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No Decision on DSI Service Yet by Staff BPA Journal, October 2009

BPA is evaluating the implications of an Aug. 28 decision from the U.S. Ninth Circuit Court of Appeals that limits BPA's flexibility to provide benefits to its direct service industry customers. BPA believes the ruling does not support the agency making the remaining payments to Alcoa, Inc., under the 2006 Block Power Sales Agreement, as amended. Therefore, BPA has not made scheduled payments for August and September.

Although the court ruled that an amended contract under which BPA has provided benefits to Alcoa's Ferndale smelter since January 2009 is invalid, the agency will consider how it can move forward with longer-term options for service to its three DSI customers without significantly impacting the rest of the region's ratepayers.