1. Draft Chapter 12: Bonneville Obligations
Power Committee and Council Meetings
June 9-11, 2009

2. Outline of Chapter What the Act provides Bonneville’s evolving role
The administrator’s requirements
Principles for acquisition
Consistency with the Council’s Power Plan

3. Bonneville Actions to Implement Regional Recommendations
20-year power sales contracts
Tiered Rates Methodology
Revised residential exchange agreements following 9th Circuit rebuff
Review of post-2011 conservation
Note: Legal challenges put these decisions at risk, especially the Residential Exchange Program

4. Bonneville Resource Acquisition
Bonneville’s resource acquisitions must be consistent with the plan
Bonneville may need to acquire resources for Tier 1 supplementation, DSI service, Tier 2 loads put on Bonneville, flexibility for wind balancing
Energy, capacity or flexibility – or some combination
Plan identifies principles and recommendations to guide Bonneville’s acquisitions

5. Resource Acquisition Issues
Magnitude of the various needs not known now
Bonneville Preliminary Needs Assessment identifies only maximum potential need
Will not be known by adoption of Sixth Plan
Dependent on later actions by Bonneville customers
Availability of solutions not well known now
Many solutions to balancing needs depend on actions now under development
Capacity and energy solutions depend on Bonneville choices

6. Resource Acquisition Issues – 2
Interactions between energy, capacity and flexibility attributes in particular resources
Some resources provide two, some all three
Some provide one at the expense of another
Council’s analysis does not break out utility-specific capacity and energy needs
Looks at resources that utilities may exclude
Council’s analysis of flexibility not as rigorous as analysis of other Plan issues

7. Principles for Bonneville Acquisition Actions
Aggressively pursue Plan’s conservation goals
Aggressively pursue use of existing system resources and institutional solutions for balancing needs before turning to new generation
Many now being discussed, described in Chapter 11
Take a broad look at cost-effectiveness and reliability of sources of new capacity and flexibility, if needed to meet obligations
Look at synergies between capacity and flexibility