western issues 7 23 01 weekly western issues update sent tim earlier questions please feel free kristin walsh x 39510 executive summary ferc multi party refund negotiations bpa financials smelter agreements bc hydro rate freeze power refunds big event happened last week washington dc regards california rest western energy markets multi party negotiations flopped apparently difference 8 9 billion 703 6 million parties could settled rough breakdown corporate offerings williams duke reliant dynegy mirant 510 million combined powerex bc hydro 125 million 15 power marketers including enron 49 6 million 7 california municipal utilities 6 5 million load serving entities outside ca 12 5 million northwest utilities submitted calculations overcharges however judge curtis wagner virtually ignored northwest claims 611 million overcharges stating little time address issues raised pacific northwest parties data owed amount refunds due contrary judge claim number northwest utilities submit claim amounts settlement conference although problem utility methodology calculating amounts wagner probably frustrated standard methodology calculations appears leaning giving nw utilities fast track status california ferc originally even wanted consider nw claims conference group nw senators got together applied pressure result much time get overcharge data together another rough breakdown claims pacificcorp 6 7 million snohomish pud 229 million tacoma power 71 9 million seattle city light 222 million port seattle 11 1 million bpa 70 million bpa bpa borrowing sen patty murray wa leading fight bpa request 2 b additional borrowing authority pleased senate voted increase access additional funds however sen murray promised fight authorization caveat murray spokesman said committee may concerned bumping spending caps added mandate annual authorization bonneville warned could exhaust borrowing authority end 2003 unless amount boosted current limit 3 75 billion increase got senate energy water development subcommittee caveat added reached full appropriations committee increased borrowing authority would used update transmission infrastructure retrofit columbia river hydropower projects boost efficiency continue conservation programs expect see action coming sen murray office refunds recent media reports hinted possibility northwest utilities including bpa seeking refunds overpriced power california currently fighting information seems supported fears earlier settlements reached northwest utilities california state may challenged bankruptcy proceedings bankruptcy court issue ruling significantly altered agreements bpa pg e potentially bankrupt socal ed possible bpa could press refund request range 70 100 however bpa refund request may option stabilize finances also careful voicing opinion 167 million gross sales made california bpa administration bush administration reportedly current plans replace bpa administrator entire northwest delegation democrats republicans bpa region asked made full time administrator however since many decision makers doe conservative republicans comfortable democrat time doe people unsure handle matter appear state limbo dsi aluminum smelter load reduction agreements bpa hot seat right realizing falling electricity prices making possible smelters load reduction agreements begin shopping around sources believe current market prices sustainable considering fact west see significant supply increase within next year consequently dsi concerned signing long term price contracts given current downward pressure prices still historically high dropping currently two northwest smelters seeking restart plant operations alcoa preliminary talks bc hydro secure additional power restart intalco smelter kaiser free money constraints load reduction agreement also attempting restart plants continuing monitoring situation update story develops bc hydro rate freeze current rate freeze imposed former ndp government ends 30 september 2001 government direct bcuc lift rate freeze schedule rate hearing decide put utility back bcuc purview number years since rate hearing people looking forward begs sorts questions overall energy policy rate hearing delayed new government completed administrative core review decided broader energy policy including goals bc hydro lifting rate freeze partly depends much regulators believe held rate stabilization account money redirected elsewhere past years leaving utility unprepared sort low water conditions surfaced year bc hydro wants freeze lifted new government ideological bias continuing rate freeze given put place ndp flouts free enterprise principles suggests rate freeze way may persist beyond original 30 september deadline reasons outlined long persists depends long takes new government complete core review