 7,500.0 170.5 Tota tal C l Cost B t BY A A: $32, $32,940. 940.52 52 20,706.1 Brood Y d Year ear B B Projec ected F ed Feed N eed Needed and A eeded and Associat ated C ed Cost F From S Star art T Thr hrough E ugh End o nd of C Cont ntrac act P Per eriod Costing Based on FY17 EWOS Pricing

Feed Order by Bag

Size of food Fish size (fish/lb) Starting biomass Ending biomass Weight gained Expected Conversio n Amount of feed (LBS) # of Bags Size of feed # of bags Cost

1.5 mm 40-20 25,000.0 50,000.0 25,000.0 0.95 23,750.0 539.8 1.5 mm 540 $32,062.50 2.0 mm 20-release 50,000.0 100,000.0 50,000.0 0.95 47,500.0 1,079.5 2.0 mm 1080 $60,325.00

71,250.0

Tota tal C l Cost B t BY B B: $92, $92,387. 387.50 50

Estimat ated S ed Shi hippi pping: ng: $7, $7,200. 200.00 00

91,956.1

Tota tal C l Contr tract P t Perio iod C Cost: t: $132, $132,528. 528.02 02

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

$0.00 $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00 $300,000.00 $350,000.00 $400,000.00 $450,000.00 $500,000.00

LSRCP Annual Electric Costs

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

Bryan K. Mercier Executive Manager | Fish and Wildlife BONNEVILLE POWER ADMINISTRATION P 503-230-3991 | C 503-358-2911 bkmercier@bpa.gov

Questions?