+-----------------------------------------+----------------------------+
| **BONNEVILLE POWER ADMINISTRATION**     |                            |
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| **HUMAN RESOURCES**                     |                            |
|                                         |                            |
| **Portland, Oregon**                    |                            |
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| **PERSONNEL LETTER NO. 351-1 (Rev.)**   | **DATE**: January 26, 2006 |
+-----------------------------------------+----------------------------+

SUBJECT: Reduction In Force

I.  PURPOSE

To establish Bonneville Power Administration (BPA) policies and
procedures for reduction in force (RIF) for employees in the competitive
service. The procedures in this Personnel Letter apply to: (a) furloughs
for more than 30 days; (b) separation; (c) demotion; or (d) reassignment
requiring displacement. The required reasons for taking such actions are
when the release of an employee from a competitive level is required due
to lack of funds, insufficient personnel ceiling, or reorganization. RIF
procedures also apply to the exercise of re-employment rights or
restoration rights. RIF procedures will also govern reclassification of
an employee's position due to erosion of duties when such action will
take effect after BPA has announced a RIF in the employee's competitive
area and when the RIF will take effect within 180 days.

This Personnel Letter replaces BPA Manual (BPAM) Chapter 400/351A,
Reduction in Force.

II. Purpose of Revision

To revise the competitive areas listing in Appendix A.

III. REFERENCES

     A.  5 U.S.C, Chapter 35, Subchapter 1, Retention Preference

     B.  5 CFR, Part 330, Recruitment, Selection, and Placement

     C.  5 CFR, Part 351, Reduction in Force

     D.  5 CFR, Part 430, Performance Management, Subpart B

     E.  5 CFR, Part 432, Performance Based Reduction in Grade and
         Removal Actions

     F.  Personnel Letter 536-2, Retained Grade and Pay

     G.  Personnel Letter 330-1, Career Transition Assistance Program

     H.  Personnel Letter 432-1, Taking Action Based on Unacceptable
         Performance

     I.  5 CFR, Part 630, Subpart D, Sick Leave

     J.  5 CFR, Part 550, Pay Administration, Subpart G, Severance Pay

IV. POLICY

    A.  Before formal RIF procedures are initiated, a strong effort will
        be made to place employees who will be adversely affected
        through transfer, reassignment, or other appropriate action.
        Placement efforts, once undertaken, will be consistently applied
        as practicable.

    B.  If a RIF becomes necessary, adversely affected employees shall
        be informed at the earliest possible time and advised of the
        regulations under which RIF actions are taken and of their
        rights and benefits.

    C.  The Administrator and Chief Executive Officer shall assess the
        impact of a RIF on bargaining unit employees and shall negotiate
        or consult with exclusive representatives as appropriate under
        labor relations law and/or negotiated agreements.

V.  DEFINITIONS

    A.  Competitive Area: The geographical and organizational limits
        within which employees compete for retention.

    B.  Competitive Level: A grouping of interchangeable positions based
        upon grade, series, qualifications, duties and working
        conditions. Positions with different types of work schedules
        (e.g., full-time, part-time) are placed in different competitive
        levels.

    C.  Managerial and supervisory positions are placed in separate
        competitive levels from other types of work, and are considered
        separate from each other as well.

    D.  Single Rating Pattern: Annual ratings-of-record under one
        pattern of summary levels as set forth in 5 CFR 430.208\[d\]
        (e.g., all ratings assigned under a 5-level summary rating
        system).

    E.  Multiple Rating Pattern: Annual ratings-of-record under several
        patterns of summary levels as set forth in 5 CFR 430.208\[d\]
        (e.g., ratings assigned under different summary rating systems
        such as 5-level and 2-level systems).

VI. RESPONSIBILITIES

    A.  Administrator and Chief Executive Officer (CEO)

        1.  Determines when a reduction in force will be necessary,
            which functions and organizations will be affected, and
            initiates appropriate action.

        2.  Notifies the Manager, Personnel Services, in writing before
            initiating any RIF of: (1) the RIF plan; (2) delineation of
            or changes to competitive areas; and (3) the need to issue
            specific notices for periods of less than 60 days.

        3.  Determines when a functional transfer is needed to
            facilitate the furtherance of BPA's mission and initiates
            appropriate actions.

    B.  Vice Presidents

        1.  Working with managers and supervisors, effectively manage
            the human resources of the organization to minimize the need
            for RIF as an option. Determine that organizations/positions
            need to be abolished or functions need to be transferred.

        2.  Recommend the necessity for RIF action to the Administrator
            and CEO, with appropriate supporting documentation and
            information, including a time specific RIF implementation
            plan.

    C.  Managers and Supervisors

        1.  Provide input to higher level managers regarding the
            necessity of a RIF and identify the positions affected.

        2.  Provide information to affected employees.

    D.  Manager, Human Resources/Diversity/EEO: Establishes BPA policies
        and standards regarding RIF.

    E.  Manager, Personnel Services

        1.  Reviews plans to conduct a RIF, approves designations of
            competitive areas, and coordinates with management to
            establish and maintain competitive levels.

        2.  Concurs on requests to the Office of Personnel Management
            (OPM) from the Administrator and CEO for approval to issue
            specific notices for periods less than 60 days.

        3.  Concurs on requests for changes to existing, or
            establishment of new, competitive areas for a RIF, which
            occur less than 90 days prior to the effective date of a
            RIF.

        4.  Provides advice and technical operations support to
            organizational units serviced in order that all RIF and
            transfer of function planning and personnel actions are
            carried out consistent with the provisions of this Personnel
            Letter and applicable regulations.

    F.  Labor Relations Officer: Will notify affected bargaining units
        of pending RIF plans and other related actions, including
        projected time frames, prior to affected employees being
        notified.

    G.  Employees: Stay fully informed regarding RIF timelines and
        regulations, provide documentation when requested, and assess
        employment options.

VII. COMPETITIVE AREAS

     A.  A list of the BPA competitive areas must be established and/or
         reviewed and published annually by Personnel Services. This
         list will be made available to all BPA employees through
         applicable BPA policy issuance processes. A full description of
         all competitive areas, the dates they were established, and the
         dates of any changes will be maintained in Personnel Services
         and will be available for review by employees and their
         representatives.

     B.  Requests to the Manager, Personnel Services, for changes in
         approved competitive areas should be submitted at least 120
         days in advance of any proposed reduction in force. If a
         competitive area is to be in effect less than 90 days prior to
         the effective date of a RIF, the request must be submitted to
         OPM by the Administrator and CEO through the Manager, Personnel
         Services.

VIII. COMPETITIVE LEVELS

      A.  Prior to initiating a RIF, Personnel Services shall establish
          competitive levels for each position within the affected
          competitive area(s) in accordance with applicable regulations.

      B.  Employees will be listed within their respective competitive
          levels based on current regulations, which include tenure,
          veteran's preference for RIF, and length of service as
          augmented by performance, as described below:

          1.  Employees receive extra RIF service credit for performance
              based upon the average of their last 3 annual performance
              ratings-of-record received during the 4-year period prior
              to the date the agency issues RIF notices. The 4-year
              period is the earlier of the date RIF notices are issued,
              or the date the agency freezes ratings before issuing RIF
              notices.

          2.  Annual ratings-of-record given prior to October 1, 1997,
              must be credited for retention purposes as follows:

              a.  Level 5 -- Outstanding or equivalent: 20 additional
                  years of service credit.

              b.  Level 4 -- Exceeds Fully Successful or equivalent: 16
                  additional years of service credit.

              c.  Level 3 -- Fully Successful or equivalent: 12
                  additional years of service credit.

          3.  This service credit applies to all ratings-of-records of
              BPA employees, including ratings-of-record transferred
              from other Federal agencies.

          4.  Ratings-of-record given after October 1, 1997, will be
              credited in the following manner:

              a.  When a single summary rating pattern is present in the
                  competitive area where the RIF will occur, employees
                  are entitled to additional retention service credit as
                  described in section VII.B.2, above, as required in 5
                  CFR 351.504(d). (Note: A single summary rating pattern
                  occurs when all ratings-of-record for RIF credit in a
                  competitive area are derived from appraisal systems
                  with identical rating level patterns \[e.g., a
                  Pass/Fail system\].)

              b.  When a multiple summary rating pattern (e.g. ratings
                  from both Pass/Fail and 5-level rating systems) is
                  present in the competitive area where the RIF will
                  occur, it is BPA policy that employees will receive 20
                  years of additional service credit (the maximum
                  allowed under Title 5, CFR) for each annual rating of
                  Fully Successful (or equivalent) or better. Employees
                  who have annual ratings from other performance systems
                  shall be given 20 years of credit for any Fully
                  Successful (or equivalent) or better rating.

          5.  In all cases, an employee is given additional service
              credit based on the mathematical average, rounded in the
              case of a fraction to the next whole number, of the value
              of the employee's last 3 annual ratings. If an employee
              received more than 3 annual ratings during the 4-year
              period, the 3 most recent annual ratings are used. If an
              employee received fewer than 3 annual ratings during the
              4-year period, credit is given for an assumed rating of
              "Successful" to bring the employee's ratings up to 3,
              regardless of the employee's actual length of service.

      C.  Employees shall be selected for release from their competitive
          level in inverse order of retention standing, beginning with
          the employee with the lowest retention standing within the
          competitive level. BPA may make temporary exceptions to the
          order of release for the following reasons:

          1.  BPA may make a temporary exception not to exceed 90 days
              when business needs require an employee to complete a work
              activity without undue interruption.

          2.  BPA may make a temporary exception to satisfy a government
              obligation to an employee.

          3.  BPA may make a temporary exception to retain a lower
              standing employee who is on sick leave on the effective
              date of the RIF for a period not to exceed the date the
              employee's sick leave is exhausted. Use of sick leave for
              this purpose must be in accordance with 5 CFR, Part 630,
              Subpart D.

          4.  BPA may make a temporary exception to retain a lower
              standing employee on accrued annual leave who will attain
              first eligibility for an immediate retirement benefit,
              and/or establish eligibility to carry health benefits
              coverage into retirement during the period represented by
              the amount of the employee's accrued annual leave.

      D.  When employees in the same retention subgroup have identical
          service computation dates and are tied for release from a
          competitive level, the employee with the least amount of
          service with BPA shall be released first.

      E.  Employees released from their competitive levels may be
          eligible for mandatory grade and/or pay retention, as provided
          under applicable laws and regulations.

      F.  The effective date of an employee's retention standing shall
          be determined in accordance with applicable rules and
          regulations.

IX. ASSIGNMENT RIGHTS

    A.  Assignments must be made in accordance with applicable
        regulations.

    B.  In the event that an employee's right of assignment can be
        satisfied only by assignment to a sensitive position, the
        assignment cannot be delayed or denied because the employee does
        not have an appropriate security clearance. However, until such
        time as the appropriate clearance is obtained, the employee may
        be assigned to perform only the non-sensitive duties of the
        position, may be detailed to a non-sensitive position or set of
        duties, may be granted leave (only upon the employee's request),
        or, if appropriate, may be suspended under Executive Order
        10450.

X.  NOTICES

    A.  Each competing employee selected for release from a competitive
        level is entitled to a specific written notice at least 60 full
        days before the effective date of release. Notice periods of
        less than 60 days must be authorized by the OPM, via a written
        request from the Administrator and CEO through the Manager,
        Personnel Services. If notice periods of less than 60 days are
        contemplated, the Labor Relations Officer shall notify the
        affected bargaining unit of such intent, including the
        competitive areas involved and the names of affected employees.
        The notice shall be given at the time the request is sent to
        OPM.

    B.  Employees who are impacted by a continuing or temporary
        exception to order of release from their competitive level are
        entitled to receive a new notice.

    C.  Employees who receive a specific notice of separation must be
        given information regarding the following:

        1.  Eligibility under the Career Transition Assistance Program
            and Re-employment Priority List.

        2.  The release of an employee's resume or other relevant
            employment information for employment referral to State
            dislocated worker unit(s) and potential public or private
            sector employers.

        3.  How to apply for both unemployment insurance through the
            appropriate State program and benefits available under the
            State dislocated worker programs, as designated or created
            under the Job Training Partnership Act.

        4.  An estimate of severance pay, if eligible.

XI. TRANSFER OF FUNCTION

    A.  A transfer of function takes place when a function ceases in one
        competitive area and moves to one or more other competitive
        areas that do not perform the function at the time of transfer.
        The gaining competitive area may be in the same or a different
        agency. Transfers of function must be implemented in accordance
        with applicable regulatory requirements.

    B.  An employee who is identified with a transferring function has
        the right to transfer only if faced with separation or
        downgrading in the competitive area that is losing the function.
        The losing competitive area may use adverse action procedures to
        separate any employee who chooses not to transfer with his/her
        function. If the transfer of function results in a surplus of
        employees in the gaining competitive area, all employees who
        elected to transfer with the function compete under RIF
        regulations for positions in the gaining organization with
        employees who are currently encumbering positions in the gaining
        organization.

XII. FURLOUGH PROCEDURES

     Should a furlough be required at BPA, furlough of employees will be
     in accordance with applicable regulations and this Personnel
     Letter.

XIII. PLACEMENT ASSISTANCE

      Employees have no right of assignment to another competitive area,
      except in a transfer of function. Employees who are determined as
      surplus or displaced are entitled to priority placement under the
      Career Transition Assistance Program. Every effort will be made to
      place employees in an appropriate position prior to separation.

XIV. SEVERANCE PAY

     Employees separated from Federal service may be entitled to
     severance pay, as described in 5 CFR, Part 550, Subpart G.

XV. APPEAL RIGHTS

    A.  Employees who have been furloughed for more than 30 days,
        separated, or demoted by a RIF action may appeal to the Merit
        Systems Protection Board (MSPB) in accordance with MSPB
        procedures, unless otherwise indicated in negotiated agreements.

    B.  An employee, as identified in A, above, who raises an allegation
        of discrimination in conjunction with a RIF, may pursue the
        matter either through the negotiated grievance procedure or by
        appealing the reduction in force action to the MSPB.

XVI. RECORDS

     A.  Records regarding a RIF shall be maintained in accordance with
         applicable rules and regulations. BPA shall preserve, intact,
         all registers and records relating to an employee for a period
         of 1 year from the date the employee is issued a specific
         notice.

Kimberly A Leathley

Chief Human Capital Officer, acting

Attachment

List of Competitive Areas -- Bonneville Power Administration