FERC Issues Oversupply Ordersby Staff
BPA Journal, January 2013
FERC issued two orders on Dec. 20 that address seasonal power oversupply. In one order, FERC denied BPA's request for rehearing of the Commission's Dec. 7, 2011, order on the agency's Environmental Redispatch policy. In the second order, FERC conditionally accepted BPA's Oversupply Management filing, in which BPA set forth terms to displace generation as a last resort under certain oversupply conditions, and to compensate edispatched generators for their unavoidable costs. FERC indicated that BPA's proposal of a 50/50 cost allocation between generators that submit displacement costs and federal power customers would not provide comparable transmission service. Within 90 days of the order, BPA is to file a revised cost allocation methodology or a new method to ensure comparability in the provision of transmission service. The agency is assessing the orders.
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