2025 MARKETING PLAN INFORMATION FORUM

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RESPONSES TO PUBLIC INFORMATION FORUM​ QUESTIONS,

JUNE 1​, 2016

​QUESTION:  Will the Creditworthiness Procedures have specific versions, like the General Power Contract Provisions, whereby they cannot change during the term of a contract?
​Response 1:  The Creditworthiness Procedures will be ​dated and attached to the Contract. The specific version will be applicable for the term of the Contract unless changed through a mutually agreeable amendment to the Contract.

QUESTION: Do the current General Power Contract Provisions have creditworthiness provisions
Response 2: No, the current General Power Contract Provisions do not have creditworthiness provisions.​
QUESTION​: What authority does WAPA have to extend the CVP contracts for 30 years instead of the 20 years stated in the PMI part of EPAMP?
Response: The Central Valley Project and Washoe Projects are not “covered projects” under the Power Marketing Initiative. The 20 year contract extensions contained in the PMI applied specifically to Pick-Sloan Missouri Basin Program and the Loveland Area Project contracts expiring on Dec. 31, 2000, and Sept. 30, 2004, respectively. SN will determine the length (term of years) of the CVP and Washoe contracts under this Proposed 2025 Marketing Plan process. Under Section 9(c) of the Reclamation Project Act of 1939, the maximum length (term of years) cannot exceed 40 years.

While the CVP and Washoe Projects are not “covered projects” under the PMI, as part of the Proposed 2025 Marketing Plan, SNR attempts to incorporate the spirit and intent of the PMI. Consistent with the spirit and intent of the PMI, as described in the Proposed 2025 Marketing Plan, SNR is proposing to: (1) extend existing resource commitments (at 98 percent) for 30 years; (2) create resource pools (2 percent in 2025 and 1 percent in 2040); and (3) execute 30 year contracts.

QUESTION: ​I was just in the process of reading through the SNR 2025 marketing plan and I came across a question regarding one of the points under Transmission Service.  It describes legislation authorizing the marketing of capacity on the PACI to benefit the CVP.  Would you be able to elaborate on this point?
Response: The Pacific Northwest Preference Act authorized construction of the Pacific Northwest Southwest AC Intertie.  Section 6 of the Act states transmission not needed to serve federal energy shall be made available to others at equitable rates, as determined by the Secretary. In evaluating bids for non-federal participation in the construction of the Pacific Northwest Southwest AC Intertie, the federal government selected the proposals which provided the most benefit to the federal government, including those bids which aided and benefited the federal Central Valley Project.
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QUESTION​: Will WASN marketing be looking to sell any portion of their share on the PACI, COTP or CVP?
Response: As part of the marketing plan, WAPA proposes to continue to make available (market) unused capacity on the PACI, COTP and CVP.  WAPA will post such excess transmission capacity on its OASIS consistent with the effective marketing plan and Open Access Transmission Tariff.