# Presentation: 678786

## Boulder Canyon Project

- Public Information Forum
- April 2, 2008

## FY 2008 Rate Process

- My presentation today will be for the Proposed FY 2009 Base Charge and Rates
- ► Overview of Methodology
- ► FY 2008 Rate Process and Timelines
- ► Factors Impacting FY 2009 Base Charge &
-     Rates
- ► Next Steps/Questions/Comments

## Overview of Methodology

- Current rate formula methodology established in February 1995 under the BCPIA and extended in 2001 and again in 2006.
- The methodology set forth in the BCPIA requires the BCP Base Charge & Rates be calculated annually to ensure adequate recovery of annual project expenses and capital requirements.
- First FY and each fifth year thereafter the Base Charge and Rates will be effective upon approval by Deputy Secretary of Energy and subject to final approval by FERC.  For all other FY’s only the Deputy Secretary approves it.

## Overview of Methodology(Base Charge & Rates Formula)

| Total Expenses minus PY C/O minus Water Sales Revenues minus Other Non-power Revenues  =  Base Charge |  |
| --- | --- |
| Base Charge * .5 divided by energy sales = Forecasted Energy Rate |  |
| Base Charge * .5 divided by capacity sales  =  Forecasted Capacity Rate |  |

## FY2008 Rate Process/Timelines

- Current Base Charge and Rates expire September 30, 2008.
- Federal Register Notice announcing the public process was published in February 1, 2008.
- Public Information Forum scheduled for
-    April 2, 2008 (Today)

## FY 2008 Rate Process/Timelines

- Public Comment Forum scheduled for April 23, 2008
- Consultation and Comment Period ends May 1, 2008 (90 days from publication of initial Federal Register Notice, Feb 1, 2008).

## Factors Impacting FY 2009

- Actual FY 2006 Year end carryover into    FY2007
- Actual FY 2007 Year end carryover into FY 2008
- Current projections for FY2008
- FY 2009 projections

## Factors Impacting FY 2009

|  | FY 2007 Approved Original Estimates | FY 2007 Actual |
| --- | --- | --- |
| Total Expenses |         $81,321,044 |           $78,057,226 |
| Less PY C/O (FY2006-YR End) |         $  1,902,909 |           $  4,732,787 |
| Less Water Sales Revenues |         $     530,000 |           $     682,133 |
| Less Non-Power Revenues |         $11,379,000 |           $13,595,997 |
| = Base Charge |         $67,509,136 |           $59,046,309 |

## Factors Impacting FY 2009

|  | FY 2007 Approved Original Estimates | FY 2007 Actual |
| --- | --- | --- |
| Base Charge | $67,509,136 |   $59,046,309 |
| Plus Change in Accounts Receivable |          |     
     $     134,130 |
| Plus Change in Undelivered Orders |  |      $  1,371,653 |
| Adjusted Base Charge | $67,509,136 |   $60,552,092 |
| FY 2007 Year End Carryover |  |      $  6,957,044 |

## Factors Impacting FY 2009

|  | FY 2008 Approved Original Estimates | FY 2008 Current 
Estimates |
| --- | --- | --- |
| Total Expenses | $ 84,884,949 |  $  84,467,316 |
| Less PY C/O |     $   5,061,667 |  $    6,957,044 |
| Less Water Sales Revenues |     $      530,000 |  $       530,000    |
| Less Non-power Revenues |     $ 12,318,000 |  $  12,613,000 |
| = Base Charge |     $ 66,975,283 |  $  64,367,272 |

## Factors Impacting FY 2009

|  | FY 2008 Approved Original
 Estimates | FY 2009 Proposed
Estimates |
| --- | --- | --- |
| Total Expenses | $   84,884,949 | $ 87,078,191 |
| Less PY C/O |     $     5,061,667 |  $   2,608,010 |
| Less Water Sales Revenues |     $       530,000 |  $      530,000    |
| Less Non-power Revenues |     $  12,318,000 |  $ 13,818,000 |
| = Base Charge |     $  66,975,283 |  $ 70,122,181 |

## Comparison of Base Charge

|  | 
Approved
FY 2008  |      Proposed FY 2009 | 
Changes |
| --- | --- | --- | --- |
| Base Charge |  $66,975,283      | $70,122,181 |                                                     $ 3,146,898                                                         4.70%     |
| Composite Rate Mills/kWh | 17.64 | 18.53 | 
.89                                                                                               5.05% |
| Energy 
Rate Mills/kWh | 8.82 | 9.26 | 
0.45
5.05% |
| Capacity 
Rate $/KW-Mo | $1.63 | $1.75 | 
$0.12
7.14% |

## Next Steps for BCP Base Charge

- Information regarding the BCP base charge & rates will be posted on Western’s website:  **http://www.wapa.gov/dsw/pwrmkt/BCP/RateAdjust.htm**

## Questions/Comments

- Western Contacts:		Gloria Jordan
- 				            602-605-2649
- 				            **jordan@wapa.gov**
- 					Jack Murray
-                			602-605-2442
-       		 		**jmurray@wapa.gov**
- Reclamation Contact:	Phyllis Wyatt
- 				            702-293-8494
- 				            **pwyatt@lc.usbr.gov**