Proposed Correction of Errors in the Firm Power Products and Services Rate Schedule (FPS-96): Clarifying the Applicability of the FPS-96 Contract Rate to Certain Capacity With Energy Return Contracts, Public Hearing, and Opportunity for Public Review and Comment

DEPARTMENT OF ENERGY

Bonneville Power Administration

Proposed Correction of Errors in the Firm Power Products and

Services Rate Schedule (FPS-96): Clarifying the Applicability of the

FPS-96 Contract Rate to Certain Capacity With Energy Return Contracts,

Public Hearing, and Opportunity for Public Review and Comment

AGENCY: Bonneville Power Administration (BPA), Department of Energy

(DOE).

ACTION: Notice of Proposed Correction of Errors in the Firm Power

Products and Services Rate Schedule (FPS-96): Clarifying the

Applicability of the FPS-96 Contract Rate to Certain Capacity With

Energy Return Contracts.

-----------------------------------------------------------------------

SUMMARY: BPA unbundled its wholesale power and transmission products in

its 1996 rate case. Pursuant to this unbundling, several of BPA's

wholesale power rate schedules included separate rates for sales of

firm capacity with energy returns (commonly referred to as capacity

without energy). Although clarifying language was mistakenly omitted

from the FPS-96 rate schedule, the record established that it was BPA's

intent that the firm capacity with energy returns product would be sold

at a negotiated price.

Certain BPA contracts executed prior to October 1, 1996, provide

that BPA supply capacity without energy at the demand charge in the

Contract Rate of

[[Page 44362]]

the then applicable surplus firm power rate schedule. BPA erred in the

FPS-96 rate schedule when it failed to expressly state in that schedule

that the capacity without energy product would be priced at a

negotiated rate. The demand charge in the Contract Rate section of FPS-

96 was priced to be sold only in conjunction with the purchase of the

separate energy product in that section. This action is intended to

correct those errors.

DATES: The prehearing conference will be held on August 24, 1999, from

1:00 p.m. to 4:00 p.m., Room 223, 911 N.E. 11th, Portland, Oregon.

Written comments by participants must be received by October 13, 1999,

to be considered in the Record of Decision (ROD).

ADDRESSES: BPA's initial rate proposal in this proceeding will be

available for examination on August 24, 1999 at BPA's Public

Information Center, BPA Headquarters Building, 1st Floor, 905 N.E.

11th, Portland, Oregon. Written comments should be submitted to Mr.

Michael Hansen, Public Involvement and Information Specialist;

Bonneville Power Administration; P.O. Box 12999; Portland, Oregon

97212. The prehearing conference will be held on August 24, 1999, from

1:00 p.m. to 4:00 p.m., Room 223, 911 N.E. 11th, Portland, Oregon. To

request documents in this proceeding by telephone, call BPA's document

request line: (503) 230-4328 or call toll-free 1-800-622-4519. Please

request the document by its listed title. BPA's initial proposal for

FPS-96R will also be available on BPA's website at www.bpa.gov/power/

ratecase.

Responsible Official: Ms. Diane Cherry, Manager for Power Products,

Pricing and Rates, is the official responsible for the development of

BPA's wholesale power rates.

SUPPLEMENTARY INFORMATION:

Part I--Introduction and Procedural Background

A. Relevant Statutory Provisions Governing This Rate Proceeding

Section 7 of the Northwest Power Act, 16 U.S.C. 839e, contains a

number of general directives that the BPA Administrator must consider

in establishing rates for the sale of electric energy and capacity. In

particular, section 7(a)(1), 16 U.S.C. 839e(a)(1), provides in part

that:

[S]uch rates shall be established and, as appropriate, revised to

recover, in accordance with sound business principles, the costs

associated with the acquisition, conservation, and transmission of

electric power, including the amortization of the Federal investment

in the Federal Columbia River Power System (including irrigation

costs required to be repaid out of power revenues) over a reasonable

period of years and the other costs and expenses incurred by the

Administrator pursuant to this Act and other provisions of law.

Rates established by BPA are effective on an interim or final basis

when approved by FERC. 16 U.S.C. 839e(a)(2). In addition to the

Northwest Power Act, BPA ratemaking is governed by the Bonneville

Project Act, 16 U.S.C. Section 832 et seq., the Federal Columbia River

Transmission System Act, 16 U.S.C. Section 838 et seq., and the Flood

Control Act of 1944, 16 U.S.C. 825s.

Section 7(i) of the Northwest Power Act, 16 U.S.C. 839e(i),

requires that BPA's rates be set according to certain procedures. These

procedures include issuance of a Federal Register notice announcing the

proposed rates; one or more hearings; the opportunity to submit written

views, supporting information, questions, or arguments; and a decision

by the Administrator based on the record developed during the hearing

process. This proceeding will be governed by BPA's ``Procedures

Governing Bonneville Power Administration Rate Hearings,'' 51 FR 7611

(March 5, 1986), which implement and, in most instances, expand these

statutory requirements.

Pursuant to section 1010.3(c) of the Procedures Governing

Bonneville Power Administration Rate Hearings (BPA Procedures), this

hearing will be conducted under Rule 1010.10, which governs Expedited

Rate Proceedings. The expedited procedures will be used rather than the

procedures for General Rate Proceedings conducted under Rule 1010.9.

The procedures for General Rate Proceedings are intended for use when

the Administrator proposes to revise all, or substantially all, of

BPA's wholesale power and transmission rates. The proposed correction

of the FPS-96 schedule does not impact any other part of the FPS-96

rate schedule, or any other rate schedule, and will be applicable to a

very limited number of contracts. Therefore, the issues in this rate

proceeding will be fewer and of more limited scope than the issues in a

proceeding to adjust all BPA rates. BPA believes that the Expedited

Rate Proceeding will be adequate to develop a full and complete record

and to receive public comment and argument related to the proposed

corrections. If more time is required, the Hearing Officer may request

under section 1010.10(b) of the BPA Procedures that the BPA

Administrator grant an extension.

B. Background

On July 17, 1995, BPA filed a notice in the Federal Register

proposing new wholesale power and transmission rates to be effective on

October 1, 1996, including the FPS-96 rate schedule. BPA's initial rate

proposal was filed on July 10, 1995, and was supported by written

testimony and studies. Parties to the proceeding filed their rebuttal

to BPA's direct case and their own direct testimony on September 8,

1995. On December 8, 1995, litigants filed rebuttal to the parties'

direct cases. BPA also filed a supplemental rate proposal on December

8, 1995, which consisted of written testimony and studies.

Parties filed their direct cases in response to BPA's supplemental

rate proposal on January 26, 1996. Testimony responding to the parties'

supplemental cases was filed on February 12, 1996. Rebuttal testimony

was filed by all litigants on February 14, 1996. Cross-examination

began on February 20, 1996. Parties submitted initial briefs on April

22, 1996. Oral argument before the BPA Administrator and Deputy

Administrator was held on April 30, 1996. A Draft ROD was published and

distributed to parties on May 4, 1996. Parties filed briefs on

exceptions on May 30, 1996. BPA published its Final ROD on June 17,

1996.

BPA filed its proposed rates, including the FPS-96 schedule, with

FERC on July 26, 1996. On September 25, 1996, FERC granted interim

approval of the proposed rates effective October 1, 1996. United States

Dept. of Energy-Bonneville Power Administration, 76 FERC para. 61,314

(1996). On July 30, 1996, FERC issued an order granting final

confirmation and approval of BPA's rates, including the FPS-96 rate

schedule. United Stated Dept. of Energy-Bonneville Power

Administration, 80 FERC para. 61,118 (1997). The FPS-96 rate was

approved for a 10-year period ending September 30, 2006.

C. Proposed Schedule Concerning This Rate Proceeding

BPA's initial rate proposal in this proceeding will be available

for examination on August 24, 1999, at BPA's Public Information Center,

BPA Headquarters Building, 1st Floor; 905 N.E. 11th, Portland, Oregon,

and will be provided to parties at the prehearing conference to be held

on August 24, 1999, from 1:00 p.m. to 4:00 p.m., Room 223, 911 N.E.

11th, Portland, Oregon.

To request documents in this proceeding by telephone, call BPA's

document request line: (503) 230-4328

[[Page 44363]]

or call toll-free 1-800-622-4519. Please request the document by its

listed title. BPA's initial proposal for FPS-96R will also be available

on BPA's website at www.bpa.gov/power/ratecase.

As noted above, BPA will release its proposed revisions to the FPS-

96 rate schedule on August 24, 1999. BPA expects to publish a final ROD

on December 6, 1999. The following proposed schedule is provided for

informational purposes. A final schedule will be established by the

Hearing Officer at the prehearing conference:

August 24--Prehearing Conference (BPA files Direct Case) and deadline

for petitions to intervene.

September 17--Data Requests on BPA's Direct Case Due.

September 24--Data Responses Due.

October 4--Parties' Direct Cases (including rebuttal to BPA's Direct

Case).

October 12--Data Requests on Parties' Direct Cases Due.

October 13--Close of Public Comment.

October 19--Data Responses Due.

October 26--Litigants' Rebuttal Cases (no discovery).

November 2--Cross-Examination.

November 9--Initial Briefs.

November 17--Draft Record of Decision.

November 27--Briefs on Exceptions.

December 6--Final Record of Decision.

The procedural schedule established for Docket No. FPS-96R will

provide an opportunity for interested persons to review BPA's proposed

rates, to participate in the rate hearing, and to submit oral and

written comments. During the development of the final rate proposal,

BPA will evaluate all written and oral comments received in the rate

proceeding. Consideration of comments and more current data may result

in the final rate proposal differing from the rates proposed in this

Notice.

BPA expects to file its ROD with FERC by January 6, 2000,

requesting that the proposed revisions go into effect on or before June

1, 2000.

Part II--Purpose and Scope of Hearing

The purpose of the proposed changes to the Firm Power Products and

Services (FPS-96) rate schedule is to clarify and establish the rates

that apply to the capacity without energy product.

The FPS-96 rate schedule includes a Contract Rate demand charge

section, which contains a rate of $0.87/kW/month. The demand charge in

this section was designed and priced to be used exclusively in

conjunction with the purchase of the separate energy product included

in the same section of FPS-96. The Contract Rate demand charge was not

intended to apply to capacity without energy.

The FPS-96 rate schedule is a successor to the Surplus Firm Power

(SP-93) rate schedule. However, prior to the product unbundling in the

FPS-96 rate schedule, the Contract Rate demand charge in BPA's Surplus

Firm Power rate schedules (SP-93, SP-91, SP-89 and SP-86) was priced to

provide capacity without energy. The Contract Rate demand charge in

each of these Surplus Firm Power rate schedules included: (1) firm

energy; (2) firm capacity without energy; and (3) firm power. In

addition, the demand charge in the Contract Rate in those schedules was

priced to reflect the value of capacity, with or without energy.

Pursuant to BPA's product unbundling in the 1996 rate case,

separate sections for the capacity without energy product were included

in the Priority Firm Power (PF-96) and New Resource Power (NR-96) rate

schedules. Consistent with this product unbundling, the FPS-96 rate

schedule was also designed to unbundle capacity and energy products.

Although clarifying language was mistakenly omitted from the FPS-96

rate schedule, it was BPA's stated intent that the capacity without

energy product would be sold at a negotiated price, not under the

Contract Rate demand charge. This is established by BPA's Final 1996

Wholesale Power Rate Development Study (WPRDS), WP-96-FS-BPA-01.

Section 4.7 of the WPRDS states in pertinent part that:

Firm capacity without energy is available under PF-96 and NR-96 rate

schedules for Computed Requirements customers purchasing under the

1981 Contract. Firm capacity without energy is also available under

the FPS-96 rate schedule, at negotiated prices and terms that may

vary from those in the PF and NR rate schedules.

BPA entered into some contracts prior to the establishment of the

FPS-96 rate schedule that provide for BPA to supply, under specified

circumstances, capacity without energy, and further provide that such

product should be priced under the Contract Rate demand charge section

of the then applicable Surplus Firm Power rate schedule. As noted

previously, the FPS-96 rate schedule is the successor to all prior

Surplus Firm Power rate schedules. BPA erred in the FPS-96 rate

schedule when it failed to expressly state in that schedule that

contracts providing for capacity without energy would no longer be sold

at the Contract Rate demand charge, but rather would be priced at a

negotiated rate, and that the demand charge in the Contract Rate

section in FPS-96 was for a firm power sale product. The fact that an

error was made is reflected in the above quoted language from the

WPRDS, and in the fact that the $0.87/kW/month price does not, and did

not at the time the rate schedule was developed, recover the costs to

BPA associated with providing energy during high cost periods and

taking energy back during lower cost periods.

Because some contracts may require a posted, as opposed to a

negotiated, rate for capacity without energy, BPA is proposing to post

seasonally adjusted rates that may be used in instead of a negotiated

rate. The posted rates shall be available only for those contracts in

effect on or before October 1, 1996, that provide for capacity without

energy to be priced at the Contract Rate demand charge in the then

applicable Surplus Firm Power rate schedule.

BPA has assessed the potential environmental effects of its rate

proposal, as required by the National Environmental Policy Act (NEPA),

as part of BPA's Business Plan Environmental Impact Statement (EIS).

The analysis includes an evaluation of the environmental impacts of a

range of rate design alternatives for BPA's power services and an

analysis of the environmental impacts of the rate levels resulting from

the rates for such services under the business structure alternatives.

BPA's proposal to revise the FPS-96 schedule falls within the range of

alternatives evaluated in the Final Business Plan EIS. Comments on the

Business Plan EIS were received outside the formal rate hearing

process, but will be included in the rate case record and considered by

the Administrator in making a final decision establishing BPA's

revisions to the 1996 rate schedules. The Business Plan EIS was

completed in June 1995.

Pursuant to Rule 1010.3(f) of BPA's Procedures, the Administrator

limits the scope of this hearing to issues respecting the correction of

the FPS-96 rate schedule as described in section II hereof. Other

provisions of the existing FPS-96 rate schedule are not rate matters

for the purposes of this hearing.

III. Public Participation

A. Distinguishing Between ``Participants'' and ``Parties'

BPA distinguishes between ``participants in'' and ``parties to''

the hearings. Apart from the formal hearing process, BPA will receive

comments, views, opinions, and information from ``participants,'' who

are defined in the BPA Procedures as persons who may submit comments

without being subject to the duties of, or having the privileges

[[Page 44364]]

of, parties. Participants' written and oral comments will be made part

of the official record and considered by the Administrator.

Participants are not entitled to participate in the prehearing

conference; may not cross-examine parties' witnesses, seek discovery,

or serve or be served with documents; and are not subject to the same

procedural requirements as parties.

Written comments by participants will be included in the record if

they are submitted on or before October 13, 1999. Participants' written

views, supporting information, questions, and arguments should be

submitted to the address noted above. The second category of interest

is that of a ``party'' as defined in Rules 1010.2 and 1010.4 of the BPA

Procedures. 51 FR 7611 (1986). Parties may participate in any aspect of

the hearing process.

B. Petitions for Intervention

Persons wishing to become a party to BPA's rate proceeding must

notify BPA in writing. Petitioners may designate no more than two

representatives upon whom service of documents will be made. Petitions

to intervene shall state the name and address of the person requesting

party status and the person's interest in the hearing.

Petitions to intervene as parties in the rate proceeding are due to

the Hearing Officer by August 24, 1999. The petitions should be

directed to: Christopher Jones, Hearing Clerk--LP, Bonneville Power

Administration, 905 N.E. 11th Ave., P.O. Box 12999, Portland, Oregon

97212.

Petitioners must explain their interests in sufficient detail to

permit the Hearing Officer to determine whether they have a relevant

interest in the hearing. Pursuant to Rule 1010.1(d) of BPA's

Procedures, BPA waives the requirement in Rule 1010.4(d) that an

opposition to an intervention petition be filed and served 24 hours

before the prehearing conference. Any opposition to an intervention

petition may instead be made at the prehearing conference. Any party,

including BPA, may oppose a petition for intervention. Persons who have

been denied party status in any past BPA rate proceeding shall continue

to be denied party status unless they establish a significant change of

circumstances. All timely applications will be ruled on by the Hearing

Officer. Late interventions are strongly disfavored. Opposition to an

untimely petition to intervene shall be filed and received by BPA

within two days after service of the petition.

C. Developing the Record

Cross-examination will be scheduled by the Hearing Officer as

necessary following completion of the filing of all litigants' direct

and rebuttal testimony. Parties will have the opportunity to file

initial briefs at the close of any cross-examination. After the close

of the hearings, and following submission of initial briefs, BPA will

issue a Draft ROD that states the Administrator's tentative

decision(s). Parties may file briefs on exceptions, or when all parties

have previously agreed, oral argument may be substituted for briefs on

exceptions. When oral argument has been scheduled in lieu of briefs on

exceptions, the argument will be transcribed and made part of the

record. The record will include, among other things, the transcripts of

any hearings, written material submitted by the participants, and

evidence accepted into the record by the Hearing Officer. The Hearing

Officer then will review the record, supplement it if necessary, and

certify the record to the Administrator for decision.

The Administrator will develop the final corrections to the FPS-96

rate schedule based on the entire record. The basis for the final

corrections to the rate schedule will be expressed in the

Administrator's Final ROD. The Administrator will serve copies of the

ROD on all parties and will file the final proposed rate corrections,

together with the record, with FERC for confirmation and approval. See

18 CFR Part 300.

IV. Summary of the Proposal

Below are the proposed corrections intended to the FPS-96 rate

schedule.

1. Title to Section II. A. is corrected from ``Firm Power'' to

``Firm Power and Capacity Without Energy Sales'

2. The following language will be added to 1.1 Contract Rate

section of FPS-96:

The demand charge in the Contract Rate applies firm power sales.

Firm capacity without energy is available under the FPS-96 rate

schedule at the prices identified in section 1.3 unless otherwise

agreed to by BPA and the Purchaser.

3. New FPS-96 Section 1.3:

1.3 Capacity Without Energy

Unless otherwise agreed to by the parties, the monthly charge for

capacity without energy shall be the applicable rate for that month,

multiplied by the Purchaser's Contract Demand associated with the

purchase of capacity without energy.

------------------------------------------------------------------------

Applicable months Rate

------------------------------------------------------------------------

September-December...................... $15.16/kW-mo.

January-March........................... 11.11/kW-mo.

April................................... 10.10/kW-mo.

May-June................................ $8.30/kW-mo.

July.................................... 13.39/kW-mo.

August.................................. 19.93/kW-mo.

------------------------------------------------------------------------

The rates in the Contract Rate Section II.A.1.1 of FPS-96 apply

only to a firm power sale.

V. The Revised FPS-96 Rate Schedule

The revised FPS rate schedule is set forth below. An interlined

version of the revised rate schedule will be available for examination

on August 24, 1999, at BPA's Public Information Center, BPA

Headquarters Building, 1st Floor; 905 N.E. 11th, Portland, Oregon, and

will be provided to parties at the prehearing conference to be held on

August 24, 1999, from 1:00 p.m. to 4:00 p.m., Room 223, 911 N.E. 11th,

Portland, Oregon. In addition, the interlined version of this revised

rate schedule will be posted on BPA's website that same day. The

website may be reached via www.bpa.gov/power/ratecase.

Schedule FPS-96

Firm Power Products and Services

Section I. Availability

This rate schedule is available for the purchase of Firm Power,

Capacity Without Energy, Supplemental Control Area Services, Shaping

Services, and Reservation and Rights to Change Services for use inside

and outside the Pacific Northwest during the period beginning October

1, 1996, and ending September 30, 2006.

Products and services available under this rate schedule are

described in the reprint of the 1996 GRSPs for FPS-96, Section III.A of

Bonneville Power Administration (BPA's) General Rate Schedule

Provisions (GRSPs). BPA is not obligated to enter into agreements to

sell products and services under this rate schedule or make power or

energy available under this rate schedule if such power or energy would

displace sales under the PF-96, NR-96, IP-96, or VI-96 rates schedules

or their successors. Sales under the FPS-96 rate schedule are subject

to BPA's GRSPs. Transmission service over Federal Columbia River

Transmission System facilities shall be charged under the applicable

transmission rate schedule. Ancillary services shall be available

under, or at charges consistent with, the Ancillary Products and

Services (APS) rate schedule.

This rate schedule supersedes the Surplus Firm Power (SP-93) and

[[Page 44365]]

Emergency Capacity (CE-95) rate schedules. Rates under contracts that

contain charges that escalate based on rates listed in this rate

schedule shall include applicable transmission charges. For sales under

this rate schedule, bills shall be rendered and payments due pursuant

to BPA's Billing Procedures and/or as agreed to in purchase agreements.

Section II. Rates, Billing Factors, and Adjustments

For each product, the rate(s) for each product along with the

associated billing factor(s) are identified below. Applicable

adjustments, charges, and special rate provisions are listed for each

product. This rate schedule contains four subsections, corresponding to

the products offered under this rate schedule:

Section II.A. Firm Power and Capacity Without Energy

Section II.B. Supplemental Control Area Services

Section II.C. Shaping Services

Section II.D. Reservation and Rights to Change Services

A. Firm Power and Capacity Without Energy

1. Rates and Billing Factors

1.1 Contract Rate

The demand charge in the Contract Rate applies to purchases of a

firm capacity with no energy return product exclusively, that is, a

firm power sale product. Firm capacity with energy return (Capacity

without Energy) is available under the FPS-96 rate schedule at the

prices identified in section 1.3. Contracts entered into on or before

September 30, 1996, that refer to the demand charge in the Contract

Rate section of the then applicable surplus power schedule for pricing

this product will be priced under section 1.3.

1.1.1 Demand Charge

The charge for demand shall be $0.87 per kilowatt per month in all

months of the year, multiplied by the Contract Demand unless otherwise

agreed by BPA and the Purchaser.

1.1.2 Demand Charge--Capacity Without Energy Sales

See section 1.3 for pricing.

1.1.3 Energy Charge

The total monthly charge for energy shall be the sum of (1) and

(2):

(1) The applicable Heavy Load Hour (HLH) rate for that month,

multiplied by the Purchaser's HLH Contract Energy unless otherwise

agreed by BPA and the Purchaser; and

(2) The applicable Light Load Hour (LLH) rate for that month,

multiplied by the Purchaser's LLH Contract Energy unless otherwise

agreed by BPA and the Purchaser.

------------------------------------------------------------------------

HLH rate LLH rate

Applicable months (mills/ (mills/

kWh) kWh)

------------------------------------------------------------------------

September-December................................ 49.63 46.45

January-March..................................... 50.39 47.25

April............................................. 44.74 42.73

May-June.......................................... 24.36 21.21

July.............................................. 29.94 26.09

August............................................ 42.68 37.06

------------------------------------------------------------------------

1.2 Flexible Rate

Demand and/or energy charges may be specified at a higher or lower

average rate as mutually agreed by BPA and the Purchaser. Billing

factors shall be Contract Demand and Contract Energy unless otherwise

agreed by BPA and the Purchaser.

1.3 Capacity Without Energy

1.3.1 Flexible Rate

For sales not covered by section 1.3.2 the rate(s) for capacity

without energy sales shall be as mutually agreed by BPA and the

Purchaser.

1.3.2 Posted Rate

The posted rates are available exclusively for contracts entered

into on or before September 30, 1996, that include Capacity without

Energy provisions where payment shall be at the demand charge

associated with the Contract Rate of the then applicable surplus power

rate schedule. For sales pursuant to such contracts the monthly charge

for Capacity without Energy shall be the applicable rate for that

month, multiplied by the Purchaser's Contract Demand associated with

the purchase of Capacity without Energy.

------------------------------------------------------------------------

Applicable months Rate

------------------------------------------------------------------------

September-December...................... $15.16/kW-mo.

January-March........................... $11.11/kW-mo.

April................................... $10.10/kW-mo.

May-June................................ $8.30/kW-mo.

July.................................... $13.39/kW-mo.

August.................................. $19.93/kW-mo.

------------------------------------------------------------------------

2. Adjustments, Charges, and Special Rate Provisions

Adjustments, Charges, and Special Rate Provisions are described in

the GRSPs. Relevant sections are identified below.

2.1 Rate Adjustments

------------------------------------------------------------------------

Rate adjustment Section

------------------------------------------------------------------------

Energy Return Surcharge..................... II.H.

Reactive Power Charge....................... II.O.

Unauthorized Increase Charge................ II.R.

------------------------------------------------------------------------

2.2 Special Rate Provisions

------------------------------------------------------------------------

Special rate provisions Section

------------------------------------------------------------------------

Cost Contributions.......................... II.D.

------------------------------------------------------------------------

B. Supplemental Control Area Services

1. Rates and Billing Factors

The charge for Supplemental Control Area Services shall be the

applicable rate(s) times the applicable billing factor(s), pursuant to

the agreement between BPA and the Purchaser.

The rate(s) and billing factor(s) for Supplemental Control Area

Services shall be as established by BPA or as mutually agreed by BPA

and the Purchaser.

2. Adjustments, Charges, and Special Rate Provisions

Adjustments, Charges, and Special Rate Provisions are described in

the GRSPs. Relevant sections are identified below.

2.1 Rate Adjustments

------------------------------------------------------------------------

Rate adjustment Section

------------------------------------------------------------------------

Energy Return Surcharge..................... II.H.

Reactive Power Charge....................... II.O.

Unauthorized Increase Charge................ II.R.

------------------------------------------------------------------------

2.2 Special Rate Provisions

------------------------------------------------------------------------

Special rate provisions Section

------------------------------------------------------------------------

Cost Contributions.......................... II.D.

------------------------------------------------------------------------

C. Shaping Services

1. Rates and Billing Factors

The charge for Shaping Services shall be the applicable rate(s)

times the applicable billing factor(s), pursuant to the agreement

between BPA and the Purchaser.

The rate(s) and billing factor(s) for use of Shaping Services shall

be as established by BPA or as mutually agreed by BPA and the

Purchaser.

2. Adjustments, Charges, and Special Rate Provisions

Adjustments, Charges, and Special Rate Provisions are described in

the GRSPs. Relevant sections are identified below.

2.1 Rate Adjustments

------------------------------------------------------------------------

Rate adjustment Section

------------------------------------------------------------------------

Energy Return Surcharge..................... II.H.

Reactive Power Charge....................... II.O.

[[Page 44366]]

Unauthorized Increase Charge................ II.R.

------------------------------------------------------------------------

2.2 Special Rate Provisions

------------------------------------------------------------------------

Special rate provisions Section

------------------------------------------------------------------------

Cost Contributions.......................... II.D.

------------------------------------------------------------------------

D. Reservation and Rights to Change Services

1. Rates and Billing Factors

The charge for Reservation and Rights to Change Services shall be

the applicable rate(s) times the applicable billing factor(s), pursuant

to the agreement between BPA and the Purchaser.

The rate(s) and billing factor(s) for Reservation and Rights to

Change Services shall be as established by BPA or mutually agreed by

BPA and the Purchaser.

2. Adjustments, Charges, and Special Rate Provisions

There are no additional adjustments, charges, or special rate

provisions for the Reservation and Rights to Change Services.

Issued in Portland, Oregon, on July 30, 1999.

Jack Robertson,

Deputy Administrator.

[FR Doc. 99-20804 Filed 8-12-99; 8:45 am]

BILLING CODE 6450-01-P