**Summary of Changes: Regional Dialogue Templates**

**6/17/08**

**Introduction**

The following changes have been made to the Regional Dialogue templates
since BPA released them for public review and comment in early April.
Most of the changes are a direct result of comments and suggestions
provided by customers and other interested parties. Although it is not
practical in this Summary to address comments by individual customers,
it does discuss most changes suggested by associations that represent
groups of customers, including the joint comments submitted by PPC, NRU,
PGP, PNGC, and WPAG.

This Summary only includes changes in the Slice template are also
included in the other templates.

**Contract-wide changes**

-   Reorganized the structure of the Agreement to incorporate provisions
    that were contained in Exhibits A and C into the body of the
    Agreement (sections 3-10). More specifically we:

    -   Moved all \"contract obligations\" pertaining to resources from
        Exhibit A to section 3 of the body of the Agreement. Exhibit A
        now consists mostly of resource tables and a provision regarding
        Net Requirements.

    -   Created a new section in the body of the Agreement: section 7,
        High Water Marks and Power Priced at Tier 1 Rates. This new
        section is made up of CHWM and RHWM language that was in section
        8 of the body of the Agreement (Applicable Rates).

    -   Created a new section in the body of the Agreement: section 9,
        Elections to Purchase Power Priced at Tier 2 Rates. This section
        contains Tier 2 Rates language that was in section 3 of
        Exhibit C. This new section obligates customers to make
        elections on how their above-RHWM load will be served with
        non-federal resource amounts or federal power sold at a Tier 2
        rate from BPA, by each Notice Deadline for at least the upcoming
        Purchase Period.

-   Revised the section numbering system to a "1.1.2.3" system so the
    reader can more easily discern where a section is in the Agreement.
    For **lists** of issues (where multiple levels of numbering can
    create confusion or is not helpful) we have used a (1) (A) (i)
    method of numbering. This [only]{.underline} occurs when listing
    resources in Exhibit A, listing PODs and Meters in Exhibit E, and
    when listing brief issues (typically preceded by a colon such as
    shown in section 3.2) where it is obvious what section the reader is
    in.

-   Created two new sections 4 and 5 in all templates to enable section
    3 of the Slice template to be broken out into three sections without
    creating an inconsistent numbering system for the other templates.
    This is also true for Exhibit G, which will only appear in contracts
    for customers served by transfer. For ease of contract
    administration, it is important to maintain comparable numbering for
    all templates during the 20 year life of the contracts.

-   Modified when BPA has the right to change the contract after its
    execution by (1) mutual agreement, and (2) when needed to reflect
    BPA determinations and customer elections or choices that the
    customer has already provided in writing.

-   Clarified dates and timelines for key activities, including:

    -   Above-RHWM load service elections

    -   Net Requirements and resource choices

> Although they will not become part of the contract, we have also
> posted on the Regional Dialogue website several timelines that are
> helpful in understanding the interrelationships of dates shown in the
> templates.

**Introduction**

-   Added drafter's language to recognize and include legal status of
    tribes and federal agencies.

**Recitals**

-   Incorporated some changes suggested by customer representatives.

**Section 2 - Definitions**

-   Defined more words that are used in the templates.

-   Included definitions for words previously only defined in the TRM.

-   Added cross-references to definitions embedded in the contract.

**Section 3 -- Load Following and Block Power Purchase Obligation**

-   Moved most language concerning customer's dedicated resources from
    Exhibit A to section 3. Resource tables remain in Exhibit A.

-   Defined the following new resource terms and put the terms into
    section 2, Definitions: Dedicated Resources, Existing Resources, New
    Resources, Consumer-Owned Resources, On-Site Consumer Load, Super
    Peak Resource Credit, and Super Peak Hours.

-   Moved the following monthly and diurnal reshaping definitions into
    section 2, Definitions: Total Retail Load Monthly Shape, Resource
    Monthly Shape, Flat Annual Shape, PNCA Update Shape, Resource
    Diurnal Shape, Flat Within-Month Shape, HLH Diurnal Shape.

-   Added language concerning Consumer-Owned Resources to section 3.

-   Added language regarding resource peak amounts to section 3.
    Resource peaking amounts will not be calculated or included in the
    contract until the Region has established a peaking standard.

-   At the customers' request, BPA has incorporated the "Take or Pay"
    section into section 3. Section 11 (formerly Take or Pay) has been
    deleted as its own stand-alone section.

**Sections 4 and 5 -- Placeholder sections for Slice**

-   These two sections are new and will remain "intentionally left
    blank" in all but the Slice contracts.

-   Included to keep numbering consistent amongst the templates.

**Section 6 -- Tiered Rate Methodology**

-   BPA added a new section 6.6 that includes definitions for CHWM,
    RHWM, and CDQ, all copied from the TRM. This section also includes
    the RHWM calculation, also copied from the TRM.

-   BPA also included new language in section 6.6 that specifies that
    any references in the contract to the TRM are not subject to dispute
    under the contract and are only subject to resolution under the
    terms of the TRM. This is necessary to accommodate customer
    suggestions to include certain aspects of the TRM into the contract.
    It is likely to be revised further as BPA continues discussions
    regarding this issue.

**Section 7 -- High Water Marks**

-   This new section contains provisions that have been moved from
    section 8 and includes updated language pertaining to Contract High
    Water Marks and Rate Period High Water Marks.

**Section 8 -- Applicable Rates**

-   BPA simplified this section by moving the provisions related to High
    Water Marks to the new section 7 (High Water Marks).

**Section 9 -- Elections to Purchase Power Priced at Tier 2 PF Rates**

-   This is a new section created largely in response to customer
    requests for clarity and a reorganization of the contract structure.
    It contains provisions that have been moved from section 8 and the
    previous version of Exhibit C.

-   This section includes the schedule for Above-RHWM Load service
    decisions (i.e. Notice Deadlines and Purchase Periods). This
    schedule was moved from Exhibit C, Purchase Obligations. This
    section also includes the core Above-RHMW Load service options
    of: 1) all non-federal resources, 2) all BPA Tier 2, or a 3)
    combination non-federal / BPA Tier 2.

-   Also in response to customer comments, this section includes a short
    summary of the Tier 2 rate options.

**Section 10 -- Order of Tier 2 Remarketing and Resource Removal**

-   No substantive changes.

**Section 11 -- One-Time Right to Change Purchase Obligation**

-   No substantive changes. However, BPA is considering alternatives to
    respond to customer concerns about this issue.

**Section 12 -- Billing Credits and Residential Exchange**

> No substantive change to Billing Credits. BPA has added a subsection
> regarding the Residential Exchange that repeats language included in
> the RPSA template. This is intended to ensure customers understand
> that any RPSA contract offered in the future to public customers will
> include a provision that limits their ASC to the costs of resources
> that were acquired on or before September 30, 2006.

**Section 13 -- Scheduling**

-   BPA has added a provision for certain, listed Load Following
    customers that have load interconnected to multiple transmission
    systems. Those customers, who also have non-federal resources
    serving Above-RHWM Load, are required to schedule the non-federal
    resource(s) proportionately to the customers PODs, based on ratios
    that will be listed in Exhibit E, Metering.

**Section 14 -- Delivery**

-   No substantive changes.

**Section 15 -- Metering**

-   Metering language for Load Following customers has been revised to
    reflect customer comments.

-   Load Following language also revised to explicitly state that
    customers must have meters on all PODs by Sept. 30, 2010.

-   A "New Meters" subsection was added for Load Following customers
    that addresses the standards for new and replaced meters, applicable
    to both BPA owned and non-BPA owned meters.

-   Metering language for Block and Slice/Block has been revised
    significantly to reflect concerns that metering is not used for
    billing, but rather for these customers' forecasting and planning.

-   'Revisions' language was changed from unilateral to bilateral and
    was moved to the Exhibit.

**Section 16 -- Billing and Payment**

-   BPA clarified the Termination language.

**Section 17 -- Information Exchange**

-   Clarified the Transparency section in response to customer
    comments: (1) added language stating that BPA will publish Net
    Requirements data for Load Following customers, (2) removed language
    concerning publishing diurnal Net Requirements data, and (3) revised
    the timing of the Transparency processes.

-   Clarified the Meter Data information requirement by referring
    specifically to '*events that will affect the meters listed in
    Exhibit E, Metering*.'

-   Revised the 'Hourly Total Retail Load Data' language to put the
    impetus on BPA to notify the customer only if we need data from
    them.

**Section 18 -- Conservation and Renewables**

-   At the customers' request, changed the renewable reporting
    requirement from every June 1, to every September 1, starting in
    2012.

-   Limited the forecast information BPA is requesting on renewable
    resources to those such resources greater than 200 kWh.

> **Section 19 -- Resource Adequacy**

-   No substantive changes.

**Section 20 -- Notices and Contact Information**

-   Language added that allows notices to be provided electronically.

**Section 21 -- Uncontrollable Forces**

-   No substantive changes.

**Section 22 -- Governing Law and Dispute Resolution**

> Minor changes made for clarification.

**Section 23 -- No Warranty**

-   No substantive changes at this time, but BPA is considering customer
    suggestions in an effort to revise it in a mutually acceptable
    manner.

**Section 24 -- Statutory Provisions**

-   Retail Rate Schedules---language clarified at customers' request.

-   Weather normalization language added to NLSL section, as well as
    other clarifying revisions, at customers' request.

-   Use of Regional Resources language clarified.

**Section 25 -- Standard Provisions**

-   Entire Agreement and Order of Precedence and Assignment sections
    clarified at the customers' request.

**Exhibit A -- Net Requirements and Resources**

-   Moved resource language to section 3 of the body to reflect
    customers' suggestions.

-   Added a section to Exhibit A for listing Consumer-Owned Resources.

-   Added a section to Exhibit A for listing Dedicated Resource amounts
    serving an NLSL.

-   Added (to the Load Following Template only) a resource reshaping
    election table and a HLH Diurnal Shape table for Unspecified
    Resource Amounts.

-   Added (to the Load Following Template only) a table for Super Peak
    amounts.

**Exhibit B -- High Water Marks and Contract Demand Quantities**

-   Deleted the Rate Period High Water Mark section because it was
    largely redundant of language in section 7.2 of the body.

-   Section 1.2 -- Changes to CHWM: BPA has updated the language to
    include an adjustment for NLSLs.

-   Section 1.2.5 -- Tribal Exception: Updated language to clarify how
    the 40 MW exception will work with annexations of utilities with a
    CHWM.

-   Section 1.2.5 -- DOE Richland: Added language that the customer may
    satisfy the notice requirement for receiving a CHWM increase by
    providing BPA with annual 10-year load forecasts that indicate when
    "Processed Load" (as defined in this section) is expected to be
    added. Also added language that the customer shall separately meter
    Processed Load in order to receive a CHWM increase for Processed
    Load, and that BPA shall apply Load Shaping Charges, as established
    in the TRM, to Processed Load separately from other customer load.

**Exhibit C -- Purchase Obligations**

-   Deleted section 1 (from prior template draft) and incorporated that
    language into section 8.1.1 of the body, Applicable Rates.

-   Section 2.1: This is a new section (Notice to Purchase Zero Amounts
    at Tier 2 Rates) that includes a table where BPA will indicate
    customer elections [not]{.underline} to purchase at Tier 2 rates.
    This section also states that the customer is obligated to serve all
    of its Above-RHWM Load with non-federal resources for the Purchase
    Period.

-   Section 2.2: Deleted Load-Growth Rate Option 4. Now this is the
    default outcome if a customer does not elect to purchase at the
    Load-Growth Rate under one of the three Load-Growth Rate options.

-   Section 2.2: BPA has added a second opportunity (by the second
    Notice Deadline) for customers to elect to purchase at the
    Load-Growth Rate. This includes a second opportunity to elect into
    the Shared Rate Plan if there is room under the original limit.

-   Section 2.4: As mentioned earlier, BPA has moved the schedule to
    purchase at the Short-Term rate (Notice Deadlines and Purchase
    Periods) to section 9 of the body.

-   Section 2.4.1.1: Added a new table to this section (Short-Term
    Alternative A) that states the amounts of non-federal resources that
    the customer is obligated to dedicate during an applicable Purchase
    Period. If customer elects to purchase power at the Short-Term Rate
    under this Alternative, they will purchase power at the Short-Term
    Rate for any uncommitted Above-RHWM Load that exceeds these
    non-federal resource amounts.

-   Section 2.4.3: In response to customer requests, this is a new
    section added to the Load Following Template to provide customers an
    "early exit" right when purchasing at the Short-Term Rate. This
    section provides customers the right, if they pay liquidated
    damages, to replace their Short-Term Rate purchase amounts with
    Dedicated Resource amounts.

**Exhibit D -- Additional Products and Special Provisions**

-   Added language in all templates for Resource Support Services:
    included the timing for electing Resource Support Services and the
    process for developing RSS contract provisions for the first Notice
    Deadline.

-   Irrigation Rate Mitigation provision revised to reflect customers'
    suggestions.

**Exhibit E -- Metering**

-   Significant changes to exhibit in response to customer suggestions;
    moved away from "table" format to a narrative format.

-   Exhibit more closely resembles Transmission Services' metering
    exhibits with more descriptive text.

-   Customers who operate their own Balancing Authority Area will list
    interchange meters.

-   Subsection 1.4, Non-Federal Resource Scheduling Ratios, has been
    added and will only apply to certain customers listed in the
    Drafter's Note. See section 14, Scheduling, for the contract
    requirements*.*

**Exhibit F -- Scheduling**

-   A Block version of this exhibit has been added to the template.

**Exhibit G -- Principles for Non-Federal Transfer Service**

-   No substantive changes.

**Exhibit H -- Renewable Energy Certificates and Carbon Attributes**

-   BPA has included language providing for the transfer of Tier 2 RECs,
    if applicable, associated with all PF Tier 2 Rate Alternatives.

-   BPA has included revised language regarding BPA's intent to transfer
    the value of any carbon emission credits, or similar carbon
    instruments, to customers in the future.