HomeMy WebLinkAbout1994-53 Request BPA to delayR~-~OLUTION NO. 9~
A RESOLUTION OF ~ CITY OF ASmAND UTH.rrY BOARD
REQUE_STING THE BONNEVILLE POWER ADMINISTRATION TO
DELAY ITS T~':REB RATE PROPOSAL FOR ONE YEAR.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
WHEREAS, the Bonneville Power Administration has been the primary supplier of
electricity in the Pacific Northwest for Publicly-Owned Utilities;
WI-~REAS, these utility customers by federal statute are Bonneville's preferred customers;
WHFREAS, Bonneville is proposing to adopt some of the most important changes to its
operations in the last 50 years, including fiered rates, and unbundled products and services;
WHI=-REAS, Bonneville agreed in the 1993 rate case to establish a Tiered Rates Work Group
and to ask the Work Group for a recommendation on whether to proceed with tiered rates;
WHF~REAS, Bonneville on June 29 unveiled its draft Business Plan, which calls for the
adoption of tiered rates without first asking the Tiered Rates Work Group for a
recommendation, as required by the 1993 rate case order;
WHEREAS, Bonneville has said it intends to proceed with tiered rates in the 1995 rate case
before the Work Group can adequately review Bonneville's rate proposal;
WHEREAS, the draft Business Plan and other Bonneville documents do not offer any
meaningful numbers of analysis showing how tiered rates and unbundling will impact
preference customers;
WHF-REAS, Bonneville's current tiered rates proposal may significantly raise electric power
rates and bills, particularly for fast-growing utilities.
NOW, THEREFORE, the Mayor and City Council of the City of Ashland request that
Bonneville take the following actions:
1. Postpone consideration of tiered rates for one year;
2. Revise the draft Business Plan to reflect the postponement of this issue and to
include a more thorough discussion of other options;
3. Work with preference customers on proposed tiered rate principles and
methedologies;
4. Publish more detailed information on what these proposed changes will likely
mean for preference customers so that they can decide whether to support
tiered rates.
This resolution was read by title only in accordance with Ashland Municipal Code §2.04.090
duly PASSI~.r} and ADOPTED this 4~;~4~ ~iay of ~.a-Td, va~ , 1994.
Nan E. F~r~lln, City Recorder
SIGNED and APPROVED this c~'~t~/day of ~f~a,~ , 1994.
Catherine M. Golden, Mayor
iew as to form:
Paul Nolte, City Attorney
July 28, 1994
Honorable Mayor and City Council
Brian L. Almquist, City Administrat~p~
Request to BPA to delay 'Tiered Rates"
hits new "Business Plan" , BPA has ptoposed a new wholesale rate design which employs "tieredtales". This
concept involves setting one rate for approxiwa~ly90% ofthe power we purchase, and asecond rale for the
remainder. This seeond block would be at~above the new resource cost. BPA has indLm___ted that the total of
these two rates would be approximately at or slightly above the amount we are now paying.
The problem is that BPA has been illusive abounhe proposed rate design a~A has, thusfar, failed to indude its
customers in rew, lxingaconsestsusontieredrdles, as was agreed during the 1993 ra~ case before FERC. To
quote from the 1993 FERC order on this issue:
'BPA advocated reliance on the following principles. First, tiered rates should be investigated in an
thatthep~fthesepamtepr~essw~uldbet~pr~videa~pp~rtunityf~ra~interes~edparties
to engage in a cooperative effort to reach consensus on (a) a tiered rate methodology...and (b)
whether or not tiered rates should be implemented.'
to raise tier 1 rates in order to meet its revenue requirements.
RECOMMENDATION:
There simply is insui~ennimebetwean now and Ocidoer 1, 1994 mhammer out apackage acceptable to all
utilities~BPAhasn~th~c~lthec~mmitmmtitwaA~.inhhe~993ra~ecasetodeve~pits~etedra~epr~p~sa~sin
acoopemfive effort with its custornea's. Therefore, iris my recommer~on that we ask BPA, as staled in the
afiae~hed refolu~on, to dehy its COHgiderdljOll Of fiered mte~ for one year, while wOrldrig with its ClBtOllle~ to
arrive at a consensus.
Similar resolutions are ciro,laling among other etamen. So far, the Canby Utility Board and Mason County
PUD No. 1 have adopted similar resolutions.
(r:Bl~atic/BPARsle.res)
Attachment- Resolution