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Transmission Rates to Stay Flat by Staff BPA Journal, January 2011

BPA and its transmission customers reached a partial settlement in December to avoid a transmission rate increase as customers manage through a difficult economy.

Under the settlement, BPA will use some of its financial reserves to cover transmission costs so transmission rates remain level in fiscal years 2012 and 2013. BPA transmission rates are separate from wholesale power rates and apply to Northwest utilities and others that transmit electricity on BPA's high-voltage lines.

The settlement agreement excludes rates BPA charges for use of the Montana Intertie, which BPA partially owns. This 500-kilovolt power line integrates generation from Montana's Colstrip power plant into BPA's transmission system. The agreement also excludes certain ancillary and control area services that allow BPA to maintain system reliability. These services, which include wind integration, will be litigated in the rate case.

The transmission rate schedule will mirror the Residential Exchange Settlement schedule through cross examination, and then will merge with the power portion of the BP-12 rate case to provide a single record of decision in July 2011. BPA expects to issue a draft record of decision in June. Rates will go into effect Oct. 1, 2011.

For information, go to www.bpa.gov/corporate/ratecase/2012/.