Business

BPA releases final Provider of Choice Policy for electric power customers

BPA releases final Provider of Choice Policy for electric power customers
(photo courtesy BPA)

Bonneville Power Administration has released its final Provider of Choice Policy, which captures its policies, products and services for utility customers in new long-term wholesale electric power contracts beginning in 2028.

BPA markets power from 31 federal dams across the U.S. Pacific Northwest.

BPA said this document is the result of five-plus years of collaboration with customers and constituents and captures its position on the policies, products and services it will offer its utility customers in new long-term wholesale electric power contracts beginning in 2028.

“This policy lays the foundation for low-cost, reliable, carbon-free electric power from the Federal Columbia River Power System to continue to flow to communities served by BPA’s public power customers,” said BPA Administrator and Chief Executive Officer John Hairston. “We’ve seen so much change in our region and in our industry since our current wholesale power contracts were put in place in 2011. This policy sets a course for two more decades of clean energy consumption and economic prosperity for communities served by consumer-owned utilities in the region.”

At the core of the policy is the continuation of a tiered rate construct. BPA’s utility customers are eligible to purchase a certain amount of wholesale electric power at BPA’s Priority Firm Tier 1 rate, which is its lowest-cost rate. A utility with additional power needs can choose to be served at the PF Tier 2 rate, by nonfederal resources that they secure on their own, or a combination of the two. The tiered rate construct is designed to preserve the value of the federal system – including the region’s 31 federal dams and one nuclear plant – and insulate customers from unbound power resource acquisition costs.

The policy creates a durable framework that provides certainty about the load service customers can expect from BPA while enabling them to navigate the changes the region will face. For example, the policy shifts how BPA conveys emissions attributes to better align with utility reporting requirements, which was in direct response to customer requests.

Release of the policy signifies an important milestone in the Provider of Choice process. The next phase kicks off in April with a series of policy implementation and contract development workshops that will go into more depth about the products and services outlined in the policy. BPA has set a goal of executing the new long-term contracts by December 2025. These new contracts will replace BPA’s 20-year Regional Dialogue contracts.