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BPA Proposes Resolution to Electricity Oversupply by Staff BPA Journal, March 2012

BPA proposes resolution to electricity oversupply BPA has proposed compensating wind energy producers within its section of the grid for periodically reducing their output when necessary to keep the electricity supply from exceeding demand during high river flows.

If BPA decides to proceed with the proposal, the agency will also propose in a rate case to split the cost of the compensation approximately equally between users of BPA's Federal Base System and wind energy producers in its grid.

The proposal comes after months of discussions with key stakeholders to find an equitable solution to occasional electricity oversupply. The proposal is based on concepts developed in these discussions.

Although the discussions are ongoing, BPA is releasing its proposal for public review now so the agency can meet a March 6 deadline with the Federal Energy Regulatory Commission.

The terms would run through 2015. The proposal is described in two documents: new tariff language for addressing oversupply and a detailed narrative that explains the proposed methods for managing oversupply and allocating the associated costs. The documents can be found at www.bpa.gov/go/oversupply.