[Federal Register Volume 85, Number 120 (Monday, June 22, 2020)]
[Notices]
[Pages 37444-37447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13248]


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DEPARTMENT OF ENERGY

Bonneville Power Administration

[BPA File No.: BP-20E]


Suspension of the Financial Reserves Policy Surcharge for the 
Remainder of the BP-20 Rate Period; Public Hearing and Opportunities 
for Public Review and Comment

AGENCY: Bonneville Power Administration (Bonneville), Department of 
Energy (DOE).

ACTION: Suspension of the Financial Reserves Policy Surcharge for the 
remainder of the BP-20 rate period.

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SUMMARY: Bonneville is holding an expedited rate proceeding pursuant to 
Section 7(i) of the Pacific Northwest Electric Power Planning and 
Conservation Act (Northwest Power Act) to suspend the application of 
the Financial Reserves Policy Surcharge (FRP Surcharge) for the 
remainder of the BP-20 rate period. The Northwest Power Act requires 
that Bonneville's rates be established based on the record of a formal 
hearing. By this notice, Bonneville announces the commencement of an 
expedited rate proceeding, designated as the ``BP-20E'' proceeding, for 
the limited purpose of suspending the FRP Surcharge for the remainder 
of the BP-20 rate period. As explained in Part IV.C, the effective date 
would depend on the timing of approval by the Federal Energy Regulatory 
Commission.

DATES: Prehearing Conference: The BP-20E proceeding begins with a 
prehearing conference at 1:00 p.m. on Thursday, June 25, 2020, which 
will be held telephonically. Interested parties may obtain the call-in 
information by accessing Bonneville's BP-20E rate case web page at 
https://www.bpa.gov/goto/BP20E or by contacting the Hearing Clerk at 
[email protected].
    Intervention and Notice of Objection: Anyone intending to become a 
party to the BP-20E expedited proceeding must file a petition to 
intervene on Bonneville's secure website no later than 4:30 p.m. on 
June 24, 2020. In addition, any person or entity that intends to object 
to Bonneville's proposal must include a notice of objection in its 
petition to intervene. See Part III in SUPPLEMENTARY INFORMATION for 
details on requesting access to the secure website and filing a 
petition to intervene.
    Participant Comments: Written comments by non-party participants 
must be received by June 26, 2020, to be considered in the 
Administrator's

[[Page 37445]]

Record of Decision (ROD). See Part III in SUPPLEMENTARY INFORMATION for 
details on submitting participant comments.

FOR FURTHER INFORMATION CONTACT: Ms. Heidi Helwig, Bonneville 
Communications, by phone at (503) 230-3458, or by email at 
[email protected].
    The Hearing Clerk for this proceeding can be reached via email at 
[email protected].
    Please direct questions regarding Bonneville's secure website to 
the BP-20E Rate Hearing Coordinator via email at [email protected] or, 
if the question is time-sensitive, via telephone at (503) 230-5107.
    Responsible Officials: Mr. Daniel H. Fisher, Power Rates Manager, 
is the official responsible for the development of Bonneville's power 
rates, and Ms. Rebecca E. Fredrickson, Deputy Vice President of 
Transmission Marketing and Sales, is the official responsible for the 
development of Bonneville's transmission rates.

SUPPLEMENTARY INFORMATION:

Table of Contents

Part I. Introduction and Procedural Matters
Part II. Scope of BP-20E Rate Proceeding
Part III. Public Participation in BP-20E
Part IV. Rate Proposal
Part V. Proposed Rate Schedules

Part I--Introduction and Procedural Matters

A. Introduction and Expedited Process

    Bonneville's proposal to suspend the Power and Transmission FRP 
Surcharge for the remainder of the BP-20 rate period is expected to 
result in a reduction of Bonneville's current power rates, providing 
rate relief to millions of Pacific Northwest ratepayers during the 
COVID-19 pandemic. In FY 2021, this proposal would reduce power rates, 
as the FRP Surcharge triggered in FY 2020 and is expected to again 
trigger in FY 2021. The proposal should not impact transmission rates 
as the FRP Surcharge did not trigger in FY 2020 and is not expected to 
trigger in FY 2021. In compliance with the procedures for the 
establishment of Bonneville rates set forth in Section 7(i) of the 
Northwest Power Act, Bonneville is conducting the hearing process for 
the review of this proposal on an expedited basis in an effort to 
provide the opportunity for timely rate relief.
    The Rules of Procedure that govern Bonneville's rate proceedings 
were published in the Federal Register, 83 FR 39993 (Aug. 13, 2018), 
and posted on Bonneville's website at https://www.bpa.gov/Finance/RateCases/RulesProcedure/Pages/default.aspx. Sections 1010.4(b)(4) and 
1010.22 of the Rules of Procedure provide for expedited rate processes 
such as the BP-20E proceeding. An expedited proceeding is necessary in 
this case in order to enable prompt implementation of the proposal, 
which would result in a reduction to power rates and assurance 
transmission rates would not go up. In order to facilitate the 
expedited process, pursuant to Section 1010.1(e) of the Rules of 
Procedure, the Administrator authorizes the Hearing Officer to waive 
any procedural requirements of the rules for the purpose of developing 
the record and completing the proceeding on an expedited basis.

B. Proposed Expedited Procedural Schedule

    The purpose of this proceeding is narrow, with the suspension of 
the FRP Surcharge the only issue within its scope. Bonneville publicly 
announced its proposal to suspend the FRP Surcharge on May 29, 2020, 
and held a public meeting on June 5, 2020, to discuss its proposal and 
the use of an expedited process and schedule. The Hearing Officer is 
directed to use this schedule if no objections to the proposal are 
submitted with any of the petitions to intervene, as required by Part 
III.B of this notice.

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               Initial proposal released                         Federal Register notice publication date
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Deadline for Petitions to Intervene and Notices of       June 24, 2020.
 Objection.
Prehearing Conference..................................  June 25, 2020.
Close of Participant Comments..........................  June 26, 2020.
Final Record of Decision...............................  June 29, 2020.
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    If an objection is raised in a petition to intervene, the Hearing 
Officer is directed to adopt an alternative procedural schedule at the 
Prehearing Conference to establish an expedited process for the rest of 
the proceeding. If an objection is raised, Bonneville will hold a 
telephonic Scheduling Conference with prospective parties on June 25, 
2020, at 9:00 a.m. to attempt to develop an alternative procedural 
schedule to propose to the Hearing Officer at the Prehearing 
Conference. Any procedural schedule adopted by the Hearing Officer must 
provide for issuance of the Administrator's Record of Decision no later 
than 90 days after publication of this Federal Register Notice. The 
Hearing Officer is strongly encouraged to conclude the proceeding in 
less than 90 days and may circumscribe or reduce the timing or 
availability of any procedural activities in the case as he or she 
determines are unnecessary or overly burdensome in consideration of the 
limited scope and purpose of this case. The Administrator does not 
intend to hold oral argument or issue a draft Record of Decision in 
this proceeding, so the Hearing Officer is directed to exclude those 
steps and any briefs on exception from the procedural schedule.

C. Ex Parte Communications

    Section 1010.5 of the Rules of Procedure prohibits ex parte 
communications. Ex parte communications include any oral or written 
communication (1) relevant to the merits of any issue in the 
proceeding; (2) that is not on the record; and (3) with respect to 
which reasonable prior notice has not been given. The ex parte rule 
applies to communications with all Bonneville and DOE employees and 
contractors, the Hearing Officer, and the Hearing Clerk during the 
proceeding. Except as provided, any communications with persons covered 
by the rule regarding the merits of any issue in the proceeding by 
other executive branch agencies, Congress, existing or potential 
Bonneville customers, nonprofit or public interest groups, or any other 
non-DOE parties are prohibited. The rule explicitly excludes and does 
not prohibit communications (1) relating to matters of procedure; (2) 
otherwise authorized by law or the Rules of Procedure; (3) from or to 
the Federal Energy Regulatory Commission (Commission); (4) that all 
litigants agree may be made on an ex parte basis; (5) in the ordinary 
course of business, about information required to be exchanged under 
contracts, or in information responding to a Freedom of Information Act 
request; (6) between the Hearing Officer and Hearing Clerk; (7) in 
meetings for which prior notice has been given; or (8) as otherwise 
specified

[[Page 37446]]

in Section 1010.5(b) of the Rules of Procedure. The prohibition on ex 
parte communications applies from the date of publication of this 
notice and remains in effect until the Administrator's Record of 
Decision is issued.

Part II--Scope of BP-20E Rate Proceeding

    The scope of the BP-20E rate proceeding is limited to consideration 
of the proposal to suspend the FRP Surcharge for the remainder of the 
BP-20 rate period. Bonneville may revise the scope of the proceeding to 
include new issues that arise as a result of circumstances or events 
occurring outside the proceeding that are substantially related to the 
rates under consideration in the proceeding. See Rules of Procedure, 
Section 1010.4(b)(8)(iii), (iv). If Bonneville revises the scope of the 
proceeding to include new issues, Bonneville will provide public notice 
on its website, present testimony or other information regarding such 
issues, and provide a reasonable opportunity to intervene and respond 
to Bonneville's testimony or other information. Id.
    Pursuant to Section 1010.4(b)(8) of the Rules of Procedure, the 
Administrator directs the Hearing Officer to exclude from the record 
all argument, testimony, or other evidence that challenges the 
appropriateness or reasonableness of any other matter, issue, topic, or 
policy that is not directly related to suspension of the FRP Surcharge 
for the remainder of the BP-20 rate period.

Part III--Public Participation in BP-20E

A. Distinguishing Between ``Participants'' and ``Parties''

    Bonneville distinguishes between ``participants in'' and ``parties 
to'' the hearings. Separate from the formal hearing process, Bonneville 
will receive written comments, views, opinions, and information from 
participants who may submit comments without being subject to the 
duties of, or having the privileges of, parties. Participants do not 
have the same procedural rights and are not subject to the same 
procedural requirements as parties. Bonneville customers whose rates 
are subject to this proceeding, or their affiliated customer groups, 
may not submit participant comments. Members or employees of 
organizations that have intervened in the proceeding may submit 
participant comments as private individuals (that is, not speaking for 
their organizations) but may not use the comment procedures to address 
specific issues raised by their intervenor organizations.
    Written comments by participants will be included in the record and 
considered by the Administrator if they are received by June 26, 2020. 
Participants should submit comments through Bonneville's website at 
https://www.bpa.gov/comment. All comments should contain the 
designation ``BP-20E'' in the subject line.

B. Interventions and Notices of Objections

1. Intervention
    Any entity or person intending to become a party to in the BP-20E 
rate proceeding must file a petition to intervene through Bonneville's 
secure website (https://www.bpa.gov/secure/Ratecase/). A first-time 
user of Bonneville's secure website must create a user account to 
submit an intervention. Returning users may request access to the BP-
20E rate proceeding through their existing accounts, and may submit 
interventions once their permissions have been updated. The secure 
website contains a link to the user guide, which provides step-by-step 
instructions for creating user accounts, generating filing numbers, 
submitting filings, and uploading interventions. Please contact the 
Rate Hearing Coordinator via email at [email protected] or, if the 
question is time-sensitive, via telephone at (503) 230-5107 with any 
questions regarding the submission process. A petition to intervene 
must conform to the format and content requirements set forth in 
Sections 1010.6 and 1010.11 of the Rules of Procedure and must be 
uploaded to the BP-20E rate proceeding secure website by June 24, 2020.
    Pursuant to Section 1010.1(e) of the Rules of Procedure, the 
Administrator is modifying the procedures for objections to petitions 
to intervene provided under Section 1010.6(d). For the BP-20E 
proceeding, objections to a petition to intervene must be raised at the 
Prehearing Conference. All petitions and any objections will be ruled 
on by the Hearing Officer at the Prehearing Conference. Late 
interventions are strongly disfavored. Opposition to an untimely 
petition to intervene must be filed within two business days after 
service of the petition.
2. Notice of Objections to BP-20E Proposal
    A petition to intervene must also affirmatively state whether the 
entity intends to object to the proposal in this Federal Register 
Notice or the expedited process and schedule. A petition to intervene 
that does not state a position will be deemed to have made no 
objection.

C. Developing the Record

    The hearing record will include, among other things, the 
transcripts of the hearing, written evidence and argument entered into 
the record by Bonneville and the parties, written comments from 
participants, and other material accepted into the record by the 
Hearing Officer. The Hearing Officer will review the record and certify 
the record to the Administrator.
    The Administrator will make a final determination on the issue in 
this proceeding based on the record and such other materials and 
information as may have been submitted to or developed by the 
Administrator. The Final ROD will be made available to all parties. 
Bonneville will submit the Final ROD and the hearing record to the 
Commission for confirmation and approval after issuance of the Final 
ROD (see Part IV.C of this notice).

Part IV--Rate Proposal

A. Background on the FRP Surcharge

    The FRP Surcharge collects additional revenue through adjustments 
to rates when Bonneville's financial reserves (cash and cash 
equivalents) fall below certain identified financial thresholds. The 
surcharge is a component of the Financial Reserves Policy, which was 
developed in the BP-18 rate proceeding. The Financial Reserves Policy 
is designed to support the long-term financial health of the agency by 
ensuring Bonneville maintains a minimum level of financial reserves for 
liquidity and risk mitigation. The Financial Reserves Policy provides 
for each of Bonneville's business units (Power and Transmission) to 
maintain a minimum balance of financial reserves calculated as the 
equivalent to 60 days of operating cash. For Power, 60 days cash is 
approximately $300 million; for Transmission, 60 days cash is 
approximately $100 million. If a business unit's financial reserves 
falls below the identified threshold, the FRP Surcharge triggers, 
increasing that business unit's rates up to a specified amount for the 
fiscal year. Power and Transmission financial reserves are evaluated 
each fiscal year, with the application of the FRP Surcharge (if any) 
beginning with the December billing cycle.
    The FRP Surcharge for the FY 2020-2021 rate period was established 
in the BP-20 rate proceeding. The BP-20 rates received final Commission 
approval on April 17, 2020. For FY 2020, the FRP Surcharge for the 
Power business unit

[[Page 37447]]

triggered, resulting in a $30 million increase to power rates beginning 
in December 2019. Based on current end-of-year projections, the FRP 
Surcharge is expected to again trigger for the Power business unit in 
FY 2021. The FRP Surcharge for the Transmission business unit did not 
trigger in FY 2020 and is not expected to trigger in FY 2021.

B. Background on National Emergency

    On March 13, 2020, the President declared the outbreak of COVID-19 
in the United States a national emergency. Since then, much of the 
United States has been under stay-at-home orders. The impacts of COVID-
19 on the national economy are only beginning to be understood. With 
near-record unemployment in many regional communities, Bonneville's 
utility customers have had to lay off staff, rely on cash reserves, 
and/or use short-term credit to maintain operations. Throughout the 
pandemic, Bonneville has cooperatively worked with its customers to 
ensure that they are able to continue to provide essential utility 
services to regional homes and businesses. As part of these 
discussions, customers requested Bonneville to consider offering 
immediate rate relief through the suspension of the FRP Surcharge.

C. Rate Proposal: Suspension of the FRP Surcharge

    Bonneville proposes to suspend the FRP Surcharge for the remainder 
of the BP-20 rate period. Specifically, the General Rate Schedule 
Provisions for the Power and Transmission FRP Surcharges currently in 
effect would be replaced by the rate schedules identified at https://www.bpa.gov/goto/BP20E.
    Bonneville intends to seek Commission approval effective on the 
first day of the month following the issuance of the Administrator's 
Final ROD. If the BP-20E proceeding follows the procedural schedule 
included in Part I.B of this notice, Bonneville would seek Commission 
approval effective July 1, 2020. If the Commission were to grant 
approval of this proposal effective on any day other than the first day 
of the month, then the rate relief would be effective beginning the 
first day of the following month.
    Suspension of the Power FRP Surcharge would also require small 
changes to the Load Shaping Charge True-Up Rate and PF Melded 
Equivalent Scalar for Fiscal Year 2020, both of which would be adjusted 
depending upon the effective date provided by the Commission.

Part V--Proposed Rate Schedules

    Bonneville's proposed General Rate Schedule Provisions for the 
Power and Transmission Financial Reserves Policy Surcharges for the 
remainder of the BP-20 rate period are a part of this notice and are 
available for viewing and downloading on Bonneville's website at 
https://www.bpa.gov/goto/BP20E.

Signing Authority

    This document of the Department of Energy was signed on June 15, 
2020, by Elliot E. Mainzer, Administrator and Chief Executive Officer 
of the Bonneville Power Administration, pursuant to delegated authority 
from the Secretary of Energy. That document with the original signature 
and date is maintained by DOE. For administrative purposes only, and in 
compliance with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed in Washington, DC, on June 16, 2020.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2020-13248 Filed 6-19-20; 8:45 am]
BILLING CODE 6450-01-P