Department of Energy August 10, 2006 – Federal Register Recent Federal Regulation Documents

This document corrects an error in an order on rehearing that the Federal Energy Regulatory Commission published in the Federal Register on July 27, 2006. That action affirmed, with certain clarifications, its determinations in Commission Order Nos. 669 and 669-A.

BPA is publishing a policy proposal regarding the agency's future power supply role in the Pacific Northwest after 2011. This proposal addresses how the agency proposes to market power and distribute the costs and benefits of the Federal Columbia River Power System, which will create valuable certainty for customers over their BPA power supply. Current contracts expire in 2011, and once BPA makes basic policy decisions, it will still take at least another 16 months to negotiate new contracts and put a long-term tiered rate methodology in place. This will leave little more than three years for the region's utilities to make and implement their plans for developing any necessary power supply. It is in the region's best interest to proceed with implementation of this policy and to execute new contracts soon to accommodate such planning and development. A final record of decision on BPA's policy will be issued in early 2007 after all public comments have been reviewed.

The Administrator, Southwestern Power Administration (Southwestern), has prepared Current and Revised 2006 Power Repayment Studies (PRS) that show the need for an increase in annual revenues to meet cost recovery criteria. Such increased revenues are required primarily due to significant increases in U.S. Army Corps of Engineers' generation investment at the project. The Administrator has developed a proposed Robert D. Willis rate schedule, which is supported by a PRS, to recover the required revenues. Beginning January 1, 2007, the proposed rates would increase annual revenues approximately 25.8 percent from $648,096 to $815,580.