S5: Tier 1 Power
BPA’s Tier 1 rates to public preference customers reflect the cost of the undiluted Federal Base System (FBS), are below market
for comparable products and are kept low through achievement of BPA’s objectives at the lowest practical cost.
Other Information:
We have a legal mandate to keep our power rates as low as possible consistent with sound business practices, and this is one
of the greatest contributions we make to the Northwest economy. With greatly reduced sales to direct service industries (DSIs)
and no requirements sales to investor-owned utilities (IOUs), this mandate applies, as a practical matter, primarily to our
rates to our public preference customers. The tiered rate structure we are putting in place will help us meet this objective
by minimizing the “dilution” of the low-cost existing system with higher-cost purchases. Achievement of BPA's objectives at
the “lowest practical cost" requires that we translate BPA's objectives into clear performance measures and then seek creative
ways to meet those performance measures at the lowest practical cost.
Indicator(s):
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