S6: Tier 2 Power
BPA offers excellent unsubsidized Tier 2 products that meet our customers’ needs. Other Information:
BPA will manage the Tier 2 business to effectively meet customer requests that we serve all or part of their load growth with
Tier 2 services priced at their full incremental cost to BPA. We will do so in a fashion that contributes to a power and transmission
system that is regionally optimized for adequacy, reliability and efficiency. BPA's intent is neither to compete aggressively
to serve its customers' load growth nor to try to push customers toward nonfederal sources. Rather, BPA's intent is to do
an excellent job of meeting customers' requests for service at the Tier 2 rate, and do so without using Tier 1 to subsidize
Tier 2 sales. Avoiding subsidy from Tier 1 requires close management of the risks of Tier 2 to prevent those risks spilling
into Tier 1 rates. Doing an "excellent job" includes ensuring that our purchases and acquisitions for Tier 2 fit into an optimal
plan of expansion of the federal system that is consistent with the Council's power plan. We will use Tier 2 to help with
our renewables facilitation goal by offering a renewablesbased Tier 2 option to customers.
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