BPA Rate Case Highlights Increased Wind Integration Costs for Wind Generators
8/10/2009

Summary:

Stoel Rives attorneys Steve Hall and Dina Dubson discussed in Energy Law360 a rate case decision by Bonneville Power Administration ("BPA"). The decision established a "wind integration" rate of approximately $5.70 per megawatt-hour ("MWh") for wind generators. This integration or "wind balancing" service is connected to transmission reliability issues and the need to balance consumption and generation loads. In its initial proposal, BPA had recommended a rate of approximately $12/MWh, a 400% increase from the 2009 rate. Hall and Dubson represented the Northwest Wind Group, a coalition composed of Renewable Northwest Project and five major wind energy developers—BP Alternative, Columbia Energy Partners, enXco, Horizon Wind Energy, and RES America Developments Inc.—in the rate case deliberations.

Hall and Dubson said the case signals increased attention by transmission providers nationwide to the cost of integrating larger quantities of wind into the grid. They cautioned that wind generators should address wind integration issues as part of their project planning.

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"Change in the Wind Direction: BPA's 2010 Rate Case" was published by Energy Law360, August 11, 2009.