Spreadsheet: mary_hain__25864__Data_Response_BPA_SP_009
Sheet: Attachment 3

SUB's Calculation of Augmentation Costs in Year 1 ($210/MWh 1st year market, 2000aMW [NAME], no load reduction scenario) see Toolkit file "TK_145_S2000_210Mkt_LR0_021001.xls"
Note: All cost values listed below are in $ millions with the exception of prices which are in $/MWh
From Data Response DS-BPA:345
As of January 1, 2001, actual system augmentation purchases for the rate period amounted to 1,048 aMW/year at a cost of $280.5 million/year, for and average of $30.55.
Breakdown of Augmenation Purchases as of 1/1/2001
 | Purchase | Price | Total Cost
Purchases as of 8/1/00 |  | 28.1
Additional Purchases as of 1/1/01* |  | 38.20866141732281
Total
Weighted Average Price
* Price for additional market pruchases was determined using "goalseek" to arrive at a weighted avg price of $30.55/MWh
BPA Values in Toolkit file "TK_145_S2000_210Mkt_LR0_021001.xls"
 | LB CRAC | Rem Aug | Net Augm
Year | Price | Q (aMW) | Cost
1 | 207.5263042824682 | 2549.657530864197 | 4179.536397757534
2 | 112.1167129644154 | 2287.346506233126 | 1838.963773788078
3 | 44.31727154985469 | 2159.868751714678 | 461.402277226965
4 | 47.25333207419796 | 2001.018560385889 | 485.3469814684757
5 | 47.63730412210631 | 2149.758003445949 | 519.2982896350935
Average
Augmenation Required |  | 2518 | (excludes 794 purchased as of August 2000)
Difference from avg BPA value |  |  | 2229.5 aMW - 2518 aMW
Augmentation breakdown
794 purchased at $28.1/MWh including losses
254 purchased at $38.21/MWh - may or may not include losses - original losses assumption priced at $28.1/MWh
684 (938 - 254 = 684) purchased at Market - original losses assumption priced at $28.1/MWh
Remaining annual augmentation amounts purchased at market
SUB's Calculation of Net Annual Augmentation Costs (Year 1 of TK_145_S2000_210Mkt_LR0_021001.xls)
 | Augmenation | Cost/MWh | Gross Cost | Losses | Losses Cost/Mwh | Losses Cost | Total Cost | Revenues @ $19.26 & $23/MWh | Net Cost
Augmentation Purchased at $38.21 | 254
Remaining 938 aMW
Additional Aug Required
Totals
 |  |  |  |  |  | BPA's Value
 |  |  |  |  |  | Difference
Notes:
254 aMW already assumed to be purchased at $28.1 in May proposal - Net Cost = (38.21 - 28.1) = 10.11
684 aMW already assumed to be purchased at $28.1 in May proposal - Net Cost = (207.5 - 28.1) = 179.43
The unit cost for losses for the 254 & 684 aMW amounts are ($207.5 - $28.1/MWh=) $179.4/MWh to account for the assumption that these purchases (938 aMW) would be made at $28.1/MWh in the May Proposal.
Losses = 2.8%
Revenues for the (254 + 684=) 938 aMW were already accounted for in the May proposal
Revenues for the additional augmentation above 938 were not accounted for in the May proposal to determine BPA's net costs of augmentation.
46 aMW of the additional augmentation is assumed to have revenues of $23/MWh, the balance has revenues of $19.26/MWh
 | BPA Values | SUB's Calcs
 | Net Augm | Net Augm
Year | Cost | Cost | Difference
1 | 4179.536397757534
2 | 1838.963773788078
3 | 461.402277226965
4 | 485.3469814684757
5 | 519.2982896350935
Average
 |  | % Difference in average costs
SUB's Calculation of Net Annual Augmentation Costs (Year 2 of TK_145_S2000_210Mkt_LR0_021001.xls)
 | Augmenation | Cost/MWh | Gross Cost | Losses | Losses Cost/Mwh | Losses Cost | Total Cost | Revenues @ $19.26 & $23/MWh | Net Cost
Augmentation Purchased at $38.21 | 254
Remaining 938 aMW
Additional Aug Required
Totals
 |  |  |  |  |  | BPA's Value
 |  |  |  |  |  | Difference
SUB's Calculation of Net Annual Augmentation Costs (Year 3 of TK_145_S2000_210Mkt_LR0_021001.xls)
 | Augmenation | Cost/MWh | Gross Cost | Losses | Losses Cost/Mwh | Losses Cost | Total Cost | Revenues @ $19.26 & $23/MWh | Net Cost
Augmentation Purchased at $38.21 | 254
Remaining 938 aMW
Additional Aug Required
Totals
 |  |  |  |  |  | BPA's Value
 |  |  |  |  |  | Difference
SUB's Calculation of Net Annual Augmentation Costs (Year 4 of TK_145_S2000_210Mkt_LR0_021001.xls)
 | Augmenation | Cost/MWh | Gross Cost | Losses | Losses Cost/Mwh | Losses Cost | Total Cost | Revenues @ $19.26 & $23/MWh | Net Cost
Augmentation Purchased at $38.21 | 254
Remaining 938 aMW
Additional Aug Required
Totals
 |  |  |  |  |  | BPA's Value
 |  |  |  |  |  | Difference
SUB's Calculation of Net Annual Augmentation Costs (Year 5 of TK_145_S2000_210Mkt_LR0_021001.xls)
 | Augmenation | Cost/MWh | Gross Cost | Losses | Losses Cost/Mwh | Losses Cost | Total Cost | Revenues @ $19.26 & $23/MWh | Net Cost
Augmentation Purchased at $38.21 | 254
Remaining 938 aMW
Additional Aug Required
Totals
 |  |  |  |  |  | BPA's Value
 |  |  |  |  |  | Difference