S10: System Value
The value of the existing federal power system is preserved for the region for the long run, while ensuring obligations to
federal taxpayers are met.
Other Information:
Federal taxpayers made a tremendous initial investment in the FCRPS. BPA ratepayers have been faithfully repaying that investment
for more than 65 years. The benefits of the federal system are provided to our customers in return for their commitment to
pay the full costs of the system. New 20-year contracts and tiered rates will secure these benefits for Northwest citizens
and also secure BPA’s ability to continue full and timely repayment of the taxpayers’ investment in the system. Long-term
clarity through contracts and rates about allocation of the costs and benefits of the system among public preference customers,
IOU residential and small-farm customers, and the remaining DSIs is also important to the future development of electric infrastructure.
Public preference customers will benefit through our delivery of most of the firm output of the existing system at a costbased
Tier 1 rate. BPA will work with the region to develop a sustainable residential exchange mechanism that provides IOU residential
customers a fair allocation of system value, but without the year-to-year uncertainty and high administrative costs of the
traditional residential exchange program. Although BPA is not obligated to sell DSIs power, the DSIs are longstanding customers
who are the economic mainstay of several communities. We anticipate providing an agreement that gives the remaining DSIs a
reasonable chance of sustaining their operations within the region while strictly limiting BPA’s costs and risks.
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