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Wind Integration Rate Case Settled by Staff BPA Journal, April 2008

BPA now has 1,380 megawatts of wind power integrated in its balancing authority,
with 2,877 MW expected on line by the end of fiscal year 2009.

The 2009 Wind Integration Within-Hour Balancing Service Rate Case has been settled. The rate will recover the costs of balancing the within-hour variability of wind generatin in the BPA balancing authority (formerly referred to as "control area"). Under the settlement, BPA will charge wind generators in its balancing authority 68 cents per kilowatt of installed wind capacity per month for within-hour balancing services in FY 2009.

BPA now has 1,380 megawatts of wind power integrated in its balancing authority, with 2,877 MW expected on line by the end of fiscal year 2009. Because wind power output can vary moment-to-moment based on changes in wind speed, BPA has to adjust power produced from other sources to respond to the variable wind output, so that loads and generation remain balanced. This "balancing service" carries costs. The Northwest Wind Integration Action Plan, completed in March 2007, recognized the need for BPA to develop a rate to recover the cost of this service.

The costing methodology for this rate proposal was developed in a series of workshops with BPA customers and other interested parties in the fall of 2007. BPA and most of those parties have signed a settlement agreement, and the remaining parties hae agreed not to contest the settlement. BPA expects to file a record of decision with the Federal Energy Regulatory Commission in May, and the rate is expected to go into effect Oct. 1. BPA is also proceeding with steps called for in the settlement agreement to address wind integration issues for the long term.

For more information, see BPA's Web site: www.transmission.bpa.gov/Business/Rates_and_Tariff/2009WindIntegRateCase.cfm.