Fiscal Year (FY) 2024-2025 Proposed Power and Transmission Rate Adjustments Public Hearing and Opportunities for Public Review and Comment, 69259-69265 [2022-25196]

Agencies

• Bonneville Power Administration
• DEPARTMENT OF ENERGY

[Federal Register Volume 87, Number 222 (Friday, November 18, 2022)]
[Notices]
[Pages 69259-69265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25196]



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DEPARTMENT OF ENERGY

Bonneville Power Administration

[BPA File No. BP-24]


Fiscal Year (FY) 2024-2025 Proposed Power and Transmission Rate 
Adjustments Public Hearing and Opportunities for Public Review and 
Comment

AGENCY: Bonneville Power Administration (Bonneville or BPA), Department 
of Energy (DOE).

ACTION: Notice of FY 2024-2025 proposed power and transmission rate 
adjustments.

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SUMMARY: Bonneville is initiating a rate proceeding under the Northwest 
Power Planning and Conservation Act (Northwest Power Act) to establish 
power, transmission, and ancillary and control area services rates for 
the period from October 1, 2023, through September 30, 2025. Bonneville 
has designated this proceeding Docket No. BP-24.

DATES: 
    Prehearing Conference: The BP-24 proceeding begins with a 
prehearing conference, which will be held via telephone at 10:00 a.m. 
on Friday, December 2, 2022.
    Intervention: Anyone intending to become a party to the BP-24 
proceeding must file a petition to intervene on Bonneville's secure 
website. Petitions to intervene may be filed beginning on the date of 
publication of this Notice and are due no later than 4:30 p.m. on 
Monday, December 5, 2022. Part III of this notice, ``Public 
Participation in BP-24,'' provides details on requesting access to the 
secure website and filing a petition to intervene.

ADDRESSES: Interested parties may obtain the call-in information by 
accessing Bonneville's BP-24 web page at https://www.bpa.gov/goto/bp24 
or by contacting the Hearing Clerk at [email protected].
    Participant Comments: Written comments by non-party participants 
must be received by Friday, December 9, 2022, to be considered in the 
Administrator's Record of Decision (ROD). Part III of this notice, 
``Public Participation in BP-24,'' provides details on submitting 
participant comments.

FOR FURTHER INFORMATION CONTACT: Ms. Elissa Haley, DKS-7, BPA 
Communications, Bonneville Power Administration, P.O. Box 3621, 
Portland, Oregon 97208; by phone toll-free at 1-800-622-4519; or by 
email to [email protected].
    The Hearing Clerk for this proceeding can be reached via email at 
[email protected] or via telephone at (503) 479-8506.
    Please direct questions regarding Bonneville's secure website to 
the Hearing Coordinator via email at [email protected] or, if the 
question is time-sensitive, via telephone at (503) 230-5107.
    Responsible Officials: Mr. Daniel H. Fisher, Power Rates Manager, 
is the official responsible for the development of Bonneville's power 
rates, and Ms. Rebecca E. Fredrickson, Manager of Transmission Rates, 
Tariff, Regulatory and Compliance, is the official responsible for the 
development of Bonneville's transmission, ancillary, and control area 
services rates.

SUPPLEMENTARY INFORMATION: 

Table of Contents

Part I. Introduction and Procedural Matters
Part II. Scope of BP-24 Rate Proceeding
Part III. Public Participation in BP-24
Part IV. Summary of Rate Proposals
Part V. Proposed BP-24 Rate Schedules

Part I--Introduction and Procedural Matters

A. Introduction

    The Northwest Power Act provides that Bonneville must establish, 
and periodically review and revise, its power and transmission rates so 
that they recover, in accordance with sound business principles, the 
costs associated with the acquisition, conservation, and transmission 
of electric power, including amortization of the Federal investment in 
the Federal Columbia River Power System (FCRPS) over a reasonable 
number of years, and Bonneville's other costs and expenses. Section 
7(i) of the Northwest Power Act requires that Bonneville's rates be 
established according to certain procedures, including publication in 
the Federal Register, of a notice of the proposed rates and one or more 
hearings conducted as expeditiously as practicable by a Hearing Officer 
to develop a full and complete record for a final decision by the 
Administrator. Bonneville is conducting the BP-24 proceeding to 
establish rates for FY 2024-2025.
    Bonneville's Rules of Procedure will govern the BP-24 proceeding. 
The rules are posted on Bonneville's website at https://www.bpa.gov/energy-and-services/rate-and-tariff-proceedings/rules-of-procedure-revision-process.

B. 2022 Integrated Program Review

    Bonneville's Integrated Program Review (IPR) process is designed to 
allow the public an opportunity to review and comment on Bonneville's 
expense and capital cost forecasts before the forecast costs are used 
to set rates. Bonneville's 2022 IPR process, which addressed the 
expense and capital program level cost forecasts for FY 2024-25, began 
in June 2022 and concluded with the issuance of the Final Close-Out 
Report in October 2022. At the discretion of the Administrator, 
Bonneville may hold additional processes to review these forecasts 
outside of the BP-24 rate proceeding.

C. Proposed Settlement of Rates for Power Sales and Transmission, 
Ancillary, and Control Area Services

    Since August, Bonneville has been engaged in discussions with 
customers and other stakeholders to attempt to reach agreement on the 
proposed power and transmission rates, including ancillary and control 
area services rates, for the FY 2024-2025 rate period. These 
discussions have resulted in the BP-24 Rates Settlement, which includes 
the FY 2024-2025 rates and other terms that Bonneville is proposing to 
adopt in the BP-24 proceeding. A summary of Bonneville's proposed power 
and transmission rates is provided in Part IV of this notice. A link to 
the BP-24 Rates Settlement is provided in Part V.
    The BP-24 Rates Settlement calls for Bonneville to file a motion 
with the BP-24 Hearing Officer to establish a deadline for parties in 
the BP-24 proceeding to either object to the proposed settlement or 
waive the right to contest the settlement. Bonneville intends to file 
its motion soon after the BP-24 prehearing conference. If no party in 
the BP-24 proceeding objects to the BP-24 Rates Settlement, Bonneville 
staff will continue moving forward with the proposal that the 
Administrator adopt the settlement. If a party objects to the BP-24 
Rates Settlement, Bonneville will notify all parties and decide how to 
proceed with respect to rates proposed in the initial proposal.

D. Proposed Procedural Schedule

    A proposed schedule for the BP-24 proceeding is provided below, 
which assumes the BP-24 Rates Settlement proceeds without objection. 
The official schedule will be established by the Hearing Officer and 
may be amended by the Hearing Officer as needed during the proceeding.

Prehearing Conference--December 2, 2022.
BPA Files Initial Proposal--December 2, 2022.
Deadline for Petitions to Intervene--December 5, 2022.
Deadline for Objections to Settlement Agreement--December 9, 2022.

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Close of Participant Comments--December 9, 2022.
Final ROD and Final Studies Issued--February 9, 2023.

E. Ex Parte Communications

    Section 1010.5 of Bonneville's Rules of Procedure prohibits ex 
parte communications. Ex parte communications include any oral or 
written communication (1) relevant to the merits of any issue in the 
proceeding; (2) that is not on the record; and (3) with respect to 
which reasonable prior notice has not been given. The ex parte rule 
applies to communications with all Bonneville and DOE employees and 
contractors, the Hearing Officer, and the Hearing Clerk during the 
proceeding. Except as provided, any communications with persons covered 
by the rule regarding the merits of any issue in the proceeding by 
other executive branch agencies, Congress, existing or potential 
Bonneville customers, nonprofit or public interest groups, or any other 
non-DOE parties are prohibited. The rule explicitly excludes and does 
not prohibit communications (1) relating to matters of procedure; (2) 
otherwise authorized by law or the Rules of Procedure; (3) from or to 
the Federal Energy Regulatory Commission (Commission); (4) that all 
litigants agree may be made on an ex parte basis; (5) in the ordinary 
course of business, about information required to be exchanged under 
contracts, or in information responding to a Freedom of Information Act 
request; (6) between the Hearing Officer and Hearing Clerk; (7) in 
meetings for which prior notice has been given; or (8) as otherwise 
specified in Section 1010.5(b) of Bonneville's Rules of Procedure. The 
ex parte rule remains in effect until the Administrator's Final ROD is 
issued.

Part II--Scope of BP-24 Rate Proceeding

A. Joint Rate Proceeding

    The BP-24 proceeding is a joint proceeding for the adoption of both 
power and transmission rates for FY 2024-2025 (see Parts IV and V). 
This section provides guidance to the Hearing Officer regarding the 
scope of the rate proceeding and identifies specific issues that are 
outside the scope. In addition to the issues specifically listed below, 
any other issue that is not a ratemaking issue is outside the scope of 
this proceeding.
    Bonneville may revise the scope of the proceeding to include new 
issues that arise as a result of circumstances or events occurring 
outside the proceeding that are substantially related to the rates 
under consideration in the proceeding. See Rules of Procedure, Section 
1010.4(b)(8)(iii), (iv). If Bonneville revises the scope of the 
proceeding to include new issues, Bonneville will provide public notice 
on its website, present testimony or other information regarding such 
issues, and provide a reasonable opportunity to intervene and respond 
to Bonneville's testimony or other information. Id.
1. Expense and Capital Cost Forecasts
    Bonneville's forecasts of its expense and capital costs are not 
determined in rate proceedings. Bonneville develops these forecasts for 
the purposes of setting rates in external processes, such as the IPR 
process described previously, with input from stakeholders. These 
forecasts are used in Bonneville's ratemaking, but do not establish 
Bonneville's budgets or spending levels for any program. Adjustments 
to, and selection of, projects for Bonneville's actual spending levels 
for its programmatic spending, including fish and wildlife spending, 
occur through the yearly budgetary review process, which includes 
submission of Bonneville's budget to Congress.
    Bonneville also depreciates the capital spending on the Federal 
power and transmission systems over the service lives of the associated 
assets. Power's investments are depreciated over fixed periods. 
Transmission's depreciation is based on a depreciation study calculated 
consistent with industry standards. The service lives of power and 
transmission assets, as well as the depreciation study and resulting 
depreciation rates, are not determined in rate proceedings.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seek to raise issues 
with or challenge the appropriateness or reasonableness of: (1) the 
Administrator's forecasts of cost and spending levels, (2) the 
identification of projects used in Bonneville's cost forecasts,; or (3) 
any decisions on the depreciation rates that are used to calculate 
depreciation expense. If any re-examination of cost forecasts is 
necessary, such re-examination will occur outside of the rate 
proceeding.
    The exclusion does not extend to those portions of the revenue 
requirement related to the following: (1) interest rate forecasts, (2) 
interest expense and credit, (3) Treasury repayment schedules, (4) 
calculation of depreciation and amortization expense, (5) forecasts of 
system replacements used in repayment studies, (6) purchased power 
expenses, (7) transmission cost incurred by Power Services, (8) 
generation cost incurred by Transmission Services, (9) minimum required 
net revenue, and (10) the costs of risk mitigation actions resulting 
from the expense and revenue uncertainties included in the risk 
analysis.
2. Federal and Non-Federal Debt Service and Debt Management
    During the 2022 IPR process and in other forums, Bonneville 
provided the public with background information on Bonneville's 
internal Federal and non-Federal debt management policies and 
practices. While these policies and practices are not decided in the 
IPR process, these discussions were intended to inform interested 
parties about these matters so the parties would better understand 
Bonneville's debt structure. Bonneville's debt management policies and 
practices remain outside the scope of the rate proceeding.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seeks in any way to 
address the appropriateness or reasonableness of Bonneville's debt 
management policies and practices. This exclusion does not encompass 
how debt management actions are reflected in ratemaking.
3. Financial and Accounting Policies and Practices
    Bonneville's Financial Plan outlines objectives to sustain the 
agency's financial strength and resiliency. The Financial Plan focuses 
on four main areas: cost management; debt utilization; debt capacity; 
and liquidity. Bonneville has adopted certain financial policies to 
help further its financial objectives. Bonneville's Financial Reserves 
Policy establishes lower and upper thresholds for agency and business 
line financial reserves and parameters for actions to be taken when 
financial reserves are above or below the thresholds. Bonneville's 
Sustainable Capital Financing Policy guides BPA's use of debt and 
revenue financing to finance its capital investments. The terms of 
Bonneville's Financial Plan and Policies, along with Bonneville's 
internal financial and accounting policies and practices, are outside 
the scope of the BP-24 proceeding.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seeks in any way to 
visit or revisit the terms of

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Bonneville's Financial Plan, Financial Reserves Policy, Sustainable 
Capital Financing Policy, internal financial and accounting policies 
and practices, and previous decisions regarding the adoption and 
implementation of the Financial Plan and Policies.
4. Tiered Rate Methodology (TRM)
    The TRM restricts Bonneville and its customers with Contract High 
Water Mark (CHWM) contracts from proposing changes to the TRM's 
ratemaking guidelines unless certain procedures have been successfully 
concluded. No proposed changes have been subjected to the required 
procedures.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seeks in any way to 
propose revisions to the TRM made by Bonneville, customers with CHWM 
contracts, or their representatives. This exclusion does not extend to 
a party or customer that does not have a CHWM contract.
5. Rate Period High Water Mark (RHWM) Process
    The RHWM Process preceded the start of the BP-24 proceeding. In 
that process, as directed by the TRM, Bonneville established FY 2024-
2025 RHWMs for Public customers that signed contracts for firm 
requirements power service providing for tiered rates, referred to as 
CHWM contracts. Bonneville established the maximum planned amount of 
power a customer is eligible to purchase at Tier 1 rates during the 
rate period, the Above-RHWM Loads for each customer, the System Shaped 
Load for each customer, the Tier 1 System Firm Critical Output, RHWM 
Augmentation, the Rate Period Tier 1 System Capability (RT1SC), and the 
monthly/diurnal shape of RT1SC. The RHWM Process provided customers an 
opportunity to review, comment on, and challenge Bonneville's RHWM 
determinations.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seeks in any way to 
visit or revisit Bonneville's determination of a customer's FY 2024-
2025 RHWM or other RHWM Process determinations.
6. 2008 Average System Cost Methodology (2008 ASCM) and Average System 
Cost Determinations
    Section 5(c) of the Northwest Power Act established the Residential 
Exchange Program, which provides benefits to residential and farm 
consumers of Pacific Northwest utilities based, in part, on a utility's 
``average system cost'' (ASC) of resources. The 2008 ASCM is not 
subject to challenge or review in a Section 7(i) proceeding. 
Determinations of the ASCs of participating utilities are made in 
separate processes conducted pursuant to the ASCM. Those processes 
began with ASC filings on June 1, 2022, and concluded in October 2022, 
with the publication of the Final ASC Reports.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seeks in any way to 
visit or revisit the appropriateness or reasonableness of the 2008 ASCM 
or of any of the ongoing ASC determinations.
7. 2012 Residential Exchange Program Settlement Agreement (2012 REP 
Settlement)
    On July 26, 2011, the Administrator executed the 2012 REP 
Settlement, which resolved longstanding litigation over Bonneville's 
implementation of the Residential Exchange Program (REP) under Section 
5(c) of the Northwest Power Act, 16 U.S.C. 839c(c). The Administrator's 
findings regarding the legal, factual, and policy challenges to the 
2012 REP Settlement are explained in the REP-12 Record of Decision 
(REP-12 ROD). The Administrator's decisions regarding the 2012 REP 
Settlement and REP-12 ROD were upheld by the U.S. Court of Appeals for 
the Ninth Circuit in Ass'n of Pub. Agency Customers v. Bonneville Power 
Admin., 733 F.3d 939 (9th Cir. 2013). Challenges to Bonneville's 
decision to adopt the 2012 REP Settlement and implement its terms in 
Bonneville's rate proceedings are not within the scope of this 
proceeding.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seeks in any way to 
visit or revisit in this rate proceeding Bonneville's determination to 
adopt the 2012 REP Settlement or its terms.
8. Service to the Direct Service Industries (DSIs)
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seeks in any way to 
revisit the appropriateness or reasonableness of Bonneville's decisions 
regarding service to the DSIs, including Bonneville's decision to offer 
contracts to the DSIs and the method, level of service, or other terms 
embodied in the existing DSI contracts.
9. Operation and Maintenance of the Power and Transmission Systems
    Bonneville operates and maintains the Federal Columbia River 
Transmission System and, in coordination with other Federal entities, 
the FCRPS in accordance with good utility practice and with applicable 
reliability standards and operating requirements. Bonneville's power 
and transmission systems operation and maintenance practices and 
protocols, such as dispatcher standing orders, operating instructions, 
reliability of the system, compliance programs, and other operating 
requirements, are non-rate matters.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seeks in any way to 
address issues regarding operation and maintenance practices and 
protocols.
10. Terms and Conditions of Transmission Service
    Bonneville offers and provides transmission services, including 
interconnection service, and ancillary and control area services in 
accordance with the terms and conditions specified in its open access 
transmission tariff (Tariff), business practices, and applicable 
contracts. In addition to and concurrent with this rate proceeding, 
Bonneville is initiating the TC-24 proceeding to modify the Tariff 
terms and conditions. Bonneville's business practices provide 
implementation details for the Tariff. Bonneville's decisions regarding 
the business practices are determined in other forums and follow the 
procedures in Bonneville's Business Practice Process posted on its 
website. The Tariff terms and conditions, business practices, and the 
contracts and contract disputes between Bonneville and its customers 
are outside the scope of the BP-24 rate proceeding.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seeks in any way to 
address issues regarding terms and conditions of transmission service, 
including interconnection service, and ancillary and control area 
services. This includes, but is not limited to, argument, testimony, or 
other evidence regarding Bonneville's decisions whether to offer 
particular transmission services, the terms and conditions for

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participating in the EIM, the procedures and standards for 
modifications to Bonneville's Tariff or business practices, and whether 
to include certain terms and conditions in the Tariff or in business 
practices.
11. Oversupply Management Protocol
    The proposed OS-24 Oversupply rate is a formula rate designed to 
recover Bonneville's actual oversupply costs incurred during the BP-24 
rate period. Bonneville incurs oversupply costs pursuant to the 
Oversupply Management Protocol, Attachment P of Bonneville's Tariff.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seeks in any way to 
address the terms of the Oversupply Management Protocol; whether the 
Oversupply Management Protocol complies with orders of the Commission; 
and whether Bonneville took all actions to avoid using the Oversupply 
Management Protocol, including the payment of negative prices to 
generators outside of Bonneville's balancing authority area. This 
exclusion does not extend to issues concerning the rates for recovering 
the costs of the Oversupply Management Protocol.
12. Market Initiatives and Regional Carbon Policies
    Bonneville is engaged in a number of market initiatives that are 
outside of the scope of this proceeding. These include (1) the Western 
Energy Imbalance Market (EIM), which is an extension of the California 
Independent System Operator's (CAISO) real-time market; (2) the Western 
Resource Adequacy Program (WRAP); and (3) regional cap and trade 
policies.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seeks in any way to 
raise or revisit Bonneville's decision to join the EIM, the WRAP, or 
review or address Bonneville's position on regional cap and trade 
policies. This exclusion does not extend to issues concerning rate 
incentives and the recovery or distribution of EIM-related, carbon-
related, and WRAP-related costs or credits, which are within the scope 
of the BP-24 proceeding.
13. Potential Environmental Impacts, Biological Constraints, and 
Related Operations
    Environmental impacts are addressed in a National Environmental 
Policy Act (NEPA) process Bonneville conducts concurrent with the rate 
proceeding. See Section II.B of this notice. In addition, biological 
constraints on hydropower operations are determined outside of the rate 
case through processes such as intra-agency consultations under the 
Endangered Species Act, 16 U.S.C. 1536(a)(2). Finally, implementation 
of the decision regarding operations, maintenance and configuration 
(management) of the Columbia River System evaluated in the Columbia 
River System Operations Environmental Impact Statement (CRSO EIS) and 
associated joint ROD with the U.S. Army Corps of Engineers and Bureau 
of Reclamation, and associated biological opinions, court orders, and 
other agreements, are also not issues to be addressed in this 
proceeding.
    Pursuant to Section 1010.4(a)(8) of Bonneville's Procedures, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that seeks in any way to 
address the potential environmental impacts of the rates being 
developed in this rate proceeding, potential biological effects of 
operations modeled in the proceeding, the appropriate hydroelectric 
constraints defined in these environmental compliance processes, or the 
operations, maintenance, and configuration, (management) assumptions, 
studies, decisions, or matters addressed in the CRSO EIS or CRSO EIS 
joint ROD and associated biological opinions, court orders, and other 
agreements.

B. The National Environmental Policy Act

    Bonneville is in the process of assessing the potential 
environmental effects of its proposed power and transmission rate 
adjustments, consistent with NEPA. The NEPA process is conducted 
separately from the rate proceeding. As discussed above, all evidence 
and argument addressing potential environmental impacts of the rate 
adjustments being developed in the BP-24 rate proceeding are excluded 
from the rate proceeding record. Instead, comments on environmental 
effects should be directed to the NEPA process.
    Based on its most current assessment of the proposed power and 
transmission rate adjustments, Bonneville believes this proposal may be 
the type of action typically excluded from further NEPA review pursuant 
to U.S. DOE NEPA regulations, which apply to Bonneville. More 
specifically, the proposal appears to solely involve changes to 
Bonneville's rates and other cost recovery and management mechanisms to 
ensure that there are sufficient revenues to meet Bonneville's 
financial obligations and other costs and expenses, while using 
existing generation sources operating within normal limits. As such, it 
appears this rate proposal falls within Categorical Exclusion B4.3, 
found at 10 CFR part 1021, subpart D, app. B4.3 (2015), which provides 
for the categorical exclusion from further NEPA review of ``[r]ate 
changes for electric power, power transmission, and other products or 
services provided by a Power Marketing Administration that are based on 
a change in revenue requirements if the operations of generation 
projects would remain within normal operating limits.''
    Nonetheless, Bonneville is still assessing the proposal, and, 
depending upon the ongoing environmental review, Bonneville may instead 
issue another appropriate NEPA document. Comments regarding the 
potential environmental effects of the proposal may be submitted to 
Katey Grange, NEPA Compliance Officer, EC-4, Bonneville Power 
Administration, 905 NE 11th Avenue, Portland, Oregon 97232, and to 
[email protected]. Any such comments received by the comment deadline 
for Participant Comments identified in Section III.A of this notice 
will be considered by Bonneville's NEPA compliance staff in the NEPA 
process that is being conducted for this proposal.

Part III--Public Participation in BP-24

A. Distinguishing Between ``Participants'' and ``Parties''

    Bonneville distinguishes between ``participants in'' and ``parties 
to'' the BP-24 proceeding. Separate from the formal hearing process, 
Bonneville will receive written comments, views, opinions, and 
information from participants who may submit comments without being 
subject to the duties of, or having the privileges of, parties. 
Participants are not entitled to participate in the prehearing 
conference; may not cross-examine parties' witnesses, seek discovery, 
or serve or be served with documents; and are not subject to the same 
procedural requirements as parties. Bonneville customers whose rates 
are subject to this proceeding, or their affiliated customer groups, 
may not submit participant comments. Members or employees of 
organizations that have intervened in the proceeding may submit 
participant comments as private individuals (that is, not speaking for 
their organizations) but may not use the comment

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procedures to address specific issues raised by their intervener 
organizations.
    Written comments by participants will be included in the record and 
considered by the Administrator if they are received by Friday, 
December 9, 2022. Participants should submit comments through 
Bonneville's website at www.bpa.gov/comment or by hard copy to: BPA 
Public Involvement, DKE-7, Bonneville Power Administration, P.O. Box 
3621, Portland, Oregon 97208. All comments should contain the 
designation ``BP-24'' in the subject line.

B. Interventions

    Any entity or person intending to become a party in the BP-24 
proceeding must file a petition to intervene through Bonneville's 
secure website (https://ratecase.bpa.gov/). A first-time user of 
Bonneville's secure website must create a user account to submit an 
intervention. Returning users may request access to the BP-24 
proceeding through their existing accounts, and may submit 
interventions once their permissions have been updated. The secure 
website contains a link to the user guide, which provides step-by-step 
instructions for creating user accounts, generating filing numbers, 
submitting filings, and uploading interventions. Please contact the 
Hearing Coordinator via email at [email protected] or, if the question 
is time-sensitive, via telephone at (503) 230-5107, with any questions 
regarding the submission process.
    All petitions to intervene must be submitted through the BP-24 
proceeding secure website by the deadline established in the procedural 
schedule. Late interventions are strongly disfavored. Petitions to 
intervene must conform to the format and content requirements in 
Sections 1010.6 and 1010.11 of Bonneville's Rules of Procedure. 
Petitions must state the name and address of the entity or person 
requesting party status and the entity or person's interest in the 
hearing.
    The Hearing Officer will rule on all petitions to intervene. 
Bonneville customers and affiliated customer groups will be granted 
intervention based on petitions filed in conformance with the Rules of 
Procedure. Other petitioners must explain their interests in sufficient 
detail to permit the Hearing Officer to determine whether the 
petitioners have a relevant interest in the hearing.
    Bonneville or any party may oppose a petition to intervene. The 
deadline for opposing a timely petition to intervene is two business 
days after the deadline for filing the petition. Opposition to an 
untimely petition to intervene must be filed within two business days 
after service of the petition.

C. Developing the Record

    The hearing record will include, among other things, the 
transcripts of the hearing, written evidence and argument entered into 
the record by Bonneville and the parties, written comments from 
participants, and other material accepted into the record by the 
Hearing Officer. The Hearing Officer will review and certify the record 
to the Administrator for final decision.
    The Administrator will develop final rates based on the record and 
such other materials and information as may have been submitted to or 
developed by the Administrator. The Final ROD will be made available to 
all parties. Bonneville will file its rates with the Commission for 
confirmation and approval after issuance of the Final ROD.

Part IV--Summary of Rate Proposals

    Bonneville is proposing power and transmission rates for FY 2024-25 
that are consistent with the terms of the BP-24 Rates Settlement.

A. Summary of the Power Rate Proposal

    Bonneville is proposing four primary rates for Federal power sales 
and services, along with general rate schedule provisions to implement 
such rates.
1. Priority Firm Power Rate (PF-24)
    The PF rate schedule applies to sales of firm power to public body, 
cooperative, and Federal agency customers to meet their requirements 
pursuant to Section 5(b) of the Northwest Power Act. The PF Public rate 
applies to the sale of Firm Requirements Power under CHWM contracts 
with customers taking Load Following, Block, or Slice/Block service. 
Consistent with the TRM, Tier 1 rates include three charges: (1) 
customer charges, (2) a demand charge, and (3) a load shaping charge. 
In addition, two Tier 2 Short-Term rates are proposed, the Short-Term 
and Load Growth rates. These rates would be applicable to customers 
that have elected to purchase power from Bonneville for service to 
their Above-RHWM Load.
    The proposed average Tier 1 non-Slice product rate impact, which 
represents the majority of Bonneville's power sales, is flat relative 
to BP-22. The overall average PF Tier 1 rate impact that includes the 
Slice and non-Slice products will be a slight decrease relative to BP-
22. Customer-specific results will vary around these average impacts, 
with some customers experiencing higher rate impacts and some lower 
rate impacts, based on the specific situation of a particular customer.
    The Base PF Exchange rate and its associated surcharges apply to 
sales pursuant to Residential Purchase and Sale Agreements and 
Residential Exchange Program Settlement Implementation Agreements with 
regional utilities that participate in the REP established under 
Section 5(c) of the Northwest Power Act, 16 U.S.C. 839c(c). The Base PF 
Exchange rate establishes the threshold for participation in the REP; 
only utilities with ASCs above the appropriate Base PF Exchange rate 
may receive REP benefits. If a utility meets the threshold, a utility-
specific PF Exchange rate will be established in this proceeding for 
each eligible utility. The utility-specific PF Exchange rate is used in 
calculating the REP benefits each REP participant will receive during 
FY 2024-2025.
    The proposed PF-24 rate schedule also includes resource support 
services rates for customers with non-Federal resources, and a melded 
PF rate for Public customers that have elected power sales contracts 
other than CHWM contracts for firm requirements service.
2. New Resource Firm Power Rate (NR-24)
    The NR-24 rate applies to firm power sales to investor-owned 
utilities (IOUs) to meet their net requirements pursuant to Section 
5(b) of the Northwest Power Act. The NR-24 rate is also applied to 
sales of firm power to Public customers when this power is used to 
serve new large single loads. In addition, the NR rate schedule 
includes rates for services to support Public customers serving new 
large single loads with non-Federal resources. In the BP-24 Initial 
Proposal, Bonneville is forecasting no power sales at the NR rate.
3. Industrial Firm Power Rate (IP-24)
    The IP rate is applicable to firm power sales to DSI customers 
authorized by Section 5(d)(1)(A) of the Northwest Power Act, 16 U.S.C. 
839c(d)(1)(A). In the BP-24 Initial Proposal, Bonneville is forecasting 
sales to one DSI customer at the IP rate.
4. Firm Power and Surplus Products and Services Rate (FPS-24)
    The FPS rate schedule is applicable to sales of various surplus 
power products and surplus transmission capacity for use inside and 
outside the Pacific Northwest. The rates for these products are 
negotiated between Bonneville and the purchasers. The FPS-24 rate 
schedule also includes rates for customers with non-Federal resources;

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the Unanticipated Load Service rate; rates for other capacity, energy, 
and scheduling products and services; rates for reserve services for 
use outside the Bonneville balancing authority area; and real power 
losses rates for customers that elect financial settlement of real 
power losses. Bonneville is proposing a new FPS rate, the Firm Water 
Transition Power rate that would be applicable to specific Slice 
customers to help transition them to Bonneville's recently adopted 30-
water year and 10th percentile metrics for forecasting firm output.
5. Power General Rate Schedule Provisions (GRSPs)
    The Power GRSPs include general rate schedule terms and conditions 
applicable to Bonneville's power rates. In addition, the Power GRSPs 
contain special rate adjustments, charges, credits, and pass-through 
mechanisms for specific events and customer circumstances. Among other 
matters covered by the Power GRSPs are provisions related to 
calculating rates, resource support services, charges associated with 
transfer service, risk adjustments, Slice True-up, the Residential 
Exchange Program, conservation, payment options, and other charges. 
Bonneville is proposing two new GRSPs: the Washington Cap-and-Invest 
Program Charge that would be applicable if Bonneville becomes a First 
Jurisdictional Deliverer in this program; and a Resource Adequacy 
Service credit and charge that would be applicable if Bonneville begins 
participation in a binding season in the Western Resource Adequacy 
Program under certain defined conditions. Bonneville is also proposing 
a change in the market index it uses for various services and rates as 
well as proposing the addition of a rate cap on the Unauthorized 
Increase Charge.

B. Summary of the Transmission Rate Proposal

    Bonneville is proposing to extend the current (BP-22) transmission 
rate levels for the FY 2024-25 rate period, pursuant to the BP-24 Rates 
Settlement. Bonneville is proposing separate transmission rates for its 
Network segment, intertie segments, ancillary and control area 
services, and for various specific purposes.
1. Network Rates
    The Network Integration Transmission Rate (NT-24) applies to 
customers taking network integration service, which allows customers to 
flexibly serve retail load.
    The Point-to-Point Rate (PTP-24) is a contract demand rate that 
applies to customers taking Point-to-Point service on Bonneville's 
network. Point-to-Point service provides customers with service from 
identified points of receipt to identified points of delivery. There 
are separate rates for long-term firm service, and various increments 
of firm and non-firm short-term service.
    The Formula Power Transmission Rate (FPT-24.1) is based on the cost 
of using specific types of facilities, including a distance component 
for the use of transmission lines, and is charged on a contract demand 
basis.
2. Intertie Rates
    The Southern Intertie Rate (IS-24) is a contract demand rate that 
applies to customers taking Point-to-Point service on the Southern 
Intertie.
    The Montana Intertie Rate (IM-24) applies to customers taking 
Point-to-Point service on the Eastern Intertie and that are not parties 
to the Montana Intertie Agreement.
    The Townsend-Garrison Transmission Rate (TGT-24) applies to parties 
to the Montana Intertie Agreement taking firm service over Bonneville's 
section of the Montana Intertie.
    The Eastern Intertie Rate (IE-24) applies to parties to the Montana 
Intertie Agreement taking non-firm service on the portion of the 
Eastern Intertie capacity that exceeds Bonneville's firm transmission 
rights.
3. Other Transmission Rates and General Rate Schedule Provisions
    The Use-of-Facilities Rate (UFT-24) establishes a formula rate for 
the use of a specific facility based on the annual cost of that 
facility.
    The Advance Funding Rate (AF-24) allows Bonneville to collect the 
capital and related costs of specific facilities through an advance-
funding mechanism.
    The Regional Compliance Enforcement and Regional Coordinator rate 
(RC-24) recovers costs assessed to Bonneville for regional reliability 
compliance monitoring, enforcement, and reliability coordination 
services.
    The Oversupply Rate (OS-24) recovers the costs Bonneville incurs to 
displace generation under the Oversupply Management Protocol, 
Attachment P to Bonneville's Tariff.
    Other proposed transmission rates and charges include: a Utility 
Delivery Charge for the use of low-voltage delivery substations; a 
Reservation Fee for customers that postpone the service commencement 
date of transmission service; incremental cost rates for transmission 
service requests that require new facilities; a penalty charge for 
failure to comply with dispatch, curtailment, redispatch, or load 
shedding orders; an Unauthorized Increase Charge for use of the 
transmission system in excess of contracted-for demand; and rate 
adjustment mechanisms consistent with Bonneville's Financial Policies.
    Bonneville's proposes two new charges associated with real power 
loss returns. First, Bonneville is proposing a charge to settle loss 
imbalances associated with in-kind loss returns. In addition, the 
Invalid Loss Return penalty charge is proposed to replace the Financial 
for Inaccuracy penalty charge in the current rate schedules and incent 
accurate and timely return of in-kind loss return obligations.
4. Ancillary Service and Control Area Service Rates
    The BP-24 Transmission Rates Proposal includes rates for 
Bonneville's Ancillary and Control Area Services, along with certain 
updates to those rates and new rates. Bonneville proposes two new rates 
and certain changes to existing rates to support its participation in 
the EIM.
    The EIM Contingency Rate is a new rate Bonneville is proposing to 
apply under temporary EIM contingency events that require corrective 
action. This rate would allow the EIM market operator to settle using 
an alternative pricing index when EIM pricing is unavailable.
    Bonneville is proposing a new rate to recover credits and charges 
for the Flexible Ramping Product associated with EIM participation. 
Bonneville did not previously recover these credits and charges in 
rates.
    Bonneville proposes to remove or revise certain provisions of the 
rate schedules that were adopted in the BP-22 rate proceeding to 
account for the mid-rate period transition to the Western EIM.

D. Risk Mitigation Tools

    Bonneville is proposing three rate adjustment mechanisms for BP-24 
power and transmission rates, primarily to buffer against poor 
financial performance over the rate period and protect the agency's 
solvency and strong credit rating. These mechanisms implement 
Bonneville's Financial Reserves Policy (FRP) and provide for 
adjustments to a business line's rates or other action in the event the 
business line's financial reserves for risk (Financial Reserves) fall 
below or exceed certain thresholds.
    The Cost Recovery Adjustment Clause (CRAC) will adjust rates upward 
to

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generate additional revenue within the rate period if business line 
Financial Reserves fall below a defined lower threshold.
    The Financial Reserves Policy Surcharge (FRP Surcharge) will also 
adjust rates upward to generate additional revenue within the rate 
period if business line Financial Reserves fall below a defined lower 
threshold.
    Finally, the Reserves Distribution Clause (RDC) will trigger if 
Financial Reserves exceed upper thresholds for the business line and 
the agency as a whole. If the RDC triggers, Bonneville will consider 
the amount of Financial Reserves above the threshold for rate relief or 
investment in high-value, business line-specific purposes such as debt 
retirement.
    Bonneville is proposing certain revisions in the three risk 
adjustment clauses. First, for FY 2024, the three Power risk adjustment 
clauses will not be applicable to the portion of a customer's service 
at PF Tier 1 rates that has been converted from a Slice product to a 
non-Slice product beginning October 1, 2023. However, the three risk 
adjustment clauses will apply to such customer's entire service at PF 
Tier 1 rates for FY 2025. Second, any FY 2024 or 2025 Power RDC will 
automatically provide a dividend distribution in an amount equal to the 
lesser of the RDC amount and the amount of Planned Net Revenues for 
Risk included in the BP-24 power rates. And third, the caps on the 
Power and Transmission RDCs are removed for the BP-24 rate period, FY 
2024-2025.

Part V--Proposed BP-24 Power Rate Schedules and BP-24 Transmission 
Rates Schedules

    Bonneville's proposed BP-24 Power Rate Schedules and BP-24 
Transmission Rate Schedules, which includes Transmission, Ancillary, 
and Control Area Services Rate Schedules, are a part of this notice and 
are available for viewing and downloading on Bonneville's website at 
https://www.bpa.gov/goto/BP24. The BP-24 Rates Settlement agreement is 
also posted at this website.

Signing Authority

    This document of the Department of Energy was signed on November 8, 
2022, by John L. Hairston, Administrator and Chief Executive Officer of 
the Bonneville Power Administration, pursuant to delegated authority 
from the Secretary of Energy. This document with the original signature 
and date is maintained by DOE. For administrative purposes only, and in 
compliance with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed in Washington, DC, on November 15, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-25196 Filed 11-17-22; 8:45 am]
BILLING CODE 6450-01-P