The federal Bonneville Power Administration (BPA) said it plans to build a $185 million, 28-mile high-voltage transmission line to move more energy from east of the Cascade Mountains to load centers in western Oregon and Washington. The Big Eddy-Knight transmission power line would run from BPA’s Big Eddy Substation near The Dalles, OR, to a new substation four miles northwest of Goldendale, WA. Before construction can begin, the U.S. Forest Service (USFS) will conduct a consistency review of the project, which falls within the Columbia River Gorge National Scenic Area. Following the USFS review, BPA will finalize contract terms and obtain all permits and approvals for a project it claims would create up to 100 new construction-related jobs. The project would be financed in part with borrowing authority included in the American Recovery and Reinvestment Act.
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Industry Brief
Moody’s Investor Services downgraded the credit rating of the Bonneville Power Administration (BPA). BPA goes to an “Aa1” rating from “Aaa,” impacting $6.3 billion in outstanding debt. The outlook was set at “stable.” Moody’s said the downgrade reflects BPA’s increased “hydrology and market price risk,” which has eroded its credit quality during the last several years. Financial reserves available to handle increased risk have dropped by 36% during the two-year period ending with fiscal year 2010, Moody’s said. The ratings agency said it expects the challenges for BPA to continue in the form of “low natural gas prices, sustained lower demand and increasing amounts of wind generation during BPA’s peak surplus energy sales season.”
Industry Brief
As the Pacific Northwest’s dominant energy player, the federal Bonneville Power Administration (BPA) has adopted what it described as a landmark settlement on a residential exchange program that it hopes will end years of dispute over how BPA makes low-cost hydroelectric supplies available to small residential and farm customers of investor-owned utilities (IOU). Given the criticism of BPA for shunning natural gas and wind power generators in the face of abundant water supplies this spring and summer, the federal power behemoth is hoping it has a win-win, noting that the deal has the backing of six regional IOUs, three state regulatory commissions, and most public-sector utilities representing 88% of BPA’s customers and 93% of the power consumed in the region. Under the settlement, IOU customers are in line to get about $3.3 billion in payments during a 17-year period, beginning at $182.1 million in fiscal 2012 and increasing to $286.1 million by fiscal 2028.
BPA Interim Decision on Excess Hydro to Cut Wind, Gas
Sparks flew Tuesday between national wind industry interests and the federal Bonneville Power Administration (BPA) over the large Pacific Northwest power market/transporter’s interim decision to temporarily limit nonhydroelectric supplies, such as wind and natural gas-produced power, due to the region’s record-breaking levels of water.
Calpine, BPA Strike Gas ‘Flex’ Deal to Balance Wind Supplies
In another example of natural gas-fired power generation helping smooth out intermittent wind-generated supplies, the federal Bonneville Power Administration (BPA) and independent generator Calpine Corp. announced a new pilot project deal involving 75 MW of “generation flexibility” from a Calpine plant in Oregon.
BPA Warns Of 250%+ Wholesale Rate Hikes
Faced with severe drought conditions and skyrocketing wholesale electricity market prices, the Bonneville Power Administration (BPA) on Monday warned that it may be forced to increase wholesale rates by 250% or more after Oct. 1, unless the region’s retail utilities and large industrial customers step up to the plate and agree to slash energy use within the next 60 days.
BPA Pushes For Additional Load Reductions
Having reached the halfway point of its goal of 2,400 MW of load reductions in the near future, the Bonneville Power Administration’s (BPA) acting administrator Steve Wright earlier this week urged utilities and industries that have yet to commit to reduce their power purchases from BPA to get off the sidelines and do so. Daily GPI April 11
BPA Downgrades Rate Hike Considerably — to 46%
A concerted push by utilities and industries in the Pacific Northwest to implement load reductions means that the Bonneville Power Administration (BPA) will only have to raise wholesale power rates by 46% starting the first of October, a not insubstantial rate hike, but a far cry from the 250% or more increases being bandied about by the BPA just two months ago (see Daily GPI, April 11; June 8).
DeFazio Voices Concerns Over Morgan Stanley Capacity Buy
Rep. Peter DeFazio (D-OR) wants answers from the Bonneville Power Administration (BPA) about Morgan Stanley’s purchase of long-term transmission capacity owned by BPA’s transmission line. Among other things, the Oregon lawmaker argues in a recent letter to BPA’s acting administrator that Morgan Stanley’s utilization of only a small fraction of the capacity it purchased could be a sign that the financial services company is attempting to exert market power.
DeFazio Voices Concerns Over Morgan Stanley Capacity Buy
Rep. Peter DeFazio (D-OR) wants answers from the Bonneville Power Administration (BPA) related to Morgan Stanley’s purchase of long-term transmission capacity owned by BPA’s transmission line. Among other things, the Oregon lawmaker argues in a recent letter to BPA’s acting administrator that Morgan Stanley’s utilization of only a small fraction of the capacity it purchased could be a sign that the financial services company is attempting to exert market power.
