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Retained Provisional CHWM Amounts and CDQ Adjustments

Retained Provisional CHWM Amounts and CDQ Adjustments. March 14, 2014. Agenda. Inputs to Retained Provisional CHWM Calculations Calculation for customers with Path 1 Provisional Load amounts Calculation for customers with Path 2 Provisional Load amounts FY 2013 load and weather data

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Retained Provisional CHWM Amounts and CDQ Adjustments

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  1. Retained Provisional CHWM Amountsand CDQ Adjustments March 14, 2014

  2. Agenda • Inputs to Retained Provisional CHWM Calculations • Calculation for customers with Path 1 Provisional Load amounts • Calculation for customers with Path 2 Provisional Load amounts • FY 2013 load and weather data • FY 2011-2013 credited conservation amounts • RHWM, TOCA, and System Shaped Load Adjustments • Contract Demand Quantities (CDQs) Adjustments

  3. What are Provisional Loads? • In 2011, BPA calculated CHWMs for all customer utilities with a Regional Dialogue contract. The CHWMs determine customers’ eligibility to purchase power at BPA’s low-cost Tier 1 rates. • Generally, the CHWMs are based on 2010 loads (less non-Federal resources) with adjustments for abnormal weather and conservation achievements from FY 2007-2010. The resulting load amounts were also adjusted upward for the forecast Tier 1 system capability. • The methodology for calculating the CHWMs is described in BPA’s Tiered Rate Methodology (TRM). • For 41 customers, the CHWM also includes a Provisional Load amount. These amounts become a permanent part of the customer’s CHWM if the load returned by the end of FY 2013. • Draft calculations of the Retained Provisional Load amounts were posted on the BPA website on Friday, March 7, 2014.

  4. Path 1 Retained Provisional Load Determination • Path 1 Provisional Load amounts were for customers with specific consumer load reductions. • To calculate the Path 1 Retained Provisional Load amount, BPA compared the specific load’s highest 12-month consecutive period in FY 2011-2013 to FY 2010. • These loads were not adjusted for weather or conservation.

  5. Path 2 Retained Provisional Load Determination • Path 2 Provisional Load amounts were for customers with general system load reductions. • To calculate retained provisional load, BPA compared the FY 2013 load to FY 2010 load. • These loads were adjusted for weather and conservation achievements.

  6. Path 2: FY 2013 Load and Weather Data • Weather normalization general steps: • Gather and review historical daily loads and average temperature. • Gather necessary monthly and annual irrigation data from customers. • Deliver data for customer review. • Model the load temperature relationship for each customer separately. • Calculate adjusted values.

  7. Path 2: Credited Conservation Amounts • Credited conservation from FY 2011-2013 is included in the calculation of the customer’s “Adjusted FY 2013 Load.” • These amounts were determined in accordance with the TRM, section 4.1.4 and Attachment D. • The Adjusted FY 2013 Load also includes credited conservation amounts from FY 2007-2010, as determined in the CHWM Process.

  8. RHWM, TOCA, and SSL Adjustments • Customers that do not retain all of their Provisional CHWM Amount will have an adjustment to their FY 2014 - FY 2015 RHWM based on the final CHWM. • The change in the RHWM may change the customer’s Tier 1 Cost Allocator (TOCA) and System Shaped Load (SSL). • These changes are effective retroactively to October 1, 2013.

  9. Contract Demand Quantities (CDQs) • CDQs are: • ‘Grandfathered’ kW amounts that reduce PF Demand Billing Determinants; • Monthly amounts, ‘fixed’ for the term of the Regional Dialogue contract; and • In all customers’ Regional Dialogue contracts, but only used in billing for Load Following customers. • CDQs mitigate demand charge increases from prior rates to the TRM. They were targeted to bill Demand on 9 percent of historical Customer System Peak (CSP). • CDQs were developed from historical load factors applied to actual FY2010 loads.

  10. CDQ Adjustments • Provisional CHWM Amounts were not used in the original CDQ calculations, but the CDQs are adjusted for Retained Provisional CHWM amounts (Section 4.1.9 of the TRM). • The Retained Provisional CDQ adjustment is calculated as: • Retained Provisional CHWM amounts can only increase CDQs. • These changes are effective retroactively to October 1, 2011.

  11. Next Steps • BPA is accepting comments on these calculations through March 24, 2014. • Comments can be submitted on BPA’s webpage: www.bpa.gov/comments • After considering any comments, BPA will republish the calculations. • Customers have an opportunity to request dispute resolution with a third party neutral on qualifying issues (see TRM section 13.10). • In accordance with the TRM, within three days of this meeting customers must submit to BPA a written statement of any potential dispute resolution issues. • Any such statements must be received by Wednesday, March 19, 2014 and may be submitted to www.bpa.gov/comments, alkaseweter@bpa.gov, and your Power Account Executive.

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