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BPA, Utilities Sign Historic Contracts by Staff BPA Journal, December 2008

As of Dec. 1, all of BPA's 135 consumer-owned (preference) customers had signed Regional dialogue power sales contracts. The contracts, which will run from 2012 to 2028, follow more than six years of discussions called the Regional Dialogue - with BPA customes and other stakeholders.

"These agreements assure the benefits of low-cost power supply for the next 20 years - thus preserving the value of the federal system for another generation of Northwest citizens," said Paul Norman, senior vice president of Power Services.

He also noted that the contracts promote energy efficiency and renewable energy. "Through a tiered rate system, the contracts provide powerful price incentives for energy conservation and for development of new generating resources including new renewable resources," Norman said.

When they go into effect in 202, the contracts will implement a tiered rates system. Tier 1 power will be limited to the output of the federal system, with little augmentation. As these utilities have greater power needs, they can either purchase power from BPA at Tier 2 prices, which will be set to cover BPA's costs of augmentation, or they can secure nonfederal resources.

This gives customers greater clarity and certainty about their future power supply and time to make decisions to ensure adequate resources.