NRU Post-2028

Policy Positions

Maximizing the value of the Federal system to the benefit of preference customers should serve as the foundation for post-2028 negotiations. BPA and customers should focus on these areas:

  • Better defining and allocating the Federal system.

  • Reducing Residential Exchange Program costs.

  • Streamlining integration and use of non-federal resources, including renewable resources, battery/storage, demand response and other distributed energy resources.

  • Enhancing customer influence over BPA’s expense and capital levels and execution, the development and execution of strategy to maintain agency financial health, and power rate design issues, such as the use of net secondary revenues.

  • Refining the demand charge rate design.

  • Improving the way BPA funds and acquires energy efficiency.

  • Developing an equitable and more cost-effective way for Load Following customers to serve New Large Single Loads (NLSL).

NRU Post-2028

Policy Principles

• BPA must maximize the value of the federal system for the benefit of its preference customers. • It is essential for BPA to control costs while delivering safe and reliable power to preference customers. • The post-2028 contract and rate structure must allow preference customers to be responsive to changes in market conditions, regulatory conditions and the needs of end-users. This includes the ability to easily and cost-effectively use non-federal resources, including distributed energy resources. • The power products, contract structure and duration, and rate designs must balance the needs for stability, certainty, flexibility and optionality for preference customers. • Power products must include the allocation of environmental attributes of the federal system to preference customers. • BPA must provide equivalent treatment to both directly-connected preference customers and preference customers served by transfer. • Irrigation rate mitigation and the Low Density Discount must be retained as essential components of any power product and corresponding rate design. • Any rate shock resulting from a shift to a new contract or rate structure must be avoided or mitigated.

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