Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Technology & Economic Development Committee

HJM 4008

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Requesting that the Bonneville Power Administration consider a rate design for the eastern intertie that eliminates or reduces the transmission rate associated with that part of the eastern intertie known as the Montana intertie.

Brief Summary of Bill

Petitions the Bonneville Power Administration to consider a rate design for the Eastern Intertie that eliminates or reduces the transmission rate associated with the Montana Intertie.

Background:

The Bonneville Power Administration (BPA) is a federal nonprofit agency that markets wholesale electrical power from 31 federal hydroelectric projects in the Columbia River Basin, one nonfederal nuclear plant, and several other small nonfederal power plants. The United States Army Corps of Engineers and the Bureau of Reclamation operate the dams. About one-third of the electric power used in the Northwest comes from the BPA.

The BPA also operates and maintains approximately three-fourths of the high-voltage transmission in its service territory, which includes the states of Washington, Oregon, and Idaho, as well as parts of Montana, California, Nevada, Utah, and Wyoming.

"Montana Intertie" refers to the portion of the 500-kilovolt Eastern Intertie transmission line that stretches between Broadview and Garrison, Montana. The BPA and the Colstrip Project's Montana Intertie Users jointly built the Montana Intertie under the Montana Intertie Agreement.

Summary of Bill:

The Legislature represents several points, including that:

the transmission rate charged by the BPA for the Montana Intertie is a barrier to new investment in energy generation resources in Montana; and
the reduction or elimination of transmission costs will promote the development of new energy and capacity resources in an area of Montana that is experiencing losses in these resources.

The Legislature therefore petitions the BPA to consider a rate design for the Eastern Intertie that eliminates or reduces the transmission rate associated with the Montana Intertie.