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 L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N Purpose of Meeting • Describe context • Describe the proposal ( see Attachment) • Discuss rate case schedules • Questions? June 5, 2020 Pre Decisional. For Discussion Purposes Only. 2
B B O O N N N N E E V V I I L L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N Context • 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). June 5, 2020 Pre Decisional. For Discussion Purposes Only. 3
B B O O N N N N E E V V I I L L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N Context Cont’d – FRP Surcharge • 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. June 5, 2020 Pre Decisional. For Discussion Purposes Only. 4
B B O O N N N N E E V V I I L L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N Context Cont’d – Customer request • Customers requested that Bonneville suspend the FRP Surcharge while region addresses COVID-19 pandemic, stay-at-home orders, and related issues. June 5, 2020 Pre Decisional. For Discussion Purposes Only. 5
B B O O N N N N E E V V I I L L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N Proposal • 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. June 5, 2020 Pre Decisional. For Discussion Purposes Only. 6
B B O O N N N N E E V V I I L L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N Proposed BP-20E Schedules 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 Interventions and Notice of Objection Due Objection Due Thursday, June 25 N/A Scheduling Conference 9:00 am (if objection) Thursday, June 25 Prehearing Conference Prehearing Conference 1:00 pm Additional process as Friday, June 26 Participant Comments Due needed Monday, June 29 Record of Decision Tuesday, June 30 File record with FERC TBD Record of Decision TBD File record with FERC 7
B B O O N N N N E E V V I I L L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N Post BP-20E Process • BPA intends to file the BP-20E ROD with FERC on June 30, 2020, with a request for an effective date of 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. June 5, 2020 Pre Decisional. For Discussion Purposes Only. 8
B B O O N N N N E E V V I I L L L L E E P P O O W W E E R R A A D D M M I I N N I I S S T T R R A A T T I I O O N N Next Steps – Customer Comments • 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.” June 5, 2020 Pre Decisional. For Discussion Purposes Only. 9
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