Alt #1: Alt #2: Alt #3: BPA & NWE good faith efforts to BPA & NWE good faith efforts to negotiate a solution negotiate a solution, followed by binding dispute resolution process (FERC? arbitration?) Alternative #1: Description: BPA & NWE good faith efforts to negotiate a solution Pros Process can be easily initiated Cons May not lead to a solution Alternative #2: Description: BPA & NWE good faith efforts to negotiate a solution for 180 days, followed by binding dispute resolution process (FERC? arbitration?) Pros Leads to a definitive resolution Cons BPA and/or NWE may be unwilling to commit to binding dispute resolution RECOMMENDATION: BPA and NWE should seek a negotiated solution. If those negotiations are not successful after a reasonable period of BPA and NWE should submit this dispute to a mutually agreeable binding dispute resolution process. What is the impact of pancaked rates (including losses and scheduling & dispatch charges) on the total transmission cost to reach Pacific Northwest markets? * Total cost based on 45% capacity factor and losses valued at $30/MWh ** Does not include 5% MT Intertie losses for third party use
Alt #1: Alt #2: Alt #3: BPA & NWE good faith efforts to negotiate a solution BPA & NWE good faith efforts to negotiate a solution, followed by binding dispute resolution process (FERC? arbitration?) Alternative #1: Description: BPA & NWE good faith efforts to negotiate a solution Pros Process can be easily initiated Cons May not lead to a solution Alternative #2: Description: BPA & NWE good faith efforts to negotiate a solution for 180 days, followed by binding dispute resolution process (FERC? arbitration?) Pros Leads to a definitive resolution Cons BPA and/or NWE may be unwilling to commit to binding dispute resolution RECOMMENDATION: BPA and NWE should seek a negotiated solution. If those negotiations are not successful after a reasonable period of BPA and NWE should submit this dispute to a mutually agreeable binding dispute resolution process. What is the impact of pancaked rates (including losses and scheduling & dispatch charges) on the total transmission cost to reach Pacific Northwest markets? * Total cost based on 45% capacity factor and losses valued at $30/MWh ** Does not include 5% MT Intertie losses for third party use