Revised REP Settlement Agreement
Posted on April 29, 2011 by Bob Jenks
Tags, Utility Regulation
Earlier this month, CUB signed the BPA REP Settlement Agreement, a long-term regional settlement agreement on the allocation of federal hydro benefits. But, like the river system that provides those benefits, this settlement continues to have twists and turns as it moves through the region.
In simple terms, the Residential Exchange Program (REP) is the section of Federal Law which provides for sharing of federal hydro benefits between Consumer-Owned Utilities (COUs) and the residential and small-farm customers of Investor-Owned Utilities (IOUs). The region has been fighting over this program since Congress passed it in 1980.
After about one year of negotiation, representatives of COUs, IOUs, State Governments, and CUB came together around a settlement that would define the sharing of benefits through 2028 and CUB signed that Agreement.
What is the current status of the REP Settlement Agreement?
The original agreement required 91 percent of BPA’s COU load to sign the Agreement by April 15th. That deadline passed with 81.5 percent of the COU load signing on. Looking at the entire load of the region, this means that more than 90% of the entire region supported the agreement. In Oregon, the Agreement was all but unanimous - utilities representing more than 99 percent of Oregon’s electricity customers signed the Agreement! It is rare for 99 percent of Oregon to agree on anything, but they do agree that this settlement is good for the region. Therefore, because such a large percentage of the regional customers agreed, and because this settlement represents the possibility of a regional solution to a vexing problem, a coalition of signing COUs, public utility commissions (PUCs), IOUs, and CUB have agreed to amend the Agreement to create a new signing deadline of June 3 for COUs representing 75 percent of the COU load to sign the “Revised REP Settlement Agreement”. BPA staff supports this change. No other terms of the Agreement have been changed.
So can we celebrate? Not yet……….
Since more than 81 percent of COU load signed the original Agreement, this new threshold should be more than obtainable and will still represent a remarkable achievement.
Last week a large coalition of COUs and IOUs asked BPA to support the revised settlement:
“We cannot recall any other circumstance in which the public and private utilities serving more than 90% of the regional load have come together in a common cause. This is one of the reasons we believe so strongly that we are doing the right thing.”
Here is a link to the joint testimony.
And what has BPA said about all this?
BPA staffers have said:
“…it is our view that the Settlement remains viable, and BPA should continue to consider the Settlement . . . . In our understanding, the revisions have no material effect on the Settlement itself. Rather the revisions speak to the viability of the Settlement and allow the consideration of the Settlement by the Administrator to continue, pending fulfillment of the revised conditions precedent. . . . It is still our recommendation to the Administrator that he sign the Settlement.”
Obviously the BPA administrator still has to rule. See the testimony here.
So why is CUB still involved?
CUB is still involved because it is in the interest of Oregon’s residential customers, regardless of the IOU or COU source of their electricity, to have known benefits available to them every year and for there to be less litigation on this issue. In addition, this region faces significant challenges to our hydro electric system, such as the effect of global warming on river flows and the integration of hydro energy and wind energy. Resolving the allocation issue will allow stakeholders to focus on these challenges.
Has CUB signed the Revised REP Settlement Agreement yet?
Yes. Bob Jenks, on behalf of CUB, signed the “Revised REP Settlement Agreement” today! We strongly encourage all the original signers to do likewise and hope that some who did not sign the original Agreement will see their way to signing the “Revised REP Settlement Agreement”. It’s not too late to join us!
Stay tuned for future updates………
The BPA Administrator will issue his final record of decision in July. Please keep your collective fingers crossed!
To keep up with CUB, like us on Facebook and follow us on Twitter!
03/23/17 | 0 Comments | Revised REP Settlement Agreement