in News Departments > New & Noteworthy
print the content item

Following cost-allocation recommendations from the Federal Energy Regulatory Commission (FERC), the Bonneville Power Administration (BPA) has released a revised proposal to share the costs of oversupply among customers using its transmission system, including hydropower and wind energy generators.

BPA says each user, including BPA Power Services, would bear its proportionate share of the costs based on its level of use. In 2011, BPA curtailed approximately 97.5 MWh of generation, including 350 MW of wind power, during a period of hydropower oversupply. BPA's policy at that time, called Environmental Redispatch, did not include a mechanism to reimburse generators for the cost of displacement, and FERC ruled in December 2011 that the BPA’s actions unduly discriminated against wind energy.

In March 2012, BPA filed the original Oversupply Management Protocol (OMP) with FERC and proposed to allocate oversupply costs equally between power customers and generators that elect compensation under the OMP.

In December 2012, FERC issued a ruling conditionally accepting the OMP contingent upon BPA’s submitting a different cost-allocation methodology within 90 days of the ruling. BPA then requested a stay of that order so that it could finish its oversupply rate case, now scheduled to conclude in August, before submitting a cost-allocation proposal. FERC accepted this request. On April 12, BPA released a new rate proposal and is seeking comment. It expects to issue a final record of decision on August 28, 2013.

In March, BPA modified its analysis for estimating the likelihood of oversupply conditions and conducted an updated analysis for 2013. For this year, BPA projects a 50% probability of oversupply conditions leading to displacement under the OMP, compared to a 65% probability in the 2012 study.

If the protocol is needed, BPA projects the midpoint of the range of possible costs to be approximately $10 million, but under extreme conditions, costs could exceed $50 million, depending on the timing of the spring runoff.





Trachte Inc._id1770
Latest Top Stories

Recapping The Wind Industry's Third-Quarter Deals

Mercom Capital Group recaps investment and merger and acquisition activity during July, August and September.


Yearly Installed Capacity Figures Already Beat 2013 Numbers, More Wind On The Way: AWEA

While the American Wind Energy Association (AWEA) lobbies Congress to extend the production tax credit, the association notes wind projects now under construction signal a vibrant 2015.


Yahoo Inks Contract To Buy Kansas Wind Power

The Internet company plans to log in to the Alexander wind project, which is being built by community developer OwnEnergy.


Could Initial Offshore Wind Projects Crash New England's REC Market?

Some are concerned that the first offshore wind projects could negatively impact pricing of renewable energy credits (RECs) in New England.


Catching Up With The DOE's Down-Select Offshore Winners

The three recipients of key U.S. Department of Energy (DOE) funding provide updates on their offshore wind demonstration projects.

Hybrid Energy Innovations 2015
Canwea_id1984
Renewable NRG_id1934